Minor NSR Program and Highlights of the Proposed Tribal Major Nonattainment and

Minor NSR Rules

Jessica Montañez

U.S. Environmental Protection Agency

Office of Air Quality Planning and Standards

919-541-3407, montanez.jessica@epa.gov 1

What is the purpose of this discussion?

2. Proposed Minor NSR Rule2. Proposed Minor NSR Rule

3. Proposed Major Nonattainment NSR Rule3. Proposed Major Nonattainment NSR Rule

4. Delegation, Permitting, Public Participation and Permit Appeal Requirements

4. Delegation, Permitting, Public Participation and Permit Appeal Requirements

5. Summary of Comments Received5. Summary of Comments Received

1. Applicability and Program Requirements 1. Applicability and Program Requirements

2

Minor NSR Applicability and Program Requirements

3

What are the Minor NSR applicability and program requirements?

• Sources below major NSR thresholds

• Not many requirements prescribed in our rules– Mainly for public participation at 40 CFR 51.161(a)-(d), 51.166(q),

and 52.21(q)

• Great deal of variation among state Minor NSR programs

• Proposal represents how EPA would implement program in Indian Country in the absence of an EPA approved plan

4

Why do we need Federal NSR rules in Indian Country?

• Provide a permitting mechanism

• Fill existing NSR program gaps

• Promote economic development

5

How will tribes benefit for the proposed Federal NSR rules?

• Protect Tribal sovereignty

• Provide equal opportunity for economic development

• Build Tribal capacity

6

Specifics of the Proposed Tribal Minor NSR Rule

7

What is a threshold and what are examples of the proposed Minor NSR thresholds?

• Limits below which minor NSR does not apply

• Lower in nonattainment areas

For example:– Ozone attainment areas – 10 tpy NO2

– Ozone nonattainment areas – 5 tpy NO2

• Not the most nor the least stringent limits – 42% of VOC sources will be below thresholds

– 76% of SO2 sources will be below thresholds

8

What are the proposed Minor NSR rule requirements?

• 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

9

What are the proposed types of Minor NSR permits?

• Typical/common type of permit

• Source-wide permit

• General permit

• Synthetic minor source permits

10

Permit Types Examples

11

Example 1: What may be the appropriate controls for this 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

Emit PM

Emit PM

Emit PM

Emit PM, CO, NOx, SO2, and VOC

Emit PM

ROADWAYS

http://www.carolinaasphalt.org/docs/presskit/CAPA_Asphalt_Process.PDF

• Permit information: – Source owner applying for a typical/common permit

12

Which controls did the reviewing authority determine were needed?

• PM/PM-10:– Dryer will need a cyclone and a baghouse.– Screens/bins/mixer will need a capture system (hood).– Roadways will need dust suppressants – Conveyor transfer points will need shrouding (screen or cover at

transfer points)– Aggregate piles will not need to be controlled

• NO2, VOC, and CO: – Dryer and mixer have to combust natural gas or Liquid

Petroleum Gas (LPG) with good combustion practices

• SO2: – No controls needed, pollutant being emitted in amounts lower

than proposed minor NSR threshold

13

What are the steps for this particular permitting process?

• Reviewing authority:– Determines that AQIA is not needed– Develops draft permit

• subject to 30-day public comment period

– Issues the final permit

• Permit highlights:– The baghouse will have:

• Exhaust limits for PM/PM-10, NOx, VOC, CO• To comply with an initial compliance test, re-tests every 3

years• To be subject to inspection and maintenance program

14

Example 2: What would a minor source PAL permit look like for a lumber mill?

• Source Information:– See diagram

• Area information:– All pollutants emitted in minor

amounts

• Permit Information:– Owner requests minor source

PALs for PM-10 and VOC – PALs established based on

allowable emissions in tpy

http://plantsci.sdstate.edu/woodardh/Soils_and_Ag/Black_Hills/

Waste chips-fired boiler

Emit PM-10

Emits PM-10 and VOCs

Emits VOCs

Emits PM-10

Emits PM-10

Emits PM-10

http://geoheat.oit.edu/ 15

• Reviewing authority:– Performs case-by-case control technology review

• Determines no controls required for PM and VOCs• Determines that AQIA is not needed

– Develops draft permit• Any modifications allowed if emissions stay within PAL limits• Monitoring will be done to assure compliance with the PALs

based on:– Actual mass emissions for each 12-month period, rolled

monthly– Site-specific emission factors developed through testing

• Subject to 30-day public comment period

– If all conditions are met, permit is issued

What are the next steps in this particular permitting process?

16

• Source Information:– Comprised of compressors and related auxiliary equipment that emit

CO, NO2, PM-10, SO2, VOC

• Permit Information:– EPA develops general permit after public participation process– To qualify for coverage facility must not exceed the following limits:

– PM-10 – 10 tpy– SO2 – 25 tpy– VOC – 25 tpy– CO – 95 tpy– NO2 – 95 tpy

http://www.eia.doe.gov/kids/energyfacts/sources/non-renewable/naturalgas.html

Example 3: What would a general permit look like for a natural gas gathering facility?

