United States
            Environmental Protection
            Agency
Office of Air Quality
Planning and Standards
Research Triangle Park, NC 27711
MD-12
EPA-456/R-96-004 (/"
August 1996
&EPA
            Federal Operating Permits Program
            Under Title V of the Clean Air Act

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FEDERAL OPERATING PERMITS PROGRAM UNDER
         TITLE V OF THE CLEAN AIR ACT
                  FINAL REPORT
              Work Assignment No. 11-20
             EPA Contract No. 68-D3-0031
               MRI Project No. 4202-20
                    Prepared for:

         Ms. Helen Eng and Ms. Maria Stanco
             Work Assignment Managers
    U. S. Environmental Protection Agency, Region II
               290 Broadway, 21st Floor
              New York, NY 10007-1866
                    Prepared by:

              Midwest Research Institute
                   August 1,  1996
               U.S. Environmental Protection Agency
               Region 5, Library (PL-12J)
               77 West Jackson Boulevard, 12th Floor
               CWcago, IL  606Q4-3590

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                                   PREFACE

      The purpose of this notebook is to supplement the information presented and
discussed in the EPA-sponsored workshop entitled, "The Federal Operating Permits
Program (Part 71)."  This workshop was developed to inform industry in affected States
of the requirements for complying with the Federal Operating Permits Program under
Part 71  of Volume 40 of the Code of Federal Regulations.

      The notebook  was prepared by Midwest Research Institute (MRI) under EPA
Contract No. 68-D3-0031, WA No. 11-20, with EPA's Information Transfer and
Program Integration  Division in Research Triangle Park, North Carolina.  The EPA
Work Assignment Managers were Ms. Helen Eng and Ms. Maria Stanco of the EPA
Region II Office in New York City.

      The authors wish to acknowledge the support of several individuals.  Ms. Chris
Fazio of the EPA Region II Office provided overall technical guidance for the entire
notebook. Messrs. Donald Dahl of the EPA Region I Office in Boston, Massachusetts,
and Mr. Ray Chalmers of the Region III Office in Philadelphia, Pennsylvania, assisted
Ms. Fazio in guiding and reviewing the notebook.  Valuable assistance was also provided
by Ms.  Candace Carraway, Mr. Kirt Cox,  Mr.  Jeff Herring, Mr. Michael Ling,
Mr. Barrett Parker,  Ms. Joanna Swanson,  and  Mr. Scott Voorhees of EPA's Office of
Air Quality Planning and Standards.

      We also wish to acknowledge the support of TRC Environmental Corporation;
Goldman, Antonetti, and Cordova; and the Puerto Rico Manufacturers Association for
allowing the text from several sections of their May 15, 1995, reports entitled "Guidance
Document for the Preparation of Title V Emissions Inventories" and "Guidance
Document for Developing Alternative Operating Scenarios and Operational Flexibility
for Title V Permits" to  be incorporated into Sections 5.1.3 through  5.1.6, 6.1.3, 6.6.1,
and 6.9.1 through 6.9.3 of the notebook.
                                       in

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                            TABLE OF CONTENTS

                                                                         Page

1.0   INTRODUCTION	      1-1

2.0   TRANSITION BETWEEN PARTS 70 AND 71	      2-1
      2.1  DIFFERENCES BETWEEN Part 70 AND Part 71  	      2-1
          2.1.1 Early Application Due Date  	      2-2
          2.1.2 Insignificant Activities and Emission Levels  	      2-2
          2.1.3 Permit Fees	      2-2
          2.1.4 Enforcement	      2-3
      2.2  PROGRAM TRANSITION AND IMPLEMENTATION	      2-3
          2.2.1 Public Notice of Part 71 Program	      2-4
          2.2.2 Transition Plan for Initial Permit Issuance   	      2-4
          2.2.3 Delegation of Part 71 Programs to State or Local Agencies  ...      2-5
          2.2.4 Transition to Approved Part 70 Program	      2-5

3.0   TITLE V OBLIGATIONS AND APPLICABILITY	      3-1
      3.1  OBLIGATIONS UNDER TITLE V	      3-1
          3.1.1 Reporting Requirements	      3-1
          3.1.2 Fees	      3-2
          3.1.3 Enforcement and Penalty Issues	      3-4
      3.2  APPLICABILITY OF TITLE V	      3-4
          3.2.1 Definitions	      3-5
          3.2.2 Who Needs an Operating Permit?	      3-6
          3.2.3 Which Pollutants are Regulated?  	      3-8
          3.2.4 When Should Fugitive Emissions be Counted?	      3-8
          3.2.5 Insignificant Activities	     3-10

4.0   SYNTHETIC MINORS, POTENTIAL TO EMIT, AND TRANSITION
      POLICY	      4-1
      4.1  SYNTHETIC MINORS	      4-1
      4.2  MECHANISMS TO LIMIT PTE	      4-2
          4.2.1 FESOP's	      4-2
          4.2.2 SIP General Permits	      4-3
          4.2.3 Prohibitory Rule	      4-3
          4.2.4 Preconstruction Permit  	      4-4
          4.2.5 Source Specific SIP Revisions	      4-4
      4.3  EPA TRANSITIONAL GUIDANCE FOR SYNTHETIC MINORS .  .      4-5
      4.4  PRACTICAL ENFORCEABnJTY	      4-6

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                       TABLE OF CONTENTS (continued)

                                                                       Page

5.0    PERMIT APPLICATION STEPS AND CONTENT  	      5-1
      5.1  PERMIT APPLICATION ELEMENTS  	      5-1
          5.1.1 Permit Application Streamlining	      5-2
          5.1.2 Minimum Permit Application Elements  	      5-3
          5.1.3 Emissions Reporting Categories	      5-5
          5.1.4 Source Identification System	      5-6
          5.1.5 Emission Estimation Principles  	      5-8
          5.1.6 Applicable Requirements	     5-17
          5.1.7 Preparing Compliance Plans, Schedules, and Certification ....     5-18
          5.1.8 Preparing Insignificant Activities and Emission Levels Lists .  . .     5-29
      5.2  THE PERMIT APPROVAL PROCESS	     5-32
          5.2.1 Public and "Affected State" Notice and Opportunity for
               Comment	     5-32
          5.2.2 Public Petitions and Judicial Review	     5-34
      5.3  PERMIT CONTENT   	     5-34
      5.4  PERMIT REVISIONS	     5-37
          5.4.1 Administrative Permit Amendments  	     5-37
          5.4.2 Minor Permit Modifications	     5-37
          5.4.3 Significant Permit Modifications  	     5-38
      5.5  PERIODIC MONITORING, RECORDKEEPING, AND REPORTING     5-39

6.0    FLEXIBLE PERMIT APPROACHES	      6-1
      6.1  EMISSIONS TRADING UNDER EMISSION CAPS ESTABLISHED
          BY THE PERMIT	      6-1
          6.1.1 Impacts of Establishing Emissions Caps	      6-2
          6.1.2 Developing Emissions Caps  	      6-2
          6.1.3 Implementing Emissions Caps	      6-3
      6.2  EMISSIONS TRADING BASED ON THE SIP RULES	      6-3
      6.3  OFF-PERMIT CHANGES  	      6-4
      6.4  EMISSIONS TRADING BASED ON APPLICABLE
          REQUIREMENTS	      6-4
      6.5  EMISSIONS TRADING BASED ON ECONOMIC INCENTIVES ...      6-5
      6.6  ALTERNATIVE OPERATING SCENARIOS  	      6-5
      6.7  ADVANCE NSR APPROVAL  	      6-6
      6.8  GENERAL PERMITS	      6-7
      6.9  MAXIMIZING POTENTIAL TO EMIT	      6-7
          6.9.1 Impacts - Benefits and Limitations	      6-7
          6.9.2 Guidelines to Maximizing PTE	      6-8
          6.9.3 Examples of Maximizing PTE .	      6-8
                                     VI

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                      TABLE OF CONTENTS (continued)

                                                                    Page

7.0   HAZARDOUS AIR POLLUTION PROGRAM REQUIREMENTS FOR
     TITLE V	      7-1
     7.1 SECTION 112(g)	      7-1
         7.1.1 Components of the Draft Final Rule	      7-2
         7.1.2 Case-by-Case MACT Determination	      7-2
         7.1.3 Determining MACT-Equivalent Limitations	      7-5
         7.1.4 MACT Hammer - Section 112(j)	      7-5
         7.1.5 MACT Approval	      7-6
     7.2 SECTION 112(r) REQUIREMENTS	      7-6

8.0   INFORMATION SOURCES	      8-1

APPENDIX A.  EPA MEMORANDA
APPENDIX B.  SEMINAR OVERHEAD TRANSPARENCIES
                                   Vll

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                             LIST OF FIGURES
Figure 5-1    Applicable requirements	,
Figure 5-2.   Draft Form CP ~ Compliance Plan	
Figure 5-3.   Draft Form CC-1 - Compliance Certification (Method of
            Compliance)	
Figure 5-4.   Draft Form CC-2 ~ Compliance Certification	
Figure 5-5.   Compliance Plan and Schedule Requirements	
Figure 5-6.   Draft Application Form IE — Insignificant Emissions .  . .
Figure 5-7.   Application Submittal/Permit Issuance Process 	
Figure 6-1.   Maximizing PTE example for health products	
Figure 6-2.   Maximizing PTE example for electronics production .  . .
Figure 7-1.   Schematic of Section 112(g) process  	
Page

5-19
5-25

5-26
5-27
5-28
5-31
5-33
 6-9
6-10
 7-3
                              LIST OF TABLES
TABLE 3-1.  MAJOR SOURCE THRESHOLDS UNDER THE PART 71 PERMIT
            PROGRAM  	
TABLE 3-2.  SOURCE CATEGORIES FOR WHICH FUGITIVE EMISSIONS
            MUST BE CONSIDERED	
TABLE 5-1.  MINIMUM PERMIT APPLICATION REQUIREMENTS	
TABLE 5-2.  "INSIGNIFICANT" ACTIVITIES UNDER THE PART 71 PERMIT
            PROGRAM	
TABLE 5-3.  CIRCUMSTANCES REQUIRING PERMIT REOPENINGS  ....
TABLE 6-1.  TYPICAL FACTORS USED FOR MAXIMIZING POTENTIAL
            TO EMIT	
 3-7

 3-9
 5-4

5-29
5-36

 6-8
                                    Vlll

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                                 1.0 INTRODUCTION

       With the Clean Air Act Amendments of 1990, Congress created the Title V operating
permits program, which required EPA to establish national standards for an operating permits
program for stationary sources of air pollution. Based on these standards, States were
required to devise their own permit programs under Title V.  On July 21,  1992, the U. S.
Environmental Protection Agency (EPA) published the final rulemaking  for the Title  V
program as Part 70 of Chapter I of Title 40 of the Code of Federal Regulations (40 CFR
Part 70).  This  regulation  outlined the specific minimum requirements that States must meet
in their operating permit programs.
       The basic premise behind Title V is fundamentally simple:  all Federal requirements
from a number of air pollution regulatory programs are integrated into a single document.
By consolidating facilities' permit requirements, the public and permitting authorities  can
better determine if sources are in compliance with their Clean Air Act requirements.  Other
program objectives include providing a consistent framework for incorporating new
requirements, providing programs for emissions trading, and establishing independently
funded operating permits programs. Title V also  includes requirements for public
participation, provisions for permit and application shields, and a mechanism for permit
reopenings and  revisions.  Finally, timeframes in  which State permitting authorities and EPA
must act to review and rule on permitting applications are specified.
       State agencies are responsible for developing and implementing operating permits
programs under Title V.  Therefore, States must develop their own operating permit
programs to review,  issue, administer, and  enforce operating permits. States are also
required to collect the fees necessary to carry out these responsibilities.  State agencies are
free  to develop  and implement Part  70 as they wish so long as they meet minimum
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EPA-established requirements.   For example, States may elect to establish requirements
more stringent that those set forth under Part 70.
       Under the Clean Air Act Amendments, EPA is required to implement a Federal
Title V permits program (to be issued under 40 CFR Part 71) in any State or jurisdiction that
did not have an approved Part 70 permit program in place by November 15,  1995.  Because
several State and authorized local agencies do not have EPA-approved Part 70 programs in
place,  EPA is in the process of preparing to implement Part 71 programs in these areas.
Part 71 will apply not only to major stationary sources of air pollution in States and
authorized local agencies that have failed to obtain EPA approval of their operating permits,
but also to sources located in areas over which Indian Tribes have jurisdiction (if the Tribes
have not developed their own permit programs) and to certain sources on the Outer
Continental Shelf.
       The requirements in  the Part 71 rule are similar to those mandated in Part 70 because
Part 71 is modeled on the Part 70 regulations. For example, the definitions,  permit content,
and application requirements are quite similar. In addition, Part 71 provides  some flexibility
by allowing EPA to delegate administration of the operating permits program, in whole or in
part, to State, local, or Tribal agencies, where appropriate.  Therefore, EPA  anticipates a
smooth transition between the Part 71 and Part 70 programs if the permitting authorities
should change in the future  (e.g., if certain States ultimately receive EPA approval of their
operating permits programs).
       The primary difference between the Part 70 and 71 rules is that Part 70 programs are
implemented by State or local authorities, whereas Part 71 programs are  administered by
EPA, except in those cases where authority is delegated elsewhere.  Other differences
include the following:  (1) under Part 70, many implementing agencies have developed very
extensive lists of insignificant activities and emission level thresholds that have been
approved by EPA; the insignificant activity list in Part 71 is much less extensive; and
(2) under Part 70, the initial fee for sources is adjusted upward from a 1989 base fee of $25
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per ton per year of regulated pollutant emissions plus the Consumer Price Index, under
Part 71, the fee is proposed to be $32 per ton per year in Phase I if the program is
administered by EPA and $24 per ton per year if administered by the State under a fully
delegated program (to be increased in Phase n to reflect the additional cost of permit
revisions).  Additionally, Part 71's definition of "affected State" has been modified to include
Indian tribal lands for cases where EPA determines that an Indian Tribe is eligible for
treatment as an affected State.  Also, Part 71 requires that any federally recognized Indian
Tribe be notified of the issuance of any draft permits to sources that could impact tribal air
quality, including all draft permits issued by EPA for the tribal area and all draft permits for
sources that are within 50  miles of the reservation boundary.
       Although EPA originally intended to incorporate proposed revisions to the Part 70
rule into the final Part 71 rule, industry commenters unanimously argued that the permit
revisions in the proposed Part 70 rule were too complex and would hinder a source's ability
to make rapid changes in response to market conditions. EPA agreed with these concerns
and with concerns over impeding transitions to Part 70 approval. For EPA to fulfill its
mandate as the Title V permitting authority for States that have not obtained Part 70
approval, and to do so by  establishing a complete Part 71 program, it was necessary for EPA
to promulgate the Part 71 rule on an interim basis (hereafter called "Phase I  Part 71 rule"),
based upon the current Part 70 regulation.  Many issues in Part 70 are still outstanding
following the August 1994 and August 1995 proposed changes.  Once the Agency has
resolved the outstanding issues with the relevant stakeholders, EPA intends to issue a second
round of final rulemaking for Part 71  (hereafter "Phase n rulemaking") to conform Part 71
to the revised Part 70 rule.
         example, the minimum Part 70 fee in 1996 is $31 per ton per year of regulated
pollutant, although some States have established levels significantly higher than this, while
other States have prepared detailed fee demonstrations showing that lesser fees would be
sufficient to run the program.
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                  2.0  TRANSITION BETWEEN PARTS 70 AND 71

      EPA has tailored the Federal Part 71 operating permits regulations after the Part 70
regulations.  This consistency should ease the anticipated transition from Part 71 to Part 70
programs when States obtain EPA approval of their own permit programs. This section will
present the differences between the requirements of Part 70 and Part 71 and discuss some
practical transition issues that may be of interest to industry.

2.1 DIFFERENCES BETWEEN Part 70 AND Part 71
      EPA initially finalized the Part 70 regulation on July 21, 1992 (57 FR 32250).  After
much controversy related to the permit revision procedures, EPA published proposed changes
to these procedures on August 29, 1994 (59 FR 44460).  Part 71, as proposed on April 27,
1995 (60 FR 20804), incorporates EPA's revised permit revision procedures.  Because of the
extensive comments received on these revised procedures from both industry and the States,
EPA has streamlined  the permit revision procedures in a supplemental notice (60 FR 45529,
August 31, 1995).  Due to delays in finalizing the Part 70 rules, EPA has decided to finalize
the Part 71 rule based on the original July  21, 1992 Part 70 rule and not the Part 71 proposal
which hi large part was based on the August 29,  1994 proposed revisions to Part 70.
Because States may have up to  two years to revise their existing Part 70 programs to meet
the Part 70 revisions  once promulgated, EPA believes that tailoring the Part 71 rule to the
existing Part 70 rule will enhance the transition between the Part 71 and Part 70 programs.
In a Phase JJ promulgation of Part 71, EPA plans to incorporate any additional changes to
Part 70 into the Part 71 regulations so that the two programs remain consistent.
      Although EPA has attempted to make these programs as consistent as possible, some
inherent differences exist.  These differences arise because the Part 71 program is a national
program implemented by EPA, while Part 70 is a program implemented by the States or
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local agencies incorporating unique State/local preferences and precedents. The more
significant variations are discussed below.
2.1.1  Early Application Due Date
       Under Part 70, EPA allowed State and local agencies to set individual schedules for
submittal of permit applications by industry that meet the needs of their specific programs.
The only stipulation was that all applications must be submitted within 1 year of program
approval.  Many States used 4 or 6 month schedules and many required application even
prior to EPA approval of the program.
       Sources subject to Part 71  must also generally submit a permit application within
1 year of becoming subject to the program.  However, EPA may choose to require
application submission before the  1-year deadline, provided that advance notice and
reasonable submission time is given.  At least 6-months notice must be given to sources prior
to the early application deadline.
2.1.2  Insignificant Activities and Emission Levels
       Under Part 70, State and local agencies must obtain EPA approval of activities and
emissions that are considered insignificant, and therefore, not to be included  in the permit
application.  State and local agencies have proposed a wide variety of insignificant activities
and emissions provisions in their Part 70 programs.
       In Part 71,  EPA's criteria  for insignificant emission levels are as follows:
       1.  For non-HAP regulated air pollutants:  no more than 2 tons per year (tpy),  based
on the unit's potential to emit.
       2.  For HAP's:  no more than 1,000 Ib/yr of any HAP from a single  emission  unit.
       While units or activities qualifying for insignificant treatment due to emission levels
must be reported in the permit application, only a listing is required that generally describes
the unit and its emissions.  Detailed information (e.g., emission estimates, work practices,
and monitoring) is not required in the permit application.
2.1.3  Permit Fees
       Under Part 70, State and local agencies developed fee schedules to cover the costs of
administering and implementing their operating permit programs.  EPA suggested a
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presumptive norm of $25 per ton of regulated pollutant emissions per year, which is adjusted
upward each year after 1989 according to increases in the Consumer Price Index.
       Under Phase I of Part 71, EPA will charge an initial fee of $32 per ton of regulated
pollutant emissions (including fugitives) per year.  If EPA finds it necessary to use contractor
assistance to administer the Part 71  program, the per ton fee will vary depending on the
extent of contractor involvement. The fee could exceed $70 per ton per year; although as in
Part 70, EPA will not charge for emissions of each regulated pollutant that the source emits
in excess of 4,000 tpy.  In Phase n of Part 71, an additional fee will be determined to cover
the cost of permit revisions when EPA finalizes a new streamlined permit revision process.
Part 71 sources are required to submit an initial fee calculation worksheet and fees to EPA.
However, EPA may suspend its fee collection  where a State receives full delegation and
collects adequate fees under State law to administer the delegated Part 71 program. For fully
delegated programs in which EPA has not suspended its fee collection,  the fee will be $24.
2.1.4  Enforcement
       Under Part 70, State and local agencies are required to obtain enforcement authority
to assess civil penalties of $10,000 per day per violation. Under Part 71, civil penalties are
significantly higher - $25,000 per day per violation.  Fines could be assessed for violation of
any applicable requirement; any permit condition; any fee or filing requirement; and any
duty to allow or carry out inspection, entry, or monitoring activities of any regulation or
orders issued by the permitting authority.

2.2  PROGRAM TRANSITION AND IMPLEMENTATION
       If an approved Part 70 program is not in place by November 15, 1995, EPA is
required by the Act to implement a  Federal Part 71 program for that area.  Although the lack
of an approved Part 70 program is the most likely reason that a Federal permit program
would be needed, several other situations could cause EPA  to impose a Part 71 program,
including the following:
       1.  EPA may find that a State or local agency is not adequately administering or
enforcing its approved Part 70 program.  In this case, EPA must impose a Part 71 program
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within 2 years after informing the permitting authority of the deficiency, if the deficiency is
not corrected.
      2.  A State or local agency that has received interim approval for its Part 70 program
may fail to obtain the required full program approval before the intermim approval expires.
In such a case, EPA is required to impose a Part 71 program.
      3.  If a permitting authority fails to act properly on an individual Part 70 permit (e.g.,
fails to respond to a timely permit objection or to reopen the permit for cause), EPA may
impose a Part  70 permit action or issue the source a Part 71 permit.
      4.  A Tribal area where a Part 70 operating permits program has not been granted full
or interim approval would be subject to Part 71.  The effective date of a Part 71 program for
a Tribal area is November 15, 1997.
      5.  Selected major  sources which are classified as outer continental shelf (OCS)
sources would be subject to Part 71.  If the source is  located beyond 25 miles of a State's
seaward boundaries, the source becomes subject to Part 71 30 days after promulgation.  If
the source is located within 25 miles of the seaward boundaries, the Part 71 program applies
if the program is being administered and enforced by EPA for the corresponding onshore
area.
      The following paragraphs discuss some transition issues that will arise when EPA
implements Part 71.
2.2.1 Public Notice of Part 71 Program
      If a Part 71 program is needed for a State (or  area within the State), EPA will publish
a notice in the Federal  Register informing the public of EPA's  decision to administer and
enforce the Part 71 program in the State (or area) and the effective date of the program. In
addition to the Federal  Register notice, EPA may publish notice in a newspaper of general
circulation within the area and will send a letter to the Governor informing him or her of the
effective date of the program.
2.2.2 Transition Plan for Initial Permit Issuance
      Once the effective date of the Part 71 program is established, Part 71 allows from
6 months to 1  year from that effective date for sources to submit permit applications to EPA,
although sources could always submit applications earlier.  States and industry have
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complained about the unnecessary detail that is required from sources in these application
forms, and EPA has consented to allow  States to develop supplemental guidance for filling
out the Part 71 application, based on the "White Paper" in Appendix A. In general, this
guidance clarifies the amount and level of information needed in permit applications and
provides considerable options for streamlining the application process.   EPA or delegate
agencies will follow the streamlining guidelines in the White Paper when implementing the
Part 71 program.  Part 71 requires that EPA issue permits for at least one-third of all
applications annually over a period of 3 years after the effective date of the Part 71 program.
If an application contains an early reduction demonstration under Section 112(i)(5) of the
Act, the permit will be issued within 12 months of receipt of a complete application.
2.2.3 Delegation of Part 71 Programs to State or Local Agencies
       The EPA recognizes that in some cases States may fail to receive Part 70 program
approval due to program flaws that are not related to their practicable ability to implement a
permitting program. In the preamble to the proposed  Part 71 regulation, EPA cites the
example of a Part 70 program that contains elements in it's enabling legislation or regulations
that prevent EPA from granting program approval, even though EPA may  be confident that
the State could adequately administer and enforce the program.  For this and similar cases,
the State or local agency may be delegated authority for the entire program or only a portion
of the program. If EPA chooses to delegate all or part of the program, EPA will define, as
part of the delegation agreement,  the respective roles in administering and  enforcing the
Part 71 program.  Note that delegation of a Part 71 program, in part or whole, to the State
or local agency does not constitute EPA approval of their Part 70 program.
2.2.4 Transition to Approved Part 70 Program
       For a State that submits a late Part 70 submittal to EPA such that EPA has not
approved or disapproved the submittal by the effective date of the final  Part 71 rule, Part 71
becomes automatically effective until the State's Part 70 program is approved by EPA.
However, sources are not obligated to submit applications to EPA until 12  months after the
effective date of the Part 71 program. Therefore, if the State's Part 70 program is  approved
shortly after Part 71 is effective, it is likely that sources will submit applications to the State
or local permitting authority rather than to EPA. Upon approval of the Part 70 program,
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EPA will suspend further action on applications for Part 71 permits.  Where appropriate,
applications received by EPA prior to approval of the Part 70 program will be forwarded to
the permitting authority after approval of the Part 70 program.
       If Part 71 permits  have already been issued to a source when a Part 70 program is
approved by EPA, EPA will continue to administer and enforce the Part 71 permit until it is
replaced by a Part 70 permit. If a Part 71 permit expires prior to the issuance of a Part 70
permit, the Part 71 permit will remain in effect until the Part 70 permit is issued or denied,
provided that a timely and complete application for permit renewal was submitted to the
permitting authority.
       The permitting authority may issue Part 70 permits for all sources with Part 71
permits in accordance with a permit issuance schedule  approved as part of their Part 70
program or may issue Part 70 permits at the expiration of the Part 71 permit.  Part 71
permits will contain a permit condition that states that the permit will automatically expire
upon issuance by the State of a Part 70 permit.
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                 3.0  TITLE V OBLIGATIONS AND APPLICABILITY

3.1  OBLIGATIONS UNDER TITLE V
       Under most circumstances, sources subject to Title V permitting requirements must
submit a permit application within 1 year of becoming subject to Part 71.  In some instances,
EPA will require an early application, in which case the agency will give a minimum
6 months notice prior to the early application deadline.  Under Section 71.5(a), the owner or
operator of a source subject to a Federal operating permit program is required to submit a
timely and complete permit application.  Also, Section 71.5(e) states that the applicant has a
duty to promptly supplement or correct information in the permit application upon becoming
aware of any failures, incorrect submittals, or new requirements.
3.1.1  Reporting Requirements
       Title V requires adherence to certain reporting requirements which relate primarily to:
(1) monitoring data, (2) compliance certification,  and (3) a schedule of compliance.  The
permit application must describe how the reporting will be prepared and identify a
responsible party. The reporting requirements are summarized below:
       •  Sources must submit reports  of any required monitoring at least every 6 months.
          All emissions exceedances must be clearly identified in the reports.
       •  Whenever a source deviates from permit requirements, including deviations
          attributable to  upset conditions, the source must promptly  report the deviations,
          the probable cause of such deviations,  and any corrective actions or preventive
          measures taken.  The final operating permit rule states, "[t]he permitting authority
          shall define  'prompt' in relation to the degree  and type of deviation likely to occur
          and the applicable requirements" [Section 70.6 (a)(3)(iii)(B)]. Part 71  and many
          State rules require  that deviations which result in an emissions increase must be
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          reported within 1 to 2 days.  All other deviations must be reported in semi-annual
          monitoring reports, unless more frequent reporting is required in the permit.
       •  If the source is required to submit a schedule of compliance as part of its permit
          application, the source must submit progress reports at least semiannually.  These
          progress reports must contain an updated schedule indicating when milestones
          were met.  The reports must also explain why any dates in  the original schedule
          of compliance were not or will not be met, as well as any additional corrective or
          preventive measures adopted.
       •  Sources must submit compliance certifications at least annually. These
          certifications must state the source's current compliance status with all applicable
          requirements and the methods used to determine compliance.  All compliance
          certifications must be signed by a "responsible" company official and verified for
          "truth, accuracy, and completeness."
       All records must be available for a period of at least 5 years from the date of
monitoring event, measurement, report,  or application. Upon request, the facility must
submit any of these records to the permitting authority.
3.1.2 Fees
       Title V allows EPA to charge sources annual fees whenever EPA is required to
administer a Part 71 program. The  annual fees are based on information that the facility
submits regarding actual emissions of each regulated pollutant. Each Part 71 source must
complete and submit an initial fee calculation worksheet.  The work sheets will be provided
by EPA.  Fee payment of the full amount must accompany each initial fee calculation work
sheet.  The fees are based on the source's actual emissions for the preceding calendar year
multiplied by the cost per ton factor. When determining the fee, emissions in excess of
4,000 tons per year of any regulated pollutant and insignificant sources should be excluded
from the fee calculation. Fees are charged on regulated pollutants only once so care should
be taken not to double count pollutants in more than one pollutant category.
       Due dates for the initial fee calculation work sheets and fees are as follows:
       1. If EPA implements a Part 71 program that  does not replace an approved Part 70
program, the due dates are as follows:
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           Type of Part 71 permit      Due date from Part 71 effective date
           Early deadline permits

           Phase n acid rain permits
             SO2
             NOX
           All other permits
By date specified in notice (specified
date will be within 12 months)
By January 1, 1996
By January 1, 1998
Within 12 months
       2.  If EPA withdraws approval of a Part 70 program and implements a Part 71
program, the due dates are as follows:
            SIC code
            0100 - 2499
            2500 - 2999
            3000 - 3999
            >3999
Due date from Part 71 effective date
Within 6 months
Within 7 months
Within 8 months
Within 9 months
       3.  If a Part 71 permit is issued following an EPA objection to a Part 70 permit, the
due date is 3 months after the date the Part 71 permit is issued.
       If the permitting authority determines that a source has completed the fee calculation
worksheet incorrectly, the permitting authority will bill the applicant for the corrected fee or
credit overpayments to the source's account.  If additional amounts are due, full payment
must be remitted within 30 days of the receipt of an invoice.  (Penalties of 50 percent of the
fee amount are assessed if the fee is not paid within 30 days of the payment due date and are
also assesssed  for certain underpayments.)  Note, that the permit application is considered
incomplete until all required fees are paid.  If an owner or operator believes that the assessed
fee is in error,  a written explanation of the alleged error must be provided to the permitting
authority along with the assessed fee.  The permitting authority has 90 days to determine
whether the assessed fee was in error and make appropriate adjustments.
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3.1.3  Enforcement and Penalty Issues
       A source must comply with all conditions of the Part 71 permit. Any permit
noncompliance constitutes a violation of the Act and may result in enforcement action,
including permit termination, revocation, or modification.  Permitting authorities have great
latitude to enforce any Title V violations, including those involving compliance certification.
Authorities may enter a facility at any time to inspect a source's permit documents, reports,
and other recordkeeping.  If violations are discovered, the permitting authority may
immediately assign fines and/or other penalties.
       Facilities are  also subject to civil and criminal penalties if a violation of a permit's
terms are discovered.  Civil penalties may be levied against a facility even if the infractions
are made unintentionally. For example, a facility may be penalized if a discrepancy with a
fee or filing requirement is discovered, if a source fails to adequately accommodate or assist
the permitting agency during an inspection, or for any action that fails to comply with a
specific regulation or order issued by the permitting authority.
       Criminal sanctions are levied against a facility if it knowingly violates permit-related
mandates.  Criminal activities include deliberately falsifying permit records and documents,
making false material statements in a permit application, and falsely representing a facility in
a certification, permit form, notice, or report.  Criminal penalties can also be issued against
person who knowingly tampers with or renders inaccurate  any monitoring device or method
required in a permit.

