## United States Environmental Protection Agency

General Permit or Permit by Rule for New or Modified Minor Sources of Air Pollution in Indian Country http://www.epa.gov/air/tribal/tribalnsr.html



## Background Document: True Minor Source Gasoline Dispensing Facilities General Permit and Permit by Rule

Version 1.0
Last Modified: November 14 , 2013



### 1. Gasoline Dispensing Source Category Definition

A Gasoline Dispensing Facility (GDF) is any stationary facility which dispenses gasoline into the fuel tank of a motor vehicle, non road vehicle or equipment, including a nonroad vehicle or nonroad engine used solely for competition. The proposed Minor Source GDF General Permit/Permit by Rule only covers GDF facilities that are located at true New Source Review (NSR) minor sources. A GDF could also include equipment which dispenses diesel fuel. Furthermore, a GDF could be an operation supporting other activities at a facility which otherwise requires a permit.



### 2. Source Category Characterization

The GDFs subject to this general permit or permit by rule are locations at which fuels are delivered by tank trucks to service stations, and commercial accounts, and then transferred to a motor vehicle gasoline tank. GDFs include all retail outlets such as traditional gasoline service stations, convenience stores, truck stops, marinas, and hypermarkets (e.g., warehouse clubs and big box stores ), as well as private and commercial outlets such as those for centrally

- fueled fleets, government operations, and private businesses. 1 This generally does not include airports offering aviation gasoline.

The operations and equipment at a typical GDF are described in AP 42 , Chapter 5.2, Transportation and Marketing of Petroleum Liquids. 2 Emissions of volatile organic compounds (VOC) at GDFs occur due to evaporation, displacement of vapors during unloading of the fuel into onsite storage tanks, displacement of vapors during refueling of vehicles, and breathing losses from the storage tanks . Emissions from GDF are generally divided into two categories: Stage I and Stage II. Emissions during unloading of the cargo (Stage I) are minimized by using submerged filling or bottom filling, in which the fill pipe opening is below the liquid surface
l evel in the receiving tank. Liquid turbulence is controlled significantly during submerged/bottom filling, resulting in low vapor generation. Emissions during unloading can also be controlled with vapor balance. The vapors displaced from the receiving tank during unloading are routed back into the transport tank and returned to the loading terminal.

Stage I vapor balance requires that the source control emissions from the storage tanks during unloading of the gasoline cargo from the tanker truck. This typ ically involves having an extra tube hooked up to the receiving tank
to transfer VOC

- laden vapors displaced from the tank back into the tanker truck, for processing/disposal back at the loading terminal. The requirements in 40 CFR 63, Subpart CCCCCC include a comprehensive set of Stage I vapor control requirements.

1 A more formal regulatory definition of GDF can be found at 40 CFR 63.11132.

2 AP 42, Chapter 5.2, Transportation a nd Marketing o f Petroleum Liquids, June 2008, http://www.epa.gov/ttn/chief/a p42/ch05/index.html

.Page 2 of 18

Evaporative emissions from vehicle refueling and diurnal breathing (Stage II) can be controlled with vapor recovery devices. 3 Recovery of vapors displaced from the vehicl e fuel tank during refueling can be accomplished with pump

- based controls or vehicle

- based onboard refueling vapor recovery (ORVR) systems. Pump

- based Stage II vapor recovery requires that the GDF equip its dispensing pumps with nozzles that recover the VO C

laden fumes that are displaced from the vehicle fuel tank during fueling. A coaxial tube and special nozzle are designed to attach to the vehicles fuel port and recover vented fumes during filling. The recovered fumes are pumped back into the fuel storag e tank. ORVR controls, whose phase

- in began in 1998 for new vehicles, are installed by the vehicle manufacturer. Stage II storage tank breathing loss emissions are controlled by vent pipe pressure/vacuum (P/V) valves and fuel spillage has been reduced by l imits on pump dispensing rates and fuel spillage standards for vehicles. 4

The location of GDFs is highly correlated to human population density and vehicle traffic. The average GDF dispenses about 125,000 gallons per month (gpm). However, this value vari es from under 10,000 gpm for some private outlets up to as much as 420,000 gpm in some very large retail outlets. 5 This is a wide range of throughputs, and it can be concluded that gasoline throughput at GDFs varies significantly.



### 3. State Minor Source P ermit Programs

The U.S. Environmental Protection Agency (EPA) reviewed state government websites for general permits for GDFs. These state permits were examined for use in developing a general permit and permit by rule for GDFs in Indian Country. The EPA selected appropr iate elements from the state permits in developing the documents and regulations for the general permit and permit by rule for this source category. General permit documents for GDFs issued by the States of Alabama, Arizona

, California

, Iowa

, New Jersey

, Ohio

, Oregon , and Nevada were examined in developing this general permit and permit by rule. General permits from these states were chosen for examination because of several characteristics they possess:

Readily available; Clear throughput limits; Degree of regulatory control de pends upon the amount of throughput; Comprehensive set of regulations; and Organization of the regulations followed the typical form for federal NSR permits:

o Limitations and standards, and

o Monitoring, testing, recordkeeping, and reporting requirements.

T ypically, states do not require permits for facilities having gasoline throughputs less than 10,000 gallons per month. The state permits regulate VOC emissions from GDFs by regulating gasoline throughput and equipment requirements. Another common feature o f these permits is that they replicate or incorporate by reference the requirements found in the Area Source National Emission Standards for Hazardous Air Pollutants (NESHAP) for Source Category: Gasoline Dispensing Facilities (40 CFR Part 63, Subpart CCCC CC). No GDF is exempt from the GDF NESHAP regulation, but the requirements vary depending on monthly fuel throughput. These state permits contain requirements for: work practices, submerged filling, Stage I vapor balance equipment for storage tank filling, inspections, and recordkeeping/reporting for throughput. Some states have permits for both ozone

3 Ibid.

4 Evaporation of fuel spillage is not included in the GDF emissions calculations, as they are considered as fugitive emissions for NSR purposes.

