Rule-Making Notices (Hearing Notices)

Specifically, this proposal will define the greenhouse gases subject to regulation, establish greenhouse gas emission thresholds, that if exceeded, will trigger permitting and emission control requirements, and establish global warming potential factors which are used to calculate individual greenhouse gas emissions on an equivalent and comparable basis.

Summary of, and comparison with, existing or proposed federal regulations

U.S. EPA promulgated rules in 40 CFR parts 51 and 70 as revised on June 3, 2010 (75 FR 31514) to relieve overwhelming permitting burdens that would, in the absence of these rule, fall on permitting authorities and sources. They accomplished this by tailoring the applicability criteria that determine which GHG emission sources become subject to the PSD and Title V programs of the CAA. In particular, EPA established with this rulemaking a phase-in approach for PSD and Title V applicability, and established the first two steps of the phase-in for the largest emitters of GHG.

Under these federal rules, the first step, which will begin on January 2, 2011, PSD or Title V requirements will apply to sources' GHG emissions only if the sources are subject to PSD or Title V anyway due to their non-GHG pollutants. Therefore, EPA will not require source owners or operators to evaluate whether they are subject to PSD or Title V requirements solely on account of their GHG emissions. Specifically, for PSD, Step 1 requires that as of January 2, 2011, the applicable requirements of PSD, most notably, the best available control technology (BACT) requirement, will apply to projects that increase net GHG emissions by at least 75,000 tpy carbon dioxide equivalent emissions, but only if the project also significantly increases emissions of at least one non-GHG pollutant. For the Title V program, only owners or operators of existing sources with, or new sources obtaining, Title V permits for non-GHG pollutants will be required to address GHG during this first step.

The second step of the federal rules, beginning on July 1, 2011, will phase in additional large sources of GHG emissions. New sources as well as existing sources not already subject to Title V that emit, or have the potential to emit, at least 100,000 tpy carbon dioxide equivalent emissions will become subject to the PSD and Title V requirements. In addition, sources that emit or have the potential to emit at least 100,000 tpy carbon dioxide equivalent emissions and that undertake a modification that increases net emissions of GHG by at least 75,000 tpy carbon dioxide equivalent emissions will also be subject to PSD requirements.

An important provision of these federal rules is that PSD and Title V permitting is only triggered when both the appropriate traditional mass-based applicability threshold, i.e., 100 tpy or 250 tpy, and the GHG carbon dioxide equivalent emission threshold are exceeded.

U.S. EPA also makes certain commitments to conduct studies related to potential regulatory burdens which could result from lowering the applicability threshold from what is contained in the current rule. Except for these federal commitments, the rules proposed here are consistent with the federal rules.

The greenhouse gas endangerment finding (74 FR 66496), EPA's memorandum entitled “Interpretation of Regulations that Determine Pollutants Covered by Federal Prevention of Significant Deterioration (PSD) Permit Program" (75 FR 17004) and the motor vehicle (75 FR 25324) and tailoring (75 FR 31514) rules have been challenged by various parties, nationally. In the event that courts or Congress stay or otherwise invalidate the finding, interpretation and both rules related to greenhouse gases the Department will act to invalidate the emergency rule and re-evaluate the need for a permanent rule in light of the court's or Congressional actions.

Comparison with rules in adjacent states

The states of Illinois and Minnesota are US EPA delegated states so they do not need to amend their state rules to implement the provision of the federal tailoring rule. Michigan and Iowa are SIP approved states like Wisconsin, so they will need to implement rules similar to what are being proposed here in order to modify their permit program and implement the provisions of the federal rule.

Summary of factual data and analytical methodologies

The proposed rule is based on the federal rule changes. Information on the federal rule changes can be obtained from federal registers published on October 27, 2009 (74 FR 55292), October 30, 2009 (74 FR 56260), and June 3, 2010 (75 FR 31514).

Analysis and supporting documents used to determine effect on small businesses

The Department did not conduct an independent analysis of the effect on small business, but is relying on the analysis performed by the US EPA. This analysis can be found in US EPA's rule docket for Prevention of Significant Deterioration and Title V Greenhouse Gas Tailoring Rule; Proposed Rule [EPA-HQ-OAR-2009-0517; FRL-8966-7], October 27, 2009 (74 FR 55292).

