1. The Navajo Nation CAA Permit Program National Tribal Forum on Air Quality May 19-21, 2015 Battle Creek MI

2. Development of Navajo CAA Permit Program 1972-1994 – Prior forms of NNEPA (EPC, EPAdmin) 1994 – Development of Updated Emissions Inventory 1995 – Creation of NNEPA as independent agency 1995 – Enactment of NN CAA 1994/5 – Decision to develop Title V permit program 2000-2004 – VCA with power plants for Part 70 2004 – Navajo CAA Part 70 Operating Permit Regulations approved 2004 – Delegation of Part 71 for all major sources except power plants 2004-2005 – VCA with power plants for Part 71 2006 – Supplemental delegation covering power plants 2008 – First Part 71 permits issued by NNEPA

3. Challenge to Delegated Part 71 Permits Peabody Western Coal Co., CAA Appeal No. 11-01, 15 E.A.D. __ (March 13, 2012), reconsideration denied April 17, 2012 o EAB upheld inclusion of references to Navajo permit provisions in Part 71 permit and upheld use of Navajo procedures to process permit Peabody Western Coal Co. v. EPA, No. 12-73395 (9th Cir. June 6, 2013) o Voluntary dismissal of Peabody’s petition for review (NNEPA identified tribal provisions as not enforceable under CAA) o See also Peabody Western Coal Co. v. EPA, No. 12-1423 (D.C. Cir. March 12, 2013) (case dismissed for lack of venue) Peabody Western Coal Co., CAA Appeal No. 12-01, 15 E.A.D.__ (Jan. 25, 2013) o EAB dismissed facility’s petition for review of NNEPA’s administrative amendment to Part 71 permit, as not having been raised in comment period and as outside the scope of the EAB’s jurisdiction

4. Title V Permit A Title V permit grants a source permission to operate and includes all air pollution requirements that apply to the source, emissions limits, monitoring, record keeping, and reporting requirements in a single document. Major Source Threshold in Attainment Areas State and local permitting authority : Part 70 Permit (40 CFR part 70). EPA issues permit to the sources on Indian land or delegates tribal nation to issue permit : Part 71 permit ( 40 CFR part 71) PollutantAnnual Emissions ( tons/yr) VOC, NOx, SOx, CO, PM10100 Single HAP10 Combination of HAPs25

5. Title V Permit Process Major Source :VOC, NOx, CO, PM10, SOx > 100 tpy Single HAP > 10 tpy and Combination HAP > 25 tpy Source submits part 71 operating permit application package to permitting authority 60 day s Permitting authority determines completeness of application and request for supplement or correct application Permitting authority develops draft permit and statement of basis 30 Day Public Notice (NNEPA Website, Newspapers, Radio, Etc) and Affected State Letter 45 Day EPA Review Process Public comments and requests for public hearing Incorporate applicable comment(s) and issuance of permit (valid for 5 years) Permit Revisions, Permit Renewal

6. Title V Content Title V permits need to be renewed every five years. Facilities submit application for permit renewal not less than 6 but not more than 18 months prior to permit expiration date Incorporates all the PSD, FIP, Acid Rain, NSPS, NESHAP requirements in one document Provides the public with an opportunity to comment on the draft permit NNOPP is processing permit renewal applications for Resolute Currently Aneth Unit, Four Corners Power Plant, Navajo Generating Station, EPNG Leupp, EPNG Window Rock, EPNG Gallup, EPNG White Rock, and a new application from Preferred Sands New rules that become applicable or might become applicable in future, like NESHAP Subpart HH for Oil and Gas Production Facilities, Subpart ZZZZ for engines, NSPS Subpart GG for turbines, MATS and BART for power plants need to be incorporated into the new permit

7. USEPA List of Major Sources on NN - 2004 USEPA List of Major Sources on NN - 2004 SNFacility Permit Expiration Status 1Transwestern Pipeline Klagatoh Sta (AZ)04/24/2005Current 2Transwestern Pipeline Leupp Sta (AZ)04/24/2005Current 3El Paso Natural Gas Navajo Sta (AZ)05/11/2005Current 4El Paso Natural Gas Leupp Sta (AZ)05/11/2005Current 5El Paso Natural Gas Dilkon Sta (AZ)05/11/2005Current 6Conoco Wingate Fractionating Plant (NM)12/21/2005Current 7El Paso Natural Gas Window Rock Sta (AZ)12/25/2005Current 8El Paso Natural Gas White Rock Sta (NM)12/25/2005Current 9El Paso Natural Gas Gallup Sta (NM)12/25/2005Current 10Navajo Generating Station (AZ)06/04/2006Current 11Four Corners Power Plant (NM)06/11/2006Current 12Peabody Western Coal (AZ)09/22/2008Current 13ChevronTexaco Aneth Unit (UT)00/00/2009Renewal by 09/01/2004 14ExxonMobil McElmo Creek Unit (UT)00/00/2009Renewal by 09/01/2004

