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Correspondence



July 16, 1996

The Honorable Tommy G. Thompson
Governor of Wisconsin
Madison, Wisconsin 53707


Dear Governor Thompson:

I am writing to you and Governor Engler to convey the U. S. Environmental Protection Agency's
(EPA) plan to publish shortly an advance notice of proposed rulemaking (ANPR) that will
address issues related to non-federal class I areas. This decision follows a June 4, 1996
meeting among Mary Nichols, EPA's Assistant Administrator for Air and Radiation, George
Meyer, of Wisconsin's Department of Natural Resources and Dennis Drake, of Michigan's
Department of Natural Resources, about the Forest County Potawatomi Community's
(Community) request to redesignate part of its reservation as a "class I" area under the Clean
Air Act program for the Prevention of Significant Deterioration of Air Quality (PSD).


During that discussion, the state representatives expressed their concern that the prospect of
several redesignations of tribal lands to class I areas would impact economic development in the
states of Wisconsin and Michigan. They acknowledged that the procedures for making class I
redesignation requests are relatively clear, but they expressed concern, as you have done in the
past, about the lack of specific procedures governing the review of PSD permit applications for
major sources proposing to locate on state lands near tribal class I areas.


In that meeting, Assistant Administrator Nichols agreed that rules specifically addressing the
PSD permit review process for sources potentially affecting non-federal class I areas might be
useful in clarifying the roles and responsibilities of the affected parties. She indicated that EPA
would consider a rulemaking to address these issues. I intend to use the ANPR to raise specific
issues and solicit input from all interested parties. I look forward to broad stakeholder
participation in framing the permit evaluation process.


As you know, our Region V's rulemaking action on the Community's request for class I
redesignation has been held in abeyance since last summer when you and Governor Engler
registered your objections to the request. Based on your notification of disagreement, EPA
initiated the intergovernmental dispute resolution process provided for under section 164(e) of
the Clean Air Act and EPA's implementing regulations. At that time, EPA Region V undertook a
process to identify the concerns of the states and the Community and to resolve the dispute
amicably. However, you expressed reluctance to participate because of your concern that EPA
should also clarify the permit application review procedures with respect to non-federal class I
areas.


I do not believe it is necessary to continue to delay the redesignation process until EPA has
finalized its rules on the PSD permit evaluation process for non-federal class I areas. I am asking
Region V, therefore, to reschedule the public hearings on the redesignation request, likely within
the next few months. The public comment period and public hearing process will provide
opportunity for interested parties to present their concerns about the proposed redesignation. I
also reiterate EPA's invitation to both you and Governor Engler to identify your specific concerns
and begin to work with the Community and EPA to resolve them. Please notify Region V if you
have renewed interest in the intergovernmental dispute resolution process.


I want to reaffirm my commitment to maintain open communication lines. If you or your staff have
any questions regarding the steps we are taking, please do not hesitate to contact me.


Sincerely,

/s/

Carol A. Browner

cc:
Philip Shopodock, Chairman
Forest County Potawatomi Executive Council


***********************************************************

July 16, 1996

The Honorable John Engler
Governor of Michigan
Lansing, Michigan 48909


Dear Governor Engler:

I am writing to you and Governor Thompson to convey the U. S. Environmental Protection
Agency's (EPA) plan to publish shortly an advance notice of proposed rulemaking (ANPR) that
will address issues related to non-federal class I areas. This decision follows a June 4, 1996
meeting among Mary Nichols, EPA's Assistant Administrator for Air and Radiation, George
Meyer, of Wisconsin's Department of Natural Resources and Dennis Drake, of Michigan's
Department of Natural Resources, about the Forest County Potawatomi Community's
(Community) request to redesignate part of its reservation as a "class I" area under the Clean
Air Act program for the Prevention of Significant Deterioration of Air Quality (PSD).


During that discussion, the state representatives expressed their concern that the prospect of
several redesignations of tribal lands to class I areas would impact economic development in the
states of Michigan and Wisconsin. They acknowledged that the procedures for making class I
redesignation requests are relatively clear, but they expressed concern, as you have done in the
past, about the lack of specific procedures governing the review of PSD permit applications for
major sources proposing to locate on state lands near tribal class I areas.


In that meeting, Assistant Administrator Nichols agreed that rules specifically addressing the
PSD permit review process for sources potentially affecting non-federal class I areas might be
useful in clarifying the roles and responsibilities of the affected parties. She indicated that EPA
would consider a rulemaking to address these issues. I intend to use the ANPR to raise specific
issues and solicit input from all interested parties. I look forward to broad stakeholder
participation in framing the permit evaluation process.


As you know, our Region V's rulemaking action on the Community's request for class I
redesignation has been held in abeyance since last summer when you and Governor Thompson
registered your objections to the request. Based on your notification of disagreement, EPA
initiated the intergovernmental dispute resolution process provided for under section 164(e) of
the Clean Air Act and EPA's implementing regulations. At that time, EPA Region V undertook a
process to identify the concerns of the states and the Community and to resolve the dispute
amicably. However, you expressed reluctance to participate because of your concern that EPA
should also clarify the permit application review procedures with respect to non-federal class I
areas.


I do not believe it is necessary to continue to delay the redesignation process until EPA has
finalized its rules on the PSD permit evaluation process for non-federal class I areas. I am asking
Region V, therefore, to reschedule the public hearings on the redesignation request, likely within
the next few months. The public comment period and public hearing process will provide
opportunity for interested parties to present their concerns about the proposed redesignation. I
also reiterate EPA's invitation to both you and Governor Thompson to identify your specific
concerns and begin to work with the Community and EPA to resolve them. Please notify Region
V if you have renewed interest in the intergovernmental dispute resolution process.


I want to reaffirm my commitment to maintain open communication lines. If you or your staff have
any questions regarding the steps we are taking, please do not hesitate to contact me.


Sincerely,

/s/

Carol A. Browner

cc:
Philip Shopodock, Chairman
Forest County Potawatomi Executive Council