Effect on Small Business

This proposal will prevent unintended impacts to small businesses resulting from promulgation by U.S. EPA of emission standards for GHG, by limiting the number that may become subject to the Title V and PSD permitting programs. The Small Business Regulatory Coordinator may be contacted at [e-mail], or by calling [phone].

Environmental Analysis

The Department has made a preliminary determination that adoption of the proposed rules would not involve significant adverse environmental effects and would not need an environmental analysis under ch. NR 150, Wis. Adm. Code. However, based on comments received, an environmental analysis may be prepared before proceeding. This analysis would summarize the Department's consideration of the impacts of the proposal and any reasonable alternatives.

Fiscal Estimate

This proposal limits the applicability of Department permitting consistent with the federal permit program, resulting in fewer permit actions. This translates to an expected cost avoidance for both the Department and the private sector over what costs will be imposed if the proposal is not approved. The following information and assumptions were used in estimating the cost avoidance, which are summarized in the table below. (Note that estimates in this analysis are based on EPA proposed rules published in September, 2009. EPA's final rule establishes applicability thresholds much higher than originally proposed, therefore, the cost avoidance numbers go up significantly from what is presented here.)

National average dollar per permit costs and national numbers of permits avoided comes from Tables 3-1 and 3-2 in US EPA's Regulatory Impact Analysis for the Proposed Greenhouse Gas Tailoring Rule, Final Report, September, 2009.

Number of permits avoided in Wisconsin was determined by taking a percentage of the national estimate of permits avoided.

Number of industrial sources subject to PSD - Currently the Department issues 8-10% of the nation's PSD permits annually due the historically large manufacturing base in Wisconsin. While there will be some correlation between the industrial base and sources of greenhouse gas emissions it is not expected to be as high as what the Department currently sees under the existing PSD program. For the purposes of this Fiscal Estimate 5% is being applied to the national estimate of 3,299 permits avoided, resulting in an estimated annual cost avoidance or $13,947,450 for the private sector and $7,647,750 for the Department.

Number of commercial and residential sources subject to PSD - Based on an assumption that Wisconsin's number of sources is proportional to percentage of the national population, 2% is being applied to the national estimate of 37,197 permits avoided, resulting in an estimated annual cost avoidance of $12,563,928 for the private sector and $3,709,584 for the Department.

Number of new industrial sources subject to Title V - Currently the Department issues approximately 3% of the nation's Title V permits. Therefore 3% of the national estimate of 195,895 permits avoided is used in this Fiscal Estimate resulting in an estimated one-time cost avoidance of $272,398,950 for the private sector and $115,706,376 for the Department.

Number of new commercial and residential sources subject to Title V - Based on an assumption that Wisconsin's number of sources is proportional to percentage of the national population, 2% is being applied to the national estimate of 5,956,513 permits avoided, resulting in an estimated one-time cost avoidance of $593,982,180 for the private sector and $235,639,140 for the Department.

US EPA notes that significant uncertainties exist in their estimates due to the lack of historical record and permitting experience upon which to base resource needs for including greenhouse gas sources in the PSD and Title V permitting programs. The Department does not have Wisconsin specific information that allows the estimates to be better refined for this Fiscal Estimate.

Agency Contact Person

Andrew Stewart

Department of Natural Resources

Bureau of Air Management (AM/7)

101 S Webster St,

Madison, WI 53703

Phone:   [phone]

Fax:   [phone]

E-mail:   [e-mail]

Notice of Hearings

Public Instruction

rulemaking_notices CR 10-139 CR 10-139

NOTICE IS HEREBY GIVEN that pursuant to sections 43.09 (2) and 227.11 (2) (a), Stats., and interpreting section 43.24 (3), Stats., the Department of Public Instruction will hold a public hearing as follows to consider proposed permanent rules to revise Chapter PI 6, relating to public library audit requirements. The hearing will be held as follows:

Hearing Information

Date and Time:	Location:
January 13, 2011 Thursday 10:00am-Noon	Reference and Loan Library Meeting Room 2109 S. Stoughton Road Madison, WI 53716

The hearing site is fully accessible to people with disabilities. If you require reasonable accommodation to access any meeting, please call Michael Cross, Director, Public Library Development, at [e-mail], [phone] or leave a message with the Teletypewriter (TTY) at [phone] at least 10 days prior to the hearing date. Reasonable accommodation includes materials prepared in an alternative format, as provided under the Americans with Disabilities Act.

