AIR DIVISION**~U.S.** EPA, REGION 9 JOHN C. LEWIN, M.D. JOHN WAIHEE DIRECTOR OF HEALTH lVERNOR OF HAWAII**JAr~**31989 " STATE OF HAWAII DEPARTMENT OF HEALTH .RECEIVED P. O. BOX 3378HONOLULU, HAWAII 96801 In reply. please refer to: EPHSD/EPB December 12, 1988 AI213WN Mr. David P. Howekamp, Director Air Management Division U.S. Environmental Protection Agency Region 9 215 Fremont Street San Francisco, CA 94105 Dear Mr. Howekamp:Subject:Amended U.S. EPA/DOH Delegation Agreement ofthe Regulations for Prevention of Significant Deterioration (PSD) ofAir Quality The Hawaii Department of Health has reviewed and agrees with the subject amended U.S. EPA/DOH PSD delegation agreement. The signed document is being returned for U.S. EPA concurring signature. If you have any questions, please feel freetocall Mr. Wilfred Nagamine ofthe Environmental Permits Branch at(808) 548-6410. Sincerely,**~filA~~**BRUCE S. ANDERSON, Ph.D. Deputy Di rector for Environmental Health WN/sk Enclosurecc:PIEAirLab W. Chin-EPA, Region 9I AMENDED AGREEMENT FOR DELEGATION OF AUTHORITY OF THE REGULATIONS FOR PREVENTION OF SIGNIFICANT DETERIORATION OFAIR QUALITY (40 CFR 52.21) BETWEEN USEPA AND HAWAII DOH • The undersigned, on behalf ofthe Hawaii Department of Health (Hawaii DOH) and the United States Environmental Protection Agency (USEPA), hereby agree tothe**de~egation** of

authority for the administrative, technical and enforcement

elements ofthe source review provisions of 40 CFR 52.21, Prevention of Significant Deterioration (PSD), as they may be amended and in accordance with the permit review requirements in 40 CFR 124 Subparts AandC, from the USEPA tothe Hawaii DOH, subject tothe terms and conditions below. This delegation is enacted pursuant to 40 CFR 52.21 (u), Delegation of Authority, and supersedes the agreement dated August 15, 1983 signed by Hawaii DOH and EPA. General Delegation Conditions A. Authority is delegated for all sources under the jurisdiction of Hawaii DOH that are subject to review for PSD. This includes all source categories listed in 40 CFR 52.21 for each pollutant regulated bythe Clean Air Act. B. This delegation maybe amended atany time by the formal written agreement of both the Hawaii DOH and the USEPA, including amendments to add, change, or remove conditions or terms of this Agreement. C. Ifthe Regional Administrator determines that the State is not implementing or enforcing the PSD program in accordance with the terms and conditions of this delegation, the requirements of 40 CFR section 52.21, 40 CFR 124, or the Clean Air Act, this delegation, after consultation with the Hawaii DOH, may be revoked in whole orin part. Any such revocation shall be effective asofthe date specified ina Notice of Revocation tothe State. Nothing in this paragraph shall preclude USEPA from exercising its enforcement authority, as provided in paragraph V.B. below. D. The permit appeal provisions of 40 CFR 124.19 shall apply toall appeals tothe Administrator on permits issued bythe Hawaii DOH under this delegation. For purposes of implementing the federal permit appeal provisions under this delegation, if there isa pUblic comment requesting a change ina-2­ draft preliminary determination or draft permit conditions, the final permit issued by Hawaii DOHis required to contain statements which indicate that for FederalPSD purposes andin accordance with 40 CFR 124.15 and 124.19, (1) the effective date ofthe permit is30 days after the final decision to• issue, modify, revoke and reissue the permit; and (2)ifan appeal is made tothe Administrator, the effective date ofthe­ permit is suspended until such time asthe appeal is resolved. The Hawaii DOH shall inform USEPA (Region IX)in accordance with conditions of this delegation when there is public comment requesting a change inthe preliminary determination or ina draft permit condition. Failure by Hawaii DOH to comply with the terms of this paragraph shall render the subject permit invalid for Federal PSD purposes.

E.By this agreement, the Hawaii DOH assumes authority for enforcement and permit modification/amendment for EPA issued NSR/PSD permits. F. This delegation of authority becomes effective upon the date that both parties have signed this Agreement.

II. Communications Between USEPA and Hawaii DOH The Hawaii DOH and USEPA will use the following communication procedures:A. The Hawaii DOH will report tothe USEPA ona quarterly basis the compliance status ofthe sources that have received a PSD permit from either the Hawaii DOHor USEPA. The compliance Data System (CDS) will be used for this purpose. Compliance determinations will be made with respect tothe conditions established inthe PSD permits. B. The Hawaii DOH will forward to USEPA, atthe beginning of the pUblic comment period, a summary of(1) the findings related to each PSD application for new sources, major modifications and amendments, (2) the justification for the Hawaii DOH's preliminary determination, and (3)acopy ofthe draft PSD permit. Should there be any comments or concerns about the pending PSD permit, USEPA will communicate these comments and concerns tothe Hawaii DOHas soon as possible prior to the close ofthe public comment period. C. The Hawaii DOH will forward to USEPA copies ofthe final action onthe PSD permit applications atthe time of issuance, as well as copies of substantive pUblic comments. Any public comments not incorporated will be addressed, anda summary of the responses will be provided.-3­ D. The Hawaii DOH will send to EPA a copy ofall applicability determinations and justifications made that would involve PSD exemptions for newor modified major sources due to netting.III. Revisions To Title 40 CFR Section 52.21 A. This delegation covers any revisions that are promulgated for 40 CFR 52.21 and 40 CFR 124. The terms "40 CFR 52.21" and "40 CFR 124" as used inthe delegation request and throughout this Agreement, include such regulations asare

