Document ID: EPA-R08-OAR-2022-0803-0010
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2022-11-30T05:00Z

Technical Support Document for Review of Request for Coverage
Request for Coverage under the General Air Quality Permit for New or Modified Minor Source Spark Ingnition Engines in Indian Country
                                       
                Fredericks Custom Solutions, Badlands East Pad
                                       
                               November 30, 2022

Applicant:
Fredericks Custom Solutions
88902 BIA Road 12
Mandaree, North Dakota 58757
Source:
Badlands East Pad
Source Location:
Dunn County, North Dakota on the Fort Berthold Indian Reservation 
Latitude 47.5726, Longitude -102.2932

Source Technical 
Contact:
Jesse Fredericks, Fredericks Custom Solutions, 
970-238-0524, frederickscustomsolutions@protonmail.com

Application #:
GEN-TAT-008183-022.001
Docket:
EPA-R08-OAR-2022-0650
Summary
Pursuant to the provisions of Clean Air Act (CAA) sections 110(a) and 301(d) and the Federal Indian Country Minor New Source Review Program at Code of Federal Regulations (CFR) title 40, sections 49.151-161 (Tribal Minor New Source Review (MNSR) Permit Program), the United States Environmental Protection Agency Region 8 is approving a Request for Coverage under the General Air Quality Permit for New or Modified Minor Source Spark Ignition Engines in Indian Country (SIE General Permit) to Fredericks Custom Solutions, (Fredericks or Applicant) for the construction and operation of two natural gas powered spark ignition engines. Fredericks' engines will be located at the Badlands East Pad, Dunn County, North Dakota 58636, on the Fort Berthold Indian Reservation (Latitude 47.5726, Longitude102.2932). The SIE General Permit, the permit under which the Applicant is seeking coverage, was issued by the EPA under the Tribal MNSR Program on September 16, 2016, with an effective date of November 14, 2016. See 81 FR 70944 (October 14, 2016).
This technical support document (TSD) provides the EPA Region 8's analysis of whether the Source is within the category of emissions sources to which the SIE General Permit applies and whether the source meets the criteria to be eligible for coverage under the SIE General Permit. This analysis and other information required by 40 CFR 49.157(a) will be made available to the public through the online docket for this action and, as applicable, at the EPA Region 8 office. Additional information for accessing the publicly available information is provided at the end of this TSD.
Source Description and Project Summary
On August 23, 2022, EPA Region 8 received a Request for Coverage under the SIE General Permit from Fredericks for the construction and operation of two natural gas fired IC engines to be located at the Badlands East Pad, in Dunn County, North Dakota, on Indian country lands within the Fort Berthold Indian Reservation (the Source). 
Fredericks is proposing to construct and operate a two natural gas fired IC engines to power data center equipment. Each engine will be approximately 600 HP and power a generator. Each of these engine/generator sets will sit on a 26-foot by 9-foot trailer. 

Fredericks has requested approval for coverage under the General Permit. Documentation of emissions calculations and ESA/NHPA evaluation for the facilty, necessary to evaluate the request for coverage under the General Permit, was provided in the Request for Coverage (dated August 22, 2022), which is included in the docket for this General Permit approval. 

In response to these submittals, the EPA determined that we received sufficient information to demonstrate eligibility for coverage under the SIE General Permit and, thus, the Applicant had submitted a complete Request for Coverage. Accordingly, we refer hereinafter to the August 22, 2022, Request for Coverage submittal and subsequent addenda to that request (and all attachments to those submittals), collectively, as the "Request for Coverage." This TSD describes our analysis of the Applicant's Request for Coverage for the Source and the legal and factual basis for our approval.

The geographic area where the Source will be located is designated attainment, unclassifiable or attainment/unclassifiable under the CAA for all National Ambient Air Quality Standards (NAAQS).

The proposed operation will include the equipment listed within the Table 1 below.
                                       
Table 1: List of Affected Emission Units
                                   Unit ID #
                    Description of Affected Emissions Unit
                            Maximum Rated Capacity
                             Date of Construction
1
Natural gas fired internal combustion engine 
600 horsepower
TBD, earliest year of construction will be 2018
2
Natural gas fired internal combustion engine 
600 horsepower
TBD, earliest year of construction will be 2018
 
