HOUSE BILL NO. 6122 A bill to amend 1994 PA 451, entitled "Natural resources and environmental protection act," by amending sections 5506 and 5523 (MCL 324.5506 and 324.5523), section 5523 as amended by 1998 PA 245; and to repeal acts and parts of acts. the people of the state of michigan enact: Sec. 5506. (1) After the date established pursuant to under subsections (3) and (4)(n), if an application for an operating permit is required to be submitted, a person shall not operate a source that is required to obtain an operating permit under section 502a 502(a) of title V of the clean air act, chapter 360, 104 Stat. 2641, 42 U.S.C. 7661a, and which is thereby 42 USC 7661a, and that is subject to the requirements of this section except in compliance with an operating permit issued by the department. A permit issued under this section does not convey a property right or an exclusive privilege. (2) If a person who owns or operates a source has submitted a timely and administratively complete application for an operating permit, including an application for renewal of an operating permit, but final action has not been taken on the application, the source's failure to have an operating permit is not a violation of subsection (1) unless the delay in final action is due to the failure of the person owning or operating the source to submit information required or requested to process the application. A source required to have a permit under this section is not in violation of subsection (1) before the date on which the source is required to submit an application pursuant to under subsections (3) and (4)(n). Except as otherwise provided in subsection (5), expiration of an operating permit terminates a person's right to operate a source. This subsection does not waive an applicable requirement to obtain a permit under section 5505. (3) A person who owns or operates a source required to have an operating permit pursuant to under this section shall submit to the department within 12 months after the date on which the source becomes subject to the requirement to obtain a permit under subsection (1), or on an earlier date specified by rule, a compliance plan and an administratively complete application for an operating permit signed by a responsible official, who shall certify the accuracy of the information submitted. The department shall approve or disapprove a timely and administratively complete application, and shall issue or deny the operating permit within 18 months after the date of receipt of the compliance plan and an administratively complete operating application, except that the department shall establish a phased schedule for acting on the timely and administratively complete operating permit applications submitted within the first full year after the operating permit program becomes effective. The schedule shall must assure ensure that at least 1/3 of the applications will be acted on by the department annually over a period not to exceed 3 years after the operating permit program becomes effective. (4) The department shall promulgate rules to establish an operating permit program required under title V to be administered by the department. This permit program shall must include all of the following and, at a minimum, shall must be consistent with the requirements of title V: (a) Provisions defining the categories of sources that are subject to the operating permit requirements of this section. Operating permits under this section are not required for any source category that is not required to obtain an operating permit under section 502(a) of title V of the clean air act, title V of chapter 360, 104 Stat. 2641, 42 U.S.C. 42 USC 7661a. (b) Requirements for operating permit applications, including standard application forms, the minimum information that must be submitted with an administratively complete application, and criteria for determining in a timely fashion the administrative completeness of an application. (c) A requirement that each operating permit application include a compliance plan describing how the source will comply with all applicable requirements of this part, rules promulgated under this part, and the clean air act. (d) Provisions for inspection, entry, monitoring, record keeping, and reporting applicable to each operating permit issued under this section. (e) Requirements and provisions for expeditiously determining when applications are technically complete, for processing applications. (f) Provisions for transmitting copies of each operating permit application and proposed and final permits, permit, including each modification or renewal, to the administrator of the United States environmental protection agency, Environmental Protection Agency, and for notifying all other states whose air quality may be affected and that are contiguous to this state and for providing an opportunity for those states to provide written recommendations on each operating permit application and proposed permit, pursuant to under the requirements of section 505(a) and (d) of title V of the clean air act, title V of chapter 360, 104 Stat. 2643, 42 U.S.C. 42 USC 7661d. (g) Provisions for issuance of operating permits and, in accordance with this part and rules promulgated under this part, for denial, termination, modification, revocation, renewal, and revision of operating permits for cause. (h) Provisions to allow for changes within a permitted source without a revision to the operating permit, if the changes are not modifications under any provision of title I of the clean air act, chapter 360, 77 Stat. 392, 42 U.S.C. 42 USC 7401 to 7431, 7470 to 7479, 7491 to 7492, 7501 to 7509a, and 7511 to 7515, and the changes do not exceed the emissions allowed under the operating permit, if the owner or operator of the source provides the department and the administrator of the United States environmental protection agency Environmental Protection Agency with written notification at least 7 days in advance of the proposed changes. However, the department may provide a different time frame for an emergency. as defined in section 5527. The emissions allowed under the operating permit include any enforceable emission limitation, standard, or other condition, including a work practice standard, determined by the department to be required by an applicable requirement of this part, rules promulgated under this part, or the clean air act, or that establishes an emission limit or an enforceable emissions cap that the source has assumed to avoid an applicable requirement of this part, rules promulgated under this part, or the clean air act, to which the source would otherwise be subject. These provisions shall must include the following: (i) Changes that contravene an express permit condition. Such Those changes shall must not include changes that would violate any applicable requirement of this part, the rules promulgated under this part, or the clean air act, or changes that would contravene any applicable requirement for monitoring, record keeping, reporting, or compliance certification. (ii) Changes that involve emissions trading if trading has been approved by the administrator of the United States environmental protection agency Environmental Protection Agency as a part of the state implementation plan. (i) Provisions to allow changes within a permitted source, pursuant to 40 C.F.R. under 40 CFR 70.4(b)(14), that are not addressed or prohibited by the operating permit, if all of the following criteria are met: (i) The change meets all applicable requirements of this part, the rules promulgated under this part, and the clean air act, and does not violate any existing emission limitation, standard, or other condition of the operating permit. (ii) The change does not affect any applicable requirement of the acid rain program under title IV and is not a modification under any provision of title I of the clean air act, chapter 360, 77 Stat. 392, 42 U.S.C. 42 USC 7401 to 7431, 7470 to 7479, 7491 to 7492, 7501 to 7509a, and 7511 to 7515. (iii) The source provides prompt written notice to the department and the administrator of the United States environmental protection