5 See Tables 1 and 2 of the report, “ Analysis of Future Options for Connecticut’s Gasoline Dispensing Facility Vapor Control Program,” Connecticut Department of Energy and Environmental Protection, June, 2012.Page 3 of 18

attainment and nonattainment areas. The state permits for nonattainment areas, such as the State of New Jersey

, contain additional requirements for Stage II v apor recovery equipment and testing. Although the EPA has determined that the widespread implementation of ORVR devices in the vehicle fleet have made Stage II vapor

recovery unnecessary , 6 some states have not yet revised their State Implementation Plans ( SIPs) to remove these requirements.

The California Air Resources Board (CARB) has developed an extensive set of regulations for controlling VOC
emissions from GDFs. The EPA is proposing to incorporate the CARB requirements for controlling standing losses from aboveground storage tanks at GDFs into this general permit and permit by rule as the additional requirement for facilities located in serious, severe, or extreme ozo ne nonattainment areas.



### 4. Requirements for General Permits and Permits by Rule

4.1 Documents for General Permits and Permits by Rule

The EPA developed a standardized set of permit documents in support of a general permit and permit by rule for
GDFs lo cated in Indian Country. These consist of the following documents:

Questionnaire: Assists the facility owner or operator in determining whether they are eligible for a General Air Quality Permit or a Permit by Rule;

Request for Coverage under the General Air Quality Permit: States the criteria for qualification, gathers information on the source, facility location, and source contact, and requests technical information on facility equipment, projected gasoline throughput, and attainment status ;

Notification of Coverage under the Permit by Rule: States the criteria for qualification, gathers information on the source, facility location, and source contact, requests technical information on the facility, the attainment status of the location, th e facility’s potential to emit (PTE); and requests that the source certify they will comply with the requirements;

Instructions: Guides the applicant in filling out the Request for Coverage under the General Air Quality
Permit and a Notification of Covera ge under the Permit by Rule;

General Air Quality Permit, Terms and Conditions: Contains the requirements and regulations with which the source must comply. The emission limitations, monitoring, recordkeeping and reporting requirements are in the permit, a s well as requirements for sources located in nonattainment areas. (Note that all of the requirements and regulations with which the source must comply in a permit by rule are included in the rulemaking action the EPA is proposing for this source category. ); and

Potential to Emit Calculator spreadsheet: Allows applicants to calculate potential emissions, based on owner inputs of the number of refueling positions at the GDF, the ozone attainment status of the GDFs physical location, and assuming compliance with EPA standards and continuous operation throughout the year. The PTE Calculator spreadsheet generates potential emissions, based on these inputs.

6 See EPA final rule, Air Quality: Widespread Use for Onboard Refueling Vapor Recovery and Stage II Waiver, (77 FR 28772, May 1 6, 2012) and public docket EPA

- HQ

- OAR

- 2010

- 1076

.Page 4 of 18



### 4.2 Exemption and Qualification for General Permits/Permits by Rule

Facilities applying for the proposed general permit/permit by rule must meet the following criteria:

Must be a true NSR minor source; and Be below the emissions limitations established for the general permit/permit by rule.

New facilities with a PTE or modifications to existing fac ilities with an emissions increase lower than the minor NSR thresholds specified in the provisions of the Review of New Sources and Modifications in Indian Country rule at 40 CFR 49.153 are exempt from the minor NSR program. The exemption thresholds are li sted in Table 1 below. Facilities applying for the proposed general permit/permit by rule may calculate their PTE using the PTE calculator provided to determine if they are below these thresholds and exempt from the minor NSR program.

Table 1: Minor NSR Thresholds in 40 CFR 49.153
Pollutant Attainment Area Nonattainment Area Carbon Monoxide (CO) 10 tons per year (tpy) 5 tpy
Particulate Matter (PM) 10 tpy 5 tpy

PM 10 5 tpy 1 tpy

PM 2.5 3 tpy 0.6 tpy Sulfur Dioxide (SO 2 ) 10 tpy 5 tpy Nitrogen Oxides (NO X ) 10 tpy 5 tpy Volatile Organic Compounds (VOC) 5 tpy 2 tpy

Under current EPA policy, only true NSR minor sources qualify for the proposed general permit/permit by rule. Therefore, facilities will be required to compare their PTE to the NSR major sourc e thresholds to determine if they qualify for the proposed general permit/permit by rule. The NSR major source threshold for attainment areas is 250 tpy for any criteria pollutant. The NSR major source thresholds for nonattainment areas are
summarized in T able 2 below. It is unlikely that a GDF operating alone will have emission rates which surpass
these thresholds:

Table 2: NSR Major Source Thresholds for Nonattainment Areas
Pollutant Nonattainment Classification NSR Major Source Threshold

Ozone Marginal 100 tpy of VOC or NO X Moderate 100 tpy of VOC or NO X Serious 50 tpy of VOC or NO X Severe 25 tpy of VOC or NO X Extreme 10 tpy of VOC or NO X PM 10 Moderate 100 tpy

Serious 70 tpy

CO Moderate 100 tpy

Serious 50 tpy

SO 2 , NO 2 , PM 2.5 No nonattainment classification 100 tpy

If the facility’s PTE is above the NSR major source threshold of 250 tpy, or above any applicable nonattainment area thresholds listed in Table 2 (for any pollutant), then the facility does not qualify for the proposed generalPage 5 of 18

permit/permit by rule. The fo llowing documents are available to assist sources in the screening and application

process:

Questionnaire; Request for Coverage under the General Air Quality Permit; and Notification for Coverage under the Permit by Rule.

For facilities not exempt from the minor NSR program and having a PTE below the NSR major source thresholds, the facilities will further evaluate if they could meet the throughput limits and operating requirements established in this general permit/permit by rule. The specific requirem ents for the proposed general permit/permit by rule are discussed in Sections 4.3 through 4.7. The emissions associated with the throughput limits are lower than the NSR major source thresholds and were derived as described below in Section 5.

