UNITED STATES ENVIRONMENTAL PROTECTION AGENCY REGION 8 1595 Wynkoop Street DENVER. CO 80202-1129 Phone 800-227-8917 http://www.epa.govlregion08

Ref: 8P-AR 

### DEC 2 3 2009
The Honorable Matthew Box Chairman, Southern Ute Indian Tribe P.O. Box 737 Ignacio, CO 8t137
Re: Intent to Approve Southern Ute Indian Tribe's Clean Air Act Title V Program
DearChairmanBox:
Thank you for submitting the Southern Ute Indian Tribe's (Tribe's)40 C.F.R. part 70 Clean AirAct (CAA) operatingpennit program to the 

### U.S. Environmental Protection Agency Region 8 (EPA), on January20.2009.

. 

### We have completed ourreview 

### oftheTribe's CAATitle 

### V program and enclosed with this letter are findings we have identified that still need to be addressed (see Attachment A). We have categorizedourcomments to identify findings that: 1) mllst be corrected before full progmm approval can 

### be granted; and

### 2) are not considered major findings for program approval, but shouldbe addressedto strengthen the permit program. EPA is confident that the findings identified inAttachment A can

### be resolved and will ensure astronger, moreeffective Title V operating permit program. We intendto work with theTribeto addressthe ddiciencies in atimely manner sothat we can proceed toward program approval.
Prior to publishing 

### aNotice ofProposed Rulemaking 

### in the Federal Register, all pertinent corrections must be finalized, induding adoption by the Southern Ute Indian Tribe/State ofColorado Environmental Commission, and submitted to 

### EPA. We will then reviewtheprogram changes andpublishthenotice for a 30-day comment period. Fol1owing the closureofthe 30-daycommentperiod, EPA will address public comments 

### in orderto publish a Notice ofFinal Rulemaking (NFR). Also, the Tribe'sTreatment in the Same Manner as a State (TAS) regulatory application has been determined complete. It is ourintention that the 

### flnal TAS decision document be signed at the sametime as theNFR in 2010.As !1\)led in your August ), 2009 lener. the Iribe i:ltl'nJs to incorpnrate by retl?rCllCC certain )JC\\ Source Perlcmnance Standards and t<ationa1 Emission Standards for Ha/ardous Air Pollutants 

### fcckraI regulations into the Reser\ation Air (nde. The Tribe plans 

### to rellucst delegation fmm EPA for these regulations and 

### we will continue to work with the Tribe on this request 

### as a patt

### ofthe Title V 

### program process. Finally, EPA would like to congratulate the Tribe on having a**~trong.** stable air program, The Tribe's air program has exhibited responsiveness and professionalism throughout this program development and approval process. EPA looks forward to the continued program stability and continuity ofstafras the Tribe takes on this one ofakind prog.ram. I

## ryou have any qucstions, plca<;c contact me. or have a membc:- or

### your staffcontact Callie /\. Videtich, 

### Director. Air 

### Program. at 

### (303) 312-6434. Sincerely.

Carol Rushin**AClin~.** 

### Rt.:gional Administrator
Llll:lusure

cc: Janclll: Doughty, Director. 

### Der. ofJustic<: & 

### Regulatory, Southern Ute Indian Tribe Mark Torres, Acting Environmental Director, Southern Gte Indian Tribe James Temtt:, Air Program Manager. Southern 

### Ute Indian Tribe Brenda 

### JarrelL Air Program. Southern Ute Indian Tribe Sam 

### Maynes, General Counsel. Southern Ute 

### Indi:m Tribe

2

### AttachmentA- Southern·Ute Indian Tribe (Tribe's) Part 70 Permit Program Review Findings 

### 1. The following changes mustbe made to the Tribe'sReservation Air Code (RAe) 

### priorto EPA's 

### final Pan 70 Program approval.
I. Add**th~** 

### tl)llowing two items to the**Trib~'s** 

### Pa11 70 Program Fee Demonstration pursuant to 40 CFR Part 70.4(b)(81: a. 

### Outline the 

### delineation between 

## seIT Air Program and Commission. citing Air Pmgram 

### as the "lead agency" in Section 

### 1. b. Table:2. 

### page 7. shO\

....s

### estimatcd annual cost broken down for**tlm~e** 

### years. Pursua.nt to 40 eFR 70.4 

### it should be 

### four ye<lrs 

### ') Include national1y-stand:1rdizcd fOnllS 

### for Acid Rain portions ofpermit applicmions and compliance plans. These forms are required by regulation under title IV ot'the Clean Air Act ('AA), 

