Abbreviations and Acronyms

Administrator Administrator of the U.S. EPA

AR Acid Rain

ARP Acid Rain Program

CAA Clean Air Act [42 U.S.C. Section 7401 et seq.]

CAM Compliance Assurance Monitoring

CEMS Continuous Emission Monitoring System

CFR Code of Federal Regulations

COFA Close

- Coupled Overfire Air

COMS Continuous Opacity Monitoring System

DC Dust Collector

EIP Economic Incentives Program

ESP Electro Static Precipitator

FGD Flue Gas Desulfurization gal gallon

HAP Hazardous Air Pollutant

hr hour

Id. No. Identification Number kg kilogram

lb pound

MACT Maximum Achievable Control Technology

MVAC Motor Vehicle Air Conditioner Mg megagram MMBtu million British Thermal Units

MW Megawatts

mo month

NESHAP National Emission Standards for Hazardous Air Pollutants

NNEPA Navajo Nation Environmental Protection Agency

NNOPR Navajo Nation Operating Permit Regulations

NO X Nitrogen Oxi des

NSPS New Source Performance Standards

NSR New Source Review

PM Particulate Matter

PM

- 10 Particulate matter less than 10 microns in diameter

ppm parts per million

PSD Prevention of Significant Deterioration

PTE Potential to Emit psia pounds per square inch absolute

RMP Risk Management Plan

SNAP Significant New Alternatives Program

SO 2 Sulfur Dioxide

TSP Total Suspended Particulate

US EPA United States Environmental Protection Agency

VCA Voluntary Compliance Agreement

VOC Volatile Organic Compounds2

TABLE OF CONTENTS

Cover Page Abbreviations and Acronyms

I. Source Identification

II. Requirements for Specific Units

A . Acid Rain Requirements

B . Visibility Federal Implementation Plan Requirements

C . NSPS General Provisions

D . NSPS Requirem ents

E . Monitoring and Testing Requirements

F . Operational Flexibility

III. Facility

- Wide or Generic Permit Conditions

A. Testing Requirements

B. Recordkeeping Requirements

C. Reporting Requirements

D. Protection of Stratospheric Ozone

E. Asbestos from D emolition and Renovation

F. Compliance Schedule

IV. Title V Administrative Requirements

A. Fee Payment

B. Blanket Compliance Statement

C. Compliance Certifications

D. Duty to Provide and Supplement Information

E. Submissions

F. Severability Clause

G. Perm it Actions

H. Administrative Permit Amendments

I. Minor Permit Modifications

J. Group Processing of Minor Permit Amendments

K. Significant Modifications

L. Reopening for Cause

M. Property Rights

N. Inspection and Entry

O. Emergency Provisions

P. Transfer of Ownership or Operation Q. Off Permit Changes

R. Permit Expiration and Renewal

S. Additional Permit Conditions

T. Part 71 Permit Enforcement

Attachment A

Phase II Acid Rain Permit Renewal3

I. Source Identification

Managing Participant Name : Salt River Project Agricultural Improvement

and Power District (SRP)*

Managing Participant Mailing Address: P.O. Box 52025, PAB 352 Phoenix, Arizona 85072

- 2025

*Note: This facility is co

- owned by 6 entities. SRP is listed as the managing par ticipant in this permit since they act as the facility operator, and have accepted the responsibility to obtain environmental permits for Navajo Generating Station, including an Acid Rain permit and Part 71 Permit. In addition to SRP, the other 5 co

- owners of this facility are:

1. Los Angeles Department of Water and Power (LADWP)

2. Arizona Public Service Company (APS)

3. Tucson Electric Power (TEP)

4. Nevada Power Company (NPC)

5. U.S. Bureau of Reclamation (USBR)

Plant Name: Navajo Generating Station

Plant Location: 5 miles east of Page, AZ off U.S. High way 98 Page, Arizona County: Coconino, Arizona EPA Region: 9

Reservation: Navajo Nation

Tribe: Navajo Company Contact: Paul Ostapuk Phone: (928) 645

- 657 7 Responsible Official: Ro bert K. Talbot Phone: (928) 645

- 6217

EPA Contact: Roger Kohn Phone: (415) 972

- 3973

Tribal Contacts: Eugenia Quintana Phone: (928) 871

- 7800

Charlene Nelson Phone: (928) 729

- 4247

SIC Code: 4911

AFS Plant Identification Number : 04

- 005

- N0423 Description of Process: The facility is 2,250 Net Megawatts coal fired power plant.

Significant Emission Units:

Unit ID/

Stack ID Unit Description Maximum Capacity Commenced

Construction

Date Control

Method

U1/

Stack S1 One (1) pulveriz ed coal

- fired boiler,

using No. 2 fuel oil for ignition fuel. Stack S1 is equipped with SO 2 and NO X CEMS, and a

COMS. 7,725 MBtu/hr;

750 Net MW 1970 COFA; FGD system

SCBR1 (1999); ESP1

U2/

Stack S2 One (1) pulverized coal

- fired boiler,

using N o. 2 fuel oil for ignition fuel . Stack S2 is equipped with SO 2 and NO X CEMS, and a

COMS. 7,725 MBtu/hr;

750 Net MW 1970 COFA; FGD system

SCBR2 (1998); ESP24

Unit ID/

Stack ID Unit Description Maximum Capacity Commenced

Construction

Date Control

Method

U3/

Stack S3 One (1) pulverized coal

- fired boiler,

using N o. 2 fuel oil for ignition fuel . Stack S3 is equi pped with SO 2 and NO X CEMS, and a

COMS. 7,725 MBtu/hr;

750 Net MW 1970 COFA; FGD system

SCBR3 (1997); ESP3

AUX A One (1) auxiliary boiler;

using No. 2 fuel oil as fuel 308 MMBtu/hr 1970 N/A

AUX B One (1) auxiliary boiler;

using No. 2 fuel oil as fuel 308 MMBtu/hr 1970 N/A

Coal Handling Operations

CT1 One (1) railcar unloading operation 10,000 tons/hr 1970 N/A

L1

- L12 Twelve (12) hopper feeders 2,400 tons/hr (total) 1970 N/A

BC

- 1 through BC

4 Four (4) conveyors to the yard surge bin 1,800 tons/hr ( each) 1970 DC

- 8

BC

- 4A One (1) conveyor to the batch weight system 100 tons/hr 1970 DC

- 8

BFD

- 5A,

BC

- 5 Two (2) reclaim conveyors 1,800 tons/hr (each) 1970 DC

- 8

BC

- 6 One (1) conveyor to the yard surge bin 1,500 tons/hr 1970 DC

- 8

BC

- 6A through BC

6C Three (3) conveyors to the stacker/reclaimer 1,800 tons/hr (each) 1970 N/A

BC

- 7 One (1) conveyor to the emergency reclaim

hopper 1,500 tons/hr 1970 N/A

YSB

- 1 One (1) yard surge bin 1,800 tons/hr 1970 DC

- 8

BC

- 8A BC

8B Two (2) conveyors to plant surge bin 1,50 0 tons/hr (each) 1970 DC

- 8

PSB

- 1 One (1) plant surge bin 3,000 tons/hr 1970 DC

- 5

BC

- 9A BC

9B Two (2) conveyors to the coal silos for boilers

U1 and U2 1,500 tons/hr (each) 1970 DC

- 5

BC

- 10A

BC

- 10B Two (2) conveyors to the coal silos for boiler

U3 1,500 tons/hr (each) 1970 DC

- 5

CC

- 1A through CC

9A; CC

- 1B through CC

9B Three (3) enclosed cascading conveying systems

to the coal storage silos for boilers U1, U2, and

U3 1,500 tons/hr (each) 1970 DC

- 1 through

DC

- 4, DC

- 6,

and DC

- 7

Silos 1A through 1G Seven (7 ) storage silos for boiler U1 3,000 tons/hr (each) 1970 DC

- 1, DC

- 2, and baghouse

PR

- 1.

Silos 2A through 2G Seven (7) storage silos for boiler U2 3,000 tons/hr (each) 1970 DC

- 3, DC

- 4, and baghouse

PR

- 2.

