Tribal Minor NSR

1. Tribal Minor NSR Laura McKelvey OAQPS April 2014

2. Major Topics • Applicability • Registration requirements • Permitting requirements • General permits and permits by rule

3. Applicability

4. Applicability Bins • Major source – apply for PSD or NA NSR permit • Synthetic minor – need limits to get out of major NSR • True minor - need to register by March 2013 • Too small to be a minor – no action required

5. Applicability for Minor NSR • Applies to sources of “regulated pollutants” that are not major • Applies to sources with PTE below major source thresholds for PSD and NA NSR • Can be used to create synthetic minors • Does not apply to sources if PTE is below the minor source thresholds

6. Minor Source Applicability Thresholds

7. Applicability Issues for Minor NSR • Are some units or activities at the facility “exempt?” • Do fugitive emissions count towards PTE? • How do you calculate PTE when a minor source makes a modification? • Exempted sources (see appendix)

8. PTE and Fugitive Emissions • Fugitive emissions: those emissions which could not reasonably pass through a stack, chimney, vent, or other functionally equivalent opening. Examples: • Aerosols • Quarries • Storage piles • Leaks or releases from valves, pumps, compressors, flanges

9. When to Consider Fugitives in PTE Calculation • Include fugitive emissions, to the extent they can be quantified, if the source belongs in one of the 28 source categories list at 40 CFR part 51, Appendix S, paragraph II.A.4(iii) or 52.21(b)(1)(iii) • Examples of listed source categories: • Fossil fuel-fired steam electric plants of more than 250 million Btu/hr heat input • Kraft pulp mills • Portland cement plants • Taconite ore processing plants

10. PTE and Emergency Generators • Applies in lieu of approved exemption for emergency generators • May use default assumption of 500 hours per year instead of 8,760 hours per year • <500 hours per year may be used when justification can be provided

11. PTE and New Sources • For a new source, calculate the source’s total PTE for each pollutant and see if it meets or exceeds the minor source applicability thresholds • If any threshold is exceeded, source is subject to permitting requirements and must apply for a permit (if construction commences after 9-2-14)

12. Registration and Permit Application Requirements for Sources in Indian Country

13. Timing Issues • Minor sources do not need to apply for permits for new construction or modifications unless construction starts after 9-2-14 • Exception: minor modifications at major NSR and PSD sources

14. PTE and Modified Sources • For modifications at existing minor sources, use the allowable-to-allowable test: • Emissions increase = new allowable minus old allowable • For an emissions unit that was previously unpermitted or is being added, new allowable = PTE • For an emissions unit subject to an existing permit, old allowable = allowable limit in the permit. • If emissions increase meets or exceeds threshold, source must apply for permit for the modification (if construction commences after 9-2-14)

15. Exempted Modifications • These modifications are not subject to minor NSR: • Routine maintenance, repair or replacement • Routineness is determined on a case-by-case basis • An increase in the hours of operation or in the production rate that would be allowed under the existing permit • Change in ownership

16. Registration Requirement

17. Sources that Must Register by 3-1-13 • Existing true minors (commenced construction before 8-30-11) • New or modified true minor sources that commence construction after 8-30-11 and before 9-2-13 • These sources do not ever need a permit unless they modify

18. True Minors that Commence Construction After 9-2-14 • New sources or existing sources that plan minor modifications after 9-2-14 must apply for a minor source permit

19. Registration Forms: • Available at http://www.epa.gov/air/tribal/tribalnsr.html • EPA has developed emissions calculators to help applicants estimate their emissions for certain source categories • Regional Offices may require information in addition to the information contained in the emissions calculators

20. EPA’s Emissions Calculators • EPA has made spreadsheet-based calculators available at http://www.epa.gov/air/tribal/tribalnsrcalculators for: • Gas stations, dry cleaning operations, auto body shops, sawmills, landfill operations, hot-mix asphalt plants, concrete batch plants, printing operations, rock crushing and stone processing operations, surface coating operations, degreasers/solvents/cleaners, industrial boilers, stationary internal combustion engines • Output Summary Printout page indicates whether the source needs to register

