EPA - New Source ReviewEPA - New Source Review

Proposed NSRProposed NSR Rules for Indian CountryRules for Indian Country

Genevieve Damico, EPA Region 5Genevieve Damico, EPA Region 5

Presentation drafted by: Raj Rao, Jessica Montanez, Presentation drafted by: Raj Rao, Jessica Montanez, Wendy NamisnikWendy NamisnikOAQPS, USEPAOAQPS, USEPA

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Here’s what we will coverHere’s what we will cover Purpose of NSR rules for Indian Purpose of NSR rules for Indian

countrycountry

Highlights of the proposed minor NSR Highlights of the proposed minor NSR rulerule

Examples of minor NSR permittingExamples of minor NSR permitting

Delegation, public participation, and Delegation, public participation, and administrative and judicial review administrative and judicial review

The proposed rulesThe proposed rules

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Why do we Why do we need need Federal NSR Federal NSR rules in Indian country?rules in Indian country?

Fill existing regulatory NSR program gaps in Fill existing regulatory NSR program gaps in Indian country; currently no programs are in Indian country; currently no programs are in place for:place for: Minor NSRMinor NSR Nonattainment major NSRNonattainment major NSR

Provide a cost-effective and timely permitting Provide a cost-effective and timely permitting mechanismmechanism

Level the economic playing field with StatesLevel the economic playing field with States

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How will Tribes How will Tribes benefitbenefit from the from the proposed Federal NSR rules?proposed Federal NSR rules?

Protect Tribal sovereignty from State incursionProtect Tribal sovereignty from State incursion

Provide equal opportunity for economic Provide equal opportunity for economic developmentdevelopment Establish clarity of requirements for sourcesEstablish clarity of requirements for sources Create a timely mechanism for obtaining permitsCreate a timely mechanism for obtaining permits Ensure that resources are protected through controlled Ensure that resources are protected through controlled

growthgrowth

Build Tribal capacityBuild Tribal capacity Supply potential model for Tribal Implementation Plan Supply potential model for Tribal Implementation Plan

(TIP) development(TIP) developmentSee appendix A for information on SIPs, TIPs, and FIPsSee appendix A for information on SIPs, TIPs, and FIPs

Allows tribes to administer the program through Allows tribes to administer the program through delegationdelegation

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Which Which sourcessources in Indian Country will be in Indian Country will be affectedaffected by the proposed Federal NSR rules? by the proposed Federal NSR rules?

New minor sourcesNew minor sources New major sources locating in nonattainment New major sources locating in nonattainment

areas of Indian Countryareas of Indian Country

Existing minor sources making modificationsExisting minor sources making modifications

Existing major sources in nonattainment areas Existing major sources in nonattainment areas making minor or major modificationsmaking minor or major modifications

Major sources seeking to limit their potential to Major sources seeking to limit their potential to emit (PTE) and become synthetic minor sourcesemit (PTE) and become synthetic minor sources

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Specifics of the Specifics of the Minor NSR ruleMinor NSR rule

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What does the minor NSR rule What does the minor NSR rule apply toapply to?? New minor sourcesNew minor sources

• Sources with PTE equal to or above the minor NSR Sources with PTE equal to or above the minor NSR thresholds. thresholds.

Modifications at existing minor/major sourcesModifications at existing minor/major sources • When there is a physical or operational change at an When there is a physical or operational change at an

existing source that is existing source that is notnot subject to major NSR. subject to major NSR.• Emissions increase will be calculated based on allowable Emissions increase will be calculated based on allowable

emissions (i.e. emissions (i.e. “Allowable-to-allowable emissions test”). “Allowable-to-allowable emissions test”). See appendix B for a definition of allowable emissions.See appendix B for a definition of allowable emissions.

Synthetic minor sourcesSynthetic minor sources, including Hazardous Air , including Hazardous Air Pollutants (HAP) sourcesPollutants (HAP) sources• Major sources seeking to limit potential to emit below Major sources seeking to limit potential to emit below

the major source thresholdthe major source threshold

Proposed rule includes flowcharts to help!Proposed rule includes flowcharts to help!