Background
The CAA provides the EPA with broad authority to protect air resources throughout the nation, including air resources in Indian country. Unlike states, Indian Tribes are not required to develop CAA new source review (NSR) permitting programs. See, for example, Indian Tribes: Air Quality Planning and Management, 63 FR 7253 (February 12, 1998) (also known as the Tribal Authority Rule, or TAR). In the absence of an adequately implemented EPA‐approved NSR program on the Fort Berthold Indian Reservation, the EPA has the authority to implement a Federal Implementation Plan (FIP) in order to protect tribal air resources from impacts due to the construction of new or modified stationary sources of air pollutants. In 2011, the EPA finalized the Review of New Sources and Modifications in Indian Country (Tribal NSR Rule), codified at 40 CFR part 49, as part of a FIP under the CAA for Indian Country (see 76 FR 38748 (July 1, 2011)). Among other requirements, the Tribal NSR Rule set forth procedures and terms under which the Agency would administer a minor NSR permitting program in Indian country (MNSR Permit Program).
As part of the Tribal NSR Rule, the EPA adopted the option of developing general permits for certain categories of minor sources to which the MNSR Permit Program would apply. The purpose of a general permit is to provide for the protection of air quality while simplifying the permit issuance process for similar facilities in order to minimize the burden on the reviewing authority and the regulated sources. The EPA finalized the SIE General Permit effective November 14, 2016 (81 FR 70944 (October 14, 2016)). New and modified minor sources that are true minor sources or major sources seeking to become synthetic minor sources may apply for coverage under the SIE General Permit if their potential to emit for new, modified, and existing units is below major source thresholds and the source can meet the throughput limits and other terms and conditions set forth in the SIE General Permit. Sources seeking coverage under the SIE General Permit must also demonstrate that they meet certain additional eligibility criteria.

Applicability of the Tribal Minor NSR Program
The preconstruction permitting program is triggered for new or modified sources in locations covered by the Tribal NSR Program based on potential increases in air pollutants according to the applicability criteria in 40 CFR 49.153. Generally, source owners and operators first determine whether their new or modified source is subject to the CAA major NSR permitting program (pursuant to 40 CFR 52.21 for areas designated as attainment/unclassifiable for the NAAQS and/or 40 CFR 49.166 through 49.175 for areas designated as nonattainment for the NAAQS). For new or modified sources that are not subject to major NSR review, the owner and operator must evaluate whether the Tribal Minor NSR Program applies. 
The minor NSR permitting thresholds vary depending on whether the area in which the Source is or will be located is designated attainment and/or unclassifiable for the NAAQS, or designated nonattainment for the NAAQS. In this case, the Source is to be located within Dunn County, North Dakota within the Mandan, Hidatsa and Arikara tribal land which is designated attainment/unclassifiable under the CAA for all NAAQS pollutants. Thus, our consideration of the applicable permitting thresholds is based on the Tribal Minor NSR thresholds for attainment areas in Table 2 below.

Potential to emit (PTE) means the maximum capacity of a stationary source to emit an air pollutant under its physical and operational design. PTE is meant to be a worst-case emissions calculation and is used in many cases to determine the applicability of federal CAA requirements. Table 3 summarizes the Source's PTE and includes consideration of the applicable emissions limitations in the general permit. Because emissions of carbon monoxide (CO), nitrogen oxides (NOX), volatile organic compounds (VOC), particulate matter (PM) (including PM that is less than 2.5 μm in diameter (PM2.5) and less than 10 μm in diameter (PM10)) exceed the applicable minor NSR permitting threshold, and do not exceed the major source NSR thresholds, the Source is subject to the Tribal Minor NSR Program.

Potential to Emit and Emissions Calculations 
The Tribal NSR Rule establishes specific PTE thresholds for new or modified stationary sources that trigger the requirement to obtain a preconstruction permit under the Tribal Minor NSR program. Table 2 lists the minor and major source thresholds pursuant to 40 CFR 49.153 (Tribal Minor NSR), and 40 CFR 52.21(b)(1)(i)(b) (PSD Major Source). 
Table 2. Source PTE & NSR Permitting Thresholds in tons per year (tpy)
                                   Pollutant
                          MNSR Thresholds for Attainment Areas
                    Major Source PSD Thresholds for Attainment Areas
                             Carbon monoxide (CO)
                                      10
                                      250
                             Nitrogen oxides (NOX)
                                      10
                                      250
                             Sulfur dioxide (SO2)
                                      10
                                      250
                       Volatile Organic Compounds (VOC)
                                       5
                                      250
                                      PM
                                      10
                                      250
                                     PM10
                                       5
                                      250
                                     PM2.5
                                       3
                                      250
                                     Lead
                                      0.1
                                       -
                                   Fluorides
                                       1
                                       -
                              Sulfuric acid mist
                                       2
                                       -
                               Hydrogen sulfide
                                       2
                                       -
                             Total reduced sulfur
                                       2
                                       -
                           Reduced sulfur compounds
                                       2
                                       -

Fredericks submitted emissions calculations for the two 600 HP engines using the EPA approved emissions calculator found at http://www.epa.gov/air/tribal/tribalnsr.html. EPA has reviewed Frederick's submittal and determined that the estimated emissions are correct for the type of engines that Frederick's proposes to operate. The emissions analysis is available as part of our administrative record and the emission calculations for the Source are provided below in Table 3. 