4.3 Specif

ic Permit Requirements for General Permits/Permits by Rule

The terms and conditions of the GDF general permit/permit by rule were established according to the required permit content and analyses in the Tribal Minor NSR Rule. The required permit content is listed in 40 CFR 49.155(a)

– What information must my perm it include? Below we describe the basis for the permit conditions.

40 CFR 49.155(a)(1)

– General Requirements The rule establishes general requirements that each permit must identify: the effective date of the permit; the date by which the owner/operator must commence construction in order for the permit to remain valid; the emission units subject to the permit an d their associated emission limitations; and monitoring, recordkeeping, and reporting requirements to assure compliance with the emission limitations.

The proposed general permit/permit by rule contains all of this required information, except for the em ission units subject to the permit. Because of the nature of general permits/permits by rule we believe it is more appropriate to identify the emission units covered by the proposed general permit/permit by rule in the Approval of the Request for Coverage. The proposed general permit/permit by rule incorporates the Approval of the Request for Coverage into the permit. Each permit contains a separate section that specifically identifies the emission limitations and standards, monitoring and testing, recordke eping, and reporting and notification requirements.

40 CFR 49.155(a)(2)

– Emission Limitations The permit must contain the emission limitations determined by the reviewing authority under 40 CFR 49.154(c) for each affected emissions unit. 40 CFR 49.154(c)

– How will the reviewing authority determine the emission limitations that will be required in my permit?

– identifies the case

- by

- case control technology review that must be used by the reviewing authority to determine the appropriate level of control. I n carrying out the case

- by

case control technology review, the reviewing authority must consider the following factors:

1. Local air quality conditions;

2. Typical control technology or other emission reduction measures used by similar sources in surrounding

ar eas; 3. Anticipated economic growth in the area; and

4. Cost

- effective emission reduction alternatives.

In addition, the reviewing authority must require a numerical limit on the quantity, rate or concentration of emissions for each regulated NSR pollutant emit ted by each affected emissions unit, for which such a limit isPage 6 of 18

technically feasible. The emission limitation required may also be included as pollution prevention techniques, design standards, equipment standards, work practices, operational standards or a ny combination thereof. However, the emission limitations must assure that each affected emission unit will comply with all requirements of 40 CFR parts 60, 61, and 63

, as well as any federal or tribal implementation plans that apply to the unit. Finally, the emission limitations required may not rely on a stack height that exceeds good engineering practice or any other dispersion technique, except as allowed by 40 CFR 51.118(b). To address the requirements for establishing emission limitations the followin g consideration were used for setting the limits in the general permit/permit by rule for HMA plants:

1. Local air quality conditions

– To address this requirement, the general permit is not intended to apply to title V major sources. For GDFs locating in se rious, severe, or extreme ozone nonattainment areas throughput limits are necessary to ensure sources are below the applicable title V major source (and major NSR) thresholds. As a result, GDFs locating in areas with worse air quality conditions must have less potential emissions. The proposed general permit/permit by rule also includes specific emission limitations on aboveground storage tanks in those areas. The additional control requirements for
nonattainment areas are discussed in Section 4.3.1. The de rivation of emission limitations and the throughput limits in the applicability questionnaire, application, and Emission Limitations and Standards
section of the proposed general permit/permit by rule are discussed fully in Section 5.

2. Typical control tec hnology or other emission reduction measures used by similar sources in surrounding

areas

– For sources locating in attainment areas we looked at the control requirements specified by 40 CFR parts 60, 61 and 63. These regulations establish minimum technolo gy and emission limitations that must be met nationally and also meet the requirements of 40 CFR 49.154(c)(4) to ensure compliance with parts 60, 61, and 63. For this proposed general permit/permit by rule we considered regulations that apply to the equipm ent at GDFs:

a. 40 CFR 63 Subpart CCCCCC

– National Emission Standards for Gasoline Dispensing Facilities ; b. 40 CFR 63 Subpart ZZZZ

– National Emission Standards for Hazardous Air Pollutants for Stationary Reciprocating Internal Combustion Engines ;

c. 40 CFR 60 Su bpart IIII

– Standards of Performance for Stationary Compression Ignition Internal Combustion Engines ; and
d. 40 CFR 60 Subpart JJJJ

– Standards of Performance for Stationary Spark Ignition Internal Combustion Engines

.

Note that 40 CFR 60 Subpart Kb

- Standards of Performance for Volatile Organic Liquid Storage Vessels (Including Petroleum Liquid Storage Vessels) for Which Construction, Reconstruction, or Modification
Commenced after July 23, 1984

– does not apply to GDFs. See 40 CFR 60.110b(b)(6).

Th ese regulations cover emissions from the following equipment at GDFs:

Gasoline storage tanks and filling operations; Gasoline pumping operations; and Emergency stationary engines

.

Review of the regulations resulted in permit conditions requiring GDFs to meet the requirements for GDF that have a throughput of 100,000 gallons per month or more. This requires the GDFs to meet Stage I vapor recover requirements, use submerged filling, and to minimize emissions from spills and open containers. Certain small ga soline storage tanks are exempt from the Stage I vapor recoveryPage 7 of 18

requirements. Tanker tanks unloading gasoline into storage must meet certain work practice standards for reducing emissions.

Emergency engines, based on model year, must be certified to exis ting emission standards and those engines not required to be certified have to meet certain maintenance requirements. Those engine using fuel oil must use diesel or biodiesel with a sulfur content not to exceed 15 parts per million (ppm).

3. Anticipated eco nomic growth in the area

– The Reviewing Authority may consider anticipated economic growth when determining whether coverage under the proposed general permit/permit by rule is justifiable. Considering, however, that the general permit sets emission stand ards that are consistent with what is required by GDFs across the country, we expect that this will rarely be a factor.