agency, Environmental Protection Agency, except for changes that qualify as insignificant processes or activities pursuant to under section 5507(2). (j) Provisions to allow changes within a permitted source, pursuant to 40 C.F.R. under 40 CFR 70.7(e)(2), that may be made immediately after the source files an application with the department, if all of the following criteria are met: (i) The change does not violate any applicable requirement of this part, the rules promulgated under this part, or the clean air act. (ii) The change does not significantly affect an existing monitoring, record keeping, or reporting requirement in the operating permit. (iii) The change does not require or modify a case-by-case determination of an emission limitation or other standard, or a source-specific determination, for temporary sources, of ambient air impacts, or a visibility or increment analysis. (iv) The change does not seek to establish or modify an emission limitation, standard, or other condition of the operating permit that the source has assumed to avoid an applicable requirement of this part, the rules promulgated under this part, or the clean air act, to which the source would otherwise be subject. (v) The change is not a modification under any provision of title I of the clean air act, chapter 360, 77 Stat. 392, 42 U.S.C. 7401 to 7431, 7470 to 7479, 7491 to 7492, 7501 to 7509a, and 7511 42 USC 7401 to 7515. (k) Provisions for expeditiously handling administrative changes within a permitted source, pursuant to 40 C.F.R. under 40 CFR 70.7(d). These changes are limited to the following: (i) Correction of a typographical error. (ii) A change in the name, address, or phone number of any person identified in the permit, or other similar minor administrative change. (iii) A change that requires more frequent monitoring or reporting by the person owning or operating the source. (iv) A change in ownership or operational control of the source, if the department determines that no other change in the operating permit is necessary, and if a written agreement containing a specific date for transfer of operating permit responsibility, coverage, and liability between the current and new owners or operators has been submitted to the department. (v) Incorporation into the operating permit of the requirements of a permit to install issued pursuant to under section 5505, if the permit to install has met procedural requirements that are substantially equivalent to the requirements of this section, including the content of the permit, and the provisions for participation by the United States environmental protection agency Environmental Protection Agency and other affected states and participation of the public under section 5511. (l) Provisions for including reasonably anticipated alternate operating scenarios in an operating permit, pursuant to 40 C.F.R. under 40 CFR 70.6(a)(9). (m) Provisions to allow for the trading of emission increases and decreases within a permitted source solely for the purpose of complying with an enforceable emissions cap that is established in the permit pursuant to 40 C.F.R. part under 40 CFR 70.4(b)(12)(iii), independent of any otherwise applicable requirements of this part, the rules promulgated under this part, or the clean air act. (n) A schedule of the dates when submittal of an application for an operating permit is required for the source categories subject to this section and a phased schedule for taking final action on those applications. (5) Each operating permit issued under this section shall must be for a fixed term not to exceed 5 years. A permit applicant shall submit a timely application for renewal of an operating permit at least 6 months, but not more than 18 months, prior to before the expiration of the term of the existing operating permit. If a timely and administratively complete application is submitted, but the department has not approved or denied the renewal permit before the expiration of the term of the existing permit, the existing permit shall must not expire until the renewal permit is approved or denied. (6) Each operating permit issued pursuant to under this section shall must include those enforceable emissions limitations and standards applicable to the source, if any, and other conditions necessary to assure ensure compliance with the applicable requirements of this part, rules promulgated under this part, and the clean air act, a schedule of compliance, and a requirement that the owner or operator of a source submit to the department, at least every 6 months, a report summarizing the results of any required monitoring. Each operating permit issued pursuant to under this section shall must also include a severability clause to ensure the continued validity of the unchallenged terms and conditions of the operating permit if any portion of a permit is challenged. (7) The department shall require revision of an operating permit prior to before the expiration of the permit consistent with section 5506(4)(g), subsection (4)(g), for any of the following reasons or to do any of the following: (a) To incorporate new applicable emissions limitations, standards, or rules promulgated under this part or regulations promulgated under the clean air act, issued or promulgated after the issuance of the permit, if 3 or more years remain in the term of the permit. A revision shall must occur as expeditiously as practicable, but not later than 18 months after the promulgation of the emission limitation, standard, rule, or regulation. A revision is not required if the effective date of the emission limitation, standard, rule, or regulation is after the expiration date of the permit. (b) To incorporate new applicable standards and requirements of the acid rain program under title IV into the operating permits of sources affected by that program. (c) If the department determines that the permit contains a material mistake; that information required by this part, rules promulgated under this part, or the clean air act was omitted; or that an inaccurate statement was made in establishing the emissions limitations, standards, or conditions of the permit. (d) If the department determines that the permit must be revised to assure ensure compliance with the applicable requirements of this part, rules promulgated under this part, or the clean air act. (8) At the request of the permit holder, a permit revision under subsection (7) may be treated as a permit renewal if it complies with the applicable requirements for permit renewals of this part, rules promulgated under this part, and the clean air act. (9) A person who owns or operates a source subject to an operating permit issued pursuant to under this section shall promptly report to the department any deviations from the emissions limitations, standards, or conditions of the permit and shall annually certify to the department that the source has been and is in compliance with all emissions limitations, standards, and conditions of the permit, except for those deviations reported to the department, during the reporting period. A responsible official shall sign all reports submitted pursuant to under this subsection. (10) The department shall not approve or otherwise issue any operating permit for a source required to obtain an operating permit pursuant to under section 502(a) of title V of the clean air act, chapter 360, 104 Stat. 2641, 42 U.S.C. 42 USC 7661a, if the administrator of the United States environmental protection agency Environmental Protection Agency objects to issuance of the permit in a timely manner pursuant to under section 505(b) of title V of the clean air act, chapter 360, 104 Stat. 2643, 42 U.S.C. 42 USC 7661d. (11) Each operating permit shall must contain a statement that compliance with an operating permit issued in accordance with this section is compliance with subsection (1). In addition, the statement shall must provide that compliance with the operating permit is compliance with other applicable requirements of this part, rules promulgated under this part, and the clean air act, as of the date of permit issuance if either of the following requirements is met: (a) The permit specifically includes the applicable requirement. (b) The permit includes a determination that any other requirements that are specifically referred to in the determination are not applicable. (12) An application for an operating permit may include a request that the permit include reference to specific requirements of this part, rules promulgated under this part, or the clean air act that the person owning or operating the source believes are not applicable to the source. The operating permit shall must include a determination of applicability for the requirements included in the request. (13) Subsection (11) does not apply to a change at a source made pursuant to under subsection (4)(h), (i), or (j). Subsection (11) does not apply to a change in a source made pursuant to under subsection (4)(k) until the change is incorporated into the operating permit. (14) A person who owns or operates an existing source that is required to obtain an operating permit under this section, a general permit, or a permit to operate authorized under rules promulgated under section 5505(6) may file a petition with the department for review of the denial of his or her the person's application for such a permit, the revision of any emissions limitation, standard, or condition, or a proposed revocation of his or her the person's permit. This review shall must be conducted pursuant to under the contested case and judicial review procedures of the administrative procedures act of 1969, Act No. 306 of the Public Acts of 1969, being sections 24.201 to 24.328 of the Michigan Compiled Laws. 1969 PA 306, MCL 24.201 to 24.328. Any person may appeal the issuance or denial of an operating permit in accordance with section 631 of the revised judicature act of 1961, Act No. 236 of the Public Acts of 1961, being section 600.631 of the Michigan Compiled Laws. 1961 PA 236, MCL 600.631. A petition for judicial review is the exclusive means of obtaining judicial review of a permit and shall must be filed within 90 days after the final permit action. Such a The petition may be filed after that deadline only if it is based solely on grounds arising after the deadline for judicial review and if the appeal does not involve applicable standards and requirements of the acid rain program under title IV. Such a The petition shall must be filed within 90 days after the new grounds for review arise. (15) The failure of the department to act on a technically and administratively complete application or renewal application for an operating permit in accordance with a time requirement established pursuant to under subsection (3) and rules promulgated under subsection (4)(n) is final permit action solely for the purposes of obtaining judicial review in a court of competent jurisdiction to require that action be taken by the department without additional delay on the application or renewal application. (16) The department may, after notice and opportunity for public hearing, pursuant to under the requirements of section 5511, issue a general permit covering numerous similar sources, processes, or process equipment, or a permit that authorizes operation of a source at numerous temporary locations. A general permit or a permit that authorizes operation of a source at numerous temporary locations shall must comply with all requirements applicable to operating permits pursuant to under this section. A permit that authorizes operation of a source at numerous temporary locations shall must include terms and conditions necessary to assure ensure compliance with all applicable requirements of this part, rules promulgated under this part, and the clean air act, including those necessary to assure ensure compliance with all applicable ambient air standards, applicable emission limits, and applicable increment and visibility requirements pursuant to under part C of title I of the clean air act, chapter 360, 91 Stat. 731, 42 U.S.C. 7470 to 7479 and 7491 42 USC 7470 to 7492, at each authorized location and shall must require the owner or operator of the source to notify the department at least 10 days in advance of each change in location. A source covered by a general permit is not relieved from the obligation to file an application for a permit pursuant to under subsections (3) and (5). (17) As used in this section: ,"technically (a) "Emergency" means a situation arising from sudden and reasonably unforeseeable events beyond the control of the source, including acts of God, war, strike, riot, catastrophe, or other condition as to which negligence on the part of the person was not the proximate cause, that requires immediate corrective action to restore normal operation, and that causes the source to exceed a technology-based emission limitation contained in an operating permit issued under this section, a permit to install or permit to operate issued under section 5505, or any rule promulgated under this part due to unavoidable increases in emissions attributable to the situation. An emergency does not include acts of noncompliance caused by improperly designed equipment, lack of preventative maintenance, careless or improper operation, or operator error. (b) "Technically complete" means, for the purposes of an application for an operating permit required by this section, all of the information required for an administratively complete application and any other specific information requested by the department that may be necessary to implement and enforce all applicable requirements of this part, the rules promulgated under this part, or the clean air act, or to determine the applicability of those requirements. An application is not technically complete if it omits information needed to determine the applicability of any lawful requirement or to enforce any lawful requirement or any information necessary to evaluate the amount of the annual air quality fee for the source. Sec. 5523. (1) A county in which a city with a population of 750,000 or more is located may apply for a delegation from the department to issue state permits and administer and enforce the applicable provisions of this part, rules promulgated under this part, the clean air act, and the state implementation plan. After a public hearing, the department shall grant the delegation if the department finds that the county's application demonstrates all of the following: (a) That the county program complies with the applicable provisions of this part, the rules promulgated under this part, the clean air act, and the state implementation plan. (b) That the county has, and will continue to have, the capacity to carry out the applicable provisions of this part, rules promulgated under this part, the clean air act, and the state implementation plan including, but not limited to, adequate and qualified staff to do all of the following: (i) Monitor ambient air at locations specified by the department using equipment and procedures specified by the department. (ii) Process and review applications for installation permits, operating permits, tax exemptions, and construction waivers pursuant to under sections 5505 and 5506, part 59, and the clean air act, demonstrating a thorough knowledge of permit applicability, procedures, and regulations by developing permits that are free of significant errors and inaccuracies as defined in the performance standards section of the annual contract between the department and participating counties. (iii) Perform necessary sampling and laboratory analyses. (iv) Conduct regular and complete inspections and record reviews of all significant sources of air pollution. (v) Respond to citizen complaints related to air pollution. (vi) Notify sources of identified violations of applicable provisions of this part, rules promulgated under this part, the clean air act, and the state implementation plan, and conduct appropriate enforcement, up to and including administrative, civil, and criminal enforcement. (vii) Perform dispersion modeling analyses, collect emissions release information, and develop necessary state implementation plan demonstrations. (viii) Carry out other activities required by this part, rules promulgated