Proposed NSR Rules for Indian Country by qos48214


									                EPA - New Source Review

                Proposed NSR
            Rules for Indian Country

Raj Rao, Jessica Montanez, Wendy Namisnik
        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
   Highlights of the proposed major NSR rule
   Example of major NSR permitting
   Delegation, public participation, and administrative and
    judicial review
   Process and timeline for final rulemaking
   Commenting on the proposed rules

          First, let’s recap NSR
   Preconstruction permit program to manage
    growth in a controlled manner

   Designed to protect public health and welfare as
    new pollution sources are built or existing
    sources are modified

   Requires most new sources to be designed and
    built clean
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
          EPA does currently implement the PSD program in Indian country

   Provide a cost-effective and timely permitting

   Level the economic playing field with States

     How will Tribes benefit from the
      proposed Federal NSR rules?
   Protect Tribal sovereignty from State incursion by
    clarifying jurisdiction

   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)
        See appendix A for information on SIPs, TIPs, and FIPs
     Allows tribes to administer the program through delegation
Specifics of the
Minor NSR rule

What does the minor NSR rule apply to?
    New minor sources
         Sources with PTE equal to or above the minor NSR thresholds, but
          less than the corresponding major NSR threshold

    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
            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 threshold

                 Proposed rule includes flowcharts to help!
          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
      Ozone attainment areas – 10 tpy NOx
      Ozone nonattainment areas – 5 tpy NOx

   An analysis of stationary sources across the country,
    which evaluated the percentage of sources that would be
    exempt from these 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
Minor NSR thresholds (continued)
                                             For Nonattainment               For Attainment
     Regulated NSR Pollutant
                                                 Areas (tpy)                   Areas (tpy)
Carbon monoxide (CO)                                      5                        10
Oxides of nitrogen (NOx)                    5; (0 for Extreme Ozone Areas)         10
Sulfur dioxide (SO2)                                      5                        10
Volatile organic compounds (VOC)            2; (0 for Extreme Ozone Areas)         5
PM                                                        5                        10
PM-10                                                     1                        5
PM-2.5                                                   0.6                       3
Lead                                                     0.1                       0.1
Fluorides                                                NA                        1
Sulfuric acid mist                                       NA                        2
Hydrogen sulfide (H2S)                                   NA                        2
Total reduced sulfur (including H2S)                     NA                        2
Reduced sulfur compounds (including H2S)                 NA                        2
Municipal waste combustor emissions                      NA                        2
Municipal solid waste landfills emissions                NA                        10
       What are the minor NSR rule
   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 implement their own minor NSR program
    when EPA approves their Tribal Implementation Plan
   Tribes may request delegation of EPA‟s NA minor NSR
               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
      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

              How would a source obtain a
                 minor source permit?
   Source submits a complete application (refer to 40 CFR 49.154(a))

   The reviewing authority:
      Will perform a control technology review on a case-by-case basis
      May require an Air Quality Impacts Analysis (AQIA) if they believe the
       source will have a significant impact on the NAAQS

   Then, the reviewing authority:
        Must determine within 45 days if application is complete enough to
         commence a technical review or request additional information
             If the source does not receive a request for additional information or a notice of
              complete application within 50 days of the reviewing authority‟s receipt of the
              application, the source application would be deemed complete
      Will develop a draft permit and provide public notice seeking comments on
       the draft permit for a 30-day period once the application is complete
      Will issue a final permit if the reviewing authority determines that the
       source application meets all applicable requirements. Otherwise, they will
       send the source a letter denying the permit and the reasons for the denial
Let‟s apply what we‟ve learned
about minor NSR with
some practical examples

                                   Example 1: Asphalt Batch Plant
          Source information:
                   Process capacity of 300 tons of asphalt/hour.
                   Dryer burner capacity of 60 MMBTU/hour.
          Area information:
                   Area in attainment for all pollutants.
          Permit information:
                   Source owner applying for a typical/common permit.