21. EPA Emissions Calculators • EPA has made spreadsheet-based calculators available at http://www.epa.gov/air/tribal/tribalnsrcalculators. • Calculators are available for some of the common source categories in Indian country: • Gas stations, dry cleaning operations, auto body shops, sawmills, landfill operations, hot-mix asphalt plants, concrete batch plants, printing operations, rock crushing and stone processing operations, surface coating operations, degreasers/solvents/cleaners, industrial boilers, stationary internal combustion engines • Output Summary Printout page indicates whether the source needs to register

22. EPA Emissions Calculators • Information required • Facility contact information • Attainment status of source’s area • Facility usage (hours of operation, fuel usage, number of units processed, etc.) • Emission controls and operational restrictions • Filling in the above information leads to completed Total Emissions and Output Summary Printout pages

23. Permitting Requirements

24. Major Requirements of Minor NSR Rule • 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

25. Kinds of Minor NSR Permits • Source-specific for true minor • Source-specific for synthetic minor • General Permit • Permit by Rule (proposed)

26. Minor NSR Permitting Process

27. Application Process – True Minor • Fill out New Source General Application Form • Narrative description of the production process, with flow chart • Processing, combustion, handling, storage, and emissions control • List of emissions units • Types and quantities of fuels and/or raw materials to be used • Air Quality Impact Analysis (in some cases) • Identify Endangered Species • Identify resources protected by National Historic Preservation Act

28. Air Quality Impact Analysis (AQIA) aka Modeling Analysis • EPA will require an AQIA if: • There is concern about keeping an area in attainment status, or • It’s necessary to accurately assess the source’s adverse air quality effects • If AQIA reveals that source could cause or contribute to a NAAQS/PSD increment violation, such adverse impacts must be reduced before the permit is issued

29. AQIA • Factors that can make AQIA requirement more likely: • Poor dispersion characteristics such as rain caps, horizontal stacks, fugitive releases, or building downwash • Complex terrain • Area has existing air quality concerns

30. Endangered Species Act (ESA) Analysis • ESA requires EPA to ensure its permits will not likely jeopardize listed species or critical habitats • Permit applicants can get local listed species from http://www.fws.gov/endangered/ • If required, EPA will consult with U.S. FWS and/or NOAA before permit issuance

31. National Historic Preservation Act (NHPA) Analysis • NHPA requires EPA to ensure its permits will not likely affect cultural resources. • Permit applicants can get listing of local resources at http://nrhp.focus.nps.gov/natreghome.do?searchtype=natreghome • If required, EPA will consult with State and/or Tribal Historic Preservation Officers.

32. Synthetic Minor Permits • Two forms to fill out • New Source General Application • Synthetic Minor Limit Application • Needs to include: • The requested limitation • How the limitation will affect actual or potential emissions • Monitoring, recordkeeping, and reporting to assure compliance with the limitation • Should include EPA Reference Methods when applicable • Should include frequency, methods, and quality assurance.

33. Synthetic Minor Permits • Needs to include (cont’d): • Description and estimated efficiency of pollution control equipment, if any • Calculations or test results that are the basis of the emissions estimates • Estimates of GHG pollutants

34. Public Notice • Public notice announces the 30-day opportunity to review the draft permit and/or request a public hearing • Unlike state NSR rules, notice of tribal NSR minor source permits must be mailed to: • Indian governing body • State/local air pollution authorities with jurisdiction

35. General Permits and Permits by Rule

36. Basics on General Permits (GPs) and Permits by Rule (PBR) • Protect air quality while simplifying the permit process for similar minor sources • In the minor NSR context, these are preconstruction permits that cover pollution sources that have similar pieces of equipment and similar control requirements • Both contain a standard set of requirements that apply to specific equipment or activities