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Minor NSR Minor NSR thresholdsthresholds

Thresholds: cutoffs below which minor NSR does Thresholds: cutoffs below which minor NSR does not apply to a new minor source or modificationnot apply to a new minor source or modification

Thresholds are lower in nonattainment areas. For Thresholds are lower in nonattainment areas. For example:example: Ozone attainment areas – 10 tpy NOxOzone attainment areas – 10 tpy NOx Ozone nonattainment areas – 5 tpy NOxOzone nonattainment areas – 5 tpy NOx

An analysis of stationary sources across the An analysis of stationary sources across the country to evaluate the percentage of sources country to evaluate the percentage of sources that would be exempt from this rules if the that would be exempt from this rules if the thresholds applied nationally showed that:thresholds applied nationally showed that: Sources and modifications with emissions Sources and modifications with emissions

below the thresholds are inconsequential to below the thresholds are inconsequential to attainment and maintenance of the NAAQSattainment and maintenance of the NAAQS

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Minor NSR Minor NSR thresholds thresholds (continued)(continued)

 Regulated NSR PollutantFor Nonattainment

Areas (tpy)For Attainment

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

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What are the minor NSR rule What are the minor NSR rule requirementsrequirements??

Main requirements are:Main requirements are: Case-by-case control technology reviewCase-by-case control technology review Air Quality Impact Analysis (AQIA) in rare casesAir Quality Impact Analysis (AQIA) in rare cases Monitoring, recordkeeping, and reporting as Monitoring, recordkeeping, and reporting as

needed to assure complianceneeded to assure compliance Public participation, administrative and judicial Public participation, administrative and judicial

reviewreview

Tribes may request delegationTribes may request delegation

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Minor NSR Minor NSR permitspermits Typical/common type of permitTypical/common type of permit – individual emissions units – individual emissions units

are issued enforceable allowable emissions limits (tpy) are issued enforceable allowable emissions limits (tpy)

Source-wide permitSource-wide permit – a Plantwide Applicability Limitation – a Plantwide Applicability Limitation (PAL) is issued for the entire source, regardless of the (PAL) is issued for the entire source, regardless of the number of emissions unitsnumber of emissions units Beneficial for sources needing flexibility to make rapid changesBeneficial for sources needing flexibility to make rapid changes Requires increased monitoringRequires increased monitoring

General permit General permit -- a standard permit created by the a standard permit created by the permitting agency for common source categories, i.e. gas permitting agency for common source categories, i.e. gas stations, dry cleaners, etc.stations, dry cleaners, etc.

Synthetic minor source permits Synthetic minor source permits –– major sources seeking to major sources seeking to limit potential to emit to become synthetic minor sourceslimit potential to emit to become synthetic minor sources

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Let’s apply what we’ve learned Let’s apply what we’ve learned about minor NSR with about minor NSR with

some some practical examplespractical examples

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Example 1Example 1 Asphalt Batch PlantAsphalt Batch Plant

Source information:Source information: Process capacity of 300 tons Process capacity of 300 tons

per hourper hour Dryer burner capacity of 60 Dryer burner capacity of 60

MMBtu per hourMMBtu per hour Aggregate piles and conveyorsAggregate piles and conveyors Roadway dustRoadway dust

Area is in attainment for all Area is in attainment for all pollutantspollutants

Source owner applies for a Source owner applies for a typical/common permittypical/common permit

http://conquip.us/html/asphalt_plant_pictures.html

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Asphalt Plant – ReviewAsphalt Plant – Review

Case-by-case control technology review:Case-by-case control technology review: PM/PMPM/PM1010::

• Cyclone and baghouse for dryer and Cyclone and baghouse for dryer and capture system on screens/bins/mixercapture system on screens/bins/mixer

• Dust suppressant for roadwaysDust suppressant for roadways• Shrouding for conveyor transfer pointsShrouding for conveyor transfer points• No control for aggregate pilesNo control for aggregate piles

NOx, VOC, and CO: NOx, VOC, and CO: Combustion of natural gas or Liquid Combustion of natural gas or Liquid

Petroleum Gas (LPG) with good Petroleum Gas (LPG) with good combustion practicescombustion practices

