Overview ofReview of New Sourcesand Modifications inIndian Country(Final Tribal NSR Rule)Environmental Protection AgencyOffice of Air Quality Planning and StandardsAir Quality Policy DivisionNew Source Review (NSR) GroupOctober 2010OutlineCurrent Status of NSR Program in IndianCountryPurpose of Tribal NSR RulesHistory of Tribal NSR RulesOverview of Tribal Minor NSR RuleOverview of Tribal Major NonattainmentNSR RuleOverview of Provisions Applicable to BothRulesCurrent Status of NSR ProgramsIn Indian CountryArea TypeAttainment NonattainmentNonattainment

Source Type*EPA currently implements PSD rules to permit majorsources on Tribal landsMajorPSD*NonattainmentNSRMinorMinor NSR

Source TypePurpose of Tribal NSR RulesFill existing regulatory gap in Indian country(approximately 564 federally recognized tribes)◦Major NSR Program in nonattainment areas - created by thisrule◦Minor NSR Program in all areas - created by this rule◦Major NSR Program in attainment areas (PSD)-already inplaceEstablish a cost-effective and timely permitting mechanismAttempt to “level the playing field” with surrounding statesProvide regulatory certainty to sources locating ontriballandsHistory of Tribal NSR RulesConsultation/Outreach Began –June 2002Proposed Rule Signed/Published -August 2006Comment Period Closed -March 2007◦Extended comment period twice and conducted extensive outreach◦Received 57 comments26 tribes15 industry8 citizens7 states1 enviro◦Held meetings in 2010 with tribal leaders/environmental professionalsto address long gap between proposal and promulgationFinal Rule Signature -January 20115Overview of TribalMinor NSR RuleTribal Minor NSR RuleRule includes requirements forpreconstruction review of:◦New minor sources◦Minor modifications at minor sources◦Minor modifications at major sources◦Synthetic minor sources (for both NSRpollutants and HAPs)◦Case-by-case MACT determinationsTribal Minor NSR Rule HighlightsEstablishes a definition for minor source andminor modification◦Definitions include accounting of fugitive emissions ifsource is part of the 28 listed source categories◦Minor modification definition based on allowable-to-allowable emissions test not actual emissions testCreates minor source thresholds◦Minor sources with emissions below thresholds are notsubject to the rulePromulgates a list of units and activities that areexempted from the ruleTribal Minor NSR Rule Highlights(Continued)Includes permit requirements such as:◦Case-by-case control technology review◦Air Quality Impact Analyses at the discretion of thereviewing authority◦Emission limitations for each affected emissions unit aswell as annual allowable emissions limits◦Monitoring, recordkeeping and reporting requirementsEstablishes provisions for three permit types:◦Site-specific permits◦General permits◦Synthetic minor permitsTribal Minor NSR Rule Highlights(Continued)Site-specific permits◦180-day limit on permitting processGeneral permits for individual sources◦135-day limit on permitting process◦Various general permits under development: hot mixasphaltplants, rock crushing facilities, gasoline stations, dry cleanersSynthetic minor permits◦1 year limit on permitting process◦Rule clarifies the possible mechanisms under whichthesepermits have been issued to date (e.g., PTE Transition Policy),and the requirements these sources may have to comply withafter the rule’s effective dateTribal Minor NSR Rule Highlights(Continued)Delays the effective date of the rule for minor sourcesby 18 months to facilitate program implementationEstablishes a registration system for existing trueminor sources and new or modified true minorsources to collect data on actual/allowable emissions◦Prior to the effective date of this rule for true minor sources:Sources will not be subject to the permitting requirements but willhave to register◦After the effective date of this rule for true minor sources:Permit application/permit will fulfill the registration requirementsSources will have to submit estimates of actual emissions separatelyOverview of Tribal MajorNA NSR RuleTribal Major NA NSR RuleRule includes requirements for preconstructionreview of:◦New major sources in nonattainment areas◦Major modifications in nonattainment areasEstablishes provisions identical to the existingrules for sources locating in nonattainment areaswhere the State does not have an EPA-approvednonattainment major NSR program (App. S).Tribal Major NA NSR RuleHighlightsIncludes provisions for:◦Lowest Achievable Emission Rate (LAER)◦Offsets◦Offsets providing a net air quality benefit in theaffected area◦Compliance CertificationAmends Appendix S to include the alternative sitesanalysisprovision in CAA Section 173Offset WaiversEconomic Development Zone (EDZ) waiver is currentlyavailablethrough the Clean Air Act for all sources in or outside tribal landsAppendix S Paragraph IV Option is not being finalized◦Only available temporarily◦It will be challenging for the EPA or the tribe todemonstrate that theproposed source will not interfere with the attainment dateOverview of ProvisionsApplicable to Both RulesOverview of Provisions Applicableto Both RulesPermit Appeals◦Rules establish an EAB administrative appeals process,which is employed for all other EPA-issued air permits,rather than a judicial proceeding through Federal Courtof Appeals because it reduces the burden on theappealing partyPermit Reopenings◦Only the reviewing authority can reopen a permit for acause◦Mainly to correct material mistakes or failures toassurecompliance with applicable requirementsAppendixMinor NSR ThresholdsMinor NSR ThresholdsRegulated NSR PollutantNA Areas (tpy)Attainment Areas (tpy)Thresholds determine:a.If new minor source goes through reviewb.If modification at either a major or minor source goes throughminor source reviewThresholds are for all regulated pollutants exceptGHGsRegulated NSR PollutantNA Areas (tpy)Attainment Areas (tpy)CO5 10SO25 10NOx5*10VOC 2*5PM-101 5PM-2.50.6 3*0for any major modifications in extreme ozone areas18