Minor NSR Program and Highlights of the Proposed Tribal Major Nonattainment and Minor NSR Rules Jessica Montañez U.S. Environmental Protection Agency Office of Air Quality Planning and Standards , 1

What is the purpose of this discussion? 2. Proposed Minor NSR Rule 3. Proposed Major Nonattainment NSR Rule 4. Delegation, Permitting, Public Participation and Permit Appeal Requirements 4. Delegation, Permitting, Public Participation and Permit Appeal Requirements 5. Summary of Comments Received 1. Applicability and Program Requirements 2

Minor NSR Applicability and Program Requirements 3

What are the Minor NSR applicability and program requirements? Sources below major NSR thresholds Not many requirements prescribed in our rules –Mainly for public participation at 40 CFR (a)-(d), (q), and 52.21(q) Great deal of variation among state Minor NSR programs Proposal represents how EPA would implement program in Indian Country in the absence of an EPA approved plan 4

Why do we need Federal NSR rules in Indian Country? Provide a permitting mechanism Fill existing NSR program gaps Promote economic development 5

How will tribes benefit for the proposed Federal NSR rules? Protect Tribal sovereignty Provide equal opportunity for economic development Build Tribal capacity 6

Specifics of the Proposed Tribal Minor NSR Rule 7

What is a threshold and what are examples of the proposed Minor NSR thresholds? Limits below which minor NSR does not apply Lower in nonattainment areas For example: –Ozone attainment areas – 10 tpy NO 2 –Ozone nonattainment areas – 5 tpy NO 2 Not the most nor the least stringent limits –42% of VOC sources will be below thresholds –76% of SO 2 sources will be below thresholds 8

What are the proposed Minor NSR rule requirements? Case-by-case control technology review Air Quality Impact Analysis (AQIA) in rare cases Monitoring, recordkeeping, and reporting as needed to assure compliance Public participation, administrative and judicial review 9

What are the proposed types of Minor NSR permits? Typical/common type of permit Source-wide permit General permit Synthetic minor source permits 10

Permit Types Examples 11

Example 1: What may be the appropriate controls for this asphalt batch plant? Source information: –Process capacity of 300 tons of asphalt/hour –Dryer burner capacity of 60 MMBTU/hour Area information: –Area in attainment for all pollutants Emit PM Emit PM, CO, NO x, SO 2, and VOC Emit PM ROADWAYS Permit information: – Source owner applying for a typical/common permit 12

Which controls did the reviewing authority determine were needed? PM/PM-10: –Dryer will need a cyclone and a baghouse. –Screens/bins/mixer will need a capture system (hood). –Roadways will need dust suppressants –Conveyor transfer points will need shrouding (screen or cover at transfer points) –Aggregate piles will not need to be controlled NO 2, VOC, and CO: –Dryer and mixer have to combust natural gas or Liquid Petroleum Gas (LPG) with good combustion practices SO 2 : –No controls needed, pollutant being emitted in amounts lower than proposed minor NSR threshold 13

What are the steps for this particular permitting process? Reviewing authority: –Determines that AQIA is not needed –Develops draft permit subject to 30-day public comment period –Issues the final permit Permit highlights: –The baghouse will have: Exhaust limits for PM/PM-10, NOx, VOC, CO To comply with an initial compliance test, re-tests every 3 years To be subject to inspection and maintenance program 14

Example 2: What would a minor source PAL permit look like for a lumber mill? Source Information: –See diagram Area information: –All pollutants emitted in minor amounts Permit Information: –Owner requests minor source PALs for PM-10 and VOC –PALs established based on allowable emissions in tpy Waste chips- fired boiler Emit PM-10 Emits PM-10 and VOCs Emits VOCs Emits PM

Reviewing authority: –Performs case-by-case control technology review Determines no controls required for PM and VOCs Determines that AQIA is not needed –Develops draft permit Any modifications allowed if emissions stay within PAL limits Monitoring will be done to assure compliance with the PALs based on: –Actual mass emissions for each 12-month period, rolled monthly –Site-specific emission factors developed through testing Subject to 30-day public comment period –If all conditions are met, permit is issued What are the next steps in this particular permitting process? 16

Source Information: –Comprised of compressors and related auxiliary equipment that emit CO, NO 2, PM-10, SO 2, VOC Permit Information: –EPA develops general permit after public participation process –To qualify for coverage facility must not exceed the following limits: –PM-10 – 10 tpy –SO 2 – 25 tpy –VOC – 25 tpy –CO – 95 tpy –NO 2 – 95 tpy Example 3: What would a general permit look like for a natural gas gathering facility? 17

To comply with PM-10,VOC, SO 2, CO, and NO 2 emissions limits: Burn natural gas in compressors To comply with SO 2 emissions limits: Burn natural gas with a sulfur content less than 154 ppm and conduct periodic testing What are the necessary conditions for this type of general permit? 18

