1. Innovative Environmental Policy Air Permits David Neleigh Chief, Air Permits Section EPA Region 6 May 10, 2006

2. Agenda CenSARA Air Permitting Initiative Electronic Permitting Project Flexible Permitting Rule

3. Central States Air Resource Agencies/USEPA Air Permits Streamlining Initiative

4. CenSARA Air Permits Streamlining Initiative AR, IA, KS, LA, MN, MO, NE, OK, TX Mission Statement: “What can we do to improve the identification & information sharing of air permitting tools and streamlining strategies among the CenSARA states?”

5. Process: 2005: Provide one-year joint assignment to respond to CenSARA:  Benchmark and profile the nine CenSARA states’ air permitting processes and streamlining strategies.  Conduct CenSARA Air Permits Streamlining Workshop for CenSARA states.  Implement opportunities with CenSARA and EPA (Office of Air & Radiation, Office of Policy, Economics, & Innovation, R5, R6, and R7). CenSARA Air Permits Streamlining Initiative AR, IA, KS, LA, MN, MO, NE, OK, TX

6. Initial Benchmark: State timelines for permit processing vary – in some cases dramatically. CenSARA Air Permits Streamlining Initiative AR, IA, KS, LA, MN, MO, NE, OK, TX

7. Three Major Streamlining Strategies Found: 1.General Permits/Permits By Rule 2.Electronic Permitting Tools 3.Process Improvement Models (Six Sigma, Kaizen) CenSARA Air Permits Streamlining Initiative AR, IA, KS, LA, MN, MO, NE, OK, TX

8. General Permits/Permits By Rule: Aligns state resources with more complex major source permits (facilities with higher potential for environmental impact). Reduce mandatory reporting and paperwork for lower emitting sources. Prioritize air permit program expenditures with air quality protection and timeliness of responses. CenSARA Air Permits Streamlining Initiative AR, IA, KS, LA, MN, MO, NE, OK, TX

9. Electronic Permitting Tools: Electronic forms and submittals for faster and more consistent data exchange. Online permit decision support systems to improve applicable requirement determinations for both applicant and reviewer. GIS applications on permitted facility and area for faster permit reviews and verification. Online and searchable permit databases to improve information sharing with the public. CenSARA Air Permits Streamlining Initiative AR, IA, KS, LA, MN, MO, NE, OK, TX

10. Process Improvement Models – LEAN Permitting (Six Sigma, Kaizen): Enhancement of permits assistance information (pre- application meetings, online forms and instructions, permit issuance commitments, training, site visits). Program workload analysis & reduction in permit processing idle time (modeling/enforcement coordination, transparent tracking systems on application receipt to issuance). CenSARA Air Permits Streamlining Initiative AR, IA, KS, LA, MN, MO, NE, OK, TX

11. Future Actions: Collaboration with Industry, States, and EPA on tools for General Permits/Permits By Rule, Electronic Permitting, and Process Improvement Models (Six Sigma, Kaizen) for future enhancements to the CenSARA states. CenSARA Air Permits Streamlining Initiative AR, IA, KS, LA, MN, MO, NE, OK, TX

12. Electronic Permitting Project Oil and Gas Permits: Over 43,000 facilities 70% of all facilities which are permitted or otherwise regulated Combined web-based notice of coverage for both air and water permits Web-based self-certification of compliance

13. Electronic Permitting Project Targeted Improvements: Reduced processing time Greatly improved record Reduction in air emissions and threat of releases by aggressive outreach and compliance assistance

14. What is Flexible Air Permitting? Enables a facility to make certain types of changes without requiring additional case-by- case permitting or approval, provided the change meets criteria outlined in the permit. Changes can include:  Changes to a source’s method of operation  Addition or modification of equipment  Changes in raw materials  Changes to pollution control equipment  Changes to emission factors or monitoring parameters.

15. Flexible Air Permitting History and Context Major EPA Evaluation of Implementation Experience with 6 Pilot Permits in 2001-2002 EPA continuing to pursue pilot projects with focus on Performance Track facilities.  3M Nevada, MO  3M Brownwood, TX  Baxter Mountain Home, AR

16. Flexible Air Permitting What is EPA Planning to Do Next? Pursue modifications to Parts 70/71 and 51/52 through rulemaking to support flexible permitting concepts developed through pilots. Draft flexible permitting rule undergoing internal EPA review, to be followed by OMB review and proposal. Release of proposed flexible permitting rule targeted for Summer or Fall 2006. EPA is soliciting State input.

17. Air Permitting Innovations Conclusions Innovation done right Strong accountability while providing operational flexibility Encourages pollution prevention and emissions reduction Reduced administrative burden over the long term for permitting authorities and regulated entities Fulfills Congressional mandate