1. Part of NSR Program Applicable to Minor Sources in All Areas of Indian Country Tribal Minor NSR Program

2. 2 Minor Sources Covered Sources Permitting Process Tribal Minor NSR Requirements Summary of Main Requirements Tribal Minor NSR Rule Implementation Presentation Outline

3. 3 Types of NSR Permitting Programs New Source Review (NSR) Program Major NSR in attainment areas (PSD) Major NSR in nonattainment areas (NA NSR) Minor NSR in all areas

4. Generally, a source with emissions below the major source thresholds and above the minor NSR thresholds (per pollutant) – Attainment areas: Major Source Thresholds: 250 or 100 tpy Minor Source Thresholds: 0.1 to 10 tpy – Nonattainment areas Major Source Thresholds: 100 tpy or lower depending on nonattainment severity Minor Source Thresholds: 0.1 to 5 tpy Regulated pollutants NAAQS and other pollutants – NAAQS: Carbon Monoxide (CO), Lead (Pb), Nitrogen Dioxide (NO 2 ), Ozone, Particulate Matter (PM), and Sulfur Dioxide (SO 2 ) – Other Pollutants Include: Sulfuric Acid Mist (H 2 SO 4 ), Hydrogen Sulfide (H 2 S) – Excludes Air Toxics or Hazardous Air Pollutants: Mercury (Hg), Cadmium (Cd), Benzene (C 6 H 6 ), etc. Minor Source in Tribal NSR Rule

5. Applicability: Thresholds Attainment Areas Regulated NSR Pollutant Minor Source Threshold (tpy) Major Source Threshold (tpy) Carbon Monoxide (CO)10 100 or 250 Sulfur Dioxide (SO 2 )10 Ozone - Oxides of Nitrogen (NO x )10 Ozone - Volatile Organic Compounds (VOC)5 PM10 PM-105 PM-2.53 Lead0.1 Fluorides1 Sulfuric Acid Mist2 Hydrogen Sulfide (H 2 S)2 Total Reduced Sulfur (including H 2 S)2 Reduced Sulfur Compounds (including H 2 S)2 Municipal Waste Combustor Emissions2 Municipal Solid Waste Landfills Emissions10 Greenhouse Gases (Combination of gases CO 2, CH 4, N 2 O, HFC, PFC, SF 6 ) May be DevelopedHigher Thresholds 5

6. Applicability: Thresholds Nonattainment Areas Regulated NSR PollutantMinor Source Threshold (tpy)Major Source Threshold (tpy) Sulfur dioxide (SO2)5Marginal: 100 Lead (Pb)0.1Marginal: 100 Carbon monoxide (CO)5Marginal100 Moderate100 Serious50 PM5Marginal100 PM-101Moderate100 PM-2.50.6Serious70 Ozone - Oxides of Nitrogen (NO x )5Marginal100 Moderate100 Serious50 Ozone - Volatile Organic Compounds (VOC) 2 Severe25 Extreme10 6

7. 100 tons/year

8. 250 tons/year

9. 9 3 types of sources are regulated: – True Minor Sources Sources with emissions below major source thresholds and, in the case of this rule, above minor NSR thresholds – Synthetic Minor Sources Major sources who restrict their emissions to become minor sources – Minor Modifications at Major Sources Small modifications (low emissions) at major sources Tribal Minor NSR Program

10. 10 Permitting Process Simplified Start Source not subject to NSR Source owner submits permit application Reviewing authority reviews: Application Proposed/Required Control Technologies Compliance with other applicable requirements Draft permit developed Final permit Issued End EPA issued permits may be appealed through EPA’s Environmental Appeals Board (EAB). After EAB process, permits may be appealed in Federal Court. APPLICABILITY APPLICATION APPEALS Are the source proposed emissions ≥ applicable thresholds or emission rates? (per pollutant, may include fugitives) Is the permit for a new source or a modification to an existing source? Is source in an area that is attaining or nonattaining the NAAQS? No Yes 30 day comment period Public hearing Usually appealed within 30 days of final permit decision After appeal process ends, permit is finally approved or revoked. Is the source exempted?