### to be available along with Tribe's permitting applications.
3. The following Part 70 definitions have been omitted from the Tribe's RAC'. Please add the following tenns defined in 40 eFR 

### Part 70.2: a. "Act'" 

### b. "Applicable requirement"' c.**"D~signated** 

### Representative" d. "Part 70 program" e. "Permit moditlcation" f. 

### "Permitting authority" (ifthis tt:nn is adopted. should replace "The Trihe" throughout the RAe)


### 4. l'he following RAe 

### definitions should be moditied to more c::lose:y represent the detlnitions in 40 CFR Part 70. Be]o\v 

### are suggested revisions [0 RAe 

### uefinitions based on .:to eFR 

### 70.2: :l. 

### "/\l'fected source" shall have 

### the meaning given tll it 

### in the regulations promulgated under title IV ofthe Act. b. "Draft Permit" means a versillll

# oran operuting permit that the Tribe offers for public participation under 2-109 

### and affected program reviewunder .2-108. 

### c. "Emissions allowable under the permiC' means: (el) 

### any**t~d.erally** 

### entorceabk perlll!t term or condition that establishes an emission limitation (including a work practice standard) determined at issuance or renewal to be required by an applicable requirement; or (b) 

### any tederally enforceable emissions cap that a source has assumed to avoid an applicable requirement to 

### ,vhieh itothef\vise would be subject. d. "Emissions unit" means any part or activity ofastationary source that emits or has the potential to 

### emit allY 

### regulated air pollutant or any pollutant listed under section 1 12(b) 

### ofthe CAA. This ,em1 is not meant to alter or affect the ddinition ofthe term "unit"**t~lf** 

### purposes oftirle IV ofthe Act.e. "Final Permit" means the version ofan operating permit issued by the Tribe that has completed all revievv procedures required by 40 eFR Parts 70.7 and 70,8. f. '";,,1ajor Source (b)" means a major stationary source under § 302 ufthe CAA. 42 eSc. §7602. that directly emits or has the potential to cmit 100 TPY or more ofany regulated air pollutant (including any major source offugitive emissions of any such pollutant. as determined by mle by the Administrator). The fugitivc emissions ofa stationary soun;e shall 110t be considered in detennining whether it is il major stationary source for the purposes of

### 302(j) ofthe CAA, unless the source belongs to one ofthe following categories ofstationary sources. g. '"Operating pennie and "pernliC (unless the context suggests otherwise) means any permit or g.roup 

### ofpennits covering 

### a source that is issued. renewed. modilied. or revised pursuant to this code. or any pem1it issued. renewed. amended. or revised to a Pali 70 source pursuant to 40 CFR Part 70. h. "Part 70 source" means all sources subject to 40 CFR Part 70. 1. "Potential to emit"' means the maximum capacity ofa stationary source to emit any air poJ]utant under its physical and operational design. Any physical or operational limitatinn on the capacity ofa source to emit an airpollutant. inc\uclint! air pollution control equipment and restrictions on hours ofoperation or on the type or amount ofmatcrial combusted. stored. or processed. shall be treated a:; pan ofits design ifthe limitation is federally enforceable. This tenn does not alter or alIcet the use ofthis term f(JI" any otherpurposes under the Act. orthe tCn11 "capacity 

### tZlCtor" as llsed in title 

### IV ofthc Act or the regulations promulgated thercunder. .I. "Stationary Source" means any building. structure. facility. or installation that emits ormay emit any regulated air pollutant or any pollutant listed under sedion 1I2(b) ofthe Act.
5. Ddincthe lem1 "unit'" per the Acid Rain provisions found at 40 eFR 72.:'. This definition is used throughout the RAe as a tenl1 used to describe an "emission unit." For cJariJication purposes please change any use ofthe teml "unit'" to "emission unit" ""hen describing non Acid Rain provision(s).
<1. Please rel1WVC 

