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# OAR Box 

# 1787 Prepped by Ollie Stewart



### Document

Number: 

# 28)JI-B-1 3

Docket Number: 

# A-90-3 7

Printed 11/4/2008 10:22:19 AM

Sheet 28 of 147P. 2

n o sr„ ,

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_______ _* • UNITE D STATE S ENVIRONMENTA L PROTECTIO N AGENC Y WASHINGTON, D.C . 2046 0



## DE C I '•OS ?
'JE-'.;\ . 2 0 E . OFFIC E o r AI RAND RADIATIO

N

MEMORANDU

M ----^-^LLt^:*~ *
SUBJECT : Improvin g New sourc e Review

(NSR ) Implementatio n
FROM : J . Crai g Potte r

Assistan t Administrato r fo r Ai r an d Radiatio n(ANR-443 ) 

### TO : Regiona l Administrato r

Region s I- X

O nJun e 27 , 1986 , I establishe da specia l tas k forc e t o addres s growin g concern s abou t th e consistenc y an d certaint y

o f permit s issue d unde r th e Clea nAi r Act' s preventio no f significan t deterioratio nan d . nonattainmen t are a NS Rprograms . Base do nth e finding s and recommendation s o f th e tas k force , I a m today establishin g certai nprogram initiative s designe dt o inprov e th e timeliness , certainty , an d effectivenes s o f thes e programs . • %
A grea t dea l o f effor t wil l b e require dt o overcome th e problem s whic hhav e developed , bu t i t i s m y belie f tha t thes e problems, - wit hyou r ful l cooperatio nand assistance , ca nb e resolve ds o tha t thes e essentia l ai r managemen t program s ca nfulfil l thei r intende droles . Therefore , I urg e eac ho f yo u t o provid e th e maximu m priorit y

and resourc e commitment s availabl e t o th e task . Th e outstandin g concer nw e no w fac e i nthes e program s i s inadequat e implementation . Th e Offic e o f Ai r an d Radiatio nintend s t o appl y it s resourc e commitment s so.a s t o enhanc e it s abilit y t o provid e technica l suppor t and guidance , training , workshops , auditing , an d enforcemen t suppor t t o th £ Region s an d delegate dprograms . Th e Regiona l Office s mus t mak e a correspondin g resourc e commitmen t fo r thes e effort s t o succeed . Accordingly , I a m

requestin g tha t yo u initiat e a self-evaluatio no f curren t NS Rac.ivitie s and , t o th e exten t necessary , refocu s Regiona l attentio no n thes e program s i na neffor t t o inprove an d enhanc e NS Rprogram implementation . T o ensur e tha t w e maintai nth e flexibility ' t o mak e thi s effor t a dynami c one , capabl e o f sensin g and adjustin g t o th e need s o f th e program , I intendt o establis ha ninforma l grou po f ou r colleague s t o repor t t o m e o nprogres s i nimplementin g th e initiative s discusse dbelcw . Th e missio n o f th e grou pi s t o provid e th e feedbac k necessar y t o maximiz e th e effectivenes s o f NS Rimplementatio nand t o mak e NS Rreflectiv e o f ai r progra m need.; .



# _ JP. 3

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Th e followin g i s a lis t o f th e specifi c program initiative s I a m hereby institutin g t o brin g abou t improvement s i nNS Rimplementation : Trackin g Permi t Actions—Initiall y an dunti l suc htime a s permi t qualit y ca nb e assured , I a m requirin g that-eac hRegiona l Offic e establis h ("i f no t alread

y i nplace ) a progra

m t o ensur e a timel y

an dcomprehensiv e review o f al l Stat e andloca l agency-issue dmajo r sourc e permit s an d certai nmino r sourc e permits , implementatio no f th e program wil l b e nad e par t o f th e Regiona l Offic e Managemen t System andwil l requir e th e "rea l time " exchang e and * review o f infornatio nbetwee nth e Regiona l Offic e and th e Stat e an

dloca l agencie s whe na ke y mileston e i s reache ddurin g th e permittin g process . Effectiv e comnunicatio nbetwee nth e permittin g agenc y an dth e Regiona l Offic e i s essentia l t o improvin g progra m implementation . Therefore , th e Regiona l Office s wil l nee dt o ensur e tha t Stat e andloca l permittin g agencie s follow

certai nnotificatio nprocedure s suc has :