                                  Emit PM

                                                                                             Emit PM

                                                                                Emit PM

            Emit PM

                  ROADWAYS                                              Emit PM, CO, NOx, SO2, and VOC

                    Asphalt Batch Plant – Review
1.       Reviewing authority reviews source information and performs case-
         by-case control technology review. It determines that to control:
           PM/PM10:
              The dryer will need a cyclone and a baghouse.
                  Cyclones remove larger abrasive particles to reduce the inlet loading of PM to
                   other downstream collection devices. Baghouses trap particles by filtering
                   gas streams through large cloths or fiberglass bags.
              The screens/bins/mixer will need a capture system (hood).
              The roadways will need dust suppressants (any chemical formulation applied
               to the ground to control emission of dust).
              The conveyor transfer points will need shrouding (screen or cover that
               reduces the amount of particulate matter that flies away at transfer points).
              The aggregate piles will not need to be controlled.
           NOx, VOC, and CO:
              Dryer and mixer have to combust natural gas or Liquid Petroleum Gas (LPG)
               with good combustion practices.
                  LPG is the propane, butane, or propane-butane mixtures derived from crude
                   oil refining or natural gas fractionation.
           SO2:
              No controls needed. Pollutant being emitted in amounts lower than minor
               NSR threshold.

                                        Asphalt Batch Plant - Permit
   2.           Reviewing authority determines that AQIA is not needed.
   3.           Reviewing authority develops draft permit.
   4.           Permit is subject to 30-day public comment period.
   5.           After the public review is finished, the reviewing authority issues
                the final permit. The highlights of this permit are:
                      For the baghouse:
                              Emission limits are placed on exhaust for PM/PM10, NOx, VOC, CO.
                              Initial compliance test will be required, with re-tests every 3 years.
                              Inspection and maintenance program
                                   Emit PM

                                                                                             Emit PM

                                                                                Emit PM

            Emit PM

                                                                        Emit PM, CO, NOx, SO2, and VOC                                    16
Example 2: Minor Source PAL Permit for a Lumber Mill
   Source Information:
        See diagram.
   Area information:
        All pollutants are being
         emitted in minor amounts.
   Permit Information:
            Owner requests minor
             source PALs for PM10 and
             VOC to provide operational                               Emit PM10
            Minor source PALs will be
             established based on
             allowable emissions in tpy.
                                                                     Emits VOCs                                          Emits PM10

                                                                                                         Emits PM10
                                                                                                         and VOCs
                                                                      Emits PM10
                                                                                                             Waste chips-
                                                                                                              fired boiler

                                                                      Emits PM10                          17
         Lumber Mill PAL – Review and Permit
1.     Reviewing authority reviews source information and performs
       case-by-case control technology review. It determines that no
       controls are required for:
          PM/PM10 and VOCs
2.     Reviewing authority determines that AQIA is not needed.
3.     Reviewing authority develops draft permit.
4.     Permit is subject to 30-day public comment period.
5.     After the public review is finished, the reviewing authority issues
       the final permit. The highlights of this permit are:
          Owner may make any modifications at the source as long as
           total source emissions stay within the PAL limits
          Monitoring will be done to assure compliance with the PALs
           based on:
            Actual mass emissions for each 12-month period, rolled monthly
            On site-specific emission factors developed through testing

Example 3: General Permit for a Natural Gas Gathering Facility
   Source Information:
      Such facility is generally comprised of compressors and related auxiliary equipment.
      Compressors emit CO, NOx, PM10, SO2, VOC.

   Permit Information:
      EPA develops a general permit after going through public participation.
      To qualify for coverage under this general permit, a new natural gas gathering facility
       may not exceed the following limits:
             PM10 – 10 tpy
             SO2 – 25 tpy
             VOC – 25 tpy
             CO – 95 tpy
             NOx – 95 tpy

         General Permit for Natural Gas Gathering Facility –
                        Review and Permit
1.       EPA determined for the natural gas gathering facility general
         permit that the following permit conditions are needed:
           Burn natural gas in compressors.
              To comply with PM10,VOC, SO2, CO, and NOx emissions limits.
           Burn natural gas with a sulfur content less than 154 ppm and conduct
            periodic testing.
              To comply with SO2 emissions limits.
2.       Reviewing authority determines that AQIA is not needed.
3.       Owner of planned new facility applies for coverage under the
         general permit. It includes:
           An initial performance test for CO and NOx.
4.       Reviewing authority sends a letter of approval (or disapproval).
5.       If approved, owner posts notice of approval at the site and starts
         construction of the facility as permitted.

Example 4: Synthetic Minor Permit for a Wood (Plywood)
                   Furniture Factory
   Source Information:
      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).
   Area information:
      Area in attainment for VOC and ozone.
   Permit Information:
        Owner requests a synthetic minor permit for VOC.

