Assumptions
These volatile organic compounds (VOC) Reasonably Available Control Technology (RACT) rules are proposed so the Department will meet the Sec. 182(b)(2) requirement of the federal Clean Air Act. Section 182(b)(2) requires the Department to update existing VOC RACT regulations as US EPA issues updated Control Techniques Guidelines (CTG) for the RACT categories. US EPA released updated CTGs for the following seven source categories: flat wood paneling coating; paper, film and foil coating; large appliance coating; metal furniture coating; flexible package printing; offset lithographic printing; and industrial cleaning solvents. These rules will enable the Department to comply with the federal requirements.
Fiscal effect on state government
The rule requirements will not create a significant fiscal effect on state government because the majority of the sources affected are already inspected, permitted and otherwise regulated by the Department. There will not be a significant fiscal impact on the majority of source categories. However, the Department estimates that the industrial cleaning solvents rule will result in an estimated 400 ton/year future reduction in reported VOC emissions. Therefore, the Department may lose up to $15,000 (400 * $35.71/ton VOC) in emission fee revenue annually.
Fiscal effect on private sector
The Department believes that the proposed rules will not create a significant economic impact to private sector businesses. With a couple of minor exceptions, US EPA states in the CTGs that many facilities located in ozone nonattainment areas are already meeting the emission control levels recommended in the CTGs. In addition, the Department believes that the proposed industrial cleaning solvents work practices are already being implemented at many printing and coating facilities in the state.
State government fiscal effect
Decrease existing revenues.
Local government fiscal effect
None.
Fund sources affected
PRO
Affected Chapter 20 appropriations
Section 20.370 (2) (bg) and (bh), Stats.
Agency Contact Person
Larry Bruss
608-264-7543
Notice of Hearing
Natural Resources
Environmental Protection — Air Pollution Control,
Chs. NR 400
NOTICE IS HEREBY GIVEN THAT pursuant to ss. 227.11 (2) (a) and 285.11 (6), Stats., the Department of Natural Resources will hold a public hearing on revisions to Chapter NR 428, Wis. Adm. Code, relating to modification of existing rules for control of nitrogen oxide (NOx) emitted by stationary sources in the ozone nonattainment area in southeastern Wisconsin
Hearing Information
December 5, 2008   Rooms 140-141
Friday     DNR Southeast Region Hdqrs.
at 1:00 p.m.     2300 N. Dr. Martin Luther King Jr.
    Drive
    Milwaukee
Pursuant to the Americans with Disabilities Act, reasonable accommodations, including the provision of informational material in an alternative format, will be provided for qualified individuals with disabilities upon request. Please call Robert Eckdale at (608) 266-2856 with specific information on your request at least 10 days before the date of the scheduled hearing.
The hearing will be held in conjunction with the hearing for Natural Resources Board Order No. AM-19-08, CR 08-102, relating to the application of reasonably available control technology emission limitations to sources of volatile organic compounds in ozone non-attainment counties and Natural Resources Board Order No. AM-24-08, CR 08-104, relating to VOC emission controls for industrial wastewater collection and treatment operations. The order in which the proposals will be considered will be decided at the time of hearing.
Copies of Proposed Rules and Submission of Written Comments
The proposed rule and supporting documents, including the fiscal estimate may be viewed and downloaded and comments electronically submitted at the following Internet site: http://adminrules.wisconsin.gov. (Search this Web site using the Natural Resources Board Order No. AM-19-08. Written comments on the proposed rule may be submitted via U.S. mail to Mr. Tom Karman, Bureau of Air Management, P.O. Box 7921, Madison, WI 53707 or by e-mail to Thomas.Karman@wisconsin.gov. Comments may be submitted until December 10, 2008. Written comments whether submitted electronically or by U.S. mail will have the same weight and effect as oral statements presented at the public hearings. If you do not have Internet access, a personal copy of the proposed rule and supporting documents, including the fiscal estimate may be obtained from Robert Eckdale, Bureau of Air Management, P.O. Box 7921, Madison, WI 53707 or by calling (608) 266-2856.
Analysis Prepared by Department of Natural Resources
Statutes interpreted
Section 285.11 (6), Stats.