- Notif y

th e Regiona l Offic e andothe r affecte dpartie s (e.g. , th e Federa l landmanage r i f Clas s I area s ar e impacted) , withi na reasonabl e time , o f th e receip t o f a new majo r sourc e penni t application . Thi s ca n. . tak e th e for

m o f a complet e copy

o f th e applicatio nitsel f o r a brie f descriptio no f th e propose dproject . Notificatio nca nb e mad e a s eac h applicatio ni s receive do r th e infornatio nma y b e submitte dt o th e Regiona l Offic e i na periodi c report .

- Submi t t o th e Regiona l Offic e a complet e publi c notificatio n packag e a t th e beginnin g o f th e publi c notic e period . The packag e nus t contai nth e publi c notic e language , th e propose dpermit , an da technica l analysi s demonstratin g how th e propose dprojec t complie s wit hth e technica l review requirement s o f th e regulation s [e.g. , bes t availabl e contro l technology

(BACT ) o r lowes t achievabl e emissio nrat e (LAER) , ai r qualit y impact s o r offsets] .

- Submi t t o th e Regiona l Offic e a cop y o f th e fina l preconstructio n permi t whe nissued , includin g a respons e t o any appropriat e comment s submitte ddurin g th e publi c commen t period .

- Submi t t o th e Regiona l Offic e a cop y o f th e operatin g penni t whe n issued . V.kewise , whe ninforme do f a permi t action , th e Regiona l Offic e i s responsibl e fo r th e timel y review o f th e infornation , specifically :

- Scree nincomin g informatio no npermi t application s fo r potentia l issue s o r concern s and , i f warranted , communicat e them t o th e permittin g agency .

- Perfor

m a timel y

an dcomprehensiv e review o f th e publi c notic e package ' and , i f warranted / provid e commen t durin g th e publi c commen t period . T o ai di nthi s task , I hav e directe dth e Offic e o f Ai r Qualit yP. 4

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Plannin g an dStandard s (OAQPS ) t o star t wor k o n th e developmen t o f a penni t revie wchecklis t fo r us e b yth e Regiona l Offic e durin g th e publi c commen t period

. Th e checklis t wil l als o b e usefu l t o Stat e an d loca l agencie s a s a too l fo r self-audi t an d t o understan d wha t th e Environmenta l Protectio n Aqenc y(EPA ) enphasize s whe n reviewin g a propose d pennit

.

- Revie wanyrespons e t o comment s an d th e fina l permi t t o ensur e tha t an youtstandin g concern s hav e bee n resolve d satisfactorily

.

- Revie wth e penni t t o operat e t o ensur e tha t i t i s consisten t wit h th e preconstructio n permit

.

- Tak e promp t an d appropriat e actio n t o dete r th e issuanc e o r us e o f permit s whic h fai l t o mee t minima l Federa l requirements

. I hav e directe d OAQP S t o wor k wit h th e Offic e o f Genera l Counse l an d th e Offic e o f Enforce

men t an d Complianc e Monitorin g t o develo p guidanc e fo r th e Regiona l Office s o n th e appropriat e lega l mechanism s an d procedure s fo r handlin g deficien t permi t actions

.

- T o th e exten t practicable , prio r t o permi t issuance , revie w potentia l mino r permi t action s whic h exenp t a n otherwis e majo r sourc e o r modificatio n fro ma majo r revie w(e.g.,"synthetic " mino r sources , majo r source s nettin g ou t o f review , an d 99. 9 o r 249. 9 ton s pe r yea r sources)

. Th e mos t critica l elemen t o f thes e initiative s i s th e Regiona l Offic e revie wo f propose d permi t action s durin g th e publi c commen t period

