(1) All areas of the state (except as otherwise provided under ARM 17.8.806) are designated Class II. Redesignation (except as otherwise precluded by ARM 17.8.806) shall be subject to the redesignation procedures of this rule. Lands within the exterior boundaries of Indian reservations may be redesignated only by the appropriate Indian governing body, as required by 40 CFR 51.166(g) (4) .

(2) The department may submit to the administrator a proposal to redesignate areas of the state Class I or Class II, provided that:

(a) at least one public hearing has been held in accordance with procedures established in 40 CFR 51.102;

(b) other states, Indian governing bodies, and federal land managers whose lands may be affected by the proposed redesignation were notified at least 30 days prior to the public hearing;

(c) a discussion of the reasons for the proposed redesignation, including a satisfactory description and analysis of the health, environmental, economic, social, and energy effects of the proposed redesignation, was prepared and made available for public inspection at least 30 days prior to the hearing and the notice announcing the hearing contained appropriate notification of the availability of such discussion;

(d) prior to the issuance of notice respecting the redesignation of an area that includes any federal lands, the department has provided written notice to the appropriate federal land manager and afforded adequate opportunity (not in excess of 60 days) to confer with the department respecting the redesignation and to submit written comments and recommendations. In redesignating any area with respect to which any federal land manager had submitted written comments and recommendations, the department shall have published a list of any inconsistency between such redesignation and such comments and recommendations (together with the reasons for making such redesignation against the recommendation of the federal land manager) ; and

(e) the department has proposed the redesignation after consultation with the elected leadership of any local governmental bodies located within the area covered by the proposed redesignation.

(3) Any area other than an area to which ARM 17.8.806 refers may be redesignated as Class III if:

(a) the redesignation would meet the requirements of (2) ;

(b) the redesignation, except any established by an Indian governing body, has been specifically approved by the governor, after consultation with the appropriate committees of the legislature (if it is in session, or with the leadership of the legislature, if it is not in session) , and if the local governmental bodies representing a majority of the residents of the area to be redesignated enact ordinances or regulations (including resolutions where appropriate) concurring in the redesignation;

(c) the redesignation would not cause, or contribute to, a concentration of any air pollutant which would exceed any maximum allowable increase permitted under the classification of any other area or any national ambient air quality standard; and

(d) any permit application for any major stationary source or major modification subject to ARM 17.8.820, which could receive a permit under this subchapter only if the area in question were redesignated as Class III, and any material submitted as part of that application, were available, as was practicable, for public inspection prior to any public hearing on redesignation of any area as Class III.

(4) If the administrator disapproves any proposed area designation, the classification of the area will be that which was in effect prior to the proposed redesignation which was disapproved, and the state may resubmit the proposal after correcting the deficiencies noted by the administrator.