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OFFICE O F TH E UNDE RSECRETARYO F DEFENS E

300 0 DEFENS E PENTAGO N WASHINGTO N O C 20301-300 0

ACQUISITIO N AN O TECHNOLOG Y Ms

. Mai y Nichol s Assistant Administrato r

fo r Air andRadiatio n U.S

. Environmental Protectio nAgency 40 1 M Street , S.W

. Washington , D.C

. 2046 0 Dea r Ms

. Nichols : M MAU

Th e purpos e o

f thi s letter i s t o request tha t the Environmenta

l Protectio nAgenc y (EPA) issu e forma

l guidanc e to it s Region s clarifying applicationof th e "majo r source " definitionto militar y installation s under

the Preventiono

f Significan t Deterioration(PSD) , New Sourc e Review (NSR) , andTitl e V programs . Currently , the EP Aregion s andsom

e state s tak

e the positio ntha

t militar y installation s ar

e singl e source s fo

r air pennittin g purposes . Thi s result s i n the aggregatio nof

dissimila r source s o f emission s i

namanne r not contemplatedb y the Congres s o r EPAandi nmore stringent treatmen t of militar y installation s tha

nwas provide dfo

r i nthe Clea nAir Ac t (CAA)

. Enclose di s aoositionpaper wit hsuggestedguidanc e languag e fo r EP A adoption.

. I ndevelopin g the "source " definition , it appears tha

t bot hEPAandCongres s intende dt o regulate the commo nsens e notiono f a nindustria l plant

. I t i s clea r tha t EP Adi dno t inten dt o regulate larger

entities , suchas municipalities

. I nbot hsiz e an ddiversit y of function s and activities , militar

y installation s ar

e analogou s to municipalitie s rather tha nindustrial plants

. Unles s corrected , th e current treatmen t of militar y installation s a s singl e source s will unacceptably reduc e militar y operationa

l flexibility , inhibit

civilia nreuti__Lzatio

nof closin g DoD facilities , detrac t

fro mEPA' s efforts t

o improve enforceabilit

y o f CA Arequirements , and inequitably increas e the administrativ e comphanc e burde nonDoD installation s a s asingl e source . The Department

of Defens e i s full

y committedt

o meeting Clea

nAi r Ac t requirement s We woul dappreciate your assistanc e inensuring th

e appropriat

e apphcatio nof

thes e requirement s t o Do D installations

. My poin t o f contact i s Majo r Crai g Teller , (703 ) 696-123 0 

# ^O^m^^--

Enclosur e 'Sherri W

. Goodma n Deput y Unde r Secretar y of Defens e (Environmenta

l Security )


### Environmental

Security / J Defending ourFutureP. 4

DEPARTMENT O F DEFENS E POSITIO N PAPE R ON APPLICATIO

N O F TH E "MAJO

RSOURCE - DEFINITIO N T O MILITAR

YINSTALLATION S INTRODUCTIO

N A s th e Departmen t o f Defens e (DoD ) move s forwar d t o mee t emergin g Clea n Ai r Ac t (CAA ) permi t requirements , it s effort s ar e hindere d b ya n inflexibl e applicatio n o f th e "majo r source " definitio n t o militar yinstallations
. ManyEP Aregion s an d stat e regulator s currentl yvie wmilitar yinstallation s a s singl e source s fo r permittin g unde r th e Titl e V , Ne wSourc e Revie w (NSR) , an d Preventio n o f Significan t Deterioratio n (PSD ) programs . Thi s result s i n th e imprope r aggregatio n o f dissimila r source s o f emission s o n a scal e no t contemplate d b y th e Congres s o r EP Aand i n mor e stringen t treatmen t o f militar y installation s tha n intende d b yth e CA

A§ 118(a)
. Thi s curren t treatmen t o f militar yinstallation s unacceptabl yreduce s militar y operationa l flexibility , inhibit s civilia n reus e o f closin g Do D facilities , detract s fromEPA' s effort s t o improv e enforceabilit y o f CA Arequirements , and inequitabl yincrease s th e administrativ e complianc e burde n o n Do D installations
. Man ystat e regulator s agre e tha t i t i s no t appropriat e t o inflexibl ytrea t militar yinstallation s a s singl e source s fo r Titl e V , PSD , and NS R permitting
. Withou t clarifyin g guidanc e fromEP Ao n th e correc t applicatio n o f the * "majo r source " definitio n t o militar yinstallations , thes e state s and Do D installation s ar e hampere d i n thei r abilit yt o mak e reasonabl e and appropriat e decision s regardin g th e applicabilit yo f CA A permi t requirements
. DO DPOSITIO

