p. 1 

# OAR Box 

# 1787 Prepped by Ollie Stewart



## Document

Number: 

# 16 ) II-B- 1 Docket Number: 

# A-90-3 7

Printed 11/4/200810:22:18 AM

Sheet 16 of 1471 .'ft . Pj? _ 

# A-^o- 3 7 ^•i- " - . ' TT-B-.- I UNITED STATE S ENVIRGfcMENTA L PROTECTIO

N AGENC

Y REGION V 

# D^TE : FE B 14199 2 SUBJECT : Ne wSourc e Review/Preventio n o f Significan t Deterioratio n Policie s FRCM : Davi d Kee , Directo r Ai r an d Radiatio n Divisio n Regio n V

(A-18J ) TO : Joh n Calcagni , Directo r Ai r Qualit yManagemen t Divisio n Offic e o f Ai r Qualit yPlannin g an d Standard s (MD-15 ) Joh n B . Rasnic , Directo r Stationar ySourc e Complianc e Divisio n Offic e o f Ai r Qualit yPlannin g an d Standard s (EN-341W ) Du e t o ou r recen t experienc e wit h USS/Kob e Stee l Compan yo f Lorain , Ohio , I strongl yreccmmend tha t th e policie s tha t th e Agenc ydepend s upo n t o implemen t th e Ne wSourc e Revie w(NSR)/Preventio n o f Significan t Deterioratio n (PSD ) progra mb e subjec t t o notic e an d commen t t o provid e a stronge r basi s fo r possibl e enforcemen t action . I n particular , specia l attentio n shoul d b e give n t o th e polic yo n limitin g th e potentia l t o emi t (June 13 , 1989 ) sinc e s o many source s tr yt o avoi d majo r sourc e revie wb ylimitin g thei r potentia l t o emit . I n general , I believ e tha t principle s fundamenta l t o th e NS R progra mshould , wheneve r possible , b e incorporate d int o regulation s an d no t lef t a s policies . I believ e tha t thi s actio n woul d greatl yimprov e th e effectivenes s an d integrit yo f th e NS R program . No wmigh t b e a goo d tim e t o conside r additiona l regulation s sinc e you r office s ar e currentl yworkin g o n revision s t o th e NSR/PS D regulation s i n orde r t o mee t ne wstatutoryrequirements .P. 3



# EPA' s Propose d Ai rPermi tRegulations : Th e Challeng e T o Achiev e A Workabl e Program

Comments Of

The 

# Clea n Ai rImplementatio n Project

Jul y 9,199 1P. 4 

## CLEA N AI RIMPLEMENTATION PROJEC T Th e Clea nAi r

Implementatio nProjec t i s a norganizatio no

f majo r industria l corporation s whic hhav e joine dtogethe r thi s yea r t o focu s o n aselecte dgrou p of issue s unde r

th e 199 0 Qea n Ai r Ac t Amendments . Th e issue s t o b e addresse db y th e Projec t cu t acros s industr y line s an d thu s wil l generall y affect

eac ho f th e member s i nasimila r fashion . I nparticular , heav y emphasi s wil l b e place do npermittin g an denforcemen t issues . Al l of th e Projec t

member s hav e facilitie s subjec t t o EPA' s Titl e V Operatin g Permi t Program . Th e Projec t

i s committe dt o workin g wit hEPA t o develo p regulation s t o implemen t th e Titl e V progra mtha t

full y compl y wit hth e requirement s o f th e 199 0 Amendments . Thes e regulation s wil l inevitabl y impos e substantia l burden s o nEPA , stat e agencie s an dindustr y alik e —bu t th e greates t impact s wil l b e impose do nAmerica nindustry . Liste dbelo w ar e th e member s o f th e Projec t

an drepresentative s fro meac hmembe r compan y wh o ar e playin g amajo r

rol e i nth e Project' s activities . Th e la w firmo f Morgan , Lewi s & Bockiu s serve s a s counse l t o th e Project , wit hJoh nQuarle s an dBill Lewi s leadin g thi s effort . MEMBER S AN D THEI RREPRESENTATIVE S Ai r Product s an dChemicals , Inc . Tod dSoloda r Allied-Signa l Inc . Pau l Arbesma n Jame s E . Coope r BAS FCorporatio n Dougla s Marti n Bethlehe mStee l Corporatio n Davi dE . Tomlinso n Thoma s W . Easterl y Conoco , Inc . Willia mMcClai n Digita l Equipmen t

