1. Navajo Air Quality Control Program Navajo Nation Environmental Protection Agency National Tribal Forum June 3, 2009

2. NAVAJO NATION ENVIRONMENTAL PROTECTION AGENCY HISTORY: The Navajo Environmental Protection Commission was established in 1972. In 1995, legislation made the Navajo Nation Environmental Protection Agency (NNEPA) a separate regulatory branch of the Navajo Nation government. NNEPA MISSION: With respect for Dine' values, protect, preserve, and enhance public health, welfare and the environment for present and future generations by developing, implementing, and enforcing strong environmental laws; to foster public awareness and cooperation through education and motivation.

3. NAVAJO NATION ACTS AND REGULATIONS Acts/ RegulationsDate PassedDate Amended Navajo Nation Environmental Policy Act April 25, 1995 Navajo Nation Air Pollution Control and Prevention Act July 20, 1995April 22, 2004 Navajo Nation Operating Permit Rule April 13, 2000July 8, 2004 Plan of OperationMay 22, 2001 Navajo Nation Uniform Regulations September 5, 2001 Navajo Nation Acid Deposition and Control Regulations July 8, 2004

4. NAVAJO AIR QUALITY CONTROL PROGRAM ADMINSTRATION SECTION Responsible for administrative, personnel and financial matters. REGULATION DEVELOPMENT Completed rule making process for NNARR, NNOPR, NNCAA. Proposed Open Burning, working on Asbestos, developed Activity Permit Application for new projects in Navajo Nation. AIR MONITORING SECTION Section 105 Grant approval in 1999, continues to operate under this Grant. Five Air Monitoring Stations located within the Navajo Nation. PERMIT SECTION Write/Review Title V permit, Part 71 fee evaluation, Emission Inventory, AFS ( Air Facility Subsystem). Identify and analyze legal and regulatory requirements, including NSR, PSD, Acid Rain, BART, NESHAP, MACT,NSPS. Respond to information inquiries from the public, regulated sources, and government officials. Assist Compliance section in conducting inspections, Title V permit monitoring, reporting and record keeping requirements. COMPLIANCE SECTION Review excess emission reports, annual compliance certifications, emission inventory reported by the major sources. Audit emission testing done by the sources for e.g., RATAs. Conduct annual Compliance Evaluation Inspection to all the major sources ( Title V)within the Navajo Nation. Reports EPA any period of non- compliance by the major sources in accordance to enforcement rights delegated by U.S. EPA

5. NAVAJO EPA Air Quality/Permit Program Organization Chart NAVAJO EPA Executive Director AIR & TOXICS Department Manager AIR QUALITY CONTROL PROGRAM Program Supervisor Section 105 Grant Program Senior Environmental Specialist ( Air Monitoring) Senior Environmental Specialist ( Outreach, Open Burn, New Regulations) Environmental Specialist ( Air Monitoring, Title V Permit, Outreach) Environmental Technician Office Specialist Operating Permit Program Environmental Engineer (Title V Permit Writer/Reviewer) Environmental Specialist (Compliance Evaluation Inspector) Information TechnicianOffice Specialist Accountant

6. Clean Air Act Amended :1990 Title I - Air Pollution Prevention and Control Part D - Plan Requirements for Nonattainment Areas Part C - Prevention of Significant Deterioration of Air Quality Part B - Ozone Protection (replaced by Title VI) Part A - Air Quality and Emission Limitations Title II - Emission Standards for Moving Sources Part A - Motor Vehicle Emission and Fuel Standards Part B - Aircraft Emission Standards Part C - Clean Fuel Vehicles Title III - General Title IV - Acid Deposition Control Title V - Permits Title VI – Stratospheric Ozone Protection

7. PART 71 OPERATING PERMIT PROGRAM DELEGATION OF AUTHORITY U.S. Environmental Protection Agency for the first time delegated authority to a tribe to administer the Federal Title V operating permit program (Part 71). In October 2004 EPA Region 9 and Navajo Nation EPA entered into a Delegation of Authority Agreement and again in March with a supplemental agreement. Part 71 Delegation Agreement : – To administer and enforce a delegated Clean Air Act (“CAA”) Title V Operating Permit Program – Delegation allows NNEPA to issue Title V air permits to 14 facilities on Navajo Nation. – (“TAS”) determination. – Collection of Part 71 permit fees from the Title V facilities.

