1. 1Our Vision – Healthy Kansans living in safe and sustainable environments.1 www.kdheks.gov

2. 2 Air Permitting Issues, Trends and Updates Marian Massoth, P.E. Chief, Air Permitting Section KDHE - Bureau of Air and Radiation March 5, 2008

3. 3Our Vision – Healthy Kansans living in safe and sustainable environments.3 Discussion Topics Permitting Update and Issues State Regulation Update BART Permitting Issues Greenhouse Gas Issues NSPS Update MACT Update Vacated Regulations

4. 4Our Vision – Healthy Kansans living in safe and sustainable environments.4 Construction and Operating Permits/Approvals/Responses 2007# Jan-Mar134 Apr-June150 July-Sept223 Oct-Dec145 Total650

5. 5Our Vision – Healthy Kansans living in safe and sustainable environments.5 Title V Class I Operating Permits YearPermits Issued 200744 200629 200556 200472 2003130 200223

6. 6Our Vision – Healthy Kansans living in safe and sustainable environments.6 Title V Class I Operating Permits Operating Permit Renewals >200 Permit Renewals to be processed in next two years –71 applications in house –70 more applications to be received in 2008 –67 applications to be received in 2009

7. 7Our Vision – Healthy Kansans living in safe and sustainable environments.7 Emission Inventory Class I/II Initiative Facilities With Low Actual Emissions Letter Describes Class II Permits and Potential Advantages Switching to a Class II Is Strictly Voluntary 16 Letters Sent to Facilities Last Year Permitting Staff Working with Facilities during Class I Renewals

8. 8Our Vision – Healthy Kansans living in safe and sustainable environments.8 Emission Inventory Class I/II Initiative, Continued Exceptions – Facilities Required to Obtain Class I Regardless of Emissions –Landfills Subject to NSPS or KAR 28-19-722 –Incinerators Subject to NSPS –Affected Units (Acid Rain Sources) –Most MACT Sources Contact BAR if interested in Class II Permit

9. 9Our Vision – Healthy Kansans living in safe and sustainable environments.9 Class III Air Operating Permits 1995 - KDHE registered non-major facilities under Class III permit program –Facilities deferred by EPA for Title V permit requirements 2005 - EPA excluded several non-major facilities from needing Title V permit 2005 - KDHE eliminated requirement to obtain Class III permit All existing Class III permits are void

10. 10Our Vision – Healthy Kansans living in safe and sustainable environments.10 Ethanol Permits (SIC 2869) Issued in Kansas Year# Permits Issued 1997-2004 (Annual Avg.) 2 2005 11 2006 18 2007 7

11. 11Our Vision – Healthy Kansans living in safe and sustainable environments.11 Kansas Ethanol/Biodiesel Projects

12. 12Our Vision – Healthy Kansans living in safe and sustainable environments.12 Ethanol Permits EPA Region VII Guidance EPA Manual –Environmental regulatory rules –Requirements for construction and operation of ethanol production facilities –Agricultural Website: http://www.epa.gov/region07/priorities/agriculture/

13. 13Our Vision – Healthy Kansans living in safe and sustainable environments.13 KDHE Regulation Update Amend 200, 300 & 500 Series State and federal definitions consistent with industry use Adds definitions for updated permitting and public notice regulations Updates definitions of permits and approvals Adds new Ethanol PSD with 200-500 series (definitions and permitting)

14. 14Our Vision – Healthy Kansans living in safe and sustainable environments.14 KDHE Regulation Update Amend 200, 300 & 500 Series 200 Series – Definition Update 204 - Public Notice 300 Series – Construction Permits, Approvals and Registrations 500 Series – Operating Permits and Approvals Proposed rules in KS Register this fall

15. 15Our Vision – Healthy Kansans living in safe and sustainable environments.15 Amend 28-19-300 Series Construction Permits, Approvals, and Registrations Re-focus permit program on environmental benefits Build more efficient permit system Spend less time on insignificant sources

16. 16Our Vision – Healthy Kansans living in safe and sustainable environments.16 Amend 28-19-300 Series, Continued Most preconstruction documents that are now called “Permits” will be approvals. Establishes small–source registrations Permits – Title V operating, PSD, Nonattainment and Acid Rain (federal)