Silos 3A through 3G Seven (7) storage silos for boil er U3 3,000 tons/hr (each) 1970 DC

- 6, DC

- 7, and baghouse

PR

- 3.

CS Outdoor coal storage piles 3,300 tons/hr (total) 1970 water suppression Limestone handling system associated with the FGD systems Unloading Bay A and B Two (2) truck unloading operations 38 tons/hr (each) 1997 N/A

O

- LSH

HOP

- A One (1) limestone unloading hopper 300 tons/hr 1997 DC

- 9

O

- LSH

HOP

- B One (1) limestone unloading hopper 300 tons/hr 1997 DC

- 105

Unit ID/

Stack ID Unit Description Maximum Capacity Commenced

Construction

Date Control

Method

O

- LSH

FDR

- A One ( 1 ) conveyor 300 tons/hr 1997 DC

- 9

O

- LSH

FDR

- B One ( 1 ) conveyor 3 00 tons/hr 1997 DC

- 10

O

- LSH

CNV

- A One ( 1 ) conveyor 300 tons/hr 1997 DC

- 9

O

- LSH

CNV

- B One ( 1 ) conveyor 300 tons/hr 1997 DC

- 10

O

- LSH

SILO

- A and

B Two (2) limestone storage silos 300 tons/hr (each) 1997 DC

- 11

O

- LSP

FDR

- A and

B Two (2) enclosed feeders to the slurry

preparation system 36 tons/hr (each) 1997 N/A

O

- LSP

CNV

- A and

B Two (2) enclosed cleanout conveyors 5 tons/hr (each) 1997 N/A

O

- LSP

MILL

- A and

B Two (2) ball mills 36 tons/hr (each) 1997 N/A

LS Limestone storage piles 600 tons/hr (total) 199 7 water suppression Fly ash handling system

Silo 1 One (1) fly ash bin for boilers U1 and U2 46 tons/hr 1970 DC

- TD and

DC

- S1/2

Silo 2 One (1) fly ash bin for boiler U3 46 tons/hr 1970 DC

- S3

Silo 1 and 2 Loading Two (2) partially enclosed fly ash truck loading

operations 3 8 tons/hr (each) 1970 N/A

DWB

- A through

DWB

- F Six ( 6 ) bottom ash truck loading operations.

The bottom ash is processed in a wet form 46 tons/hr (each) 1970 N/A

Soda ash/lime handling systems

SAB

- 1A,

SAB

- 2A,

SAB

- 1B,

SAB

- 2B Four (4) s oda ash storage bins 0.4 tons/hr (each) 1970 dust collector

BH

- 6

LB

- 1 and

LB

- 2 Two (2) lime storage bins 0.57 tons/hr (each) 1970 dust collector

BH

- 7 Miscellaneous Operations

Six (6) cooling towers 813,000 gal/min (total) 1970 N/A

TR Fugitive emission s from unpaved roads N/A 1970 water suppression6

II. Requirements for Specific Units

II. A

. Acid Rain Requirements [40 CFR Parts 72, 73, and 75; Phase II Acid Rain Permit]

The permittee shall comply with the requirements listed in the attached acid rain permit

renewal (see Attachment A).

II. B . Visibility Federal Implementation Plan Requirements [40 CFR § 52.145(d)]

1. Definitions. The following definitions apply to section II. B of this permit [40 CFR § 52.145(d)(1)]:

a. “Administrator” means the Administrator of EPA or his/her designee.

b. “Affected Unit(s)” means the steam

- generating unit(s) at the Navajo Generating Station, all of which are subject to the emission limitation in

section II.B( 2 ) of this permit, that has accumulated at least 365 boiler operating days since the passage of the date defined in section II.B( 6 ) of this permit.

c. “Boiler Operating Day” for each of the boiler units at the Navajo Generating Station is defined as a 24

- hour calendar day (the period of time

between 12:01 a.m. and 12:00 midnight in Page, Arizona) during which

coal is combusted in that unit for the entire 24 hours.

d. “Owner or Operator” means the owner, participant in, or operator of the Navajo Generating Station to which this paragraph is applicable.

e. “Unit

- Week of Maintenance” means a period of 7 days during which a

fossil fuel

- fired steam

- generating unit is under repair, and no coal is

combusted in the unit.

2. Emission limitation. No owner or operator shall discharge or cause the discharge

of sul fur oxides into the atmosphere in excess of 42 ng/J [0.10 pound per million British thermal units (lb/MMBtu)] heat input [40 CFR § 52.145(d)(2)]

.

3. Compliance determination. Compliance with the emission limit in Condition II.B( 2 ) of this permit shall be determined daily on a plant

- wide rolling annual basis as follows [40 CFR § 52.145(d)(3)]:

a. For each boiler operating day at each steam generating unit subject to the

emission limitation in Condition II.B( 2 ) of this permit, the owner or operator shall record the unit’s hourly SO 2 emissions using the data from the continuous emission monitoring systems, required in Condition II.B( 4 ) of this permit and the daily electric energy generated by the unit (in

megawatt

- hours) as measured by the megawatt

- hour met er for the unit.

b. Compute the average daily SO 2 emission rate in ng/J (lb/MMBtu) following the procedures set out in Method 19, Appendix A, 40 CFR Part 60 in effect on October 3, 1991.7 c. For each boiler operating day for each affected unit, calculat e the product of the daily SO 2 emission rate (computed according to Condition II.B(3)( b ) of this permit) and the daily electric energy generated (recorded according to Condition II.B(3)( a ) of this permit) for each unit.

d. For each affected unit, identif y the previous 365 boiler operating days to be used in the compliance determination. Except as provided in Condition II.B( 7 ) of this permit, all of the immediately preceding 365 boiler operating days will be used for compliance determinations.

e. Sum, fo r all affected units, the products of the daily SO 2 emission rate

electric energy generated (as calculated according to Condition II.B(3)( c ) of this permit) for the boiler operating days identified in Condition II.B(3)(d) of this permit.

f. Sum, for all affected units, the daily electric energy generated (recorded according to Condition II.B(3)(a) of this permit) for the boiler operating days identified in Condition II.B(3)(d) of this permit.

g. Calculate the weighted plant

- wide annual average SO 2 emis sion rate by dividing the sum of the products determined according to Condition II.B(3)(e) of this permit by the sum of the electric energy generated determined according to Condition II.B(3)( f ) of this permit.

h. The weighted plant

- wide annual average S O 2 emission rate shall be used to determine compliance with the emission limitation in Condition II.B( 2 ) of this permit.

4. Continuous emission monitoring. The owner or operator shall install, maintain, and operate continuous emission monitoring systems to determine compliance

with the emission limitation in Condition II.B( 2 ) of this permit as calculated in

Condition II.B( 3 ) of this permit. This equipment shall meet the specifications in Appendix B of 40 CFR 60 in effect on October 3, 1991. The owner or o perator shall comply with the quality assurance procedures for continuous emission monitoring systems found in Appendix F of 40 CFR 60 in effect on October 3, 1991 [40 CFR § 52.145(d)(4)]

.

5. Reporting requirements. For each steam generating unit subject to the emission

limitation in Condition II.B(2) of this permit, the owner or operator [40 CFR § 52.145(d)(5)]:

a. Shall furnish the Administrator written notification, on a quarterly basis,

on emissions of SO 2 , and either oxygen or carbon dioxide, accor ding to the procedures found in 40 CFR § 60.7 in effect on October 3, 1991.

b. Shall furnish the Administrator written notification of the daily electric energy generated in megawatt

- hours.8 c. Shall maintain records according to the procedures in 40 CF R § 60.7 in effect on October 3, 1991.

d. Shall notify the Administrator by telephone, or in writing, or electronic mail sent to r9.aeo@epa.gov, within one business day of any outage of the control system needed for compliance with the emission limitatio n in

Condition II.B( 2 ) of this permit and shall submit a follow

- up written report within 30 days of the repairs stating how the repairs were accomplished and justifying the amount of time taken for the repairs.

6. Compliance dates. The requirements of Se ction II.B of this permit shall be applicable to all units at this facility beginning on August 19, 1999 [40 CFR § 52.145(d)(6)]

.

