HB 516: "An Act relating to air quality control."

00HOUSE BILL NO. 516 01 "An Act relating to air quality control." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 46.14.010(b) is amended to read: 04  (b) Unless the governor has determined that an emergency exists that requires 05 emergency regulations under AS 44.62.250, the department may adopt the following 06 types of regulations only after the procedures established in (a), (c), and (d) of this 07 section and compliance with AS 46.14.015: 08  (1) a regulation that establishes an ambient air quality standard for an 09 air contaminant for which there is no corresponding federal standard; 10  (2) a regulation that establishes an ambient air quality standard or 11 emission standard that is more stringent than a corresponding federal standard; 12  (3) a regulation that establishes an equivalent emission limitation for 13 a hazardous air contaminant for which the federal administrator has not adopted a 14 corresponding maximum achievable control technology standard; or

01  (4) a regulation that requires a facility to obtain an operating permit 02 [REGULATES EMISSIONS FROM A SOURCE OR FACILITY OR ESTABLISHES 03 AN EMISSION STANDARD] under the authority of AS 46.14.120(e) [, 04 46.14.130(a)(3)(B),] or 46.14.130(b)(4)(B), requires a facility to obtain a 05 construction permit under AS 46.14.130(a)(3)(B), or imposes requirements for 06 approval of a construction permit application that are more stringent than 07 required under 42 U.S.C. 7401 - 7671q (Clean Air Act), as amended. 08 * Sec. 2. AS 46.14.030 is amended to read: 09  Sec. 46.14.030. STATE AIR QUALITY PLAN. The department shall act for 10 the state in any negotiations relative to the state air quality control plan developed 11 under 42 U.S.C. 7401 - 7671q (Clean Air Act), as amended. The department may 12 adopt regulations necessary to implement the state plan but may not include in the 13 state plan a regulation that is not required to be in the state plan under 42 U.S.C. 14 7401 - 7671q, as amended. The department may not adopt the state plan as a 15 regulation except to the extent required under 42 U.S.C. 7401 - 7671q, as 16 amended. 17 * Sec. 3. AS 46.14.130 is amended by adding a new subsection to read: 18  (c) Regulations adopted to implement (a) of this section 19  (1) must be consistent with, and no more stringent than, federal 20 regulations adopted under 42 U.S.C. 7401 - 7515 (Subchapter I, Clean Air Act), as 21 amended; 22  (2) must provide an expedited procedure for processing construction 23 permit applications for proposed minor facilities and for minor modifications to 24 existing facilities; and 25  (3) may not include requirements relating to ambient impact, increment 26 consumption, or visibility analyses unless required under 42 U.S.C. 7401 - 7515, as 27 amended. 28 * Sec. 4. AS 46.14.140(a) is amended to read: 29  (a) The department shall adopt regulations to address substantive and 30 procedural elements of the operating [EMISSION CONTROL] permit program 31 established under this chapter that are not addressed in statute, except elements that

01 relate only to the internal management of the department and do not affect the public 02 or govern the way the department deals with the public. The regulations must be 03 [REASONABLE AND ADEQUATE, AND PROVIDE FLEXIBILITY IN THE 04 OPERATION OF A FACILITY] consistent with, and no more stringent than, the 05 requirements of 42 U.S.C. 7661a [42 U.S.C. 7401 - 7671q (CLEAN AIR ACT)], as 06 amended, and [APPLICABLE] federal regulations adopted under 42 U.S.C. 7661a, 07 as amended. The regulations must include 08  (1) a standard permit application form that meets the requirements of 09 federal regulations adopted under 42 U.S.C. 7661a(b) (Clean Air Act, sec. 502(b)); 10  (2) procedures for preparation and submission of a monitoring, 11 reporting, and quality assurance plan and, if required, a compliance schedule describing 12 how a permitted facility will comply with the applicable requirements of this chapter; 13  (3) procedures for 14  (A) specifying when permit applications and renewal requests 15 are to be submitted; 16  (B) specifying the time duration for department review of 17 permit applications; 18  (C) processing and reviewing an application; 19  (D) providing public notice, including opportunity for public 20 comment and hearing; and 21  (E) issuing permits, including procedures for issuing permits for 22 temporary operations or open burn activities; 23  (4) reasonable standard permit conditions, including conditions for 24  (A) emission standards and limitations; 25  (B) monitoring, record keeping, and reporting for facilities 26 subject to AS 46.14.130; 27  (C) inspection and entry; 28  (D) certification of corporate or other business organization 29 reports; 30  (E) annual certification of compliance; 31  (F) excess emission or process deviation reporting; and