SOSO22: : Less than minor NSR threshold – not Less than minor NSR threshold – not

subject to the rulesubject to the rule

No AQIA required – NAAQS not threatenedNo AQIA required – NAAQS not threatened

Cyclones – reduce the inlet loading of particulate matter to downstream collection devices, by removing larger abrasive particles

Baghouses - An air pollution control device used to trap particles by filtering gas streams through large cloth or fiberglass bags

LPG - Propane, butane, or propane-butane mixtures derived from crude oil refining or natural gas fractionation

Shrouding – a screen or cover that reduces the amount of particulate matter that flies away at transfer points

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Asphalt Plant – PermitAsphalt Plant – Permit

Emission limits placed on baghouse Emission limits placed on baghouse exhaust for PM, PMexhaust for PM, PM1010, , NOx, VOC, CONOx, VOC, CO

Initial compliance test, with re-tests Initial compliance test, with re-tests every 3 yearsevery 3 years

Baghouse inspection and maintenance Baghouse inspection and maintenance programprogram

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Example 2 Example 2 Minor Source PAL Permit for a Lumber MillMinor Source PAL Permit for a Lumber Mill

Existing operation consists of Existing operation consists of four emissions units: sawmill, four emissions units: sawmill, planing machine, wood planing machine, wood waste-fired boiler, and drying waste-fired boiler, and drying kilnkiln

Existing operation qualifies as Existing operation qualifies as a minor source for all a minor source for all pollutants emittedpollutants emitted

Plant owner intends to get Plant owner intends to get into the millwork business in into the millwork business in the future and add new the future and add new emissions unitsemissions units

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

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Lumber Mill PAL – ReviewLumber Mill PAL – Review

Owner requests minor source PALs for PMOwner requests minor source PALs for PM1010 and and VOC to provide operational flexibilityVOC to provide operational flexibility

Reviewing authority performs control technology Reviewing authority performs control technology review for emissions units that emit these review for emissions units that emit these pollutants:pollutants: PMPM1010 – sawmill, planer, boiler – sawmill, planer, boiler VOC – kiln, boilerVOC – kiln, boiler

No AQIA requiredNo AQIA required

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Lumber Mill PAL – PermitLumber Mill PAL – Permit Permit issued after public participation:Permit issued after public participation:

Minor source PALs (allowable tpy limits) based Minor source PALs (allowable tpy limits) based on the short-term limits at 24 hrs/day, 365 on the short-term limits at 24 hrs/day, 365 days/yrdays/yr

Monitoring to assure compliance with the PALsMonitoring to assure compliance with the PALs• Actual mass emissions Actual mass emissions • For each 12-month period, rolled monthlyFor each 12-month period, rolled monthly• Based on site-specific emission factors Based on site-specific emission factors

developed through testingdeveloped through testing

Owner may make any modifications at the source Owner may make any modifications at the source as long as total emissions stay as long as total emissions stay within the PAL within the PAL limitslimits

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Example 3 Example 3 General Permit for a Natural Gas Gathering FacilityGeneral Permit for a Natural Gas Gathering Facility

EPA Regional Office EPA Regional Office develops a general develops a general permit, going through permit, going through public participationpublic participation

To qualify for coverage, a To qualify for coverage, a new natural gas gathering new natural gas gathering facility may not exceed:facility may not exceed: PMPM1010 – 10 tpy – 10 tpy

SOSO22 – 25 tpy – 25 tpy

VOC – 25 tpyVOC – 25 tpy CO – 95 tpyCO – 95 tpy NOx – 95 tpyNOx – 95 tpy

http://www.aet.com/hugoton.htm

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General Permit – RequirementsGeneral Permit – Requirements

Burn natural gas to comply for PMBurn natural gas to comply for PM1010,VOC, ,VOC, SOSO22, CO, and NOx, CO, and NOx

For SOFor SO22, natural gas must have sulfur , natural gas must have sulfur content less than 154 ppm (w/ periodic content less than 154 ppm (w/ periodic testing)testing)

For CO and NOx, perform an initial For CO and NOx, perform an initial performance testperformance test