17. 17Our Vision – Healthy Kansans living in safe and sustainable environments.17 New and Amend 28-19-500 Series Clarifies Operating Requirements –500: Applicability –501: Emissions limitations –502: Identical procedural requirements (parallels construction process) Class I Permits Class II Approvals

18. 18Our Vision – Healthy Kansans living in safe and sustainable environments.18 Amend 28-19-510 thru 513 Class I Operating Permits –510 - Application timetable –511 - Application contents –513 – Administrative permit amendments procedure

19. 19Our Vision – Healthy Kansans living in safe and sustainable environments.19 KDHE Regulation Update Vacatur of CAMR KDHE adopted Clean Air Mercury Rules 2007 CAMR vacated Feb., 2008 by D.C. U.S. Court of Appeals EPA and States awaiting final ruling (mandate) to determine next steps Most States agree Hg monitoring installation should proceed

20. 20Our Vision – Healthy Kansans living in safe and sustainable environments.20 KDHE Regulation Update Vacatur of CAMR, Continued EPA may be required to write MACT –How and When?? Kansas Legislature –SB327 would require 80% reduction US Senate –Sen. Carper introduced Clean Air Planning Act - 90% Hg reduction by 2015 carper.senate.gov/press/record.cfm?id=292972

21. 21Our Vision – Healthy Kansans living in safe and sustainable environments.21 Greenhouse Gas (GHG) Issues In Kansas May, 2007, Kansas joins The Climate Registry with 30 other states Beginning October, 2007 –KDHE estimates potential GHG emissions for new construction –GHG paragraph in all permit cover letters to voluntarily reduce GHG

22. 22Our Vision – Healthy Kansans living in safe and sustainable environments.22 Greenhouse Gas (GHG) Paragraph with Permits In October 2007 KDHE began addressing green house gas (GHG) emissions in Kansas to protect the health and environment of Kansans. To accomplish this task, KDHE will engage industries and stakeholders to establish goals for reducing GHG emissions and strategies to achieve them. Therefore, in accordance with K.S.A. 65-3005(j), KDHE is seeking your cooperation to voluntarily implement strategies, including the development and use of innovative technologies, market-based principles and other private initiatives to reduce or prevent GHG emissions.

23. 23Our Vision – Healthy Kansans living in safe and sustainable environments.23 Greenhouse Gas (GHG) Issues In Nearby States 2000 - Nebraska - Enacted legislation – Linked agricultural policy with GHG reduction 2006 –Missouri and Iowa join Midwest Greenhouse Gas Registry 2007 - Iowa requires construction permit applications to contain potential GHG emissions 2007 Oklahoma joins The Climate Registry

24. 24Our Vision – Healthy Kansans living in safe and sustainable environments.24 TCR Members as of February, 2008

25. 25Our Vision – Healthy Kansans living in safe and sustainable environments.25 EPA GHG Information EPA website lists regional efforts to address Climate Change –Develop GHG inventories and registries –Track renewable energy generation and sales; –Implement coordinated GHG reduction strategies –http://www.epa.gov/climatechange/index.htmlhttp://www.epa.gov/climatechange/index.html

26. 26Our Vision – Healthy Kansans living in safe and sustainable environments.26 BART Permitting Issues Regional Haze Agreements Will Require Controls Control Projects May Require Construction Permits, Including PSD Permits Regional Haze Agreement Control Requirements Will Be Incorporated in Title V Permits

27. 27Our Vision – Healthy Kansans living in safe and sustainable environments.27 New Source Performance Standards (NSPS) Section 111 of the Clean Air Act, New Stationary Sources Performance Standards Requires EPA to establish emission standards 88 standards and associated test methods since 1971

28. 28Our Vision – Healthy Kansans living in safe and sustainable environments.28 Maximum Achievable Control Technology (MACT) Information Websites: EPA Policy and Guidance http://www.epa.gov/ttn/oarpg/t3fs.html Revisions/Amendments www.ecfr.gpoaccess.gov Regulations: www.gpoaccess.gov/fr/index.html

