## PART 71 FEDERAL OPERATING PERMIT

STATEMENT OF BASIS

Morongo Band of Mission Indians Morongo Casino Cogeneration Facility

Permit No. MO

- ROP 15

- 01

1. Facility Information

1.1. Permittee

Morongo Band of Mission Indians

12700 Pumarra Road Banning, CA 92220

1.2. Facility Location

Morongo Casino Cogeneration Facility (MCC)

49500 Seminole Drive Cabazon, CA 92230

1.3. Contact Information

Facility Contact: Michael Milhiser, Chief Administrative Officer (951) 755

- 5115

Responsible Official: Robert Martin, Tribal Chairman (951) 755

- 5100

1.4. Description of Operations

MCC is an 8.4 megawatt cogeneration facility consisting of four 4

- stroke, lean

- burn CAT G3520 natural gas

- fired engines, and thr ee 4

- stroke CAT 3516 backup diesel

- fired generators.

1.5. Facility History

MCC was constructed in 2004. EPA issued the initial Title V permit for the facility on August 2, 2005 and renewed it on September 29, 2010. The permit limits the facility’s potential to emit for oxides of nitrogen (NO
x ) and volatile organic compounds (VOC) to less than 18.7 tons per year (tpy) of each pollutant. MCC has made no modifications since the initial construction.1.6. Emission

- Generating Units and Activities

Table 1. Emission

- Generating Units Summary

Emission

Unit I.D.

No. Unit Description Associated Control Equipment

EG

- 1 Caterpillar G3520 natural gas

fired spark ignition 4 stroke lean burn IC engine (2,055 kW) SCR unit and oxidation catalyst with automatic shutdown system before the catalyst inlet temperature exceeds 1350°F

EG

- 2 Caterpillar G3520 natural gas

fired spark ignition 4 stroke lean burn IC engine (2,055 kW) SCR unit and oxidation catalyst with automatic shutdown system before the catalyst inlet

temperature excee ds 1350°F

EG

- 3 Caterpillar G3520 natural gas

fired spark ignition 4 stroke lean burn IC engine (2,055 kW) SCR unit and oxidation catalyst with automatic shutdown system before the catalyst inlet temperature exceeds 1350°F

EG

- 4 Caterpillar G3520 natural g as

fired spark ignition 4 stroke lean burn IC engine (2,055 kW) SCR unit and oxidation catalyst with automatic shutdown system before the catalyst inlet temperature exceeds 1350°F

EG

- 5 Caterpillar 3516B diesel

- fired commercial compression ignition emergen cy IC engine (2,000 kW) N/A

EG

- 6 Caterpillar 3516B diesel

- fired commercial compression ignition emergency IC engine (2,000 kW) N/A

EG

- 7 Caterpillar 3516B diesel

- fired commercial compression ignition emergency IC engine (2,000 kW) N/A

### 2. Tribe Information

2.1. General

The Morongo Band of Mission Indians (“Morongo Reservation”) is a federally recognized Indian tribe whose Indian country lies within the Banning Pass in California. The Morongo Reservation covers approximately 35,000 acres and is home to approximately 1,500 full

- time residents. The Morongo Reservation is rural, and most of the current land use is residential or agricultural. The Morongo Reservation also hosts a hotel and casino, among other enterprises.

2.2. Local Air Quality and Attainmen t Status

Table 2. Morongo Reservation’s Most Stringent Air Quality Designation

Criteria Pollutant Designation Basin/Air Quality Management

Area Ozone (1979 1

- hour

standard/1997 8

- hr standard) 1 Severe

- 17 Nonattainment Morongo Band of Mission

Indians

Carbon Monoxide Attainment South Coast Air Basin

– Riverside County

PM10 Attainment South Coast Air Basin

– Riverside County

PM 2.5 (2006) 2 Serious Nonattainment South Coast Air Basin

– Riverside County Nitrogen Dioxide Unclassified/Attainment South Co ast Air Basin

– Riverside County

Sulfur Dioxide Attainment South Coast Air Basin

– Riverside County

Lead Unclassified/Attainment South Coast Air Basin

– Riverside County



### 3. Emissions

3.1. Potential to Emit

The term potential to emit (PTE) is defined as: the maximum capacity of a stationary source to emit any air pollutant under its physical and operational design. Any physical or operational limitation on the capacity of a source to emit an air pollutant, in cluding air pollution control equipment and restrictions on hours of operation or on the type or amount of material combusted, stored, or processed, is treated as part of its design if the limitation is enforceable by the

1 Morongo Band of Mission Indians is designated as Serious Nonattainment for 2008 Ozone 8

- hr standard. Showing the most stringent designation for New Source Review major source threshold of 25 tpy.