7. Exclusion for catastrophic failure. In addition to the exclusion of periods allowed

in Condition II.B( 7 ) of this permit, any periods of emissions from an affected unit for which the Administrator finds that the control equipment or system for such unit is out of service because of catastrophic failure of the control system which occurred for reasons beyond the control of the owner or operators and could not have been prevented by good engineering practices will be excluded from the compliance determination. Events which are the consequence of lack of appropriate maintenance or of intentional or negligent conduct or omissions of the owner or operators or the control system design, construction, or operating contractors do not constitute catastrophic failu re [40 CFR § 52.145(d)(10)]

.

8. Equipment operation. The owner or operator shall optimally operate all equipment or systems needed to comply with the requirements of this paragraph consistent with good engineering practices to keep emissions at or below the

emission limitation in Condition II.B( 2 ) of this permit, and following outages of any control equipment or system the con trol equipment or system will be returned to full operation as expeditiously as practicable [40 CFR § 52.145(d)(11)]

.

9. Maintenance scheduling. On March 16 of each year starting in 1993, the owner or operator shall prepare and submit to the Administrato r a long

- term maintenance plan for the Navajo Generating Station which accommodates the maintenance requirements for the other generating facilities on the Navajo Generating Station grid covering the period from March 16 to March 15 of the next year and sh owing

at least 6 unit

- weeks of maintenance for the Navajo Generating Station during the November 1 to March 15 period, except as provided in Condition II.B(10) of this permit. This plan shall be developed consistent with the criteria established by the

Wes tern Electric Coordinating Council of the North American Electric Reliability Council to ensure an adequate reserve margin of electric generating capacity. At the time that a plan is transmitted to the Administrator, the owner or operator shall notify the Administrator in writing if less than the full scheduled unit

- weeks of maintenance were conducted for the period covered by the previous plan and shall furnish a written report stating how that year qualified for one of the exceptions

identified in Conditi on II.B(10) of this permit [40 CFR § 52.145(d)(12)]

.

10. Exceptions for maintenance scheduling. The owner or operator shall conduct a

full 6 unit

- weeks of maintenance in accordance with the plan required in9 Condition II.B(9) of this permit unless the own er or operator can demonstrate to

the satisfaction of the Administrator that a full 6 unit

- weeks of maintenance during the November 1 to March 15 period should not be required because of the following [40 CFR § 52.145(d)(13)]:

a. There is no need for 6 u nit

- weeks of scheduled periodic maintenance in the year covered by the plan;

b. The reserve margin on any electrical system served by the Navajo Generating Station would fall to an inadequate level, as defined by the

criteria referred to in Condition II. B(9) of this permit.

c. The cost of compliance with this requirement would be excessive. The cost of compliance would be excessive when the economic savings to the owner or operator of moving maintenance out of the November 1 to March 15 period exceeds $ 50,000 per unit

- day of maintenance moved.

d. A major forced outage at a unit occurs outside of the November 1 to March 15 period, and necessary periodic maintenance occurs during the period of forced outage.

11. If the Administrator determines that a full 6 unit

- weeks of maintenance during the November 1 to March 15 period should not be required, the owner or operator

shall nevertheless conduct that amount of scheduled maintenance that is not precluded by the Administrator. Generally, the owner or operator shall make best efforts to conduct as much scheduled maintenance as practicable during the November 1 to March 15 period. [40 CFR § 52.145(d)(13)]

II.C . NSPS General Provisions

The following requirements apply to the operation, maintenance, and testing the affected

facilities in the limestone handling system in accordance with 40 CFR Part 60, Subparts A and OOO (“Standards of Performance for Non

- Metallic Mineral Processing Plants”):

1. All requests, reports, applications, submittals, and other communic ations to the

NNEPA pursuant to 40 CFR Part 60 shall be submitted in duplicate to the EPA Region 9 office at the following address [40 CFR § 60.4(a)]:

Director, Air Division (Attn: AIR

- 1) EPA Region IX

75 Hawthorne Street San Francisco, CA 94105

2. An y owner or operator subject to the provisions of this part shall maintain records of the occurrence and duration of any startup, shutdown, or malfunction in the operation of an affected facility; any malfunction of the air pollution control equipment; or a ny periods during which a continuous monitoring system or

m onitoring device is inoperative [40 CFR § 60.7(b)]

.10

3. The availability to the public of information provided to, or otherwise obtained by, the EPA Administrator under this permit shall be govern ed by 40 CFR § 2 (Information submitted voluntarily to the Administrator for the purposes of compliance with 40 CFR §§ 60.5 and 60.6 is governed by 40 CFR §§ 2.201 through § 2.213 and not by 40 CFR § 2.301.) [40 CFR § 60.9]

.

4. Compliance with the partic ulate matter sta ndard listed in Conditions II.D(1)(a) and II.D(5) of this permit shall be determined in accordance with performance tests established by 40 CFR § 60.8, unless otherwise specified [40 CFR § 60.11(a)]

.

5. Compliance with the opacity standar d s listed in Conditions II.D( 1 )(b), II.D( 2 ), II.D( 3 ), II.D(5), and II.D(6) of this permit shall be determined by conducting observations in accordance with Reference Method 9 in Appendix A of 40 CFR § 60, any alternative method that is approved by the Admi nistrator, or as provided in paragraph 40 CFR § 60.11(e)(5) [40 CFR § 60.11(b)]

.

6. The opac ity standards in Conditions II.D( 1 )(b), II.D(2), II.D( 3 ), and II.D(4) shall apply at all times except during periods of startup, shutdown, malfunction, and as

oth erwise provided in 40 CFR Part 60, Subpart OOO [40 CFR § 60.11(c)]

.

7. At all times, including periods of startup, shutdown, and malfunction, the permittee shall, to the extent practicable, maintain and operate the affected

facilities including associate d air pollution control equipment in a manner consistent with good air pollution control practice for minimizing emissions. Determination of whether acceptable operating and maintenance procedures are being used will be based on information available to th e Administrator which may include, but is not limited to, monitoring results, opacity observations, review of operating and maintenance procedure s, and inspection of the source [40 CFR § 60.11(d)]

.

8. For the purpose of submitting compliance certificatio ns or establishing whether or not a person has violated or is in violation of any standard in 40 CFR § 60, nothing in 40 CFR § 60 shall preclude the use, including the exclusive use, of any credible evidence or information, relevant to whether a source wou ld have been in compliance with applicable requirements if the appropriate performance or compliance test or procedure had been performed [40 CFR § 60.11(g)]

.

9. No owner or operator subject to the provisions of 40 CFR § 60 shall build, erect, install, o r use any article, machine, equipment or process, the use of which

conceals an emission which would otherwise constitute a violation of an applicable standard. Such concealment includes, but is not limited to, the use of gaseous diluents to achieve complia nce with an opacity standard or with a standard which is based on the concentration of a pollutant in the gas es discharged to the atmosphere [40 CFR § 60.12]

.

10. With respect to compliance with all New Source Performance Standards (NSPS)

of 40 CFR § 60, the permittee shall comply with the “General notification and reporting requirements” found in 40 CFR § 60.19 [40 CFR § 60.19]

.11

11. The permittee shall provide written notification to NNEPA and US EPA or, if acceptable to NNEPA, US EPA and the permittee , electronic notification of any reconstruction of an affected facility, or any physical or operational change to an affected facility which may increase the emission rate of any air pollutant to which a standard applies , unless that change is specifically exempted under this permit or in 40 CFR § 60. 14(e) , in accordance with 40 CFR § 60.7 [40 CFR § 60.7(a)]

.

II.D . NSPS, Subpart OOO Requirements

The following requirements apply to the affected facilities in the limestone handling system in accordance with 40 CFR Part 60, Subpart OOO (“Standards of Performance for

Non

- Metallic Mineral Processing Plants”):

1. The permittee shall not cause to be discharged into the atmosphere from any transfer point on belt conveyors or from any other affected facility any stack emissions which [40 CFR § 60.672(a)]:

a. Contain particulate matter in excess of 0.05 g/dscm (0.022 gr/ dscf), and

b. Exhibit greater than 7 percent opacity.