3.2 APPLICABILITY OF TITLE V
       One of the first steps towards meeting the Title V compliance requirements is
determining which sources are subject to the regulations. Most nonmajor sources are not
currently subject to Title V permit requirements.  EPA has proposed a rulemaking to  address
the nonmajor Section 112 sources subject to standards promulgated after July 21,  1992 (see
60 FR 64002), but has not yet addressed nonmajor Section 111 sources with standards
promulgated after July 21, 1992.  As a result, these Section 111 sources are subject to the
requirement of obtaining a Title V operating permit.  Nonmajor sources subject to
Section 111 or 112 standards promulgated prior to July 21, 1992 are currently not required
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to obtain a Title V operating permit.  The EPA has yet to determine whether such nonmajor
sources will be required to apply for a Title V operating permit.  Lastly, solid waste
incineration units are required to obtain a permit (Section  129(e) of the Act and
Section 71.3(b)(l) of the Part 71 rule).  EPA will decide whether to incorporate other
nonmajor sources into the Title V program before the year 2000.
3.2.1  Definitions
       Before discussing Title V applicability further, it is helpful to define several terms.
       3.2.1.1 Ozone Transport Regions.  An ozone transport region (OTR) is a geographic
region comprised of States and metropolitan areas that "share" responsibilities for controlling
ozone formation. The following is a list of States and areas that currently  comprise the
ozone transport region:
       •   Connecticut            •   New Jersey
       •   Delaware               •   New York
       •   Maine                 •   Pennsylvania
       •   Maryland               •   Rhode Island
       •   Massachusetts          •   Vermont
       •   New Hampshire        •   Consolidated Metropolitan Statistical Area (includes
                                      the District of Columbia)
       3.2.1.2 Stationary Source.  A stationary source is "any building, structure, facility,
or installation that emits or may emit any regulated air pollutant or any pollutant listed under
Section 112(b) or the Act."  The word "source" can also be used to define a piece of
equipment or machinery within a facility that emits pollution.
       3.2.1.3 Potential to Emit (PTE). The size of a source is determined by its "potential
to emit" an air pollutant.  PTE is the maximum capacity of a stationary source to emit any
air pollutant under its physical and operational design. Any physical or operational limitation
on the capacity of a source to emit an air pollutant, including air pollution  control equipment
and restrictions on hours of operation or on the type or amount of material combusted,
stored, or processed, is treated as part of its design if the  limitation is enforceable by the
Administrator. PTE is not explicitly defined in the Part 71 regulation, but the term is
discussed in the preamble of this regulation.  PTE is explicitly defined in Part 70 and in most
State rules.
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       3.2.1.4  Affected Source.  Affected sources are defined as stationary sources subject
to the acid rain provisions of Title IV (essentially fossil fuel-fired power plants).
Applicability regulations for affected sources are found in 40 CFR Section 72.6.
3.2.2 Who  Needs an Operating Permit?
       Initially, Part 71 regulations will primarily apply to major and affected stationary
sources.  Major source thresholds under the Part 71 permit program are provided in
Table 3-1.  The types of sources that fit the definition of major source are summarized
below:
       •   For hazardous air pollutants other than radionuclides, if the source emits (or has
          the potential to emit) 10 tons per year (tpy) or more of any single HAP, or 25 tpy
          or more of aggregate HAP's (including fugitive emissions), it is a "major" facility
          and requires a permit.  These pollutants are regulated under the NESHAP program
          established pursuant to Section 112 of the Act. (Note that EPA plans to develop
          different major source thresholds for certain highly toxic HAP's.)
       •   For sources in NAAQS nonattainment areas, the  "major source" emission rate
          threshold varies by pollutant and area classification (e.g.,  moderate, serious, and
          severe).  Sources having the potential to emit pollutants at rates equal to or greater
          than the values given in Table 3-1 must obtain an operating permit.
       •   Finally, any source having the potential to emit 100 tpy of any "air pollutant"
          qualifies as a major source.  In Section 302(g) of the Act,  this term is defined as
          follows:
             The term "air pollutant" means any air pollution agent or combination of
             such agents, including any physical, chemical, biological, radioactive
             (including source material, special nuclear material, and by-product
             material) substance or matter which is emitted into or otherwise enters the
             ambient air.  Such term  includes any precursors  to the formation of any air
             pollutant, to the extent the Administrator has  identified such precursor or
             precursors for the particular purpose for which the term "air pollutant" is
             used.
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          TABLE 3-1.  MAJOR SOURCE THRESHOLDS UNDER
                 PART 71 OPERATING PERMIT PROGRAM
THE



ATTAINMENT DESIGNATION AND POLLUTANT
Criteria Pollutants (Including Elemental Lead) in Attainment Areas
Criteria Pollutants (Including Elemental Lead) in Nonattainment
Areas:
Carbon Monoxide
Moderate
Serious
PM1Q
Moderate
Serious
Ozone (VOC, NO/)
Marginal and Moderate
Serious
Severe
Extreme
Ozone Transport Regions (VOC^
Severe
Extreme
All Other Areas
Sulfur Dioxide
Air Toxics (Including Lead Compounds, But Excluding Elemental
Leadc) in All Areas:
One Hazardous Air Pollutant (HAP)
Two or more HAP's
All Other Air Pollutants Not Listed Above
MAJOR
SOURCE
THRESHOLD
(tons/yr)
100



100
50

100
70

100
50
25
10

25
10
50
100


10
25
100
Exemptions from NOX requirements can be obtained pursuant to Section 182(f) of the
 Act.
^As stated in 57 FR 55622, November 25, 1992, the major stationary source threshold
 is specifically limited to VOC.
cSection 112 of the Act indicates that elemental lead is not a HAP.  Lead and lead
 compounds should be inventoried separately.
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3.2.3 Which Pollutants are Regulated?
       Regulated air pollutants include:
       •  Nitrogen oxides (NOX).
       •  Volatile organic compounds (VOC's).
       •  Criteria pollutants regulated under the NAAQS program, including ozone, carbon
          monoxide (CO), nitrogen dioxide (NOj), sulfur dioxides (SO2), PMjg (paniculate
          matter with an aerodynamic diameter less than or equal to  10 /tin), and lead.
       •  Any pollutant subject to a standard under the NSPS program.
       •  HAP's subject to standards promulgated under Section 112 of the Act or other
          requirements established under Section 112,  including Sections  112(g), (j), and (r)
          of the Act.
       •  Class I or n ozone-depleting substances or substitute  substances regulated under
          the stratospheric ozone protection program.
      The April 26, 1993 guidance memorandum from EPA's Lydia Wegman is currently
the best source of information on regulated air pollutants for the purposes  of Title V.  (A
copy of this memorandum is provided in Appendix A).  Since this memorandum was issued,
acetone and perchloroethylene have been added  to the list of organic compounds that are
excluded from the definition of VOC.
3.2.4 When Should Fugitive Emissions be Counted?
      Fugitive emissions are those emissions which could not reasonably  pass through a
stack, chimney, vent, or other functionally equivalent opening. If the source  falls within one
of the source  categories given in Table 3-2, its fugitive  emissions would be considered in
determining if it is a major source.  Fugitives must also be included in calculating HAP
emissions.
      The March 8, 1994 memorandum from EPA's Lydia Wegman is currently the best
source of information on the consideration of fugitive emissions  for major source
determinations. A copy of this memorandum is provided in Appendix A.
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 TABLE 3-2.  SOURCE CATEGORIES FOR WHICH FUGITIVE EMISSIONS MUST
                                BE CONSIDERED
  Carbon black plants (furnace process)
  Charcoal production plants
  Chemical process plants
  Coal cleaning plants (with thermal dryers)
  Coke oven batteries
  Fossil fuel boilers (or combinations  thereof) totaling more than 250 MMBtu/hr heat input
  Fossil fuel-fired steam electric plants of more than 250 MMBtu/hr heat input
  Fuel conversion plants
  Glass fiber processing plants
  Hydrofluoric, sulfuric, or nitric acid plants
  Iron and steel mills
  Kraft pulp mills
  Lime plants
  Municipal incinerators capable of charging more than 250 tons of refuse per day
  Petroleum refineries
  Petroleum  storage and transfer units with a total storage capacity exceeding
   300,000 barrels
  Phosphate rock processing plants
  Portland cement plants
  Primary aluminum ore reduction plants
  Primary copper smelters
  Primary lead smelters
  Primary zinc smelters
  Secondary metal production plants
  Sintering plants
  Sulfur recovery plants
  Taconite ore processing plants
  Any other stationary source category which, as of August 7,  1980, is being regulated
   under Section  111 or 112 of the Act3
Sections 111 and 112 are the NSPS and NESHAP programs, respectively.
 Source:  40 CFR Section 71.2.
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3.2.5  Insignificant Activities
       Insignificant activities must be included in the Title V applicability determination.
Applicability is based on all  emission units regardless of whether the units emit insignificant
levels of air pollutants.  A detailed discussion on insignificant activities is provided in
Section 5.1.8 of this notebook.
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   4.0  SYNTHETIC MINORS, POTENTIAL TO EMIT, AND TRANSITION POLICY

4.1 SYNTHETIC MINORS
      The "potential to emit" (PTE) is a useful term when defining "major sources and
synthetic minors." The current Part 70 definition of PTE provides that physical or
operational limits on a source's capacity to emit an air pollutant be considered part of the
source's design if the limitation is enforceable by the Administrator.  Many sources, for
instance, have a PTE above major source thresholds, but historically their actual emissions
have been below major source thresholds.  These sources, many of which are small
businesses, do not believe they should be affected by Title V.  Many States have developed
methods to create enforceable limits for these sources so that they will not be subject to
Title V.  Such sources are known as "synthetic minors."
      A definition of PTE for the purposes of the Phase I Part 71 rule was not included in
the rule in light of two recent court decisions (National Mining Association v. EPA, 59 F.3d
1351, D.C. Cir.,  July 21, 1995; and Chemical Manufacturers Ass'n v. EPA, No. 89-1514,
D.C. Cir.,  Sept. 15, 1995).  In the former case, the court implicitly accepted EPA's
argument that only "effective" state-issued controls should be cognizable in limiting PTE.
However, the court  found that EPA  had not adequately explained why only federally
enforceable measures should be considered in assessing the effectiveness of state-issued
controls. While the court rulings will require EPA to conduct additional rulemaking to
define what is legally and practicably enforceable,  the court did not question the validity of
current mechanisms for limiting the  PTE.  For this reason, the following discussion on
mechanisms for limiting the PTE is  still applicable in light of the recent court decisions.
After stakeholder meetings take place, EPA will conduct rulemaking to finalize the
enforceability requirements of the Part 71 rule.
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4.2 MECHANISMS TO LIMIT PTE
       The EPA has issued guidance on available methods to create Federally enforceable
limitations on PTE. One such guidance memo was signed by EPA's John Seitz on
January 25,  1995, and is available on the TTN bulletin board under Title V policies.  (See
Section 8.0 for a description of EPA's TTN bulletin board system.) The January 1996 "EPA
Interim Policy on Federal Enfbrceability Requirement for Limitations on Potential to Emit"
supplements this guidance based on the recent court decisions. Federally-enforceable limits
can be specified within the following five programs, permits, or rules:
       1.  Federally-enforceable State operating permit programs (FESOP's);
       2.  SIP general permits;
       3.  Prohibitory rules;
       4.  Preconstruction permits; and
       5.  Source specific SIP revisions.
Limits established under these programs, permits, or rules must be incorporated into the SIP,
and in some instances through Section 112(1), before being deemed Federally enforceable.
Limitations in Title V permits are also Federally enforceable.  Each of the approaches for
limiting PTE is described further below.

       Traditionally, EPA has not considered State operating permits to be Federally
enforceable. Although this  issue is debatable since many State operating permit programs
have been approved for incorporation into the SIP, EPA has generally enforced SIP limits
and new source review (NSR) permits,  but not State operating permits.  The preamble to the
June 28, 1989, Federal Register notice for 40 CFR Parts 51 and 52 provides criteria for an
operating permits program under which permits would be considered Federally enforceable.
First, the State operating permits program must be approved into the SIP. Second, the rule
must impose a legal obligation that permittees adhere to the terms and limits of the permit;
permits which do not conform to all of the operating permit program criteria would be
deemed not Federally enforceable by EPA.  Third, the rule must require that all emission
limitations, controls, and other requirements  be at least as stringent as any other applicable
requirement contained in the SIP or enforceable under the SIP (e.g., NSPS and NESHAP
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requirements).  Fourth, the limitations, controls, and requirements in the permits must be
permanent, quantifiable, and practically enforceable.  Finally, the permit applications must
be subject to public review before the issuance of the final permit.  The State must also
provide EPA with a copy  of the draft and final permit.  States may choose to subject only
certain types or classes of permits to these requirements (e.g., only synthetic minors).
Permits not subject to all of the above requirements would be State enforceable only.
4.2.2 SIP General Permits
       There are two ways States can use general permits through the SIP process.  One
method is to develop a general permit for a specific source category and request approval by
EPA of the general permit into the SIP.  While the SIP process itself would require public
participation, sources would then apply for coverage under the general permit without further
public participation or EPA review.  A second method is for the State to develop a general
permitting program and have the program approved into the SIP.  A State could develop a
general permit rule using language similar to that found at 40 CFR 70.6(d), General
Permitting.  Once the public process has been completed and the general permit rule is
finalized, the State could draft general permits, but would be required to subject the general
permits to public review.  When  the public review process has been completed and a general
permit is finalized, the State could grant  or deny source coverage under the general permit
without further public participation.  General permits would usually be used for less complex
sources such as dry cleaners, wood finishers, asphalt plants, and electroplaters.
4.2.3 Prohibitory Rule
       A prohibitory or "exclusionary" rule limits the emissions and/or operations of a large
category of sources. For  instance, the rule may state that all sources whose actual emissions
are 50 percent  of the major source threshold may be covered by the rule. The rule, which
would provide  a range of  recordkeeping, monitoring,  and reporting requirements for a broad
range of sources, provides a convenient way to remove a large number of sources from
Title V coverage.  For instance, while California has predicted that perhaps 50,000 sources
would potentially be subject to Title V, their prohibitory rule will probably bring the number
of actual Title V sources down to around 4,000.
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       Some regulators believe that the upper threshold for coverage under prohibitory rules
should be around 50 percent of the major source threshold. However, a State may elect to
use higher thresholds, depending on each State's circumstances and how actual emissions are
to be calculated.
4.2.4 Preconstruction Permit
       Major and minor NSR permits are Federally enforceable if the program is approved
in the SIP.  The criteria that a State new source review permitting program must meet to be
approved into the SIP is found at 40 CFR Part 51, Subpart I.
4.2.5 Source Specific SIP Revisions
       Source specific limits or permits approved into the SIP can also be used to limit the
PTE. This has  also has been referred to as "permit by rule."  This method, which is very
similar to a SIP general permit,  involves the adoption of a source specific rule that is
approved into the SIP.  The rule would provide emission and operational limits as  well as
specific monitoring, recordkeeping, and reporting requirements for that specific category.
4.2.6 Limiting HAP Emissions
       For controlling HAP emissions, Federally-enforceable limits on criteria pollutants
could be used to create Federally-enforceable limits on HAP's under certain circumstances.
Examples include limits on hours of operation, amount of material used, or production limits
in Federally enforceable operating permits or NSR permits. Additionally, if the VOC limit
in a permit addresses a particular HAP, or a permit has a HAP limit as a means to limit
VOC emissions, both would be Federally-enforceable mechanisms.  However, a limit on
VOC emissions alone may not be a Federally-enforceable limit for a particular HAP.  For
cases where  a HAP is not defined as a VOC (e.g., methylene chloride), the State may need
to seek approval of the operating permit or NSR program through Section 112(1) of the Act.
Therefore, as States submit FESOP programs to EPA, EPA could approve the programs
under Sections 110 and 112 of the Act to ensure that permits issued  under these programs
would limit both criteria pollutants as well as HAP's.
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4.3 EPA TRANSITIONAL GUIDANCE FOR SYNTHETIC MINORS
       The January 25, 1995 EPA guidance memo referenced earlier in this section provides
a transitional period to allow States time to develop appropriate mechanisms to create
synthetic minors.  For a 2-year period beginning January 25, 1994, the following provisions
apply:
       1.  Sources whose actual emissions are below 50 percent of major source thresholds
must maintain actual emissions for every consecutive 12-month period (beginning in
January 1994) at levels that do not exceed 50 percent of threshold for every regulated
pollutant. A 12-month period is defined as a period of 12 consecutive months determined on
a rolling basis with a new 12-month period beginning on the first day of each calendar
month. Sources must maintain records onsite for the entire transitional period.  No other
recordkeeping or reporting is required.
       2. Sources whose actual emissions exceed the 50 percent threshold could use
restrictions contained in State permits, if practically enforceable, to limit PTE.
       Providing such a transitional period is optional to the States.   A State should work
with its EPA Regional Office to determine how to proceed during the transitional period.
EPA's transitional guidance  basically represents an enforcement discretional policy in which
the State and EPA would not enforce against  sources for not having applied for a Title V
permit during the 2-year period if the source  meets the above criteria. During the 2-year
period, the State would either have to issue Federally-enforceable permits or general permits
to sources to limit their PTE on a permanent  basis  or have sources covered under an EPA
approved prohibitory rule.  In recognition of  the absence in some States of suitable Federally
enforceable mechanisms to limit PTE applicable to sources that might otherwise be subject to
Section 112 or Title V, EPA's interim PTE policy provides for the consideration of State-
enforceable limits as a gap-filling measure during a transition period  that extends until
January 1997. In addition, the policy provides that sources which maintain their emissions at
levels that do  not exceed 50 percent of any applicable major source threshold are not treated
as major sources and do  not need a permit to limit PTE, so long as they maintain adequate
records to demonstrate that the 50 percent level is not exceeded.
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4.4  PRACTICAL ENFORCEABILITY
       To be practically enforceable, the permit term must be a technically accurate
limitation and identify the portion of the source subject to the limit.  In addition, the term
must include a time period for the limit, preferably as short-term as appropriate.  Also, there
must be a method to determine compliance, including appropriate monitoring, recordkeeping,
and reporting methods. In addition, if the State is using a prohibitory rule or general permit
that applies to a category of sources or a broad range of sources, the rule must identify the
types and categories of sources covered.  Where coverage is optional, the rule must require
that sources  provide notice of election to be covered under the rule or general permit.
Additionally, the rule must specify the enforcement consequences of violations to the rule
(including the consequences of not meeting the coverage criteria).
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                 5.0 PERMIT APPLICATION STEPS AND CONTENT

       This section is divided into three major subsections.  The first subsection provides
information that will be helpful during the preparation of permit applications.  The next
subsection explains the permit application process from initial contact with the regulatory
authority to the final permit issuance.  The final subsection discusses the Title V permit
content.

5.1  PERMIT APPLICATION ELEMENTS
       The overall permit development process can be seen as having 11 basic steps, as
proposed in 11 Suggested Steps to Prepare for a Successful Operating Permit (Gale F.
Hoffnagle,  Stephen Walata, and John L. Hanisch, Hydrocarbon Processing, April 1993).
These steps are listed below.
        1.  Identify each source of emissions.
        2.  Determine actual and potential emissions.
        3.  Determine whether the Federal operating permit requirement applies to your
           facility.
        4.  Determine applicable emission limits and identify all Federally applicable
           limitations.
        5.  Determine whether emissions comply with all applicable limitations.
        6.  If necessary,  propose a compliance program.
        7.  Propose measurement, recordkeeping, and reporting methods.
        8.  Combine each source in to a permit or permits.
        9.  Select flexible operating scenarios.
       10.  Prepare a draft operating permit.
       11.  Calculate fees, then sign and file the application.
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       The importance of the emission inventory process is emphasized by the fact that this
entire process begins with and depends heavily on preparation of a clear and detailed
emission inventory for the entire facility.  The data prepared in Steps 1 and 2 are critical in
determining the need for a Title V permit (Step 3), assessment of compliance with applicable
regulations (Step 5), development of operating scenarios (Step 9), preparation of the permit
itself (Step 10), and calculation of emissions-based annual permit fees (Step 11).
5.1.1 Permit Application Streamlining
       Due to concerns raised within the regulatory community about the potential burdens
imposed with collecting, documenting, and verifying the information required under the
Title V program, EPA has issued further guidance on streamlining Title V. The July 10,
1995 memorandum from EPA's Lydia N. Wegman (see Appendix A) states that industry is
allowed to:
       •  Provide emissions descriptions, and not emissions estimates,  for emissions not
          regulated at the source,  unless such estimates are needed for other purposes such
          as calculating permit fees;
       •  Submit checklists, rather than emission descriptions, for insignificant activities
          based on size/production rate and for risk management plans potentially owed
          under Section 112(r);
       •  Provide citations for applicable requirements, with qualitative descriptions for each
          emissions unit, and for prior new  source review (NSR) permits;
       •  Exclude certain trivial and short-term activities from permit applications;
       •  Provide group treatment for activities subject to certain generally-applicable
          requirements;
       •  Certify compliance status without requiring reconsideration of previous
          applicability decisions;
       •  Use the Part 70 permit process to identify environmentally significant terms of
          NSR permits,  which should be incorporated into the Part 70  permit as Federally-
          enforceable terms; and
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       •  Submit tons per year estimates only where meaningful to do so and not, for
          example, for Section 112(r)-only pollutants; such estimates should be based on
          generally-available information rather than on new studies or testing.
       The remainder of this section is developed with these guidelines in mind.  The next
group of sections elaborate on some of the elements one will encounter during the Part 71
permit application process. Detailed instructions for completing forms can be found in
EPA's Instruction Manual for Permit Application Forms - 40 CFR Pan 71 Federal Operating
Permits Program (March 1995) or in the instruction forms provided by the EPA-delegated
authority.
5.1.2  Minimum Permit Application Elements
       The minimum requirements for information submitted in the permit application are
detailed in Table 5-1. To be deemed complete, an application must provide sufficient
information to allow the permitting authority to begin processing the application.  In other
words, "complete" means administratively (not technically) complete.  This was the original
intent of regulations.  Based on the preamble discussion concerning the proposed revisions to
Section 70.5(a)(2), an application is complete if it contains:
       •  A statement acknowledging the applicability of the requirements, and
       •  An acceptable schedule for  submitting the more detailed information necessary to
          define compliance.
       Based on this same preamble discussion, a two-phase application process is possible
for certain sources.  More specifically,
       •  Sources scheduled for permitting in years two and three of the transition period
          could submit less detailed applications than sources scheduled for permitting in the
          first year.
       •  Information submitted in the first phase must meet the minimum requirements of
          Section 70.5(c).
       •  Information submitted by the second phase must be sufficient to allow  permit
          issuance consistent with Sections 70.7 and 70.8.
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                        TABLE 5-1. MINIMUM PERMIT APPLICATION REQUIREMENTS
•  General Company Information (including facility's name and
   address, owner's name and agent, and the facility contact person)

•  Description of the Facility's Process and Products (including
   the facility's SIC code)

•  Description of All Emission Points

•  Inventory of Emissions (including fugitive emissions from all
   sources and for all regulated air pollutants; pollutants for which
   the facility is classified as a major source; and all emissions of
   regulated pollutants, whether or not those emissions caused the
   source to be major)

•  Emission Rates and Limits (in some cases, permit may establish
   alternative or equivalent emissions limits to those in the SIP)

•  Description of Fuels (including how they are used and a
   description of raw  materials)

•  Description of All Air Pollution Control and Compliance
   Monitoring Devices or Activities (including requirements and
   methods for emissions testing, and a brief description of
   operation, maintenance, and quality assurance procedures)
List of All Applicable State and Federal Air Pollution Control
Requirements (including those promulgated at the time of
application that will become effective during the term of the
permit)

Compliance Plan for All Sources Within the Facility
Regulated Under the Permit Program

Description of Production Rates, Operating Schedules, and
Any Operating Limitation or Restrictions on Work Practices
That Affect Emissions of Regulated Air Pollutants

Certification of Compliance with All Applicable Requirements
(including a schedule for submission of at least annual
compliance certifications during the permit term)

Description of Methods Used to Determine Compliance
(including monitoring,  recordkeeping, reporting, and testing
methods)

Information on Alternative Operating Scenarios Defined
Under "Operational Flexibility" Provisions (see Section 6.0 for
a detailed explanation of Operational Flexibility)

Supporting Calculations for Submitted  Information
NOTE:  If the source is not in compliance, the application must provide a plan and schedule for future compliance. A progress report must
be submitted at least every 6 months detailing the progress towards compliance.  Sources that are in compliance also must submit a plan;
however, this plan need only contain a statement that the source will continue to comply.