4. Cost

- effective emission reduction alternatives

– The proposed general permit/permit by rule sets
emission standards that are consisten t with what is required by GDFs across the country. As such, the chosen technologies are considered widely available and consideration of more cost

- effective alternatives is not necessary at this time. We intend to periodically review technology costs in t he future to determine when more stringent, cost

- effective technologies become widely available.

40 CFR 49.155(a)(3)

– Monitoring Requirements
The proposed general permit/permit by rule must include monitoring that is sufficient to assure compliance with the emission limitations that apply to the source. The proposed general permit/permit by rule requires monitoring of the vapor control recover systems on a weekly basis to determine whether the equipment is in good working order. The proposed general permi t/permit by rule also requires initial performance testing to ensure the vapor recover systems were designed properly. If located in a serious, severe, or extreme ozone nonattainment the permittee must also monitor the monthly gasoline throughput.

40 CFR 49.155(a)(4)

– Recordkeeping Requirements The proposed general permit/permit by rule must include recordkeeping that is sufficient to assure compliance with the emission limitations and monitoring requirements, including certain statements listed in 40 CFR 49.155(a)(4)(i) and (ii). In addition to the recordkeeping requirements in 40 CFR 49.155(a)(4)(i), the proposed general permit/permit by rule also requires records of the weekly inspections of the vapor recovery systems, the maintenance and use of emergen cy engines, and the results of each performance test required. If located in a serious, severe, or extreme ozone nonattainment the permittee must maintain records of monthly gasoline throughput and the 12

- month rolling total of gasoline throughput.

40 CFR 49.155(a)(5)

– Reporting Requirements The proposed general permit/permit by rule includes the reporting requirements listed in 40 CFR 49.1559(a)(5)(i) and (ii) related to annual reports and reporting of deviations.

40 CFR 49.155(a)(6)

– Severability Cla use The proposed general permit/permit by rule includes a severability clause to ensure the continued validity of the other portions of the permit in the event of a challenge to a portion of the permit.

40 CFR 49.155(a)(7)

– Additional Provisions The gene ral permit/permit by rule contains the additional provision required for each permit. These conditions are found in the General Provisions section of the general permit.Page 8 of 18

4.3.1 Requirements for Sources Located in Nonattainment Areas

For sources located in nonattainment areas we looked at the control requirements required in other nonattainment areas in the country, specifically:

South Coast Air Quality Management Districts Rule 461 Gasoline Transfer and Dispensing

– this rule

is in an ozone nonattainmen t area ( SC Rule 461 )

Beyond what is already required for attainment areas in the general permit, this rule also has additional requirements for aboveground storage tanks (ASTs). Please see S ection 4.3.2 for a discussion on why the general permit does not require Stage II controls. The certification procedure for ASTs is CP

- 206. CP

- 206 requires ASTs to meet standing loss emission limitations of 0.57 lb VOC per 1,000 gallons per day for new ASTs and 2.26 lb VOC per 1,000 gall ons per day for modified or reconstructed ASTs. This requirement is included in the general permit as well as the applicable testing procedure to demonstrate compliance. The other limits that apply to attainment areas in the general permit also apply to no nattainment areas.

4.3.2 Additional Considerations not included in the General Permit

The draft permit does not include the following limitations which are common in the state permits reviewed. The reasons for not including these limits in this general permit are explained below:

Stage II Vapor Recovery : State permits for GDFs located in serious, severe, or extreme ozone nonattainment areas typically require that the gasoline dispensing pumps be equipped with Stage II vapor recovery equipment. Stage II controls were originally required in Section 182(b)(3) of the Clean Air Act, 42 U.S.C. 7511a(b)(3). The EPA promulgated rules requiring the installation of ORVR in all new motor vehicles. ORVR equipment 7 replaces the need for Stage II vapor recovery at GDF s, and ORVR is being phased in to the motor vehicle fleet as older motor vehicles are replaced. The Congress recognized that ORVR and Stage II controls would eventually become redundant as the motor vehicle fleet turned over and thus included a provision t hat would allow states that had adopted Stage II requirements under section 182(b)(3) to remove those controls after the EPA found that ORVR was in widespread use in the motor vehicle fleet. On May 16, 2012, the EPA announced its finding that ORVR

was in w idespread use and Stage II was no longer required under section 182(b)(3) of the Act for serious, severe,
and extreme nonattainment areas

. 8 However, states still need to revise their SIPs to remove it and address sections 110(l), 184(b)(2), and 193 require ments. Due to the time lag required to revise SIPs, state permits still contain Stage II requirements. The widespread use determination by the EPA indicates that ORVR is the governing control technology now and into the future. Therefore, Stage II vapor re covery is not required in this general permit and permit by rule for new or modified GDFs in tribal areas.

4. 4 Requirements of the Endangered Species Act and National Historic Preservation Act

Prior to seeking coverage under this general permit, sources must satisfactorily address the permitting requirements related to the Endangered Species Act and the National Historic Preservation Act. Attached to the request for coverage documents for the GDF general permit/permit by rule, the EPA provides guidance t o a s s i s t

sources i n c o m pl y in g w i t h t h ese two statutes.

7 See the EPA website http://epa.gov/otaq/orvr.htm for more information on ORVR.

8 See EPA final rule, Air Quality: Widespread Use for Onboard Refueling Vapor Recovery and Stage II Waiver, (77 FR 28772, May 16, 2012) and public docket EPA

- HQ

- OAR

- 2010

- 1076

.Page 9 of 18

4.5 Permit by Rule Requirements

The permitting package includes a Notification of Coverage under the Permit by Rule which essentially requests that the source agree to comply with the permit by rule requirements without incorporating them into a separately issued permit. The explicit req uirements for a source requesting coverage under a Permit by Rule are specified in the rule for GDFs at 40 CFR 49.162.