     Wood (Plywood) Furniture Factory - Permit
1.   At the request of the reviewing authority, source
     submits a screening modeling analysis to see if
     NAAQS are threatened. The analysis shows that the
     NAAQS are not threatened.
2.   Reviewing authority develops draft permit.
        Permit limits operating hours to 5,000 hrs/yr (reduction from
         8,760 hrs/yr potential):
            Reduces PTE to 230 tpy
            Allows for increased utilization at the facility because the facility
             is actually operating at 2,080 hrs/yr.
3.   Permit is subject to 30-day public comment period.
4.   After the public review is finished, the reviewing
     authority issues the final permit. The highlights of this
     permit are:
        Facility must track and record actual hours of operation to
         show that the 5,000 hrs/yr limit is being met.

Now let‟s talk about the
Major NSR rule

          What does the major
    nonattaiment NSR rule apply to?
   Applies to:
      New major sources with PTE equal to or above the major
       NSR thresholds
      Major modifications - any physical or operational change
       at a source that would result in a significant net emission
       increase of any regulated NSR pollutant
   Major sources would be subject to the existing
    nonattainment major NSR rules for areas lacking an
    approved Part D plan – 40 CFR part 51, Appendix S

      Proposed rule includes flowcharts to help!

      What does the nonattainment
       major NSR rule require?
   Main requirements include:
     LAER – the lowest emissions rate contained in the
      implementation plan and/or practically achievable for
      that type of source
     Offsets at prescribed ratios – emissions reductions to
      offset the proposed increase from project
     Public participation, administrative and judicial review

   Tribes may implement their own major NA NSR program
    when EPA approves their TIP
   Tribes may request delegation of EPA‟s NA major NSR

                     Major NSR
              Options for offset waiver
         Economic Development Zone (EDZ) option
   Major stationary sources and major modifications subject to this program
    may be exempted from the offset requirement if they are located in a
    zone targeted for economic development by the Administrator, in
    consultation with the Department of Housing and Urban Development

   Criteria for this waiver:
      Source located in a geographical area which meets the criteria for an EDZ,
       and the Administrator has approved a request from a tribe and declared the
       area as an EDZ
      Tribe demonstrates that the new permitted emissions will not interfere with
       attainment of the applicable NAAQS by the applicable attainment date.
             Major NSR
Options for offset waiver (continued)
          Appendix S, Paragraph VI option

   Source exempt from offset requirement until attainment
    date for NAAQS passes

   Criteria for this waiver:
      Source will comply with implementation plan limits
       and will not interfere with the attainment date
      EPA determines that these criteria are satisfied and
       publishes this finding in the Federal Register

Let‟s apply what we‟ve
learned about major NSR
with an example

  Which pollutants are subject to major
   nonattainment NSR permitting?
       Area in
                                     Area in
                             marginal nonattainment          Facts:
       for SO2                                        •Volatile Organic
                                   for Ozone
                                                      Compounds (VOCs)
            500 tpy SO2 50 tpy VOC                    are ozone precursors.
        30 tpy PM10
                                                      Ozone is the criteria
                                                      pollutant, not VOC
                                                      • The tons per year
                                                      (tpy) in the plume are
  Area in                                             the plant’s potential
attainment                                            to emit these
 for NOx                                              pollutants.

New Plant
                      Example Solution
  Determine if the source is major by comparing the plant’s potential to emit
  for each nonattainment pollutant to the nonattainment major NSR threshold
  of 100 tpy.
                            The SO2 emissions are 500 tpy, which are
Remember, the plant         greater than 100 tpy. Therefore, SO2 is subject
expects to emit:            to nonattainment major NSR.
SO2=500 tpy
                          VOCs are ozone precursors and since the
VOC=50 tpy                area is in marginal nonattainment for ozone, we
NOx=30 tpy                have to evaluate this pollutant for the major
And the areas are         nonattainment NSR program. In this case,
designated:               since the emissions of VOCs are lower than
                          100 tpy, the plant is not subject to
                          nonattainment major NSR for VOC.
NOx=Attainment            The NOx emissions are not evaluated for
                          nonattainment major NSR because the area is
                          in attainment for NOx.
Public Participation, and
Administrative and Judicial Review
for both rules

