AIR DIVISION 

~U.S. EPA, REGION 9 JOHN C. LEWIN, M.D. JOHN WAIHEE 

DIRECTOR OF HEALTH lVERNOR OF HAWAII 

JAr~ 3 1989 " 

STATE OF HAWAII 

DEPARTMENT OF HEALTH 

P. O. BOX 3378 .RECEIVED

HONOLULU, 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 of the Regulations 

for Prevention of Significant Deterioration (PSD) of Air 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 free to call Mr. Wilfred Nagamine of the 

Environmental Permits Branch at (808) 548-6410. 

Sincerely, 

~filA~~

BRUCE S. ANDERSON, Ph.D. 

Deputy Di rector for 

Environmental Health 

WN/sk 

Enclosure 

cc:PIE 

Air Lab 

W. Chin - EPA, Region 9 
I 

AMENDED AGREEMENT FOR DELEGATION OF AUTHORITY OF THE 

REGULATIONS FOR PREVENTION OF SIGNIFICANT DETERIORATION 

OF AIR QUALITY (40 CFR 52.21) BETWEEN USEPA AND HAWAII DOH 

• 

The undersigned, on behalf of the Hawaii Department of 

Health (Hawaii DOH) and the United States Environmental 

Protection Agency (USEPA), hereby agree to the de~egation of 

authority for the administrative, technical and enforcement 

elements of the 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 A and C, from the USEPA to the Hawaii 

DOH, subject to the 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 by the Clean Air Act. 

B. This delegation may be amended at any 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. If the 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 or in part. Any such revocation 

shall be effective as of the date specified in a Notice of 

Revocation to the 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 

to all appeals to the Administrator on permits issued by the 

Hawaii DOH under this delegation. For purposes of implementing the federal permit appeal provisions under this delegation, if there is a pUblic comment requesting a change in a 
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draft preliminary determination or draft permit conditions, 

the final permit issued by Hawaii DOH is required to contain 

statements which indicate that for FederalPSD purposes and in 

accordance with 40 CFR 124.15 and 124.19, (1) the effective 

date of the permit is 30 days after the final decision to •

issue, modify, revoke and reissue the permit; and (2) if an 

appeal is made to the Administrator, the effective date of the ­ permit is suspended until such time as the 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 in the preliminary determination or 

in a 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 to the USEPA on a quarterly 

basis the compliance status of the sources that have 

received a PSD permit from either the Hawaii DOH or USEPA. 

The compliance Data System (CDS) will be used for this 

purpose. Compliance determinations will be made with respect 

to the conditions established in the PSD permits. 

B. The Hawaii DOH will forward to USEPA, at the 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) a copy of the draft 

PSD permit. Should there be any comments or concerns about 

the pending PSD permit, USEPA will communicate these comments 

and concerns to the Hawaii DOH as soon as possible prior to 

the close of the public comment period. 

C. The Hawaii DOH will forward to USEPA copies of the final 

action on the PSD permit applications at the time of issuance, 

as well as copies of substantive pUblic comments. Any public 

comments not incorporated will be addressed, and a summary of 

the responses will be provided. 
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D. The Hawaii DOH will send to EPA a copy of all applicability determinations and justifications made that would 

involve PSD exemptions for new or 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 in the delegation request 

and throughout this Agreement, include such regulations as are 

in effect on the 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) of the previous 

delegation agreement include the following: 

1.	 Stack Height Regulations as promulgated on
 

July 8, 1985 (50 FR 27892);
 

2.	 Revised Modeling Guidelines as promulgated on 

September 9, 1986 (51 FR 32176); and, 

3.	 PM-10 Regulations as promulgated on
 

July 1, 1987 (52 FR 24634).
 

The Hawaii DOH is required to incorporate the above revisions 

into its PSD review, and to ensure that any permits issued by 

the Hawaii DOH comply with these final regulations. 

C. In addition, the fOllowing USEPA policies apply to PSD 

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 to the Clean Air Act in their Best 

Available Control Technology (BACT) 

determinations. The BACT determinations 

must include a review of the toxic effects 

of unregulated pollutants and the impact 

of the proposed BACT on the 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 on PSD permits.
 
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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 7 of the endangered species 

Act (PL 97-304). Hawaii DOH must: 

b)	 Notify potential applicants of the 

potential need for consultation 

between USEPA and the FWS if an 

endangered species may be affected 

by the 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 a dry 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 is to encourage the application of 

"top-down" BACT determinations in the 

Region. This means that USEPA will 

consider as deficient any BACT determinations that do not 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 

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IV. Permits 

A. For all PSD permit applications filed with Hawaii DOH, 

USEPA will assist the Hawaii DOH in the BACT determination. 

Subsequent to August 1, 1988, concurrence by USEPA will be required for each BACT determination. USEPA will ensure Hawaii 

DOH access to the 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 

on the final PSD permit shall constitute concurrence on the 

BACT determinations and the modeling analyses. 

C. In any matter involving interpretation of Sections 

160-169 of the Clean Air Act, or 40 CFR 52.21 and 40 CFR 124 

where guidance on the implementation, review, administration, 

or enforcement of these sections has not been sent to the 

Hawaii DOH, USEPA will be contacted and requested to provide 

the appropriate guidance. 

D. The Hawaii DOH will at no time grant any waiver to the 

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, at a minimum, 

contain reporting requirements on initiation of construction, start-up, and source testing (where applicable) 

and continuous emissions monitoring (where applicable). 

In all 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 in all 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 of the PSD 

regulations in the State of Hawaii will rest with the Hawaii 

DOH. The Hawaii DOH will enforce the provisions that pertain 

to the PSD program, except in those cases where the rules or 

•
 
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policy of the 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 of the 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 or any PSD permit 

issued by the Hawaii DOH pursuant to this agreement. 

c. In the event t.hat; the Hawaii IOE is unwilling or unable 

to enforce a provision of this de egation with respect to a 

source subject to the 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: rJEC I 2 /988 " ' 

\

:J"a~ii Department of Health 

Date: 3Wc ~/ 17/Yl ~U~#l u.s. Environmental prot~ction

Agency