5. Emission Limitations 9 and Surrogate Throughput Limits

5.1 Developing the Surrogate Limits and Limitations

The EPA evaluated the emi ssions from equipment in use at a typical GDF. VOC is the primary pollutant of concern. The EPA examined the minor NSR thresholds for VOC (shown in Table 1 above) and derived the corresponding fuel throughput applicability limits for sources in both attain ment areas and nonattainment areas (see Table 3). These are the fuel throughput levels corresponding to the PTE of VOC at which the NSR rule becomes applicable to a GDF.

The EPA used the pollutant emissions levels from the minor source NSR applicability thresholds in Table 1 of 40 CFR 49.153 ( Review of New Sources and Modifications in Indian Country) to back calculate the gasoline throughput limits for permit applicability for attainment and nonattainment areas as shown in Table 3. VOC
emissions due to st orage tank refilling, displacement from the vehicle tank, and storage tank breathing losses are calculated using emission factors from AP 42, Chapter 5.2, Transportation and Marketing of Petroleum Liquids, and recent EPA guidanc e 10 and findings

, 11 based on the throughput of gasoline. Stage I and Stage II type emissions occur with diesel fuel dispensing operations but they are very low. The true vapor pressure of diesel fuel is only about 0.2 percent of 7 psi RVP gasoline at 70°F. For completeness, the potential to emit (PTE) calculator provided as part of this NPRM includes diesel emissions but these in total would be very small in comparison to gasoline vapor emissions. For 2014, a gasoline throughput of 2,105,263 gallons per year was determined to be equivalent to 2 tpy of VOC emissions. This is the NSR pollutant emission applicability threshold for ozone nonattainment areas. Similarly, for 2014, a gasoline throughput of 4, 016,064 gallons per year was
det ermined to be equivalent to 5 tpy of VOC emissions. This is the NSR pollutant emission applicability threshold for ozone attainment areas. Sample calculations showing how these throughputs were determined are shown in Appendix A. It should be noted that th ese calculations are for 2014, and the results would be different (and throughput limits likely larger) for later years.

9 The definition of emission limitation used in this Background Document is the one provided in the Indian Country NSR rule (described in Section 4.3) and inc ludes requirements established by the reviewing authority that relate to the operation of a source, which allows for the use of production throughput limits.

10 U.S.EPA, Guidance on Removing Stage II Gasoline Vapor Control Programs from State Implementation Plans and Assessing Comparable Measures, EPA

- 457/B

- 12

- 001, August 7, 2012.

11 Glenn Passavant, OTAQ, Memorandum to Public Docket EPA

- HQ

- OAR

- 2010

- 1076, Updated Data for ORVR Widespread Use Assessment, 2012

.Page 10 of 18 Table 3. Lower Fuel Throughput Limits for 2014

Attainment Status Lower Fuel Throughput Limits (gallons/year)

Ozone Attainment Areas 4,016,064

Ozone Nonattainment Areas 2,105,263

These emission numbers assume that all GDFs that dispense more than 1,200,000 gallons per year will be using Stage I vapor controls, as required under 40 CFR 63.11118. These emission numbers also assume that 82% of the
motor vehicle fleet has ORVR installed 12 and this will reduce displacement emissions during refueling by about 80%. As the percentage of the vehicle fleet with ORVR installed increases over time, the emissions of VOC duri ng refueling will decrease. Table 4 shows the EPA ’ s estimate of the percentage of the vehicle fleet with ORVR.

Table 4: Percent of Vehicle Fleet with ORVR

Year % ORVR

2011 72%

2014 82%

2020 92%

2025 96%

5.2 Emission Limitations

Four considerations form the basis for the upper limits for the GDF general permit and permit by rule:

1. Are there any EPA regulation

- based emission limitations?

2. What do actual emissions data from the 2008 National Emissions Inventory (NEI) 13 indicate about the

s ize profile of the source category?

3. Where do state programs establish eligibility limits?

4. Is there a natural ceiling on the amount of gasoline a single GDF can dispense?

5.2.1 EPA Regulation

- Based Emission Limitations

There are no EPA regulations

- based emission limitations for GDFs in any NSPS or NESHAP regulations. If a source were to have potential emissions at or above major source levels (100 tpy of VOC), then a Title V permit would be necessary. However, it is unlikely for a GDF to have potential VO C emissions that would require a Title V permit. The amount of fuel throughput corresponding to 100 tpy of potential emissions (Title V major source levels) far exceeds the reasonable capacity of even the largest GDFs to accommodate the vehicular and tanke r truck traffic in and out of the refueling facility. The EPA also considered writing the general permit and permit by rule with an upper limit on fuel throughput for GDFs located in ozone nonattainment areas. The EPA determined that an upper limit on fuel throughput (or surrogate emissions limitations) for these GDFs is not necessary for

12 Glenn Passavant, OTAQ, Memorandum to Public Dock et EPA

- HQ

- OAR

- 2010

- 1076, Updated Data for ORVR Widespread
Use Assessment, 2012.

13 For more information, go to: http://www.epa.gov/ttn/chief/net/2008inventory.html

.Page 11 of 18

most areas, but included one for serious and above ozone nonattainment areas as extra air quality protection. This is discussed fully in Section 5.2.4 below.

In order to insure that a GDF issued a general permit/permit by rule would not be a Title V major source because it was a major source of hazardous air pollutants (HAP), the EPA examined the HAP content of the VOC
emissions. The emission levels at which a new or modi fied source becomes a major source of HAP are 10 tpy for a single HAP or 25 tpy for any combination of HAPs. The EPA tested the HAP content in the vapor of normal gasoline

, 14 and determined that a single HAP in gasoline vapor was present at an average of 1.6% by weight and a maximum of 4.4% by weight. Total HAPs were present in gasoline vapor at an average of 4.8% by weight and a maximum of 11% by weight. M aterial Safety Data Sheets for typical gasoline blends were evaluated and it was determined that single HAPs are present in liquid fuels at an average concentration of 25% and total HAPs are present in liquid fuels at an average concentration of 65%. Th e EPA used this HAP content information and calculated the HAP emissions from vapor emissions and liquid spillage at GDFs, assuming that all HAPs in any liquids spilled would volatize completely. A GDF is not a major source for HAP until the VOC emissions are above approximately 200 tpy. Therefore, there is no concern that a GDF operating under a general permit or permit by rule could be a major source of HAP emissions.