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General Permit – CoverageGeneral Permit – Coverage

Owner of planned new facility applies Owner of planned new facility applies for general permitfor general permit

Reviewing authority sends a letter of Reviewing authority sends a letter of approval (or disapproval)approval (or disapproval)

Owner constructs facility as Owner constructs facility as permitted and posts notice of permitted and posts notice of approval at the siteapproval at the site

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Example 4 Example 4 Synthetic Minor Permit for a Wood Furniture FactorySynthetic Minor Permit for a Wood Furniture Factory

Furniture manufacturing factory Furniture manufacturing factory conducts surface-coating conducts surface-coating operations in an ozone operations in an ozone attainment areaattainment area

PTE for VOC is 400 tpy at 24 PTE for VOC is 400 tpy at 24 hrs/day, 7 days/wk (8,760 hrs/day, 7 days/wk (8,760 hrs/yr)hrs/yr)

Actual operations are typically 8 Actual operations are typically 8 hrs/day, 5 days/wk (2,080 hrs/day, 5 days/wk (2,080 hrs/yr)hrs/yr)

http://www.essexcoatings.com/

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Synthetic Minor Furniture Factory – PermitSynthetic Minor Furniture Factory – Permit

Owner requests a synthetic minor permit for VOCOwner requests a synthetic minor permit for VOC

Permit limits operating hours to 5,000 hrs/yr:Permit limits operating hours to 5,000 hrs/yr: Reduces PTE to 230 tpyReduces PTE to 230 tpy Allows for increased utilization at the facilityAllows for increased utilization at the facility

Monitoring - facility must track and record actual Monitoring - facility must track and record actual hours of operationhours of operation

Permit issued after public participationPermit issued after public participation

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Delegation, Public Participation, andDelegation, Public Participation, and Administrative and Judicial Review Administrative and Judicial Review

for for both rulesboth rules

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DelegationDelegation We encourage you to seek delegation of authority to We encourage you to seek delegation of authority to

assist EPA with administration of both rulesassist EPA with administration of both rules

To apply for delegation:To apply for delegation: Your Tribe must be recognized by the Secretary of InteriorYour Tribe must be recognized by the Secretary of Interior Your Tribal laws must provide adequate authorityYour Tribal laws must provide adequate authority You must demonstrate technical capacity and resourcesYou must demonstrate technical capacity and resources

EPA retains enforcement authorityEPA retains enforcement authority

If your Tribe develops a TIP, it may use these rules If your Tribe develops a TIP, it may use these rules as modelsas models

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Public participationPublic participation Draft permit, application, and justification for Draft permit, application, and justification for

permit issuance/denial available for inspection at:permit issuance/denial available for inspection at: EPA Regional OfficeEPA Regional Office At least one location in the area, for example at the At least one location in the area, for example at the

Tribal environmental officeTribal environmental office

Public notice with 30-day public comment period Public notice with 30-day public comment period

Public notice may be posted at locations such as Public notice may be posted at locations such as trading posts, libraries, post offices, etc., as trading posts, libraries, post offices, etc., as appropriateappropriate

Opportunity for a public hearing, if sufficient Opportunity for a public hearing, if sufficient interestinterest

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AdministrativeAdministrative and and judicial reviewjudicial review

You may appeal the final permit if:You may appeal the final permit if: You commented on the draft permit; orYou commented on the draft permit; or The grounds for appeal occurred after the The grounds for appeal occurred after the

public comment period endedpublic comment period ended

First, you must appeal to EPA’s First, you must appeal to EPA’s Environmental Appeals Board (EAB)Environmental Appeals Board (EAB)

If denied by EAB, you may appeal to If denied by EAB, you may appeal to Federal CourtFederal Court

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What kind of comments did What kind of comments did USEPA receiveUSEPA receive

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Who CommentedWho Commented

26 Tribe/Tribal group comments (T)15 industry/industrial group comments (I)8 private citizen comments7 State/local air agency comments (S/L)1 environmental group comment (E)57 total comments

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What were some of the commentsWhat were some of the comments

The minor NSR rule should reflect the The minor NSR rule should reflect the minor NSR rules in the surrounding minor NSR rules in the surrounding States to “level the playing field.”States to “level the playing field.”