2. The permittee shall not cause to be discharged into the atmosphere from any

transfer point on belt conveyors or from any other affected facility any fugitive

emissions which exhibit greater than 10 percent opacity [40 CFR § 60.672(b)]

.

3. The permittee shall not cause to be discharged into the atmosphere from any crusher, at which a cap ture system is not used, fugitive emissions which exhibit greater than 15 percent opacity [40 CFR § 60.672( c )]

.

4. Truck dumping of nonmetallic minerals into any screening operation, feed hopper or crusher is exempt from the requirements of this section [40 CFR § 60.672(d )]

.

5

. If any transfer point on a conveyor belt or any other affected facility is enclosed in a building, then each enclosed affected facility must comply with the emission limits in Conditions II.D.1, II.D.2, and II.D.3, or the buildin g enclosing the affected facility or facilities must comply with the following emission limits:

(i) The permittee shall not cause to be discharged into the atmosphere from any building enclosing any transfer point on a conveyor belt or any other

affected facility any visible fugitive emissions except emissions from a

vent as defined in 40 CFR § 60.671 [40 CFR § 60.672(e)(1)]

.

(ii) The permittee shall not cause to be discharged into the atmosphere from any vent of any building enclosing any transfer poi nt on a conveyor belt or any other affected facility emissions which exceed the stack emissions

limits in Condition II.D( 1 ) [40 CFR § 60.672(e)(2)]

.

6. The permittee shall not cause to be discharged into the atmosphere from any baghouse that controls emi ssions from only an individual, enclosed storage bin,12 stack emissions which exhibit greater than 7 percent opacity [40 CFR § 60.672(f )]

.

II. E . Monitoring and Testing Requirements

Pursuant to t he First Reopening to Navajo Generating Sta tion's first Part 7 1 Permit, issued on November 13, 2003 , the permittee shall comply with the following:

1. Once per five year permit term, and at such other times as specified by NNEPA, the permittee shall conduct performance tests for particulate matter emissions

from th e exhaust stacks of baghouses DC

- 9, DC

- 10, and DC

- 11 using EPA Method 5 or Method 17, and furnish US EPA and NNEPA a written report of the results of such test. The tests shall be conducted at the maximum operating capacity of the facility being tested. Up on written request (Attn: AIR

- 5) from the permittee, NNEPA m ay approve the conducting of performance tests at a lower specified production rate. In addition to testing once per five year permit term, if during any 12 consecutive month period visible emissi ons are observed three times from any one baghouse, the permittee shall conduct a performance test on that baghouse within 120 days of the third observation. All observations of visible emissions by the permittee, US EPA, or NNEPA shall count toward the 12 month total [40 CFR § 71.6(a)(3)].

2. The permittee shall conduct a weekly visual emission survey of the exhaust stacks of baghouses DC

- 9, DC

- 10, and DC

- 11. The weekly survey shall be conducted while the equipment is operating, and during daylight hours , by a person certified in EPA Method 9 (Visual Determination of the Opacity of Emissions from Stationary Sources). If any visible emissions are observed, the permittee shall conduct an opacity test using EPA Method 9 within 24 hours w hile the equipment

is operating in accordance with 40 CFR § 60.675 [40 CFR § 71.6(a)(3)]

.

3. For each visible emission observation or Method 9 opacity test, the permittee shall record and maintain the following records:

a. the date and time of the observation, and the nam e of the observer.

b. the unit ID number.

c. statement of whether visible emissions were detected, and if so, whether they were observed continuously or intermittently.

d. result s of Method 9 test, if required.

II. F . Operational Flexibility

1. Cl ean Air Act Section 502(b)(10) Changes [40 CFR § 71.6(a)(13)(i)] [NNOPR § 404 (A) ]

a

. The permittee may make Clean Air Act Section 502(b)(10) changes without applying for a permit revision if those changes do not cause the facility to exceed emissions all owable under this permit (whether13 expressed as a rate of emissions or in terms of total emissions) and are not

modifications under Title I of the Clean Air Act . This class of changes

does not include:

i. Changes that would violate applicable requirement s; or

ii. Changes that would contravene federally enforceable permit terms and conditions that are monitoring (including test methods), recordkeeping, reporting, or compliance certification requirements.

b. For each proposed § 502(b)(10) change, the permittee shall provide written notification to the Director and the Administrator at least 7 days in advance of the proposed change. Such notice shall state when the change will occur and shall describe the change, any resulting emissions change, and any permit terms or conditions made inapplicable as a result of the change. The permittee shall attach each notice to its copy of this permit.

c

. Any permit shield provided in this permit shall not apply to any change made under this provision.

III. Facility

- Wide or Generic Permit Requirements Conditions in this section of the permit (Section III) apply to all emission s units located at the facility [See 40 CFR § 71.6(a)(1)]

.

III.A. Testing Req uirements [40 CFR § 71.6(a)(3)] In addition to the unit specific testing requirements derived from the applicable requirements for each individual unit contained in Section II of this permit , the permittee shall comply with the following generally applicable testing requirements as necessary to ensure that the required tests are sufficient for compliance purposes:

1. Submit to NNEPA a source test plan 30 days prior to any required testing. The source test plan shall include and address the following elements:

1.0 Purpose of the test 2.0 Source Description and Mode of Operation During Test 3.0 Scope of Work Planned for Test

4.0 Schedule/Dates 5.0 Process Data to be Collected During Test 6.0 Sampling and Analysis Procedures 6.1 Sampling Locations

6.2 Test Methods 6.3 Analysis Procedures and Laboratory Identification

7. 0 Quality Assurance Plan 7.1 Calibration Procedures and Frequency 7.2 Sample Recovery and Field Documentation 7.3 Chain of Custody Procedures 7.4 QA/QC Project Flow Chart 8.0 Data Processing and Reporting 8.1 Description of Data Handling and QC Procedure s 8.2 Report Content14

2. Unless otherwise specified by an applicable requirement or permit condition in Section II, all source tests shall be performed at maxim um operating rates (90% to

110% of device design capacity).

3. Only regular operating staff m ay adjust the processes or emission control device parameters within two (2) hours before or during a compliance source test. All adjustments must be logged and a copy of the log submitted with the test report. No adjustments are to be made within two (2) hours before the start of the tests or during a test, if those adjustments are a result of consultation before or during the tests with source testing personnel, equipment vendors, or consultants. Such adjustments may render the source test invalid.

4. D uring each test run and for two (2) hours prior to the test and two (2) hours after the completion of the test, the permittee shall record the following information:

a

. Visible emissions.

b

. All parametric data which is required to be monitored in Sect ion II for the emission unit being tested.

5

. Each source test shall consist of at least three (3) valid test runs and the emission results shall be reported as the arithmetic average of all valid test runs and in the

terms of the emission limit. There m ust be at least 3 valid test runs, unless otherwise specified.

6

. Source test reports shall be submitted to NNEPA and U.S. EPA within 60 days of completing any required source test.

III. B . Recordkeeping Requirements [40 CFR § 71.6 (a)(3)(ii)]

In addit ion to the unit specific recordkeeping requirements derived from the applicable requirements for each individual unit an d contained in Section II, the permittee shall comply with the following generally applicable recordkeeping requirements:

1. The perm ittee shall keep records of required monitoring information that include the following:

a. The date, place, and time of sampling or measurements;

b. The date(s) analyses were performed;

c. The company or entity that performed the analyses;

d. T he analytical techniques or methods used;

e. The results of such analyses; and

f. The operating conditions as existing at the time of sampling or

measurement.15

2. The permittee shall retain records of all required monitoring data and support

inform ation for a period of at least 5 years from the date of the monitoring sample, measurement, report, or application. Support information includes all calibration and maintenance records, all original strip

- chart recordings for continuous monitoring instrume ntation, and copies of all reports required by this permit.

3. The permittee shall maintain a file of all measurements, including continuous monitoring system, monitoring device, and performance testing measurements; all continuous monitoring system perfo rmance evaluations; all continuous monitoring system or monitoring device calibration checks; adjustments and maintenance performed on these systems or devices; and all other information required by 40 CFR § 60 recorded in a permanent form suitable for ins pection. The file shall be retained for at least five years following the date of such

measurements, m aintenance, reports and records [40 CFR § 71.6(a)(3)(ii), 40

CFR § 60.7(f)]

.