11. Applicability: Exempted Units & Activities Mobile Sources Ventilating Units for Comfort that do not Exhaust Air Pollutants into the Ambient Air from any Manufacturing or Other Industrial Processes Noncommercial Food Preparation Consumer Use of Office Equipment and Products Bench Scale Laboratory Activities, except for Laboratory Fume Hoods and Vents Internal Combustion Engines used for Landscaping Purposes Consumer Use of Office Equipment and Products

12. 12 To identify the applicable thresholds Attainment or nonattainment data for a location can be obtained at: – The EPA Green Book: Nonattainment Areas for Criteria Pollutants http://www.epa.gov/oaqps001/greenbk/ http://www.epa.gov/oaqps001/greenbk/ EPA regional offices can answer any questions concerning the status of nonattainment areas and their classification – http://www.epa.gov/air/tribal/pdfs/PermitReviewingAuthorities.pdf http://www.epa.gov/air/tribal/pdfs/PermitReviewingAuthorities.pdf Applicability: Source in an Attainment or Nonattainment Area

13. 13 Emissions calculations are based on Potential to Emit - Maximum amount of a pollutant that the source could release into the air in a year (based on the physical and operational design, per pollutant) Includes fugitive emissions if the source is part of the 28 source category list28 source category list – Emissions that enter the atmosphere from a source without first passing through a stack or duct designed to direct or control their flow It can also consider limitations on source operation and emission controls – E.g., Restrictions on hours of operation instead of 8760 hrs/year – E.g., Emissions control through quality controls, product recovery, or operating efficiency Applicability: New Sources

14. 14 Emissions calculations are based on Allowable Emissions – enforceable emission limitations on maximum capacity – Allowable emissions = emissions after the change – emissions before the change (allowable-to-allowable test) – If unit was unpermitted or is added, emission increase based on PTE Includes fugitive emissions if the source is part of the 28 source category list28 source category list Applicability: Modifications Yes Start Are proposed modification emissions ≥ minor NSR thresholds (per pollutant) Modification not subject to Minor NSR Modification is a minor modification and subject to minor NSR No

15. 15 Various methods exist to quantify emissions. For example: – On-site measurement (e.g. stack testing) – Vendor design capacity or rated capacity information – Material (i.e. mass balance) balance calculations – Emission factors - http://www.epa.gov/ttnchie1/ap42/http://www.epa.gov/ttnchie1/ap42/ Tools are available to help source owners/operators calculate these emissions – For example, EPA’s Potential to Emit: A Guide for Small Businesses http://www.epa.gov/ttn/atw/1998sbapptebroc.pdf http://www.epa.gov/ttn/atw/1998sbapptebroc.pdf EPA Regional offices can also provide assistance – http://www.epa.gov/air/tribal/pdfs/PermitReviewingAuthorities.pdf http://www.epa.gov/air/tribal/pdfs/PermitReviewingAuthorities.pdf Applicability: Potential to Emit and Allowables Emissions Calculations

16. 16 1.Identify all sources of emissions. 2.Identify all regulated NSR pollutants that the source emits. 3.Select a method to determine the source emissions. – On-site measurement (e.g. stack testing) – Vendor design capacity or rated capacity information – Material (i.e. mass balance) balance calculations – Emission factors 4.For each regulated NSR pollutant, determine the maximum amount that each production process or piece of equipment in the source can emit in one year. 5.For each regulated NSR pollutant, add the maximum emissions from all production processes/equipment. Applicability: Steps