under this part, the clean air act, and the state implementation plan. (c) That the county has adequate funding to carry out the applicable provisions of this part, rules promulgated under this part, the clean air act, and the state implementation plan. This shall demonstration must include identification of funding from air quality fees and any federal, state, or county funds along with an and identification of the activities that are funded by each funding source. The county funding shall must be sufficient to provide the required grantee match for any federal air pollution grant. (d) That the county has performed in accordance with the terms of the most recent contract, if any, between the this state and the county that describes the work activities and program to be carried out by the county. This shall must be demonstrated through state audit reports and the county's prompt and permanent correction of any deficiencies identified in state audit reports. (e) That the county program contains provisions for public notice and public participation consistent with this part, the rules promulgated under this part, and the clean air act. (f) That the county has the capacity to administer the state air quality fee program in the manner prescribed in section 5522 for all fee-subject facilities subject to this part, located within the county, and subject to the delegated program of the county. This shall capacity must include an ability to identify fee-subject facilities, calculate and assess fees, implement collections, maintain a dedicated account, and process fee challenges. (2) A delegation under this section shall must be for a term of not more than 5 years and not less than 2 years, and may be renewed by the department. The delegation shall must be in the form of a written contract that does all of the following: (a) Describes the activities the county shall carry out during the term of the delegation. (b) Provides for the delegated program to be consistent with implementation of the this state's air program, using state procedures, forms, databases, and other means. (c) Provides for ongoing communication between the county and state to assure ensure consistency under subdivision (b). (3) One hundred eighty days prior to before the expiration of the term of delegation, the county may submit an application to the department for renewal of their the delegation of authority. The department shall hold a public hearing and following the public hearing make its decision on a renewal of delegation at least 60 days prior to before the expiration of the term of the delegation. The department shall deny the renewal of a delegation of authority upon a finding that the county no longer meets the criteria described in subsection (1) or provisions of the delegation contract. The county may appeal a finding under subsection (1) or this subsection to a court of competent jurisdiction. (4) A county delegated authority under this section annually shall submit a report to the department that documents the county's ability to meet the criteria described in subsection (1) and the delegation contract during the past 12 months. (5) In addition to the report of the county under subsection (4), the auditor general of the this state shall annually submit to the governor, the legislature, and the department an independent report regarding whether a county meets the criteria provided in subsection (1) and a review of the fiscal integrity of a county delegated authority under this section. The auditor general's report shall must also determine the county's pro rata share of the this state's support services for title V programs that are attributable to and payable by a county. (6) Within 60 days after a county delegated authority under this section submits its annual report as required under subsection (4), the department shall notify the county, in writing, whether the report of the county meets the requirements of this section, or states, stating with particularity, the any deficiencies in that report or any findings in the auditor general's report that render the county in noncompliance with the criteria in subsection (1). The county shall have has 90 days to correct any stated deficiencies. If the department finds that the deficiencies have not been corrected by the county, the department shall notify the county, in writing, within 30 days of after the submission of the county's corrections and may terminate a county's delegation. The county shall have has 21 days from receipt of the decision of termination in which to appeal the department's decision to a court of competent jurisdiction. If the department fails to notify the county within 60 days, the report shall be is considered satisfactory for the purposes of this subsection. (7) Notwithstanding any other statutory provision, rule, or ordinance, a county delegated authority under this section to administer and enforce this part shall issue state permits and implement its responsibilities only in accordance with its delegation, the delegation contract, this part, rules promulgated under this part, the clean air act, and the applicable provisions of the state implementation plan. State permits issued by a county that is delegated authority under this section have the same force and effect as permits issued by the department, and if such a county issues a state permit pursuant to under section 5505 or 5506, no other state or county permit is required pursuant to under section 5505 or 5506, respectively. (8) Upon receipt of a permit application, prior to before taking final action to issue a state permit or entering into a consent order, the county shall transmit to the department a copy of each administratively complete permit application, application for a permit modification or renewal, proposed permit, or proposed consent order. The county shall transmit to the department a copy of each state permit issued by the county and consent order entered within 30 days of after issuance of the state permit or entry of the consent order. (9) Notwithstanding a delegation under this part, the department retains the authority to bring any appropriate enforcement action under sections 5515, 5516, 5518, 5526, 5527, 5528, 5529, 5530, 5531, and 5532 as authorized under this part and the rules promulgated under this part to enforce this part and the rules promulgated under this part. The department may bring any appropriate action to enforce a state permit issued or a consent order entered into by a county to which authority is delegated. (10) Notwithstanding any other provision of this part, in a county that has been delegated authority under this section , that county shall impose and collect fees in the manner prescribed in section 5522 on all fee-subject facilities subject to this part and located within the corporate boundaries and subject to the delegated program of the county. The department shall not levy or collect an annual air quality fee from the owner or operator of a fee-subject facility who pays fees pursuant to under this section. A county that is delegated authority under this section shall not assess a fee for a program or service other than as provided for in this part or title V or assess a fee covered by this part or title V greater than the fees set forth in section 5522. A county that is delegated authority under this section shall pay to the this state the pro rata share of the this state's support services for title V programs attributable to the county. (11) Fees imposed and collected by a county with delegated authority under this section shall must be paid to the county treasury. (12) The county treasurer of a county delegated authority under this section shall create a clean air implementation account in the county treasury, and the county treasurer shall deposit all fees received pursuant to under the delegation authorized under this section in the account. The fees shall must be expended only in accordance with section 5521(6), 5521(4), the rules promulgated under this part, and the clean air act. Enacting section 1. Section 5527 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.5527, is repealed.
