1. © Jeffer, Mangels, Butler & Marmaro LLP CAA Title V Regulatory Requirements Malcolm C. Weiss, Esq. (310) 712-6822 mweiss@jmbm.com Jeffer, Mangels, Butler & Marmaro LLP February 28, 2006 3323622 v3

2. © Jeffer, Mangels, Butler & Marmaro LLP Your Rights Under CAA Title V MAJOR GOALS/CONSIDERATIONS  Gain clarity in requirements  Avoid conflicting requirements  Streamline permit  Maximize operational flexibility

3. © Jeffer, Mangels, Butler & Marmaro LLP Your Rights Under CAA Title V (Cont.) MAJOR PROGRAM ELEMENTS  Public notice and comment  No tighter emission standards  5 year term (renewal)  Greater MR&R obligations  Certification requirements

4. © Jeffer, Mangels, Butler & Marmaro LLP Title V Permits Issued California 58 % 12/31/01

5. © Jeffer, Mangels, Butler & Marmaro LLP Title V Permits Issued 12/31/03 California >81 %

6. © Jeffer, Mangels, Butler & Marmaro LLP SCAQMD 78 % Title V Permits Issued

7. © Jeffer, Mangels, Butler & Marmaro LLP Title V Permits Bring It All Together  Relevant emission limits  NSR & PSD (CAA § 110)  NSPS (CAA § 111)  HAPs (CAA § 112)  Monitoring, reporting and record keeping  Compliance plan and schedule

8. © Jeffer, Mangels, Butler & Marmaro LLP Applicability in SoCAB 8 tpy VOC 8 tpy NOx 80 tpy SOx 40 tpy CO 56 tpy PM10 8 tpy Single HAP 20 tpy Combo HAP

9. © Jeffer, Mangels, Butler & Marmaro LLP Attaining Your Permitting Goals  Practical considerations  Administrative considerations  Legal considerations

10. © Jeffer, Mangels, Butler & Marmaro LLP Attaining Your Goals Practical Considerations Public Participation  Draft permit open for public review  Public comments due within 30 days  Hearing may be requested  EPA comments due within 45 days  District weighs comments  Permit may issue after comments considered

11. © Jeffer, Mangels, Butler & Marmaro LLP Sample Public Notice

12. © Jeffer, Mangels, Butler & Marmaro LLP Attaining Your Goals Practical Considerations  Open a dialogue with the District  Meet with District prior to draft permit issuing  Check on public comments  Assist District in responding to comments  Open EPA dialogue, as needed

13. © Jeffer, Mangels, Butler & Marmaro LLP Attaining Your Goals Admin. / Legal Considerations  Public or applicant can challenge issuance of permit to District Hearing Board (30 days)  Public or applicant can challenge issuance of permit to EPA (60 days)  After administrative remedies are exhausted, public or applicant may file suit (90 days)

14. © Jeffer, Mangels, Butler & Marmaro LLP Simplifies Enforcement Since It Is All Together  Clears ambiguities between State and federal requirements  Enhances monitoring and reporting requirements

15. © Jeffer, Mangels, Butler & Marmaro LLP Permit Shield  If  Permittee requests and is granted shield status  Permit states that shield applies  Identifies applicable and non-applicable provisions  Then  Compliance with permit =s compliance with the CAA’s applicable requirements

16. © Jeffer, Mangels, Butler & Marmaro LLP Permit Streamlining  Existing requirements may be redundant or conflicting  Multiple existing applicable requirements may be streamlined into a single set of requirements  Permit terms and conditions must assure compliance

17. © Jeffer, Mangels, Butler & Marmaro LLP Permit Streamlining (Cont.)  Recognizes that some requirements may be subsumed under streamlined requirements  Compliance with the streamlined provision is considered compliance with the subsumed requirements

18. © Jeffer, Mangels, Butler & Marmaro LLP ARB’s Rules Log Database http://www.arb.ca.gov /rldb/rldb.htm

19. © Jeffer, Mangels, Butler & Marmaro LLP EPA White Paper #3 Draft 08/07/00 Design of Flexible Air Permits  Allows specified future operational changes without permit revision  Facilitates opportunities to comply in smarter more efficient ways

20. © Jeffer, Mangels, Butler & Marmaro LLP Title V Permitting Flexibility Where are my rights/obligations listed? Local district program rules Local district regulations EPA guidance documents Federal Regs (40 CFR, Part 70)

21. © Jeffer, Mangels, Butler & Marmaro LLP Key Components for Flexibility  Incorporate anticipated future changes  Must describe changes to be advance approved  Requires advance notice before operational change  MR&R flexible permit must include necessary additional data collection requirements

22. © Jeffer, Mangels, Butler & Marmaro LLP Key Components for Flexibility (Cont)  Examples  Consider  Emissions limit rather than VOC content of coatings  Monthly emissions limit rather than Btu input per hour

23. © Jeffer, Mangels, Butler & Marmaro LLP Your Rights Under Title V MAJOR GOALS  Streamline permit  Gain clarity in requirements  Avoid conflicting requirements  Maximize operational flexibility

24. © Jeffer, Mangels, Butler & Marmaro LLP CAA Title V Regulatory Requirements Malcolm C. Weiss, Esq. (310) 712-6822 mweiss@jmbm.com Jeffer, Mangels, Butler & Marmaro LLP February 28, 2006 3323622 v3