Corporatio n Rober t Donnell y Poll y T . Strife Th e Do w Chemica l Compan y R . Dea nCoope r Joh nM . DeMeeste r E.I . d u Pon t

d e Nemour s & Co. , Inc . Steve nA . Coppol a To mKittelma n Eastma n Chemica l Compan y Vivia n M . Mclntir e Jo e Davi s Exxo nCompany , U.S.A . Bren t D . Patterso n Genera l Electri c Compan y Larr y Bogg s IB M Corporatio n Ear l M . Wunderl i Timoth y M . Man n Kaise r Aluminu m & Chemica l Corporatio n Jo e D . Flahert y Philli p H . Fourne t Merc k & Co. , Inc . Rober t W . Hyd e Bruc e Wallingto n Monsant o Compan y Bren t J . Gilhouse n Oli n Corporatio n Arthu r D . Rheingol d Dann y Henderso n Owens-Illinois , Inc . A . Wal t Lon g Rober t Towle s Pfize r In c Willia mHuh n Caro l A . Casazz a Th e Procte r & Gambl e Compan y Davi dE . Ros s Reynold s Metal s Compan y Jame s E . McKinno n Renat aM . Manz o Rhone-Poulen c Inc . Regin aA . Murra y Schering-Ploug hCorporatio n Fran k J . Chu t Su nRefinin g & Marketin g Compan y Thoma s S . Stamme l Willia mJ . Donohu e Texac o Inc . Thoma s K . Reill y Unio nCarbid e Chemical s an dPlastic s Compan y Inc . Caro l L . Dudnic k Josep hC . Hoviou s Unite dTechnologie s Corporatio n Joh nSzwas t Mar k Citron iP. 5



### BEFOR ETH E UNITE D STATE S ENVIRONMENTA LPROTECTIO NAGENC Y

COMMENT S O FTH E CLEA N AI RIMPLEMENTATION PROJEC T

O N 

## EPA' s Propose d Rul e Fo rTh e Establishmen tO f Th e Titl e V Operatin g Permi tProgra m Unde rTh e Clea n Ai rAc tAmendment s O f 199 0 Operatin g Permi t

Progra m (4 0 C.F.R . Par t

70) 5 6 Fed . Reg . 21,712-78 1 Ma y 10,199 1

Jul y 9,199 1 Docke t No . A-90-3 3

Counsel : Joh n Quarle s Willia mH . Lewis , Jr . Morgan , Lewi s & Bockiu s 180 0 M Street , N.W . Washington , D.C . 2003 6 (202) 467-714 5P. 6



## EP A ROUNDTABL

E PROCESS Th e member s of

th e Clea n Ai r

Implementatio nProjec t wis ht o commen dEP A fo r it s organizatio n o f

th e Permit s Roundtabl e t o provid e inpu t fo r th e staff' s consideratio n i n preparin g an drevisin g draft s o f th e permi t

regulations . Th e Roundtabl e proces s wa s a highl y constructiv e undertakin g whic hw e hop e EP A wil l us e ofte ni ndevelopin g othe r clea nai r regulations . A s aresul t o f EPA' s interes t

i nhearin g idea s fro mal l affecte dpartie s o nho w bes t

t o devis e aworkabl e se t o f permi t regulations , w e believ e tha t th e regulation s tha t th e Agenc y ha s propose dprovid e agoo dfoundatio nfo r th e ne w stat e operatin g permi t programs , althoug himportan t change s stil l ar e necessar y t o improv e th e program' s workability .



## TH E COMMO

N GOA L "Industry , environmentalists , regulator y agencies , an dth e genera l publi c al l shar e th e sam e goa l fo r th e ai r permi t program . Everyon e ha s astak e i nassurin g it s success . Motivation s ma y diffe r a s t o wh y tha t

goa l i s important . Som e ma y b e concerne dsolel y t o achiev e th e contributio nth e permi t progra mca nmak e t o improv e ai r

quality . Other s ma y b e mor e influence db y aconcer ntha t bottleneck s i npermi t

issuanc e wil l disrup t

ou r nationa l economy . Whateve r th e motivation , however , th e botto mlin e i s th e same . I f th e permi t

progra mrun s smoothly , everyon e wins . I

f th e line s bac k

u p an dth e permit s don' t ge t issued , everyon e loses . Th e universa l goa l i s t o mak e i t succeed. " Excerpt from Comments, p.17P. 7



