Presentation on theme: "Proposed NSR Rules for Indian Country"— Presentation transcript:
1 Proposed NSR Rules for Indian Country EPA - New Source ReviewProposed NSR Rules for Indian CountryRaj Rao, Jessica Montanez, Wendy NamisnikOAQPS, USEPA
2 Here’s what we will cover Purpose of NSR rules for Indian countryHighlights of the proposed minor NSR ruleExamples of minor NSR permittingHighlights of the proposed major NSR ruleExample of major NSR permittingDelegation, public participation, and administrative and judicial reviewProcess and timeline for final rulemakingCommenting on the proposed rules
3 First, let’s recap NSRPreconstruction permit program to manage growth in a controlled mannerDesigned to protect public health and welfare as new pollution sources are built or existing sources are modifiedRequires most new sources to be designed and built clean
4 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 NSRNonattainment major NSREPA does currently implement the PSD program in Indian countryProvide a cost-effective and timely permitting mechanismLevel the economic playing field with States
5 How will Tribes benefit from the proposed Federal NSR rules? Protect Tribal sovereignty from State incursion by clarifying jurisdictionProvide equal opportunity for economic developmentEstablish clarity of requirements for sourcesCreate a timely mechanism for obtaining permitsEnsure that resources are protected through controlled growthBuild Tribal capacitySupply potential model for Tribal Implementation Plan (TIP) developmentSee appendix A for information on SIPs, TIPs, and FIPsAllows tribes to administer the program through delegation
7 What does the minor NSR rule apply to? New minor sourcesSources with PTE equal to or above the minor NSR thresholds, but less than the corresponding major NSR thresholdModifications at existing minor/major sourcesWhen there is a physical or operational change at an existing source that is not subject to major NSREmissions 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) sourcesMajor sources seeking to limit potential to emit below the major source thresholdProposed rule includes flowcharts to help!
8 Minor NSR thresholdsThresholds: cutoffs below which minor NSR does not apply to a new minor source or modificationThresholds are lower in nonattainment areas. For example:Ozone attainment areas – 10 tpy NOxOzone nonattainment areas – 5 tpy NOxAn 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 NAAQSNOx thresholds are just an example – rule includes thresholds for all pollutants.Percent of sources that are below the minor NSR thresholds ranges from 42% for VOC to 76% for SO2. Based on analysis of sources listed in the National Emission Inventory (NEI).
9 Minor NSR thresholds (continued) Regulated NSR PollutantFor Nonattainment Areas (tpy)For Attainment Areas (tpy)Carbon monoxide (CO)510Oxides of nitrogen (NOx)5; (0 for Extreme Ozone Areas)Sulfur dioxide (SO2)Volatile organic compounds (VOC)2; (0 for Extreme Ozone Areas)PMPM-101PM-2.50.63Lead0.1FluoridesNASulfuric acid mist2Hydrogen sulfide (H2S)Total reduced sulfur (including H2S)Reduced sulfur compounds (including H2S)Municipal waste combustor emissionsMunicipal solid waste landfills emissions
10 What are the minor NSR rule requirements? Main requirements are:Case-by-case control technology reviewAir Quality Impact Analysis (AQIA) in rare casesMonitoring, recordkeeping, and reporting as needed to assure compliancePublic participation, administrative and judicial reviewTribes may implement their own minor NSR program when EPA approves their Tribal Implementation Plan (TIP).Tribes may request delegation of EPA’s NA minor NSR program.
11 Minor NSR permitsTypical/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 unitsBeneficial for sources needing flexibility to make rapid changesRequires increased monitoringGeneral 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 sourcesEU limits and PAL limits are for each pollutant. A source can have a mix of PALs and EU-specific limits for different pollutants.General permits can be developed for similar sources or EUs that have similar characteristics. A GP sets out identical requirements for all such sources. Reduces the administrative burden on the source and the reviewing authority.GPs will be developed by the EPA Regional Offices – none have been developed yet. You should let your Regional Office know what types of sources need GPs in your area.Synthetic minor permits can be for criteria pollutants or for HAPs. They address a specific pollutant (or can be for multiple pollutants).
12 How would a source obtain a minor source permit? Source submits a complete application (refer to 40 CFR (a))The reviewing authority:Will perform a control technology review on a case-by-case basisMay require an Air Quality Impacts Analysis (AQIA) if they believe the source will have a significant impact on the NAAQSThen, the reviewing authority:Must determine within 45 days if application is complete enough to commence a technical review or request additional informationIf 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 completeWill develop a draft permit and provide public notice seeking comments on the draft permit for a 30-day period once the application is completeWill 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
13 Let’s apply what we’ve learned about minor NSR with some practical examples
14 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 PMEmit PM, CO, NOx, SO2, and VOCROADWAYS
15 Asphalt Batch Plant – Review 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.In this location, possible controls for fugitives from aggregate piles is not cost effective enough to be justified
16 Asphalt Batch Plant - Permit Reviewing authority determines that AQIA is not needed.Reviewing authority develops draft permit.Permit is subject to 30-day public comment period.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 programEmit PMEmit PM, CO, NOx, SO2, and VOCROADWAYS
17 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 flexibility.Minor source PALs will be established based on allowable emissions in tpy.Waste chips-fired boilerEmit PM10Emits PM10 and VOCsEmits VOCsEmits PM10
18 Lumber Mill PAL – Review and Permit Reviewing authority reviews source information and performs case-by-case control technology review. It determines that no controls are required for:PM/PM10 and VOCsReviewing authority determines that AQIA is not needed.Reviewing authority develops draft permit.Permit is subject to 30-day public comment period.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 limitsMonitoring will be done to assure compliance with the PALs based on:Actual mass emissions for each 12-month period, rolled monthlyOn site-specific emission factors developed through testing
19 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 tpySO2 – 25 tpyVOC – 25 tpyCO – 95 tpyNOx – 95 tpy
20 General Permit for Natural Gas Gathering Facility – Review and Permit 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.Reviewing authority determines that AQIA is not needed.Owner of planned new facility applies for coverage under the general permit. It includes:An initial performance test for CO and NOx.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.