Statutory authority
Section 227.11 (2) (a) and 285.11 (6), Stats.
Related statute or rule
The current provisions of ch. NR 428 established nitrogen oxide emission limits for new and existing facilities which are located in ozone nonattainment counties. The primary intent of these provisions is to fulfill Clean Air Act (CAA) requirements for demonstrating rate-of-progress towards attaining the 1-hour ozone standard and establishment of a Reasonably Available Control Technology (RACT) program for major sources of nitrogen oxide emissions (NOx) in counties designated as nonattainment under the 8-hour ozone standard. Modifications are proposed to existing portions of ch. NR 428.
Plain language analysis
The proposed revisions relate to issues for State Implementation Plan approvability and miscellaneous implementation issues. The State Implementation Plan developed under s. 285.11 (6), Stats., is revised.
The proposed revisions address two areas: 1) required modifications to the NOx RACT program to meet minimum criteria for conditional Federal approval of the program into the State Implementation Plan (SIP); and 2) revisions identified by the department and stakeholders during implementation which clarify and facilitate implementation of requirements within ch. NR 428.
Revisions for SIP approval
As stated in s. NR 428.20, NOx RACT requirements are applicable to facilities which have potential NOx emissions equal to or greater than 100 tons per year. These facilities under the Clean Air Act are known as major sources. In proposing federal approval, the US EPA requires that the term "potential emissions", used in identifying major sources, be defined as the amount of NOx which can be theoretically emitted from emissions units at the facility on an uncontrolled basis over the year. These total potential emissions may consider a restriction on operational capacity or hours, if those restrictions are federally enforceable.
To address EPA's concerns, the proposed rules incorporate a definition of "maximum theoretical emissions" in identifying which sources are subject to NOx RACT requirements. This approach is consistent with the use of this term in s. NR 419.02 (11) for identifying the applicability of the state's VOC RACT requirements.
Revisions for Clarifications and Implementation
There are a number of miscellaneous revisions proposed in the rule package consistent with the intent of the existing rules. These revisions do not change the emission limitations or the sources subject to the emission limitations. The revisions are focused to implementation issues and clarification of requirements. These revisions include:
  The existing NOx RACT rule identifies electric utility owned units as those subject to the federal CAIR rule. The proposed rule revision amends these provisions to account for the vacatur of the CAIR rule.
  The existing NOx RACT rule allows sources to apply for an alternative emission limit or compliance schedule. However, the applications were due by May 1, 2008 even though in some cases requirements are not effective until 2013. The rule revision allows additional time for sources to submit an application for an alternative requirement.
  The existing NOx RACT rule prohibits a source with an approved alternative emission limit or compliance schedule from participating in emissions averaging at any time. The rule revision only prohibits participation in the emissions averaging program for purposes of demonstrating compliance with an alternative emission limit of compliance schedule.
  The new source NOx limits in s. NR 428.04 are applicable to units that undergo modification. The proposed revision modifies the existing rule to avoid triggering new source NOx limits when the modification is made solely to comply with existing NOx control requirements.
  Several revisions allow sources subject to monitoring and reporting requirements under different provisions in ch. NR 428 to satisfy all requirements by meeting one set of monitoring and reporting requirements. These revisions also allow certain sources to demonstrate compliance through periodic stack testing instead of more costly continuous emissions monitoring.
  A number of miscellaneous revisions are proposed to clarify monitoring requirements and deadlines.
  The NOx limits in s. NR 428.05, established prior to the RACT program, are intended to apply to sources existing prior to February 1, 2001 with no lapse in applicability unless the source becomes subject to the new source limits in s. NR 428.04 due to a major modification. The applicability statement in s. NR 428.05 (1) is being revised to remove the reference to "modified" sources to clarify this intent.
Comparison with federal regulations
The NOx emission requirements of NR 428 are in place to fulfill federal ozone requirements in non-attainment areas for demonstrating rate-of-progress towards meeting 1 hour ozone attainment and for implementing a Reasonably Available Control Technology program for major sources of NOx emissions (NOx RACT). Since there are no direct federal emission limitations, states must meet these requirements through development of control requirements and adoption of them into the State Implementation Plan. Many states have NOx emission control programs in place or are in the process of evaluating and developing necessary rules to meet federal ozone non-attainment requirements.