### RAe 2-104(2)(iii) as the cOITesponding Citation in40 

### erR 70..1(b)(3) has been reserved aDd is no longer applicable.
7. fhe following 40 erR provisions have been omitted 

### ii'o111 the Tribe's RAC and are requircd t(ll' progr<U11 approval: a. 70.4(dH3)(xiJ*- Approvals ofAlternative Operating Scenarios (A05) b. 70.6(aH 1Hiii)- Applicable Tmpkmentation Plans c, 70.7(a)(3)- Action on an Application J. 70.7(a)(S)- Actinn on Application e. 70.7(a)(6)- Action on Application f. 70.7(c)(2)- Permit Renew'al and Expiration g. 70.7(g)- Reopening Jl)f Cause h. 70.7(g)(5)- Reopening for Cause



### 2l. 70.7(g)(5)(i)- Reopening t(lr Cause I· 70.7(g)(5)(ii)- Reopening for Cause k. 70.8(c)(.1)· EPA Objection 

### 8. EPA**re~ommends** 

### adding a petmit conditionrequiting pem1ittee

### to comply 

### with all federally enforceable pem'llt conditions as well as ·'tribe only" conditions. See suggesteu RAe language: 

## RAe 2-110(3)(a) the perminee shall comply with all tenns and conditions ofthe permit: nonct)mpliance with any tederally enforceable or tribe only pennit**~onditiol1s** constitutes a violation ol'this code and the C1\A. and any pennit noncompliance constitutes growlds 

### for cnf<m:emcnt action, permit termination. revocation and reissuance. orrevision orf()r denial 

### ofa permit renewal application.
9. Please addthe language "orother authorized represenHltive" to R.AC :2-110(9)(h) as EPA will still need access to these facilities for inspection,
10.**Th~** 

### reference in the 11r5t sentence 

### ofRAC 2-110(9)(d) should refer

### to RAe 2-106(4)(1). 

### not (k).
II. The**Ll!1guag~** ill RAe 

### 2-11O( 1

### O)(cI) cannot

### be limircd. There 

### may be scemu'ios where the Tribe does !lot wunt to extend all application shield even ifthe source asks for ie See suggested RAe language: RAe 2-11000Hal Except as provided 

### ill this code. thefribe. may expressly incluue in an 

### operating pelmit a

### provision stating that compliance 

### \,>'ith the conditions ofthe pem1it shaH be deemed compliance with any applicable requirements as ofthe date ofpermit issum1ce. provided that: 12. RAe 2-1100O)(d) and RAe 2-1 I0(10)(e) appear to be inconsisknt.
13. RAe 2-110(10)(1) must be taken out. The pemlit shield does not ('xtend past permit expiration (see 40 CFR 70.6 for reference).
14. R/\C 2-110(10)((;)(il indicates the Tribe may also execute CAA 

### 3C3. 42 U.s.C. 

## S 7603 concerning emergency orders (see also 70.6(t)(3)(i)). lJnfnmmately. this can not be delegated per the CAA. thus "'and the Tribe" should be removed from thc code. 15. RAe 2-11 O(c)(iii) implies tribal auth-Jrity to carry OLlt CAA 114. Hnwcwr.there is 

### no inherent legal authority based on the Tribc's legal opinion. The Tribe should demonstrate CAA 114 authority in the Tribe's legal opinion as wdl as include prm:edures for implementation ofCAA 114 in the RA.C'.
16.Move notilication procedures at RAe 2-108(3)(h) to RAe 2-108(:::') <.\s item (c).•mel have the 

### current item 

### (c) become (d) as part ofthe transmittal 

### ofpenllit action to the Administrator and Atl'ccted States (see 40 CFR 70,8(11)(2) ttl!'**ret~rcnce).**



### 317. The RA

..Cdefinition of"emission limitation oremission standard" at RAe 1-103(20} includes the addition ofthe tenn ··instantaneous.'· The addition ofthis term changes the CAA definitions at section 302(k). In orderto add the tel1n "instantaneous" to thc RAC definition, the Tribe \vQuld have to attribute the tCl111 to an EPA approved TIP. 