. Ih e F Y 193 5 nationa l ai r audi t showe d widesprea d seriou s permi t deficiencies , man yo f whic h coul d hav e bee n correcte d withou t interferin g wit h Stat e an d loca l agenc yprocessin g i f deal t wit h b yEP Adurin g th e publi c commen t period

. B yuniforml yreviewin g al l majo r sourc e permi t action s durin g th e commen t period , EP Ai s abl e t o addres s deficien t review s o r permit s befor e th e fina l permi t i s issued

. Thi s no t onl ypromote s mor e consistenc yi n th e permittin g proces s amon g th e States , bu t als o provide s th e highes t degre e o f certaint yt o th e applican t tha t th e permi t wil l no t b e challenge d b yEP Aa t a late r date

. Moreover , i f th e penni t i s no t reviewe d an d commente d o n prio r t o issuance , th e possibilit yo f successfull y challengin g th e actio n i s greatl ydiminished , a s i s th e opportunit yt o inprov e th e enforceabilit yo f th e permit

. BAC T Determinations—O f al l th e NS R processes , BAC T (an d LAER ) determination s ar e perhap s th e mos t misunderstoo d an d th e leas t correctl y appli'.i

. Th e BAC T alternatives , i f presente d b yth e applican t a t all , ar e ofte n poorl ydocumente d o r biase d t o achiev e th e decisio n th e applican t desires

. •
T o brin g consistenc yt o th e BAC T process , I hav e authorize d OAQP S t o procee d wit h developin g specifi c guidanc e o n th e us e o f th e "top-down " approac h t o BACT
. Th e firs t ste p i n thi s approac h i s t o determine , fo r th e emissio n sourc e i n question , th e mos t stringen t contro l availabl e fo r a simila r o r identica l sourc e o r sourc e category
. I f i t ca n b e show n tha t thi s leve l o f contro l i s technicall yo r economicall yinfeasibl e fo r- 4 -

th e sourc e i nquestion , the nth e nex t mos t stringen t leve l o f contro l i s determine dan dsimilarl y evaluated . Thi s proces s continue s unti l th e BAC T leve l unde r consideratio ncanno t b e eliminate db y any substantia l o r uniqu e technical , environmental , o r economi c objections . Thus , th e "top-down " approac hshifts.th e burde no f proo f t o th e applican t t o justif y why th e propose dsourc e i s unabl e t o appl y the bes t technolog y available . I t als o differ s fro

m othe r processe s i ntha t i t require s th e applican t t o analyz e a contro l technolog y onl y i f th e applican t oppose s tha t leve l o f control ; .th

e othe r processe s require da ful l analysi s o f al l possibl e type s an

dlevel s o f contro l abov e th e baselin e case . Th e "top-down " approac hi s essentiall y already

require dfo r municipa l wast e combustor s pursuan t t o the Jun e 22 , 1987 , Administrator' s remandt o Regio nI Xo f th e H-Powe r BAC T decisio nandth e OAQP S Jun e 26 , 1987 , "Operationa l Guidanc e o nContro l Technolog y fo r Ne w

an dModifie dMunicipa l Wast e Combustor s (MWCs). " I t i s als o currentl y bein g successfull y implemente db

y many permittin g agencie s andsome o f th e Regiona l Office s fo r al l sources . I hav e therefor e determine dtha t i t shoul db e adopte d acros s th e board .
I nth e interim , whil e OAQP S develop s specifi c guidanc e o nth e * < "top-down " process , I a m requestin g th e Regiona l Offic e t o appl y i t t o ? thei r BAC T determination s an dt o strongl y

encourag e Stat e andloca l agencie s t o d o likewise . Moreover , whe na Stat e agenc y propose s a s BAC T a leve l o f contro l tha t appear s t o b e inconsisten t wit hth e "top-dawn " concept , suc ha s failur e t o adequatel y conside r th e mor e stringent"contro l options , th e Regiona l Offic e i s t o provid e commen t t o tha t agency . A fina l BAC T determinatio nwhic hstil l fail s t o reflec t adequat e consideratio n o f th e factor s tha t woul dhave bee nrelevan t usin g a "top-down " typ e o f analysi s shal l b e considere ddeficien t b y EPA . Training^—N o forma l trainin g workshop s specifi c t o NS Rhav e bee n hel dsinc e 1980 . Many Stat e andloca l agencies , a s wel l a s th e Regiona l Offices , hav e experience da highrat e o f NS Rpersonne l turnove r sinc e then . Many