In this case, we have determined that the Source triggers the preconstruction permit requirements under the Tribal Minor NSR Program because its PTE exceeds permitting thresholds. As described previously, the Applicant is seeking to obtain coverage under the SIE General Permit in lieu of obtaining a site-specific permit and has indicated that it satisfies the eligibility criteria necessary to qualify for coverage. The SIE General Permit includes enforceable physical or operational limitations on the maximum capacity of a source to emit an air pollutant. Our evaluation of whether the Source qualifies for the SIE General Permit included consideration of the limitations and controls required by the SIE General Permit.

Table 3. Facility‐wide Potential to Emit (PTE) Summary (includes permit controls)
                                       
                             Pollutant (tons/year)
                                    Process
                                      PM
                                     PM10
                                     PM2.5
                                      SO2
                                      NOX
                                      CO
                                      VOC
        Unit 1  -  600 HP Natural Gas Fired Internal Combustion Engine
                                   0.000454
                                   0.000454
                                   0.000454
                                   0.000029
                                    0.0129
                                     11.59
                                    0.0091
        Unit 2  -  600 HP Natural Gas Fired Internal Combustion Engine
                                   0.000454
                                   0.000454
                                   0.000454
                                   0.000029
                                    0.0129
                                     11.59
                                    0.0091
                                   Total PTE
                                   0.000908
                                   0.000908
                                   0.000908
                                   0.000058
                                    0.0258
                                     23.18
                                    0.0182

General Permit Eligibility Criteria
Based upon our review of the Request for Coverage, we have determined the Source qualifies for the SIE General Permit because it meets the following criteria:
 The Source is a minor source that is located in Indian Country;
 The Source will operate stationary spark ignition engines of a total combined horsepower less than 3800 hp;
 The Source only uses natural gas in the engines;
       The Source is located in an attainment/unclassifiable area for ozone;
       The Source is not an oil and natural gas production facility and or a natural gas processing segment of the oil and natural gas sector. 
      
As discussed further below, the Applicant has met the eligibility criteria related to listed species and historic properties.

Listed Species‐Related Eligibility Criteria
The EPA developed eligibility criteria related to species that are listed as endangered or threatened under the Endangered Species Act that applicants must satisfy to qualify for coverage under the SIE General Permit. Appendix A to the Request for Coverage form for the SIE General Permit provides detailed screening procedures for applicants to follow to assess the potential impacts of their sources on federally‐listed species and their critical habitat. To be eligible for coverage under the General Permit, sources must demonstrate that they have satisfactorily completed the screening procedures and that they meet one of the species‐related eligibility criteria, provide sufficient documentation supporting the criterion selected and obtain confirmation from the EPA that they have done so.
The Request for Coverage states that the Source meets Criterion B of Appendix A with respect to listed species protection. Fredericks included a evaluation to support this statement in their application.

Fredericks considered the action area to be within the exterior boundaries of the existing Badlands East Pad and reviewed the United States Fish and Wildlife Services (USFWS) Information for Planning and Consultation (IPaC) database. Fredericks identified the Northern Long-eared Bat (Myotis septentrionalis) (Threatened), Piping Plover (Charadrius melodus) (Threatened) and critical habitat, Red Knot (Calidris canutus rufa) (Threatened), Whooping Crane (Grus americana) (Endangered), Dakota Skipper (Hesperia dacotae) (Threatened), and Monarch Butterfly (Danaus plexippus) (Candidate) as species that are potentially affected. 

WPX Energy/Devon Energy shared with Fredericks a copy of a 2017 environmental assessment (EA) and finding of no significant impact conducted by the U.S. Department of the Interior's Bureau of Indian Affairs (BIA) for WPX's proposed development of the Badlands well pad. All the species identified, aside from the Monarch Butterfly, which is a candidate species, appear to have been identified in the 2017 EA. Fredericks reported the determined distances of the Badlands East Pad to known habitat to each of the listed species. Fredericks concluded that no impacts from the activity at the existing Badlands East Pad would occur. Based on this analysis, Fredericks believes requirements under the Endangered Species Act are met by Criterion B.