17. 17 Goal is to calculate the yearly amount of emissions of a pollutant – Great Paint Job, Inc. is a source in an attainment area that has one coating operation booth with a single spray gun. Spray gun operations emit VOCs. – The gun capacity is 5 gallons per hour. – The coating density is 9.85 lbs/gal and contains 75 percent VOC by weight. VOC Content – (9.85 lbs coating/gal)*(0.75 lbs VOC/lb coating) = 7.39 lbs VOC/gal coating Annual Potential Emissions of VOCs – (5 gal coating/hr)*(7.39 lbs VOC/gal of coating) = 36.95 lbs of VOC/hr – (36.95 lbs VOC/hr)*(8,760 hrs/yr) = 323,682.0 lbs of VOC/yr – (323,682 lbs VOC/yr)*(1 ton/2,000 lbs) = 161.84 tons of VOC/yr Excerpt from State of Michigan Potential to Emit Workbook http://www.michigan.gov/documents/deq/deq-ess-caap-pte-workbook-part2_314117_7.pdf Applicability: PTE Calculation Example

18. 18 Permitting Process Simplified Start Source not subject to NSR Source owner submits permit application Reviewing authority reviews: Application Proposed/Required Control Technologies Compliance with other applicable requirements Draft permit developed Final permit Issued End EPA issued permits may be appealed through EPA’s Environmental Appeals Board (EAB). After EAB process, permits may be appealed in Federal Court. APPLICABILITY APPLICATION APPEALS Are the source proposed emissions ≥ applicable thresholds or emission rates? (per pollutant, may include fugitives) Is the permit for a new source or a modification to an existing source? Is source in an area that is attaining or nonattaining the NAAQS? No Yes 30 day comment period Public hearing Usually appealed within 30 days of final permit decision After appeal process ends, permit is finally approved or revoked. Is the source exempted?

19. 19 1.Site-Specific Permit – Case-by-case determination of source emissions limits and control technology requirements, if any are required – Available for new and modified true minor sources & minor modifications at major sources 2.General Permit (GP) – Requirements are determined in advance for a number of similar equipment types or facilities to simplify permit issuance process – Developed after the opportunity of public notice and comment – Available for new and modified true minor sources – Not allowed for sources seeking synthetic minor permits Application: Types of Permit Applications

20. 20 3.Synthetic Minor Permit – Limits PTE for sources that have the capacity to emit pollutants at or above the major source thresholds, but voluntarily accept emissions limitations to operate as minor sources – These permits terminate the policy of using the Title V program to obtain synthetic minor permits for NSR purposes – These permits also terminate the 1999 PTE Transition Policy Sources that would otherwise be major were allowed to obtain synthetic minor status for purposes of the Title V program if their actual emissions remained below 50% of major source threshold Application: Types of Permit Applications (Cont.)

21. 21 Site-specific permits and synthetic minor permits can be used to comply with Maximum Achievable Control Technology (MACT) determinations MACT compliance determined on a case-by-case basis if: – No MACT standard for a source category has been established – There is no EPA-approved program Usually applicable to sources that are major for HAPs and minor for regulated NSR pollutants – A source is major for HAP purposes if its emissions are equal to or higher than 25 tpy for a combination of air toxics or equal to or higher than 10 tpy for one air toxic – Sources will eventually need a Part 71 permit for major HAP emissions Application: Types of Permit Applications (Cont.)

22. 22 Identifying information (name, address, etc.) Description of Source's Processes and Products List of all affected emissions units and its emissions – New Units – PTE, including any restrictions on PTE – Modified Units – allowables both before and after the modification, including any restrictions on emissions Description of any existing air pollution control equipment Description of any limitations on source operation Application: Permit Application Information

23. 23 CAA does not give the Agency explicit authority to charge permit fees for preconstruction permitting Under a delegation agreement or TIP, tribes can charge fees under their own authority Application: Permit Fees

24. 24 By control technology we mean: – Pollution prevention techniques – Add-on pollution control equipment – Design and equipment specifications – Work practices and operational standards Site-Specific Permits – Case-by-case determination General Permits – Determined during the dev. of the GP and after opportunity for public notice & comment Application: Control Technology Review