HOUSE BILL NO. 6122
A bill to amend 1994 PA 451, entitled
"Natural resources and environmental protection act,"
by amending sections 5506 and 5523 (MCL 324.5506 and 324.5523), section 5523 as amended by 1998 PA 245; and to repeal acts and parts of acts.
the people of the state of michigan enact:
Sec. 5506. (1) After the date established pursuant to under subsections (3) and (4)(n), if an application for an operating permit is required to be submitted, a person shall not operate a source that is required to obtain an operating permit under section 502a 502(a) of title V of the clean air act, chapter 360, 104 Stat. 2641, 42 U.S.C. 7661a, and which is thereby 42 USC 7661a, and that is subject to the requirements of this section except in compliance with an operating permit issued by the department. A permit issued under this section does not convey a property right or an exclusive privilege.
(2) If a person who owns or operates a source has submitted a timely and administratively complete application for an operating permit, including an application for renewal of an operating permit, but final action has not been taken on the application, the source's failure to have an operating permit is not a violation of subsection (1) unless the delay in final action is due to the failure of the person owning or operating the source to submit information required or requested to process the application. A source required to have a permit under this section is not in violation of subsection (1) before the date on which the source is required to submit an application pursuant to under subsections (3) and (4)(n). Except as otherwise provided in subsection (5), expiration of an operating permit terminates a person's right to operate a source. This subsection does not waive an applicable requirement to obtain a permit under section 5505.
(3) A person who owns or operates a source required to have an operating permit pursuant to under this section shall submit to the department within 12 months after the date on which the source becomes subject to the requirement to obtain a permit under subsection (1), or on an earlier date specified by rule, a compliance plan and an administratively complete application for an operating permit signed by a responsible official, who shall certify the accuracy of the information submitted. The department shall approve or disapprove a timely and administratively complete application, and shall issue or deny the operating permit within 18 months after the date of receipt of the compliance plan and an administratively complete operating application, except that the department shall establish a phased schedule for acting on the timely and administratively complete operating permit applications submitted within the first full year after the operating permit program becomes effective. The schedule shall must assure ensure that at least 1/3 of the applications will be acted on by the department annually over a period not to exceed 3 years after the operating permit program becomes effective.
(4) The department shall promulgate rules to establish an operating permit program required under title V to be administered by the department. This permit program shall must include all of the following and, at a minimum, shall must be consistent with the requirements of title V:
(a) Provisions defining the categories of sources that are subject to the operating permit requirements of this section. Operating permits under this section are not required for any source category that is not required to obtain an operating permit under section 502(a) of title V of the clean air act, title V of chapter 360, 104 Stat. 2641, 42 U.S.C. 42 USC 7661a.
(b) Requirements for operating permit applications, including standard application forms, the minimum information that must be submitted with an administratively complete application, and criteria for determining in a timely fashion the administrative completeness of an application.
(c) A requirement that each operating permit application include a compliance plan describing how the source will comply with all applicable requirements of this part, rules promulgated under this part, and the clean air act.
(d) Provisions for inspection, entry, monitoring, record keeping, and reporting applicable to each operating permit issued under this section.
(e) Requirements and provisions for expeditiously determining when applications are technically complete, for processing applications.
(f) Provisions for transmitting copies of each operating permit application and proposed and final permits, permit, including each modification or renewal, to the administrator of the United States environmental protection agency, Environmental Protection Agency, and for notifying all other states whose air quality may be affected and that are contiguous to this state and for providing an opportunity for those states to provide written recommendations on each operating permit application and proposed permit, pursuant to under the requirements of section 505(a) and (d) of title V of the clean air act, title V of chapter 360, 104 Stat. 2643, 42 U.S.C. 42 USC 7661d.
(g) Provisions for issuance of operating permits and, in accordance with this part and rules promulgated under this part, for denial, termination, modification, revocation, renewal, and revision of operating permits for cause.
(h) Provisions to allow for changes within a permitted source without a revision to the operating permit, if the changes are not modifications under any provision of title I of the clean air act, chapter 360, 77 Stat. 392, 42 U.S.C. 42 USC 7401 to 7431, 7470 to 7479, 7491 to 7492, 7501 to 7509a, and 7511 to 7515, and the changes do not exceed the emissions allowed under the operating permit, if the owner or operator of the source provides the department and the administrator of the United States environmental protection agency Environmental Protection Agency with written notification at least 7 days in advance of the proposed changes. However, the department may provide a different time frame for an emergency. as defined in section 5527. The emissions allowed under the operating permit include any enforceable emission limitation, standard, or other condition, including a work practice standard, determined by the department to be required by an applicable requirement of this part, rules promulgated under this part, or the clean air act, or that establishes an emission limit or an enforceable emissions cap that the source has assumed to avoid an applicable requirement of this part, rules promulgated under this part, or the clean air act, to which the source would otherwise be subject. These provisions shall must include the following:
(i) Changes that contravene an express permit condition. Such Those changes shall must not include changes that would violate any applicable requirement of this part, the rules promulgated under this part, or the clean air act, or changes that would contravene any applicable requirement for monitoring, record keeping, reporting, or compliance certification.
(ii) Changes that involve emissions trading if trading has been approved by the administrator of the United States environmental protection agency Environmental Protection Agency as a part of the state implementation plan.
(i) Provisions to allow changes within a permitted source, pursuant to 40 C.F.R. under 40 CFR 70.4(b)(14), that are not addressed or prohibited by the operating permit, if all of the following criteria are met:
(i) The change meets all applicable requirements of this part, the rules promulgated under this part, and the clean air act, and does not violate any existing emission limitation, standard, or other condition of the operating permit.
(ii) The change does not affect any applicable requirement of the acid rain program under title IV and is not a modification under any provision of title I of the clean air act, chapter 360, 77 Stat. 392, 42 U.S.C. 42 USC 7401 to 7431, 7470 to 7479, 7491 to 7492, 7501 to 7509a, and 7511 to 7515.