III. C . Reporting Requirements [40 CFR § 71.6 (a)(3)(iii)]

1. The permitt ee shall submit to NNEPA and EPA Region 9 reports of any monitoring required under 40 CFR § 71.6(a)(3)(i)(A), (B), or (C) each six month reporting period from January 1 to June 30 and from July 1 to December 31. All reports shall be submitted to NNEPA and US EPA and shall be postmarked by the

30 th day following the end of the reporting period. All instances of deviations from permit requirements must be clearly identified in such reports. All required reports must be certified by a responsible officia l cons istent with Condition

III.C.4. of this permit.

a. A monitoring report under this section must include the following:

(i) The company name and address.

(ii) The beginning and endin g dates of the reporting period.

(iii) The emissions u nit or acti vity being monitored.

(iv) The emissions limitation or standard, including operational requirements and limitations (such as parameter ranges), specified in the permit for which compliance is being monitored.

(v) All instances of deviations from permit requirements, including those attributable to upset conditions as defined in the permit and including exceedances as defined under 40 CFR § 64, and the date

on which each deviation occurred.

(vi) If the permit requires continuous monitoring of an emiss ions limit or parameter range, the report must include the total operating time of the emissions unit during the reporting period, the total duration of excess emissions or parameter exceedances during the reporting16 period, and the total downtime of the co ntinuous monitoring system during the reporting period.

(vii) If the permit requires periodic monitoring, visual observations, work practice checks, or similar monitoring, the report shall include the total time when such monitoring was not performed

du ring the reporting period and at the source' s discretion either the total duration of deviations indicated by such monitoring or the

actual records of deviations.

(viii) All other monitoring results, data, or analyses required to be reported by the appl icable requirement.

(ix) The name, title, and signature of the responsible official who is certifying to the truth, accuracy, and completeness of the report.

b. Any report required by an applicable requirement that provides the same

information d escri bed in paragraph III. C (1)(a)( i ) through ( ix ) above shall satisfy the requirement under III. C (1)(a).

c. "Deviation," means any situation in which an emissions unit fails to meet a permit term or condition. A deviation is not always a violation. A

deviati on can be determined by observation or through review of data obtained from any testing, monitoring, or record keeping establis hed in

accordance with 40 CFR § § 71.6(a)(3)(i) and (a)(3)(ii). For a situation lasting more than 24 hours, each 24

- hour period is considered a separate deviation. Included in the meaning of deviation are any of the following:

( i ) A situation when emissions exceed an emission limitation or standard;

(ii ) A situation where process or emissions control device parameter

values ind icate that an emission limitation or standard has not been

met;

(iii ) A situation in which observations or data collected demonstrate noncompliance with an emission limitation or standard or any work practice or operating condition required by the permi t.

(iv ) A situation in which an exceedance, as defined in the compliance assurance plan (40 CFR § 64), occurs.

2. The permittee shall promptly report to the NNEPA and EPA Regional Office deviations from permit requirements, including those attributab le to upset conditions as defined in this permit, the probable cause of such deviations, and any corrective actions or preventive measures taken. "P romp t" is defined as

follows:17 a. Any definition of "Prompt" or a specific timeframe for reporting

deviati ons provided in an underlying applicable requirement as identified in this permit;

b. Where the underlying applicable requirement does not define prompt or provide a timeframe for reporting deviations, reports of deviations will be

submitted based on th e following schedule:

(i) For emissions of a hazardous air pollutant or a toxic air pollutant (as identified in the applicable regulation) that continue for more than an hour in excess of permit requirements, the report must be

made by telephone, verbal , or facsimile communication within 24

hours of the occurrence.

(ii) For emissions of any regulated pollutant excluding a hazardous air pollutant or a toxic air pollutant that continue for more than two hours in excess of permit requirements, the report must be made by telephone, verbal, or facsimile communication within 48 hours of

the occurrence

.

(iii) For all other deviations from permit requirements, the report shall

be submitted with the semi

- annual monitoring report required in paragraph III. C ( 1 ) of this permit.

3. If any of the C onditions in III.C(2)( b ) (i) or (ii ) of this permit are met, the source must notify NNEPA and US EPA by telephone, facsimile, or electronic mail sent

to charlenenelson@navajo.org and EPA is r9.aeo@epa.gov , based on the timetable listed. A written notice, certified consistent with paragraph III.C( 4 ) of this permit section must be submitted within 10 working days of the occurrence. All deviations reported under this section must also be identified in the 6

- month

report re quired under paragraph III. C ( 1 ) of this section.

4. Any application form, report, or compliance certification required to be submitted by this permit shall contain certification by a responsible official of truth, accuracy, and completeness. All certifi cations shall state that, based on information and belief formed after reasonable inquiry, the statements and information in the document are true, accurate, and complete.

III. D

. Protection of Stratosphe ric Ozone [ 40 CFR § 82]

1. The permittee shall comply with the standards for labeling of products using

ozone

- depleting substances pursuant to 40 CFR § 82, Subpart E:

a. All containers in which a class I or class II substance is stored or transported, all products containing a class I substance, and all products directly manufactured with a C lass I substance must bear the required warning statement if it is being introduced into interstate commerce pursuant to 40 CFR § 82.106.18 b. The placement of the required warning statement must comply with the

r equirements pursuant to 40 CFR § 82.108.

c. The form of the label bearing the required warning statement must comply with the requirements pursuant to 40 CFR § 82.110.

e. No person may modify, remove, or interfere with the required warning

statement ex cept as described in 40 CFR § 82.112.

2. The permittee shall comply with the standards for recycling and emission s reduction pursuant to 40 CFR § 82, Subpart F, except as provided for motor vehicle air conditioners (MVACs) in Subpart B:

a. Persons open ing appliances for maintenance, service, repair, or disposal must comply with the requir ed practices pursuant to 40 CFR § 82.156.

b. Equipment used during maintenance, service, repair, or disposal of appliances must comply with the standards for recycling and recovery equipment pu rsuant to 40 CFR § 82.158.

c. Persons performing maintenance, service, repair, or disposal of appliances must be certified by an approved technician certification program pursuant

to 40 CFR § 82.161.

d. Persons disposing of s mall appliances, MVACs, and MVAC

- like appliances must comply with recordkeeping requirements pursuant to 40

CFR § 82.166. ("MVAC

- like appliance" as defined at 40 CFR § 82.152)

e. Persons owning commercial or industrial process refrigeration equipment

mu st comply with the leak repair requirements pursuant to 40 CFR §

82.156.

f. Owners/operators of appliances normally containing 50 or more pounds of refrigerant must keep records of when the refrigerant was purchased and added to such appliances pursuant to 40 CFR § 82.166.

3. If the permittee manufactures, transforms, destroys, imports, or exports a C lass I

or C lass II substance, the permittee is subject to all the requirements as specified

in 40 CFR § 82, Subpart A, Production and Consumption Controls

.

4. If the permittee performs a service on motor (fleet) vehicles when this service

involves ozone

- depleting substance refrigerant (or regulated substitu te substance) in the MVAC, the permittee is subject to all the applicable requirements as specified i n 40 CFR § 82, Subpart B, Servicing of Motor Vehicle Air

Conditioners.

The term "motor vehicle" as used in Subpart B does not include a vehicle in which final assembly of the vehicle has not been completed

. The term "MVAC" as used in Subpart B does not in clude the air

- tight sealed refrigeration system19 used as refrigerated cargo, or system used on passenger buses using HCFC

- 22 refrigerant.

5. The permittee shall be allowed to switch from any ozone

- depleting substance to any alternative that is listed in the S ignificant New Alternatives Program (SNAP) promulgated pursuant to 40 CFR § 82, Subpart G.

II I

. E . Asbestos from Demolition and Renovation [40 CFR § 61

, Subpart M]

The permittee shall comply with the requirements of Sections 61.140 through 61.157 of

the Na tional Emission Standard for Asbestos for all demolition and renovation projects [40 CFR § 61

, Subpart M]

.