Modifications should be defined as an Modifications should be defined as an increase in actual instead of allowable increase in actual instead of allowable emissions Minor NSR thresholds should emissions Minor NSR thresholds should be increasedbe increased

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What were some of the commentsWhat were some of the comments

Comments on proposed case-by-case Comments on proposed case-by-case Control Technology Review ranged from Control Technology Review ranged from support for the proposal to opposition to support for the proposal to opposition to any control technology requirement. any control technology requirement. Several commenters prefer a more Several commenters prefer a more definitive system with either standard definitive system with either standard requirements for specific types of sources requirements for specific types of sources (presumptive BACT for oil & gas (presumptive BACT for oil & gas production sites mentioned frequently by production sites mentioned frequently by industry commenters) or a standardized industry commenters) or a standardized process for determining control process for determining control requirements. requirements.

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What were some of the commentsWhat were some of the comments

Permit issuance process is too lengthy; Permit issuance process is too lengthy; streamlined process needs to be developed.streamlined process needs to be developed.

Not enough consultation with stakeholders by Not enough consultation with stakeholders by EPA in developing these rules. Tribes and EPA in developing these rules. Tribes and industry want to be more involved and have industry want to be more involved and have more input in the process.more input in the process.

The oil & gas industry commented that the The oil & gas industry commented that the proposed minor NSR rule will be too proposed minor NSR rule will be too burdensome (and needs to be like surrounding burdensome (and needs to be like surrounding States).  States). 

EPA needs to have the resources in place EPA needs to have the resources in place immediately to implement the program without immediately to implement the program without delaying projects. delaying projects. 

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Appendix AAppendix ASSIPs, TIPs, and FIPsIPs, TIPs, and FIPs

Implementation PlansImplementation Plans – a set of programs and regulations developed by the – a set of programs and regulations developed by the appropriate regulatory agency in order to assure that the NAAQS are attained 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, 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 depending on which has jurisdiction in a particular area. For that reason, there are three kinds of implementation plans:are three kinds of implementation plans:

State Implementation Plan (SIP)State Implementation Plan (SIP) – plan that reflects each state’s particular – plan that reflects each state’s particular needs and air quality issues, but that must meet certain federal standards. The 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 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 submit an approvable SIP within the schedules provided in the CAA, sanctions are imposed on the state.are imposed on the state.

Tribal Implementation Plan (TIP)Tribal Implementation Plan (TIP) - a tribe’s plan for improving for maintaining or - a tribe’s plan for improving for maintaining or improving its air quality. A TIP can be designed to respond to the tribe’s 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 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 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), amended in 1990 and as implemented through the Tribal Air Rule (TAR), provides for tribal implementation of CAA programs.provides for tribal implementation of CAA programs.

Federal Implementation Plan (FIP)Federal Implementation Plan (FIP) – plan that assures that the NAAQS are – plan that assures that the NAAQS are attained and maintained when a state fails to or a tribe elects not to develop 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 their implementation plan respectively. EPA has the responsibility under the CAA to ensure that public health and the environment are protected.CAA to ensure that public health and the environment are protected.

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Appendix BAppendix BAllowable EmissionsAllowable Emissions

Allowable emissionsAllowable emissions – the emissions rate calculated – the emissions rate calculated using the maximum rated capacity of the source using the maximum rated capacity of the source (unless the source is subject to federally (unless the source is subject to federally enforceable limits which restrict the operating rate, enforceable limits which restrict the operating rate, or hours of operation, or both) and the most or hours of operation, or both) and the most stringent of the following:stringent of the following:

– Applicable standards as set forth in 40CFR parts 60 and Applicable standards as set forth in 40CFR parts 60 and 61;61;

– Any applicable SIP or TIP emissions limitation, including Any applicable SIP or TIP emissions limitation, including those with a future compliance date; orthose with a future compliance date; or

– The emissions rate specified as a federally enforceable The emissions rate specified as a federally enforceable permit condition, including those with a future permit condition, including those with a future compliance date. compliance date.