N EP Ashoul d issu e forma l guidanc e t o it s region s clarifyin g applicatio n o f th e "source " definitio n t o militar yinstallation s unde r th e PSD , NSR , and Titl e V programs . Th e guidanc e shoul d allo wregulator s and installation s flexibilit yi n makin g "source " determinations
. DISCUSSIO

N 1 . Military

installation s ar e i nsiz e an dscope o f activitie s mor e analogou s t o municipalitie s thant o industria l plants . I n term s o f siz e an d scop e o f activities , militar y installation s ar e vastl ydifferen t than th e typica l industria l plan t subjec t t o Titl e V , NSR , and PS D requirements , e.g. , anP. 5

automobil e o r chemica l manufacturin g plan t wit hon e primar y manufacturin g activity
. Militar yinstallation s ar e mor e lik e municipalities
. Installation s suppor t a uniqu e an d wid e variet y o f function s an d activities , includin g residentia l housing , schools , churches , recreationa l parks , shoppin g centers , industria l operations , trainin g ranges , airports , ga s stations, ' utilit yplants , polic e and fir e departments , and hospitals
. Fo r example
. For t Bragg , NC , whic hi s no t atypical , ha s 5,16 6 buildings , a populatio n o f ove r 64,00 0 (plu s 56,00 0 reservist s traine d annually) , si x schools , a shoppin g center , a 350-be d hospita l wit h1 7 separat e supportin g medica l o r denta l clinics , a n airfiel d supportin g 3 5 7 aircraft , 2,75 0 famil yhousin g units , numerou s trainin g ranges , and fou r larg e Arm ycommands , eac hwit h separat e command structures , budgets , an d missions
. Installation s ma yals o includ e a variet yo f tenan t activities , includin g othe r service , non-Do D federa l agency , contractor , and lease d commercia l activities
. Fo r example , Vandenber g Ai r Forc e Bas e (AFB ) , CAha s a variet yo f privat e contractor s developin g spac e launc hprogram s independen t o f Do D activities , includin g th e Wester n Commercia l Spacepor t Company , Lockheed , McDonnel l Douglas , an d the Orbita l Scienc e Corporation
. Anothe r exampl e i s the Army' s Redston e Arsenal , AL , whic h include s NASA' s Georg e C
. Marshal l Spac e an d Fligh t Cente r and a missil e rocke t moto r and munition s plan t operate d b yThiokol , Inc
. Finally , a s note d above , th e geographi c siz e o f militar y installation s make s militar yinstallation s a clas s apar t from industria l plants
. For t Irwin , CAencompasse s ove r 100 0 squar e miles ; th e Chin a Lak e Nava l Ai r Warfar e Center , CA , 1. 1 millio n acres ; and Edward s AFB , CA , 300,00 0 acres . .Som e installation s transcend ai r qualit ydistrict s and stat e an d loca l government
. boundaries , raisin g comple x complianc e issue s i f treate d a s a singl e "source. " Ver ylarg e installations , suc ha s For t Irwi n and Chin a Lake , hav e cluster s o f activitie s separate d bylarg e distance s an d i n area s wit hdifferen t attainmen t designations
. 2
. EPA

di dno t inten

dt o trea t anentir e military installation a s a singl e sourc e fo r Titl e V , NSR , an dPSD . Unde r th e definition s o f "majo r source " fo r Titl e V , PSD , and NSR , stationar ysource s ("an ybuilding , structure , facility
. o r installation" ) o f emissions , locate d o n contiguou s o r adjacen t properties ; unde r commo n contro l o f th e sam e perso n o r person s unde r coiraio

n control ; and belongin g t o a singl e majo r industria l groupin g (a s describe d i n th e Standar d Industria l Classificatio n Manual , 1987 ) ar e regulate d a s par t o f a singl e "source. " Fo r privat e facilities , regulator s appl ythi s definitio n t o "avoi a th e possibilit ytha t dissimila r sources , lik e a powe r plan t an dP. 6
*