III.F. Compliance Schedule [40 CFR § § 71.5(c)(8)(iii) and 71.6(c)(3)]

1. For applicable requirements with which the source is in compliance, the source will continue to comply with such requirements.

2. For applicable requirements that will become effective during the permit term, the source shall meet such requirements on a timely basis.

I V

. Title V Administrative Requirements

I V .A. Fee Payme nt [ NNOPR Subpart VI ] [40 CFR § 71.6(a)(7) and § 71. 9 ]

1. The permittee shall pay an annual permit fee in accordance with the procedures

outlined below

. [ NNOPR Subpart VI § § 603 (A) and (B) ]

a. The permittee shall pay the annual permit fee by April 1 of each year.

b. F ee payment s shall be in remitted in the form of a money order or certified

check made payable to the Navajo Nation E nvironmental Protection Agency

.

c. The permittee shall send the fee payment to :

Navajo Nation EPA Air Quality Control Program Operating Permit Program

P.O. Box 529 Fort Defiance, AZ 86504

2. The permittee shall submit a fee calculation worksheet form with the annual permit fee by April 1 of each year. Calculations of actual or estimated emissions

and calculation of th e fees owed shall be computed on the fee calculation worksheets provided by the EPA. Fee payment of the full amount must accompany each fee calculation worksheet. [NNOPR Subpart VI § 603 (A) ]

3. The fee calculation worksheet shall be certified by a resp onsible official

consistent with 40 CFR § 71.5(d). [40 CFR § 71.6(a)(7) and § 71. 9(e)(3) ]

4. Basis for calculating annual fee:20 The annual emissions fee shall be calculated by multiplying the total tons of actual emissions of all fee pollutants emitted f rom the source by the applicable emissions fee (in dollars/ton) in effect at the time of calculation. Emissions of any regulated air pollutant that already are included in the fee calculation under a category of regulated pollutant, such as a federally lis ted hazardous air pollutant that is already accounted for as a VOC or as PM10, shall be counted only once in determining the source’s actual emissions. [NNOPR Subpart VI §§ 602(A) and (B)(1)]

a. “Actual emissions” means the actual rate of emissions in tpy of any fee pollutant emitted from a part 71 source over the preceding calendar year. Actual emissions shall be calculated using each emissions unit’s actual operating hours, production rates, in

- place control equipment, and types of materials processed, stored, or combusted during the preceding calendar year. Actual emissions shall not include emissions of any one fee pollutant in excess of 4,000 TPY, or any emissions that come from insignificant

activities [NNOPR Subpart I § 102(5)].

b. Actual emissions shall be computed using methods required by the permit for determining compliance, such as monitoring or source testing data [40 CFR § 71.6(a)(7) and § 71.9(e)(2)].

c. If actual emissions cannot be determined using the compliance methods in the permit, t he permittee shall use other federally recognized procedures [40 CFR § 71.6(a)(7) and § 71.9(e)(2)].

d. The term “fee pollutant” is defined in NNOPR Subpart I § 102(24).

e. The term “regulated air pollutant” is defined in NNOPR Subpart I § 102(50), exc ept that for purposes of this permit the term does not include any pollutant that is regulated solely pursuant to 4 N.N.C. § 1121 nor does it include any hazardous air pollutant designated by the Director pursuant

to 4 N.N.C. § 1126(B).

f. The permittee s hould note that the applicable fee is revised each year to account for inflation, and it is available from NNEPA starting on March 1 of each year.

g. The total annual fee due shall be the greater of the applicable minimum fee

and the sum of subtotal ann ual fees for all fee pollutants emitted from the source. [NNOPR Subpart VI § 602(B)(2)]

5. The permittee shall retain , in accordance with the provisions of 40 CFR § 71.6(a)(3)(ii)

, all fee calculation worksheets and other emissions

- related data used

to determine fee payment for 5 years following submittal of fee payment.

Emission

- related data include, for example, emissions

- related forms provided by

NNEPA and used by the permittee for fee calculation purposes, emissions

- related spreadsheets, and records of emissions monitoring data and related support21 information required to be kept in accordance with 40 CFR § 71.6(a)(3)(ii) [ 40

CFR § 71.6(a)(7) and § 71. 9(i) ]

.

6. Failure of the permittee to pay fees in a t imely manner shall subject the permittee

to as sessment of penalties and interest in accordance with NNOPR Subpart VI § 603(C)

.

7. When notified by NN EP A of underpayment of fees, the Permittee shall remit full payment within 30 days of receipt of notification [ 40 CFR § 71. 9 ( j )( 2 ) ]

.

8. A Permittee wh o thinks an NN EPA a ssessed fee is in error and wishes to challenge such fee, shall provide a written explanation of the alleged error to

NN EPA along with full payment of the NN EPA assessed fee [CFR § 71. 9 ( j )( 3 ) ]

.

I V .B. Blanket Compliance Statement [40 CFR § § 71.6(a)(6)(i) and (ii), and S ections 113(a) and 113(e)(1) of the Clean Air Act, and 40 CFR § 51.212, § 52.12, § 52.33, § 60.11(g), and § 61.12]

1. The permittee must comply with all conditions of this Part 71 permit. Any permit

noncompliance, including, but not limited to, violation of any applicable requirement; any permit term or condition; any fee or filing requirement; any duty to allow or carry out inspection, entry, or monitoring activities; or any regulation or order issued by the permitting autho rity pursuant to this part constitutes a violation of the Clean Air Act and is grounds for enforcement action; permit termination, revocation and reissuance, or modification; or for denial of a permit renewal application. I t shall not be a defense for a p ermittee in an enforcement action that it would have been necessary to halt or reduce the permitted activity in order to maintain compliance with the conditions of this permit [ 40 CFR § § 71.6(a)(6)(i) and (ii)]

.

2. Determinations of deviations, continuous o r intermittent compliance status, or violations of this permit, are not limited to the applicable testing or monitoring methods required by the underlying regulations or this permit; other credible evidence (including any evidence admissible under the Fede ral Rules of Evidence) must be considered in such determinations. [Section 113(a) and 113(e)(1) of the Clean Air Act, 40 CFR § 51.212, § 52.12, § 52.33, § 60.11(g),

and § 61.12]

I V .C. Compliance Certifications [40 CFR § 71.6(c)(5)]

1. The permittee shall s ubmit to NNEPA and US EPA Region 9 a certification of compliance with permit terms and conditions, including emission limitations, standards, or work practices, postmarked by January 30 of each year and covering the previous calendar year. The compliance c ertification shall be certified as to truth, accuracy, and completeness by the permit

- designated responsible officia l

consistent with Section III.C.4 of this permit [40 CFR § 71.6(c)(5)]

.

2. The certification shall include the following:22 a. I dentification of each permit term or condition that is the basis of the

certification.

b. I dentification of the method(s) or other means used for deter mining the compliance status of each term and condition during the certification period , and whether such methods or other means provide continuous or

intermittent data

.

If necessary, the owner or operator also shall identify any other material

information that must be included in the certification to comply with

S ection 113(c)(2) of the Clean Air Act, which prohibits knowingly making a false certification or omitting material information.

c. T he compliance status of each term and condition of the permit for the period covered by the certification based on the method or means designated above. The certification shall identify each deviation and take it into account in the compliance certification.

d. Whether compliance with each permit term was continuo us or intermittent.

I V .D. Duty to Provide and Supplement Information [40 CFR § 71.6(a)(6)(v), 40 CFR § 71.5(b)]

The permittee shall furnish to NNEPA and US EPA Region 9 , within a reasonable time, any information that NNEPA and US EPA Region 9 may request in writing to determine whether cause exists for modifying, revoking, and reissuing, or terminating the permit, or to determine compliance with the permit. U pon request, the permittee shall also furnish

to NNEPA and US EPA Region 9 copies of records that are required to be kept pursuant to the terms of the permit, including information claimed to be confidential. Information claimed to be confidential should be accompanied by a claim of confidentiality according to the provisions of 40 CFR § 2, S ubpart B . The permittee , upon becoming aware that any relevant facts were omitted or incorrect information was submitted in the permit application, shall promptly submit such supplementary facts or corrected information.