After review and consideration of this information and documentation, the EPA agrees that the Applicant has completed the species‐related screening procedures and has demonstrated, providing appropriate documentation, that the proposed Source meets Criterion B of the listed species‐related eligibility criteria for coverage under the SIE General Permit.
Historic Properties‐Related Eligibility Criteria
The EPA developed the screening process in Appendix B of the Request for Coverage form to enable source owners/operators to appropriately consider the potential impacts, if any, resulting from the construction, modification and/or operation of a new or modified emission source on historic properties and, if applicable, to determine whether actions can be taken to mitigate any such impacts. To be eligible for coverage under the SIE General Permit, sources must demonstrate that they have satisfactorily completed the screening procedures and that they meet one of the historic property‐related eligibility criteria, provide sufficient documentation supporting the criterion selected and obtain confirmation from the EPA that they have done so.
With respect to the Source, Fredericks indicated in the Request for Coverage that to the best of its knowledge and based on evidence of prior and existing disturbances at the Badlands East Pad, Fredericks believes that no historic properties are affected by the proposed project.

The 2017 EA identified four cultural resources at the Badlands East Pad project location. According to this analysis "[a]ll but one would be avoided by more than 75 feet." For the one site where "75-foot avoidance" was not possible, an archaeologist was "present during all construction activities within 75 feet of the site boundary to avoid impacts to [the] site." Because cultural resources have been identified at and near the Badlands East Pad project location, Fredericks proceeded to Step 2 of the historic property screening process in Appendix B of the Request for Coverage Form to assess whether the construction activities related to its proposed engine source will affect historic properties. Fredericks reached out to the MHA Nation Tribal Historic Preservation Office (THPO) on multiple occasions seeking their input regarding any potential impacts to historic properties that may be associated with Fredericks' proposed project on the existing Badlands East Pad. Fredericks did not receive any response from the MHA Nation THPO. Fredericks' proposed engine source will not require any permanent construction and will not involve any excavation activities ontop of existing disturbed group.

Based on the documentation provided in the Request for Coverage the EPA has concluded that Fredericks has demonstrated that it has satisfactorily completed the historic property‐related screening procedures, that the Source meets the historic property‐related eligibility criteria for the SIE General Permit of No Historic Properties Affected and that Fredericks has provided sufficient documentation supporting the criterion selected. 

Environmental Justice
The EPA believes the human health or environmental risk addressed by this action will not have  disproportionately high and adverse human health or environmental effects on communities of color, low-income or indigenous populations. The EPA's primary goal in developing the SIE General Permit is to ensure that air resources in Indian country will be protected in the manner intended by the CAA.

The SIE General Permit will limit adverse impacts by restricting operations and emissions. In addition, the SIE General permit is part of a preconstruction permitting program for minor sources in Indian country that is comparable to similar programs in neighboring states that, upon promulgation in 2011, filled a regulatory gap that did not previously evaluate or restrict minor sources of emissions in Indian country, while the emissions from similar sources in state jurisdiction were regulated
      
This permit action would authorize the construction of two spark ignition engines. The EPA reviewed the area around the facility encompassing a one- and three-mile radius from the location. EJScreen indicates there are no persons within a one-mile radius and fifty-four people who live within a three-mile radius. , 

The EJScreen results indicate that the area within a three-mile radius of the project area exhibits an EJ index at the 93[rd] percentile for ozone, and 90[th] percentile for wastewater discharge, both on a state level, meaning that 7 percent and 10 percent, respectively, of areas in North Dakota report higher results for that particular project area. These percentiles suggests that there is a potential for an air quality issue in the area around the facility and a potential EJ concern. 

This Source would emit new ozone precursor pollutants. The operational limits set by the SEI general permit result in an estimated potential to emit of 0.0258 tons of NOX and 0.0182 tons of VOC. The Agency believes that the small emissions of ozone precursors in an area with no inhabitants within one mile is unlikely to present an impact to communities overburdened with ozone. The EPA does not attribute minor source level precursor emissions from one source as a concern for statistically significant changes in ozone concentrations or design values in a particular airshed, as emissions tend to dissipate at short distances from the source boundary (less than 1 mile). Further, there are not a large number of sources of ozone precursor emissions in the vicinity of the plant such that we would expect a cumulative contribution of sources to impact ozone concentrations. 

However, the Agency also considered a three-mile radius due to the lack of demographics in the one-mile radius of the source. As mentioned above, the three-mile radius resulted in two indicators above the 90[th] percentile for the EJ index, on a state level, for ozone and wastewater discharge. The ozone value provided by EJScreen for the summer seasonal average of daily maximum 8-hour concentrations is 42.4 ppb. While a high ozone value for North Dakota, this value falls in the 51[st] percentile nationaly, indicating that North Dakota has ozone values well below the average ozone values found in the rest of the country.