5.2.2 Analysis of NEI Data

The EPA analyzed 2008 NEI data for existing GDFs across th e entire U.S. to evaluate the emission limitations for the general permit and permit by rule. Although the NEI does not include actual emissions information for sources in Indian Country, it reflects the actual emissions from GDFs in 50 states. In order to analyze facilities whose emissions are similar to those for sources potentially subject to the Indian Country NSR Rule, the EPA selected facilities for analysis with the North American Industry Classification System (NAICS) codes listed in
Table 5.

Table 5: NAICS Codes Selected for GDFs

NAICS Code Description

4471 Gasoline Stations

44711 Gasoline Stations with Convenience Stores

447110 Gasoline Stations with Convenience Stores

44719 Other Gasoline Stations

447190 Other Gasoline Stations

For sources in these five NAICS codes, the EPA selected sources with actual emissions both below and above the
minimum emissions limitations listed in Table 6. The lower threshold for ozone a ttainment areas was set at 5 tons, while the lower threshold for ozone nonattainment areas was set at 2 tpy. These are the NSR applicability thresholds for ozone attainment and nonattainment areas from Table 1 of 40 CFR 49.153 (Indian Country NSR Rule). Fo r purposes of this analysis, facilities located in nonattainment areas are defined as facilities located in the counties that are designated nonattainment for ozone. 15

14 US EPA, OAQPS, “Gasolin e Distribution Industry (Stage 1)

– Background Information for Proposed Standards

, ” EPA

- 453/R

94

- 002a, January 1994

15 For this analysis, o nly point source NEI data were used

.Page 12 of 18 Table 6: Emission Ranges Selected for GDFs

Criteria Pollutants VOC

Attainment Area Min. Emissions (tpy) 5 Max. Emissions (tpy) 250

Nonattainment Area Min. Emissions (tpy) 2 Max. Emissions (tpy) 250

With the NAICS codes listed in Table 5 and the emission ranges defined in Table 6

, the EPA identified 359 gasoline dispensing facilities located in attainment areas and 1,269 gasoline dispensing facilities located in

nonattainment areas. A verage emissions for GDFs in attainment areas for the e missions ranges provided in
Table 6 are 12 tpy . Average emissions for GDFs in attainment areas for the emissions ranges provided in Table 6 are 8 tpy.

5.2.3 State Program Limitations

The throughput limits and emission limitations in state permits vary considerably. The Arizona general permit has a lower applicability throughput limit of 6,000,000 gallons per year and an upper limit of 13,500,000 gallons per year. The Alabama, Californi a, and Nevada general permits that were examined have no explicit lower or upper throughput limits, but are required for all GDFs subject to Subpart CCCCCC. Linn County in the State of Iowa issues separate permits for facilities with throughputs greater th an 10,000 gallons per month and facilities with throughputs greater than 100,000 gallons per month. There is no upper limit on gasoline throughput in the latter permit. New Jersey has two general permits with no lower throughput limits. The first permit ha s an upper throughput limit of 120,000 gallons per year and the second permit has an upper throughput limit of 6,000,000 gallons per year. Ohio permits have three different lower throughput limits (5,000, 10,000, and 50,000 gallons per month) depending on the county of location and if the facility has Stage I or Stage II controls installed. There is no upper limit on gasoline throughput in the Ohio permits. The State of Oregon has two general permits for gas dispensing facilities. Their throughput limits va ry depending upon the attainment status of the county in which the GDF is located. One permit has a lower limit of 10,000 gallons per month and an upper emissions limitation of 39 tpy of VOC and applies to GDFs using Stage 1 recovery. The other permit appl ies to facilities in specific nonattainment counties that dispense greater than 600,000 gallons of gasoline per year. The only commonality noticed in the lower and upper thresholds in state permits is that some of the state permits follow
the limits in NES HAP Subpart CCCCCC of 10,000 and 100,000 gallons per month. States with no ozone nonattainment areas tended to have no upper limits on throughput, while urbanized states set upper throughput limits or emissions limitations in their general permits. Table 7 shows the limits imposed by GDF permits for the states reviewed.

Table 7 : State GDF Permit Limits and Limitations

State Lower Gasoline

Throughput Limits Upper Gasoline Throughput Limits Upper Pollutant
Emission
Limitations Special

Requirements

Alabama None * N/A N/A

Arizona 6,000,000 gallons/year 13,850,000 gallons/year N/A

California None * N/A N/APage 13 of 18

State Lower Gasoline

Throughput Limits Upper Gasoline Throughput Limits Upper Pollutant
Emission
Limitations Special

Requirements

Iowa 10,000 gallons/month 100,000 gallons/month N/A

Iowa 100,000 gallons/month None N/A

New Jersey N/A 120,000 gallons/year 0.74 tons VOC/year Using only Stage 1

vapor recovery

New Jersey N/A 6,000,000 gallons/year 1.8 tons VOC/year Using Stage 2 vapor

recovery

Nevada None * N/A N/A

Ohio 5,000 gallons/month < 10,000 gallons/month N/A Stage 1 vapor

recovery

Ohio 10,000 gallons/month < 50,000 gallons/month N/A Stage 2 vapor

recovery

Ohio 50,000 gallons/month N/A N/A Stage 2 vapor

recovery

Oregon ≥ 10,000 gallons/month N/A 39 tons VOC/year Subject to Stage 1

vapor recovery

Oregon ≥ 600,000 gallons/year 25,100,000 gallons/year 39 tons VOC/year Subject to Stage 2

vapor recovery * Permit required for all GDFs subject to 40 CFR 63, Subpart CCCCCC.