### Ifthe Tribe 

### has no intention ofdevcloping 

### aTIP for this purpose, 

### please remove. 18. The t{)Uuwing 

## RAe pro\'isions should be modified to more closely represent 40 CFR Part 70 provisions. Below are the 40 CFR Part 70 citations that correlate 10 the Ri\(' pnl\isions that requires modificatilHl: a. Adel the Ltst sentence from 70.3(d} to RAe 2-110(1 )(e). b. Add the Acid Rain provision outLnLx! in 70.4(b}( 15) to 

### Ri\C 2-11 O(8). c. lncorponne 70.5(3)( 1) into R:\C' 2-106(2)(a). d. :\.dd last sentence ti'om 7Cl.5(al(l)(ii) to RAC' 2-10()(2)(c). c. Add recentl;. promulgated 70.5(c)(3)tiiil* to R:\C 2-1ll6(4}(cl:iv). 1'. Add recently promulgated 70.5(c)(7)* to RAe 2-106(4)(j). g. Add thc ,\cid Rain and Altemativc Operating Scenario provisions outlined in 70.5(c)(8}(v) to RAC 2-106(4}(1). h. Add the pennit duration provision from 70.6(a)(2) imo RAe 2-110(1 Ha). L Use language from 70.6(af(3)(A) to avoid the current monitoring limitations in RAe 2·110(5)(<1). j. Add the Acid Rain provision outlined in 70.6(a)(4) to RAe 2-11 O( 1). 

### k. Add the last paragraph of70.6(a)(6)(v) regarding conJidentiality to RAe 2-110(7)(e). L Add recently promulgated 70.6(a)(9)(iii)* to RAC 1-110(8)(b)(ii). 

### m. Add 

### the last paragraph from 70.6(b)(2) to RAe 2-II0(3)(t). n. Add the reference to in the 

### tirst sentence of70.6(c)(1) to RAe 2-110(9)(a). n. Add tlk' "one change oflocation" for portahle sources from 70.6(e) to RAe 2-1 ]5(1) and RAe 1·10)(46). p. Add the Acid**R~lin** pn\\ision 1i'om 70.6(t)(3)(iii) to RAe 2-1 lO( IO)(c), q. Add the Acid Rain pnl\ision from 70.7(3)(2) to RAe 2-107(3. r. Add permit renewal procedures from 70.7(c)(l )(ii) to RAe 2- 07(6) s. /\dd !he Acid Rain provision from 70.7(d)(]) to RAe 103(3). t. Add the Acid Kain provision Il'om 70.7(e) to RAe 1-103(3). Ll. Add the permitting failsa1e from 70.8(1.')(4) to RA.C 2·108(4)(h). *Recently promulgated in Federal Register! Vol. 74 

### No, 1921 Tuesday, October 6. 2009**h\tp:jV\.y,\~.gQi:!.J!&~/fedrgstr!EPA_:bJI~l2Q09.LQ~J.QQ~r!Dav...:..Q§/a23** 794.pdf

4

### E. The following changesshould be**mad~** 

### to the Tribe'sReservation Air Code 

### (RAe)to strengthenthe Part 70 Program.
1. 

### The tollmving 40 eFR 

### Part 70 definitions haw 

### been omitted from the Tribe's 

### RAe. Please add the following tcnns defined in 40 CFR Part 70.2: u. 

### Alternative operating scenario (AO$)* b. Approved replicable methodology (ARM)*

.., The follO\ving RA.C 

### provisions should be moditied to 

### more closely represent the 

### 40 

## eFR Part 70 provisions. Below are the 40

## erR Part 70 citations that correlate to 

### the RAe 

### provisions 

### that require 

### modification: 3. 

### Add more details about 

### from 71. 

### JJ(k) to RA.C 2-1 07(5). h. Add recently 

### promulgated 70.6(a)( 1)* to RAe 

### 2-110(1 )(d).
c. Add tll\;.' teml AOS instead ofsccnal"io per 

### 70.6(a)(9) to RAe 

### 2-1 10(8)(b). d, Add JanglingI;' hom 

### 70.7k)(2)(R)(ii)to RAe**2-111(~)(a).** 

### "'Recently promulgated in Federal Register' Vol. 7.+ No. lq2 i 

### Tuesday. October 6.2009**http://\\\\\\.:~~~,~!ll~gr.gBllJ:J)** -AIJV2(}09 i (

### )etaher/Da\"-()6/a2 

### 7\)4.

### rdf _\



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