2 South Coast Air Basin

– Riverside County is designated as Moderate Nonattainment for 1997 and 2012 PM 2.5 standards.Administrator.

MCC is located in a serious nonattainment area for ozone, and is thus subject to a 25 tpy major source threshold limitation. In order to avoid major source status, MCC has chosen to limit its NO
x and VOC emissions, which are ozone precursors, by taking fed erally enforceable limits on its PTE. 40 CFR 71.6(b) and section 304(f) of the 1990 Clean Air Act (42 USC 7604) provide discretionary authority to include PTE limits in Part 71 permits. EPA has incorporated plant

- wide federally

enforceable emission limits of 18.7 tpy for both of these pollutants.

Table 3 shows MCC’s PTE for various pollutants, including the enforceable annual caps for NO
x and VOC that were established in the initial Title V permit.

Table 3. MCC’s Facility

- wide PTE (tpy)

NO x VOC SO 2 PM** CO HAP

18.7* 18.7* 1.08 3.62 39.75 5.92 *These PTE levels are based upon the federally enforceable annual caps established in this permit. ** Because all PM is a result of combustion, PM was conservatively assumed to be PM 10 and PM 2.5

.



### 4. Applicable Requirements

The following table summarizes the applicability of federal regulations to the facility. The applicability of these regulations may change given new information about the facility’s operations or if the facility is reconstructed or modified.

Table 4: App licability of Regulatory Programs

Program Applicable

Yes No If Triggered 40 CFR Part 71: Title V Operating Permit Program X 40 CFR Part 52.21: Prevention of Significant Deterioration (PSD) X 40 CFR Part 60 Subpart A: General Provisions X

40 CFR Part 60 Subpart IIII: Standards of Performance for Stationary Compression Ignition Internal Combustion Engines X

40 CFR Part 60 Subpart JJJJ: Standards of Performance for Stationary Spark Ignition Internal Combustion Engines X

40 CFR Part 61 Subp art M: National Emission Standards for

Asbestos X

40 CFR Part 63 Subpart A: General Provisions X 40 CFR Part 63 Subpart ZZZZ: National Emission Standards for Stationary Reciprocating Internal Combustion Engines (RICE ) X

40 CFR Part 64: Compliance Assurance Monitoring (CAM) X

40 CFR Part 68: Chemical Accident Prevention Provisions X

40 CFR Parts 72

– 76: Acid Rain Program X 40 CFR Part 82: Protection of Stratospheric Ozone X4.1. Title V Air Operating Permit Program (40 CFR Part 71)

MCC is subject to the permitting requirements of Title V of the Act under 40 CFR Part 71.4(b). EPA is required to administer and enforce an operating permits program in Indian country if the Indian country doesn’t have an approved Part 70 operating permits progr am.

4.2. Prevention of Significant Deterioration (PSD) (40 CFR Part 52.21)

The PSD program applies additional review to construction and modification of major sources of air pollution in areas where NAAQS are not exceeded. Because the renewal for a Title V pe rmit does not result in an increase in emissions, PSD applicability is not being reviewed at this time. There are no existing PSD permits with conditions that apply to the facility.

4.3. New Source Performance Standards (NSPS) (40 CFR Part 60)

4.3.1. Subpart A: General Provisions

The provisions of Subpart A, the General Provisions of 40 CFR part 60, apply to any affected

source , defined as any group of equipment that emits or may emit any air pollutant and is subject to a standard in 40 CFR part 60. MCC does not have any affected source that is subject to any standards in 40 CFR part 60; therefore, 40 CFR part 60 Subpart A does not apply.

4.3.2. Subpart IIII: Standards of Performance for Stationary Compression Ignition Internal Combustion (IC) Engines

Subpart IIII app lies to stationary compression ignition IC engines that commence construction after July 11, 2007, or reconstruct or modify after July 11, 2005. MCC operates three diesel

- fired backup engines constructed in 2004. The engines have not been modified or reco nstructed since 2004. Therefore, NSPS Subpart IIII does not apply to MCC’s diesel

- fired engines.

4.3.3. Subpart JJJJ: Standards of Performance for Stationary Spark Ignition Internal Combustion Engines

Subpart JJJJ applies to operators of spark ignition interna l combustion engines (i.e., gasoline or natural gas

- fired) that commence construction, modify, or reconstruct after June 12, 2006. MCC operates four natural gas

- fired engines constructed in 2004. The engines have not been modified

or reconstructed since 2004. Therefore, NSPS Subpart JJJJ does not apply to MCC’s natural

gas

- fired engines.

