1. EPA - New Source Review Proposed NSR Rules for Indian Country Genevieve Damico, EPA Region 5 Presentation drafted by: Raj Rao, Jessica Montanez, Wendy Namisnik OAQPS, USEPA

2. 2 Here’s what we will cover  Purpose of NSR rules for Indian country  Highlights of the proposed minor NSR rule  Examples of minor NSR permitting  Delegation, public participation, and administrative and judicial review  The proposed rules

3. 3 Why do we need Federal NSR rules in Indian country?  Fill existing regulatory NSR program gaps in Indian country; currently no programs are in place for:  Minor NSR  Nonattainment major NSR  Provide a cost-effective and timely permitting mechanism  Level the economic playing field with States

4. 4 How will Tribes benefit from the proposed Federal NSR rules?  Protect Tribal sovereignty from State incursion  Provide equal opportunity for economic development  Establish clarity of requirements for sources  Create a timely mechanism for obtaining permits  Ensure that resources are protected through controlled growth  Build Tribal capacity  Supply potential model for Tribal Implementation Plan (TIP) development See appendix A for information on SIPs, TIPs, and FIPs  Allows tribes to administer the program through delegation

5. 5 Which sources in Indian Country will be affected by the proposed Federal NSR rules?  New minor sources  New major sources locating in nonattainment areas of Indian Country  Existing minor sources making modifications  Existing major sources in nonattainment areas making minor or major modifications  Major sources seeking to limit their potential to emit (PTE) and become synthetic minor sources

6. 6 Specifics of the Minor NSR rule

7. 7 What does the minor NSR rule apply to?  New minor sources Sources with PTE equal to or above the minor NSR thresholds.Sources with PTE equal to or above the minor NSR thresholds.  Modifications at existing minor/major sources When there is a physical or operational change at an existing source that is not subject to major NSR.When there is a physical or operational change at an existing source that is not subject to major NSR. Emissions increase will be calculated based on allowable emissions (i.e. “Allowable-to-allowable emissions test”). See appendix B for a definition of allowable emissions. Emissions increase will be calculated based on allowable emissions (i.e. “Allowable-to-allowable emissions test”). See appendix B for a definition of allowable emissions.  Synthetic minor sources, including Hazardous Air Pollutants (HAP) sources Major sources seeking to limit potential to emit below the major source thresholdMajor sources seeking to limit potential to emit below the major source threshold Proposed rule includes flowcharts to help!

8. 8 Minor NSR thresholds  Thresholds: cutoffs below which minor NSR does not apply to a new minor source or modification  Thresholds are lower in nonattainment areas. For example:  Ozone attainment areas – 10 tpy NOx  Ozone nonattainment areas – 5 tpy NOx  An analysis of stationary sources across the country to evaluate the percentage of sources that would be exempt from this rules if the thresholds applied nationally showed that:  Sources and modifications with emissions below the thresholds are inconsequential to attainment and maintenance of the NAAQS

9. 9 Minor NSR thresholds (continued) Regulated NSR Pollutant For Nonattainment Areas (tpy) For Attainment Areas (tpy) Carbon monoxide (CO)510 Oxides of nitrogen (NO x )5; (0 for Extreme Ozone Areas)10 Sulfur dioxide (SO2)510 Volatile organic compounds (VOC) 2; ( 0 for Extreme Ozone Areas) 5 PM510 PM-1015 PM-2.50.63 Lead0.1 FluoridesNA1 Sulfuric acid mistNA2 Hydrogen sulfide (H 2 S)NA2 Total reduced sulfur (including H 2 S)NA2 Reduced sulfur compounds (including H 2 S)NA2 Municipal waste combustor emissionsNA2 Municipal solid waste landfills emissionsNA10

10. What are the minor NSR rule requirements?  Main requirements are:  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  Tribes may request delegation

11. 11 Minor NSR permits  Typical/common type of permit – individual emissions units are issued enforceable allowable emissions limits (tpy)  Source-wide permit – a Plantwide Applicability Limitation (PAL) is issued for the entire source, regardless of the number of emissions units  Beneficial for sources needing flexibility to make rapid changes  Requires increased monitoring  General permit - a standard permit created by the permitting agency for common source categories, i.e. gas stations, dry cleaners, etc.  Synthetic minor source permits – major sources seeking to limit potential to emit to become synthetic minor sources