(iii) The source provides prompt written notice to the department and the administrator of the United States environmental protection agency, Environmental Protection Agency, except for changes that qualify as insignificant processes or activities pursuant to under section 5507(2).
(j) Provisions to allow changes within a permitted source, pursuant to 40 C.F.R. under 40 CFR 70.7(e)(2), that may be made immediately after the source files an application with the department, if all of the following criteria are met:
(i) The change does not violate any applicable requirement of this part, the rules promulgated under this part, or the clean air act.
(ii) The change does not significantly affect an existing monitoring, record keeping, or reporting requirement in the operating permit.
(iii) The change does not require or modify a case-by-case determination of an emission limitation or other standard, or a source-specific determination, for temporary sources, of ambient air impacts, or a visibility or increment analysis.
(iv) The change does not seek to establish or modify an emission limitation, standard, or other condition of the operating permit that the source has assumed to avoid an applicable requirement of this part, the rules promulgated under this part, or the clean air act, to which the source would otherwise be subject.
(v) The change is not a modification under any provision of title I of the clean air act, chapter 360, 77 Stat. 392, 42 U.S.C. 7401 to 7431, 7470 to 7479, 7491 to 7492, 7501 to 7509a, and 7511 42 USC 7401 to 7515.
(k) Provisions for expeditiously handling administrative changes within a permitted source, pursuant to 40 C.F.R. under 40 CFR 70.7(d). These changes are limited to the following:
(i) Correction of a typographical error.
(ii) A change in the name, address, or phone number of any person identified in the permit, or other similar minor administrative change.
(iii) A change that requires more frequent monitoring or reporting by the person owning or operating the source.
(iv) A change in ownership or operational control of the source, if the department determines that no other change in the operating permit is necessary, and if a written agreement containing a specific date for transfer of operating permit responsibility, coverage, and liability between the current and new owners or operators has been submitted to the department.
(v) Incorporation into the operating permit of the requirements of a permit to install issued pursuant to under section 5505, if the permit to install has met procedural requirements that are substantially equivalent to the requirements of this section, including the content of the permit, and the provisions for participation by the United States environmental protection agency Environmental Protection Agency and other affected states and participation of the public under section 5511.
(l) Provisions for including reasonably anticipated alternate operating scenarios in an operating permit, pursuant to 40 C.F.R. under 40 CFR 70.6(a)(9).
(m) Provisions to allow for the trading of emission increases and decreases within a permitted source solely for the purpose of complying with an enforceable emissions cap that is established in the permit pursuant to 40 C.F.R. part under 40 CFR 70.4(b)(12)(iii), independent of any otherwise applicable requirements of this part, the rules promulgated under this part, or the clean air act.
(n) A schedule of the dates when submittal of an application for an operating permit is required for the source categories subject to this section and a phased schedule for taking final action on those applications.
(5) Each operating permit issued under this section shall must be for a fixed term not to exceed 5 years. A permit applicant shall submit a timely application for renewal of an operating permit at least 6 months, but not more than 18 months, prior to before the expiration of the term of the existing operating permit. If a timely and administratively complete application is submitted, but the department has not approved or denied the renewal permit before the expiration of the term of the existing permit, the existing permit shall must not expire until the renewal permit is approved or denied.
(6) Each operating permit issued pursuant to under this section shall must include those enforceable emissions limitations and standards applicable to the source, if any, and other conditions necessary to assure ensure compliance with the applicable requirements of this part, rules promulgated under this part, and the clean air act, a schedule of compliance, and a requirement that the owner or operator of a source submit to the department, at least every 6 months, a report summarizing the results of any required monitoring. Each operating permit issued pursuant to under this section shall must also include a severability clause to ensure the continued validity of the unchallenged terms and conditions of the operating permit if any portion of a permit is challenged.
(7) The department shall require revision of an operating permit prior to before the expiration of the permit consistent with section 5506(4)(g), subsection (4)(g), for any of the following reasons or to do any of the following:
(a) To incorporate new applicable emissions limitations, standards, or rules promulgated under this part or regulations promulgated under the clean air act, issued or promulgated after the issuance of the permit, if 3 or more years remain in the term of the permit. A revision shall must occur as expeditiously as practicable, but not later than 18 months after the promulgation of the emission limitation, standard, rule, or regulation. A revision is not required if the effective date of the emission limitation, standard, rule, or regulation is after the expiration date of the permit.
(b) To incorporate new applicable standards and requirements of the acid rain program under title IV into the operating permits of sources affected by that program.
(c) If the department determines that the permit contains a material mistake; that information required by this part, rules promulgated under this part, or the clean air act was omitted; or that an inaccurate statement was made in establishing the emissions limitations, standards, or conditions of the permit.
(d) If the department determines that the permit must be revised to assure ensure compliance with the applicable requirements of this part, rules promulgated under this part, or the clean air act.
(8) At the request of the permit holder, a permit revision under subsection (7) may be treated as a permit renewal if it complies with the applicable requirements for permit renewals of this part, rules promulgated under this part, and the clean air act.
(9) A person who owns or operates a source subject to an operating permit issued pursuant to under this section shall promptly report to the department any deviations from the emissions limitations, standards, or conditions of the permit and shall annually certify to the department that the source has been and is in compliance with all emissions limitations, standards, and conditions of the permit, except for those deviations reported to the department, during the reporting period. A responsible official shall sign all reports submitted pursuant to under this subsection.
(10) The department shall not approve or otherwise issue any operating permit for a source required to obtain an operating permit pursuant to under section 502(a) of title V of the clean air act, chapter 360, 104 Stat. 2641, 42 U.S.C. 42 USC 7661a, if the administrator of the United States environmental protection agency Environmental Protection Agency objects to issuance of the permit in a timely manner pursuant to under section 505(b) of title V of the clean air act, chapter 360, 104 Stat. 2643, 42 U.S.C. 42 USC 7661d.
