No. 31557 (Amendment): R307-110-28. Regional Haze.

DAR File No.: 31557
Filed: 06/13/2008, 12:43
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

When the Environmental Protection Agency (EPA) adopted the Regional Haze Rule at 40 CFR 51.309 in 1999, it incorporated the recommendations of the Grand Canyon Visibility Transport Commission (GCVTC). EPA required the Western Regional Air Partnership (WRAP), a regional planning organization that was established to address regional haze, to complete the development of regional milestones and a backstop trading program for stationary sources that emit sulfur dioxide and to submit it as an Annex to the GCVTC recommendations. The WRAP submitted the Annex in September 2000. On June 5, 2003, EPA approved the Annex and incorporated the stationary source provisions into the Regional Haze Rule. In December 2003 the Air Quality Board adopted Section XX of the State Implementation Plan (SIP) to address regional haze. This plan was based on the GCVTC recommendations and the Annex. EPA's approval of the Annex was challenged, and on February 18, 2005, the DC Circuit Court of Appeals vacated EPA's 2003 rules (Center for Energy and Economic Development (CEED) vs. Environmental Protection Agency, February 18, 2005). The Court determined that EPA had required a Best Available Retrofit Technology (BART) demonstration in the Annex that was based on a methodology that had been vacated by the Court in 2002 (American Corn Growers Association vs. Environmental Protection Agency, May 24, 2002). On October 13, 2006, EPA revised the regional haze rule to establish the methodology for states to develop an alternative to BART that was consistent with the Court's decision. This rule change revises the SO2 milestones and backstop trading program to meet the 2006 revisions to the Regional Haze Rule.

Summary of the rule or change:

Utah has been working cooperatively with the States of Arizona, New Mexico, and Wyoming to revise the SO2 milestones and backstop trading program to meet the 2006 revisions to the Regional Haze Rule. The SO2 milestones that are included in Part E of the Regional Haze SIP are based on the provisions in the 2006 Regional Haze Rule. The changes to the SO2 milestones led to the following additional changes in Part E of the Regional Haze SIP that describes the milestones and backstop trading program: 1) the SO2 milestones in the 2003 SIP were designed to automatically adjust as states or tribes opted in to the regional trading program. There are four states that are currently planning to participate in the program, and therefore, the milestones have now been changed to a fixed number rather than a formula. If a state or tribe decides to opt in to the program at a future date, then the milestones would need to be changed through a SIP revision; 2) when the 2003 SIP was adopted there were two copper smelters that had temporarily suspended operations. Provisions were included in the SIP to adjust the milestones if either of the smelters resumed operation. Since that time, both smelters as well as one additional copper smelter have been permanently closed. The provisions to adjust the milestone are no longer needed and have been removed from the SIP. A small set-aside is still included to account for production shifts from the closed smelters to the remaining smelters in the region; 3) the 2003 SIP included a set-aside of 20,000 allowances that would be distributed to tribes if the backstop trading program was ever implemented. This amount had been based on the expectation that nine states might participate in the program. Because only four states are now participating, the amount has been decreased proportionately to 8,500 allowances. In addition to the preceding changes to Part E, revisions to Section D of Utah's Regional Haze SIP where made to address the BART requirements for two sources in Utah: PacifiCorp Hunter Power Plant (Units 1 and 2) and PacifiCorp Huntington Power Plant (Units 1 and 2). PacifiCorp has recently received approval orders to implement pollution control projects at Hunter Power Plant (Units 1 and 2) to address a number of air quality issues including mercury, regional haze, and ozone. When these projects were evaluated, the Utah Division of Air Quality (UDAQ) determined that the pollution control projects satisfied the BART requirements for NOx and particulate matter in the Regional Haze Guidance. The pollution control project has already been completed for Huntington Unit 2, and will be completed for Huntington Unit 1 by 2010. These projects will collectively reduce NOx emissions by 6,200 tons/yr and PM10 emissions by 925 tons per year. In addition, a number of clarifications and corrections were made to the SIP that where identified by EPA during their review of the 2003 SIP.

State statutory or constitutional authorization for this rule:

Subsection 19-2-104(3)(e)

This rule or change incorporates by reference the following material:

State Implementation Plan Section XX, Regional Haze, 2008

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 and persons other than businesses:

Small Business: No cost or savings are anticipated with this rule change. No new requirements were created with this rule change that impacted small businesses. Other Persons: The only affected entity is PacifiCorp. at Hunter Units 1 and 2 and Huntington Units 1 and 2. UDAQ has estimated the total compliance cost for these 4 units to be $414,000,000 per unit. However this cost includes other upgrades that are not required by this rule. It is impossible to itemize the actual cost for the required upgrades mentioned in this rule change. There are no other affected persons.

Compliance costs for affected persons:

The only affected entity is PacifiCorp. at Hunter Units 1 and 2 and Huntington Units 1 and 2. UDAQ has estimated the average compliance cost for these 4 units to be $103,500,000 per unit. However this cost included other includes other upgrades that are not required by this rule. It is impossible to itemize the actual cost for the required upgrades mentioned in this rule change. There are no other affected persons.

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

Aside from PacifiCorp.'s required upgrades on Hunter Units 1 and 2 and Huntington Units 1 and 2, no other costs are anticipated for business in Utah. Rick W. Sprott, 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
150 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 [e-mail]

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:

07/31/2008

Interested persons may attend a public hearing regarding this rule:

7/17/2008 at 2:00 PM, DEQ Bldg, 168 N 1950 W, Room 201, Salt Lake City, UT

This rule may become effective on:

08/07/2008

Authorized by:

Bryce Bird, Planning Branch Manager

RULE TEXT

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 [May 5, 2004]2008, 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: [May 2, 2007]2008

Notice of Continuation: March 15, 2007

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