_ fc, ou o

a n adjacen t coa l mine , wil l b e considere d a s th e sam e sourc e becaus e o f commo n ownership. " 5 6 Fed
. Reg
. 21724
. Currently, , th e sam e i s no t tru e fo r militar yinstallations , wher e widel y dissimila r 'source s ar e lumpe d togethe r a s on e sourc e base d upo n commo n contro l b ya n installatio n commande r an d a singl e industria l grouping : SI C cod e "9711 , Nationa l Security. " Thi s interpretatio n wit hrespec t t o Do D installation s i s to o rigi d an d ha s consequence s no t contemplate d b yCongres s o r EPA
. Th e "majo r source " definitio n incorporate s thre e elements : (1 ) contiguou s property , (2 ) commo n control , an d (3 ) sam e SI C code
. See 4 0 CF R § § 70.2 , 51.165(a)(1) , an d 51.166(b)
. Whil e th e contiguou s propert yan d commo n contro l element s o f th e definitio n ar e statutoril ybased , th e SI C cod e elemen t i s not
. Us e o f SI C code s a s a mean s o f designatin g th e appropriat e "source " fo r regulatio n originate d durin g th e PS D progra m rulemaking
. I n th e evolutio n o f th e definitio n o f "source " i n th e PS D program , EP Aattempte d t o establis ha mean s t o delineat e "common * sens e industria l groupings " a s a singl e stationar ysourc e subjec t t o regulation
. See Alabam a Powe r Co
. v . Costle
. 60 6 F.2 d 1068 , 1077-7 8 (D.C
. Ci r 1979)
. I n promulgatin g th e definitio n o f "source " fo r PSD , EP Astate d tha t th e "source " definitio n mus t mee t th e followin g criteria : (1 ) i t mus t carr you t reasonabl yth e purpose s o f PSD ; (2 ) i t mus t approximat e a commo n sens e notio n o f "plant; " an d (3 ) i t mus t avoi d aggregatin g pollutant-emittin g activitie s tha t woul d no t fi t withi n th e ordinar y meanin g o f "building, " "structure, " "facility, " o r "installation. " 45 Fed
. Reg
. 52694-95
. I n proposin g th e Par t 7 0 rule , EP Astate d it s inten t t o carr yove r th e "source " concep t develope d i n promulgatin g th e PS D an d NS R regulations
. See 5 6 Fed
. Reg
. 2172 4 (Ma y10 , 1991)
. EP A quoted , wit happroval , th e followin g languag e fro ma Hous e Committe e Repor t o n th e 199 0 Amendments
. Th e definitio n o f "majo r source " her e an d elsewher e i n th e bil l use s th e ter m"group o f source s locate d withi n a contiguou s are a an d unde r commo n control. " Th e Committe e understand s thi s t o mea n a grou p o f source s wit ha commo n industria l grouping , i.e. , th e sam e two

digi t SI C code
. I t i s th e approac hfollowe d toda yb y EP Aa s a resul t o f th e Alabam a Powe r litigation
. It 

### avoids the possibilitythat dissimilar

sources, like a power plant and an adjacent

coal mine. will

be 3considered as ownership. the same "source" because of common 56Fed ; Reg
. 2172 4 (emphasi s added)
. Thes e Congressiona l and EPA objective s affor d th e basi s fo r th e appropriat e applicatio n o f t-Vl O "m__-(,-\* - _»,*, , ,-~__ » *~y-y ~i*i. 3 «,.._ . _. . ____ _, th e "majo r source " definitio n unde r program s t o militar yinstallations
. Titl e V , NSR , and PS D
3
. Pollutant-emitting activitie s ona typica l militar y installationd o no t fi t withi nthe ordinar y meaning o f "building, " •

» structure

, • • "facility, " o r "installation. "
th e PSD , Programs , NSR ,

ther e I n th e length

ydevelopmen t o f th e and Ne wSourc e Performanc e Standar d (NSPS ) i s n o indicatio n tha t EP Aeve r intende d t o expand th e "source " definitio n t o regulat e entitie s large r than

plants
. Th e term s "building, " "structure, " and "installation " hav e consistentl ybee n interprete d court s t o b e eithe r smalle r than o r equivalen t t o essence , th e "commo n sens e notio n o f plant " industria l "facility , b yEP Aan d th e a "plant. " I n "source " definition s i n

a ^lauu
. xxi e_s_sfc:_i<_e , u_i e c-ununon sens e notio n OJ

- pi.oj.i-, establishe s th e oute r boundarie s o f th e "source " t o b e regulated
. Consequently , whil e "installation " ca n mea n " a militar y camp , fort , o r base, " EPA , i n developmen t o f th e PS D rule ; viewe d