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While the Part 70 revisions have not yet been finalized, this two-phase application submittal
is addressed in the White Paper,  and the process may be acceptable to an EPA Regional
Office or a delegated authority.
5.1.3 Emissions Reporting Categories
      When preparing an emission estimate, it is necessary to classify not only the type of
pollutant emitted, but also the means of release to the atmosphere.  Release mechanisms are
usually classified into three categories:  process emissions, fugitive emissions, and process
fugitive emissions.  Process emissions are emissions from sources where an enclosure,
collection system, ducting system and/or stack (with or without an emission control device)
are hi place for a process.  Process emissions represent emissions from process equipment
(other than leaks) where the emissions can be captured and directed through a controlled  or
uncontrolled stack for release into the atmosphere. Fugitive emissions are emissions from
other sources that are technically infeasible to collect and control (e.g., storage piles, waste
water retention ponds, etc.).   Process fugitive emissions occur as leaks from process
equipment such as compressors, pump seals, valves, flanges, product sampling systems,
pressure relief devices, and open-ended lines. Emissions from the process that are not
caught by the capture system are also classified as process fugitive emissions.  These
definitions are important because emission factors and other estimation methods are often
specific to the type of release.
       The emissions estimate reporting system used by most State and local air pollution
control agencies groups emission sources  into one of three categories and maintains emission-
related data in a different format for each. The plant level category is used to consolidate
data for an entire plant or facility.  A plant may contain one or many pollutant-emitting
sources.  The point level category is used to maintain emission-related information for single
stacks or vents individually large enough to be considered point sources under the Title V
     Note that EPA does not require that sources perform an emissions inventory for Title V
purposes. However, the following discussion is provided as a useful tool for sources in
determining emissions  and applicability to various federal requirements and may be useful to
sources in determining their fees.
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cutoffs described.  The emission unit level category typically contains data for a single
process or unit of operation.
       The plant level reporting used by most air pollution control agencies generally
requires that the facility provide certain data which apply to the facility as a whole.  Such
data include number of employees and the Standard Industrial Classification (SIC) code
designation for the plant.  A plant usually has only one SIC denoting the principal economic
activity of the facility.  For the purpose of clearly  identifying and tracking emissions data,
each plant is generally assigned a plant (or "facility") name and number.  The plant is also
identified by geographic or jurisdictional descriptors  such as air quality control region,
county, address, and UTM grid coordinates (or latitude/longitude) that identify coterminous
locations. An owner or operator engaged in one or more related activities is also identified.
       Regulatory agencies generally maintain individual emission-related records at the point
level.  Point level reporting occurs with specific data for emissions points (typically stacks)
which require more detailed information than possible at the plant level.  Such data include
emission-related and modeling information such as stack height of the emission point,
diameter of the stack,  emission rate and method of determination, gas exit velocity from the
stack, gas temperature, and operating schedule. For fugitive sources, stack parameters are
not relevant, but basic parameters such as dimensions, height, and concentration apply.
       For emission unit level reporting,  each process within a plant is identified by an EPA
source classification code (SCC).  For point sources, reporting guidelines may require that a
plant identify, for each process or operation (designated by SCC code), the periods of
process operation  (daily, weekly, monthly, and annually);  operating  rate data, including
actual, maximum, and design operating rate or capacity; fuel use and property  data (ash,
sulfur, trace elements, heat content, etc.); all pollution control equipment and associated
control efficiencies (measured or design); and emissions rates.
5.1.4  Source Identification System
       The first stage of the data collection process is the  development of a comprehensive
and logical source identification system which will allow the collected data, process
descriptions, and other information to be  properly  referenced and interrelated, reflecting the
plant/point/process distinctions and source types previously outlined.  A plant-wide emission
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source summary table based on these identifiers and their relationships can be used to initiate
and organize the data collection process, enabling the preparers to establish a plant- or
facility-specific identification system for all of the emission sources and release points before
much effort is spent on collecting data.  A typical hierarchy for source data identifiers would
include a process group identification name (PGN), process identification names (PINs),
process component identification names (PCNs), emission point identification names (EPNs),
and control equipment identification names  (CINs).  These source data identifiers are
described below.
       The Process Group Name (PGN) should be a common name which will help a facility
track production information or can be used to represent a group of processes for which
emissions will be aggregated.
       The Process Identification Name (PIN) is a unique identifier (unique to the entire
facility) which should remain with the process throughout the inventory process; a typical
PIN system uses a three digit building number followed by a three-digit process identifier.
For example, Ink Press 2 in Building 10 could have PIN No. 010-002.  The Process
Common Name for PIN can be the common name associated with a process.  This will be
used to help search the inventory database for the process of interest.
       The Process Component Identification Name (PCN) should be the common name
associated with a process component.  A component can be defined as any part of a process
for which emissions will be quantified separately from other parts of the process, such as the
vented emissions and fugitive emissions from a  single process.
       The Emission Point Identification Name (EPN) is  a unique identifier for each
emission point within the facility.  A typically EPN  system uses the building number, a one-
digit  "vent type" (V  = exhaust vent; F =  fugitive; I = intake vent), and a three-digit
emission point.  For example, exhaust vent 44 on Building 10  would be EPN 010V-044.
       The Control Equipment Identification Name fCIN) is a  unique alphanumeric code
name used  to identify pollution control equipment.
       It is important that the identifiers used for these items correlate exactly to the relevant
parts of the Title V application.  Therefore, the inventory preparer should consult the current
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Title V application form to verify the length and format of the required identifiers and adjust
any of these definitions accordingly.
5.1.5  Emission Estimation Principles
       This section provides basic information on the common methods for estimating
emissions from sources found at industrial facilities, including estimation and speciation
procedures as well as a number of computerized emission estimation tools.
       5.1.5.1  Emission Estimation Methods.  The primary emission estimation methods
typically used in point source inventories are described below.
       Continuous emissions monitoring (CENT) involves any monitoring effort which
"continuously" measures (i.e., measures with very short averaging times) and records
emissions.  In addition to measuring and recording actual emissions during the time of
monitor operation, CEM data can be used to estimate emissions for different operating
periods and longer averaging times.
       Source tests are short-term tests used to collect emissions data which can then be
extrapolated to estimate long-term emissions from the same or similar sources. Uncertainties
arise when source test results are used to estimate emissions under process conditions which
differ from those under which the test  was performed.
       Material balance or mass balance is a method for estimating emissions which attempts
to account for all of the inputs and outputs of a given pollutant.  If inputs of a material to a
given process are known, and all outputs except for air emissions can be reasonably well
quantified,  then the remainder can be assumed to be an estimate of the amount lost to the
atmosphere for the process.
       Emission factors are ratios which relate emissions of a pollutant to an activity level at
a plant that can be easily measured,  such as an amount of material processed or an amount of
fuel used.  Given an emission factor and a known activity level, a simple multiplication
yields an estimate of the emissions.  Emission factors are developed from separate facilities
within an industry category; they represent "typical" values for an industry, but do not
necessarily represent a specific source.  Published emission factors are available in numerous
sources, but the primary source is EPA's A Compilation of Air Pollutant Emission Factors
(AP-42).
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       Process-specific empirical relationships are similar to emission factors in that they
relate emissions to easily identifiable process parameters.  However, these relationships are
more detailed equations which relate emissions to several variables at once, rather than to a
simple ratio.  An example is the estimate for VOC emissions from storage tanks, which is
based on tank size, air temperature, and vapor pressure. AP-42 contains several of these
empirical relationships.
       Engineering estimate is a term commonly applied to the best approximation which  can
be made when the methods previously described are not possible.  This estimation is usually
made by an engineer familiar with the specific process and is based on whatever knowledge
may be available.
       Theoretically, plants needing emissions estimates could use CEM to make actual
emissions measurements at very short time intervals.  Some plants currently do this.  CEMS
concentration data can be easily converted to mass emission rate estimates provided that air
volume through the monitor is also known. However, in cases  where CEMS data are
unavailable, another method must be used to estimate emissions.  The three principal
methods for estimating emissions are sources tests, material balances, and emission factors.
The most reliable estimation of emissions is determined using source test data; but, because
of the time and expense involved in source testing, material balances and/or the use of
emission factors to estimate process emissions are more often employed.  EPA assigns
emission factor ratings based  on the criteria for determining data quality and emission factor
ratings as required in the document Technical Procedures for Developing AP-42 Emission
Factors and Preparing AP-42 Sections.  If none of these methods can be employed for a
specific process, an approximation or engineering estimate based on available process,
physical, chemical, and emission knowledge may be  used.
       The following hierarchy should typically be considered for deciding on an appropriate
estimation method for an emission source:
       •  Measured Emissions Data are the preferred source of information for developing
          emissions estimates.  They provide the most accurate estimation of emissions
          under actual operating conditions at the  facility; however, care must be taken when
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          extrapolating measured emissions at normal operating conditions to maximum
          operating conditions.
       •  Emission Factors (e.g., AP-42 emission factors) are used when actual
          measurement data are not available. Care must be taken to ensure that the
          emission factor selected is appropriate for the source being evaluated.
       •  Mass Balances can often be used when an appropriate emission factor cannot be
          identified or developed from process data.  The mass balance calculation assumes
          that any material present at the beginning of the process which is not accounted for
          at the end of the process is emitted as an air pollutant.
       •  Engineering Calculations  are used when emissions cannot be quantified directly.
          These calculations are based on the principles of chemistry and physics, such as
          the Ideal Gas Law.
       Computer models which incorporate one or more of the above methods may also be
considered where appropriate.  The  advantage to using computer modeling techniques is that
they can handle very complex algorithms and make the calculations manageable in a
cost-effective manner.  However, care must be taken that the appropriate model and input
parameters are selected for the source being evaluated.
       5.1.5.2  Available Emission Estimation Tools. This section identifies some of the
principal technical resources for obtaining emission factors, calculating emissions, and
evaluating plant processes.  Any emission estimating tools should be used with discretion.
Actual emissions from individual sources may vary considerably from  values estimated using
emission and speciation factors.
       5.1.5.2.1 Access to EPA emission estimation documents, systems,  and databases.
Most of the EPA materials described in this section are available through the EPA
Clearinghouse for Inventories and Emission Factors Bulletin Board System (CHIEF BBS) or
on Air CHIEF CD-ROM.  Any user accessing the CHIEF BBS can download AP-42
chapters, Locating and Estimating documents, XATEF, SPECIATE, TANKS, SIMS,  the
AIRS Facility Subsystem Emission Factors (AFSEF) database,  and many more tools for
estimating emissions.  The  CHIEF BBS is a subpart of EPA's Office of Air Quality Planning
and Standards (OAQPS) technology  transfer network (TTN).  Access to the CHIEF BBS
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requires a personal computer with communications software and hardware to connect to the
EPA system (see Section 8.0 for more information).
      The Air CHIEF CD-ROM can also be used to access many of EPA's documents and
databases.  Users need an IBM™ compatible personal computer with an EGA or VGA
monitor, MS-DOS version 3.0 or later, 640 KB of free RAM, 2 MB of expanded memory, a
CD-ROM drive and interface card, and MS-DOS CD-ROM extensions.  The Air CHIEF
CD-ROM is updated annually.
      Fax CHIEF offers AP-42 sections for immediate delivery by facsimile (fax) machine.
A fax machine with a phone headset is required equipment for using FAX CHIEF.  This
ensures  that your fax phone line can transmit the  signal indicating that it is ready to receive
the CHIEF fax. To connect with Fax CHIEF,  dial (919) 541-5626 or (919) 541-0548 and
follow the directions.  Only two documents may be requested per call.  Many of the
documents are quite lengthy.
      5.1.5.2.2 EPA documents containing emission estimation methods and data.  There
are a number of existing sets of emission estimation  methods, data, and examples contained
in EPA  documents related to industrial regulations and control technologies. Three of these
documents are described briefly below.  It is recommended that inventory preparers for these
particular industries obtain the EPA documents which contain the full text of these examples
and additional information which would be required to apply these methods in a specific
case.  These are current EPA documents which can be obtained from the EPA library/
document distribution center at (919) 541-2777, through the National Technical Information
Service  (NTIS) at 1-800-555-6847, or by downloading from the EPA Chief Bulletin Board
System  (BBS).  For other source categories of interest, the EPA library can perform
keyword searches for all EPA publications to locate any relevant documents.
      Protocol for Equipment Leak Emission Estimates. EPA-453/R-93-026. Office of Air
Quality  Planning and Standards. Research Triangle Park. NC. June 1993. This document
includes methods and data for estimating emissions and control efficiencies for leak detection
programs for leaking valves,  flanges, pumps, and other pieces of process equipment hi
synthetic organic chemical manufacturing industry plants, refineries, and natural gas plants.
Alternative methods include an average emission factor approach,  screening ranges approach,
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and two correlation approaches (EPA and unit-specific). Appendix A of the protocol
document includes full examples of the implementation of each of these approaches.  These
methods are documented in three files available via the CHIEF BBS.
       Control Techniques Guidelines for Batch Processes. EPA-450/2-78-029. Office of Air
Quality Planning and Standards. Research Triangle Park. NC. February 1978: and Control of
Volatile Organic Compound Emissions for Batch Processes - Alternative control Techniques
Information Document. EPA-453/R-93-017. Office of Air Quality Planning and Standards.
Research Triangle Park. NC. February 1994.  These documents include methods and data for
estimating emissions and control efficiencies for batch processes in all industries, but focuses
on the following six industries: plastic materials and resins, Pharmaceuticals, gum and wood
chemicals, cyclic crudes and intermediates, industrial organic chemicals, and agricultural
chemicals.  It should be noted that there are differences between these two documents, and
discussions are continuing on developing a workable transition plan.  Specific examples of
emission estimation for various unit operations in typical batch processes are given,
including:
       •  Vapor displacement of a single component liquid
       •  Vapor displacement of a homogenous mixture
       •  Tank/reactor heatup losses
       •  Empty tank and reactor purging
       •  Filled tank and reactor purging
       •  Sparging volatilization
       •  Vacuum dryer emissions
       •  Atmospheric dryer emissions
       •  Vessel depressurization
       •  Emissions from a steam ejector
       •  Emissions from equipment  leaks
       5.1.5.2.3 EPA emission estimation systems.  EPA's computerized emission
estimation tools include several software packages that calculate emission estimates from
process inputs provided by the user:  TANKS for volatile organic liquid storage tanks, the
Surface Impoundment Modeling System  (SIMS),  and LANDFILL, which estimates air
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emissions of criteria pollutants and HAPs from landfills.  These are all available for
download from the CHIEF BBS.
       TANKS contains the newly revised storage tank equations contained in the new
AP-42.  The system calculates monthly and annual VOC and toxic air emissions for
horizontal and vertical fixed roof tanks, internal and external floating roof tanks, and
underground storage tanks, incorporating the latest American Petroleum Institute (API)
equations.  The TANKS User's Manual is also available on the CHIEF BBS.
       For  VOC emissions from wastewater treatment, SIMS is available.  The SIMS system
is based on treatment, storage, and disposal facility (TSDF) models and VOC emission
models and uses the CHEMDAT7 database for calculations.  CHEMDAT7 is a spreadsheet
program, with a 700-compound database, that can be run independently from SIMS.
CHEMDAT7 has models for disposal impoundments, closed landfills, land treatment
facilities, and aeration and non-aeration impoundment processes.
       LANDFILL estimates air emissions of criteria pollutants and HAPs from landfills.
With a menu-driven database and worksheet, it can calculate emissions up to 50 years
beyond landfill closure. Models for estimating VOC emissions from storage tanks and PMjQ
fugitive dust emissions are also available and may be accessed via the CHIEF BBS.
       5.1.5.2.4 EPA emission estimation databases.  The Factor Information and Retrieval
Data System (FIRE) is a personal computer program containing EPA's recommended criteria
and HAP emission estimation factors. FIRE includes information about industries and their
emitting processes, the chemicals  emitted, and the emission factors themselves.  FIRE is a
user-friendly, menu-driven system with an interface patterned after Microsoft Windows.
Users can browse through records in the database or select specific emission factors.  FIRE
is distributed on a 3.5" diskette, free to government agencies.  Other requesters must
purchase FIRE or download it from the CHIEF BBS.  Users will need an IBM-compatible
PC that runs MS-DOS version 3.3 or later, with fixed disk having at least 10 MB of
available storage, 512 KB of free RAM, and a VGA color monitor. MS DOS 5.0 or later is
recommended. Contact Info CHIEF at (919) 541-5285 for more information.
       The VOC/PM Speciation Database Management System (SPECIATE) is a
clearinghouse for speciation factors for both VOCs and PM.  Speciation factors are used to
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derive emission estimates of air species from factors or estimates of total VOC or PM.  Each
profile, as defined by SCC, lists the elements or compounds identified as being emitted by a
source category or process according to the weight percent of each compound as a function
of total VOC or PM emissions.  Each individual pollutant speciation factor within a profile
can be multiplied by a VOC or PM emission factor (or emission rate) to produce an
estimated compound-specific emission factor.  However, the lists of compounds attributed to
a source category provided in  SPECIATE will not necessarily be complete. Because this
system represents a compilation from available literature for use in EPA's  photochemical
modeling efforts, it will not address toxic compounds with any degree of completeness or
accuracy.
      SPECIATE is designed to search for speciation factors based on a user-provided SCC,
pollutant name, or a source category description. The SPECIATE PM profiles include three
particle size range distributions and total measured PM data for each species.  The
SPECIATE database is updated annually and is accompanied  by a user's manual. The
SPECIATE database is not published in paper due to the size of the database, but is available
on 5.25" high density diskette.
      5.1.5.3  Emission Estimation Examples.  To  illustrate the approach taken to estimate
emissions from industrial processes, the following two examples are presented, both
involving batch processes. These examples are derived from Appendix C  of Control of
Volatile  Organic Compound Emissions for Batch Processes - Alternative Control Techniques
Information Document, EPA-453/R-93-017, February 1994.
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               Example 1. Vapor displacement of a homogenous
                      (miscible) mixture in a batch process

      A 50-50 volume percent solvent mixture of heptane and toluene is charged to a
surge tank at the rate of 300 gal/min.  A total of 1,500 gal is charged.  The mixture
temperature is 20°C. Calculate emission rates for both mixture components.

      STEP  1.  Define conditions of the displaced gas:

                    1.     Temperature of displaced gas:  20°C;
                    2.     Pressure  = 1  atm (14.7 psia, 760 mmHg); and
                    3.     Rate of displacement = 300 gal/min.

      STEP 2.  Calculate vapor phase mole fraction:
voc
Heptane
Toluene
Molecular
weight,
Ib/lbmole
100
92
Density,
Ib/gal
5.7
7.3
Gallons
charged
750
750
Pounds
4,275
5,475
TOTAL
Ibmoles
42.8
59.5
102.3
*i
0.42
0.58
1.0
                     P* heptane @ 20°C (68°F) = 0.7 psia
                     P* toluene @ 20°C (68°F) = 0.4 psia
                   Heptane:   P-42**7 Psk>   = 0.020 = y
                             (14.7 psia) heptane
                    Toluene:   (0^X0.4 psia)   = OQ16 =
                             (14.7 psia) toluene
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 STEP 3.  Calculate emission rate:
                ER
heptane
                                      RT
ER
   toluene
(0.020) (300 gal/min) (1 atm) (100 Ib/lbmol)
ft3
7.48 gal
                         1.3144 atm ftj/lbmol K) (293K)
                     ER.  *    = 0.21 Ib/min
                       Kheptane
                ER
                   toluene
ER
   toluene
(0.016) (300 gal/min) (1 atm) (92 Ib/lbmol)

1.3144 atm ft3
Ibmol K
ft3
7.48 gal
(293K)
                          ,      =0.15 Ib/min
                        toluene



 Therefore, total emissions for the event are:



                Heptane:  (0.21 lb/min)(5 min) = 1 Ib




              Toluene: (0.15 lb/min)(5  min) = 0.75 Ib
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                 Example 2.  Batch process tank/reactor heatup losses
          A 2,000 gal reactor, 75 percent full of a solution of a raw material in toluene,
   is heated from 20 to 70°C. The reactor is vented to the atmosphere during the
   heatup. How much toluene will be emitted?

          Since the liquid is mostly toluene, a simplifying assumption is that the partial
   pressure of toluene in the headspace is equal to the vapor pressure.  At 20°C, the
   vapor pressure of toluene is 22 mmHg; at 70°C it is 200 mmHg. The headspace of
   the reactor is 500 gal or 66.8 ft.  The temperatures must be expressed in absolute
   units K. The gas constant, R^, in appropriate units is 998.9 mmHg-ftVlbmol-°K.
   The weight of toluene emitted is then directly calculated:
        Aij =
                    66.8 ft-
                             760-22 mmHgl  _  [760-200 mmHgll
                               (273+20)K   j     [   (273+70)K   JJ
                    ,  mmHg ft"
                       Ibmol K

                      Ay = 0.0592 Ibmoles non-VOC gas displaced

                   22 mmHg   )   ,  \   200 mmHg    ]
        760-22 mmHg        760-200 mmHG   /n
r}s = J - sJ — — 1 - L (0.
                                                                 „    ,      N
                                                                 Ibmoles gas)
         i/s  = 0.01195 Ibmoles toluene (92.13 Ib toluene/lbmole) = 1.06 Ib toluene
5.1.6 Applicable Requirements

      Because the Title V monitoring, recordkeeping, and reporting requirements are
directly  linked to applicable requirements, an understanding of the definition of applicable
requirements is essential to understanding the Title V monitoring provisions. Applicable

requirements include existing emission standards, limitations, permit conditions, and other

requirements to which a source is subject.  Title V requires that operating permits assure

compliance with each applicable standard, regulation, or requirement under the Act. Thus,

part of the process of preparing a Title V permit application is assessing what requirements
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under the Act apply to a particular source. Applicable requirements are presented in
Figure 5-1.
       An important aspect of performing a rule applicability analysis is to distinguish
between Federally-applicable requirements (i.e., those that are enforceable by the Federal
government) and State-only applicable requirements (i.e., those that are enforceable by the
State but not the Federal government).  State-only applicable requirements include limitations
that have been adopted by the State or local agency, but have not been federally approved.
This distinction is important because Title V permits contain monitoring, recordkeeping, and
reporting provisions for Federally-applicable requirements only.  Effectively, this means that
the State or local agency will have a significant amount of discretion in deciding what type of
monitoring, recordkeeping, and reporting can be accepted for State-only applicable
requirements.
5.1.7 Preparing Compliance Plans. Schedules, and Certification
       The information for compliance plans, schedules, and certifications is collected on
FJ>A forms CP,  CC-1 and CC-2 (Figures 5-2 through 5-4, respectively).  Similar forms are
available in areas where EPA has delegated the authority to administer the Title V program.
A summary of the compliance plan and  schedule requirements is illustrated in Figure 5-5.
The plan information in Figure 5-5 should be summarized on Forms CP and CC-1.  Form
CP contains the  compliance plan for the whole facility.  Detailed compliance information for
each applicable requirement is summarized on Form CC-1 for each generic requirement (e.g.
facility-wide opacity limits) or for each emissions unit.
       1.   Compliance certifications include:
             •   A certification of compliance with all applicable requirements  by a
                responsible official.
             •   A statement of methods used for determining compliance (e.g., monitoring,
                recordkeeping, and testing).
             •   A schedule for compliance certifications over the duration of the permit (no
                less frequently than annually).
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         State Implementation Plan (SIP), Federal Implementation Plan (FD>),
                         or Tribal Implementation Plan (TIP)

       Requirements of Title I of the Act that apply in the State or areas under Tribal
jurisdiction where a facility is located. In designated nonattainment areas where a SIP or
TIP has not been adopted or approved, a FIP may apply.  A brief description of each State's
approved SIP can be found in 40 CFR Part 52. Implementation plans regulate the criteria
pollutants:  PM, SC^, CO, NOX, VOC, and lead.  Implementation plans typically include
limitations on allowable emissions and procedural requirements for preconstruction review
and other permitting programs, including PSD, nonattainment NSR,  and minor source NSR.
In ozone nonattainment areas, there are VOC and NOX RACT (reasonable achievable control
technology) requirements for sources in certain industrial categories.  Facilities may also be
subject to requirements such as the employee commute option if States choose to include it in
their SIP.
                     Prevention of Significant Deterioration (PSD)

       A program contained in an EPA-approved or promulgated implementation plan for
the preconstruction review of changes which are subject to review as new major stationary
sources or major modifications under EPA regulations implementing Part C or Title I of the
Act.  Where there are no EPA-approved State PSD rules, Federal rules at 40 CFR Part 52
apply and are typically implemented by delegation of authority.  These requirements apply to
sources located in attainment or unclassified areas.  Under PSD, sources are limited from
increasing the ambient concentration of pollutants above existing baseline concentrations and
are required to install stringent controls, known as best available control technology (BACT).
More stringent limitations on increases in air pollution concentrations and air quality related
values (AQRV), such as visibility, apply near certain national parks and wilderness areas
(Class I areas).
               Nonattainment NSR (Nonattainment New Source Review)

       A program contained in an EPA-approved or promulgated implementation plan for
the preconstruction review of a new major stationary sources or major modifications of
existing sources in nonattainment areas under EPA regulations implementing Part D of Title
I of the Act.  This program typically imposes stringent controls, lowest achievable emissions
rate (LAER), and requires emissions offsets to assure progress toward attainment.
                        Figure 5-1.  Applicable requirements.
                                         5-19

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                                  Minor Source NSR

       A Title I program approved by EPA into a State's implementation plan under EPA
regulations implementing Section 110(a)(2) of Title I of the Act for the preconstruction
review of changes which are subject to review as new or modified sources and which do not
qualify as new major stationary sources or major modifications under EPA regulations
implementing Parts C or D of Title I of the Act.
                               Section 111 Requirements

       New Source Performance Standards (NSPS) are standards or requirements that
regulate criteria and other pollutants for specific types of source categories.  A new or
modified source is subject to NSPS if standards have been proposed for that source category
before the facility commenced construction. The NSPS are promulgated at 40 CFR Part 60.
These regulations implement the statutory requirements of Section 11 l(b) of the Act.
Section lll(d) qf the Act requires the Administrator to develop emissions guidelines
documents and the States to implement  regulations addressing the control of non-criteria
pollutants from existing sources in several source categories that also have Section 112(b)
standards. These pollutants are called "designated pollutants" and the sources for which the
standards are set are called "designated facilities."  Regulations controlling the adoption and
submittal of the State plans for regulating these sources are promulgated at 40 CFR Part 60,
Subpart B.  The emissions guidelines and compliance tunes are promulgated at 40 CFR
Part 60,  Subpart C, and the State regulations addressing these sources are approved by EPA
and promulgated at 40 CFR Part 62.  Designated pollutants include certain emissions from
municipal waste combustors, sulfuric acid mist, total reduced sulfur, and fluorides.
                                  Phase I Acid Rain