01  (G) equipment malfunctions and emergencies; 02  (5) fees and procedures for collecting fees; 03  (6) provisions addressing late payment or nonpayment of fees, which 04 may include assessment of penalties and interest or refusal to issue, amend, modify, 05 or renew an air quality control permit; 06  (7) the duration of permits; 07  (8) procedures for modifying or amending a permit that provide 08 flexibility in the operation of the facility, including procedures to allow changes to a 09 permitted facility without requiring a permit modification, consistent with the purposes 10 of this chapter and with 42 U.S.C. 7401 - 7671q (Clean Air Act); 11  (9) reasonable provisions for renewing, reopening, revoking and 12 reissuing, and terminating a permit consistent with the purposes of this chapter and 42 13 U.S.C. 7401 - 7671q (Clean Air Act); 14  (10) provisions allowing for physical or operational limitations that will 15 reduce a facility's emissions to levels below those that would make the facility subject 16 to part or all of AS 46.14.120 and 46.14.130; 17  (11) provisions authorizing facility operation while a permit application 18 is pending, consistent with 42 U.S.C. 7661b(d) (Clean Air Act, sec. 503(d)); 19  (12) provisions for ensuring that compliance with an operating permit 20 issued under this chapter will be considered to be compliance with 42 U.S.C. 7661a 21 (Clean Air Act, sec. 502) and other provisions of state or federal law specifically 22 provided for by the department consistent with 42 U.S.C. 7401 - 7671q (Clean Air 23 Act) and regulations adopted under state and federal law; and 24  (13) provisions allowing for certification of inspectors who evaluate 25 compliance with the terms and conditions of a permit, order, regulation, or other 26 provision of law authorized under this chapter. 27 * Sec. 5. AS 46.14.140 is amended by adding a new subsection to read: 28  (d) The department shall submit the operating permit program established 29 under this section to the federal administrator for approval under 42 U.S.C. 7661a. 30 The department may not propose the program for incorporation into the state 31 implementation plan except to the extent specifically required under federal law.

01 * Sec. 6. AS 46.14 is amended by adding a new section to read: 02  Sec. 46.14.175. CONDITIONS IN OPERATING PERMITS. (a) A condition 03 in an operating permit must be based upon, and no more stringent than necessary to 04 ensure compliance with, one or more applicable requirements. An operating permit 05 must include a specific reference to the applicable requirement that authorizes each 06 condition in the permit and must identify any difference in form as compared to the 07 requirement upon which the condition is based. 08  (b) In this section, "applicable requirement" 09  (1) means, except as provided in (2) of this subsection, 10  (A) federal requirements determined by the federal administrator 11 under regulations adopted under 42 U.S.C. 7661a; and 12  (B) for each facility, emission standards that were contained in 13 the last air quality control operating permit that was issued to the facility before 14 the effective date of the operating permit program under this chapter; 15  (2) notwithstanding a provision in an air quality control permit, does 16 not include ambient air quality standards, increments, or visibility requirements, except 17 as they would apply to temporary sources. 18 * Sec. 7. AS 46.14.560 is repealed and reenacted to read: 19  Sec. 46.14.560. UNAVOIDABLE EXCESS EMISSIONS. (a) Excess 20 emissions determined by the department to be unavoidable are excused and are not 21 subject to penalty under this chapter or AS 46.03. The department shall adopt 22 regulations that 23  (1) define the circumstances under which excess emission during start- 24 up, shutdown, scheduled maintenance, and upsets will be considered to be unavoidable; and 25  (2) establish procedures for the reporting of unavoidable excess 26 emissions. 27  (b) This section does not limit the department's power to enjoin an emission 28 or to require corrective action. This provision is in addition to any emergency 29 provision contained in the department's operating permit regulations. 30 * Sec. 8. AS 46.14.990(5) is amended to read: 31  (5) "construct" or "construction" means [TO FABRICATE, ERECT, OR

01 INSTALL, OR] to make a physical change or a change in the method of operation, 02 including fabrication, erection, installation, demolition, or modification of a 03 source, that would result in a change in actual emissions; 04 * Sec. 9. AS 46.14.990(16) is amended to read: 05  (16) "modification" or "modify" means to make a physical change or 06 a change in the method of [SERIES OF CHANGES IN] operation for [, OR ANY 07 PHYSICAL CHANGE OR ADDITION TO] a facility or source [,] that increases the 08 amount [ACTUAL EMISSIONS] of an air contaminant emitted by the facility or 09 source or that results in the emission of an air contaminant not previously emitted 10 from the facility or source; "modification" and "modify" shall be construed in a 11 manner that makes the terms consistent with the definition of "modification" in 12 42 U.S.C. 7411, as amended, and federal regulations that implement that section; 13 * Sec. 10. AS 46.14.990 is amended by adding new paragraphs to read: 14  (28) "minor facility" means a facility that is not classified as a major 15 source or major stationary source under 42 U.S.C. 7401 - 7671q (Clean Air Act), as 16 amended; 17  (29) "minor modification" means a modification that is not classified 18 as a major modification under 42 U.S.C. 7401 - 7671q (Clean Air Act), as amended; 19  (30) "shutdown" means the cessation of operations of a source for any 20 purpose; 21  (31) "start-up" means the setting in operation of a source for any 22 purpose. 23 * Sec. 11. REQUIRED ACTIONS. By February 1, 1997, the Department of 24 Environmental Conservation shall 25 (1) submit to the administrator of the United States Environmental Protection 26 Agency a proposal to remove from the state implementation plan prepared under AS 46.14 27 all regulations that are not required by the agency to be elements of the state implementation 28 plan; 29 (2) review the department's regulations that govern the construction permit 30 program under AS 46.14 and adopt amendments that will take effect by February 1, 1997, so 31 that the revised regulations comply with AS 46.14.130, as amended by this Act; by May 1,

01 1997, the department shall submit the revised regulations to the administrator of the United 02 States Environmental Protection Agency as amendments to the state implementation plan.