# Table Of Contents Pag e Executive Summary 1 Recommendations 7 I- Introduction 1 3 A . Th e Nee d T o Obtai n Permits , o rPermi tRevisions , Wil l Creat e Ne w Hurdle s Restrictin g Economi cGrowt h ari d Flexibilit y 1 3 B . Th e Permi tRequirements , Howeve rStreamlined , Wil l Impos e Massiv e Paperwor kBurden s o n Industr y an d Regulator y Agencie s Alik e 1 4 C Th e Federa l Ai rPermi tProgra m Present s A Differen tCas e fro m Th e NPDE S Wate rPermi tProgra m 1 5 D . EPA Mus tSimplify Th e Ai rPermi tRequirement s T o Increas e Prospect s Tha tTh e Progra m Wil l B e A Succes s 1 7 E . EP A Shoul d Authoriz e Continuatio n o f Existin g Stat e Permi tPrograms , Excep t Wher e Element s o f

Th e Titl e V Progra m Ar e Essentia l 1 8 II- Specific Comments 2 1 A . Th e Titl e V Permi tRegulation s Mus tB e Structure d T o Assur e Plants ' Operationa l Flexibilit y 2 1 1 . EP A Miigt* RpquJi^State s T o Writ e PermitsTha t Anticipat e Necessar y .^-— N Change s an dT o Recogniz e Tha t Unprohibite dChange s Ar e Authorize d(23 J 2 . Th e Propose dRegulation s Mus t Requir e Tha t

State s Carr y OutTh e Flexibl e -/""" X Sourc e Operatio n Provision s o f Sectio n 502(b)(10 ) o n A Facility-Wid e Basi s ( 2 5 ] 3 . Th e "Mino r

Permi t Amendment " Authorizatio n I s A n Essentia l Elemen t o f Th e Pro

pose dRegulation s 2 7 a . Providin g A nExpedite dProces s T o Mak e Mino r Change s Full y Comport s Wit hTh e Requirement s o f Titl e V an dRelevan t

Legislativ e Histor y 2 7 b . Th e "Fas t

Track " Permi t

Revisio n Authorit y Provide dFor unde r Th e Mino r Permi t Amendmen t

Provisio n I s Critica l Fo r

Industr y T o B e Abl e T o Respon dt o Market

plac e Demand s 2 8 c . I t I s o f Utmos t Importanc e Fo r

EPA No t T o Restric t

Th e Mino r

Permi t Amendmen t

Authorit y Mor e Tha n I t

Alread y Ha s unde r

Th e Propose d Regulation s 3 0P. 8



# Table Of Contents (Cont'd) 4 . Th e Procedure s Fo r Immediatel y Accomplishin g Administrativ e Permi t Amendment s Shoul dB e Clarifie d3 1 5 . Significan t

Part s o f Th e Provision s Tha t

Relat e t o "Permi t

Modifications " Shoul dB e Change do r

Clarifie d3 1 a . EPA Shoul dClarif

y Wha t Constitute s A "Modificatio n unde r Titl e I " 3 2 b . Th e 18-Mont

hRevie w Perio dfor

Permi t Modification s Shoul dB e Reduce dSignificantl y 3 2 c . Change s i nReportin g Requirement s an dComplianc e Milestone s Shoul dB e Treate da s Mino r Permi t Amendment s 3 5 d . Th e Definitio n o

f Stationar y Sourc e i n Th e Propose dRegulation s Shoul dB e Th e Sam e a s i nTh e Titl e I Regulation s 3 5 6 . A Progra mSubmissio n Elemen t Shoul dB e Adde dRequirin g State s T o Describ e Full y Ho w The y Inten dT o Provid e fo r OperationaTFlexibilit y a s Require db y Th e Ac t an dPar t 7 0 3 6 7 . Aspect s o f

Th e Recordkeepin g Requirement s Shoul dB e Clarifie dT o Obviat e Unintende dPotentia l Consequence s 3 6 B . EP A Shoul d Provid e fo rRenewa l Application s T o B e Submitte d Si x Month s Prio rt o Permi tExpiration s 3 6 C . Th e Permi tRegidation s Shoul d Authoriz e Permittin g Agencie s T o Issu e Permit s Tha t Includ e Requirement s Whic h Ar e Differen tfrom , bu tEquivalen ti n Stringenc y to , SI P Requirement s 3 7 D . Th e Permi tShiel d Protectio n i n Th e Propose d Regulation s Shoul d B e Broadene d / . i n A Numbe ro f