17

• To comply with PM-10,VOC, SO2, CO, and NO2 emissions limits:• Burn natural gas in compressors

• To comply with SO2 emissions limits:• Burn natural gas with a sulfur content less than

154 ppm and conduct periodic testing

What are the necessary conditions for this type of general permit?

18

• Reviewing authority determines that AQIA is not needed

• Owner of planned new facility applies for coverage under the general permit– Includes an initial performance test for CO and NO2

• Reviewing authority sends a letter of approval (or disapproval)– If approved, owner posts notice of approval at the site

and starts construction of the facility as permitted

What are the next steps in this particular permitting process?

19

• 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

Plywood

http://www.essexcoatings.com/

http

://w

ww

.for

estle

arn.

org/

mill

s/pl

ywoo

d/pl

ytou

r/gr

een_

sort

ing.

htm

Example 4: What would a synthetic minor permit look like for a plywood furniture factory?

20

• Source must submit a screening modeling analysis to show that NAAQS are not threatened

• Reviewing authority develops draft permit– Permit limits operating hours to 5,000 hrs/yr for VOC:

– Reduces VOC PTE to 230 tpy– Allows for increased utilization at facility

• Permit subject to 30-day public comment period prior to issuance

• Facility must track and record actual hours of operation to show that the 5,000 hrs/yr limit is being met

What are the next steps in this particular permitting process?

21

Specifics of the Proposed Tribal Nonattainment Major NSR Rule

22

Which sources would be subject to the proposed Major Nonattainment (NA) NSR rule?

• New major sources

• Major modifications

23

What would the proposed NA Major NSR rule require?

• Lowest Achievable Emission Rate (LAER)

• Offsets at prescribed ratios

• Monitoring, recordkeeping, and reporting as needed

• Public participation, administrative and judicial review

• Same requirements as current NA Major NSR rules for areas lacking an implementation plan – 40 CFR part 51, Appendix S

24

What are the proposed options for offset waivers?

1. Economic Development Zone (EDZ) option– If sources located in a zone targeted for economic development.

Criteria for this waiver:• Demonstration that emissions will not interfere with attainment of

the applicable NAAQS by the attainment date

2. Appendix S, Paragraph VI option– If sources will comply with implementation plan limits and not

interfere with attainment date. Criteria for this waiver:• Applicable until attainment date for NAAQS passes.

25

Delegation, Permitting, Public Participation, and

Administrative and Judicial Review Provisions for Both of the Proposed Rules

26

What are the proposed delegation requirements?

• 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

• Tribes may implement their own program through a Tribal Implementation Plan (TIP)

27

What are the proposed requirements for obtaining a Minor or Major NSR source permit?

• Source submits a complete application

• The reviewing authority:– Has 45 days to determine if permit application is complete – Will perform control technology review on a case-by-case basis– May require an Air Quality Analysis

• Then, the reviewing authority will:– Develop the draft permit – Provide public with a 30-day comment period – Issue final permit if all applicable requirements have been met

28

What are the proposed public participation requirements?

• 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

• 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

29

What are the options for permit appeals?

• Any person may appeal the final permit if the:– Person commented on the draft permit; or– Grounds for appeal occurred after public comment period ended

• Two proposed options for permit appeals:– Administrative – through Environmental Appeals Board (EAB)– Judicial – through Federal Court of Appeals for the tribal area

30

What are the requirements for administrative permit appeals?

• Appeals must be filed 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

31

What are the requirements for judicial permit appeals?

• Permits:– are effective upon issuance– not stayed by filing for an appeal

• To stay a permit, petition under the Administrative Procedures Act (APA) 5 U.S.C. 705 must be filed

• Source can have permit revoked after proceeding with construction while appeal was pending

32

Summary of Comments

33

How many comments were received about the rules?

15 industries

1 environmentalgroup

7 states

26 tribes

8 privatecitizens

57 totalcomments

34

What were the common comments about the proposed rules?

Case-by-casecontrol

technologyreview shouldnot exist or be

more standardized

Minor NSR thresholdsshould be increased

Modifications should be defined as

an increase in actual

instead of allowable emissions

Minor NSR ruleshould reflectMinor NSR

rulesin surrounding

states

1 2 3 4

Permit issuance

process is too lengthy

5

35

What is the current schedule for finalizing the rules?

ProposalProposal Comment PeriodComment Period Final RuleFinal Rule

Published in Federal

Register on August 21, 2006

Three Periods:August 21, 2006 -

November 20, 2006;

November 20, 2006-January 19, 2007;

January 19, 2007 - March 20, 2007

Scheduled to be

Published in Federal Register

by Spring 2009

36