a s havin g it s othe r commonl yaccepte d meaning : tha t i s installe d fo r use. " Webster' s Nint hNe w Dictionary
. Se e 4 5 Fed
. Reg
. 5269 3 ("an d s o a th e term "somethin g Collegiat e 'building ' ma yinclud e many'installations.' " Id. a t 52697.)
. I t i s apparen t tha t EPAappropriatel yenvisione d an "installation " t o b e par t o f an industria l plant
. Thi s i s consisten t wit hCongress ' an d EPA' s genera l inten t t o encompas s within , th e definitio n o f "source, " th e emission s unit s constitutin g th e "commo n sens e notio n o f a plant. " 4
. Th e SI C cod e an dcommo

ncontro l criteri a o f th e "major source " definitio nar e being inappropriatel y applie dt o military installations
. EP Aregion s an d manystat e regulator s no wgenerall yvic w militar yinstallation s a s a singl e "source " unde r th e Titl e V
. NSR , and PS D programs , base d upo n commo n contro l b yar . installatio n commande r and a singl e majo r industria l groupin g SI C cod e "9711 , Nationa l Security. " Se e Latte r fromEP ARegio n II I t o the Commonwealt ho f Virgini a regardin g PS D applicabilit y t o For t Belvoir , Dec
. 11
. 199 2 (enc l 1)
. Fo r th e reason s discussed ' below , thi s interpretatio n i s to o rigi d and i s an inappropriat e applicatio n o f th e "source " definition ^ t o militar y installations
. See Memorandu mfro m th e Regiona l Ai r Pollutio n Contro l Agency , Dayton , Ohio , regarding Wrigh t Patterso n Ai r Forc e Base , Jun e 8 , 199 4 (enc l 2)
.Whil e som e smal l militar yfacilitie s reasonabl yfal l unde r

SI C cod e 9711 , Nationa l Security , thi s cod e i s no t appropriat e fo r al l installation s o r al l part s o f a n installation
. Th e Standar d Industria l Classificatio n Manual , 1987 , page s 1 8 an d 419,

- specificall yprovide s fo r th e us e o f alternativ e SI C code s i n certai n situation s and , generally , suggest s a mor e flexibl e approac hi n usin g th e 971 1 classification
. 971 1 - Nationa l Security
. Establishment s o f th e arme d forces , includin g the Nationa l Guard , primaril yengage d i n nationa l securit yand relate d activities
. Establishment s primaril yengage d i n manufacturin g ordnance , ships , and othe r militar ygood s ar e classifie d i n Manufacturing , Divisio n D
. Servic e academie s ar e classifie d i n Services , Industr y8221 , bu t militar y trainin g school s ar e classifie d here
. Militar y hospital s ar e classifie d i n Services , Industr yGroup 806
. Establishment s o f th e Coas t Guar d primaril y engage d i n th e administration , operation , o r regulatio n o f transportatio n ar e classifie d i n Industr y9621
. Fo r th e purpos e o f stormwate r discharg e permitting
. EP Aha s take n th e positio n tha t SI C cod e 971 1 i s no t representativ e c f th e variou s functiona l activitie s o n a militar yinstallatio n an d alternativ e SI C code s shoul d b e used
. Se e EP ANPDE S Stor mWate r Program , Questio n and Answe r Document , Vol
. 1 , pag e 1 9 (Ma r 16 , 1992) ; 5 5 Fed
. Reg
. 4801 0 (Nov
. 16 , 1990)
. Treatmen t c f installation s unde r th e NPDE S programi s particularl yinstructiv e i n tha t th e CA

ATitl e V

Operatin g Permi t Programi s modele d afte r th e former
. Similarly , th e us e o f alternativ e SI C code s fo r sorr.e activitie s ma yb e mor e appropriat e t o achievin g Titl e V , NSR , ar.d PS D goal s and objectives
. Ver ysimply , th e inflexibl e us e o f Si c cod e 971 1 fo r militar yinstallations , i n manycases , wil l r.ct

achiev e a "commo n sens e industria l grouping. " Fo r example , includin g activitie s suc ha s a n airport , artiller yranges , commercia l industria l operations , a hospital , and residentia l housin g a s par t o f a singl e stationarysourc e hardl yapproximate s th e "commo n sens e notio n o f plant. " Additionally , whil e th e commande r ha s broa d lega l authorit y ove r and responsibilit yfo r activitie s conducte d

_o n tra

in s tallation , includin g environmenta l responsibilities , practice , th e commande r ma yno t hav e day-to-da ysupervisory contro l o r fundin g authorit yove r certai n tenan t activities , sue: . a s NAS Ao r Lockheed
. Mos t tenan t suppor t agreement s a t De c installation s ar e simila r t o the typica l lessee/lesso r agreement s found i_i , fo r example , a n industria l park
. Actua l supervisor y contro l an d fundin g authorit ygenerall yar e veste d i n th e owner. * o r manager s o f th e tenan t activities
.P. 9