(11) Each operating permit shall must contain a statement that compliance with an operating permit issued in accordance with this section is compliance with subsection (1). In addition, the statement shall must provide that compliance with the operating permit is compliance with other applicable requirements of this part, rules promulgated under this part, and the clean air act, as of the date of permit issuance if either of the following requirements is met:
(a) The permit specifically includes the applicable requirement.
(b) The permit includes a determination that any other requirements that are specifically referred to in the determination are not applicable.
(12) An application for an operating permit may include a request that the permit include reference to specific requirements of this part, rules promulgated under this part, or the clean air act that the person owning or operating the source believes are not applicable to the source. The operating permit shall must include a determination of applicability for the requirements included in the request.
(13) Subsection (11) does not apply to a change at a source made pursuant to under subsection (4)(h), (i), or (j). Subsection (11) does not apply to a change in a source made pursuant to under subsection (4)(k) until the change is incorporated into the operating permit.
(14) A person who owns or operates an existing source that is required to obtain an operating permit under this section, a general permit, or a permit to operate authorized under rules promulgated under section 5505(6) may file a petition with the department for review of the denial of his or her the person's application for such a permit, the revision of any emissions limitation, standard, or condition, or a proposed revocation of his or her the person's permit. This review shall must be conducted pursuant to under the contested case and judicial review procedures of the administrative procedures act of 1969, Act No. 306 of the Public Acts of 1969, being sections 24.201 to 24.328 of the Michigan Compiled Laws. 1969 PA 306, MCL 24.201 to 24.328. Any person may appeal the issuance or denial of an operating permit in accordance with section 631 of the revised judicature act of 1961, Act No. 236 of the Public Acts of 1961, being section 600.631 of the Michigan Compiled Laws. 1961 PA 236, MCL 600.631. A petition for judicial review is the exclusive means of obtaining judicial review of a permit and shall must be filed within 90 days after the final permit action. Such a The petition may be filed after that deadline only if it is based solely on grounds arising after the deadline for judicial review and if the appeal does not involve applicable standards and requirements of the acid rain program under title IV. Such a The petition shall must be filed within 90 days after the new grounds for review arise.
(15) The failure of the department to act on a technically and administratively complete application or renewal application for an operating permit in accordance with a time requirement established pursuant to under subsection (3) and rules promulgated under subsection (4)(n) is final permit action solely for the purposes of obtaining judicial review in a court of competent jurisdiction to require that action be taken by the department without additional delay on the application or renewal application.
(16) The department may, after notice and opportunity for public hearing, pursuant to under the requirements of section 5511, issue a general permit covering numerous similar sources, processes, or process equipment, or a permit that authorizes operation of a source at numerous temporary locations. A general permit or a permit that authorizes operation of a source at numerous temporary locations shall must comply with all requirements applicable to operating permits pursuant to under this section. A permit that authorizes operation of a source at numerous temporary locations shall must include terms and conditions necessary to assure ensure compliance with all applicable requirements of this part, rules promulgated under this part, and the clean air act, including those necessary to assure ensure compliance with all applicable ambient air standards, applicable emission limits, and applicable increment and visibility requirements pursuant to under part C of title I of the clean air act, chapter 360, 91 Stat. 731, 42 U.S.C. 7470 to 7479 and 7491 42 USC 7470 to 7492, at each authorized location and shall must require the owner or operator of the source to notify the department at least 10 days in advance of each change in location. A source covered by a general permit is not relieved from the obligation to file an application for a permit pursuant to under subsections (3) and (5).
(17) As used in this section: ,"technically
(a) "Emergency" means a situation arising from sudden and reasonably unforeseeable events beyond the control of the source, including acts of God, war, strike, riot, catastrophe, or other condition as to which negligence on the part of the person was not the proximate cause, that requires immediate corrective action to restore normal operation, and that causes the source to exceed a technology-based emission limitation contained in an operating permit issued under this section, a permit to install or permit to operate issued under section 5505, or any rule promulgated under this part due to unavoidable increases in emissions attributable to the situation. An emergency does not include acts of noncompliance caused by improperly designed equipment, lack of preventative maintenance, careless or improper operation, or operator error.
(b) "Technically complete" means, for the purposes of an application for an operating permit required by this section, all of the information required for an administratively complete application and any other specific information requested by the department that may be necessary to implement and enforce all applicable requirements of this part, the rules promulgated under this part, or the clean air act, or to determine the applicability of those requirements. An application is not technically complete if it omits information needed to determine the applicability of any lawful requirement or to enforce any lawful requirement or any information necessary to evaluate the amount of the annual air quality fee for the source.
Sec. 5523. (1) A county in which a city with a population of 750,000 or more is located may apply for a delegation from the department to issue state permits and administer and enforce the applicable provisions of this part, rules promulgated under this part, the clean air act, and the state implementation plan. After a public hearing, the department shall grant the delegation if the department finds that the county's application demonstrates all of the following:
(a) That the county program complies with the applicable provisions of this part, the rules promulgated under this part, the clean air act, and the state implementation plan.
(b) That the county has, and will continue to have, the capacity to carry out the applicable provisions of this part, rules promulgated under this part, the clean air act, and the state implementation plan including, but not limited to, adequate and qualified staff to do all of the following:
(i) Monitor ambient air at locations specified by the department using equipment and procedures specified by the department.
(ii) Process and review applications for installation permits, operating permits, tax exemptions, and construction waivers pursuant to under sections 5505 and 5506, part 59, and the clean air act, demonstrating a thorough knowledge of permit applicability, procedures, and regulations by developing permits that are free of significant errors and inaccuracies as defined in the performance standards section of the annual contract between the department and participating counties.
(iii) Perform necessary sampling and laboratory analyses.
(iv) Conduct regular and complete inspections and record reviews of all significant sources of air pollution.
(v) Respond to citizen complaints related to air pollution.
(vi) Notify sources of identified violations of applicable provisions of this part, rules promulgated under this part, the clean air act, and the state implementation plan, and conduct appropriate enforcement, up to and including administrative, civil, and criminal enforcement.