37. More Basics on GPs and PBR • Generally intended to cover smaller sources of emissions • Facility must obtain permit before construction and comply with terms when operating • They are optional; facility can choose to go through the regular minor NSR permitting process instead

38. More Basics on GPs and PBR • Development: • Standardized terms and conditions are developed for a category of sources or pollutant-emitting activity • Public notice and comment occurs before EPA finalizes the permit • A final GP or PBR is final agency action • Permit terms: • Emission limits/requirements for control equipment, monitoring, record keeping and reporting requirements, etc.

39. Process for Source to Obtain Coverage • Source applies for coverage under the “umbrella” of the pre-established GP or PBR • Application requires less information than for a source-specific permit • Source must submit a copy of its request for coverage to the Tribe when it submits the request to the reviewing authority

40. Approval and Notification • Reviewing authority will issue an approval of the request for coverage if source qualifies • Reviewing authority will notify the public if it issues an approval of the request for coverage • Public can challenge whether sources qualifies for the GP or PBR, but may not challenge the terms and conditions of the permit • Public may be unaware of their review opportunities until the facility applies for coverage, which is too late to comment on the permit itself

41. General Permits and PBR will be Developed in Stages • Categories in Bundle #1 • Gas dispensing facilities • Auto body and miscellaneous surface coating • Petroleum dry cleaners • Rock crushing facilities • Hot mix asphalt plants • Landfills • Categories in Bundle #2: • Boilers • Engines • Printing Operations (including degreasing/solvent cleaning) • Stone Quarrying and Processing • Concrete Batch Plant • Saw Mills • Bundle #3: Oil and gas operations and production

42. Public Involvement Process • To establish PBR, EPA will conduct a rulemaking (with opportunity for public comment and to request a hearing) • To establish GPs, EPA will conduct a rulemaking (with opportunity for public comment and to request a hearing) or will provide notice and 30-day comment period and opportunity to request a hearing

43. Hands On Activity – Draft Auto Body Permit • Look through the permit application • Look for the emissions limitations • Find the corresponding Monitoring and record keeping requirements • Discuss how the information in the application will be used to determine if the potential new source can use the general permit.

44. Summary

45. Summary • Minor NSR applies to sources with PTE below major source thresholds for PSD and NA NSR • Minor NSR permits can be used to create synthetic minors • Only true minor sources need to register • True minors don’t need to apply for a permit unless they construct or modify after 9-2-14 • General permits and permits by rule reduce the time, expense and complexity of preparation and review of permit applications but have different review opportunities compared to regular minor source permits

46. Questions to Ask Related to Permit Review • How should my tribe prioritize review of synthetic minor and/or minor permits? • If a priority, how should the review(s) be focused? • Geographic areas • Impact on cultural resources or endangered species • Pollutant of most concern • Other concerns • How should my tribe prioritize review of registrations to assure completeness and accuracy?

47. Appendix

48. Exempted Units and Activities Exempt units and activities: • Mobile sources (Note: mobile ≠ portable) • Ventilating units for comfort that do not exhaust air pollutants into the ambient air from any manufacturing of other industrial processes • Noncommercial food preparation • Consumer use of office equipment and products • Janitorial services and consumer use of janitorial products • Internal combustion engines used for landscaping purposes • Bench scale laboratory activities, except for laboratory fume hoods and vents

49. Proposed Exemptions • EPA’s proposed amendments to tribal NSR rules would add numerous exemptions, including: • Some emergency generators • Stationary internal combustion engines <50 hp • Furnaces or boilers used for space heating • Uses only gaseous fuel • 10 mmBTU/hr heat input in AA, 5 mmBTU/hr in NAA • Single family residences and residential buildings with four or fewer dwelling units • Air condition units used for human comfort that do not exhaust air pollutants generated by manufacturing or industrial processes. • Forestry and silvicultural activities