Consequently , base d upo n a lac k o f commo n contro l o r th e us e o f SI C code s tha t ar e mor e representativ e tha n 9711 , i t i s appropriat e t o divid e some , no t all , militar yinstallation s int o multipl e source s fo r applicabilit yo f Titl e V , NSR , and PS D permitting
. Permittin g authoritie s nee d th e flexibilit yt o resolv e th e difficul t issue s associate d wit hth e applicatio n o f th e "source " definitio n t o Do D installation s o n a case-by-cas e basis , considerin g progra mobjective s and th e uniformtreatmen t o f federa l and non-federa l facilities
. 5
. Th e curren t applicationo f the "source " definitiont o military

installation s doe s no t "carr y ou t reasonabl y

th e purposes no f th e Titl e v program .

y* Tw o o f th e primar yobjective s o f th e Titl e V progra mar e "increase d sourc e accountabilit yand bette r enforcement. " 5 7 Fed
. Reg
. 32251
. Th e rigi d treatmen t o f militar yinstallation s a s singl e source s doe s no t "carr you t reasonably " thes e purpose s and , i n som e cases , wil l b e detrimenta l t o accountabilit yan d enforcemen t b yplacin g a n unreasonabl e administrativ e burde n upo n Do D and it s installatio n commanders
. A . Comman

dan dcontro l issues . Th e curren t applicatio n o f the "source " definitio n i s a significan t proble mfo r installatio n commanders , wh o ma yno t hav e day-to-da ysupervisor ycontro l o r funding authorit yove r som e o f th e tenan t activitie s o n th e installation , suc ha s Lockhee d o r NASA
. A s th e "responsibl e official " (4 0 CF R §70-2) , the commande r mus t personall ycertify , o n a periodi c basi s an d base d upo n reasonabl e inquiry , ful l complianc e b yal l o f th e activitie s include d unde r th e permit
. Fo r example , Vandenber g AF B i s regulate d a s a singl e stationar ysource , eve n thoughi t i s th e hom e o f th e commercia l spac e program . A s i t stand s now , emission s fromth e commercia l spac e operation s ar e aggregate d wit hexistin g Do D operation s int o th e tota l ai r emission s allowe d Vandenber g b yth e loca l ai r district
. A s a singl e emission s source , th e installatio n and it s commande r ar e responsibl e fo r CA Acomplianc e b yth e commercia l spac e tenants
. Ther e ar e substantia l administrative , control , an d funding problem s associate d wit hincluding tenan t activities , suc ha s thos e describe d above , withi n th e installation' s Titl e V permit
. Titl e V

purpose s woul d b e bette r serve d i f th e "majo r source " definitio n i s correctl yapplie d s o tha t th e Responsibl e Officia l i s als o th e officia l wit hactua l authorit yt o contro l an d supervis e emittin g activities
. Th e curren t applicatio n o f the "majo r source " definitio n i s counterproductiv e t o Titl e V goal
.an d purpose s i n failin g t o assig n responsibilit yt o thos e

official s wit hactua l contro l and authorit yove r emittin g activities.

_

Th e curren t applicatio n o f th e definitio n wil l plac e installatio n commander s i n th e anomalou s positio n o f havin g responsibilit ywithou t rea l supervisorycontrol
. Ultimately , placin g Responsibl e Official s i n suc ha n untenabl e positio n can onl yb e destructiv e o f th e Titl e V enforcemen t scheme
. B
. Administrative burden . I t wil l b e extremel yresourc e intensiv e fo r installation s t o inventor yan d monito r th e larg e numbe r o f smal l emission s unit s withi n th e boundarie s o f th e typica l militar yinstallation
. Becaus e militar yinstallation s typicall ytranscend th e "commo n sens e notio n o f plant, " EP Acoul d no t hav e contemplate d th e magnitud e o f th e complianc e burde n unde r th e Titl e V , NSR , an d PS D programs . Whil e larg e privat e facilitie s als o mus t accoun t fo r miscellaneou s emission s units , privat e facilitie s generall y ar e significantl ysmalle r (Ther e ar e n o privat e facilitie s the siz e o f For t Irwin , approximatel y100 0 squar e miles. ) an d d o no t suppor t th e wid e variet yo f military , commercial , industrial , an d municipa l activitie s found o n manymilitar yinstallations
. Inventorying , monitoring , and controllin g th e countles s mino r emission s unit s tha t exis t withi n th e boundarie s o f a typica l installatio n wil l diver t limite d Do D resource s from effectiv e managemen t o f th e emission s fromth e "industria l groupings " o n a n installation , whic har e EPA' s intende d "majo r sources " o f regulatio n unde r th e Titl e V , NSR , and PS D programs . Moreover , th e diversio n o f significan t resource s t o monito r an d trac k the larg e numbe r o f mino r emission s unit s scattere d acros s an installatio n wil l hinde r curren t federa l initiative s t o focu s limite d fundin g and resource s o n th e majo r environmenta l problem s affectin g ecosystems
. Se e CR S Repor t fo r Congress , Ecosvster , Management : Federa l Agenc yActivitie s (Apri l 19 , 1994)
. 6
. Th e curren t applicationo f the "source " definitiont o military