Respect s 3 9 1 . Permi t

Shiel dProtectio n Shoul dB e Afforde dunde r Al l Circumstance s afte r Th e Issuanc e o f

A Titl e V Permi t

3 9 2 . EPA' s Proposa l Shoul dB e Revise dT o Authoriz e Permi t Shiel dProtectio n afte r Th e Permi t Ter mHa s Expire d4 0 E . Th e Regulator y Definition s Tha tProvid e Th e Basi s Fo rDeterminin g Whic h Plant s Ar e Covere d b y Th e Permittin g Requirement s Ar e To o Expansiv e 4 0P. 9



# Table Of Contents (Cont'd) 1 . EPA Shoul dProvid e Fo r Onl y Rggulated-Ein^sion s Unit s T o B e Considere dL n Determinin g Whethe r

A Plan t Meet s Th e "Majo r

Source " Emission s Threshold s 40 2 . EPA Shoul dIncorporat e A MechanismTha t Wil l Assur e Tha t

Plant s Ca nBas e Th e Major Sourc e Determinatio n upo nActua l Emission s Rathe r Tha nThei r

"Potentia l T o Emit " 4 1 F . EPA Shoul dSpecif

y Th e Part s of

Th e Titl e V Permi t

Progra mTha t

Ar e Derive d fro mTh e NPDE S Progra man dMak e Clea r i nTh e Fina l Preambl e Tha t Interpretation s of

Th e Titl e V Progra mAr e Onl y T o B e Base dUpo nTh e NPDE S Progra mWher e Specificall y Indicate d4 2 G . Th e Propose dProvision s Aime dA t Givin g Plant s Actin g I nGoo dFait hAssurance s Tha t The y Wil l Receiv e Th e Protection s Gaine dB y Submittin g A Complet e Application , a s wel l a s Thos e Establishin g Th e "Applicatio nShield, " Ar e Essentia l t o Th e Succes s of

Th e Titl e V Progra m.* . 4 3 H . EPA' s Proposa l Tha t Stat e Requirement s Mor e Stringen t Tha nThos e Require dunde r Th e Ac t Wil l No t B e Federall y Enforceabl e Represent s A Goo dBalancin g o f Federa l an dStat e Interest s 4 4 I . State s Shoul dB e Directe dT o Bas e Thei r Permi t Fee s o nActua l Emission s a s Proposed , bu t Th e Preambl e Goe s Far Beyon dWha t

I s Authorize dunde r

Titl e V I nDelineatin g Th e Prope r

Use s of Permi t Fee s 4 5 J . Th e Propose dRegulation s Shoul dB e Change dT o Mak e I t Clea r Tha t Privat e Contractor s Canno t

B e Use da s Inspector s unde r Th e Ac t 4 6 K . EPA Shoul dClarif

y Th e Complianc e Pla nRequirement s an dShoul dNo t Includ e A Provisio n Requirin g Operation s an dMaintenanc e Plan s fo r Source s Currentl y Meetin g Th e Act' s Requirement s 4 7 L . Th e Preambl e an dPropose dRegulation s Shoul dB e Revise dT o Provid e Tha t Onl y Tes t

Method s an dMonitorin g Alread y Require dAr e T o B e Incorporate di n Titl e V Permit s an dT o Reduc e Substantiall y Th e Informatio nPlant s Ar e Require d T o Repor t

4 8 M . EPA Shoul dSpecificall y Authoriz e States ' Inclusio nof Exemption s fo r

Upset , Start-u p an dShut-dow n Condition s 4 9 N . Th e Fina l Regidation s Shoul dGiv e State s Th e Discretio nT o Exemp t Modification s Havin g Insignifican t

Ai r Qualit y Implication s fro mTh e Titl e V Requirement s 5 0P.1 0



# Table Of Contents (Cont'd) Appendi x A Nee dfo r Operationa l Flexibility Throug hTh e Writin g of Flexibl e Permit s 5 3 Appendi x B Demonstratio n of Th e Critica l Nee dfo r

Th e "Mino r

Permi t Amendment " Authorizatio n i n Th e Propose dRegulation s 5 4 Appendi x C Demonstratio n Tha t EPA' s Propose dAuthorizatio nof A n18-MonthPerio d Fo r Processin g Permi t

Modification s I s Muc hTo o Lon g 5 7

vi