12. 12 Let’s apply what we’ve learned about minor NSR with some practical examples

13. 13 Example 1 Asphalt Batch Plant  Source information:  Process capacity of 300 tons per hour  Dryer burner capacity of 60 MMBtu per hour  Aggregate piles and conveyors  Roadway dust  Area is in attainment for all pollutants  Source owner applies for a typical/common permit http://conquip.us/html/asphalt_plant_pictures.html

14. 14 Asphalt Plant – Review  Case-by-case control technology review:  PM/PM 10 : Cyclone and baghouse for dryer and capture system on screens/bins/mixerCyclone and baghouse for dryer and capture system on screens/bins/mixer Dust suppressant for roadwaysDust suppressant for roadways Shrouding for conveyor transfer pointsShrouding for conveyor transfer points No control for aggregate pilesNo control for aggregate piles  NOx, VOC, and CO:  Combustion of natural gas or Liquid Petroleum Gas (LPG) with good combustion practices  SO 2 :  Less than minor NSR threshold – not subject to the rule  No AQIA required – NAAQS not threatened Cyclones – reduce the inlet loading of particulate matter to downstream collection devices, by removing larger abrasive particles Baghouses - An air pollution control device used to trap particles by filtering gas streams through large cloth or fiberglass bags LPG - Propane, butane, or propane-butane mixtures derived from crude oil refining or natural gas fractionation Shrouding – a screen or cover that reduces the amount of particulate matter that flies away at transfer points

15. 15 Asphalt Plant – Permit  Emission limits placed on baghouse exhaust for PM, PM 10, NOx, VOC, CO  Initial compliance test, with re-tests every 3 years  Baghouse inspection and maintenance program

16. 16 Example 2 Minor Source PAL Permit for a Lumber Mill  Existing operation consists of four emissions units: sawmill, planing machine, wood waste-fired boiler, and drying kiln  Existing operation qualifies as a minor source for all pollutants emitted  Plant owner intends to get into the millwork business in the future and add new emissions units http://plantsci.sdstate.edu/woodardh/Soils_and_Ag/Black_Hills/

17. 17 Lumber Mill PAL – Review  Owner requests minor source PALs for PM 10 and VOC to provide operational flexibility  Reviewing authority performs control technology review for emissions units that emit these pollutants:  PM 10 – sawmill, planer, boiler  VOC – kiln, boiler  No AQIA required

18. 18 Lumber Mill PAL – Permit  Permit issued after public participation:  Minor source PALs (allowable tpy limits) based on the short-term limits at 24 hrs/day, 365 days/yr  Monitoring to assure compliance with the PALs Actual mass emissions Actual mass emissions For each 12-month period, rolled monthly For each 12-month period, rolled monthly Based on site-specific emission factors developed through testing Based on site-specific emission factors developed through testing  Owner may make any modifications at the source as long as total emissions stay within the PAL limits

19. 19 Example 3 General Permit for a Natural Gas Gathering Facility  EPA Regional Office develops a general permit, going through public participation  To qualify for coverage, a new natural gas gathering facility may not exceed:  PM 10 – 10 tpy  SO 2 – 25 tpy  VOC – 25 tpy  CO – 95 tpy  NOx – 95 tpy http://www.aet.com/hugoton.htm

20. 20 General Permit – Requirements  Burn natural gas to comply for PM 10,VOC, SO 2, CO, and NOx  For SO 2, natural gas must have sulfur content less than 154 ppm (w/ periodic testing)  For CO and NOx, perform an initial performance test

21. 21 General Permit – Coverage  Owner of planned new facility applies for general permit  Reviewing authority sends a letter of approval (or disapproval)  Owner constructs facility as permitted and posts notice of approval at the site

22. 22 Example 4 Synthetic Minor Permit for a Wood Furniture Factory  Furniture manufacturing factory conducts surface-coating operations in an ozone attainment area  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) http://www.essexcoatings.com/