       These standards or requirements apply to 110 mostly coal-burning electric utility
plants. Acid rain permits, issued by EPA under 40 CFR part 72, became effective on
January 1, 1995 and expire on January 1, 2000.
                                  Phase II Acid Rain

       These standards or requirements generally apply to all existing utility units with an
output capacity greater than 25 megawatts (MW) and all new utility units.  Phase JJ acid rain
permit applications must be received from sources no later than January 31, 1996.  States
with approved Part 70 operating permit programs will be responsible for issuing these
permits by December 31,  1997.  In the event that a Part 71 program is in effect, the EPA or
a delegated agency will  issue the Phase II permit.
                                Figure 5-1.  (continued)
                                          5-20

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                          Compliance Assurance Monitoring

       EPA is required to promulgate a rule concerning requirements for enhanced
monitoring and compliance certification at 40 CFR Part 64.  These requirements will
implement Section 114(a)(3) of the Act.  The proposed rule was published on October 22,
1993 at 50 FR 54648 and is currently being revised under the compliance assurance
monitoring program.
                     The Outer Continental Shelf (OCS) Program

       These are requirements of standards for certain sources located on the Outer
Continental Shelf pursuant to 40 CFR Part 55, as authorized by Section 328 of the Act.
Facilities located beyond 25 miles from a States' seaward boundaries, or within 25 miles if
the State does not have an approvable Part 70 program, may have requirements under this
regulation.
         National Emission Standards for Hazardous Air Pollutants (NESHAP)

       These are emissions standards that apply to specific sources of noncriteria air
pollutants.  These standards apply to new, modified,  and existing sources.  The regulations
implementing this program are promulgated at 40 CFR Part 61 and are based on Section 112
of the Act,  as promulgated before the 1990 Act Amendments.
         Municipal Waste Combustor (MWC) Requirements Under Section 129

       Section 129 of the Act requires that MACT-based standards be promulgated under
Section 111 for existing and new solid waste incineration units, including units combusting
municipal waste, hospital waste, medical waste, infectious waste, and commercial or
industrial waste. On December 19, 1995 (60 FR 65387-65436), new source performance
standards (NSPS) were promulgated under Part 60, Subpart Eb, for new MWC, and
emission guidelines were promulgated under Part 60, Subpart Cb for existing MWC's.  Also
within this notice, the old emission guidelines for MWC's in Part 60, Subpart Ca, were
withdrawn. Emission guidelines for sulfuric acid production plants were moved from
Subpart Cb to Subpart Cd to make room for the new guidelines that now occupy Subpart
Cb.
                               Figure 5-1.  (continued)
                                        5-21

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                   Consumer and Commercial Product Requirements

        Section 183(e) of the Act requires EPA to study the potential of consumer and
commercial products to  contribute to ozone levels hi ozone nonattainment areas and to
establish criteria for regulating them.  The study will identify categories of consumer and
commercial products for regulation and divide die categories into four groups to be regulated
over 8 years.  These regulations, when promulgated,  will only apply to manufacturers,
processors, wholesale distributors, or importers of these products.
              Increment or Visibility Requirements for Temporary Sources

        Temporary sources must meet any national ambient air quality standard or PSD
increment or visibility analyses requirements of Part C of Title I of the Act and must include
appropriate studies or analyses meeting these requirements  in the permit application.
Temporary sources are sources that apply for a permit that allows them to operate in more
than one location during the term of the permit.
                            Stratospheric Ozone Protection

       For permitting purposes all Title VI requirements must be listed hi the Title V
permit application, including Sections 608 and 609 that apply to capture and recycling of
ozone-depleting substances during service and disposal of refrigerator equipment and air
conditioners. Although a proposal has been made to require only Sections 608 and 609 as
the only applicable requirements in Title V permit applications, mis proposal has not been
adopted at this time.  On May 14, 1993, EPA promulgated final regulations pursuant to
Section 608 of me Act (40 CFR 82, Subpart F, 58 FR 28660). These regulations require
recycling of ozone-depleting refrigerants which are  recovered during servicing of non-motor
vehicle air conditioning or refrigeration equipment.  The rules also require recycling during
disposal of all air conditioning and refrigeration equipment.  On July 14, 1992, EPA
promulgated final regulations  pursuant to Section 609 of the Act (40 CFR 82, Subpart B, 57
FR 31241).  These regulations prescribe standards and requirements for servicing motor
vehicle air conditioners.
                           Emissions-Limiting Requirements

       This category of applicable requirements includes any emissions-limiting requirement
that is enforceable by EPA and by citizens under the Act (Federally enforceable) and that is
imposed on a source for purposes of creating an emissions or offset credit or avoiding the
applicability of other applicable requirements.
                               Figure 5-1.  (continued)
                                         5-22

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         Standards and Requirements under Section 112, as Amended in 1990

       These statutes establish a framework for controlling hazardous air pollutants (HAP)
by establishing certain requirements and control technology standards for specific categories
of sources.  These standards include maximum achievable control technology (MACT) and
generally achievable control technology (GACT).  Note that MACT standards may replace
previously published NESHAP.  Sources subject to Section 112 will, in many cases, have to
submit substantial information in the application to address these requirements.  Many
regulations  implementing the Section 112 requirements will be promulgated on March 16,
1994 at 40  CFR Part 63, Subpart A (50 FR 12408).  The general provisions address general
procedures  and criteria that apply to all subsequent subparts of Part 63, except when
otherwise specified in a particular subpart.  The remaining boxes in this section summarize
some of the different types of requirements and control standards that are being established
under Section 112 of the Act.
                             Section 112(d) Requirements

       These are emissions standards and other requirements for categories or subcategories
of new and existing major and area (nonmajor) sources listed for regulation pursuant to
Sections 112(c) and 112(e) of the Act.  These requirements will be promulgated on a
schedule extending until November 15, 2000.  For a final list of the categories and
subcategories of sources to be regulated and the schedule for their release,  see 58 FR 63941
published on December 3, 1993.
                                Section 112(g) MACT

       After the effective date of a Title V permit program, no person may construct a new
major source or reconstruct an existing major source of HAP unless MACT will be met.  If
MACT has not been established under Sections 112(d) or (f) of the Act, a case-by-case
review must be undertaken for that source to determine MACT.  Part 63, Subpart B, was
reproposed on March 26, 1996 (61 FR 13125).
                              Early Reductions of HAP

       Existing sources that will be subject to Section 112(d) emissions control requirements
are allowed to submit early reduction demonstrations under Section 112(i)(5) of the Act,
demonstrating an alternative emissions limitation in order to receive a compliance extension
from meeting the Section 112(d) standard for a period of 6 years from the compliance date
of the 112(d) standard.  On December 29, 1992, final regulations were published at 40 CFR
Part 63, Subpart D (57 FR 61970).
                               Figure 5-1.  (continued)
                                         5-23

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                           Section 112(j) MACT Standards

       If the Administrator fails to promulgate a Section 112(d) MACT standard by the
Section 112(e) deadline, the owner or operator of an existing major source in a category or
subcategory that would have been subject to the standard and that does not already have a
permit that would meet the requirements of Section 112(j), must submit an application to
establish  a MACT standard under Section  112(j).  Section 112(j) standards are established on
a case-by case basis and must be equivalent to the MACT standard that would have been
established by EPA under Section 112(d).  These requirements are not applicable until after
the Title V program is effective and not until 18 months after the date for  which  a relevant
standard is scheduled to be promulgated.  Final rules were promulgated at 40 CFR Part 63,
Subpart B, on May 20, 1994 (59 FR 26429).
                               Risk Management Plan

       Sources required to submit risk management plans under Section 112(r), which
addresses the prevention of the accidental release of certain extremely hazardous substances,
must indicate their compliance with the submittal requirements. Regulations were proposed
on October 20,  1993 to require development and implementation of risk management
programs at facilities that manufacture, store, or otherwise handle regulated substances above
specified thresholds. A final list of regulated substances and thresholds were published on
January 31,  1994 at 40 CFR  Part 68 (59 FR 4478).  Once the final  rule is issued, sources
not in compliance with this requirement must propose in the permit  application a schedule of
remedial measures leading to compliance.
                              Tank Vessel Requirements

       The EPA proposed standards implementing two provisions of the Act on May 13,
1994 (59 FR 25004). One set of standards implementing Section 183(f) would require the
application of RACT to control emissions of VOC and HAP from new and existing marine
tank vessel loading and unloading operations. An additional set of standards proposed under
Part 63 implementing Section 112(d) of the Act would limit emissions of HAP from new and
existing marine tank vessel loading and unloading operations through the application of
MACT.
                               Figure 5-1.  (continued)
                                        5-24

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DRAFT, February 1996
     OMB Control No. 2060-0336. Approval Expires 07-31-88.
                                           U.S. ENVIRONMENTAL PROTECTION AGENCY
                                  APPLICATION FOP. FEDERAL OPERATING PERMIT. 40 CFR PART 71

                                                 FOP.MCP  • COMPLIANCE PLAN
     INSTRUCTIONS.- Comptoto iNa form ones for the facKty.
  A. Deecriptton a* Compilers Statue el tt» Source with Reapaa to at Applicable Requirements

         Enaapl aa Indicated ki aactlon B. «M facKty wM ba In oompllanea whh al appieaMa requirement*
         M the dma of parmH laauanca and thle fadhy wM continue to eompty whh thaaa raqiiiramanu
         •Nat McHty wM RieMt •! i
                                                I that taka effect during *a tann of tha permit on a timaly baate
                                      O YES  D NO

                                      D YES  DNO
  B. Oaaerlptton for Api>l«MbWrtaqu«»manu lor which th.Fac«tywl not bafctCo^
Unit 10


Apoieabla Baqolramant


NMTMIw DACcnpoon of How Ooropiwno^ VAR DC AcnwvAd


  C Scnatfula of CompUanca

     Inatniniont:  ComplMa this Motion If tha aourca ia not in compKanca with an applicabla raqukamant at parmtt laauanca or M a detaUcd tchadula
                 la raquirad by an appScabk raquirament, judicitl contant dacraa or admMctrativa ordar. For aotwo** not in compNanca, the
                 achadula muit contain a acnadula of remedial measure*, including an enforceable eequance of action* whh milestones, leading to
                 compliance. You must Include the date of final compliance in tha schedule.
Unit ID


Applicable Requirement


Remedial Measure or Action













Date Milestone or Action
Will be Achieved













  D. Progress Reporu

     Instruction*:  Compkt* this (action if the fac«ity la raquirad to hsva a achadula of oomplianca to ramady a violation.  Progress reports muit be
                 aubmltted at least every 6 months during the term of the permit.
     Frequency for aubmittal of progress reports
Starting date for aubmittal of progress reports     I   I
                          Figure 5-2.  Draft Form  CP -- Compliance Plan.
                                                         5-25

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DRAFT. February 1 996
                                     U*. ENVIRONMENTAL PROTECTION AGENCY
                             APPLICATION FO« FEDERAL OPERATMQ PERMIT. 40 CFR PART 71
                           POAMCC-1
                                                      CATION IMETHOO O> COMPUAMCO
  INSTRUCTIONS: Comptow tN» tarn far Mod i
              nqjtnmn* w« be oampfcd with In tt» «m» w«y ft th« unto.
                                                               lunhOTferi
  A* UAfNinCflVOft •• EflMnloit Utw MW AppKccHv AvQwrcnMiiC

    Emlwlon unK KM*)
   Acotickil* iMukMMnt h*» and dMcrib* In itouill
 B* Ooooripflofi of MvtnOOv for cwiipf^flnp wfltfi vM^^ppvcflDM nCQulroMont

  . «4blMtlOfWv  felVMMO OAOn IHVOIOQ^POP OMOnHQ OOtnpvOAOO Wlvl tnV flpPOOODW fOQM*OIBMK OMOTTOOd
               h >«i«d on *»• ippfc«bl« nqulr^mm y tf» potedk:
I MI • iiyirm In* Mew.
                               lefttbV.
        Method of Compfenc*
        (monHonno, tMting*
        r«eordka»pin0. or
                                        DMcrlption of Method of Comptianc*
                                                                                 Rcquiranwnt
  	              '  ^^^^^^^^^^^^^HB^HHIBBI^l^^^^^^^^^^^^^^^^^^^^^^^^^^^VHBHi^^^^^^^^^^^^^^lHBH^^^^^^^^^^^^
 Figure 5-3.  Draft Form CC-1 ~ Compliance Certification (Method of Compliance)
                                                   5-26

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DRAFT, February 1996	OMB Control No. 2060-0336. Approval Expire* 07-3J-SB.
                                          US. ENVIRONMENTAL PROTECTION AGENCY
                                 APPLICATION FOR FEDERAL OPERATING PERMI7740 CFR PART 71

                                          FORM CC-2 . COMPLIANCE CERTIFICATION
    INSTRUCTIONS:       Tni* form muct be oompM*d one* for th* facKty whh raapect to a* applicable raqulremanu at tha facility and mu«< be
   	algned by a reipenafcte official.	
  A. Sch»di*»
-------
     List all currant and
  anticipated requirements
          Is the
       requirement
        currently
       applicable?
Yes
No
Describe requirement and
  compliance status in
   permit application
    Wilthe
  requirement
    become
appicable during
   the permit
     term?
                                                                                No action required
                           No
   Certify in permit
  appypation that the
 emissions source will
  continue to comply
                                                  Is this a
                                                  current
                                                requirement?
                                                Certify that wtwn
                                                 the requirement
                                               becomes applidDM,
                                               the emissions source
                                             wil meet the requirement
                                                on a timely baM
                                          Describe how source will
                                            achieve compliance in
                                             permit application
                                                i
                                          Include with permit
                                        appication a schedule of
                                     remedial measures, enforceable
                                     sequence of actions, miestones,
                                        and schedule for certified
                                        progress reports (at least
                                            semi-amually)
          Figure 5-5.  Compliance Plan and Schedule Requirements.
                                           5-28

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             •   Statements indicating a source's compliance status with the compliance
                 certification requirements of the Act.
The above information is collected on EPA Form CC-2.
5.1.8  Preparing Insignificant Activities and Emission Levels Lists
       EPA has established several ways to streamline applications for activities (or
equipment) that do not contribute significantly to the decision to obtain a permit or that do
not need to be specified in the permit.  EPA has designated some activities as "insignificant
activities."  Insignificant activities that are listed in the Part 71  rule do not generally need to
be identified or described in the application (see Table 5-2).  EPA has also established
"insignificant emissions levels" that may be used, at the discretion of the source, to designate
other activities as insignificant activities:
       •  For HAP's:
          —  No more than 1,000 Ib/year of any HAP from a  single emission unit.
       •  For non-HAP regulated air pollutants:
          —  No more than 2 tons/yr from a single emission unit.
Because these activities may be unique to  the source and have not undergone prior EPA
review, the application must identify  them in a list.

                  TABLE 5-2.   INSIGNIFICANT ACTTVTnES UNDER
                            THE PART 71 PERMIT PROGRAM
    •  Air-conditioning units for human comfort, provided that no ozone-depleting substances or substitute
      substances are used and air pollutants are not exhausted into ambient air
    •  Ventilation units used for human comfort, provided that no air pollutants are exhausted into ambient
      air
    •  Heating units used solely for human comfort (i.e., not used for manufacturing or industrial
      purposes)
    •  Noncommercial food preparation
    •  Consumer use of office products or equipment
    •  Janitorial services and consumer use of janitorial products
    •  Internal combustion engines used for landscaping purposes
    •  Mobile sources
  Source: Elsevier Science Inc.; compiled from proposed 40 CFR Section 71.5(c)(ll)(i).
                                            5-29

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       In some cases, more information than described above for insignificant activities
(whether listed in the rule or qualifying based on emission levels) would be needed in the
application. For example, when insignificant activities are subject to applicable
requirements,  the application may need to include information concerning the insignificant
activities for the permit to properly include those applicable requirements.  In cases where
the PTE from activities that are insignificant would tip a source over from being a minor
source to being a major source, the PTE from the activities must be included in the total for
the facility, the source must be considered a major source, and the application must include
those emissions.
       The Part 70 White Paper, also being implemented in Part 71, allows  "trivial
activities" to be completely omitted from applications.  The white paper defines trivial
activities as activities without specific applicable requirements (although they may have
"generic" applicable requirements) and with extremely small emissions.  The list of examples
included in Appendix A of the White Paper may be used by all Part 71 sources.  In addition,
EPA may expand the list of trivial activities for a particular State to include  trivial activities
or certain insignificant activities of the State's operating permits program without the need
for Federal rulemaking.
       Form IE is provided (Figure 5-6)  to list emissions units or activities that have
insignificant emissions  levels.  In addition,  information concerning equipment,  activities, or
emissions units that are exempted from an otherwise applicable requirement  (e.g., emissions
units grandfathered from requirements of a NSPS should be attached to the form).  Such
exemptions are only valid if they are authorized under a Federally-approved  implementation
plan (SIP, FIP, or TIP) or other applicable requirement.  On the attachment, describe the
exempted equipment, emissions unit, or activity and the basis for the exemption (you may
cite the State administrative code or Federal regulation). In some cases, the listing in the
application may need to specify capacity; throughput;  material being processed, combusted,
or stored; or other pertinent information, but  try to keep this information to one line.  The
"number" column is provided to indicate the total number of units or activities grouped
together under one description.  For example, a complex facility may have hundreds of
valves and flanges and there are no applicable requirements that apply. However, units or
                                          5-30

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DRAFT. February 1996
                                                        OMB Control No. 2O6»0336. Approve fjpfcM O7-31-98.
U.S. ENVIRONMENTAL PROTECTION AQENCY
APPUCATION FOR FEDERAL OPERATING PERMIT, 40 CfR PART 71
APPLICATION FORM IE - WSIQMFICANT EMISSIONS
INSTRUCTIONS: U
•»
u
•I
t>


MMch«aurM«llgM*ferln*lgnMe«mirMtnwMundwl714(eM11Hl>. *» *• 'nun*** column. In
nIHying inter Mch dMCripdon. Ewh dMCriptlen mud b. *p*cMc (neugh to tfworib. itw MUTM ef

Dduttntt «xc»pt hnmlout * pofciunt «RAP. wnpt MAPI, tnd tor HAP. CMpKthMlv.
Aem th« number ef unh«
•fiMMionv* Urt •intwion
cion. PlMuehKkttw
A) «nd (Bl for ragubud iir

NumlMr


















DMcription ef ActMtiM w EmiHlen Unto


















RAP.
•MMpt
HAP


















HAP






















          Figure 5-6.  Draft Application Form IE - Insignificant Emissions.
                                           5-31

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activities that have dissimilar descriptions, including dissimilar capacities or sizes, should be
listed separately in the application. Two columns are provided for applicants to indicate the
type of pollutants for the insignificant emissions.

5.2  THE PERMIT APPROVAL PROCESS
       After it receives a Part 71 permit application, EPA (or the delegated permitting
authority) would have a limited time to determine whether the application is complete and to
request additional information, if needed.  The application is automatically deemed complete
if a determination of incompleteness is not made within 60 days following submittal.
Although EPA could still request additional information (if needed), the Agency would have
only 18 months from receipt of the complete application to issue or deny the permit (except
during the initial three years of the program in which the permitting authority must issue
one-third of the permits each year; EPA or the delegate agency would have 6 months or less
to process the first one-third of the applications received). The 18-month period applies to
the date the completed application is received, regardless of whether the application has been
determined to be complete or deemed complete by default.  In cases where a permit
application contains a  HAP early reduction demonstration, EPA must take final action on the
permit within 12 months.  Figure 5-7 summarizes the generic permit review/issuance
process.
5.2.1  Public and "Affected State" Notice and Opportunity for Comment
       Draft Part 71 permits would be made available to both the general public and
"affected States" for review and comment.  The public notice must include the opportunity
for submission of written comments and the opportunity to request a public hearing.  The
public will have access to copies of the applications and the compliance plan.
       In addition, States affected by source emissions and that are contiguous to the State
where the source is located or States located within 50 miles of source must be notified of
each draft permit.  The affected States may  submit comments during 30-day public comment
periods as well.
                                         5-32

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18 Months
                                 Program Approval
                           Complete Application Submittal
                               Draft Proposed Permit
Neighboring State Review
          and
    Public Comments
                                Proposed Permit to
                                EPA for Comments
                               (If a delegated agency is the
                                 permitting authority)
                               Final Permit Issuance
                              Appeal to Environmental
                                  Appeals Board
                               Opportunity for Judicial
                              Review in Federal Court
                                                                      12 Months
                                                                      30 Days
                                                                      45 Days
                                                                      30 Days
                                                                      60 Days
            Figure 5-7.  Application Submittal/Permit Issuance Process.
                                     5-33

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5.2.2 Public Petitions and Judicial Review
       After the close of the public comment period on a draft permit, the permitting
authority will issue a final permit decision. Within 30 days of the final permit decision,
anyone who filed comments on the draft permit or participated in the public hearing may
petition the EPA Environmental Appeals Board (EAB) to review any condition of the permit
that was changed between the draft and final permit stage or other new grounds not
reasonably foreseeable during the comment period.  The EAB will issue an order either
granting or denying the petition for review.  To the extent review is denied, the conditions of
the final permit decision become the final Agency action and are subject to judicial review in
the United States Court of Appeals. The decision of the EAB to issue or deny the permit is
also subject to judicial review. Petitions for judicial review must be filed  within 60 days of
the EAB's final decision. A petition can also be made to reopen an already issued permit for
cause.  Petitions would be required in writing and to contain facts or reasons supporting the
request.
5.3 PERMIT CONTENT
      Because operating permits are the primary tool for implementing and enforcing Act
provisions, EPA has specified a number of items that will be included in each permit.   These
items are summarized below:
       •   Fixed Term.  The permit will generally include a fixed term of 5 years or less.
          However, Acid Rain permits will be issued for a 5-year term and solid waste
          incinerator permits may have up to a 12-year term.
       •   Emissions Limitations and Standards.  The purpose of emissions limitations is to
          ensure that the source will comply  with all "applicable requirements."  These
          limits cannot be exceeded without a revision to the permit, which must be
          approved by the permitting  authority.  The permit may establish alternative or
          equivalent emissions limits to those in the SIP. A regulatory citation or origin will
          be provided for each requirement.  Requirements that are more stringent than
          required will be incorporated into the permit as such and will be enforceable.
       •   Applicable Requirements.  For all major sources  subject to Part 71, the permit
          will include all applicable requirements for relevant emissions units.  For
                                         5-34

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nonmajor sources subject to Part 71, the permit will include all applicable
requirements pertaining to the emissions units that caused the source to be subject
to Part 71.
Compliance Certification Requirements. The permit will contain information
regarding the frequency of compliance certifications submissions.  The permit will
specify the means used to monitor compliance and the elements that must be
reported in the compliance certification (e.g., permit provisions, compliance
status, and duration of compliance/noncompliance).  The permit will require the
source to submit the above information.
Operational Flexibility.  The permit will include terms and conditions for the
anticipated alternative operating scenarios and emissions trading.  Permit revisions
will not be needed for these changes.  The permit will require recordkeeping to
establish compliance with the terms of the permit.
Fee Schedule. The permit will include a provision to ensure that a permitted
source pays its annual dues according to schedule.
Monitoring. Recordkeeping. and Reporting.  Monitoring, recordkeeping, and
reporting requirements will be included in the permit.  In addition, all emissions
monitoring and procedures or test methods will be included.  The frequency of
report submittals will also be  included.
Permit Reopenings.  The permit will contain an option for permit reopening.  The
old permit terms remain in effect until the reopening process is completed.
Permits  may be reopened under the circumstances shown in Table 5-3.
Compliance Schedule.  A compliance schedule that sets specific timeframes  for
achieving all provisions in the Act for which a source is not in compliance will be
included in the permit.
Progress Reports.  The permit will include a requirement that the source submit
progress reports at least semiannually and perhaps more frequently if required by
the applicable requirement or  by the permitting authority.
Enforcement Issues.  Provisions will be included in the permit that explain the
nature of the permit and the grounds for enforcement.
                               5-35

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       TABLE 5-3.  CIRCUMSTANCES REQUIRING PERMIT REOPENINGS
 •  Additional applicable requirements are promulgated after the permit is issued and
    the requirements become applicable when more than 3 years remain during the
    permit term.
 •  Additional requirements become applicable to an affected source under the acid
    rain program.
 •  The permit contains a material mistake.
 •  Inaccurate statements were made in establishing emission standards or other permit
    terms.
 •  EPA or the permitting authority determines that the permit must be revised or
    revoked to assure compliance with the applicable requirements.
Source: 40 CFR, Section 70.7(f).

    •   Inspection and Entry Requirements.  A provision allowing proper access by
        permitting officials to inspect facility operations, permit documents, and other
        pertinent information will be included in the permit.
    •   Permit Shield.  A permit shield will be provided in the permit to protect the
        source from enforcement actions as a result of unintentional releases or deviations,
        provided that the reporting requirements for these deviations have been met.  The
        shield also protects the source from enforcement actions if the source has met the
        requirements for trading emissions increases and decreases in the facility. A
        permit shield does not protect a facility from requirements promulgated after the
        permit is issued, minor permit modifications, "off permit" actions, violations
        existing at the time the permit is issued, acid rain requirements, and Section 114
        information requests.
    •   Emergency Provisions.  An emergency provision will be included in the permit.
        An emergency is defined as a sudden and unforeseeable event that occurs beyond
        the control of the source, including acts of God. An emergency does not include
        noncompliance due to improperly designed equipment, careless operation, or
        insufficient maintenance. A provision  will be included in the permit to require
        notifying the permitting agency within  2 working days should an emergency occur.
                                      5-36

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5.4 PERMIT REVISIONS
       The Part 71 permit revision program is modelled on the current Part 70 program.
Permit revisions will be processed in one of three ways:
       1.  Administrative permit amendments;
       2.  Minor permit modifications; and
       3.  Significant permit modifications.
Each of these are discussed further below.
5.4.1   Administrative Permit Amendments
       Administrative permit amendments are changes such as:
       1.  Correction of typographical errors;
       2.  Change of address or ownership;
       3.  Change of contact person or responsible parties; and
       4.  Incorporation of State preconstruction requirements.
The permittee may make these changes to the permit after submitting a notice to the
permitting agency. The permit will be revised at renewal.
5.4.2   Minor Permit  Modifications
       Minor permit  modification procedures  may be used  only for those permit
modifications that:
       1.  Do not violate any applicable requirement;
       2.  Do not involve  significant changes  to existing monitoring, reporting, or
recordkeeping requirements in  the permit;
       3.  Do not require or change a case-by-case determination of an emission limitation or
other standard, or a source-specific determination for temporary sources of ambient impacts,
or a visibility or increment analysis;
       4.  Do not seek to establish or change  a permit term or condition for which there is
no corresponding underlying applicable requirement and that the source has assumed to avoid
an applicable requirement to which the source would otherwise be subject;
       5.  Are not modifications under Title I of the Act; and
       6.  Are not required to  be processed as a significant modification.
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       Although "Title I modifications" are not specifically defined under the current Part 71
rule, a definition is under development, and EPA will add the definition in the Phase n
rulemaking, consistent with how EPA ultimately defines the term under Part 70.  Until this
term is formally defined, EPA is applying the interpretation of Title I modifications that
States are using under the current Part 70 rule. Consequently, changes subject to State minor
NSR programs will not be considered Title I modifications.
       Under this permit revision track, the source may make a change immediately upon
filing an application for a minor permit modification.  Eligible changes could be processed
individually or in groups, but the permit shield may not extend to these changes.   If the
change is made before approval is granted by the permitting authority, the source does so at
its own risk. The source is only afforded a temporary exemption from the formal
requirement that it operate in accordance with the permit terms that it seeks to change in its
modification application.  Should the proposed permit modification be rejected, the source
would be subject to enforcement proceedings.
       The application requesting the minor permit modification should include the
following:
       1. A description of the change, the emissions resulting from the change, and any new
applicable requirements that will  apply if the change occurs;
       2. The source's suggested draft permit;
       3. Certification by a responsible official that the proposed modification meets the
criteria for minor permit modifications; and
       4. Completed forms for the permitting authority to use to notify affected States.
       The permitting authority has 90 days to issue or deny  the permit modification.
5.4.3  Significant Permit Modifications
       Significant permit modifications are changes that do not qualify as minor permit
modifications or as administrative amendments.  In this permit revision track, the public,
permitting authority,  affected States, and EPA will review the modification permit application
in the same manner as a review during a permit issuance. The permit shield may extend to
changes processed under this track.  Permitting authorities will initiate review of the
proposed changes after receipt of an application.  The permitting authority has 9 months to
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complete action on the significant permit modification application after the application is
deemed complete.