The permittee shall also provide addition al information as necessary to address any requirements that become applicable to the facility after this permit is issued.

I V .E. Submissions [ 40 CFR § 71.5(d), § 71.6 , and § 71. 9 ] Any document required to be submitted with this permit shall be certifie d by a responsible official as to truth, accuracy, and completeness. Such certifications shall state that based on information and belief formed after reasonable inquiry, the statements and information in the document are true, accurate, and complete. Al l documents required to be submitted, including reports, test data, monitoring data, notifications, compliance certifications, fee calculation worksheets, and applications for renewals and permit modifications shall be submitted to NNEPA and US EPA Region 9:

Navajo Nation Air Quality Control Program Operating Permit Program

P.O. Box 529 Fort Defiance, AZ 8650423 and Director, Air Division (Attn: AIR

- 1) EPA Region IX

75 Hawthorne Street San Francisco, CA 94105

I V .F. Severability Clause [40 CFR § 71.6(a)(5)] The provisions of this permit are severable, and in the event of any challenge to any portion of this permit, or if any portion is held invalid, the remaining permit conditions

shall remain valid and in force.

I V .G. Permit Actions [40 C FR § 71.6(a)(6)(iii)] This permit may be modified, revoked, reopened, and reissued, or terminated for cause. The filing of a request by the permittee for a permit modification, revocation and reissuance, or termination, or of a notification of planned cha nges or anticipated noncompliance does not stay any permit condition.

IV.H Administrative Permit Amendments [40 CFR § 71.7(d)] [NNOPR § 405(C)]

The permittee may implement the changes outlined in subparagraphs (1) through (5) below immediately upon submit tal of the request for the administrative revision. The permittee may request the use of administrative permit amendment procedures for a permit revision that:

1. Corrects typographical errors.

2. Identifies a change in the name, address, or phone numb er of any person identified in the permit, or provides a similar minor administrative change at the

source.

3. Requires more frequent monitoring or reporting by the permittee

.

4. Allows for a change in ownership or operational control of a source where the

NN EPA determines that no other change in the permit is necessary, provided that

a written agreement containing a specific date for transfer of permit responsibility, coverage, and liability between the current and new permittee has

been submitted to the NN EPA ;

5. Incorporates into the P art 71 permit the requirements from preconstruction review permits authorized under an EPA

- approved program, provided that such a program meets procedural requirements substantially equivalent to the requirements of 40 CFR § 71.7 and § 71.8 that would be applicable to the change if it were subject to review as a permit modification, and compliance requirements substantially equivalent to those contained in 40 CFR § 71.6.

6. Incorporates any other type of change which NN EPA has determined to be similar to those listed above in subparagraphs ( 1 ) through ( 5 ).

IV.I. Minor Permit Modifications [40 CFR § 71.7(e)(1)] [NNOPR § 405(D)]24

1. The permittee may request the use of minor permit modification procedures only

for tho se modifications that:

a. Do not violate any applicable requirement.

b. Do not involve significant changes to existing monitoring, reporting, or recordkeeping requirements in the permit.

c. Do not require or change a case

- by

- case determination of an emission s limitation or other standard, or a source

- specific determination for temporary sources of ambient impacts, or a visibility or increment analysis.

d. Do not seek to establish or change a permit term or condition for which there is no correspond ing underlying applicable requirement and that the source has assumed to avoid an applicable requirement to which the source would otherwise be subject. Such terms and conditions include:

i. A federally enforceable emissions cap assumed to avoid

classif ication as a modif

ication under any provision of T itle I; and

ii. An alternative emissions limit approved pursuant to regulations promulgated under S ection 112(i)(5) of the Clean Air Act.

e. Are not modifications under any provision of T itle I of the Clean Air Act.

f. Are not required to be processed as a significant modification.

2. Notwithstanding the list of changes eligible for minor permit modific ation procedures in paragraph (1 ) above, minor permit modification procedures may be used for pe rmit modifications involving the use of economic incentives, marketable permits, emissions trading, and other similar approaches, to the extent that such minor permit modification procedures are explicitly provided for in an applicable implementation plan or in applicable requirements promulgated by

EPA.

3. An application requesting the use of minor permit modification procedures shall meet the requirements of 40 CFR § 71.5(c) and shall include the following:

(i) A description of the change, the emiss ions resulting from the change, and any new applicable requirements that will apply if the change occurs;

(ii) The source's suggested draft permit;

(iii) Certification by a responsible official, consistent with 40 CFR § 71.5(d), that the proposed mod ification meets the criteria for use of minor permit modification procedures and a request that such procedures be used; and

(iv) Completed forms for the permitting authority to use to notify affected States as required under 40 CFR § 71.8.25 (v) If th e requested permit revision would affect existing compliance plans or schedules, related progress reports, or certification of compliance requirements, and an outline of such effects.

4. The permittee may make the change proposed in its minor permit modi fication application immediately after submittal of such application. After the permittee makes the change allowed by the preceding sentence, and until the Director takes any of the actions specified in NNOPR § 405(D)(6) (a) through (c) , the permittee

must comply with both the applicable requirements governing the change and the proposed permit terms and conditions. During this time period, the permittee need not comply with the existing permit terms and conditions it seeks to modify. However, if the permit tee fails to comply with its proposed permit terms and conditions during this period, the existing permit terms and conditions it seeks to modify may be enforced against it.

5. The permit shield under 40 CFR § 71.6(f) may not exten d to minor permit

modi fications [See 40 CFR § 71.7(e)(1)(vi)].

IV.J. Group Processing of Minor Permit Modifications [40 CFR § 71.7(e)(2)]

1. Group processing of modifications by EPA may be used only for those permit

modifications:

a. That meet the criteria for minor per mit modification pr ocedures under paragraphs IV.I.1 of this permit; and

b. T hat collectively are below the threshold level of 10 percent of the emissions allowed by the permit for the emissions unit for which the change is requested, 20 percent of the a pplicable definition of major

source in 40 CFR § 71.2, or 5 tons per year, whichever is least.

2. An application requesting the use of group processing procedures shall be submitted to EPA, shall meet the requirements of 40 CFR § 71.5(c), and shall

incl ude the following:

a. A description of the change, the emissions resulting from the change, and any new applicable requirements that will apply if the change occurs.

b. The source's suggested draft permit.

c. Certification by a responsible officia l, consistent with 40 CFR § 71.5(d), that the proposed modification meets the criteria for use of group processing procedures and a request that such procedures be used.

d. A list of the source's other pending applications awaiting group processing, and a determination of whether the requested modification, aggregated with these other applications, equals or exceeds the threshold

set under Condition IV. ( J )(1)( b ) above.26 e. Completed forms for the permitting authority to use to notify affected

States as required under 40 CFR § 71.8.

3. The source may make the change proposed in its minor permit modification application immediately after it files such application. After the source makes the change allowed by the preceding sentence, and until the permit ting authority takes any of the actions authorized by 40 CFR § 71.7(e)(1)(iv)(A) through (C), the source must comply with both the applicable requirements governing the change and the proposed permit terms and conditions. During this time period, the sourc e need not comply with the existing permit terms and conditions it seeks to modify. However, if the source fails to comply with its proposed permit terms and conditions during this time period, the existing permit terms and conditions it seeks to modify ma y be enforced against it.

4. The permit shield under 40 CFR § 71.6(f) may not extend to group processin g of minor permit modifications [See 40 CFR § 71.7(e)(1)(vi)].

IV.K. Significant Permit Modifications [ 40 CFR § 71.7(e)(3)] [NNOPR § 405(E)]

1. Th e permittee must request the use of significant permit modification procedures

for those modifications that:

a. Do not qualify as minor permit modifications or as administrative

amendments.

b. Are significant changes in existing monitoring permit ter ms or conditions.

c. Are relaxations of reporting or recordkeeping permit terms or conditions.

2. Nothing herein shall be construed to preclude the permittee from making changes

consistent with P art 71 that would render existing permit compliance ter ms and

conditions irrelevant.