23. 23 Synthetic Minor Furniture Factory – Permit  Owner requests a synthetic minor permit for VOC  Permit limits operating hours to 5,000 hrs/yr:  Reduces PTE to 230 tpy  Allows for increased utilization at the facility  Monitoring - facility must track and record actual hours of operation  Permit issued after public participation

24. 24 Delegation, Public Participation, and Administrative and Judicial Review for both rules

25. 25 Delegation  We encourage you to seek delegation of authority to assist EPA with administration of both rules  To apply for delegation:  Your Tribe must be recognized by the Secretary of Interior  Your Tribal laws must provide adequate authority  You must demonstrate technical capacity and resources  EPA retains enforcement authority  If your Tribe develops a TIP, it may use these rules as models

26. 26 Public participation  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  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

27. 27 Administrative and judicial review  You may appeal the final permit if:  You commented on the draft permit; or  The grounds for appeal occurred after the public comment period ended  First, you must appeal to EPA’s Environmental Appeals Board (EAB)  If denied by EAB, you may appeal to Federal Court

28. 28 What kind of comments did USEPA receive

29. 29 Who Commented 26 Tribe/Tribal group comments (T) 15 industry/industrial group comments (I) 8 private citizen comments 7 State/local air agency comments (S/L) 1 environmental group comment (E) 57 total comments

30. 30 What were some of the comments What were some of the comments  The minor NSR rule should reflect the minor NSR rules in the surrounding States to “level the playing field.”  Modifications should be defined as an increase in actual instead of allowable emissions Minor NSR thresholds should be increased

31. 31 What were some of the comments  Comments on proposed case-by-case Control Technology Review ranged from support for the proposal to opposition to any control technology requirement. Several commenters prefer a more definitive system with either standard requirements for specific types of sources (presumptive BACT for oil & gas production sites mentioned frequently by industry commenters) or a standardized process for determining control requirements.

32. 32 What were some of the comments  Permit issuance process is too lengthy; streamlined process needs to be developed.  Not enough consultation with stakeholders by EPA in developing these rules. Tribes and industry want to be more involved and have more input in the process.  The oil & gas industry commented that the proposed minor NSR rule will be too burdensome (and needs to be like surrounding States).  The oil & gas industry commented that the proposed minor NSR rule will be too burdensome (and needs to be like surrounding States).  EPA needs to have the resources in place immediately to implement the program without delaying projects.  EPA needs to have the resources in place immediately to implement the program without delaying projects.

33. 33 Appendix A SIPs, TIPs, and FIPs  Implementation Plans – a set of programs and regulations developed by the appropriate regulatory agency in order to assure that the NAAQS are attained and maintained. These plans can be developed by the state, tribe, or EPA, depending on which has jurisdiction in a particular area. For that reason, there are three kinds of implementation plans:  State Implementation Plan (SIP) – plan that reflects each state’s particular needs and air quality issues, but that must meet certain federal standards. The EPA’s requirements for SIPs are laid out in 40 CFR part 51. If a state fails to submit an approvable SIP within the schedules provided in the CAA, sanctions are imposed on the state.  Tribal Implementation Plan (TIP) - a tribe’s plan for improving for maintaining or improving its air quality. A TIP can be designed to respond to the tribe’s particular air quality goals and values, and can be changed over time to reflect the changing air quality concerns of the tribe. Section 301(d) of the CAA as amended in 1990 and as implemented through the Tribal Air Rule (TAR), provides for tribal implementation of CAA programs.  Federal Implementation Plan (FIP) – plan that assures that the NAAQS are attained and maintained when a state fails to or a tribe elects not to develop their implementation plan respectively. EPA has the responsibility under the CAA to ensure that public health and the environment are protected.

34. 34 Appendix B Allowable Emissions Allowable emissions – the emissions rate calculated using the maximum rated capacity of the source (unless the source is subject to federally enforceable limits which restrict the operating rate, or hours of operation, or both) and the most stringent of the following: –Applicable standards as set forth in 40CFR parts 60 and 61; –Any applicable SIP or TIP emissions limitation, including those with a future compliance date; or –The emissions rate specified as a federally enforceable permit condition, including those with a future compliance date.