The wastewater discharge index value supplied by EJScreen is 16 (toxicity-weighted concentration/m distance). This places it in the 98[th] percentile in both the state and the nation. However the Fredericks project will have no wastewater discharge associated with any emission units approved by the project. There is no mitigation activity that could be undertaken by Fredericks to reduce the burden on the community in the area.

EJScreen does not directly model all Criteria Air Pollutants (e.g., NOX and VOC). Instead, EJScreen uses a downscaling fusion model that relies on both air quality monitoring data from NAMS/SLAMS and numerical outputs from the Models-3/CMAQ. EJScreen also relies on the most recently available data for both environmental and demographic indices. There is the potential for considerable uncertainty in a screening analysis for ozone relying on EJScreen. 

The EPA sets NAAQS for ozone. The SIE general permit was designed to be protective of the NAAQS and Region 8 therefore believes that the SIE General Permit is appropriately protective with respect to the Source. As stated previously, there is no population residing within one mile of the project area and the emissions from the source are expected to dissipate over short distances. EJScreen estimates that the approximate population within three miles of the source is fifty-four people. 

The EPA made all information related to the EPA's Approval for Coverage under the SIE General Permit accessible online to the general public for review until the approval was issued, during which time anyone could object to the appropriateness of this particular source's coverage under the SIE General Permit.6.
Public Participation
As described in 40 CFR 49.157, issuance of general permits pursuant to the MNSR Permit Program must meet public participation requirements. Before issuing a permit under the MNSR Permit Program, the EPA must prepare a draft permit and must provide adequate public notice to ensure that the affected community and the public have access to the draft permit information. The public notice must provide an opportunity for a 30‐day public comment period and notice of a public hearing, if any, on the draft permit. Consistent with these requirements, during the development of the proposed SIE General Permit, the EPA followed the applicable public participation process and received numerous comments. The EPA considered and addressed these comments in its issuance of the final SIE General Permit (see 81 FR 70944 (October 14, 2016)).
For coverage of a particular source under the SIE General Permit, the EPA's analysis of whether the source is within the category of emissions sources to which this General Permit applies, including whether the source meets the criteria to be eligible for coverage under the general permit, must be made available to the public. While the EPA was in the process of reviewing the Request for Coverage for the Source under the SIE General Permit, certain supporting documentation, including the Request for Coverage, any additional information requests made by the EPA to the Applicant and any additional information submitted by the Applicant, were made available to the public on the EPA website at: http://www.epa.gov/caa-permitting/caa-permit-public-comment-opportunities-region-8. The EPA has described its analysis in this TSD, which will be made accessible, along with the EPA's Approval of the Request for Coverage for the Source under the SIE General Permit and all supporting documentation (the Administrative Record), on the EPA website at:
http://www.epa.gov/caa-permitting/caa-permits-issued-epa-region-8.  

Approval of Request for General Permit Coverage
The EPA has carefully reviewed the Request for Coverage, and other relevant information, to determine whether the Source meets all of the criteria to qualify it to apply for coverage under this General Permit. Based on our review of, and in reliance on, all of the information and representations provided in the Request for Coverage, the EPA has determined that the Source meets all such criteria, is eligible for coverage under the SIE General Permit and is approving the Request for Coverage for the Source. The EPA's review with respect to some of these criteria was discussed in more detail throughout this TSD.
Final Agency Action  -  Judicial Appeal 
The EPA's Approval of the Request for Coverage ("Approval") for the Source is a final agency action for purposes of judicial review only for the issue of whether the Source qualifies for coverage under the SIE General Permit. 40 CFR 49.156(e)(6). Any petition for review of this approval action must be filed in the United States Court of Appeals for the appropriate circuit pursuant to CAA section 307(b).
Public Availability of Information
The EPA's Approval, this TSD and all other supporting information for this action are available through the online docket at www.regulations.gov, Docket ID:EPA-R08-OAR-2022-0803. If you have trouble accessing materials, please contact the EPA Region 8 contact listed below: 
Donald Law
Air and Radiation Division (8ARD-PM)
U.S. Environmental Protection Agency, Region 8 
1595 Wynkoop Street
Denver, Colorado  80202
Phone: (303) 312-7015  
E‐mail: law.donald@epa.gov

Paper copies of these documents can be sent to individuals upon request in accordance with Freedom of Information Act requirements as described on the EPA Region 8 website at http://www.epa.gov/region8/epa-region-8-foia-office-contact.

The EPA is also providing this TSD and our Approval of Request for Coverage for the Source to:

Edmund Baker
404 Frontage Road
New Town, North Dakota 58769-9404
edmundbaker@mhanation.com