Navajo Air Quality Control Program

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

4. NAVAJO AIR QUALITY CONTROL PROGRAM

5. NAVAJO EPA Air Quality/Permit Program Organization Chart

7. PART 71 OPERATING PERMIT PROGRAMDELEGATION 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: • Leupp • Dilkon • Navajo (Cornfields, AZ) • Window Rock • Gallup (Tohatchi, NM) • White Rock • Transwestern Pipeline Compressor Stations at: • Leupp • 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 AgreementPower 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 SO2 control and specific burners designed for NOxcontrol. • 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 NOxcontrol

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)

15. Permit Process

16. Title V- 40 CFR Part 71 Permit Content • Source Identification • Company name, address, and location, etc • Owner/ Operator • Process and Operation of Facility • SIC Code and AFS Plant Identification Number. • Requirements of Specific Units • New Source Performance Standards ( NSPS General Provisions) • Federal Implementation Plan Requirements ( FIP e.g. NGS, FCPP) • Acid Rain Requirements • Operation Flexibility • Facility Wide or Generic Permit Condition • Testing Requirements • Recordkeeping Requirements • Reporting Requirements • Protection of Stratospheric Ozone • Asbestos from Demolition and Renovation • Compliance Schedule

17. Title V- 40 CFR Part 71 Permit Content cont’d IV.Title V Administrative Requirements • Part 71 Fee Payment • Compliance Certifications • Minor Permit and Significant Modifications • Administrative Amendments • Inspection and Entry Statement of Basis (S.O.B): Is an Engineering Document. • Discussion of the Monitoring and Operational Requirements • Discussion of Applicability and Exemptions • Insignificant Activities • New Emission Units and Control Equipment • Emission Calculation • PSD Applicability

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

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 : • PM10 as a surrogate for PM2.5 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.org Phone: 928-729-4096