5.5 PERIODIC MONITORING, RECORDKEEPING, AND REPORTING
       EPA is developing a program for implementing the Act's enhanced monitoring
provisions. This new program, referred to as compliance assurance monitoring (CAM), will
incorporate periodic monitoring requirements. However, until the CAM rule becomes final,
if an emissions unit subject to Part 71 lacks periodic testing or monitoring requirements, the
source owner or operator must propose in the initial permit application periodic monitoring
requirements.  As described in 71.6(a)(3), the proposed periodic monitoring requirements
must use terms, test methods, units, averaging periods, and other statistical conventions
consistent with those found in the applicable requirements.  It is possible that simple
recordkeeping will suffice for the periodic monitoring of some emission units.
       Should permit applicants or permitting authorities  seek additional information on
developing periodic monitoring, a review of the draft Technical Guidance Document for the
CAM rule could provide some insight. In this document, EPA has developed several
illustrations of acceptable CAM plans.  An electronic version of this document is available
on the EPA's Office of Air Quality Planning and Standard's (OAQPS) Technology Transfer
Network (TTN) in the Emission Measurement Technical Information Center's (EMTIC)
Bulletin Board, as filename TECHDOC.914.  The following example draft CAM plans are 2
of 18  available examples provided in the guidance document.
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                                   EXAMPLE 1

        COMPLIANCE ASSURANCE MONITORING (CAM) ILLUSTRATION
                  NO. la., FABRIC FILTER FOR PM CONTROL

1. APPLICABILITY

   1.1  Control Technology: Fabric filter (Baghouse)

   1.2  Pollutants:
        Primary:  PM,
        Other:  Toxic heavy metals

   1.3  Process/Emissions Units:  Industrial process vents and fuel combustion units

2. MONITORING SYSTEM/PROGRAM DESCRIPTION

   2.1  Parameter to be Monitored: Visible emissions (VE).

   2.2  Rationale for Monitoring Approach/Measurements: Changes in VE observations
        indicate process changes, changes in baghouse efficiency, or leaks.

   2.3  Monitoring Location:  Per RM 9 or RM 22 requirements.

   2.4  Analytical Devices:  Trained observer using RM 9 or RM 22.

   2.5  Description of Data Acquisition and Measurement System  Operation:

        • Frequency of measurement:  Daily or as weather permits.
        • Reporting units: Percent opacity or visible/no visible emissions.
        • Recording process:  Observers  complete VE observation forms and log into
          binder or electronic database, as appropriate.

   2.6  Corrective Action Trigger Levels:

        • Basis for setting levels:  Baseline percent opacity; typical  appearance, RM 9 or
          RM22.
        • Data needs:  Baseline VE observations concurrent with  emission test or historical
          plant records of opacity observations. (No data are needed if "any visible
          emissions" type corrective action trigger is chosen.)
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   2.7  Corrective Action Period:

        •  Time to take initial action: Inspection to isolate problem and define solution
          within 4 to 24 hours of indication of problem, depending on severity.  If opacity
          is above permit limit,  immediate corrective action should be taken.
        •  Time to rectify problem:  1 to 14 days from indication of problem, depending on
          severity.

   2.8  Specific QA/QC Procedures:  Initial training of observer per RM 9 or RM 22;
        semi-annual refresher training per RM 9, if applicable.

   2.9  References:  1, 2, 3, 4, 5.
                                  EXAMPLE!

       COMPLIANCE ASSURANCE MONITORING (CAM) ILLUSTRATION
             No. 38, THERMAL INCINERATOR FOR VOC CONTROL

1. APPLICABILITY

   1.1  Control Technology:  Thermal incineration

   1.2  Pollutants:

          Primary: Volatile organic compounds (VOCs)
          Other: Higher molecular weight organic compounds

   1.3  Process/Emissions Units:  Coating, spraying, printing, polymer manufacturing,
        distillation units, wastewater treatment units, air oxidation units, petroleum refining,
        miscellaneous SOCMI units

2. MONITORING SYSTEM/PROGRAM DESCRIPTION

   2.1  Parameter to be Monitored: Incineration temperature.

   2.2  Rationale for Monitoring Approach/Measurements: Proper temperature range can
        be related to good performance.

   2.3  Monitoring Location:  Outlet of combustion chamber.

   2.4  Analytical Devices:  Thermocouples, or alternative methods/instrumentation as
        appropriate for specific gas stream.  See CAM guidance for specifications.
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2.5  Description of Data Acquisition and Measurement System Operation:

     •  Frequency of measurement: Hourly, or recorded continuously on strip chart or
        digital data acquisition system.
     •  Reporting units:  Degrees Fahrenheit or Celsius (°F, °C).
     •  Recording process: Operators take readings and manually log data, or recorded
        automatically on strip chart or digital data acquisition system.

2.6  Corrective Action Trigger Levels:

     •  Basis for setting levels: Regulatory standards for VOC emissions.
     •  Data needs:
          Baseline incineration temperature measurements and outlet VOC concentration
            measurements concurrent with emission test.
          Historical plant records on incineration temperature measurements and outlet
            VOC  concentration measurements.

2.7  Corrective Action Period:

     •  Time to take initial action: Inspection to isolate problem and define solution
        within 15 minutes to 24 hours of indication of problem, depending on severity.
        If temperature is near ambient, immediate corrective action should be taken.
     •  Time to rectify problem:  1 day.

2.8  Specific QA/QC Procedures:

     •  Calibrate, maintain, and operate instrumentation  according to manufacturer's
        recommendations.

2.9  References:   1,2,3, 4.
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     REFERENCES FOR COMPLIANCE ASSURANCE MONITORING (CAM)
                              ILLUSTRATIONS

1.  Air Pollution Engineering Manual, A&WMA, Buonicore and Davis, ed. 1992.

2.  Ohio EPA's Operating and Maintenance (O&M) Guidelines for Air Pollution Control
   Equipment, for Ohio EPA, Columbus, OH, by Environmental Quality Management,
   Inc., Cincinnati, OH, February  1993.

3.  Generic Permit Conditions Pertaining to Monitoring, Georgia State Pollution Control
   Agency, GDNR.

4.  Combustion Emissions Technical Resource Document (CTRED), USEPA Solid Waste
   and Emergency Response (5305), EPA 530-R-94-014, May 1994.

5.  APTI Course SI:412, Baghouse Plan Review, USEPA, 1982.
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                       6.0 FLEXIBLE PERMIT APPROACHES

      The operational flexibility provisions as provided for under the Federal operating
permits program (40 CFR Part 71) allow a source to respond quickly to changing business
opportunities.  Many changes made in normal operating procedures, such as a change in
product formulations or hours of operation, can be provided for under the operational
flexibility provisions without requiring a permit modification.
      The two major aspects of operational flexibility that may be helpful to applicants are:
(1) emissions trading under emissions caps established by the permit, and (2) emissions
trading based on the State implementation plan (SIP) rules. Additional provisions, which are
generally considered to offer operational flexibility, are:  (1) off-permit changes,
(2) emissions trading based on applicable requirements, (3) emissions trading based on
economic incentives, (4) alternative operating scenarios, (5) advance NSR approval, and
(6) general permits.  Maximizing potential to emit (PTE) can also be an option under certain
circumstances for increasing operational flexibility.  All of the above mentioned operational
flexibility approaches are described below.

6.1 EMISSIONS TRADING UNDER EMISSION CAPS ESTABLISHED BY THE
    PERMIT
      According to Section 71.6 of Part 71, the permitting authority must allow for
emissions trading provisions that are used to meet an independent emissions cap.  The
emissions cap when placed into the permit is a Federally-enforceable, pollutant-specific limit
that restricts the emissions of any regulated air pollutant.  The cap is considered
"independent" because it is independent of any applicable requirements and does not displace
the obligation to  comply with applicable requirements.  Caps may be established at the plant
level or at the process level. Once the emissions  cap is set, the source may operate an
internal emissions trading program, thereby providing some latitude with its own operations.
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The permit must describe how the source plans to track its operations relative to the cap and
ensure that trades are quantifiable and enforceable.
       The permitting authority must put the cap into the permit if a source's proposal meets
the criteria for enforceable trading.  Additionally, the permit must establish compliance
requirements for trading.  The required 7-day advance notice of trading does not establish
permit terms for trading, but just notifies the authority and EPA that the source is using
already established permit terms to trade.
6.1.1 Impacts of Establishing Emissions Caps
       For a source that does not maximize its potential to emit and that produces a wide
variety of products using a fixed  group of raw materials, the emissions cap can grant
considerable flexibility.  Since the cap is normally established at greater than current levels
but less than the cumulative potential to emit, the facility may operate with great flexibility
provided that it complies with the restrictions of the emissions cap and any other State or
Federal requirements.  The emissions cap may provide for peak operation of individual units
within a group of equipment at higher levels than would be allowed if all the units were
permitted at average rates. Additionally, the permit shield is available for equipment covered
under the emissions caps.
       Conversely,  some drawbacks may be seen with the emissions cap: (1) the facility
must operate at or below the levels determined by the cap, and (2) the facility must perform
the necessary recordkeeping required to ensure compliance with the cap.  The applicant must
implement recordkeeping practices and permit terms that ensure the trades are both
quantifiable and enforceable. Also,  the facility must give the permitting authority 7 days
notice before trading under the cap.  Care must be taken to trade only emissions that are
similar, especially in the case of  hazardous air pollutants (HAP's), because Section 112(g) of
the Act prohibits offsets of less hazardous materials to compensate for increased emissions of
more hazardous compounds.
6.1.2  Developing Emissions Caps
       Emissions caps should represent the worst-case scenarios for a facility or a particular
group of processes. The facility  operator should ensure that the emissions cap does not
interfere  with future plant operations.  In determining worst-case scenarios, the applicant
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should consider the quantity of emissions, and in the case of HAP's, the hazard ranking

assigned in Section 112(g) of the Act.

6.1.3 Implementing Emissions Caps
       To illustrate the implementation of emission caps, the following is an example of how

a permitting authority might determine emissions caps for a batch chemical production plant.

             Because of product variability and unpredictability of manufacturing
       demands, [the permitting authority] recognizes that the construction of
       alternative operating scenarios for batch chemical manufacturing facilities
       presents unique challenges for the industry.  These scenarios must be
       constructed and described in the application and resulting Title V permit in a
       manner where emissions are quantifiable and compliance determinations at any
       time are verifiable.  To achieve this end, [the permitting authority]
       recommends that industry identify and develop measurable parametric
       relationships between production rates and emissions from the full array of
       products that may be produced.  Critical parameters that may be considered in
       this relationship may include, but not be limited to, factors such as product
      formulation, production cycle times, temperature of unit operations, reaction
       pressures, flow rates, batch size, air cleaning efficiency, and water/solvent
       temperatures, as applicable. Development of these relationships will permit
       the creation of an emission factor (weight of air emissions per weight of
       product produced) for the particular batch formulation.  Thus, knowing
       historical and planned future production levels, an emissions cap may be
       developed for which compliance can readily be demonstrated.

6.2  EMISSIONS TRADING BASED ON THE SIP RULES

       Emissions trading is an approved method of limiting a source's  emissions under the

SIP.  If a State adopts this option into its SIP, sources within the State may trade increases

and decreases in emissions, provided that no net increase occurs.   Consequently, a company
that has several plants could be afforded some degree of operational flexibility within this
program by trading emissions among sites.  Under the provisions of Section 71.6, the

permittee may use  a 7-day notice to comply with applicable requirements using a SIP's

trading provisions rather than the permit terms addressing those applicable requirements.
The permit must identify which permit terms may be replaced with SIP trading provisions.

Additionally, the SIP trading provisions must be practically enforceable (virtually general

permits within the  SIP).  EPA believes that the SIP review process will ensure  the quality of
the trading provisions.
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6.3 OFF-PERMIT CHANGES
       Section 71.6 of Part 71 provides that States may allow a source to delay applying for
a permit revision when the proposed changes "do not result in the source being in violation
of any permit term or condition but render the source subject to an applicable requirement"
that previously did not apply to the source.  However, the change may not result in a net
increase in allowable emissions of any regulated pollutant at the source.  Additionally, off-
permit changes require that notice be given to the permitting authority at the time the change
takes place. Off-permit changes may not be used for Title I modifications or for
requirements subject to Title IV (the acid rain provisions) of the Act, and the permit shield is
not available for off-permit changes.  (A permit revision for purposes of the acid rain portion
of the permit is governed by 40 CFR Part 72.)   The source is responsible for:  (1) keeping a
record describing the changes that result in emissions of a regulated air pollutant subject to
an applicable requirement but not otherwise regulated by the permit, and the emissions
resulting from these changes; and (2) revising the information when application is made for a
permit renewal.
       One possible downside to using the off-permit change mechanism is that if the change
is later shown to be ineligible for the off-permit, the source is liable for  failing to have
applied for a permit revision from the time of the change.

6.4 EMISSIONS TRADING BASED ON APPLICABLE REQUIREMENTS
       Sources may also  request to trade emissions based on applicable requirements.  The
trading written into a permit must have all of the compliance terms  necessary to make it
enforceable, just like any other compliance scenario.  All Part 71 permits must contain
"testing, recordkeeping, and compliance certification requirements sufficient to assure
compliance." Additionally, where an underlying rule gives the State discretion to implement
trading, the Title V permitting process would require the State to provide for trading,
provided that the trade can be made enforceable, consistent with Title V compliance
requirements.
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6.5 EMISSIONS TRADING BASED ON ECONOMIC INCENTIVES
       Sources may also trade emissions based on economic incentives. In cases where
trading is not already provided for in the permit, no permit revision will be required under
"any economic incentives, marketable permits, emissions trading or other similar programs
or processes approved in an implementation plan" when the plan provides for such trading on
7 days notice. Emissions trading is also allowed for the purpose of complying with the
Federally-enforceable emissions cap that is established in the permit independent of otherwise
applicable requirements.

6.6 ALTERNATIVE OPERATING SCENARIOS
       A permittee may want to be permitted for alternative operating scenarios  from which
it may choose processes and operations.  Although this procedure is technically not
considered part of the operational flexibility provisions,  alternative operating scenarios  do
provide a  form of "operational flexibility," and for that reason, are discussed here.
       Sources that wish to be permitted under the alternative operating scenario scheme
must identify their reasonably anticipated operating scenarios in their permit applications.
The permitting authority will then review the scenarios and approve the ones that meet all
applicable requirements.  Thereafter, no permit revision is needed to switch from one
scenario to the other, thereby simplifying the permitting process for the source and the
permitting authority. However,  the source must contemporaneously record the change in
operating  scenario in a log at the facility.  Additionally, the permitting authority may extend
the permit shield to cover the terms and conditions of each permitted scenario.
       When using the alternative scenario program, an on-site log must be kept and the
source must record in the log contemporaneously with making a change from one operating
scenario to another.
       Finally, alternative operating  scenarios may include emissions  trading within the
facility as allowed under the applicable requirements.  Moreover, the source may ask that the
permitting authority include emissions trading provisions in its permit.
       To illustrate the use of alternative operating scenarios, the following example is
provided for batch chemical production.
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             A pharmaceutical manufacturer produces a number of products.  Many
       of these products can be manufactured using different pieces of equipment
       within the facility. For example, product X can be manufactured in reactor A
       or B.  To describe how alternative operating scenarios may be used to permit
       this operation:

             •  Determine potential emissions for each product/equipment
                combination.

             •  Determine all applicable regulations for each product/equipment
                combination.

             •  Define an operating scenario for each product/equipment
                combination.

             Potential emissions should be based on source testing data, AP-42
       emission factors, or other data such as the EPA document  "Control Techniques
       Guidelines for Batch Processes" (EPA-450/2-78-029).  Other emission factors
       should not be used prior to obtaining approval from the local permitting
       authority or the appropriate EPA Regional Office.   The permit application
       should include scenarios for each product/equipment combination.  The
       alternative operating scenario should clearly identify the applicable
       requirements that apply for each product/equipment combination.   There is no
       need to include alternative operating scenarios for product/equipment
       combinations that do not change the  applicable requirements. A system should
       be implemented to keep contemporaneous records of when products were
       produced in specific pieces of equipment.
6.7 ADVANCE NSR APPROVAL

      Advance New Source Review (NSR) approval is actually a form of alternative

operating scenario that may be available to some permittees in some States.  Advance NSR

approval would allow the operating permit to contain the construction permit; the operating

permit could then authorize a future modification at the facility.  A time-limited authorization

could be updated with ^application.  However, advance NSR may not be an option if the

Part 71 agency and the NSR agency are not the same.
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6.8 GENERAL PERMITS
       To an extent, general permits [as provided for in Part 71.6(d)] allow some form of
operational flexibility.  General permits cover numerous similar sources,  such as gas stations,
dry cleaners, or small printing operations.  The drafting and issuance of the provisions to be
included in the general permits for certain source categories are subject to normal public
review and comment. However, EPA may allow a specific facility or source to operate
under an approved general permit without requiring that public notice procedures be
followed.  Finally, citizens have the right to legally challenge the issuance of individual
general permits. General permits will not be authorized for affected sources under the acid
rain program unless otherwise provided for in regulations promulgated under Title IV of the
Act.

6.9 MAXIMIZING POTENTIAL TO EMIT
       A facility may develop operational flexibility within the Title V permit by maximizing
its PTE. Under this approach, the facility uses the products and operating parameters that
lead to highest emissions in its permit application. The process would only be bounded by
Federal or State emission rate limitations where applicable or limits which would have
required new source review.  This option does not establish new limits if the facility
currently has none; however, it does establish PTE to be used as a basis  for future
modifications.
6.9.1  Impacts - Benefits and Limitations
       Maximizing PTE has advantages from both a compliance and productivity viewpoint.
From a compliance viewpoint, the fact that all processes are permitted to operate at physical
and operational limits minimizes the opportunity for  failing to comply with the permit. From
a productivity viewpoint, the permit will not impede business managers from operating the
equipment at the most profitable and productive levels. The permit is written anticipating
that the equipment will be operated at maximum production levels; thus,  the company is free
to operate the equipment at any desirable level.
       The main limitation to maximizing PTE is that the facility may exceed trigger levels
for additional permitting or reporting requirements.  For example, while increases in the rate
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or hours of production for existing equipment are exempt from the prevention of significant
deterioration (PSD) program in Title I, Part C, of the Act, introduction of new raw materials
or products, or modification of equipment, could be considered modifications under the PSD
rule, and could result in requiring the company to obtain a PSD permit before the
modifications may be undertaken. Care must also be taken to describe the maximum
emission rate on a time basis (usually hourly or annually),  consistent with agency
requirements. For processes with broad fluctuations in instantaneous emissions rates (e.g., a
batch process where emissions reach a peak for part of the production cycle), sources may
report maximum emission rates rather than actual emission rates.  The averaging period (i.e.,
length of time of emissions testing) for determining the emissions rates may be negotiated
with the permitting authority.
6.9.2 Guidelines to Maximizing PTE
      The methods for maximizing PTE are the same at those used for estimating PTE.
The focus of the PTE maximization effort is on identifying the variables that will increase
the facility PTE.  Typical methods of maximizing emissions are summarized in Table 6-1.

            TABLE 6-1.  TYPICAL FACTORS USED FOR MAXIMIZING
                               POTENTIAL TO EMIT
Factor
Production level
Hours of operation
Efficiency of control equipment
Product mix (for equipment processing more than
one end product)
Chemical selection
Activities mat the equipment is designed to
accommodate
Change Required to Maximize PTE
Maximize
Maximize (8,760 hr/yr)
Minimize (No credit is given for presence of
control device if facility has no enforceable limits)
Select product resulting in highest emission rate
Consider chemical with highest hazard, as listed in
Section 112(g)
Use most expansive design and process description
that may be logically defended
6.9.3 Examples of Maximizing PTE
      Two examples of maximizing PTE are provided below in Figures 6-1 and 6-2.
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                MAXIMIZING PTE FOR HEALTH PRODUCTS

Scenario Description

      A manufacturer of packaged intravenous fluid bags produces the product in a
batch mixer.  The batch process, which has a 10 hour cycle time, results in a
maximum emission rate of 100 pounds volatile organic compounds (VOC) per batch
produced.  Determine the maximum annual PTE for this process.


Approach

      1.    Determine the maximum number of batches that the equipment may
            process in one year.

      2.    Calculate the emissions from the maximum annual number of batches.


Calculation

      1 .    Determine the maximum number of batches per year:


                                       876 batch^yr
                        10 his/batch

      2.     Determine maximum emissions from this process:
           876 batches    100 Ibs VOC      ton      43.8 tons VOC
              year          batch       2,000 Ibs        year
Source: TRC Environmental Corporation (see acknowledgements in Preface)
            Figure 6-1. Maximizing PTE example for health products.
                                    6-9

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            MAXIMIZING PTE FOR ELECTRONICS PRODUCTIONS

Scenario Description

       A manufacturer of printed circuit boards applies a screen-printed surface
coating as an integral part of the production process. The solvent-based surface
coating is cured in a vented infrared tunnel oven with the emissions controlled by a
thermal oxidation unit with a control efficiency of 99.2%.  For purposes of this
example, the control equipment is not considered Federally enforceable, and therefore,
is not factored into the calculation of PTE.  The coated substrates are 12 inches
square, and the coatings vary from 40 to 60 weight percent VOC and are applied no
more than 7 mils (0.007 inches) thick (wet measure).  The operating capacity of the
screen printers is 800 cycles per hour. The coating has a material density of 10
pounds per gallon.  Calculate the maximum annual PTE from this process.
Approach

       1.

       2.



Calculation
             Calculate the maximum VOC content of each print cycle.

             Calculate the emissions from the maximum annual number of print
             cycles.
       1.     Determine the maximum VOC content of each print cycle.
60% x
                                  x 0.007 in x
                                                 »L
                                                          0.0262 Ibs
                   gal      cycle               231 in3      cycle

      2.     Determine maximum emissions from this process:


    0.0262 Ibs VOC x    ton    x 8.760 hts   800 cycles _ 91.7 tons VOC
         cycle         2,000 Ibs      year          hr             year


Source:  TRC Environmental Corporation (see acknowledgements in Preface)


         Figure 6-2.  Maximizing PTE example for electronics production.
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   7.0 HAZARDOUS AIR POLLUTION PROGRAM REQUIREMENTS FOR TITLE V

       Under the Clean Air Act Amendments of 1990, EPA is required to regulate large or
"major" industrial facilities that emit one or more of 189 listed hazardous air pollutants
(HAP's).  Major sources are those that have the potential to emit 10 tons/year or more of a
listed pollutant or 25 tons/yr or more of a combination of pollutants.  On July 16,  1992,
EPA published a list of industrial source categories that emit one or more of these hazardous
air pollutants.  For listed industrial categories of "major" sources, EPA is required to
develop standards for these sources that will require the  application of stringent controls,
known as  maximum achievable control technology (MACT).  Development of these standards
began shortly after the  1990 Clean Air Act Amendments, and the regulatory development
process is scheduled to continue through  the year 2000.
       Title V operating permit applications must address requirements for substances that
are considered to be hazardous under Title m of the Act.  Sections 112(g), (j), and (r) of the
Clean Air Act Amendments impose new  requirements on sources applying for operating
permits.  These programs are discussed below.