29. 29Our Vision – Healthy Kansans living in safe and sustainable environments.29 MACT Recent and Upcoming Compliance Dates for Kansas Major Sources Misc. Metal Part and Products Surface Coating (1/2/07) Organic Liquids Distribution (2/3/07) Plastic Parts and Products Surface Coating (4/19/07)

30. 30Our Vision – Healthy Kansans living in safe and sustainable environments.30 MACT Recent and Upcoming Compliance Dates for Kansas Major Sources Con’t. Auto and Light Duty Trucks (4/26/07) Reciprocating Internal Combustion Engines (3/18/08) Misc. Organic Chemical Production and Processes (5/10/08)

31. 31Our Vision – Healthy Kansans living in safe and sustainable environments.31 MACT Recent and Upcoming Compliance Dates for Kansas Area Sources Oil and Natural Gas Production (1/3/07) Lead Acid Battery Manufacturing (7/16/08) Hospital Sterilizers (12/29/08) Iron and Steel Foundries Area Sources (1/2/09)

32. 32Our Vision – Healthy Kansans living in safe and sustainable environments.32 MACT Recent and Upcoming Compliance Dates for Kansas Area Sources Con’t. Gasoline Distribution (1/10/11) Gasoline Dispensing Facilities (1/10/11) Paint Stripping and Miscellaneous Surface Coating Operations (1/10/11)

33. 33Our Vision – Healthy Kansans living in safe and sustainable environments.33 MACT Recent and Upcoming Compliance Dates for Kansas Area Sources Con’t. Iron and Steel Foundries Area Sources (1/2/09) Gasoline Distribution (1/10/11) Gasoline Dispensing Facilities (1/10/11) Paint Stripping and Miscellaneous Surface Coating Operations (1/10/11)

34. 34Our Vision – Healthy Kansans living in safe and sustainable environments.34 Area Source Categories with Promulgation Deadlines Proposed - between now and 6/15/09 Fabricated Metal Products (10 categories) Ag. Chemicals & Pesticides Manufacturing Asphalt Processing & Asphalt Roofing Manufacturing Cyclic Crude and Intermediate Production

35. 35Our Vision – Healthy Kansans living in safe and sustainable environments.35 Area Source Categories with Promulgation Deadlines Proposed - between now and 6/15/09 Ferroalloys Production Chemical Manufacturing (4 categories) Prepared Feeds Materials Boilers

36. 36Our Vision – Healthy Kansans living in safe and sustainable environments.36 Area Source Categories with Promulgation Deadlines Proposed - between now and 6/15/09 Plastic Materials and Resins Manufacturing Synthetic Rubber Brick and Structural Clay Products Chemical Preparation

37. 37Our Vision – Healthy Kansans living in safe and sustainable environments.37 Area Source Categories with Promulgation Deadlines Proposed - between now and 6/15/09 Copper Foundries Nonferrous Foundries Paint and allied products Sewage Sludge Incineration Pharmaceutical Production

38. 38Our Vision – Healthy Kansans living in safe and sustainable environments.38 Other MACT Developments Residual Risk Amendments for each Standard –Subpart T, Halogenated Solvent issued 5/3/07 Exempts aerospace Affects area and major sources 3 year compliance period http://www.epa.gov/ttn/atw/rrisk/rtrpg.html MACT Contact: Mary Mahaffey, 785-296-1548

39. 39Our Vision – Healthy Kansans living in safe and sustainable environments.39 Recent Vacaturs Boiler MACT Vacated by DC Court of Appeals on July 30, 2007 Brick and Clay Vacated by DC Court of Appeals on July 30, 2007

40. Our Vision – Healthy Kansans living in safe and sustainable environments.40 Marian Massoth Bureau of Air and Radiation Kansas Department of Health & Environment Curtis State Office Building 1000 SW Jackson, Suite 310 Topeka, Kansas 66612 www.kdheks.gov voice 785.296.0616 fax 785.291.3953 mmassoth@kdhe.state.ks.us

41. 41Our Vision – Healthy Kansans living in safe and sustainable environments.41 www.kdheks.gov.