8. Current List of Major Sources on NN - 2004 Current List of Major Sources on NN - 2004 SNFacility Permit Expiration Status 1Transwestern Pipeline Leupp Sta (AZ)10/12/2015Current 2El Paso Natural Gas Navajo Sta (AZ)05/07/2017Current 3El Paso Natural Gas Leupp Sta (AZ)05/27/2013Renewal 4El Paso Natural Gas Dilkon Sta (AZ)05/07/2017Current 5Conoco Wingate Fractionating Plant (NM)08/03/2014Modification + Ownership 6El Paso Natural Gas Window Rock Sta (AZ)10/07/2013Renewal 7El Paso Natural Gas White Rock Sta (NM)12/30/2013Renewal 8El Paso Natural Gas Gallup Sta (NM)12/30/2013Renewal 9Navajo Generating Station (AZ)07/03/2013Renewal 10Four Corners Power Plant (NM)08/01/2013Renewal 11Peabody Western Coal (AZ)12/07/2014Renewal 12Resolute Aneth Unit (UT)07/30/2012Renewal 13Preffered Sands (AZ)N/ANew

9. Part 71 Permit Application General Information List of Storage Tanks Fuel Usage and Fuel data Air Pollution Units and Control equipment data Emission Unit Description Insignificant Emissions Actual Emission Potential to Emit Calculation Applicability Determination, Regulatory Analysis Compliance Plan and Certification Certification of Truth and Accuracy Modification to Existing Permit

10. Application Checklist NNOPP reviews for completeness of application using its checklist: o Timely Application [40 CFR 71.5(a)(1)(iii)] o Certification by responsible official o Standard Application Form and Identifying Information [40 CFR 71.5(c)] o Description of Source’s Processes [40 CFR 71.5(c)(2)] o Emissions-Related Information (PTE) [40 CFR 71.5(c)(3)] o Air Pollution Control Requirements [40 CFR 71.5(c)(4)] o Other Information and Exemptions [40 CFR 71.5(c)(5,6,7)] o Compliance Plan and Certification [40 CFR 71.5(c)(8,9)] o Acid Rain Forms if applicable [40 CFR 71.5(c)(10)] NNOPP requests for additional information if required

11. Potential To Emit PTE assumes 8,760 hours/year at max rated capacity except for operating hour restriction Criteria air pollutants, HAPs AP 42, manufactures data, stack testing data, engineering judgment, material balance etc., Permit streamlining for emission limits PSD, FIP emission limits Major Source Determination PTE calculation should be included in the final permit and summary of emissions in Statement of Basis (SOB)

12. Sample PTE Calculation

13. TCEQ Flowcharts to Determine Applicability of Rules

14. Statement of Basis SOB is an Engineering Document A.Discussion of the Monitoring and Operational Requirements B.Discussion of Applicability and Exemptions C.Insignificant Activities D.New Emission Units and Control Equipment E.Emission Calculation F.PSD Applicability

15. Title V- 40 CFR Part 71 Permit Content I.Source Identification A.Company name, address, and location, etc B.Owner/ Operator C.Process and Operation of Facility D.SIC Code and AFS Plant Identification Number. II.Requirements of Specific Units A.New Source Performance Standards ( NSPS General Provisions) B.Federal Implementation Plan Requirements ( FIP e.g. NGS, FCPP) C.Acid Rain Requirements D.Operation Flexibility III.Facility Wide or Generic Permit Condition A.Testing Requirements B.Recordkeeping Requirements C.Reporting Requirements D.Protection of Stratospheric Ozone E.Asbestos from Demolition and Renovation F.Compliance Schedule

16. Draft Permit Public Notice Public Notice o Location of the source, permit action, applicable requirements o Deadline for submittal of comments o Permitting authority contact information o Opportunity to be included in NNOPP mailing list 30 day public notice of draft permit o Newspapers, radio announcement, NNOPP website o Mailing a copy of the notice to affected state /local/tribe o Public can view the draft permit at NNOPP office Administrative record of the draft permit

17. Response to Comments & Appeal of Permit Prepare responses to all comments Justify the changes made to permit Legal review of the responses Final Permit Package  Final Permit signed by NNEPA Executive Director  Statement of Basis, Emission Calculation, Public Notice and Response to Comments Appeal of Permit o 30 days after the final permit o Any person who filed comments on the draft permit or at public hearing o Environmental Appeals Board Review

18. NNOPP Permitting Experience Peabody Western Coal Company V/S NNEPA NGS Permit Reopen Public Hearing Request for waiver from annual emission testing due to market condition from EPNG Cancellation of Klagetoh Compressor Station Title V permit due to transition to electrically powered turbines New microturbines replacing older auxiliary engines to avoid major HAP source NESHAP requirements and better reliability Administrative amendments, permit reopening, minor permit modification New regulations, compliance deadline, applicability determination Outreach to local chapters

19. Inspections

20. Preparation Schedule date of Inspection for facility (30 day notice) Records Review -Documents obtained by NNEPA -Deviations Reported -Notifications -Emissions Testing -Deviations Payment of fees Review emissions calculations

21. Inspection Activities Opening Conference Field Inspection Closing Conference

23. Navajo Nation and Tribal Minor New Source Review Registration of sources on the Nation Break down of the registration calculators How to contact sources Next steps o Working with EPA Region in assisting sources registration, and offering owners/operators compliance assistance Emission calculations

25. Important questions to help determine PTE Gasoline Dispensing facility

26. Generators o 2 stroke or 4 stroke o Type of fuel used? Lean burn or rich burn o Emergency use or routine? o Horse Power How much fuel used (gal/hr)? o Hours of operation for 2012 o # of engines Boilers o Capacity (MMBtu) o Fuel type o Fuel usage o How much fuel consumed in 2012 Industrial Boilers & Stationary Internal Combustion Engines