7.1 SECTION 112(g) REQUIREMENTS
       Section 112(g) establishes requirements for owners or operators who intend to
construct,  reconstruct, or modify a major source of HAP's.  The section 112(g) provision is
designed to ensure that emissions of toxic air pollutants do not increase if a facility is
constructed or reconstructed before EPA issues  a MACT regulation for that particular
category of sources or facilities.  In effect, the  112(g) provision is a transitional measure to
ensure that facilities adequately protect the public from toxic air pollutants until EPA issues a
MACT standard that applies to the facility in question.
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7.1.1 Components of the Draft Final Rule
       A schematic diagram of the proposed Section 112(g) process is provided in
Figure 7-1.  EPA's draft final rule substantially streamlines the 112(g) process it proposed in
March 1994 by limiting the 112(g) requirements to the construction of new facilities and the
reconstruction (rebuilding) of large sources of toxic air pollutants at existing facilities.
Newly constructed facilities or reconstructed units or sources at existing facilities would be
subject to 112(g) requirements if they have the potential to emit HAP's above the major
source thresholds.  "Reconstruction"  is defined as a change that costs 50 percent of the cost
of constructing a new unit or source like the one  being rebuilt.  Sources or facilities subject
to 112(g) would be subject to stringent air pollution control requirements, referred to as
"new source MACT."  Under the Clean Air Act, new source MACT control is required to
be no less stringent than the best controlled  similar source or facility. EPA anticipates that
the new source MACT requirements  will be equally or more  stringent than the requirements
in the MACT standard that EPA will later issue for the industrial source category in
question.  However,  should the new source  MACT requirements prove to be less stringent
than the air toxics regulation that EPA later issues, the source or facility would be provided
additional time to comply with the MACT standard. The draft final rule provides a
transition period for States that have a preconstruction review process already in place to
make adjustments in  their programs to comply  with 112(g) requirements. This transition
period would prevent project delays for sources that were about to commence construction at
the time this rule is issued.
7.1.2 Case-by-Case  MACT Determination
       When no emission standard has been promulgated under Section  112(d) of the Act,
MACT determinations  concerning such sources must be made on a case-by-case basis.  The
permitting authority has discretion to prescribe those procedures to be used in making a case-
by-case MACT determination for constructed or reconstructed major sources (except that the
owner or operator of the source may elect to use the Title V permitting process).  If a
permitting authority establishes, or has already established, preconstruction review
procedures for sources to follow, then these procedures may be used in lieu of the
procedures described in the 112(g) rule, so long as they provide for public  participation in
                                          7-2

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           Yes
     Major emitting
       greenfield
     construction?
                                   No
                     Will new stationary sources
                     be integrated upon startup
                    into existing controls that the
                    permitting authority considers
                    to be one of the best controls
                             for HAPs
Section 112(g)
   applies

                               Yes
              No
                     Is the new stationary source
                     an integral component of a
                     process or production unit?
                                                Yes
                                   Section 112(g)
                                   does not apply
                                   No
          No
Is the PTE increase of the
new stationary source at or
  below the major source
       threshold?
Yes
            Figure 7-1.  Schematic of Section 112(g) process.
                                 7-3

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the case-by-case MACT determination and to ensure that a final MACT determination will be
made prior to construction or reconstruction.
       As promulgated, 40 CFR Section 63.53 requires that owners/operators submit the
following types of information in applications for case-by-case MACT determinations:
       1.  A description of the major source and source category;
       2.  Descriptions of the emission units requiring MACT determinations, and an
explanation of whether new-source and/or existing-source MACT is required (including
construction and start-up dates for new sources);
       3.  Lists of HAP's emitted by each emission unit and corresponding emission rates, as
well as estimates of uncontrolled and controlled emission rates for the entire source; and
       4.  Any existing federally enforceable emission limitations applicable to the source.
       If EPA or  the permitting authority has issued guidance or distributed information
establishing the MACT "floor" for the source category by the statutory deadline, the
application must also include the following information:
       1.  Recommended emission limitations for the source and a description of the selected
MACT candidate  (including technical information such as control efficiency, operational
parameters, and size);
       2.  Supporting technical documentation on alternative control technologies also
believed capable of satisfying the emission limitation; and
       3.  A list of parameters to be monitored (and monitoring frequency) to demonstrate
continuous compliance  with the selected emission limitation.
       If the information on the MACT floor is not publicly available, the source may omit
the above information.  In this  case, the permitting authority must make a case-by-case
determination based on the facility description provided by the source. EPA strongly
encourages applicants to recommend MACT for their facility, even though a requirement to
do so is not included in the Part 63, Subpart B regulations.  Finally, facility
owners/operators must  submit a copy of the application to a national database for MACT
determinations.
                                         7-4

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7.1.3 Determining MACT-Equivalent Limitations
      Determining case-by-case MACT will be simplest in cases where:  (1) EPA has
already proposed a standard, or (2) a "blanket" MACT determination has been issued.  For
example, when a MACT standard has been proposed but not finalized within 18 months of
the applicable deadline, the standard as proposed would represent the appropriate level of
control for the source category subject to case-by-case MACT determination.  Establishing
MACT for categories not affected by the previous two scenarios will involve an application,
public comment, and agency approval process.  Note that if the applicable MACT standard
has not been issued and  EPA has missed the statutory deadline,  a case-by-case determination
must be conducted under the "MACT hammer" provisions mandated by Clean Air Act
Section 112(j).
7.1.4 MACT Hammer - Section 112(ft
      Section 112(j) of the Act provides for a "MACT hammer" if EPA fails to issue a
MACT standard by the statutory deadline.  This provision has the effect of requiring affected
sources to install MACT equivalent limitations even when MACT standards for the particular
source category have not yet been promulgated. Essentially, the MACT hammer
requirements apply in a  given State only if EPA is required to issue a MACT standard for a
particular source category, but does not do so within 18 months of its deadline.  In this case,
the permitting authority  must make a case-by-case MACT determination, requiring the HAP
source to comply with emission limits at least as stringent as the MACT standard would have
been had it been promulgated on time.
      Facilities must apply for Section 112(j) case-by-case MACT determinations 18 months
after EPA misses the applicable source category MACT deadline. The mechanism for
MACT review depends in part on whether the affected emission unit is new or existing; new
sources are subject to more stringent MACT levels than existing ones.  In most cases,
Section 112(j) MACT approval will be secured through the operating permit program.
However, other approval venues are possible.  State agencies may issue a blanket MACT
determination for an entire source category for  which Section 112(j) has been triggered.
                                         7-5

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7.1.5 MACT Approval
       If MACT is approved by the permitting authority, the "Notice of MACT Approval"
(or a new or revised operating permit) would include the following information:
       1.  A HAP emission standard or limitation found to be equivalent to the MACT
standard that would have been promulgated if EPA had met the required schedule;
       2.  Appropriate notification, operation and maintenance, performance testing,
monitoring, reporting, and recordkeeping requirements;
       3.  Additional emission limits, production limits, operational limits, or other terms
and conditions necessary to ensure Federal enforceability;
       4.  Requirements for the facility to comply with specified provisions of the general
NESHAP regulations codified in Subpart A of Part 63 (discussed below); and
       5.  The applicable compliance deadline.
       What happens when EPA eventually issues the required MACT?  Two scenarios are
possible.  First, if the standard is issued before a permit reflecting the case-by-case MACT
determination has been approved, then the permit must contain the MACT requirements as
defined by the State's transition process.  Second, if the standard is issued after the operating
permit is approved, the permit must be revised to reflect the new standard upon its next
renewal.

7.2  SECTION 112(r) REQUIREMENTS
       Section 112(r) of the Act requires that facilities prepare a risk management plan to
prevent and mitigate the consequences of accidental releases. The Act  indicates that
regulations under Section 112(r) are to be enforced in the same manner as MACT standards
established under Section 112(d). Section 112(r)(7)(E)  states that "[a]fter the effective date
of any regulations or requirement imposed under this subsection, it shall be unlawful for any
person to  operate any stationary source subject to such regulation or  requirement in violation
of such regulation or requirement.  Each regulation or requirement under this subsection
shall for the purposes of Sections 113, 114, 116, 120, 304, and 307  and other enforcement
provisions of this Act, be treated  as a standard in effect under Subsection (d)."  Thus, States
                                         7-6

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should consider the Section 112(r) regulations as they would emission standards established
under Section 112(d).
       The requirements of the Section 112(r) program have been partially promulgated in 40
CFR Part 68, Chemical Accident Prevention Provisions.  This regulation,  when complete,
will contain three subparts consisting of the general requirements of the program
(Subpart A), the risk management plan requirements (Subpart B),  and the regulated
substances for accidental release prevention (Subpart C).  Subparts A and C of 40 CFR
Part 68 were promulgated on January 31, 1994.  Subpart B was proposed  on October 20,
1993, but has not been finalized.
       A list of regulated substances and threshold quantities that will identify facilities
subject to chemical accident prevention regulations can be found in 59 FR 4478 (January 31,
1994).  The list is composed of three categories:  77 toxic substances, 63 flammable
substances, and explosive substances with a mass explosion hazard as listed by the U.S.
Department of Transportation.  Threshold quantities are established for toxic substances
ranging from 500 to 20,000 Ib.  For all listed flammable substances, the threshold quantity is
established at 10,000 Ib. For explosive substances, the threshold quantity is 5,000 Ib.
       The threshold quantities apply to the maximum total quantity of a substance in a
process (i.e., the maximum total quantity, at any one time, in a single vessel, in a group of
interconnected  vessels, or in several vessels that could potentially be involved at one time in
an accidental release).  Substances in mixtures would be exempted from the threshold
determination if they represent less than one percent of the mixture by weight.  EPA also
proposed to exempt substances if:  (1) they are part of articles; (2) they are used as  structural
components;  (3) they are used for janitorial maintenance; or (4) they are found in consumer
products, process water, or in water or air from the environment or municipal sources.
Also, if the concentration of the regulated substance in the mixture is one percent or greater
by weight, but  the owner or operator can demonstrate that the partial pressure of the
regulated substances in the mixture (solution) under handling or storage conditions in any
portion of the process is less than 10 millimeters of mercury (mm Hg), the amount of the
substance in the mixture in that portion of the process need not be considered when
determining whether more than a threshold quantity is present at the stationary source.
                                          7-7

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       Sources that expect to use, store, or otherwise handle some of the regulated
substances (e.g., fuel constituents) in quantities that exceed the specified thresholds will be
required to develop and implement a risk management program that meets the new
requirements of Subpart B.  Although the requirements for this program are not final, the
proposed rule requires affected sources to register a risk management plan within 3 years
after the date of the final rule publication. The risk management plan needs to be registered
with EPA; provided to the Chemical Safety and Hazard Investigation Board, State
governments, and local planning authorities; and made available to the public.
       The Part 71 permit application only requires the source to indicate whether it is
subject to Section 112(r) and, if it is subject, to agree to submit the plan. (Note:  detailed
information  is not required,  as discussed in the "White Paper" in Appendix A.) Current
Part 71  guidance indicates that the source must agree to permit conditions that assure:
(1) development and submittal of any required risk management plan (RMP) to the
appropriate authority, and (2) annual certification by the responsible official as to whether the
RMP is being properly implemented.  Sources are also required to submit compliance
schedules when compliance with all Section 112(r) requirements has not been  achieved prior
to permit issuance.
                                          7-8

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                           8.0 INFORMATION SOURCES
       Various EPA hotlines, bulletin boards, and information sources are listed below.

Acid Rain Hotline — Records questions and disseminates EPA documents related to the Acid
  Rain program.  Phone:  (617) 674-7377.

Air Risk Information — Assists state and local air pollution control agencies and EPA
  Regional Offices with technical matters pertaining to health, exposure, and risk assessment
  of air pollutants.  Phone:  (919)541-0888.

Control Technology Center — Provides technical support and guidance on air pollution
  emissions and control technology, as well as information on the Federal Small Business
  Assistance Program.  The CTC operates a hotline and supports the RACT/BACT/LAER
  Clearinghouse.  Phone:  (919) 541-0900.

Emission Factor Assistance Hotline (INFOCHIEF) — Provides information on various
  emissions data bases and reference documents, such as SPECIATE, FIRE, AIR CHIEF,
  Locating and Estimating documents, and EPA's compilation of emission factors (AP-42).
  Phone:  (919)541-5285.

Emission Factor Clearinghouse — Provides a means of exchanging  information on air
  pollution control matters; addresses the criteria pollutants and toxic substances from
  stationary and area sources as well as mobile sources. Phone:  (919) 541-5477.

EPA Library — Provides  copies of some EPA documents and other reference materials.
  Phone:  (919) 541-2777.

Internet Access — A wide variety of information regarding EPA programs and publications
  is accessible through the Internet.  Two fact sheets on EPA access through the Internet are
  presented at the end of this section.

National Air Toxics Information Clearinghouse — Emphasizes air toxics (noncriteria
  pollutants) and the development of air toxics control programs.  Phone: (919) 541-0850.
                                         8-1

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Office of Air Quality Planning and Standards (OAOPS) Technology Transfer Network (TTN)
  Bulletin Board System — A network of electronic bulletin boards providing information
  and technology exchange on pollution control matters. The seven bulletin boards are: (1)
  OAQPS, (2) emission Measurement Technical Information Center (EMTIC),  (3) Support
  Center for Regulatory Air Models (SCRAM),  (4) Clearinghouse for Inventories/Emission
  Factors (CHIEF), (5) Clean Air Act Amendments (CAAA), (6) Air Pollution Training
  Institute (APTI), and (7) Control Technology Center (CTC). Phone (via modem): (919)
  541-5742.  Help Line: (919) 541-5384.  (Two summary pages from EPA's TTN brochure
  are presented at the end of this section.)

Pollution Prevention Information Clearinghouse — Provides access to information in EPA's
  pollution prevention information exchange system (PIES).  Phone:  (703)  821-4800.

Reasonably Available Control Technology. Best Available Control TechnologyT and Lowest
  Achievable Emission Rate (RACT/BACT/LAER) Clearinghouse — Emphasizes air
  pollution control technology related to new source review permitting requirements.  Phone:
  (919) 541-0800.

Stratospheric Ozone Information Hotline — Offers consultation on ozone protection
  regulations and requirements under Title VI of the Clean Air Act.
  Phone: (800)296-1996.
                                        8-2

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       Environmental Information  at Your Fingertips:

       	EPA Offerings on the Internet	
 Below is a sampling of some of the publications, resources, and services available on EPA's public access server.
 INFORMATION RESOURCES
       •  Directories and guides
       •  EPA National Online Library System (OLS) catalog
       •  Publications catalog
	•  Bulletin boards	
 DATA SYSTEMS
       •  ENVIROFACTS
       •  STORET
	•  AIRS	
 ADMINISTRATIVE INFORMATION
       •  EPA initiatives; policy and strategy documents
       •  Handbooks and manuals
 LEGISLATION AND REGULATIONS
       •  Federal Register notices, including environmental impact statements and
          general/meeting information.
 PROGRAM INFORMATION
       •  World Wide Web access to the following:
          - Environmental Monitoring and Assessment Program (EMAP)
          - Gulf of Mexico Program
          - National Estuaries Program
          - Great Lakes Information Network
 RESEARCH AND DEVELOPMENT
       •  Scientific, research, and technical  reports
 NEWS AND CURRENT EVENTS
       •  Press releases
       •  Speeches
       •  Journals and newsletters
 CONTRACTS, GRANTS, AND FINANCING
       •  Grants and fellowships
       •  Requests for proposals (RFPs)
       •  Commerce Business Daily announcements
 CONSUMER INFORMATION
       •  Guides and handbooks
       •  UV index document
       •  Energy Star Compliant Product Database
                                       8-3

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               Connecting to  EPA on  the Internet
 EPA has established an access server with connectivity available via the Internet. One's method of connecting to the
 EPA Public Access Server may be determined by the type of Internet access available.  This document describes the
 various routes. If you are unsure about how to access the Internet, please contact a local Internet provider.
 GOPHER [gopher.epa.gov]
        This is a hierarchical menu system devised by the University of Minnesota.  The local
        provider must have gopher client software.  The host name is gopher.epa.gov.  The port
        number, if needed, is 70.
 WORLD WIDE WEB. WWW [http://www.epa. gov/\
        WWW provides hypertext access to EPA information, including information found on the
        EPA gopher. There are a number of WWW clients, such as Lynx (no graphics) or
        Mosaic and Netscape (both with graphics) that one can use to access this server.
 WIDE AREA INFORMATION SERVER [wais.epa.gov]
        EPA also provides keyword search  capability through the WAIS client on the public
	access server.	
 FILE TRANSFER PROTOCOL [ftp.epa.gov]
        The files that physically reside on the EPA Public Access Server are also available via
        anonymous file transfer protocol from the systemftp.epa.gov in the directory pub/gopher.
        The file INDEX in that directory will assist in locating the appropriate subdirectory to
        obtain the data required.
 MAILING LISTS (Listserver)
        EPA maintains a number of mailing lists via listserver. Some of the mailing lists
        supported by listserver are private and subscription access may be limited. For a full
        listing of lists available to the public, send a message to:

                               listserver@unixmail.rtpnc.epa.gov

        and include in the body of the message the single word list.  One can subscribe to a list
        by sending a message to the address provided above, including in the body of the message
        a line:

                      subscribe < listname >  

        where   is the name of the mailing list,  and   and
	 are the user's respective names.	
 For assistance with EPA's Public Access Server, please contact EPA via e-mail at internetjsupport®
 unixmail.rtpnc.epa.gov.  For assistance with finding EPA information, please contact EPA via e-mail at
 public-access@epamail. epa.gov.
                                             8-4

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How do I access it?
  Set up your computer, call the network, and register
  on-line. Then you're free to use the network when-
  ever you need to. Follow the steps below.

  STEP 1  Install a modem and communications software
  on your computer, if you don't already have them.
  There are a wide variety to choose from.

  STEP 2  Set the following parameters on your communi-
  cations software:

     Data Bits:   8
     Parity:     N
     Stop Bits:   1
     Terminal Emulation: VT100 or VT/ANSI
     Duplex:   FULL

  STEP 3  Call the network using your communications
  software:
  (919) 541-5742 for modems up to 14,400 bps

  STEP 4  Log on to the system and select  from the
  Unregistered Users main menu and answer the questions
  on the screen.
Why use it?
  It's easy! You log on, answer questions, and select
  menu options. It's useful! You'll discover all kinds
  of information and tools that you can use in your job.
  // saves time! It saves money! It saves paper! It
  saves headaches! Say goodbye to phone tag. Leave
  and receive messages anytime the network is up.
  Exchange information over long distances and at high
  speed without waiting for the mail to arrive. It's
  worldwide!  You can communicate with people all
  over the world—people you know and people you
  don't know—who are involved in air pollution control.
  It's always available! It's got it all! Eighteen
  different bulletin boards are up and running; more are
  on the way. It's readily accessible! Access the latest
  information whenever you need it.
           (919)541-5742
          for modems up to 14,400 bps

            Internet Access
         TELNET ttnbbs.rtpnc.epa.gov
 Office   of
Air
 Quality
Planning  &
Standards
 Technology
 Transfer
Network
     OAQPS TIN = UNREGISTERED USERS = MAIN MENU
    This menu provides DESCRIPTIONS of the TTN Bulletin Boards, access
    to SYSTEM UTILITIES and the option to REGISTER
        Descriptions of OAQPS TTN Bulletin Board Systems

       ystem Utilities

       egistration       <=Register for OAQPS TTN
                  oodbye
When can I use it?	
   24 hours a day, 7 days a week except Monday morning
   8-12 EST, when the system is down for maintenance
   and backup.

Who  do  I call?	
   If you need help accessing the system, call the help
   desk at (919) 541-5384 in Research Triangle Park,
   North Carolina during business hours, 1-5 EST.
  After this information is accepted, you will see the
  Registered Users menu. From here you can access
  any of the bulletin board systems.
  This project has been funded wholly or in part by the United States Environmental
  Protection Agency under Assistance Agreement CT-901889 to North Carolina
  State University The contents of this document do not necessarily reflect the views
  and policies of the Environmental Protection Agency, nor does any mention of trade
  names or commercial products constitute endorsement or recommendation of use
                                                                 Printed on recycled paper
                                                                                                                                    &EPA
                                                                    U S Environmental Protection Agency
                                                                       Research Triangle  Park, NC   I/94

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What is OAQPS TTN?
   OAQPS, the EPA Office of Air Quality Planning and
   Standards, provides information and technical support
   on air pollution control. Its four divisions—Air Quality
   Management, Emission Standards, Technical Support,
   and Stationary Source Compliance—provide services
   to EPA regional offices, state and local agencies,
   consultants, industry, and the general public. These
   services include clearinghouses, conferences, reports,
   manuals, newsletters, support centers, workshops,
   classroom training, self-instructional courses, and
   TTN.

   TTN, Technology Transfer Network, is a network of
   electronic bulletin boards developed and operated by
   OAQPS. The network provides information and
   technology exchange in different areas of air pollution
   control, ranging from emission test methods to
   regulatory air pollution models. The service is free,
   except for the cost of using the phone.


How does it work?	

   You access the network from your own computer
   through the use of a modem and communications
   software. Your computer connects with a computer at
   EPA through the phone  lines. Once you're on the
   network, you've got all the tools,  technology, and
   information in any of the bulletin boards available at
   your fingertips. You can find tools to estimate air
   pollutant emissions, download computer code for
   regulatory air models, read a Title summary of the
   1990 Clean Air Act, find a course offered by the Air
   Pollution Training Institute, or request technical
   support in implementing an air pollution control
   program. You can transfer files, communicate with
   other users, leave a question for others to answer, or
   upload a file for others to use.


Who can use it?	

   Anyone in the world wanting to exchange information
   about air pollution, including personnel in EPA, state
   and local agencies, the private sector, and foreign
   countries.
 What's on the network?
 Eighteen bulletin boards are currently available or planned on the network.
EMTIC - Emission Measurement Technical Infor-
   mation Center provides access to emission test
   methods and testing information for the develop-
   ment and enforcement of national, state, and local
   emission prevention and control programs.

AMTIC - Ambient Monitoring Technology Infor-
   mation Center provides information and all federal
   regulations pertaining to ambient monitoring.
   Information on monitoring methodology, field and
   laboratory studies are also included.

AIRS - Aerometric Information Retrieval System
   provides information and documentation on the use
   and acquisition of air quality and emissions data
   from the AIRS mainframe computer.

BLIS - RACT/BACT/LAER Information Systems is
   a compilation of air permits from local, state, and
   regional air pollution control agencies.

NATICH - National Air Toxics Information Clear-
   inghouse contains information submitted by  EPA,
   and state and local agencies regarding their air
   toxics programs to facilitate the exchange of
   information among government agencies.

COMPLI - Stationary Source Compliance provides
   stationary source and asbestos compliance policy
   and guidance information.

NSR - New Source Review offers guidance and
   technical information within the NSR permitting
   community.

SCRAM - Support Center for Regulatory Air
   Models provides regulatory air quality model
   computer code, meteorological data, documenta-
   tion, as well'as modeling guidance.

CHIEF - Clearinghouse for Inventories/Emission
   Factors contains the latest information on air
   emission inventories and emission factors. It
   provides access to tools for estimating emissions of
   air pollutants and performing air emission invento-
   ries for both criteria and toxic pollutants.
CAAA - Clean Air Act Amendments has information
   on the Clean Air Act amendments of 1990, regulatory
   requirements, implementation programs, criteria
   pollutants, and technical analyses.

APTI - Air Pollution Training Institute describes
   current course offerings on air pollution, including
   curriculum, schedules, locations, costs, and
   up-to-date changes.

CTC - Control Technology Center offers free engi-
   neering assistance, a hotline, and technical guidance
   to state and local air pollution control agencies in
   implementing air pollution control programs.

USC - User Support Center provides support for users
   by offering information on modems, downloading,
   communication software and other communications
   issues. It also provides a public message area for
   users to share information related to the use of the
   TTN.

ORIA - Office of Radiation and Indoor Air dissemi-
   nates information to state and local governments,
   industry, professional groups, and citizens to promote
   actions to reduce exposure to harmful levels of
   radiation and indoor air pollutants.

USCAN - US/Canada Air Quality Agreement
   provides for the exchange of permitting information
   between the states bordering the U.S. and Canada.

OMS - Office of Mobile Sources provides information
   pertaining to mobile source emissions, including
   regulations, test results, models, and guidance.

AIRISC - Air RISC provides technical assistance  and
   information primarily to state and local air pollution
   control  agencies in areas of health, risk, and exposure
   assessment for toxic and criteria pollutants.

SBAP - Small Business Assistance Program provides
   support to state and local small business assistance
   programs by serving as a communications network to
   share materials as well as new federal rules that have
   been developed related to small business issues.

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  APPENDIX A.




EPA MEMORANDA

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                             APPENDIX A CONTENTS
                           Subject

White Paper for Streamlined Development of Part 70 Permit
Applications

White Paper Number 2 for Improved Implementation of the Part 70
Operating Permits Program

Definition of Regulated Air Pollutant for Purposes of Title V

CAA Section 112(r) Final Rule on List & Thresholds

Definition of Regulated Pollutant for Particulate Matter for
Purposes of Tide V

Consideration of Fugitive Emissions in Major Source
Determinations
Date

July 10, 1995


March 5, 1996


April 26, 1993

January 26, 1994

October 16, 1995


March 8, 1994
Options for Limiting the Potential to Emit (PTE) of a Stationary
Source Under Section 112 and Title V of the Clean Air Act (Act)
January 25, 1995

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                          July  10,  1995
MEMORANDUM

SUBJECT:  White Paper for Streamlined Development of Part  70
          Permit Applications

FROM:     Lydia N. Wegman, Deputy Director /s/
          Office of Air Quality Planning and Standards  (MD-10)

TO:       Director, Air, Pesticides and Toxics
            Management Division, Regions I and IV
          Director, Air and Waste Management Division,
           . Region II
          Director, Air, Radiation and Toxics Division,
            Region III
          Director, Air and Radiation Division,
            Region V
          Director, Air, Pesticides and Toxics Division,
            Region VI
          Director, Air and Toxics Division,
            Regions VII, VIII, IX, and X

     Please find attached a White Paper on Part 70 permit
applications.  The paper is designed to streamline and simplify
the development of part 70 permit applications.  The guidance was
developed to respond to the concerns of industry and permitting
authorities that preparation of initial permit applications was
proving more costly and burdensome than necessary to achieve the
goals of the Title V permit program.

     The White Paper provides several streamlining improvements.
Among them,  it allows industry to:

        Provide emissions descriptions,  and not emissions
        estimates,  for emissions not regulated at the source,
        unless such estimates are needed for other purposes such
        as calculating permit fees;

        Submit checklists,  rather than emission descriptions,  for
        insignificant activities based on size/production rate
        and for risk management plans potentially owed under
        section 112(r);

        Provide citations for applicable requirements,  with
        qualitative descriptions for each emissions unit,  and for
        prior new source review (NSR)  permits;

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        Exclude certain trivial and short-term activities from
        permit applications;

        Provide group treatment for activities subject to certain
        generally-applicable requirements;

        Certify compliance status without requiring re-
        consideration of previous applicability decisions;

        Use the Part 70 permit process to identify
        environmentally significant terms of NSR permits, which
        should be incorporated into the part 70 permit as
        federally-enforceable terms; and

        Submit tons per year estimates only where meaningful to
        do so and not, for example, for section 112(r)-only
        pollutants; such estimates should be based on generally-
        available information rather than new studies or testing.

     There is an immediate need for the implementation of this
guidance.  Increasing numbers of sources are becoming subject to
the requirement to file a complete part 70 application as more
State part 70 programs are approved.  I strongly encourage you to
work with your States to effect near-term use of the White Paper
guidance to streamline the application process.

     I want to thank you and your staff for your support in
developing this guidance and invite your suggestions on what
additional guidance is needed to improve further the initial
implementation of title V.  If you should have any questions
regarding the attached guidance,  please contact Michael Trutna at
(919) 541-5345 or Jeff Herring at (919) 541-3195.

Attachment

cc:  M. Trutna (MD-12)
     J. Herring (MD-12)
     A. Eckert (2344)
     J. Domike (2242A)
     A. Schwartz (2344)

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                    WHITE PAPER FOR

STREAMLINED DEVELOPMENT  OF PART 70 PERMIT APPLICATIONS
         U.S. ENVIRONMENTAL PROTECTION AGENCY

     OFFICE OF AIR QUALITY PLANNING AND  STANDARDS


                     July 10,  1995'
    Contacts:  Michael Trutna (919)  541-5345
               Jeff Herring   (919)  541-3195

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                        EPA WHITE PAPER FOR

      STREAMLINED DEVELOPMENT OF PART 70 PERMIT APPLICATIONS

                           July 10,  1995


 I.   INTRODUCTION

     The EPA  is issuing this  guidance  to enable  States  to  take
 immediate steps to  reduce  the costs of preparing and  reviewing
 initial part  70 permit  applications.   A perceived lack  of  clarity
 in these requirements has  led to an unintended escalation  in
 permit application  costs.   Too often,  sources have felt compelled
 to make conservative assumptions to assure themselves of
 receiving the "application shield"  and avoiding  enforcement
 actions.

     Title V  of the Clean  Air Act  (the Act) and  its implementing
 regulations in part 70  set forth minimum requirements for  State
 operating permit programs.  .In general, this program  was not
 intended by Congress to be the source  of new substantive
 requirements.  Rather,  operating permits required by  title V are
 meant to accomplish the largely procedural task  of identifying
 and  recording existing  substantive  requirements  applicable to
 regulated sources and to assure compliance with  these existing
 requirements.  Accordingly, operating  permits and their
 accompanying  applications  should be vehicles for defining
 existing compliance obligations rather than for  imposing new
 requirements  or accomplishing other objectives.