installation s result s i nthe discriminatory treatmen t o f federa l installation s i nviolationo f Clea nAi r Ac t (CAA ) § 110(a)
. CA A§ 118(a ) provide s tha t federa l agencie s mus t "compl y with , al l Federal , state , interstate , and loca l requirements
. administrativ e authority , and proces s an d sanction s respectin g th e contro l an d abatemen t o f ai r pollutio n in the same manner ar.c to the same extent as anynongovernmental entity"

(emphasi s added )
. Th e curren t inflexibl e applicatio n o f th e "majo r source' * definitio n t o militar yinstallation s result s i n substantiall y mor e onerou s treatmen t o f militar yinstallation s i n compariso n c c privat e industria l plants
. While , fo r privat e plants , regulator

ar e appropriatel yapplyin g th e "source " definitio n t o "avoi d tht
.P.1 1

possibilit ytha t dissimila r sources , lik e a powe r plan t and a n adjacen t coa l mine , wil l b e considere d a s th e sam e sourc e becaus e o f commo n ownership " (5 6 Fed
. Reg
. 21724) , th e sam e i s no t tru e wit hrespect ; t o militar yinstallations , wher e widel ydissimila r source s ar e lumpe d togethe r a s a singl e sourc e fo r Titl e V , NSR , and PS D permitting
. Unde r th e curren t approach , a powe r plan t and a coa l min e o n contiguou s propert yan d unde r commo n control , woul d b e treate d a s separat e source s i f privatel yowne d and a s on e sourc e i f o n a militar yinstallatio n (alon g wit hth e many othe r activitie s o n th e installation )
. Thi s unequa l treatmen t result s i n a substantiall ygreate r complianc e burde n o n militar y installation s and violate s CA A§ 118(a)
. 7
. Tha curren t rigi dapplicationo f the "source " definitio nt o military

installation s i s a brea kfro m pas t practice
. Th e curren t interpretatio n tha t a n entir e installatio n i s on e "source " i s inconsisten t wit hlong-standin g treatmen t o f emission s unit s o n militar yinstallation s unde r th e PS D and NS R programs . Unti l 1992 , regulator s routinel yissue d ai r permit s t o militar yinstallation s fo r individua l emission s unit s o n a n installation , e.g., eac hboile r o r pain t shop , a s th e "sources " subjec t t o regulation
. Thi s long-standin g practic e reflecte d the prevailin g understandin g byEPA , th e states , and th e regulate d community , base d upo n a reasonabl e an d flexibl e interpretatio n o f th e "source " definition
. Se e Cop yo f lette r fromRegio n VII I t o Colorado , Oc t 27 , 1988 , subject : Puebl o Arm yDepo t (enc l 3)
. A s a result , som e installation s wil l not

- hav e complie d wit h NS R and PS D requirement s tha t ma yno wb e deeme d b ysome regulator s t o hav e bee n applicabl e i n ligh t o f th e curren t interpretatio n o f "source, " a s applie d t o militar yinstallations
. Consequently , th e Titl e V permi t applicatio n proces s ma yresul t i n a serie s o f unanticipate d enforcemen t actions , an d significan t unfunde d complianc e requirement s fo r DoD
. 8
. The curren t applicationo f the "major source " definitiont o military

installation s may hinde r commercia l reutilizationan d communit y

redevelopmen t efforts . Currently , ther e ar e significan t effort s withi n Do D t o promot e th e efficien t commercia l an d communit yreus e o f militar y facilitie s tha t ar e n o longe r neede d fo r defens e purposes . Thes e effort s provid e direc t economi c benefi t t o communitie s facing los s b f job s a s a resul t o f a reduce d militar ymissio n o r bas e closure
. Fo r example , the Army' s Armamen t Retoolin g & Manufacturin g Suppor t (ARMS ) Initiative
. P.L
. 102-484 , § 19 1 .__£
. seq. , provide s fo r th e leas e o f unneede d ammunitio n manufacturin g facilitie s t o commercia l enterprise
. ARM S resulte d i n an estimate d communit ybenefi t o f $31.71 M throug hMarc h1994
. 8_E__1 i