3. The permittee must meet all requirements of P art 71 for applications for significant permit modifications. For the application to be determined complete,

the permittee must supply all information that is required by 40 C FR § 71.5(c) for permit issuance and renewal, but only that information that is related to the proposed change [See 40 CFR § § 71.7(e)(3)(ii) and 40 CFR § 71.5(a)(2)]

.

I V

. L . Reopening for Cause [40 CFR § 71.7(f)]

NN EPA shall reopen and revise the permit pr ior to expiration under any of the following

circumstances:

1. Additional applicable requirements under the Act become applicable to a major

P art 71 source with a remaining permit term of 3 or more years.

2. Additional requirements (including excess emis sions requirements) become applicable to an affected source under the acid rain program. Upon approval by the Administrator, excess emissions offset plans shall be deemed to be incorporated into the permit.27

3. NN EPA determines that the permit contains a material mistake or that inaccurate statements were made in establishing the emissions standards or other terms or conditions of the permit.

4. NN EPA determines that the permit must be revised or revoked to assure compliance with the applicable requirem ents.

I V .M . Property Rights [40 CFR § 71.6(a)(6)(iv)] This permit does not convey any property rights of any sort, or any exclusive privilege.

I V .N . Inspection and Entry [40 CFR § 71.6(c)(2)] Upon presentation of credentials and other documents as may be required by law, the permittee shall allow authorized representatives from NNEPA and US EPA to perform the following:

1. E nter upon the permittee ’s premises where a Part 71 source is located or

emissions

- related activity is conducted, or where records must be kept under the conditions of the permit;

2. H ave access to and copy, at reasonable times, any records that must be kept under the conditions of the permit;

3. I nspect at reasonable times any facilities, equipment (including monitoring and air pollution cont rol equipment), practices, or operations regulated or required under the permit; and

4. A s authorized by the Clean Air Act, sample or monitor at reasonable times substances or parameters for the purpose of assuring compliance with the permit or applicable re quirements.

IV.O. Emergency Provisions [40 CFR § 71.6(g)]

1. In addition to any emergency or upset provision contained in any applicable requirement, the permittee may seek to establish that noncompliance with a technology

- based emission limitation und er this permit was due to an emergency. To do so, the permittee shall demonstrate the affirmative defense of emergency through properly signed, contemporaneous operating logs, or other relevant

evidence that:

a. an emergency occurred and that the permit tee can identify the cause(s) of the emergency;

b. the permitted facility was at the time being properly operated;

c. during the period of the emergency the permittee took all reasonable steps

to minimize levels of emissions that exceeded the emissio ns standards, or other requirements in this permit; and

d. the permittee submitted notice of the emergency to EPA within 2 working28 days of the time when emission s limitations were exceeded due to the emergency. This notice must contain a description of the emergency, any steps taken to mitigate emissions, and corrective actions taken. This notice

fulfills the requirements of Condition III.C( 2 ) of this permit.

e. In any enforcement preceding the permittee attempting to establish the

occurrence of an em ergency has the burden of proof.

2. An "emergency" means any situation arising from sudden and reasonably unforeseeable events beyond the control of the source, including acts of God, which situation requires immediate corrective action to restore norma l operation, and that causes the source to exceed a technology

- based emission s limitation under the permit due to unavoidable increases in emissions attributable to the emergency. An emergency shall not include noncompliance to the extent caused by imprope rly designed equipment, lack of preventive maintenance, careless or improper operation, or operator error.

I V .P

. Transfer of Ownership or Operation [40 CFR § 71.7(d)(1)(iv)] A change in ownership or operational control of this facility may be treated as an administrative permit amendment if the NNEPA determines no other change in this permit is necessary and provided that a written agreement containing a specific date for transfer of permit responsibility, coverage, and liability between the current and n ew permittee has been submitted to NNEPA

.

I V .Q . Off Permit Changes [40 CFR § 71.6(a)(12)] [NNOPR § 404(B)]

The permittee is allowed to make certain changes without a permit revision, provided that the following requirements are met:

1. E ach change is not ad dressed or prohibited by this permit ;

2. E ach change must comply with all applicable requirements and may not violate any existing permit term or condition;

3. C hanges under this provision may not include changes or activities subject to any requirement under Title IV or that are modifications under any provision of Title I of the Clean Air Act;

4. T he permittee must provide contemporaneous written notice to NNEPA and US

EPA Region 9 of each change, except for changes that qualify as insignificant

activities unde r 40 CFR § 71.5(c)(11). The written notice must describe each change, the date of the change, any change in emissions, pollutants emitted and any applicable requirements that would apply as a result of the change;

5. T he permit shield does not apply to chan ges made under this provision; and

6. T he permittee must keep a record describing all changes that result in emissions of any regulated air pollutant subject to any applicable requirement not otherwise regulated under this permit, and the emissions resulting from those changes.29

I V .R

. Permit Expiration and Renewal [40 CFR Sections 7 1.5(a)(1)(iii), 71.6(a)(11), 71.7(b), 71.7(c)(1)(i) and (ii), and 71.8(d)]

1. This permit shall expire upon the earlier occurrence of the following events:

a. up to twelve (12) year s elapses from the date of issuance to a solid waste incineration unit combusting municipal waste subject to standards under section 129 of the Clean Air Act; or

b. for sources other than those identified in subparagraph I V

. R (1)(a) above, five (5) years e lapses from the date of issuance; or

c. the source is issued a Part 70 permit by NNEPA, provided that EPA has granted the Navajo Nation t reatment as a state and primacy for a Part 70 program and that NNEPA issues the permit consistent with the VCA.

2. Expir ation of this permit terminates the permittee ’s right to operate unless a timely and complete permit renewal application has been submitted on or before a date 6 months, but not more than 18 months, prior to the date of expiration of this permit.

3. If the permittee submits a timely and complete permit application for renewal is

consistent with 40 CFR § 71.5(a)(2), but the permitting authority has failed to issue or deny the renewal permit, then the permit shall not expire until the renewal permit has been i ssued or denied and any permit shield granted pursuant to 40

CFR § 71.6(f) may extend beyond the original permit term until renewal.

4. The permittee ’s failure to have a Part 71 permit is not a violation of this part until

NNEPA takes final action on the per mit renewal application. This protection shall cease to apply if, subsequent to the completeness determination, the permittee fails to submit any additional information identified as being needed to process the application by the deadline specified in wri ting by NNEPA

.

5. Renewal of this permit is subject to the same procedural requirements that apply to initial permit issuance, including those for public participation, affected State,

and tribal review.

6. The application for renewal shall include the current permit number, description of permit revisions and off

- permit changes that occurred during the permit term, any applicable requirements that were promulgated and not incorporated into the permit during the permit term, and other information required by th e application

form.

IV.S. Additional Permit Conditions [Voluntary Compliance Agreement, Article 6] This permit is issued pursuant to the Voluntary Compliance Agreement between the permittee and the Navajo Nation. The permittee shall comply with the terms of this permit and shall be subject to enforcement of the permit by the Navajo Nation EPA, pursuant to the terms of the Voluntary Compliance Agreement. The permittee’s agreement to comply is effective upon the permittee’s written acceptance of the permit and expires at the end of the permit term, unless the permit is renewed. The permittee’s30

agreement to comply may be withdrawn during the permit term only if the Voluntary Compliance Agreement is terminated or expires as provided in that Agreement.

IV. T

. Part 71 Permit Enforcement [ Voluntary Compliance Agreement, Section 5.4.5; 40 CFR § 71.12 ]

1. The Navajo Nation has the authority to:

a. Develop compliance plans and schedules of compliance;

b. Conduct compliance and monitoring activities, including r eview of monitoring reports and compliance certifications, inspections, audits, conducting and/or reviewing stack tests, and issuing requests for information either before or after a violation is identified; and

c. Conduct enforcement

- related activities, including issuance of notices, findings, and letters of violation, and development of cases up to, but not including, the filing of a complaint or order.

2. Violations of any applicable requirement; any permit term or condition; any fee or filing requirem ent; any duty to allow or carry out inspection, entry, or monitoring activities; or any regulation or order issued by the permitting authority pursuant to this part are violations of the Act and are subject to full Federal enforcement

authorities available under the A ct.31 

# Attachment A

Phase II Acid Rain Permit Renewal