21 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.
22 Wood (Plywood) Furniture Factory - Permit 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.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 tpyAllows for increased utilization at the facility because the facility is actually operating at 2,080 hrs/yr.Permit is subject to 30-day public comment period.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.
24 What does the major nonattaiment NSR rule apply to? Applies to:New major sources with PTE equal to or above the major NSR thresholdsMajor modifications - any physical or operational change at a source that would result in a significant net emission increase of any regulated NSR pollutantMajor sources would be subject to the existing nonattainment major NSR rules for areas lacking an approved Part D plan – 40 CFR part 51, Appendix SProposed rule includes flowcharts to help!
25 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 sourceOffsets at prescribed ratios – emissions reductions to offset the proposed increase from projectPublic participation, administrative and judicial reviewTribes may implement their own major NA NSR program when EPA approves their TIPTribes may request delegation of EPA’s NA major NSR program.
26 Major NSR Options for offset waiver Economic Development Zone (EDZ) optionMajor 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 (HUD).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 EDZTribe demonstrates that the new permitted emissions will not interfere with attainment of the applicable NAAQS by the applicable attainment date.
27 Major NSR Options for offset waiver (continued) Appendix S, Paragraph VI optionSource exempt from offset requirement until attainment date for NAAQS passesCriteria for this waiver:Source will comply with implementation plan limits and will not interfere with the attainment dateEPA determines that these criteria are satisfied and publishes this finding in the Federal Register
28 Let’s apply what we’ve learned about major NSR with an example
29 Which pollutants are subject to major nonattainment NSR permitting? Area innonattainmentfor SO2Area inmarginal nonattainmentfor OzoneFacts:Volatile Organic Compounds (VOCs) are ozone precursors. Ozone is the criteria pollutant, not VOCThe tons per year (tpy) in the plume are the plant’s potential to emit these pollutants.30 tpy PM1050 tpy VOC500 tpy SO2Area inattainmentfor NOxNew Plant
30 Example SolutionDetermine 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 greater than 100 tpy. Therefore, SO2 is subject to nonattainment major NSR.VOCs are ozone precursors and since the area is in marginal nonattainment for ozone, we have to evaluate this pollutant for the major nonattainment NSR program. In this case, since the emissions of VOCs are lower than 100 tpy, the plant is not subject to nonattainment major NSR for VOC.The NOx emissions are not evaluated for nonattainment major NSR because the area is in attainment for NOx.Remember, the plant expects to emit:SO2=500 tpyVOC=50 tpyNOx=30 tpyAnd the areas are designated:SO2=NonattainmentOzone=NonattainmentNOx=AttainmentNote that the source is a major source for PSD purposes, even though it has a major emission level only of a nonattainment pollutant.
31 Delegation, Public Participation, and Administrative and Judicial Review for both rules
32 DelegationWe encourage you to consider delegation of authority to assist EPA with administration of both rulesTo apply for delegation, the tribe:Must be recognized by the Secretary of InteriorLaws must provide adequate authorityMust demonstrate technical capacity and resourcesEPA retains all enforcement authorityIf the Tribe develops a TIP, it may use the final Tribal Minor and Major NA NSR rules as models
33 Public participationDraft permit, application, and justification for permit issuance/denial available for inspection at:EPA Regional OfficeAt least one location in the area, for example at the Tribal environmental officePublic notice with 30-day public comment periodPublic notice may be posted at locations such as trading posts, libraries, post offices, etc., as appropriateOpportunity for a public hearing, if sufficient interestPublic notice gives information on the proposed source/modification, contact persons, and location of the draft permit/application.
34 Administrative and judicial review You may appeal the final permit if:You commented on the draft permit; orThe grounds for appeal occurred after the public comment period endedFirst, the person must appeal to EPA’s Environmental Appeals Board (EAB)If denied by EAB, the person may appeal to Federal CourtReview actually is available for the final permit or the decision to deny a permit.The source may appeal too.The EAB review is administrative review and Court review is judicial review.
36 First, you must understand the NSR Tribal rule making process and timeline Proposal published in the Federal Register and public comment period commenced on August 21, 2006.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.WE ENCOURAGE YOU TO COMMENT!Final rule will be published around:Fall 2007
37 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 appropriate?Should all existing minor sources be required to:Register onlyBe subject to the ruleBe exempt from the ruleShould only existing synthetic minor sources be subject to the rule?You are also encouraged to comment on any other issues you find relevant!
38 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!
39 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!
40 EPA wants your comments on the following specific major source issues: Appendix SShould 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 yearsCompliance certificationShould 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!
41 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 optionIs 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 optionIs 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!
42 Finally, please submit your comments on the proposed NSR rules Submit your comments, identified byDocket ID No. EPA-HQ-OAR ,using one of the following methods:Federal eRulemaking Portal: Follow the on-line instructions for submitting commentsFax:Mail: Attention Docket ID No. EPA-HQ-OAR , U.S. Environmental Protection Agency, EPA West (Air Docket), 1200 Pennsylvania Avenue, Northwest, Mailcode: 6102T, Washington, DC 20460
43 Please take the time to submit your comments! ConclusionThe 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 or
44 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.
45 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; orThe emissions rate specified as a federally enforceable permit condition, including those with a future compliance date.