25. 25 Analysis conducted if reviewing authority is concerned that minor source will cause or contribute to a NAAQS or increment violation In accordance with 40 CFR Part 51, Appendix W We plan to develop guidance on scope of AQIA Application: Air Quality Impact Analysis (AQIA)

26. 26 Monitoring – Sufficient to assure compliance with control technology requirements May include: CEMS, PEMS, CPMS, equipment inspections, mass balances, periodic performance tests and/or emissions factors Recordkeeping – Sufficient to assure compliance with emission limitations – Records should be retained for 5 years Reporting – Annual monitoring reports to show compliance with emission limitations – Prompt reports of deviations from permit requirements Application: Monitoring, Recordkeeping & Reporting Requirements

27. 27 StepsTrue Minor Sources Seeking Site-Specific Permits True Minor Source Seeking General Permits Major Sources Seeking Synthetic Minor Permits or Major Sources Undergoing a Minor Modification Seeking Site-Specific Permits Application Completeness Review 45 days 30 days – Reviewing Authority 15 days - Source 60 days Public Comment Period30 daysNo public comment period, but source should send a copy of the coverage request to the tribe and we will post permit request info. on our website 30 days Public HearingIf sufficient interest Overall Permit Issuance Timeframe No later than 135 days after the application is deemed complete No later than 90 days after coverage request is submitted No later than 1 year after the application is deemed complete Tribal Minor NSR - Application: Permit Issuance Process

28. 28 After a decisions to issue or deny the permit, reviewing authority must notify the applicant in writing If a final permit is issued, we must provide adequate public notice of the decision – Synthetic minor permits and site-specific permits for minor modifications at major sources Copy of decision available at all locations where draft permit was made available – Site-specific permits for true minor sources Decision noticed using one ore more of the additional approaches to public noticing such as websites, newspapers, and mailing lists – General permits for true minor sources Copy of the letter granting request for coverage posted at site Final Permit

29. 29 Permit remains valid as long as source: – Commences construction within 18 months after effective date of permit – Does not discontinue construction for a period of 18 months or more – Completes construction in a reasonable time Permit Term

30. 30 Permitting Process Simplified Start Source not subject to NSR Source owner submits permit application Reviewing authority reviews: Application Proposed/Required Control Technologies Compliance with other applicable requirements Draft permit developed Final permit Issued End EPA issued permits may be appealed through EPA’s Environmental Appeals Board (EAB). After EAB process, permits may be appealed in Federal Court. APPLICABILITY APPLICATION APPEALS Are the source proposed emissions ≥ applicable thresholds or emission rates? (per pollutant, may include fugitives) Is the permit for a new source or a modification to an existing source? Is source in an area that is attaining or nonattaining the NAAQS? No Yes 30 day comment period Public hearing Usually appealed within 30 days of final permit decision After appeal process ends, permit is finally approved or revoked. Is the source exempted?

31. 31 Appeals must be filed to the EPA Environmental Appeals Board (EAB) within 30 days after a final permit decision has been issued Upon filing of a petition for review, the permit will be stayed Motion to reconsider the final EAB order must be filed within 10 days If all remedies are exhausted, person may appeal to Federal Court Appeals: Permit Appeals

32. 32 Program for minor sources in both attainment and nonattainment areas (generally for emissions lower than 100 or 250 tpy and equal to or higher than minor NSR thresholds) Pollutants regulated: NAAQS and other pollutants Main requirement: Case-by-Case Control Technology Review Three types of permit options: site-specific permits, general permits, and synthetic minor permits Key Points to Remember: Minor NSR

