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HomeMy WebLinkAboutDAQ-2025-002240 Rio Tinto Kennecott, 4700 Daybreak Parkway, South Jordan, Utah, 84009 4936-1399-6086.v3 April 15, 2025 Mr. Bryce Bird, Director Department of Environmental Quality Division of Air Quality 195 N 1950 W Salt Lake City, UT 84116 Attention: Mr. Greg Mortensen, Ms. Erica Pryor, Ms. Becky Close: Subject: Comments on the Utah Division of Air Quality’s Amend R307-150. Emission Inventories. Dear Mr. Bird, Kennecott Utah Copper LLC (KUC) is submitting this letter to the Utah Division of Air Quality (UDAQ) to provide comments on the proposed changes to the Utah Administrative Code R307-150, Emissions Inventories. KUC understands that UDAQ opened up R307-150 for revisions in order to make necessary administrative changes to the rule related to the SO2 reporting language1. However, UDAQ also proposed other revisions to R307-150 that have broader implications that would have benefitted from pre-proposal engagement with stakeholders that implement the rule. Given the lack of engagement, UDAQ failed to correctly assess these broad implications and failed to consider the added reporting burden that the revised rule would impose on regulated entities. KUC has outlined these concerns in greater detail below and recommends the following actions in the event that UDAQ proceeds by presenting a final rule to the Utah Air Quality Board (AQB): 1. UDAQ should remove the proposed revisions that eliminate the Hazardous Air Pollutants (HAPs) emissions thresholds; and 2. UDAQ should remove the proposed conditions that require all entities to report mobile emission data as part of annual emissions inventories. Given the broad implications of the rule, KUC also recommends that UDAQ withdraw the proposed rule in its entirety, engage with stakeholders, and re- propose another version of the rule. KUC’s environmental staff have extensive experience implementing the current version of R307-150. In fact, preparing emissions inventories to comply with the rule is one of the most labor-intensive regulatory activities that KUC undertakes. With that in mind, KUC is more than happy to have its environmental staff engage with UDAQ on the emissions 1 In reference to details on this rulemaking, KUC is relying on the information documented by UDAQ in the proposed rule notice and information that was presented and discussed with UDAQ in a virtual meeting with Air and Waste Management Association (AWMA) on March 13, 2025, hereafter referred to as “AWMA March 2025 meeting”. Rio Tinto Kennecott 4700 Daybreak Parkway South Jordan, Utah 84009 Tel: 801-204-2000 2 / 4 4936-1399-6086.v3 inventory rule so that the rule drafters understand and appreciate the broad implications that any proposed revisions would have on regulated entities. Comment 1: Lack of Stakeholder Engagement KUC is disappointed that this rule development was not discussed with industry stakeholders prior to presenting to the AQB. In the past year, UDAQ has proposed several rules with advanced rulemaking opportunities and presentations at the UDAQ-hosted industry stakeholder meetings. KUC has acknowledged the positive impact of the previous rulemaking engagement activities in communications with UDAQ, yet UDAQ did not use any of these forums for this rule.2 Opportunities such as round table discussions, advanced rulemaking actions, and industry stakeholder meetings are valuable opportunities for KUC to proactively manage upcoming compliance and reporting obligations and engaging in such forums often results in effective and meaningful feedback. For example, one of the things that UDAQ would have learned if it had engaged with stakeholders prior to proposing revisions to R307-150 is that preparing emissions inventories is a labor-intensive activity; for KUC’s operations, it takes extensive effort from multiple staff to prepare KUC’s emissions inventories. Given the necessary hours that KUC must dedicate to preparing emissions inventories by April 15, KUC would have cautioned UDAQ that the timing of its proposed rule didn’t make sense from a workload perspective because any comments would be due contemporaneously with the comment period for the rule. KUC finds UDAQ’s failure to recognize the overlap between emissions inventory reporting and commenting on the rule extremely disappointing. KUC truly believes that active engagement on this draft rule will result in meaningful and effective feedback that will increase the effectiveness of such a proposal. Comment 2: Justification for rule changes is not based on data In section 3 of the Notice of Substantive Change summary, UDAQ presents reasons for the changes to removing the Hazardous Air Pollutants (HAPs) thresholds and adding mobile emissions. For proposing to remove the HAPs thresholds from the rule, UDAQ outlines that they cannot recreate the thresholds. As a replacement, they assert that having no threshold is appropriate because: SLEIS is now able to automatically populate any HAPs emission factors with standard, well-defined methodology, therefore negating the need for exemption limits. This feature of SLEIS is not a justification for removing the thresholds. SLEIS is a tool for submitting inventory data. The use of the tool does not guarantee compliance and UDAQ is assuming user reliance on the tool. It is still the 2 KUC finds the omission of stakeholder engagement curious as it does not appear that the revisions to R307-150 were mandated by any particular deadline. 