   We encourage you to consider delegation of authority to
    assist EPA with administration of both rules

   To apply for delegation, the tribe:
       Must be recognized by the Secretary of Interior
       Laws must provide adequate authority
       Must demonstrate technical capacity and resources

   EPA retains all enforcement authority

   If the Tribe develops a TIP, it may use the final Tribal Minor
    and Major NA NSR rules as models

              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
    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, the person must appeal to EPA‟s Environmental
    Appeals Board (EAB)

   If denied by EAB, the person may appeal to Federal

What you can and
should do next

         First, you must understand the NSR Tribal
             rule making process and timeline
1.    Proposal published in the Federal Register and public
      comment period commenced on August 21, 2006.

2.    Public comment period, as originally proposed, ended
      on November 20, 2006 (90 day comment period).
      Public comment period has been extended for 60
         more days. The official comment period now ends
         on January 19, 2007.
         This is where you can make a difference.

3.    Final rule will be published around:
      Fall 2007

   EPA wants your comments on the following
         specific minor source issues:
Is the proposed definition of modification appropriate?

 Are the approach and proposed minor NSR thresholds

Should all existing minor sources be required to:
   Register only
   Be subject to the rule
   Be exempt from the rule

Should only existing synthetic minor sources be subject to the

You are also encouraged to comment on any other issues you find relevant!
        EPA wants your comments on the following
         specific minor source issues (continued):

   Is the proposed permit issuance process appropriate?

   Is proposed „allowable–to–allowable” test appropriate for quantifying
    emissions increase from modifications?

   Is the proposal to allow “project netting” appropriate for minor NSR?

   Is the proposed case-by-case control technology appropriate or should
    no controls be required for minor sources? Can other approaches
    achieve these purposes?

   Is the proposed process of allowing a stationary source to become a
    synthetic minor appropriate?

You are also encouraged to comment on any other issues you find relevant!

       EPA wants your comments on the following
        specific minor source issues (continued):

   Should section 112(g) case-by-case MACT determinations be reviewed
    through this minor NSR program?

   Are the public participation requirements appropriate?

   What do you think of the general permits and issuance process?

   Are the two options for reviewing initial permit decisions satisfactory?

You are also encouraged to comment on any other issues you find relevant!

       EPA wants your comments on the following
             specific major source issues:
   Appendix S
      Should sources subject to the major NSR program in Indian country
       be subject to the provisions of Appendix S?
        • NOTE: We will not entertain general comments on Appendix S
          provisions, since this transitional program has been implemented
          in States across the country for many years

   Compliance certification
      Should the source be required to certify that all their sources in the
       State where the proposed source is locating are in compliance, or
       that all their sources in all of Indian country are in compliance?

You are also encouraged to comment on any other issues you find relevant!

     EPA wants your comments on the following
      specific major source issues (continued):
 Offset Waivers - options presented to address the lack of
  availability of offsets for tribes:
    EDZ option
       Is the criteria for identifying parts of Indian country as EDZs
        appropriate and/or should we consider any other criteria?
       We seek comment on the approach of providing offset relief since
        we are proposing to have the Administrator consult with HUD
        only once to develop a general set of approval criteria. This
        means a consultation will not be required every time a tribe
        applies for its area of Indian country to be designated as an EDZ.
    Appendix S, paragraph VI option
       Is this an appropriate option for an offset waiver?
    We are also requesting comment on other potential
     options for offset relief in Indian country.

You are also encouraged to comment on any other issues you find relevant!
    Finally, please submit your
comments on the proposed NSR rules
            Submit your comments, identified by
          Docket ID No. EPA-HQ-OAR-2003-0076,
            using one of the following methods:

     Federal eRulemaking Portal:
      Follow the on-line instructions for submitting comments
     E-mail:
     Fax: 202-566-1741
     Mail: Attention Docket ID No. EPA-HQ-OAR-2003-0076, U.S.
      Environmental Protection Agency, EPA West (Air Docket), 1200
      Pennsylvania Avenue, Northwest, Mailcode: 6102T, Washington,
      DC 20460

The two new proposed rules for Indian country attempt to fill
                existing regulatory gaps.

     EPA values your feedback regarding these rules.

    Please take the time to submit your comments!

If you have any questions contact Jessica Montanez at
       919-541-3407 or

                               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.                     44
                        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.


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