4.4. National Emission Standards for Asbestos (40 CFR Part 61, Subpart M)

Based on MCC’s application, the facility is not currently engaged in the activities regulated

unde r this provision. Condition III.A.2 requiring compliance with the National Emission Standard for Asbestos has been included in the General Requirements section of the air operating permit so that a permit modification will not be required if demolition or renovation at the facility results in the removal of asbestos containing material.4.5. National Emission Standards for Hazardous Air Pollutants (NESHAP) (40 CFR Part 63)

4.5.1. Subpart A: General Provisions

The provisions of Subpart A apply to any source subject t o a standard in 40 CFR Part 63 as referenced in the applicable Subpart. At MCC, the affected sources include stationary internal combustion engines. The applicable general provisions are listed in Table 8 of 40 CFR Part 63 Subpart ZZZZ.

4.5.2. Subpart ZZZZ: National Emission Standards for Stationary Reciprocating Internal Combustion Engines (RICE )

Subpart ZZZZ establishes emission and operating limitations for hazardous air pollutants (HAPs) emitted from stationary RICE located at both major and area HAP sou rces. Under the current RICE NESHAP (January 30, 2013; 48 FR 6674), MCC is considered an existing area source with engines greater than 500 horsepower.

MCC’s EG

- 1, 2, 3, and 4 are subject to requirements for non

- emergency spark ignition 4 stroke

lean bur n non

- remote IC engine that operate more than 24 hours per year. 40 CFR 63.6603(a) and Table 2d requires these engines to install an oxidation catalyst to reduce HAP emissions, which MCC already has. MCC met the initial compliance requirements by conductin g a source test demonstrating the average CO concentration is less than or equal to 47 ppmvd at 15 percent

O 2 and by installing an equipment to automatically shut down the engine if the catalyst inlet temperature exceeds 1350 °F in accordance with Subpart Z ZZZ Table 5.

Conditions V.B.1, V.B.2, V.B. 5 , V.B. 6 , and V.B. 9 are added to meet work practice and operational requirements under 63.6605(b), 63.6640(a), 63.6625(h), Table 6, and Table 2d, Item 9. Condition V.B.1, V.B. 5 , and V.B. 6 are general maintenance and good practice requirements. Condition V.B.2 requires annual compliance demonstration for CO. Condition V.B.3 requires quarterly monitoring using a portable analyzer for NO
x . Condition V.B. 6 restricts the engine startup emission.

Conditions V.C.1, V.C. 2, V.C.5, V.C.6, and V.C.7 are added in accordance with 40 CFR 63.6635, 63.6640, Table 5

, and Table 6 to comply with monitoring and testing requirements. These conditions covers how the permittee should demonstrate continuous compliance and the minimal req uirements for the annual compliance demonstration. Under the RICE NESHAP, MCC is required to conduct performance tests on when the catalyst is changed and annually on all gas

- fired engine for CO.

Conditions V.D.5 and V.D.6 are incorporated to meet recordk eeping and reporting requirements under 40 CFR 63.6655, 63.6650, Table 7, and 63.6660. These conditions cover the additional records required to be in compliance with Subpart ZZZZ, including annual compliance demonstration and deviation reports.

MCC’s EG

- 5, 6, and 7 are subject to commercial compression ignition stationary emergency ICengine requirements, these engines are only subject to 40 CFR 63.6640(f) and 63.6625 (h). Condition VI.B.3 is added to limit engine idle time and VI.B.4 is added to limit no n

- emergency

uses.

4.6. Compliance Assurance Monitoring (CAM) (40 CFR Part 64)

The CAM Rule applies additional monitoring requirements on pollutant specific emission units

that:

1. Are subject to an emission limit for a federally regulated pollutant (or a surrog ate thereof),

2. Use a control device to meet this limit, and

3. Have a pre

- control potential to emit such a pollutant equal to or greater than the Title V major source threshold, unless the pollutant specific emission unit is exempted from the

CAM Rule under 40 CFR § 64.2(b).

While MCC operates SCR on its four natural gas

- fired engines to meet emission limits, 40 CFR § 64.2(b)(1)(i) provides that 40 CFR Part 64 does not apply to emission limits proposed by the Administrator after November 15, 1990 pursuant to section 112 of the Act. Subpart ZZZZ of 40 CFR part 63 is a NESHAP that was proposed by the Administrator pursuant to section 112 of the Act after 1990. Therefore, 40 CFR Part 64 does not apply to these natural gas

- fired engines, or any other equipment at MCC.