Copies of Proposed Rule and Contact Person

The administrative rule and fiscal note are available on the internet at http://dpi.wi.gov/pb/rulespg.html. A copy of the proposed rule and the fiscal estimate also may be obtained by sending an email request to [e-mail] or by writing to:

Lori Slauson, Administrative Rules and Federal Grants Coordinator

Department of Public Instruction

125 South Webster Street

P.O. Box 7841

Madison, WI 53707

Submittal of Written Comments

Written comments on the proposed rules received by Ms. Slauson at the above mail or email address no later than January 19, 2011, will be given the same consideration as testimony presented at the hearing.

Analysis Prepared by the Department of Public Instruction

Statute(s) interpreted

Section 43.24 (3), Stats.

Statutory authority

Sections 43.09 (2) and 227.11 (2) (a), Stats.

Explanation of statutory authority

Section 43.09 (2), Stats., allows the Division for Libraries, Technology and Community Learning in the Department of Public Instruction to promulgate necessary standards for public library systems. If promulgated, such rules shall be consistent with s. 43.15, Stats., and shall be established in accordance with ch. 227, except that the division shall hold a public hearing prior to adoption of any proposed rule.

Section 227.11 (2) (a), Stats., gives an agency rule-making authority to interpret the provisions of any statute enforced or administered by it, if the agency considers it necessary to effectuate the purpose of the statute.

Related statute(s) or rule(s)

None.

Plain language analysis

Subchapter III of ch. PI 6, Wis. Admin. Code, specifies requirements for public library systems. Current language under s. PI 6.06 (4) (d) dates from 1972 and must be revised to reflect current minimum standard expectations for governmental audits. The proposed rule language states the present minimum standard for governmental audits as they apply to public library systems and is consistent with other department audit requirements for agencies receiving federal and state funds through the department.

The rules require each public library system to contract with a certified public accountant to audit the system's general purpose financial statements for the fiscal year. The audit shall be conducted in accordance with all applicable federal laws and regulations and Wisconsin Statutes and administrative rules including: generally accepted auditing standards; governmental auditing standards issued by the comptroller general of the United States; and the applicable provisions of the United States office of management and budget, circular A-133. The rules also require each public library system to maintain financial statements present in the auditor's report and to submit a corrective action plan when found to be out of compliance.

The proposed rules will apply to public library system audits conducted upon the effective date of this rule.

Summary of, and comparison with, existing or proposed federal regulations

None.

Comparison with rules in adjacent states

Iowa doesn't have any rules relating to library audit requirements.

Illinois requires the board of directors of each library system to:

Maintain all financial records at the system headquarters.

Cause an annual audit of the records of the system for the preceding fiscal year and those maintained by the treasurer to be made by an independent public accountant. The certified public accountant shall be guided by “Government Auditing Standards."

Account for all funds of the library system by expenditure, encumbrance or reserves at June 30 each year.

Adopt an annual budget for the ensuing fiscal year.

Maintain an inventory of all equipment purchased.

Ensure that financial reports are submitted to the state librarian twice a year.

Minnesota requires regional library systems to annually submit an audit of receipts and disbursements. The audit shall be performed by the staff of the state auditor's office, by a certified public accountant, or by a public accountant as defined in Minnesota statutes.

Michigan requires a cooperative library to file with the department a copy of an annual financial audit. If the audit report discloses a deficit or other material deficiency, the cooperative library shall submit a correction action plan for approval by the department.

Summary of factual data and analytical methodologies

See the plain language analysis.

Analysis and supporting documents used to determine effect on small businesses

N/A.

Anticipated costs incurred by private sector

N/A.

Effect on Small Business

The proposed rules will have no significant economic impact on small businesses, as defined in s. 227.114 (1) (a), Stats.

Initial regulatory flexibility analysis

The proposed rules are not anticipated to have a fiscal effect on small businesses as defined under s. 227.114 (1) (a), Stats.

Fiscal Estimate