5.2.4 Is There a Natural Ceiling on VOC Emissions from GDFs

In order to determine if an upper gasoline throughput limit was necessary for GDFs loca ted in ozone attainment
areas, t he EPA examined the throughputs of gasoline that would correspond to emissions of VOC at NSR major
source levels. The EPA examined if there is a natural ceilin g on the amount of fuel a single GDF can dispense. A study of Canadian gasoline retailers found that the average gasoline retailer dispensed 3.22 million liters (850,634 gallons) of fuel per year in 2010. The largest retailers had average sales of 8 millio n liters, while some had maximum throughputs in excess of 10 million liters (2.64 million gallons). This data indicates that GDFs do have some practical upper limit on the amount of gasoline that can be sold at a single gasoline station. The traffic conges tion and wait times at the pumps at a gasoline station serve as a bottleneck on the potential emissions of VOC due to vehicle tank refueling. A throughput of 2,640,000 gallons of fuel per year results in approximately 2.6 tons of VOC emissions for a GDF lo cated in an ozone nonattainment area. This is well below the NSR major source threshold.

This line of reasoning is further reinforced by use of the PTE calculator. For 2014, to reach emissions of 5tpy a GDF would have to pump 5.3 million gallons per year or 440,000 gallons per month. This is at the high end of population estimates identified i n analysis conducted by the New York Department of Environmental Conservation. The widespread implementation of ORVR, reformulated gasoline blends for nonattainment areas, and studies showing decreased spillage losses all contribute to lower emissions at

G DFs per gallon of throughput in the future. Thus, the EPA has determined that generally upper limits on fuel throughput are not necessary. However to help ensure that GDFs permitted through this general permit/permit by rule the EPA is proposing that GDFs located in serious, severe or extreme ozone nonattainment areas limit throughput of gasoline to less than 10 ,000,000 gallons per year based on a 12

- month rolling tota l (See Appendix B for the calculation of this throughput limit) . This throughput limit

ser ves a s a surrogate emissions limitation and is set at a level intended to ensure that GDFs under thisPage 14 of 18

general permit/permit by rule remain minor sources and below the lowest major source threshold for extreme ozone nonattainment areas of 10 tpy

.Page 15 of 18



### References:

40 CFR 49.1

– 40 CFR 49.173, Indian Country Air Quality Planning and Management. http://www.gpo.gov/fdsys/pkg/CFR

- 2011

- title40

- vol1/pdf/CFR

- 2011

- title40

- vol1

- part49.pdf

40 CFR 52.21, Prevention of Significant Deterioration of Air Quality. http://www.gpo.gov/fdsys/pkg/CFR

- 2007

- title40

- vol3/xml/CFR

- 2007

- title40

- vol3

- sec52

- 21.xml

40 CFR Part 63 , Subpart CCCCCC, National Emission Standards for Hazardous Air Pollutants for Gasoline Dispensing Facilities

. http://www.epa.gov/ttnatw01/gasdist/gasdispg.html

Alabama, Department of Environmental Management, Air Permit Application for Gasoline Dispensing Facilities

. http://adem.alabama.gov/DeptForms/Form197.pdf

AP 42 , Fifth Edition, Compilation of Air Pollutant Emission Factors, Volume 1: Stationary Point and Area Sources

, U.S. Environmental Protection Agency

. http://www.epa.gov/ttnchie1/ap42/

Arizona , Pima County Dept. of Environmental Quality, “General Air Qual ity Operating Permit for NESHAP Gasoline Dispensing Facilities

. ” http://www.deq.pima.gov/permits/PDF/GDF/GDF.pdf

California Environmental Protection Agency, Air Resources Board, “ CP

- 206

- Certification Procedure for Vapor Recovery Sy stems at Gasoline Dispensing Facilities Using Aboveground Storage Tanks

. ” http://www.arb.ca.gov/regact/2007/ast07/ast07.htm and http://www.arb.ca.gov/regact/2007/ast07/frocp206.pdf

California , San Diego Air Pollution Control District, Equipment Specific Permitting Guidelines, Gasoline Dispensing Facilities

. ” http://www.sdapcd.org/permits/EquipGuide/gasoline_dispensing.pdf

Federal Register

, U.S. Environmental Protection Agency

, Vol. 76, No. 127, July 1, 2011, Pag es 38748

- 38808, “Review of New Sources and Modifications in Indian Country; Final Rule .” http://www.gpo.gov/fdsys/pkg/FR

- 2011

- 07

- 01/html/2011

- 14981.htm

Glenn Passavant, U.S. Env ironmental Protection Agency, Office of Transportation and Air Quality, Memorandum
to Public Docket EPA

- HQ

- OAR

- 2010

- 1076, Updated Data for ORVR Widespread Use Assessment, 2012.

Iowa , Linn County Public Health Air Quality General Permit for a Large Gasoline Dispensing Facility. http://www.linncleanair.org/Content/Regulati ons/Requirements

- for

- Gasoline

- Dispensing

- Facilities.aspx

Material Safety Data Sheets for Commercial Gasolines

. http://www.docs.citgo.com/msds_pi/UNLEAD.pdf http://www.mcohio.org/services/risk/docs/MSDS_for_Gasoline.pdf and http://www.valero.com/V_MSDS/002%20

- %20UNLEADED%20GASOLINE.pdf

Nevada , Division of Environmental Protection, Class IV Operating Permit for Gasoline Dispensing Facilities

. http://ndep.nv.gov/baqp/technical/class4.html

New Jers ey , Dept. of Environmental Protection, “General Permit Storage and Transfer of Service Station Fuels Using Only Stage 1 Vapor Recovery

. ” http://www.nj.gov/dep/aqpp/downloads/general/GP

- 0 14.pdf andPage 16 of 18

“General Permit Storage and Transfer of Service Station Fuels at Gasoline Dispensing Facilities