. 4.7. Chemical Accident Prevention Provisions (40 CFR Part 68)

The Chemical Accident Prevention Program requires sources that use or store regulated substances above a certain threshold to develop plans to prevent accidental releases. Based on MCC’s application, MCC currently has no regulated substances above th e threshold quantities and is not subject to the requirement to develop and submit a risk management plan. Condition III.A.3, a general requirement to comply with 40 CFR part 68, has been included in the air operating permit so a permit modification will not be required should the program become applicable.

4.8. Acid Rain Program (40 CFR Parts 72

- 76)

Title IV of the Act required U.S. EPA to establish the Acid Rain Program to reduce emissions of acid rain causing pollutants from various sources including utili ty units. MCC is exempt from this program pursuant to 40 CFR 72.6(b)(2) which exempts engines which serve a generator with a nameplate capacity of less than 25 MW.

4.9. Stratospheric Ozone Protection (40 CFR Part 82)

Based on MCC’s application, MCC does not currently engage in any activities regulated under this provision. Conditions III.A.4 and III.A.5, generic condition requiring compliance with the program, has been included in the air operating permit so a permit modification would not be required if any on

- site maintenance required handling of ozone depleting substances.

### 5. Monitoring

The permit includes monitoring provisions to assure compliance with the short term and annual

emission limits that limit MCC’s PTE for NO
x and VOC. EPA is adding additional monitoring provisions as required under 40 CFR Subpart ZZZZ in this permit. The rolling 12

- month equation is modified to more accurately demonstrate compliance with the annual NO
x and VOC limit through the use of the most recent emission factors from the a nnual performance tests. The

NO
x emission factors remain the same as what was established from the initial permit. The VOC

emission factors are from AP

- 42 Chapter 3, Table 3.2

- 2 for the gas

- fired engines’ startups and

shutdowns and Table 3.3

- 1 for emergenc y diesel engines’ operation emissions. The updated equation is shown in Attachment A of the permit.

In order to determine compliance with the short

- term NO
x emission limit and the new CO limit under the RICE NESHAP for the gas

- fired engines, the permit requires annual performance testing. Startup, shutdown, and malfunction emissions are must be counted towards the facility

wide emission limits in Condition IV .A.1. Conditions V.B. 8 and VI.B.2 contain fuel usage limits, which ensure that emissions do not exceed the facility wide emission limits in Condition

IV.A.1. Startup is also subject to work practice requirements in Condition s V.B. 6 and VI.B.3 to

minimize s tartup emissions. Regular use of a portable NO
x analyzer is also required to determine if the engines might be exceeding the emission limit. The analyzer monitoring requires MCC to

take corrective action if the NO
x concentration exceeds 12.0 ppmv @ 15% O 2 , a conservative equivalent (assuming worst case operating scenario) of the NO
x mass emission limit for the gas

fired engines (0.15 grams per brake horsepower

- hour) in Condition IV.A.1.

This monitoring helps to assure that the facility complies with its annual emission caps in order for it to not trigger New Source Review permitting requirements.

Table 5. Monitoring in the Title V permit

Requirement Permit Condition # Monitoring Description Monitoring Condition

#

NO
x and VOC facility

- wide limits IV.A. 1 Rolling 12

- month

emission calculation IV.B.1 through

IV.B.3

NO
x short term monitoring limit V.B .3 Portable NO
x analyzer (quarterly) V.C.3

NO
x and VOC short

term limits V.A.1 Annual performance testing V.C.4

Annual average CO

concentration V.B .2 Annual compliance

demonstration V.C.6



### 6. Other Federal Regulations

6.1. Endangered Species Act (ESA)

Pursuant to Section 7 of the Endangered Species Act (ESA), 16 USC § 1536, and its implementing regulations at 50 C.F.R. Part 402, EPA is required to ensure that any actionauthorized, funded, or carried out by EPA is not likely to jeopardize the continued existence of any Federally

- listed endangered species or threatened species or result in the destruction or adverse modification of such species’ designated critical habitat. The Title V permit EPA is issuing to MCC does not authorize the construction of ne w emission units, or emission increases from existing units, nor does it otherwise authorize any other physical modifications to the facility or its operations. Therefore, EPA has concluded that the issuance of this permit will have no effect on listed spe cies or their critical habitat.

6.2. Environmental Justice

Environmental Justice (“EJ”) is one factor that U.S. EPA considers when taking an action, such as making an Approval decision. This is done in accordance with Presidential Executive Order 12898, Federal Actions to Address Environmental Justice in Minority Populations and Low

Income Populations, which was issued on February 11, 1994. The main goal of the Executive Order is to ensure that federal agencies identify and address, as appropriate, any

di sproportionately high and adverse human health or environmental effects of their programs, policies, and activities on minority or low

- income populations. This permit renewal does not allow or authorize additional air pollution from existing units, and wil l not result in additional health impacts.