EPA does regulate NOx emissions for similar sources and to similar control levels as those contained in ch. NR 428. These EPA regulations include new source performance standards, new source review and prevention of significant deterioration requirements, federal engine standards, the Acid Rain program, the NOx State SIP Call and various source specific consent decrees.
Comparison with similar rules in adjacent states
The need to implement NOx emission control requirements in adjacent states differ based on ozone non-attainment designations and the resulting applicable federal requirements. Illinois is in the process of developing NOx RACT rules. Ohio, Indiana, and Michigan are evaluating their applicable federal requirements based on attainment status. And Iowa and Minnesota currently do not have to respond to federal requirements for reduction in NOx emissions. As in the case of ch. NR 428, all rules developed by these states for ozone related purposes must undergo federal approval for inclusion into their State Implementation Plan.
Summary of factual data and analytical methodologies
Several proposed revisions are needed to address EPA's concern for approving the RACT rules into the State Implementation Plan Other proposed revisions address implementation issues and the need for clarifications by the Department staff and stakeholders.
Small Business Impact
Analysis and supporting documents used to determine the effect on small business
The existing rule requirements are applicable to large industrial or electric generation sources. Based on the limited nature of the proposed changes to the existing rule there is no impact anticipated to small businesses.
Small business regulatory coordinator
The Department's Small Business Regulatory Coordinator may be contacted at SmallBusiness@dnr.state.wi.us or by calling (608) 266-1959.
Environmental Impact
The Department has made a preliminary determination that this action does not involve significant adverse environmental effects and does not need an environmental analysis under ch. NR 150, Wis. Adm. Code. However, based on the comments received, the Department may prepare an environmental analysis before proceeding with the proposal. This environmental review document would summarize the Department's consideration of the impacts of the proposal and reasonable alternatives.
Fiscal Estimate
Assumptions
The proposed revisions to ch. NR 428 address criteria for federal approval of the Reasonably Available Control (RACT) Program. Specifically, EPA requires incorporating into rule the basis for identifying major sources subject to the RACT program as those sources with maximum theoretical emissions equal to or greater than 100 tons per year of NOx. Incorporating this concept is not anticipated to change the emissions units subject to NOx emission limitations as the currently adopted RACT program and applicability of emission limitations therein were originally developed on the basis of maximum theoretical emissions.
In general other revisions proposed to ch. NR 428 affect corrections and address implementation issues which also do not change the affected units and intended emission reductions. One proposed revision, however, does address whether an emissions unit is subject to an existing or new source emission limitation under ch. NR 428. Currently, an emissions unit through installation of control equipment to meet a NOx emission limitation may trigger major modification levels and applicability of a more stringent new source NOx emission limitation. The ch. NR 428 rules established emission limitations by source category with no intent of triggering a more stringent emission limit in meeting the original applicable limit. Therefore, this specific modification is consistent with the original intent and emission reductions and cost evaluated in developing the currently adopted rules.
Estimate
There is no anticipated fiscal impact from these rule revisions. Since the rule revisions proposed in Board Order AM-20-08 do not change the overall NOx emission requirements or the emissions units anticipated to be subject to emission limitations there is no change anticipated due to these rule revisions versus the original fiscal estimates supporting adoption of current ch. NR 428 requirements.
State government fiscal effect
None
Local government fiscal effect
None
Agency Contact Person
Thomas Karman
Phone: (608) 264-8856
Fax: (608) 267-0560
Notice of Hearing
Regulation and Licensing
NOTICE IS HEREBY GIVEN that pursuant to authority vested in the Department of Regulation and Licensing in ss. 227.11 (2) and 460.04 (2), Stats., 2007 Wisconsin Act 104, the Department of Regulation and Licensing will hold a public hearing on an order adopting emergency rules to create s. RL 91.01 (3) (k), relating to training and proficiency in the use of automated external defibrillators for certification as a massage therapist or bodyworker.
Hearing Information
Date:   November 26, 2008
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