     There is an immediate need for this guidance.  Most States
 and  those local air pollution control  agencies participating in
 the  program (hereinafter referred to as "States")  are expected to
 receive approval by the fall  of 1995 of their part 70 operating
 permit programs to  implement  title  V of the Act.   As  a  result,
 most sources  are in the process of  preparing their initial
 applications,  a number  of  sources have  already submitted their
 initial applications, and  a few part 70 permits  have  already been
 issued.  As programs start  to be implemented, concerns  are being
 raised by States and sources  as to  the  expectations for complete
 permit applications and permit  content, the intended  scope of the
 program,  and  the respective responsibilities of  sources,
 permitting authorities,  and the Environmental. Protection Agency
 (EPA) in making implementation  decisions in accomplishing permit
 issuance.

     The EPA  recognizes  that  the burden for filing a  complete
 application may vary significantly  among States as does  the
 nature of their applicable requirements, status of source
 compliance,  air quality  conditions, the type of permit  fee
 schedule,  and the size  and complexity of their industry.
 However,  EPA believes that the  mentioned problems, if
 unaddressed,  would  threaten implementation of the  title V
program,  and  thus warrant a timely  response.  The  clarifications
 contained in  this policy statement  are made under  the current
part 70 regulations and  should  typically not require  State

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rulemaking.  The EPA strongly urges States to allow sources to
take near term advantage of the flexibility provided by this
paper, particularly during the initial implementation phase of
the program.  It is imperative that the provisions and
clarifications of this paper are implemented by States as quickly
as possible.  Most States need not wait for EPA approval before
implementing this guidance, however they are encouraged to
consult with the appropriate EPA Regional Office as they adjust
implementation of their programs.

     Section II of this paper articulates how part 70 allows
permitting authorities considerable flexibility to make decisions
regarding the completeness of applications and their adequacy to
support initial permit issuance.  This guidance makes clear that
the part 70 rules do not impose unreasonable permit application
preparation burdens.  In particular, it accomplishes application
streamlining by enabling and encouraging the use of:

          Tons per year (tpy)  estimates-for emissions units and
          pollutant combinations subject to applicable
          requirements, and only where meaningful to do so (e.g.,
          not for section 112(r)-only pollutants); such estimates
          can be based on generally-available information rather
          than new studies or testing;

          Emissions descriptions, not estimates,  for emissions
          not regulated at the source (unless needed for permit
          fee calculation,  for purposes of establishing a permit
          shield or a plantwide applicability limit (PAL),  or for
          resolution of applicable requirement coverage or major
          source status);

          Checklists rather than emission descriptions for
          insignificant activities based on size/production rate
          and risk management plans potentially owed under
          section 112(r);

          Exclusions for certain trivial  and short-term
          activities from permit applications (see Attachment A);

          Group treatment for activities  subject  to certain
          generally-applicable requirements;

          Part 70 permit process to reconcile which terms of
          existing new source review (NSR)  permits should be
          incorporated into the part 70 permit as federally-
          enforceable terms;

          Citations for applicable requirements with qualitative
          descriptions for each emissions unit,  and for prior NSR
          permits as they may be revised; and

          Certifications of compliance status which do not
          require re-evaluation of previous applicability
          decisions.

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      This  paper affirms EPA's strong commitment  to  successful
 program implementation.  It is the first  in  a  series  of  policy
 statements intended to alleviate known implementation concerns
 within the framework of the existing part 70 regulations.   At  the
 same  time,  the  Agency is developing rulemaking which  will  afford
 a  new streamlined approach to part 70 permit revisions and
 provide other relief not possible under the  current rule.   The
 policies set  out in this paper are intended  solely  as guidance,
 do not represent final Agency action,  and cannot be relied upon
 to create  any rights enforceable by any party.

 II.   STREAMLINED DEVELOPMENT OF COMPLETE  Part  70 APPLICATIONS

 A.  Current Requirements for Complete Applications  (§ 70.5)

      Within 12  months of the effective date  of a part 70 program,
 all sources subject to the program must submit complete permit
 applications.   The State may establish, and  many have
 established,  a  phased schedule for application submittals.

      Section  70.5 (c) (3)  requires a permit application to describe
 all emissions of pollutants for which a source is major and all
 emissions  of  regulated air pollutants.  It also  authorizes  the
 permitting authority to obtain additional information as needed
 to verify  which requirements are applicable  to the  source.
 Applications  are also sometimes relied upon  to evaluate the fee
 amount required under the approved permit fee schedule.
 Emissions  information for these purposes  does not always need  to
 be detailed or  precise.  Information for applicability purposes
 need  only  be  detailed enough to resolve any  open questions  about
 which requirements apply.   Information for fee purposes only has
 to be consistent  with what  is  required in applications by  the
 permitting  authority to implement  its  fee schedule.   No
 information is  needed when  this activity  is  done outside the
 part  70  permit  application  process.   Finally, in cases where the
 applicable  requirement  will  be  established or defined in the
 part  70  permit  (e.g.,  PAL),  the part  70 permit application  must
 contain  additional  information  as  needed  to verify  emissions
 levels and  the  basis  for measuring  changes from  them.

      Section 70.5(c)  further requires  the  application to contain
 a compliance plan  describing the compliance  status  of  the source
 with  respect to all  applicable  requirements.   For sources that
 will  not be in  compliance at the time  of permit  issuance, the
 application must  contain  a narrative description of how the
 source will achieve  compliance  and a detailed schedule of
 remedial measures  leading to compliance.   If  the source is  in
 compliance, the application need only  contain a statement that
 the source will continue  to comply.  For applicable requirements
 that will take  effect during the permit term, the compliance plan
may be a statement that  the source will meet  them.   Each
application must also include a certification of the  source's
compliance status with respect  to each applicable requirement and
a statement of the methods used for determining compliance.
Finally, the responsible official must also certify that the

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application  form and  the  compliance certification are true,
accurate, and complete based on information and belief formed
after  reasonable inquiry.

     Each part 70 program must contain criteria and streamlined
procedures for determining when permit applications are complete.
Applications for an initial part 70 permit may be considered
complete if  they have information sufficient to allow the
permitting authority  to begin processing the application.  Unless
the permitting authority  determines that an application is not
complete within 60 days,  it will be considered complete by
default.  If the source submits a timely and complete application
the source is shielded against penalties for operating without a
permit until its part 70  permit is issued  (i.e., the source is
granted the  "application  shield").

     Even after applications have been initially determined to be
complete, the source must submit any additional information
requested by the permitting authority to determine, or evaluate
compliance with applicable requirements,  within the reasonable
timeframe allowed by the permitting authority, to maintain the
effect of the application shield.  In addition, until release of
the draft permit,  sources have an on-going responsibility to
correct information or submit supplemental information needed to
prepare the permit.  The  timeframe for updates will depend on the
permitting authority's schedule for performing the technical
review for a given application.  The application shield once
granted remains in effect until permit issuance even where the
source augments its original application submittal in response to
requests for more information by the permitting authority.

     As mentioned,  considerable confusion exists as to what
constitutes a complete application under the requirements of part
70.  Due to the significant new penalties for knowing violations
and the extremely visible forum for processing permit
applications, in the absence of clear guidance many sources have
made or are making very conservative assumptions regarding their
obligations.   For example, many in the regulated community feel
that a part 70 application can be complete only if it
exhaustively catalogues every past and present emitting activity
with great precision.   Others fear that an application can never
be complete since many Act requirements are still evolving,
confusion exists as to which requirements are applicable to the
source (e.g., what constitutes the State  Implementation Plan
(SIP)), or no monitoring data exists upon which to base the
initial certification of compliance.   Other concerns have been
raised regarding the choice of emissions  estimation techniques
and the amount of  information needed to support decisions of
applicability or exemption,  especially those involving the
appropriate NSR for previous construction activities.

     There is also a general apprehension that EPA will second
guess any or all of these judgments  during its review period and
thereby impede the permit issuance process.  Others are concerned
that even if complete applications could  be filed,  they soon

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would  grow obsolete  and require updates  before  a  draft  permit
could  be prepared.   In addition,  there are concerns  that  EPA will
issue  guidance  in the  future which would establish extensive new
requirements  concerning the  content of a complete application.
As a result,  worst-case assumptions for  various determinations
are being  made  effecting a level of rigidity  and  rigor  as well as
cost unintended by the current  regulations.

     This  guidance is  intended  to correct these
misunderstandings.   It is intended to  give States and sources
direction  on  how States can  reduce these burdens  while  achieving
the requirements of  title V.  As previously stated,  EPA believes
that these streamlining ideas can and  should  be implemented  under
the current part 70  rule for most States.   To the extent  State
forms  reflect the current confusion, the Agency wishes  to clarify
the issues sufficiently for  States to  revise  the  portion  of  their
forms  implementing title V to be consistent with  this guidance.

B.  Content of  Part  70 Permit Applications

1.  Overview

     This  section describes  the level  of information which must
be contained  in a part 70 permit application  for  it  to  be
considered complete.   This guidance clarifies the minimum
requirements  under the Federal  regulations for  acceptable part 70
permit applications.   It grants a substantial degree of
discretion to State  permitting  agencies.   The EPA recognizes that
different  States may adopt different approaches to these  minimum
requirements  depending on their local  needs and circumstances,
and that others  may  elect to  go beyond those minimum
requirements.   However,  at least  in the  initial program phase,
EPA urges  States to  keep part 70  application  requirements to the
minimum needed  to identify applicable  requirements.  In many
instances,  a  qualitative description of  emissions, or sometimes
no description  at all,  will satisfy this  standard.

     This  section specifically  clarifies  that there are different
expectations  for information  from emissions units depending on
whether and how  applicable requirements  apply.  In addition,  this
section provides  several  policy clarifications aimed at lowering
current application  burdens associated with addressing
insignificant activities,  generic  grouping  of emissions units and
activities, short-term activities,  incorporation  of current NSR
permit conditions, section 112(r)  requirements,  and Research and
Development (R&D) activities.

2.  Required  Emissions  Information And Source Descriptions

     Applications should  contain  information to the extent needed
to determine major source  status,  to verify the applicability of
part 70 or  applicable  requirements, to verify compliance with
applicable  requirements,  and  to compute a permit  fee (as
necessary).  Section 70.5 (c)   requires the application to describe
emissions of all  regulated air pollutants for each emissions

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unit.  This would  require  at  least a qualitative description of
all significant5 emissions units, including those not regulated
by applicable  requirements.

     While part 70 does not require detailed emissions inventory
building, it does  require  limited emissions-related information
for each pollutant and emissions unit combination which is
regulated at the source.   Section 70.5(c)(3)(iii) requires for
such units emissions  rate  descriptions in tpy and in such terms
as are necessary to establish compliance consistent with the
applicable standard reference test method.  The EPA interprets
the tpy estimates  to  not be required at all where they would
serve no useful purpose, where a quantifiable emissions rate is
not applicable  (e.g., section 112(r) requirements or a work
practice standard), or where  emissions units are subject to a
generic requirement (see Section 4.  Generic Grouping of
Emissions Units and Activities).

     On the other  hand, more  emissions information would
presumptively be required  to  verify emissions levels and
monitoring approaches where PALs or other plantwide emissions
limits would be established or defined in part 70 permits.
Another situation  where additional emissions information might be
needed is where the permitting authority would be granting the
shield relative to a decision of non-applicability where a source
is claiming an exemption based on an emissions level cutoff in a
standard that has  been issued for the category to which the
emissions unit potentially belongs.   In such cases additional
information to support a determination that a requirement is not
applicable may well be required.   In addition,  for the minority
of States that use the part 70 application to determine the first
year's permit fee,  the application and its description of all
regulated air pollutants for  presumptive fee calculation must
also be adequate for that purpose.  Finally,  additional emissions
information might  also be necessary in some cases to resolve a
dispute over whether a particular requirement is applicable,  or
whether a source is major for a particular pollutant (additional
information would  not be necessary where a source would stipulate
to the applicablity of the requirement and/or its major status).

     Wherever emissions estimates are needed (unless the source
independently decides to more accurately estimate emissions),  use
of available information should suffice.   Any information that is
sufficient to support a reasonable belief as to compliance or the
applicability or non-applicability of requirements will be
acceptable for these purposes.  That could include AP-42 emission
factors,  emissions  factors in other EPA documents,  or reasonable
     5The term "significant" as used in this policy statement
does not have the meaning as used in § 52.21 (e.g., 15 tpy PM-10,
40 tpy VOC)  but rather means that the emissions unit does not
qualify for treatment in the application as an insignificant
emissions unit.

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engineering projections, as well as test data  (see Section C.
Quality of Required Information).

     Any required tpy estimates are not to be  included as
federally-enforceable part 70 permit terms, unless otherwise
required by an applicable requirement or requested by the source
to avoid one.  In addition, where tpy descriptions are needed,
EPA does not believe that part 70 requires multiple forms of
emissions estimates (i.e., actual allowable, and potential
emissions).  Also, where an emissions estimate is needed for
part 70 purposes but is otherwise available (e.g., recent
submittal of emissions inventory),  then the permitting authority
can allow the source to cross-reference this information for
part 70 purposes.

     Even if tpy estimates are not necessary,  part 70
applications must describe all significant emissions units,
including any which are not subject to any applicable requirement
at any given emissions unit.  Such unregulated emissions can
include hazardous air pollutants (HAP)  listed under section
112(b) of the Act and criteria pollutants that are unregulated
for a particular emissions unit.  A general description of
emissions (i.e.,  simple identification of the significant
pollutant or family of pollutants believed to be emitted by the
emissions unit)  should suffice.  For part 70 purposes,  the
descriptions of emissions units themselves also can be quite
general (i.e.,  descriptions need not contain information such as
UTM coordinates or model and serial numbers for equipment,  unless
such information is needed to determine the applicability of, or
to implement, an applicable requirement).   Negative declarations
are not required for pollutants that are not emitted by the
emissions unit.

     Some examples may help to illustrate where only source
descriptions of regulated and unregulated emissions are necessary
for title V purposes:

          An application for a de-greaser subject to a
          requirement  to have a certain type of lid could
          describe the relevant applicable requirement and simply
          identify that it emits volatile organic compounds (VOC)
          and falls within the scope of the regulation.
          Quantification of the VOC emissions  would not be
          necessary since the level of  emissions is not relevant
          to the  standard.

          An application for a storage  tank subject to  a
          requirement  to have a certain type of seal,  in addition
          to describing this requirement,  would only need to
          generally identify the types  of  pollutants emitted,
          such  as VOC  and HAP generally.

          An application for a boiler that  is  grandfathered under
          the SIP could just identify that  PM,  S02,  NOx,  VOC,

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           lead,  and HAP are  emitted  and  that  no  applicable
           requirement is relevant.

 3.   Insignificant  Activities

      Section  70.5(c)  allows  the Administrator to approve as part
 of a State program a list of insignificant activities which need
 not  be  included  in permit applications.  For  activities on the
 list, applicants may exclude from part 70 permit applications
 information that is not needed to determine  (1)  which applicable
 requirements  apply,  (2)  whether the  source is in compliance with
 applicable requirements,  or  (3) whether  the source is major.  If
 insignificant activities are excluded because they fall below a
 certain size  or production rate, the application must describe
 any  such activities at  the source which  are included on the list.
 Even for such insignificant  activities,  the process for listing
 them in the application can  be fairly simple.  The permitting
 authority  could allow the source merely  to list  in the
 application the kinds of insignificant activities that are
 present at the source or check them  off  from  a list of
 insignificant activities approved in the program.

      In addition to the insignificant activity provisions of
 § 70.5(c), there is  flexibility inherent in §  70.5 to tailor the
 level of information  required in the application to be
 commensurate  with  the need to determine applicable requirements.
 The  EPA believes this inherent flexibility encompasses the idea
 that  certain  activities  are  clearly  trivial (i.e.,  emissions
 units and  activities  without specific applicable requirements and
 with  extremely small  emissions) and  can be omitted from the
 application even if they are not included on a list of
 insignificant activities  approved in a State's part 70 program
 pursuant to § 70.5 (c).   Attachment A lists examples of activities
 which EPA  believes  should  normally qualify as trivial in this
 sense.  This  list  is  intended only as a starting point for States
 to consider.  The  determination of whether any particular item
 should  be  on  the State's  trivial list may depend on State-
 specific factors (e.g.,  whether the activity is  subject to the
 requirements  of the SIP).  Permitting authorities can also allow,
 on a  case-by-case  basis  without EPA approval,  exemptions similar
 to those activities identified in Attachment A.  Additional
 exemptions, to the extent  that the activities they cover are not
 clearly trivial,  still need to be approved by EPA before being
 added to State lists  of  insignificant activities.

 4.  Generic Grouping  of  Emissions Units and Activities

     Questions have arisen regarding whether emissions units and
 activities may be  treated generically in the application and
permit  for certain broadly applicable requirements  often found in
 the SIP.  Examples of such requirements brought to  EPA's
attention  include  requirements that apply identically to all
 emissions units at a  facility (e.g.,  source-wide opacity limits),
general  housekeeping  requirements,  and requirements that apply
 identical emissions limits to small units (e.g.,  process weight

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 requirements).   These requirements are sometimes  referred to as
 "generic,"  because they apply and are enforced in the  same manner
 for  all  subject  units or activities.

     These  requirements can normally  be adequately addressed in
 the  permit  application with minimal or no reference to any
 specific emissions unit or activity,  provided that the scope of
 the  requirement  and the manner of its enforcement are  clear.
 Even where  such  generic requirements  attach  to individual small
 emissions units  or activities,  requiring a unit-by-unit or
 activity-by-activity description of numerous units or  activities
 would generally  impose a paperwork burden that would not be
 compensated by any gain in the practical enforceability of such
 relatively  simple  requirements.   Therefore,  provided the
 applicant documents the applicability of these requirements and
 describes the compliance status  as required  by §  70.5 (c),  the
 individual  emissions units or activities may be excluded from the
 application, provided no other requirement applies which would
 mandate  a different result.   Similarly,  the  part  70 permit which
 must assure compliance with the  generic applicable requirement
 would be written without specificity  to applicable emissions
 units or activities.

     In  EPA's view,  the validity of this approach stems from the
 nature of these  applicable requirements.   Accordingly,  EPA
 believes application of this principle for grouping subject
 activities  together generically  should not depend on whether
 those activities qualify as  trivial or insignificant.   Where  the
 applicable  requirement is amenable to this approach, that is,
 where  (1) the class of activities or  emissions  units subject  to
 the  requirement  can be unambiguously  defined in a generic manner
 and  where (2) effective enforceability of  that  requirement  does
 not  require a specific listing of subject  units or activities,
 permitting  authorities may follow this approach regardless  of
 whether  subject  activities have  been  listed  as  trivial  or
 insignificant.

     A lengthy list  of the types  of requirements  suitable  for
 this treatment is  not  possible here because,  among other  reasons,
 the  examples of  which  EPA is  aware are SIP requirements,  and  so
vary from State  to State.  Permitting authorities  are  in  the best
position to decide which SIP  requirements  can be  treated  in this
generic  fashion.   However, permitting authorities  may wish  to
consult with the EPA Regional office  in  advance to  clarify any
uncertainties.

5.  Short-term Activities

     States can  treat  many short-term activities  (e.g.,
activities occurring infrequently  and  for  a short  duration at a
part 70 source)   subject  to an applicable requirement in the same
fashion as activities  subject to  a generic requirement  (see
previous discussion).  Since  these activities are not present at
the source during preparation of  the permit,  the most that can be
expected is  generic treatment in  the application.   For such

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                                10

activities, the application and permit would not include
emissions unit specificity but instead would contain a general
duty to meet all applicable requirements that would apply to any
qualifying short-term activity.  Short-term activities which are
not subject to an applicable requirement should be classified as
insignificant activities or would qualify as trivial, and so
would not be included in either the part 70 application or
permit.

     For example, a contractor-run sandblasting operation that is
subject to a SIP limit for particulate matter might be operated
on an infrequent but recurring basis might qualify for the
general duty approach.  However, where such activities re-occur
with considerable frequency, the permitting authority could
require them to be included in the permit.  The source would also
be obligated to revise the permit if operation of any short-term
activity would be in conflict with the permit.  If short-term
construction activities occur, the part 70 permit application
would need to address them only if they-are subject to the
State's NSR program or are otherwise in conflict with the
envisioned part 70 permit.

6.  Determination of Applicable SIP Requirements

     One of the undisputed challenges facing both State and the
regulated community in their efforts to develop complete
applications is the determination of the applicable SIP
requirements for a part 70 source.   In some situations, it may be
difficult to identify all the requirements in the SIP which are
applicable to a particular source.   Applicants, after
consultation with the permitting authority, should-include in
permit applications the State rules which, to the best of their
knowledge, are in the SIP.  A good faith estimate will be enough
to support both a valid compliance certification and a
"completeness" determination.  Review by the permitting
authority, EPA, and the public may provide additional insight
into whether any other applicable requirements exist.  Any
additions should not affect the validity of the original permit
application and its eligibility for the application shield or of
the accompanying compliance certification.  However, the source
would have to update its certification to account for any
subsequently identified SIP requirements.

     At least one State has developed a checklist of its air
rules and required the applicant to check off which ones apply
and select appropriate codes for rationalizing which ones do not
apply.  This type of approach should aid the source in providing
in the part 70 application its understanding of what applicable
requirements apply.  Sources in such a State may rely on the
checklist.  The EPA has also provided a contractor to document
the approved SIP for each State.  Where an EPA compilation
exists,  sources may rely on it as well.  This process is well
underway for most States and permitting authorities and, in many
cases, EPA Regional Offices can provide the rule citation of the
State rules that have been approved as part of the SIP.

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                                11

     Where a State has adopted a  rule that is pending approval by
EPA into the SIP, sources  (if advised by the permitting
authority) could  in  their  applications note that the
corresponding State-only requirements will become federally
enforceable upon  SIP approval.  The permitting authority during
review of the application  would be responsible for determining if
the SIP had been  approved.  If so, then the permitting authority
would incorporate the requirements into the federally-enforceable
portion of the permit.  If the requirements had not been approved
into the SIP, the permitting authority could incorporate the
pending requirements into  the State-only enforceable portion of
the permit and note  that the requirements would become federally
enforceable upon  SIP approval.  The federally-enforceable portion
of the permit would  include the existing SIP requirements and
condition them to expire upon EPA approval of the SIP revision.
Once the SIP revision is approved, the pending permit terms would
become federally-enforceable and  the permit terms based on the
superseded SIP rule  would become  void.

7.  Incorporation of Prior NSR Permit Terms and Conditions

     This paper provides guidance to States and sources in
devising a means  to  revise NSR permit terms as appropriate
(including classification as a State-only enforceable term) in
conjunction with  the part 70 permit issuance process.  As used
here, "new source review" refers  to all forms of preconstruction
permitting under  programs approved into the SIP,  including minor
and major NSR (e.g.,  prevention of significant deterioration).
Section 70.2 defines any term or  condition of a NSR permit issued
under a Federal or SIP-approved NSR program as being an
applicable requirement.  The Agency has concluded,  however, that
only environmentally significant  terms need to be included in
part 70 permits.  The EPA recognizes that NSR permits contain
terms that are obsolete, extraneous,  environmentally
insignificant,  or otherwise not required as part of the SIP or a
federally-enforceable NSR program.  Such terms,  as subsequently
explained, need not  be incorporated into the part 70 permit to
fulfill the purposes of the NSR and title V programs required
under the Act.

     Minor NSR,  in particular,  is a program which the State has
discretion to mold as necessary to be consistent with the goals
of the SIP.   Therefore,  the permitting authority has very broad
discretion in determining the terms of minor NSR.   This
discretion also exists to a much lesser extent in crafting major
NSR permits,  since the Act and EPA regulations contain several
express requirements  for review of major subject  sources.   Many
NSR permit terms written in the past  for both minor and major
NSR,  however,  were understandably not written with a view toward
careful segregation  of terms implementing the Act from State-only
requirements.

     The EPA believes that the part 70 permit issuance process,
involving as it  does  review by the permitting authority,  public,
and EPA,  presents an  excellent opportunity for the  permitting

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                                12

authority to make appropriate revisions to a NSR permit^
contemporaneously with  the  issuance of the part 70 permit.  The
public participation procedures for issuance of a part 70 permit
satisfy any procedural  requirements of Federal law associated
with any NSR permit revision.  This parallel processing approach
is also an excellent opportunity  to minimize the administrative
burden associated with  such an exercise.  By conducting a
simultaneous revision to the NSR  permit, the permitting authority
would be revising the "applicable NSR requirement" for purposes
of determining what must be included in the part 70 permit.

     There are several  factors which bound the available
discretion of the permitting authority in deciding whether an
NSR permit term is necessary and  must be incorporated into the
part 70 permit as a federally-enforceable condition.  Certainly
all NSR terms must be incorporated which are mandatory under
EPA's governing regulations (e.g., best available control
technology, lowest achievable emissions rate, and other
applicable NSR emission limits),  or are-not mandatory under EPA
regulations but are expressly required under the terms of the
State's NSR program (e.g.,  new source performance standards
(NSPS) and SIP emission limits, reporting and recordkeeping
requirements7), or are voluntarily taken by the source to avoid
an otherwise applicable requirement (e.g., emission limits used
to create a "synthetic minor" source,  to "net out" of major NSR,
or to create tradeable offsets or other emission reduction
credits).

     On the other hand,  other NSR permit terms and conditions may
be patently obsolete and no longer relevant to the operation of  ,
the source, such as terms regulating construction activity during
the building or modification of the source,  where the
construction is long completed and the statute of limitations on
construction-phase activities has run out.  These terms no longer
serve a Federal purpose and need  not be included as terms of the
part 70 permit.  Likewise,  the State will also need to identify
provisions from NSR permits that  are not required under Federal
law because they are unrelated to the purposes of the NSR
program.   Examples typically include odor limitations,  and
limitations on emissions of hazardous air pollutants where such
limitations do not reflect  a section 112 standard or a SIP
     6In many States, an NSR permit is subsequently converted to
an operating permit leaving the preconstruction permit void.  In
other States, there is not a separate construction permit (i.e.,
single permit system).   In either case the phrase "NSR permit"
means the current permit in which the NSR applicable requirements
reside.

     7This does not preclude the possibility that certain
federally-enforceable limits incorporated into the NSR permit may
qualify for generic treatment in the application and the permit
as described in Section 4.  Generic Grouping of Emissions Units
and Activities.

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                                13

 criteria pollutant  requirement.   Where  the  State  retains  such
 conditions,  it  would draft  the part  70  permit  to  specify  that
 they are State-only conditions and incorporate them  into  the
 part 70 permit  as such.

     New source review permits are also likely to contain other
 terms  that are  not  patently obsolete or irrelevant,  but that  the
 source and permitting authority agree are nevertheless
 extraneous,  out-dated, or otherwise  environmentally  insignificant
 and inappropriate for inclusion in a federally-enforceable
 permit.  Candidates for  this exclusion  include:  (1)  information
 incorporated by reference from an application  for a
 preconstruction permit (to  the extent this  information is needed
 to enforce NSR  permit terms it should be converted to terms in
 the part 70  permit),  or  (2)  original terms  of  a preconstruction
 permit that  has been superseded by other terms  related to
 operation.   The propriety of excluding  other types of NSR permit
 terms will need to  be evaluated on a case-by-case basis.