3 / 4 4936-1399-6086.v3 responsibility of the users to ensure the data is representative. For example, many KUC processes are interconnected and to ensure processes are representative compared to each other, KUC prepares and reviews inventory data outside of SLEIS. Then, KUC uses the template upload feature to populate the data into SLEIS for submittal. It is unclear if UDAQ considered this feature in their review. For proposing to add mobile emissions reporting to the rule, UDAQ states: This change will allow staff to level the playing field and mandate all facilities to report these emissions. The wording of this statement could be misinterpreted. KUC is concerned that it lacks a level of acknowledgement for the work that is required for the regulated community to comply with R307-150 requirements. UDAQ’s statement fails to account for the true root cause of why UDAQ has some sources report mobile emissions while others are exempt from reporting. Ultimately, UDAQ only speculates that additional data could support the work of groups at the agency but has not provided any clear data or examples of how these changes are an improvement to the current methods. Additionally, UDAQ does not provide details around how this data will be used and if this new reporting requirement will lead to double counting of emissions specifically for sources that currently report some mobile source emissions. Comment 3: Rulemaking incorrectly assumes changes have no fiscal impact UDAQ has not completed the necessary outreach to properly confirm that the fiscal impact of the rulemaking is indeed $0. KUC, and all reporting facilities, spend extensive resources to collect the necessary data, verify the data, and prepare the data for reporting. Engaging with the reporting community was necessary research to understand of the potential fiscal impact of this proposed rule. KUC recommends stakeholder engagement to ascertain the true fiscal impact of this rule to the sources in the state. Comment 4: UDAQ should clarify mobile emissions request outside of rulemaking KUC does not support the proposal to include mobile emissions reporting based on the information summarized by UDAQ. The proposed mobile emissions changes are so broad that there will be a substantial amount of effort to understand the emissions associated with all types of mobile equipment, regardless of size and extent of use, and their operation. In the AWMA March 2025 meeting, UDAQ stated that the mobile equipment covered by the rule included lawn mowers, snow blowers, as well as typical industrial mobile equipment, such as haul trucks, construction and excavation equipment, and industrial equipment like forklifts. This interpretation is a very different – and much more broad interpretation – from KUC’s original understanding of mobile emissions and will create additional levels of effort to track operations for emissions reporting. 4 / 4 4936-1399-6086.v3 For these reasons, UDAQ needs to invest more time and effort into clarifying the justification for requesting mobile emissions to understand, what, if any, mobile emissions are necessary for reporting. During the AWMA March 2025 meeting, UDAQ stated that they would create a guidance document after the rule was passed. KUC suggests that UDAQ should create the guidance document prior to any potential rulemaking. The guidance should be created in partnership with stakeholders to understand the level of effort and potential complications that could impact the accuracy of the data which may not meet the proposed intent. RECOMMENDATIONS Ultimately, KUC believes the proposed revisions to R307-150 would greatly benefit from proper stakeholder engagement. As such, KUC requests that UDAQ withdraw the rule, engage with stakeholders, and then re-propose revisions in a separate rule. Such an action is necessary because UDAQ should understand how the changes to the emissions inventory rule affect the regulated community prior to completing a rulemaking that has broad and onerous implementation impacts. Additionally, KUC believes that publication of a guidance document prior to this rulemaking allows for easier implementation and collection of meaningful information. In the event that UDAQ proceeds with the rule as currently proposed, UDAQ must revise the proposal to (1) eliminate the provisions that remove the HAPs emissions thresholds” and (2) remove the provisions that require “mobile source emissions reporting.”. Closing KUC appreciates the opportunity to comment on the proposed changes to Utah Administrative Code R307-150, Emissions Inventories. As always, KUC is committed to working collaboratively with UDAQ on these issues and welcomes additional discussions on the rule in the future. Sincerely, Jenny Esker Evans Principal Advisor, Air Quality Permitting and Compliance