in effect onthe date this Agreement is executed and any revisions that are promulgated after that date. B. The revisions that have been promulgated for 40 CFR 52.21 since the effective date (August 15, 1983) ofthe previous delegation agreement include the following: 1. Stack Height Regulations as promulgated on July 8, 1985 (50FR 27892); 2. Revised Modeling Guidelines as promulgated on September 9, 1986 (51FR 32176); and, 3. PM-10 Regulations as promulgated on July 1, 1987 (52FR 24634). The Hawaii DOH is required to incorporate the above revisions into its PSD review, andto ensure that any permits issued by

the Hawaii DOH comply with these final regulations. C. In addition, the fOllowing USEPA policies apply toPSD review in Hawaii: 1. According to USEPA guidance published on September 22, 1987 and supplemental guidance published on July 28, 1988, all delegated agencies must now consider pollutants not subject tothe Clean Air Act in their Best Available Control Technology (BACT) determinations. The BACT determinations must include a review ofthe toxic effects of unregulated pollutants and the impact ofthe proposed BACT onthe emissions of these pollutants. 2. The Hawaii DOH must consult with the ap­ propriate Federal, State, and local land use agencies prior to issuance of prelimi­ nary determinations onPSD permits.-4­ In particular, USEPA requires that the Hawaii DOH must:a) Notify the Fish and Wildlife Service (FWS) and USEPA when a PSD permit application has been received, in order to assist USEPA in carrying out its non-delegable responsibilities under Section 7ofthe endangered species Act (PL 97-304). Hawaii DOH must: b) Notify potential applicants ofthe potential need for consultation between USEPA and the FWSifan endangered species maybe affected bythe project. USEPA's data sheet may be used for this process (copy enclosed). c) Refrain from issuing a final PSD permit unless the FWS has determined that the proposed project will not adversely affect any endangered species. 3. According to USEPA guidance published on June 26, 1987, all delegated agencies are required to look at certain control options when making BACT determinations for municipal waste combustors. Specifically, these agencies should consider adry scrubber for sulfur dioxide control, a baghouse or electrostatic precipitator for particulate control, and efficient combustion techniques for carbon monoxide control in their BACT determinations for this type of source. 4. Additional BACT guidance issued on December 1, 1987, by USEPA, states that the Regional Office isto encourage the application of "top-down" BACT determinations inthe Region. This means that USEPA will consider as deficient any BACT determinations that donot begin with the most stringent control options available for that source category. 5. Upon notification from EPA, Hawaii DOH will implement such new regulations or directives pending revision of this agreement.I

-5­ IV. Permits

A. For all PSD permit applications filed with Hawaii DOH, USEPA will assist the Hawaii DOH inthe BACT determination. Subsequent to August 1, 1988, concurrence by USEPA will berequired for each BACT determination. USEPA will ensure Hawaii DOH access tothe BACT Clearinghouse.

B. All modeling analyses for determination of increment consumption and compliance with NAAQS will require concurrence by USEPA. The signatures of USEPA and Hawaii DOH onthe final PSD permit shall constitute concurrence onthe BACT determinations and the modeling analyses. C. Inany matter involving interpretation of Sections 160-169 ofthe Clean Air Act, or 40 CFR 52.21 and 40 CFR 124 where guidance onthe implementation, review, administration, or enforcement of these sections has not been sent tothe Hawaii DOH, USEPA will be contacted and requested to provide the appropriate guidance. D. The Hawaii DOH will atno time grant any waiver tothe PSD permit requirements.

E. Permits issued under this delegation shall contain language stating that the Federal PSD requirements have been satisfied. F. Authorities to Construct must include appropriate provisions, as specified in Attachment A,to ensure permit enforceability. Permit conditions shall, ata minimum, contain reporting requirements on initiation of construction, start-up, and source testing (where applicable)

and continuous emissions monitoring (where applicable).

Inall cases where tests are required, the test methods shall be specified. All cases where CEMS are required, appropriate testing and reporting requirements shall be included. Upset/breakdown and malfunction conditions shall be included inall permits. G. U.S. EPA and Hawaii DOH will jointly concur on any future mOdifications and amendments affecting emissions and emission limitations at Kahe Units 1-6. V. Permit Enforcement A The primary responsibility for enforcement ofthe PSD regulations inthe State of Hawaii will rest with the Hawaii DOH. The Hawaii DOH will enforce the provisions that pertain tothe PSD program, except in those cases where the rules or

•-6- policy ofthe Hawaii DOH are more stringent. In that case, the Hawaii DOH may elect to implement the more stringent requirements.B. Taking into consideration the terms ofthe USEPA-Hawaii DOH Enforcement Agreement, nothing in this delegation agreement shall prohibit EPA from enforcing the PSD provisions of

the Clean Air Act, the PSD regulations orany PSD permit issued bythe Hawaii DOH pursuant to this agreement. c.Inthe event t.hat;the HawaiiIOEis unwilling or unable to enforce a provision of this de egation with respect toa source subject tothe PSD regulat'ons, the Hawaii DOH will immediately notify the Regional**Adm~nistrator.** Failure to notify the Regional Admini ra**~Idoes** not preclude USEPA from exercising its enforcement ut;ty.'**i"'····,I':;'~** Date: rJECI 2/988 " ' \:J**"a~ii** Department of Health Date:3Wc**~/** 17/Yl**~U~#l**u.s. Environmental**prot~ction** Agency