. ” http://www.nj.gov/dep/aqpp/downloads/general/GP004.pdf

Ohio Environmental Protection Agency

. http://www.epa.ohio.gov/dapc/engineer/stgtc.aspx

Oregon Dept. of Environmental Quality

. http://www.deq.state.or.us/aq/permit/acdp/general.htm

U.S. Environmental Protection Agency, “Summary of Regulations Controlling Emissions from Gasoline Dispensing Facilities (GDF)

. ” http://www.epa.gov/ttn/atw/area/gdfb.pdf

U.S. Environmental Protection Agency, Office of Air Quality Planning and Standards, “Gasoline Distribution Industry (Stage 1)

– Background Information for Proposed Standards

, ” EPA

- 453/R

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. http://nepis.epa.gov/Exe/ZyNET.exe/2000H4F5.TXT?ZyActionD=ZyDocument&Client=EPA&Index=1991+Thru+19 94&Docs=&Query=&Time=&EndTime=&SearchMethod=1&TocRestrict=n&Toc=&TocEntry =&QField=&QFieldYea r=&QFieldMonth=&QFieldDay=&IntQFieldOp=0&ExtQFieldOp=0&XmlQuery=&File=D%3A \ zyfiles \ Index%20Data \ 91thru94 \ Txt \ 00000015 \ 2000H4F5.txt&User=ANONYMOUS&Password=anonymous&SortMethod=h|

- &MaximumDocuments=1&FuzzyDegree=0&ImageQuality=r75g8/r75g8 /x150y150g16/i425&Display=p|f&DefSe ekPage=x&SearchBack=ZyActionL&Back=ZyActionS&BackDesc=Results%20page&MaximumPages=1&ZyEntry=1 &SeekPage=x&ZyPURL

U.S. E nvironmental Protection Agency

, “ Guidance on Removing Stage II Gasoline Vapor Control Programs from State Implementation Plans and Assessing Comparable Measures, ” EPA

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Western States Petroleum Association, “ Underg round Storage Tank Vent Line Emissions from Retail Gasoline Outlets, ” AV

- FR

- 92

- 01

- 204R2, May 1994.Page 17 of 18



### Appendix A: Emissions Calculations for Lower Throughput Thresholds for GDFs for 2014

Key for Calculations:

Abbreviation Description VOC E mission F actor (lb s /1,000 gallons)
STF Storage Tank Filling Losses 0.30

STB Storage Tank Breathing Losses 0.25

DIS

- A Dispensing Losses

– Attainment Area 1.91

DIS

- NA Dispensing Losses

– Nonattainment Area 1.33

TP Gasoline Throughput (gallons/year) NA

CF Conversion Factor (1 ton/2,000 lbs) 1 / 2,000

EF Emission Factor

- Note: Calculations are done for the year 2014. The EF for dispensing losses is dependent upon year and location. Assume worst case scenario storage tank breathing losses of 0.25 lb/1,000 gallons.

Attainment Area: Lower Gasoline Throughput Threshold:

VOC Emissions STF = TP STF x EF STF x CF

= 4,016,000 (gallons/year) x 0.30/1,000 (lb/gallon) x 1/2,000 (ton/lb) = 0.6024 tpy VOC

VOC Emissions STB = TP STB x EF STB x CF

= 4,016,000 (gallons/year) x 0.25/1,000 (lb/gallon) x 1/2,000 (ton/lb) = 0.502 tpy VOC

VOC Emissions DIS

- A = TP DIS

- A x EF DIS

- A x CF

= 4,016,000 (gallons/year) x 1.91/1,000 (lb/gallon) x 1/2,000 (ton/lb) = 3.8353 tpy VOC

Total VOC Emissions = 4.94 tpy

Nonattainment Area: Lower Gas oline Throughput Threshold:

VOC Emissions STF = TP STF x EF STF x CF

= 2,105,000 (gallons/year) x 0.30/1,000 (lb/gallon) x 1/2,000 (ton/lb) = 0.3158 tpy VOC

VOC Emissions STB = TP STB x EF STB x CF

= 2,105,000 (gallons/year) x 0.25/1,000 (lb/gallon) x 1/2, 000 (ton/lb) = 0.263 tpy VOC

VOC Emissions DIS

- NA = TP DIS

- A x EF DIS

- NA x CF

= 2,105,000 (gallons/year) x 1.33/1,000 (lb/gallon) x 1/2,000 (ton/lb) = 1.40 tpy VOC

Total VOC Emissions = 1.98 tpyPage 18 of 18



### Appendix B : Emissions Calculations for Upper Throughput Limitation for GDFs in Serious,
Severe and Extreme Nonattainment Areas for 2014

Key for Calculations:

Abbreviation Description VOC E mission F actor (lb s /1,000 gallons)
STF Storage Tank Filling Losses 0.30

STB Storage Tank Breathing Losses 0.25

DIS

- NA Dispensing Losses

– Nonattainment Area 1.33

TP Gasoline Throughput (gallons/year) NA

CF Conversion Factor (1 ton/2,000 lbs) 1 / 2,000

EF Emission Factor

- Note: Calculations are done for the year 2014. The EF for dispensing losses is dependent upon year and location. Assume worst case scenario storage tank breathing losses of 0.25 lb/1,000 gallons.

Nonattainment Area: Lower Gasoline Throughput Threshold:

V OC Emissions STF = TP STF x EF STF x CF

= 10,000,000 (gallons/year) x 0.30/1,000 (lb/gallon) x 1/2,000 (ton/lb)

= 1 .5 tpy VOC

VOC Emissions STB = TP STB x EF STB x CF

= 10,000,000 (gallons/year) x 0.25/1,000 (lb/gallon) x 1/2,000 (ton/lb)

= 1 .2 5 tpy VOC

VOC Emissions DIS

- NA = TP DIS

- A x EF DIS

- NA x CF

= 10,000,000 (gallons/year) x 1.33/1,000 (lb/gallon) x 1/2,000 (ton/lb)

= 6

. 65 tpy VOC

Total VOC Emissions = 9

. 4 tpy