(vii) Perform dispersion modeling analyses, collect emissions release information, and develop necessary state implementation plan demonstrations.
(viii) Carry out other activities required by this part, rules promulgated under this part, the clean air act, and the state implementation plan.
(c) That the county has adequate funding to carry out the applicable provisions of this part, rules promulgated under this part, the clean air act, and the state implementation plan. This shall demonstration must include identification of funding from air quality fees and any federal, state, or county funds along with an and identification of the activities that are funded by each funding source. The county funding shall must be sufficient to provide the required grantee match for any federal air pollution grant.
(d) That the county has performed in accordance with the terms of the most recent contract, if any, between the this state and the county that describes the work activities and program to be carried out by the county. This shall must be demonstrated through state audit reports and the county's prompt and permanent correction of any deficiencies identified in state audit reports.
(e) That the county program contains provisions for public notice and public participation consistent with this part, the rules promulgated under this part, and the clean air act.
(f) That the county has the capacity to administer the state air quality fee program in the manner prescribed in section 5522 for all fee-subject facilities subject to this part, located within the county, and subject to the delegated program of the county. This shall capacity must include an ability to identify fee-subject facilities, calculate and assess fees, implement collections, maintain a dedicated account, and process fee challenges.
(2) A delegation under this section shall must be for a term of not more than 5 years and not less than 2 years, and may be renewed by the department. The delegation shall must be in the form of a written contract that does all of the following:
(a) Describes the activities the county shall carry out during the term of the delegation.
(b) Provides for the delegated program to be consistent with implementation of the this state's air program, using state procedures, forms, databases, and other means.
(c) Provides for ongoing communication between the county and state to assure ensure consistency under subdivision (b).
(3) One hundred eighty days prior to before the expiration of the term of delegation, the county may submit an application to the department for renewal of their the delegation of authority. The department shall hold a public hearing and following the public hearing make its decision on a renewal of delegation at least 60 days prior to before the expiration of the term of the delegation. The department shall deny the renewal of a delegation of authority upon a finding that the county no longer meets the criteria described in subsection (1) or provisions of the delegation contract. The county may appeal a finding under subsection (1) or this subsection to a court of competent jurisdiction.
(4) A county delegated authority under this section annually shall submit a report to the department that documents the county's ability to meet the criteria described in subsection (1) and the delegation contract during the past 12 months.
(5) In addition to the report of the county under subsection (4), the auditor general of the this state shall annually submit to the governor, the legislature, and the department an independent report regarding whether a county meets the criteria provided in subsection (1) and a review of the fiscal integrity of a county delegated authority under this section. The auditor general's report shall must also determine the county's pro rata share of the this state's support services for title V programs that are attributable to and payable by a county.
(6) Within 60 days after a county delegated authority under this section submits its annual report as required under subsection (4), the department shall notify the county, in writing, whether the report of the county meets the requirements of this section, or states, stating with particularity, the any deficiencies in that report or any findings in the auditor general's report that render the county in noncompliance with the criteria in subsection (1). The county shall have has 90 days to correct any stated deficiencies. If the department finds that the deficiencies have not been corrected by the county, the department shall notify the county, in writing, within 30 days of after the submission of the county's corrections and may terminate a county's delegation. The county shall have has 21 days from receipt of the decision of termination in which to appeal the department's decision to a court of competent jurisdiction. If the department fails to notify the county within 60 days, the report shall be is considered satisfactory for the purposes of this subsection.
(7) Notwithstanding any other statutory provision, rule, or ordinance, a county delegated authority under this section to administer and enforce this part shall issue state permits and implement its responsibilities only in accordance with its delegation, the delegation contract, this part, rules promulgated under this part, the clean air act, and the applicable provisions of the state implementation plan. State permits issued by a county that is delegated authority under this section have the same force and effect as permits issued by the department, and if such a county issues a state permit pursuant to under section 5505 or 5506, no other state or county permit is required pursuant to under section 5505 or 5506, respectively.
(8) Upon receipt of a permit application, prior to before taking final action to issue a state permit or entering into a consent order, the county shall transmit to the department a copy of each administratively complete permit application, application for a permit modification or renewal, proposed permit, or proposed consent order. The county shall transmit to the department a copy of each state permit issued by the county and consent order entered within 30 days of after issuance of the state permit or entry of the consent order.
(9) Notwithstanding a delegation under this part, the department retains the authority to bring any appropriate enforcement action under sections 5515, 5516, 5518, 5526, 5527, 5528, 5529, 5530, 5531, and 5532 as authorized under this part and the rules promulgated under this part to enforce this part and the rules promulgated under this part. The department may bring any appropriate action to enforce a state permit issued or a consent order entered into by a county to which authority is delegated.
(10) Notwithstanding any other provision of this part, in a county that has been delegated authority under this section , that county shall impose and collect fees in the manner prescribed in section 5522 on all fee-subject facilities subject to this part and located within the corporate boundaries and subject to the delegated program of the county. The department shall not levy or collect an annual air quality fee from the owner or operator of a fee-subject facility who pays fees pursuant to under this section. A county that is delegated authority under this section shall not assess a fee for a program or service other than as provided for in this part or title V or assess a fee covered by this part or title V greater than the fees set forth in section 5522. A county that is delegated authority under this section shall pay to the this state the pro rata share of the this state's support services for title V programs attributable to the county.
(11) Fees imposed and collected by a county with delegated authority under this section shall must be paid to the county treasury.
(12) The county treasurer of a county delegated authority under this section shall create a clean air implementation account in the county treasury, and the county treasurer shall deposit all fees received pursuant to under the delegation authorized under this section in the account. The fees shall must be expended only in accordance with section 5521(6), 5521(4), the rules promulgated under this part, and the clean air act.
Enacting section 1. Section 5527 of the natural resources and environmental protection act, 1994 PA 451, MCL 324.5527, is repealed.