Busines s activitie s conducte d unde r ARM S includ e do g foo d manufacturing , meta l fabrication , commercia l laundr yservice , offic e an d warehous e space , machin e shops , electroni c assembly, ' and woo d 'products
. Similarly , th e Ai r Forc e i s developin g a commercia l spac e launc hprogramat*Vandenber g AFB
. Som e o f thes e commercia l tenan t activitie s coul d qualif yfo r syntheti c mino r statu s i f the ywer e properl ysegregate d fromDo D activities
. Conversely , Do D installation s ma ybecom e majo r source s o r los e th e abilit yt o establis hsyntheti c mino r statu s unde r Titl e V b y virtu e o f tenan t activitie s ove r whic htheylac k day-to-da y control
. I f regulator s requir e inclusio n o f commercia l activitie s a s par t o f th e sam e "source " a s al l othe r installatio n activities , i t ma ysignificantl yhampe r commercia l reus e an d leasin g arrangements
. Commander s wil l wan t t o avoi d th e Titl e v , NSR , and PS D requirement s associate d wit hth e commercia l activities , ove r whic hthe ywil l lac k meaningfu l control
. Commercia l enterprise s wil l b e deterre d byth e prospec t o f governmen t oversigh t ove r emission s generatin g activitie s and th e inabilit y t o escap e majo r sourc e status
. 9
. Recommende dEPA guidance
. T o correc t th e curren t misapplicatio n o f th e "source " definitio n t o militar yinstallation s unde r th e Titl e V , NSR , an d PS D programs , EP Ashoul d issu e th e following guidance
.

I n applyin g the "source " definitio n t o federa l facilitie s unde r th e Titl e V Operatin g Permit , Ne w Sourc e Revie w(NSR) , and Preventio n o f Significan t Deterioratio n (PSD ) programs , permittin g authoritie s mus t ensur e tha t programrequirement s appl yt o federa l facilitie s "i n th e sam e manne r and t o th e sam e exten t a s anynongovernmenta l entity. " Clea n Ai r Ac t § 118(a)
. Applicatio n o f th e definitio n o f "source " tha t result s i n treatin g federa l militar yinstallation s mor e stringentl ytha n comparabl e nongovernmenta l entitie s unde r Titl e V , NSR , and PS D i s no t permissible
. I n applyin g th e "source " definitio n t o militar y installations , permittin g authoritie s mus t recogniz e tha t militar yinstallation s suppor t a uniqu e variet yo f dissimila r function s an d activities , includin g residentia l housing , schools , recreationa l parks , wildlif e reserves , shoppin g centers
. industria l operations , artiller yranges , airports , ga s stations , utilit yplants , polic e and fir e departments , and hospitals
. I n term s o f siz e and variet yo f activities , militar yinstallation s ar e typicall yanalogou s t ote "A
.