8. NAVAJO NATION TREATMENT AS STATE (TAS) Eligibility Requirements [ “CAA” section 301(d) and 40 CFR §49.6 Tribal Authority Rule (TAR)]: – The applicant is an Indian tribe recognized by the Secretary of the Interior. – The Indian tribe has a governing body carrying out substantial governmental duties and functions. – The functions to be exercised by the Indian tribe pertain to the management and protection of air resources within the exterior boundaries of the reservation or other areas within the tribe’s jurisdiction. – Indian tribe is reasonably expected to be capable, in the EPA Regional Administrator's judgment, of carrying out the functions to be exercised in a manner consistent with the terms and purposes of the Clean Air Act and all applicable regulations.

9. Fourteen Major Source Facilities on Navajo Nation El Paso Natural Gas Compressor stations at: 1.Leupp 2.Dilkon 3.Navajo (Cornfields, AZ) 4.Window Rock 5.Gallup (Tohatchi, NM) 6.White Rock Transwestern Pipeline Compressor Stations at: 1.Leupp 2.Klagetoh Peabody Western Coal Company ConocoPhillips Wingate Fractionating Plant Resolute Aneth Unit 1 Resolute Aneth Unit 2 ( EPA R9 is drafting PSD permit) APS Four Corners Steam Electric Station SRP Navajo Generating Station

11. Supplemental Delegation Agreement Power Plants On March 21, 2006 U.S.EPA and NNEPA agreed to enter into Supplemental Delegation Agreement to administer the two Power Plants (FCPP, NGS). On May 18, 2005, NNEPA and the participants of the Power Plants entered into Voluntary Compliance Agreement (VCA). VCA resolves the dispute as to Navajo Nation’s jurisdictional issues. The Operating Agents ( FCPP, NGS) agreed to comply with the provisions of the Navajo Nation’s law.

12. EPA Proposed Federal Implementation Plan (FIP) EPA promulgated a Federal Implementation Plan (FIP) for FCPP(40 CFR 49.23) on May 7,2007. FIP is proposed to establish federally enforceable emissions limitations for sulfur dioxide, nitrogen oxides, total particulate matter, and opacity, and a requirement for control measures for dust. Existing pollution control equipment at FCPP includes baghouses and scrubbers for SO 2 control and specific burners designed for NO x control. Recently EPA voluntarily vacated the fugitive dust requirement codified at 40 CFR 49.23(d)(3). On September 11, 2006 EPA proposed NGS FIP ( 40 CFR 49.20). This rule has not been promulgated. Existing pollution control equipment at NGS includes electrostatic precipitators for particulate matter removal and specific burners designed for NO x control

13. Air Permits Construction Permits New Source Review (NSR) Program Prevention of Significant Deterioration (PSD) PSD permits are required for new major sources (Desert Rock). Major modifications to major sources in an attainment area PTE >100 tpy for 28 listed major sources and PTE > 250 tpy for all the other PSD permits: EPA or by state and local permitting authority. Minor Source Permit Permit conditions to limit the source emissions to avoid PSD and NAA NSR permit. EPA is drafting the Tribal Minor NSR. Non attainment (NAA) NSR Permit Required for new major sources or major mod to major sources in a NAA area Operating Permits Title V PermitTitle IV: Acid Rain Permit Each acid rain permit specifies the Title IV requirements that apply to each affected unit at the affected source Applicable to the two fossil-fuel fired steam electric plants on Navajo (FCPP and NGS)

14. Title V Permit A Title V permit grants a source permission to operate. Includes all air pollution requirements that apply to the source, emissions limits,monitoring, record keeping, and reporting requirements. Major Source Threshold in Attainment Areas State and local permitting authority : Part 70 Permit (40 CFR part 70). EPA issue 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 HAP25

15. 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 days 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) issuance and effective date of permit (valid for 5 years) Permit Revisions, Permit Renewal and Expiration Permit Process

16. 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

17. IV.Title V Administrative Requirements A.Part 71 Fee Payment B.Compliance Certifications C.Minor Permit and Significant Modifications D.Administrative Amendments E.Inspection and Entry Statement of Basis (S.O.B): 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 Title V- 40 CFR Part 71 Permit Content cont’d