Reviewing authority determines that AQIA is not needed Owner of planned new facility applies for coverage under the general permit –Includes an initial performance test for CO and NO 2 Reviewing authority sends a letter of approval (or disapproval) –If approved, owner posts notice of approval at the site and starts construction of the facility as permitted What are the next steps in this particular permitting process? 19

Source Information: –PTE for VOC is 400 tpy at 24 hrs/day, 7 days/wk (8,760 hrs/yr) –Actual operations are typically 8 hrs/day, 5 days/wk (2,080 hrs/yr) Area information: –Area in attainment for VOC and ozone Permit Information: –Owner requests a synthetic minor permit Plywood Example 4: What would a synthetic minor permit look like for a plywood furniture factory? 20

Source must submit a screening modeling analysis to show that NAAQS are not threatened Reviewing authority develops draft permit –Permit limits operating hours to 5,000 hrs/yr for VOC: –Reduces VOC PTE to 230 tpy –Allows for increased utilization at facility Permit subject to 30-day public comment period prior to issuance Facility must track and record actual hours of operation to show that the 5,000 hrs/yr limit is being met What are the next steps in this particular permitting process? 21

Specifics of the Proposed Tribal Nonattainment Major NSR Rule 22

Which sources would be subject to the proposed Major Nonattainment (NA) NSR rule? New major sources Major modifications 23

What would the proposed NA Major NSR rule require? Lowest Achievable Emission Rate (LAER) Offsets at prescribed ratios Monitoring, recordkeeping, and reporting as needed Public participation, administrative and judicial review Same requirements as current NA Major NSR rules for areas lacking an implementation plan – 40 CFR part 51, Appendix S 24

What are the proposed options for offset waivers? 1.Economic Development Zone (EDZ) option –If sources located in a zone targeted for economic development. Criteria for this waiver: Demonstration that emissions will not interfere with attainment of the applicable NAAQS by the attainment date 2.Appendix S, Paragraph VI option –If sources will comply with implementation plan limits and not interfere with attainment date. Criteria for this waiver: Applicable until attainment date for NAAQS passes. 25

Delegation, Permitting, Public Participation, and Administrative and Judicial Review Provisions for Both of the Proposed Rules 26

What are the proposed delegation requirements? The tribe: –Must be recognized by the Secretary of Interior –Laws must provide adequate authority –Must demonstrate technical capacity and resources EPA retains all enforcement authority Tribes may implement their own program through a Tribal Implementation Plan (TIP) 27

What are the proposed requirements for obtaining a Minor or Major NSR source permit? Source submits a complete application The reviewing authority: –Has 45 days to determine if permit application is complete –Will perform control technology review on a case-by-case basis –May require an Air Quality Analysis Then, the reviewing authority will: –Develop the draft permit –Provide public with a 30-day comment period –Issue final permit if all applicable requirements have been met 28

What are the proposed public participation requirements? Public notice with 30-day public comment period Public notice may be posted at locations such as trading posts, libraries, post offices, etc., as appropriate Opportunity for a public hearing, if sufficient interest Draft permit, application, and justification for permit issuance/denial available for inspection at: –EPA Regional Office –At least one location in the area, for example at the Tribal environmental office 29

What are the options for permit appeals? Any person may appeal the final permit if the: –Person commented on the draft permit; or –Grounds for appeal occurred after public comment period ended Two proposed options for permit appeals: –Administrative – through Environmental Appeals Board (EAB) –Judicial – through Federal Court of Appeals for the tribal area 30

What are the requirements for administrative permit appeals? Appeals must be filed within 30 days after a final permit decision has been issued Upon filing of a petition for review, the permit will be stayed Motion to reconsider the final EAB order must be filed within 10 days If all remedies are exhausted, person may appeal to Federal Court 31

What are the requirements for judicial permit appeals? Permits: –are effective upon issuance –not stayed by filing for an appeal To stay a permit, petition under the Administrative Procedures Act (APA) 5 U.S.C. 705 must be filed Source can have permit revoked after proceeding with construction while appeal was pending 32

Summary of Comments 33

How many comments were received about the rules? 15 industries 1 environmental group 7 states 26 tribes 8 private citizens 57 total comments 34

What were the common comments about the proposed rules? Case-by-case control technology review should not exist or be more standardized Minor NSR thresholds should be increased Modifications should be defined as an increase in actual instead of allowable emissions Minor NSR rule should reflect Minor NSR rules in surrounding states 1234 Permit issuance process is too lengthy 5 35

What is the current schedule for finalizing the rules? Proposal Comment Period Final Rule Published in Federal Register on August 21, 2006 Three Periods: August 21, November 20, 2006; November 20, January 19, 2007; January 19, March 20, 2007 Scheduled to be Published in Federal Register by Spring