municipalitie s rathe r tha n t o industria l plants
. Consequently , i n manycases , i t i s no t appropriat e t o trea t a n entir e militar yinstallatio n a s th e equivalen t o f an-industria l plan t fo r permittin g purposes . Whil e manymilitar yfacilitie s wil l fal l unde r the Standar d Industria l Classificatio n (SIC ) cod e "9711 , Nationa l Security, " thi s classificatio n i s no t appropriat e fo r al l installation s an d al l part s o f a n installation
. Fo r man yinstallations , th e exclusiv e us e o f SI C cod e 971 1 wil l no t achiev e Congress ' and EPA' s objectiv e o f definin g "source " t o "approximat e a commo n sens e notio n o f an industria l plant. " Th e us e o f alternativ e SI C code s fo r some activitie s i s mor e representativ e o f installatio n function s an d appropriat e t o achievin g Titl e V , NSR , and PS D goal s and objectives
. Th e Standar d Industria l Classificatio n Manual , 1987 , page s 1 8 an d 419 , suggest s a flexibl e approac hi n usin g the "97H " classificatio n and th e us e o f mor a representativ e SI C code s i n appropriat e cases . Consideratio n o f alternativ e SI C code s als o ma yb e warrante d base d upo n th e treatmen t o f comparabl e non governmenta l facilities
. Whil e th e commande r ha s broa d lega l authorit yove r and responsibilit yfo r al l activitie s conducte d o n th e installation , including environmenta l responsibilities , i n practice , th e commande r ma yno t exercis e day-to-da y supervisor ycontro l o r funding authorit yove r al l o f th e tenan t activitie s o n the installation
. Actua l supervisor ycontro l an d funding authorit yma yb e veste d i n th e owner s o r manager s o f th e tenan t activities
. Tena n activitie s o n a n installatio n ma yinclud e independen t organization s o f the same servic e and othe r servic e o r agency , contracto r operated , lease d commercial , classified , an d civilia n reus e activities
.
A s a result , base d upo n a lac k o f commo n contro l o r th e us e o f SI C code s tha t ar e mor e appropriat e t o th e circumstance s than "9711 , Nationa l Security, " i t wil l b e appropriat e t o divid e som e militar y installation s int o multipl e source s fo r applicabilit y o f Titl e V , NSR , and PS D permitting
. Additionally , i t wil l b e appropriat e i n some case s t o divid e installation s alon g jurisdictiona l o r ai r qualit y distric t boundaries
. Permitting authoritie s mus t resolv e th e difficul t issue s associate d wit hth e applicatio n o f th e "source " definitio n t o militar y installation s o n a case-by-cas e basis , considerin g 1 0P.1 4 

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DEPARTMEN T O PTH E NAV Y OPTIC S O V TH * OtlfTM T•CCMTAM Y (lN«TAUATlON « AI M CNVIMNMKMT ) WO O MA W MMTAOO M WASMH««Te«
. Ou t zaaso-wo o 1 4 Septembe r 199 5

JohnS . Seit z Directo r Offic e o f Ai r Qualit y Planning andStandard s Unite dstate s Environmenta l ProtectionAgtnc y Researc hTriangl e Park , N C 2771 1
Dea r Mr . Seitz :
I a m writin g t o expres s appreciationfo r tha effort s o f you r offic e i naddressin g concern s raisedb y tha Departmen t o f Defens e regardin g tho interpretationo f th e majo r sourc e definitio nfo r militar y

installations . I nparticular , Ms . Michel * Dubow ha s bea nespeciall y

responsive an

dhelpfu l i nou r effort s t o findan agreeabl e resolution . Sinc e Ms . Goodman , tha Daput y Unde r Secretary

o f Defens e (Environmenta l Security) , wrot e t o Ms . tficbols las t March , SP A an dDo Dhava bea ntalking an daxchanging writte nmaterial s t o batte r defin e andexplai ntha issues . OnAugus t 10 , 1995 , BP A representative s fro m Researc hTriangl e Parkan dHeadquarter s ma t wit hrepresentative s fro m th e Military

Service s Clea nAi r Ac t Steerin g Committe e c o attemp t t o finaliz e agreemen t onsevera l o f th e issues . A s a resul t o f tha t meeting , Do Dan dEP A hav e agree d tha t EP A

wil l issue guidanc e onthi s matte r i na phase dprocess . Thi s i s t o allo

w guidanc e t o b e distribute dquickl y o nch e agree d upo nitems , whil e reserving the mor e difficul t issue s fo r furthe r discussio nandsubsequen t guidance . DoD' s agreemen t t o phasa d guidanc e doe s no t indicat e tha t the remaining issue s ar e an y las s important , a s significan t unresolve dissue s stil l exist . Whil e w e ar e please dwit hch e progres s w e ar e now achieving , w e remai nconcerne dtha t guidanc e reac hth a Region s andState s i n a timel y

manne r t o b e appliede o the Titl e V permi t application s now coinin g du e acros s th e country . W e as ktha t yo ucontinu e t o promptl y

develo pan

dissu e guidanc e s o cha t i c i e availabl e befor e Novembe r 1995 . We hop e tha t an y subsequent . Phas e II , guidanc e coul db e issuedb y n o late r thanFebruary 1996 . orrwtmmt-ittTie. FA XTRANSMITTA L »0* l

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Than kyo uagai nfo r you r cooperation , I a m confiden t v e ca n findnutuall y

acceptabl e solutions .



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. to * SLSX S t - MOKSBL L Deput y Assistan t Secretary O f th e Navy (Environmen t andSafety )

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