o f th e basi c problem s tha t ar e occurrin g i nNS Risplenentatio n ca nb e trace dt o th e lack o f comprehensive , continuin g trainin g fo r ne w Regiona l Offic e an dStat e agenc y personnel . T o rectif y

thi s situation , i nF Y1988 , OAQP S wil l wor k o ndevelopin g material s fo r a comprehensiv e trainin g program i nth e form

o f Regiona l workshop s t o b e conducte di nFY1989 . Commencin g i nF Y1989 , biannua l Headquarters-sponsore dNS Rworkshop s wil l b e conducte da t eac hRegiona l Offic e wit hStat e an dloca l agencie s attendanc e encouraged . Worksho ptopic s wil l cove r th e NS Rrule s an d policy , BAC T an dLAE Rdeterminations , effectiv e permi t writing , how t o review a propose dpermi t an daudi t a permi t file , an dothe r program area s a s needed . Appropriate! / - rained . Regiona l staf f ar e t o the nhol dthes e workshop s a t thei r resp^ c w e Stat e agencies . Th e NS Rexpert s from Headquarter s o r NS Rex:>"-_ 3 fro m othe r Region s wil l b e availabl e t o assist . _>
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.(P. 6

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I naddition , Regiona l Office s shoul dreserve ' th e fund s necessar y t o senda t leas t on e EPA staf f representativ e t o th e NS Rworkshop s (for EPA only ) hel dsemiannuall y a t Denver , Colorad o (February) , an dSouther nPines , Nort hCarolin a (July) . Attendanc e a t thes e workshop s play s a vita l rol e i nkeepin g th e Region s up't o dat e o nprogram implementatio nandne w an d emergin g policy . Polic y andGuidance—Continuou s litigatio nandregulator y change s hav e combine dwit hth e conplexit y o f NS Rrule s t o creat e a lo g ja m o f th e polic y andguidanc e neede dt o hel pinterpre t andeffectivel y appl y thes e rules . Therefore , I a m directin g tha t i nF Y198 9 OAQP S dedicat e a t leas t on e staf f perso nt o ensurin g a timel y respons e t o polic y

andguidanc e requests . I nth e interim , I inten dt o continu e OAQPS' s effort s t o compil e an

dorganiz e NS Rreferenc e andguidanc e materials , suc ha s th e NS Relectroni c bulleti nboard .
I realiz e tha t th e initiative s discusse dabov e constitut e onl y th e firs t step s o f a continuin g proces s t o addres s concern s an dneed s relatin g t o NS Rprogra

m implementation . I nrecognitio no f th e possibl e nee dt o .maintai nflexibilit y

i nmanagin g andimproving th e NS Rproces s I will , a s ^ indicate dearlier , establis ha grou pt o monito r ou r progres s unde r thi s o new policy . Th e grou pwil l b e comprise do f representative s from EP A Headquarter s andRegiona l Office s andw e wil l consul t wit hStat e an d loca l agenc y

official s a s par t o f ou r effor t t o obtai ntimel y feedbac k a s w e implemen t thes e initiatives . Additiona l specifi c guidanc e o nimprovement s i nth e program area s discusse dabov e wil l b e issue di nth e nea r future . I nth e meantime , eac h Regiona l Offic e i s directe dt o wor k closel y wit hit s Stat e andloca l agencie s t o ensur e tha t al l aspect s o f th e NS Rpermi t program s compl y wit hal l applicabl e Stat e an dFedera l progra

m requirements . You r comment s andsuggestion s ar e welcome . Pleas e direc t the m t o Gar y McCutchen , Chief , New Sourc e Review

Section , MD-15 , Researc hTriangl e Park , Nort hCarolin a 2771 1 (FT S 629-5592) .
cc : Ai r Divisio nDirectors , Region s I- X