1. (a) This part provides for management of any zone in Arkansas identified as a Zone Targeted for Economic Development pursuant to 173(a)(1)(B) of the Clean Air Act.

2. (b) There are established Targeted Economic Development Zone (TEDZ) Emissions by area in the amount of:

   1. (1) Crittenden County.

3. (i) One thousand nine hundred (1,900) tons per year of VOC and three hundred (300) tons per year of nitrogen oxides beginning January 1, 2007; and

   1. (ii) Three thousand seven hundred (3,700) tons per year of VOC and eight hundred (800) tons per year of nitrogen oxides beginning January 1, 2009.

      1. (c)
   2. (1) In lieu of obtaining offsets as required in 8 CAR § 43-203(2) and 8 CAR § 43-204, a source locating in a TEDZ described in subsection (a) of this section may petition the Director of the Division of Environmental Quality to allocate TEDZ emissions established under subsection (b) of this section for offsets.

   3. (2) A source must either obtain offsets as required in 8 CAR § 43-203(2) and 8 CAR § 43-204 or obtain growth allowance for the applicable TEDZ pursuant to this section.

      1. (d) Any petition for an allocation of TEDZ emissions shall:
   4. (1) Be made on such forms and contain such information as the director may reasonably require;

   5. (2) Contain detailed information about the projected socioeconomic impact of the proposed project including, but not limited to:

      1. (A) Impact of the project on low to moderate income individuals;

         1. (B) Number of jobs to be created; and
         2. (C) Median salary of employees;
   6. (3) Contain a project schedule;
   7. (4) Be separate and distinct from the permit application required under 8 CAR § 43-202; and
   8. (5) Be submitted concurrently with the application required under 8 CAR § 43-202.
4. (e) Before taking final action on a petition for an allocation of TEDZ emissions, the director shall solicit input from the appropriate local governing body.

5. (f) The director shall not allocate any TEDZ emissions unless he or she is reasonably satisfied that:

   1. (1) The project will achieve the economic impact described in the petition;
   2. (2) The projected economic impact justifies the allocation of TEDZ emissions; and
   3. (3) No other projects which do more to further the region’s economic development goals will be preempted.
6. (g) If, while processing a petition, the director determines that additional information is necessary to evaluate or take final action on that petition, the director may request such information in writing and set a reasonable deadline for a response.

7. (h) Any petitioner who fails to submit any relevant facts or who has submitted incorrect information in a petition shall, upon becoming aware of such failure or incorrect submittal, promptly submit such supplementary facts or corrected information.

   1. (i)
   2. (1) If the director determines the requirements of subsection (f) of this section are met, he or she shall prepare a document announcing his or her intent to grant the allocation of TEDZ emissions.
   3. (2) This document may contain such conditions as are necessary to ensure compliance with this part and that the project is completed as described in the petition.

8. (j)

   1. (1) No petition may be granted unless the public has first had an opportunity to comment.

   2. (2) The opportunity to comment shall include:

      1. (A)
      2. (i) The publication of a notice of the director’s decision in a newspaper of general circulation in the county in which the proposed facility will be located.

      3. (ii) In the event the local newspaper is unable or unwilling to publish notice, notice may be published in a newspaper of statewide circulation; and

         1. (B) A thirty-day period for submittal of public comment, beginning on the date of the newspaper notice and ending on the date thirty (30) days later.

9. (k) The notice required under subsection (j) of this section may be issued concurrently with the notice required under 8 CAR § 43-209(c).

   1. (l)
   2. (1) The director shall take final action on a petition after the close of the public comment period.

   3. (2) The director shall notify in writing the owner/operator and any person that submitted a written comment of the director’s final action and the director’s reasons for his or her final action.

      1. (m) A final decision on a petition by the director constitutes a final permitting decision under Arkansas Pollution Control and Ecology Commission, Administrative Procedures, 8 CAR pt. 11, for appeal purposes.
10. (n) The air permit application submitted concurrently with the petition for an allocation of TEDZ emissions shall not be considered complete until final action is taken on the petition.

11. (o) Any petition issued under this section is subject to revocation, suspension, or modification in whole or in part, for cause, including without limitation:

    1. (1) Violation of any condition established by the director;
    2. (2) Obtaining the allocations by misrepresentation or failure to disclose fully all relevant facts;
    3. (3) Failure to complete the project within the time periods specified by the project schedule; or
    4. (4) Failure to achieve the projected socioeconomic impacts.

12. (p)

    1. (1)

       1. (A) Petitions for allocations may be granted in whole, in part, or denied.

          1. (B) If a petition for allocation is granted in part or denied, the applicant must obtain offsets in the required ratios under the Clean Air Act pursuant to 8 CAR § 43-203(2) and 8 CAR § 43-204.
          2. (C) If a petition is granted, either in part or in whole, the applicant will be notified of the decision and the allocations granted will be subtracted from the overall EDZ allocation pool.
    2. (2) A ten-percent reserve of allocations will be maintained in the pool, unless the director approves the disbursement of these safety factor allocations.
13. (q) The issuance of allocations does not convey any property rights to the owner/operator.
14. (r) In the event future changes in source operation and/or regulation renders all or some of the allocations unneeded, the surplus allocations shall be returned.
15. (s) Except as provided in this subpart, TEDZ emissions allocations shall be good for the life of the project.

Codification Notes: The Clean Air Act, Pub. L. No. 101-549, is codified at 42 U.S.C. § 7401 et seq.