18. Permit Compliance/ Enforcement Receive compliance reports from facilities Perform monitoring visits to facilities Conduct periodic inspections of facilities Take part in annual compliance testing Take actions in case of violations, citizen complaints and exceedance of permit conditions EPA maintains its full federal investigative and enforcement authorities EPA provides training and guidance to the NNEPA staff to develop NNEPA’s enforcement program

19. Title V Permit Status Facility NamePermit No. Application Received Application Completeness Draft Permit & Statement of Basis Public NoticeDate Permit Issued / Amendments TWP Leupp Station OP 04-001NN10/28/200412/12/20046/06/200506/14/20059/22/2005 Permit amended/need sign. TWP Klagatoh Station OP 04-002NN10/28/200412/12/20046/06/200506/14/20059/22/2005 Permit amended/need sign. Application update received. EPNG Dilcon Station OP 04-003NN11/16/200412/15/20047/15/200507/28/20052/13/2006 Permit expected to amended. EPNG Navajo Station OP 04-005NN11/16/200412/15/2004 Submitted 10/07/05, resubmitted 2/10/2006 to EPA07/28/20052/13/2006 Permit expected to amended. Peabody Western Coal 7/1/2004 Amended 01/14/05, 2-13-07 Company NN-OP 08-01010/29/200812/29/2008TBA Amended and re-issued 02/13/07. Peabody in process of renewal application ConocoPhillips Wingate NN OP 05-0115/23/20056/23/2005Contracted out to Enviroplan EPNG Leupp Station NN OP 04-00411/16/200412/15/2004finalized final permit/rtc signed Application update received 11/15/06, Permit issued May 27, 2008 EPNG Gallup Station NN OP 05-0077/06/2005updated 11/07finalized final permit/rtc signed Issued December 30, 2008 EPNG Window Rock Station NN OP 05-0097/06/2005updated 11/07finalized final permit/rtc signed Issued October 7, 2008 EPNG White Rock NN OP 05-0087/06/2005updated 11/07finalized final permit/rtc/signed Issued December 30, 2008 APS Four Corners Power Plant NN-ROP-05-0712/16/20053/21/2006finalized draft permit/rtc (Full Title V Permit)Issued August 1, 2008 SRP Navajo Generating Station NN-ROP-05-0612/01/20053/21/2006 finalized draft permit/rtc. signature needed Permit will be reopened when FIP is promulgatedIssued July 3, 2008 Resolute Aneth 1 NN-OP 00-039/27/2002TBA5/22/20076/19/2007Issued July 30, 2007 Resolute 2 (MCU)EPA is working on the draft permit, no date on when draft permit will be available for initial review.

20. Navajo Nation Emission Inventory Project (NNEI) Goals of NNEI: Confirm the point sources to be inventoried Obtain base year 2005 emission inventory data from the fourteen (14) Title V and non – title V point sources Identify potential emission sources and activity data to develop area source emission estimates Develop and format National Emission Inventory (NEI) Input Format records for each source based on equipment descriptive information and related emission data

21. PROPOSED DESERT ROCK ENERGY PROJECT Overview – Construction of a 1500 megawatt coal-fired power plant on the Navajo Reservation – EPA's Region 9 had issued a final PSD permit for the project on July 31, 2008 – April 27, 2009, Region 9 asked the Environmental Appeals Board to remand the PSD permit PSD permit re-evaluation will include : – PM 10 as a surrogate for PM 2.5 to satisfy PSD requirements – Consideration of IGCC in the BACT analysis – ESA consultation issues – MACT analysis for hazardous air pollutants – Sufficiency of additional impact analysis

22. NNAQCP-OPP CURRENT PROJECTS Rulemaking process in progress for Asbestos, and Navajo Nation Acid Deposition Rule Coordinate with EPA and other tribe’s in Tribal Minor NSR rulemaking process Emission Inventory: To be completed by September ‘09 Coordinate with EPA regarding the FIP, CAMR, CCW,and BART Complete the annual Compliance Evaluation Inspection (CEI) FY’09 APS lease waviers

23. Contacts Air & Toxics Department Eugenia Quintana, Environmental Department Manager Telephone : (928)871-7800 Email : eugeniaquintana@navajo.org Air Quality Control Program (AQCP-OPP) Charlene Nelson, Environmental Program Supervisor Telephone : (928) 729-4247 Email: charlenenelson@navajo.org Website : http://www.navajonationepa.org/airq Email: nnepanilchi@navajo.orgnnepanilchi@navajo.org Phone: 928-729-4096