### 7. Use of All Credible Evidence

Determinations of deviations, continuous or intermittent compliance status, or violations of the permit are not limited to the testing or monitoring methods required by the underlyi ng regulations or this permit; other credible evidence (including any evidence admissible under the Federal Rules of Evidence) shall be considered by the source and EPA in such determinations.



### 8. EPA Authority

Title V of the Clean Air Act requires that E PA promulgate, administer, and enforce a Federal operating permits program when a State does not submit an approvable program within the time frame set by Title V or does not adequately administer and enforce an EPA

- approved program. On July 1, 1996, EPA adopted regulations codified at 40 CFR Part 71 setting forth the procedures and terms under which the Agency would administer a Federal operating permits program. 61 Fed. Reg. 34202. These regulations were updated on February 19, 1999, to incorporate EPA 's approach for issuing Federal operating permits to covered stationary sources located in Indian country. 64 Fed. Reg. 8247.

As described in 40 CFR 71.4(a), EPA will implement a Part 71 program in areas where a State, local, or Tribal agency has not dev eloped an approved Part 70 program. Unlike States, Indian Tribes are not required to develop operating permits programs, though EPA encourages Tribes to

do so. See, e.g., Indian Tribes: Air Quality Planning and Management, 63 Fed. Reg. 7253 (Feb. 12, 199 8) (also known as the Tribal Authority Rule). Therefore, within Indian country, EPA believes it is generally appropriate that EPA administers and enforces a Part 71 Federal operating permits program for stationary sources until Tribes receive approval to a dminister their own operating permits programs.MCC is located within the boundaries of the Morongo Reservation. Consequently, jurisdiction over the source lies with the Morongo Tribe and with EPA. Because the Tribe does not have an approved Part 70 progr am, EPA is issuing the permit under its Part 71 authority.



### 9. Public Participation

9.1. Public Notice

As described in 40 CFR 71.11(a)(5), all Part 71 draft operating permits shall be publicly noticed and made available for public comment. The public notice of permit actions and public comment period is described in 40 CFR 71(d).

There is a 30

- day public comment period for actions pertaining to a draft permit. Public notice will be given for this draft permit by mailing a copy of the notice to the per mit applicant and The South Coast Air Quality Control District. A copy of the notice will also be provided to all persons who have submitted a written request to be included on the mailing list. Public notice will also be published in the Banning Record Ga zette

9.2. Opportunity for Comment

Members of the public may review a copy of the draft permit prepared by EPA, this statement of basis for the draft permit, the application, and all supporting materials submitted by the source at

the address listed below. C opies of the draft permit and statement of basis can also be obtained from EPA’s website ( http://www.epa.gov/region9/air/permit/r9

- permits

- issued.html ), or by contacting Sheila Ts ai at the EPA address, phone number, or email address listed below. All documents will be available for review at the EPA Region 9 office, during regular business

hours.

If you believe that any condition of the draft permit is inappropriate, you must rais e all reasonably ascertainable issues and submit all arguments supporting your position during the 30

- day public comment period. Any supporting documents must be included in full and may not be incorporated by reference, unless they are already part of the administrative record for this permit or consist of tribal, state or federal statutes or regulations, or other generally available

referenced materials.

All comments received during the public comment period and all comments made during any public hearin g will be considered in arriving at a final decision on the permit. The final permit is a public record that can be obtained by request. A statement of reasons for changes made to the draft permits and responses to comments received will be sent to all per sons who commented on the draft permit.

9.3. Opportunity to Request a Hearing

Any person may submit a written request for a public hearing to Sheila Tsai at the address listed below, by stating the nature of the issues to be raised at the public hearing. EPA shall hold apublic hearing if EPA finds, on the basis of requests, a significant amount of public interest in the draft permit. If a public hearing is held, EPA will provide public notice of the hearing and any person may submit oral or written statemen ts and data concerning the draft permit.

9.4. Mailing List

If you would like to be added to our mailing list to be informed of future actions on this or other

EPA

- issued CAA permits issued on Morongo Reservation, please send your name and address to

Sheila Tsai at the address listed below.

9.5. Contact Information

S heila (Ya

- Ting) Tsai US Environmental Protection Agency Air Permits Office (AIR

- 3)

75 Hawthorne Street San Francisco, CA 94105

Phone: (415) 972

- 3328

Email: Tsai.Ya

- Ting@epa.gov