33. Tribal Minor NSR Rule Implementation

34. 34 Any permits issued through delegation remain Federal in character and continue to be enforceable by EPA (civilly and criminally) in Federal court This is different from TAS approval under the TAR – Under TAS, tribe at least demonstrates authority to pursue appropriate civil enforcement – EPA will retain primary criminal enforcement for all circumstances in which a tribe is precluded from exercising such authority Delegation of Enforcement Authority to Tribes

35. 35 Proposed that these sources must submit a permit application within 1 year of rule’s effective date Finalized various avenues to allow these sources to retain their synthetic minor status depending on the mechanism used to obtain it Existing synthetic minor sources under Region 10’s Federal Air Rule for Reservations (FARR) or an EPA-approved rule or program limiting PTE – No action needed unless source proposes a modification after rule’s effective date Treatment of Existing Synthetic Minor Sources

36. 36 Existing synthetic minor sources established under a permit pursuant to the Title V part 71 program. Reviewing authority has the discretion to: – Require a permit application within 1 year after August 30, 2011 – Require a permit application under this rule at the same time the source owner applies to renew its part 71 permit, or – Allow source to continue to maintain synthetic minor status through part 71 permit Existing synthetic minor source status established through a mechanism other than those described above (e.g. State permit) – Require a permit application within 1 year after August 30, 2011 Treatment of Existing Synthetic Minor Sources (Cont.)

37. 37 Existing true minor sources do not need to apply for a permit unless they modify their operations after September 2, 2014 (implementation date for true minor sources) Prior to September 2, 2014, existing true minor sources are required to register their air emissions with EPA True minor sources in existence prior to August 30, 2011 (the effective date of the rule) are required to register by March 1, 2013 All other true minor sources need to register up to 90-days after they begin operation Treatment of Existing True Minor Sources

38. 38 Identifying information Description of source processes and products List of all emission units and activities Production rates information Identification and description of any existing air pollution control equipment Existing limitations on source operation Additional requirements: – Report of relocation – Report of change of ownership – Report of closure Registration Requirements

39. 39 August 30, 2011 – Rule’s Effective Date New and modified synthetic minor sources, minor modifications at major sources, and new and modified major sources in nonattainment areas are subject to the rule September 4, 2012 – Synthetic Minor Sources Deadline for most synthetic minor sources to obtain a new permit. Those established: (1) under a permit pursuant to the part 71 program, (2) PTE transition policy or(3) State-permits March 1, 2013 – Registration Deadline for Most True Minor Source Existing true minor sources have until March 1, 2013 to register or 90 days after they begin operation, whichever is later September 2, 2014 – Implementation Deadline for True Minor Sources After these date, new true minor sources and those sources that modify their operations with emissions above the minor NSR thresholds would have to apply for a permit Tribal Minor NSR: Rule Implementation Also the deadline for obtaining new NA NSR permits for those sources that might be operating under State permits

40. Appendix

41. 2828 PSD Source Categories 41 28 source categories 1. Coal cleaning plants (with thermal dryers)15. Coke oven batteries 2. Kraft pulp mills16. Sulfur recovery plants 3. Portland cement plants17. Carbon black plants (furnace process) 4. Primary zinc smelters18. Primary lead smelters 5. Iron and steel mills19. Fuel conversion plants 6. Primary aluminum ore reduction plants20. Sintering plants 7. Primary copper smelters21. Secondary metal production plants 8. Municipal incinerators capable of charging more than 250 tons of refuse per day 22. Chemical process plants 9. Hydrofluoric acid plants23. Petroleum storage and transfer units with a total storage capacity exceeding 300,000 barrels 10. Sulfuric acid plants24. Taconite ore processing plants 11. Nitric acid plants25. Glass fiber processing plants 12. Petroleum refineries26. Charcoal production plants 13. Lime plants27. Fossil fuel-fired steam electric plants of more than 250 million British thermal units (BTU)/hour heat input 14. Phosphate rock processing plants28. Fossil-fuel boilers (or combination thereof) totaling more than 250 million BTU/ hour heat input