     The EPA believes that  the above parallel  processing  approach
 should be effective in most situations  to incorporate the
 federally significant NSR permit  terms  into the part 70 permit in
 an efficient and workable way.  However, the Agency  recognizes
 that sources and permitting authorities may experience serious
 burden and timing concerns  in accomplishing this  process.
 Therefore, the  Agency recommends  the following approach,  which
 EPA believes is consistent  with the  current part  70  rule.  Under
 this approach,  sources may  in their  part 70 permit applications,
 propose candidate terms  from their current NSR permits which  they
 reasonably believe  should be considered for revision, deletion,
 or designation  as being  enforceable  only by the State.  Upon
 submittal of the application, the source would, as a Federal
 matter, only need to  certify compliance status for those
 remaining NSR terms  that it  had earmarked for  incorporation into
 the part 70  permit  as  federally-enforceable terms.  The
 permitting authority, as part of  the  collaborative part 70 permit
 issuance process, would  review the list of terms  recommended  in
 good faith by the source for deletion, revision,  or State-only
 status and would ultimately  agree or  disagree with the source's
proposal.  Where the permitting authority decided that terms
beyond those proposed as federally enforceable by the source
 should be retained  to implement NSR,   the source would be required
 to re-certify its application with respect to those NSR terms.
 Failure to do so within the  timeframe required by the permitting
authority would result in an  inaccurate certification and the
loss of the application shield.

     The resolution of which NSR terms are to be incorporated
should ideally be completed by the time of initial part 70 permit
issuance.  However,  the resources  available for timely issuance
of thousands of part 70 permits may not be sufficient to achieve
final resolution of NSR permit terms  by permit issuance.   Serious
concerns have been raised by industry that they should not be
subject to premature incorporation of these remaining permit
terms into the part 70 permit.  They  believe that this could

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                                14

 trigger,  in many cases,  inappropriate part  70  responsibilities
 (e.g.,  monitoring,  reporting,  and recordkeeping)  for  these terms.

      The  EPA believes  that  the current part 70  rule allows
 permitting  authorities to address these  concerns  as well.   Where
 States  wish to  extend  the time in which  to  decide whether  to
 revise, delete,  or  designate as State-only  certain terms of
 current NSR permits, permitting authorities may stipulate  in
 initial part 70  permits  that any  of those NSR  terms so  listed in
 the permit  will  be  reviewed and be deleted,  revised,  or
 incorporated as  federally-enforceable terms of  the part 70 permit
 on or before a  specified deadline (not later than the renewal of
 the permit).  Prior to the  deadline, the permitting authority
 would delete, revise,  or make  federally  enforceable any terms
 that  the  State  determined warranted such treatment.   In the
 meantime, all other terms would continue to be  enforceable under
 State law as terms  of  the NSR  permit.  The  permitting authority
 would incorporate any  NSR permit  terms that were  not  deleted or
 designated  as State-only into  the federally enforceable portion
 of the  part 70 permit  consistent  with its approved part 70 permit
 revision  procedures.

      Finally the permitting authority may be required to add new
 terms to  the part 70 permit to  make any incorporated  NSR permit
 terms enforceable from a practical standpoint,   to reflect
 operation rather than  construction, or to meet  other  part  70
 requirements regarding the content of permits.   Where a
 permitting authority has already  converted  the NSR permit  into an
 existing  State operating permit before incorporation  into  the
 part  70 permit,  the terms of the  current permit to operate will
 presumptively define how NSR permit terms should be incorporated
 into part 70 permits.

 8.  Section 112(r) Requirements

     For  sources otherwise required to obtain a part  70 permit,
 complete  applications merely need to acknowledge  (where
 appropriate) that the on-site storage and processing of section
 112(r) chemicals may require the source to submit a section
 112(r) risk management plan (RMP)  when that requirement becomes
 applicable.   This acknowledgment should be based on the "List of
 Regulated Substances and Their Thresholds" rule [59 FR 4478
 (January  14, 1994)]  .  Sources are not required to quantify
 emissions of these substances  (unless they are also pollutants
 listed under section 112(b), and such quantification is needed
 for fee collection purposes).   To resolve issues of
 applicability,  permitting authorities may ask for additional
 information from certain sources regarding materials stored and
 transferred and the amounts  of chemicals used in certain
processes if the source does not indicate its potential
applicability with respect to the section 112(r) requirement  to
 file an RMP.

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                                15

9.  Research and Development Activities

     The EPA expects that R&D activities will generally be exempt
from part 70 and not be involved  in the part 70 application
process since they are typically  independent, non-major sources.
The July 1992 part 70 preamble provided general guidance
explaining that R&D activities  could often be regarded as
separate "sources" from any operation with which it were co-
located (57 FR 32264 and 32269) .  The Agency is clarifying and
confirming their substantial flexibility under the ongoing
rulemaking action to revise part  70.

     Some R&D activities can still be subject to part 70 because
they are either individually major or a support facility making
significant contributions to the  product of a collocated major
manufacturing facility.  In addition, laboratory activities which
involve environmental and quality assurance/quality control
sample analysis, as well as R&D,  present similar permitting
problems.  Such activities should be eligible for classification
as an insignificant activity if there are no applicable SIP
requirements.  Where applicable SIP requirements do apply, they
typically consist of "work practice" (e.g., good laboratory
practice) requirements.  In this  situation, permit applications
would need to contain only statements acknowledging the
applicability of, and certifying  compliance with,  these work
practice requirements.  There is  no need for an extensive
inventory of chemicals and activities or a detailed description
of emissions from the R&D or laboratory activity.   Similarly,
there would be no need to monitor emissions as .a part 70 permit
responsibility.

10.  Applications from Non-major  Sources

     Applications for non-major sources subject to part 70 can be
less comprehensive than those for major sources.  (Note that
virtually all States have deferred the applicability of these
sources as provided by part 70.)  While permits for major sources
must include all applicable requirements for all emissions units
at the source,  § 70.3(c)(2)  stipulates that permits for non-major
sources have to address only the  requirements applicable to
emissions units that cause the source to be subject to part 70
(e.g., requirements of sections 111 or 112 of the  Act applicable
to non-major sources).  Other emissions units at non-major
sources that do not trigger part  70 applicability,  even if they
are subject to applicable requirements,  do not have to be
included in the permit.  Since permits for non-major sources do
not have to include applicable requirements for emissions units
that do not cause the source to be subject to part 70, no
information on those units is needed in the permit application.

11.   Supporting Information

     The great majority of the detailed background information
relied upon by the source to prepare the application need not be
included in the application for it to be found complete.   Even

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                                16

though certain emissions-related calculations [see
§ 70.5(c)(3)(viii)] are required, the application size can still
be significantly reduced if the permitting authority allows the
source to submit examples of calculations performed that
illustrate the methodology used.  Cost savings can be realized,
even though the calculations are still performed, in that the
efforts to exhaustively record them in the application can be
omitted.

     The permitting authority can request additional, more
detailed information needed to justify any questionable
information or statement contained in the initial application or
to write a comprehensive part 70 draft permit.  Applications for
permits which will establish a requirement uniquely found in the
part 70 permit (such as an alternative reasonably available
control technology (RACT)  limit) would require more supporting
information, including any required demonstration.

C.  Quality of Required Information

     The quality of emissions estimates where they are needed in
the part 70 permit application depends on the reasonable
availability of the necessary information and on the extent to
which they are relied upon by the permitting authority to resolve
disputed questions of major source status, applicability of
requirements, and/or compliance with applicable requirements.  In
general, where estimates of emissions are necessary, reasonably-
available information may be used.

     Generally, the emissions factors contained in EPA's
publication AP-42 and other EPA documents may be used to make any
necessary calculation of emissions.  When an acceptable range of
values is defined for a general type of source situation,
permitting authorities have considerable discretion to define the
appropriate emissions factor value within that range.  States are
most often better able to make such decisions given their closer
proximity to the particular source and its operation.

     For purposes of certifying the truth and accuracy of the
application, part 70 requires that emissions estimates be
expressed in terms consistent with the applicable requirement.
This does not mean that only test data is acceptable.  Rather,
the source may rely on any data using the same units and
averaging times as in the test method.  New testing is not
required and emission factors are presumed to be acceptable for
emissions calculations, but more accurate data are preferred if
they are readily available.  Emissions factors provided by
permitting authorities are also allowed where EPA emission
factors are missing or State or industry values provide greater
accuracy.  The applicant may also use other estimation methods
(materials balance, source test, or continuous emissions
monitoring  (CEM)  data) when emission estimates produced through
the use of emission factors are not appropriate.

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                                17

      In disputed cases,  the source may propose the least costly
 alternative  estimation method as  long as  it  will  produce
 acceptable data.   Owners and operators may propose use of
 emissions estimation methods of  their choosing to the permitting
 authority when  the resulting data is  more accurate than that
 obtained through the use of emissions factors.  Sources are
 encouraged to contact the permitting  authority to discuss the
 appropriate  estimation techniques for a particular circumstance.

      Emissions  estimates when they are necessary  for HAPs often
 become  less  precise below certain thresholds.   The need for
 quantification  or even estimation should  therefore decrease the
 lower the levels are that are present.  For  example,  VOC
 estimates based on manufacturer's safety  data  sheets may indicate
 that  trace amounts of certain HAPs may be present.   It is
 reasonable for  the source to report these HAPs  as present in
 trace amounts and not quantify them further  or  perform expensive
 testing procedures to collect more accurate  data,  unless the
 permitting authority requires otherwise.   On the  other hand,  more
 precise estimates might  be required to defend a position that a
 VOC source was  below emissions cutoffs which subject it to  a RACT
 requirement  if  the source appeared close  to  that  threshold  and  it
 exact emissions level was in doubt.

 D.  Phase-In of Details  for Completeness  Determinations

      Permitting authorities have  considerable flexibility in
 processing the  expected  huge volume of  permit applications  so as
 to issue initial  permits  by the required  deadline of  3  years
 after program approval.   The § 70.5 (c)  requirement  that a permit
 application  will  be  complete only if  it addresses all  the
 information  required in  this section  must be interpreted in light
 of the  July  1992  preamble (which  clarifies the  §  70.5(c)
 requirement  for completeness in terms  of  information  needed by
 the permitting  authority  to begin processing of an  application).
 Accordingly,  the  permitting authority may balance the need  for
 information  to  support timely permit  issuance pursuant  to the
 schedule approved in the  program  against  the workload associated
 with managing and updating  as necessary the  initially submitted
 information.

      Sources must  submit  complete  applications within 12  months
 of the  effective  date  (i.e., 30 days after the Federal  Register
 date where EPA  approves the  program) of a State part 70 program
 or on whatever  schedule for  application submittal the State
 establishes  in  its approved program for its sources.  Permitting
 authorities may also  require application submittals prior to
 part  70 program approval under State authority, however,  a
 failure  to comply with any application deadline earlier than the
 effective date  for the program cannot be considered a violation
 of the Act.

     The current  rule allows permitting authorities to  implement
a two-step process for application completeness,  first
determining an application to be administratively complete, then

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                                18

 requiring application updates  as  needed  to  support  draft permit
 preparation.   For example,  permitting  authorities can initially
 find  an application complete if it defines  the  applicable
 requirements,  and major/minor  source status;  certifies compliance
 status  with respect to all  applicable  requirements  (subject  to
 the limitation on this action  provided for  in Section H.
 Compliance Certification Issues); and  allows  the permitting
 authority to determine the  approved permit  issuance schedule.
 The application must also include a certification as to its
 truth,  accuracy,  and completeness.  In any  event, permitting
 authorities must  award the  application shield if the source
 submits a timely  application which meets the  criteria for
 completeness in § 70.5(c).

      Under this approach, if the  source has supplied at least
 initial information in all  the areas required by the permit
 application form  and has certified it  appropriately,  the
 permitting authority generally has flexibility  to judge the
 application to be complete  enough to begin processing.
 Accordingly, there should normally be  no need for an applicant to
 submit  an application many  days in advance in order to build in
 extra time for an iterative process before the  relevant submittal
 deadline.   Sources scheduled for permitting during  the first year
 of the  transition schedule must submit any additional  information
 as needed to meet fully  the requirements of § 70.5(c)  for
 completeness on a more immediate schedule so  that their permit
 can be  issued  within that first year.

 E.    Updates to Initially Complete Applications Due  to Change

      Sources,  to  maintain their application's status as complete
 and therefore  preserve the application shield, must  respond  to
 requests  from  the  permitting authority for additional  information
 to determine or evaluate compliance with applicable  requirements
 within  the  reasonable  timeframe established by the permitting
 authority.  Where  more information is  needed  in the permit
 application to  continue  its processing, permitting authorities
may opt to add  the additional  information to  the application
 themselves or  require  additional submittals from the source.
 Sources must promptly  certify any additional  information
 submitted by them and  certify or revise any relevant information
 furnished by the permitting authority.

 1.  Changing Emissions Information

     Updates to the  initially complete application may be
required if emissions  information, such as revised emissions
 factors, changes or additional  NSR projects are approved after an
application is  submitted.  The  exact  response required will
depend  in part on  whether the change affects a source's
applicable requirements or its  compliance status and when it is
discovered.  If, after consultation with the permitting
authority, it is determined that the applicability status of the
source  is affected by new emissions information (e.g., the change
causes  the source  to become newly  subject to applicable

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                                19

 requirements or may affect its ability to comply with a current
 NSR permit  condition),  then the source must promptly submit the
.new information to the  permitting authority,  identify any new
 requirements that apply,  and certify any change in the source's
 compliance  status.  The issuance  of an NSR permit may also add a
 new applicable requirement that would need to be addressed by the
 part 70  permit.

      If  the new information is discovered before the draft permit
 has been issued,  it should be submitted as an addendum to the
 application,  and the draft permit should reflect the new
 information.   The permitting authority and a source can agree on
 set intervals at which  such updating is required in order to
 structure the process and make it more efficient.   If new
 information is discovered after the draft permit has completed
 public review but before  the proposed permit has been issued,  the
 information should still  be submitted,  and it is the
 responsibility of the permitting  authority to revise the permit
 accordingly.

      If  new information is discovered after the permit has been
 issued,  the resulting change could,  at the discretion of the
 permitting  authority, be  addressed as a permit revision or as  a
 reopening.   If the change would not allow a source  to comply with
 its current permit,  the source should initiate a permit revision.

      If  the information does not  affect applicability of,  or
 compliance  with,  any applicable requirement (e.g.,  only alters
 the tpy  emissions estimates of regulated pollutants),  the
 information need not be submitted until permit renewal.   If  the
 permitting  authority requires submittal of new information
 earlier,  however,  then  it must be submitted according to
 reasonable  deadlines established  by the permitting  authority.

 2.   Other Changes

      Other  changes can  also occur that  would  require  the source,
 even absent a specific  request from the permitting  authority, to
 propose  an  update to an initially complete application.  One
 example  is  where  a new  regulatory requirement  becomes  applicable
 to  the source before the  permit is  issued.

 F.   Content Streamlining

 1.   Cross Referencing

      The permitting  authority may allow the application  to cross-
 reference previously issued preconstruction and part  70 permits,
 State or  local rules and  regulations, State laws, Federal  rules
 and  regulations,  and other  documents  that  affect the applicable
 requirements  to which the source  is  subject, provided  the
 referenced materials are  currently applicable and available to
 the public.    The  accuracy of  any  description of such cross-
 referenced documents is subject to the  certification requirements
of part 70.    Such  documents must  be made available as part of the

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                                20

public docket on the permit action, unless they are published
and/or are readily available  (e.g., regulations printed in the
Code of Federal Regulations or its State equivalent).  In
addition, materials that are available elsewhere within the same
application can be cross referenced to another section of the
application.

     In many cases, incorporation of prior information from
previously issued permits would be useful.  Examples are where a
source is updating a part 70 permit by referencing the
appropriate terms of a NSR permit or renewing a part 70 permit by
referencing the current permit and certifying that no change in
source operation or in the applicable requirements has occurred.
Even where existing permit conditions are expressed in
terminology other than that used in the part 70 permit, cross-
referencing can still be possible.  Such citations, however,
would have to provide sufficient translations of terms to ensure
the same effect.

     As discussed previously, the permitting authority may
determine that certain terms and conditions of existing NSR
permits are obsolete, environmentally insignificant, or not
germane with respect to their incorporation into part 70 permits.
Even when a NSR permit contain such terms,  citation can still be
used to the extent that the NSR permit provisions appropriate for
part 70 permit incorporation are clearly identified through the
cross-reference.  Also, the NSR permit terms not cited for
part 70 incorporation are still in effect as a matter of State
law unless and until expressly deleted by the permitting
authority.  Wherever this citation approach is used, the
permitting authority should review all referenced terms to ensure
they meet part 70 requirements for enforceability.

     The EPA believes that one reason for the excessive length
and cost of some permit applications is that sources believe they
are required to paraphrase or re-state in their entirety the
provisions of the Code of Federal Regulations (CFR) or other
repositories of applicable requirements.   Citations can be used
to streamline how applicable requirements are described in an
application and will also facilitate compliance by eliminating
the possibility that part 70 permit terms will conflict with
underlying substantive requirements.   Indeed,  many States have
taken a citation-based approach as a way of streamlining
applications and permits.  Thus,  a source could cite,  rather than
repeat in its application,  the often extensive details of a
particular applicable requirement (including current NSR permit
terms),  provided that the requirement is readily available and
its manner of application to the source is not subject to
interpretation.   The citation must be clear with respect to
limits and other requirements that apply to each subject
emissions unit or activity.   For example,  a storage tank subject
to subpart Kb of the NSPS would cite that requirement in its
application rather than re-typing the provisions of the CFR.

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                                21

2.  Incorporation  of  Part  70 Applications by Reference  into
Permits

     The EPA discourages the incorporation of entire  applications
by reference into  permits.  The  concern with incorporation  of  the
application by reference into  the permit on a wholesale basis  is
the confusion created as to the  requirements that apply to  the
source and the unnecessary limits to operational flexibility that
such an incorporation might cause.

     If States do  incorporate  part 70 applications by reference
in their entirety  into part 70 permits, EPA will consider
information in the application to be federally enforceable  only
to the extent it is needed to  make other necessary terms and
conditions enforceable from a  practical standpoint.   Moreover,
EPA does not interpret part 70 to require permit revisions  for
changes in the other  aspects of  the application.

3.  Changing Application Forms

     The EPA urges States  to re-examine their permit  application
forms in light of  their experience to date and the contents of
this guidance.  Although the revision of an application form
requires a program revision when it impacts any portion of  the
form which was relied upon by  EPA in approving the part 70
program for the State, such a  revision can, in most cases,  be
accomplished through  an exchange of letters with the  appropriate
EPA Regional Office.   Changes made to implement this guidance
can be effected immediately with implementing documents sent to
the appropriate EPA Regional Office.  Similarly, a State could
notify the Regional Office in  writing that the State  intends to
make completeness  determinations based on completion  of parts  of
the existing forms to avoid costly changes in computerized  form
systems that have  already been developed.  This is another way
that a State can act  quickly to  streamline application
requirements while minimizing  its own administrative burdens.

G.  Responsible Official

     Part 70 provides that a "responsible official" must perform
certain important  functions.    In general, responsible officials
must certify the truth,  accuracy, and completeness of all
applications,  forms,   reports,  and compliance certifications
required to be submitted by the  operating permits program
[§ 70.5(d)].   As an example,  a responsible official must certify
the truth,  accuracy,  and completeness of all information
submitted as part of a permit application [§ 70.5(a)(2)] and that
the source is in compliance "with all applicable requirements"
under the Act [§ 70.5(c) (9) (i)].   In addition,  part 70  requires
responsible officials to certify monitoring reports,  which must
be submitted every 6 months,  and "prompt" reports of any
deviations from permit requirements whenever they occur.

     The definition of responsible official in § 70.2 identifies
specific categories of officials that have the requisite

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                                22

 authority  to  carry  out  the  duties  associated with that  role.  The
 definition provides in  part that the  following corporate
 officials  may be  a  responsible  official:

      ... a  president,  secretary,  treasurer, or vice president
      or any other person who performs similar policy or decision-
      making functions for the corporation, or a duly authorized
      representative of  such person if the representative  is
      responsible  for the overall operation of one or more
      manufacturing,  production, or operating facilities applying
      for or subject to  a permit  ....   [emphasis added]

      Similarly, for public  agencies,  the definition indicates the
 following  persons may be responsible  officials:

      ... a  principal  executive officer or ranking elected
      official.  For purposes of this  part, a principal  executive
      officer  of a Federal agency includes the chief executive
      officer  having responsibility for the overall operations of
      a principal  geographic  unit of the agency ....   [emphasis
      added]

      Concerns have  been  raised over the apparent narrowness of
 the current definition of responsible official.  In the August
 1994  Federal  Register notice, EPA  responded to those concerns
 related to acid rain by  proposing  a revision to the definition of
 responsible official to  allow a person other than the designated
 representative to be the  responsible  official for activities not
 related to acid rain control at affected sources [59 FR 44527].

      To respond to  further concerns over the definition of
 responsible official as  it applies to partnerships formed by
 corporations,  or  partnerships, or  a combination of both, EPA
 confirms that the same categories  of officials who can act as
 responsible officials for corporations can also act in that
 capacity for partnerships where they carry out responsibilities
 substantially similar to those in  the same categories in
 corporations.   Partnerships  that are essentially unions of
 corporations and/or partnerships will normally have the same
management needs  as  corporations and so will establish a
management structure with categories of officials similar to
 those of most corporations.   In these partnerships,  the persons
with  the knowledge and authority to assure regulatory compliance
are the officials of the partnership.

      Interpreting the definition of responsible official as
limiting the class of persons in partnerships that may be
responsible officials to general partners would frustrate the
intent of the definition because it would in many instances
actually result in designating a person that is not in a position
to adequately fulfill the role of a responsible official.  For
this reason,  EPA believes it is reasonable for permitting
authorities,  in the case of partnerships composed of corporations
and/or partnerships, to allow for the same flexibility in

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                                23

designating a responsible official as would be the case for
corporations.

H.  Compliance Certification Issues

     To make the required compliance certification to accompany
the initial part 70 permit applications, sources are required to
review current major and minor NSR permits and other permits
containing Federal requirements, SIP's and other documents, and
other Federal requirements in order to determine applicable
requirements for emission units.  The EPA and/or the State
permitting authority may request additional information
concerning a source's emissions as part of the part 70
application process.

     Companies are not federally required to reconsider previous
applicability determinations as part of their inquiry in
preparing part 70 permit applications.  However,  EPA expects
companies to rectify past noncompliance as it is discovered.
Companies remain subject to enforcement actions for any past
noncompliance with requirements to obtain a permit or meet air
pollution control obligations.  In addition,  the part 70 permit
shield is not available for noncompliance with applicable
requirements that occurred prior to or continues after submission
of the application.

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                           ATTACHMENT A

       LIST OF ACTIVITIES THAT MAY BE TREATED AS  "TRIVIAL"
     The following types of activities and emissions units may be
presumptively omitted from part 70 permit applications.  Certain
of these listed activities include qualifying statements intended
to exclude many similar activities.

     Combustion emissions from propulsion of mobile sources,
     except for vessel emissions from Outer Continental Shelf
     sources.

     Air-conditioning units used for human comfort that do not
     have applicable requirements under title VI of the Act.

     Ventilating units used for human comfort that do not exhaust
     air pollutants into the ambient air from any
     manufacturing/industrial or commercial process.

     Non-commercial food preparation.

     Consumer use of office equipment and products, not including
     printers or businesses primarily involved in photographic
     reproduction.

     Janitorial services and consumer use of janitorial products.

     Internal combustion engines used for landscaping purposes.

     Laundry activities, except for dry-cleaning and steam
     boilers.

     Bathroom/toilet vent emissions.

     Emergency (backup)  electrical generators at residential
     locations.

     Tobacco smoking rooms and areas.

     Blacksmith forges.

     Plant maintenance and upkeep activities (e.g., grounds-
     keeping,  general repairs,  cleaning,  painting,  welding,
     plumbing, re-tarring roofs,  installing insulation,  and
     paving parking lots)  provided these activities are not
     conducted as part of a manufacturing process,  are not
     related to the source's primary business activity,  and not
     otherwise triggering a permit modification.1
     ^-Cleaning and painting activities qualify if they are not
subject to VOC or HAP control requirements.  Asphalt batch plant
owners/operators must still get a permit if otherwise required.

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      Repair or maintenance shop activities  not  related to  the
      source's primary business activity,  not  including emissions
      from surface coating or de-greasing  (solvent metal cleaning)
      activities,  and not otherwise triggering a permit
      modification.

      Portable electrical generators that  can  be moved  by hand
      from one location to another2.

      Hand-held equipment for buffing, polishing, cutting,
      drilling,  sawing,  grinding,  turning  or machining  wood, metal
      or plastic.

      Brazing,  soldering and welding equipment,  and cutting
      torches  related to manufacturing and construction activities
      that do  not  result in emission of HAP  metals.

      Air  compressors and pneumatically operated equipment,
      including hand tools.

      Batteries and  battery charging stations, except at battery
      manufacturing  plants.

      Storage  tanks,  vessels,  and  containers holding or storing
      liquid substances  that  will  not emit any VOC or HAP.4

      Storage  tanks,  reservoirs, and pumping and handling
      equipment  of any size  containing soaps, vegetable  oil,
      grease,  animal  fat,  and nonvolatile aqueous salt  solutions,
      provided appropriate lids  and covers are utilized.

      Equipment  used  to  mix and  package, soaps, vegetable oil,
      grease,  animal  fat,  and nonvolatile aqueous salt  solutions,
      provided appropriate lids  and covers are utilized.
     2"Moved by hand" means that it can be moved without the
assistance of any motorized or non-motorized vehicle, conveyance,
or device.

     3Brazing, soldering and welding equipment, and cutting
torches related to manufacturing and construction activities that
emit HAP metals are more appropriate for treatment as
insignificant activities based on size or production level
thresholds.  Brazing, soldering, welding and cutting torches
directly related to plant maintenance and upkeep and repair or
maintenance shop activities that emit HAP metals are treated as
trivial and listed separately in this appendix.

     Exemptions for storage tanks containing petroleum liquids
or other volatile organic liquids should be based on size limits
such as storage tank capacity and vapor pressure of liquids
stored and are not appropriate for this list.

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     Drop hammers  or hydraulic presses  for  forging or
     metalworking.

     Equipment used exclusively  to  slaughter animals, but not
     including other equipment at slaughterhouses, such as
     rendering cookers, boilers, heating plants,  incinerators,
     and electrical power generating equipment.

     Vents from continuous emissions monitors and other
     analyzers.

     Natural gas pressure regulator vents,  excluding venting at
     oil and gas production facilities.

     Hand-held applicator equipment for hot melt  adhesives with
     no VOC in the adhesive formulation.

     Equipment used for surface  coating, painting, dipping or
     spraying operations, except those  that will  emit VOC or HAP.

     C02 lasers,  used  only on  metals and other materials  which  do
     not emit HAP  in the process.

     Consumer use of paper trimmers/binders.

     Electric or steam-heated drying ovens and autoclaves, but
     not the emissions from the articles or substances being
     processed in the ovens or autoclaves or the  boilers
     delivering the steam.

     Salt baths using nonvolatile salts that do not result in
     emissions of any regulated air pollutants.

     Laser trimmers using dust collection to prevent fugitive
     emissions.

     Bench-scale laboratory equipment used for physical or
     chemical analysis, but not lab fume hoods or vents.

     Routine calibration and maintenance of laboratory equipment
     or other analytical instruments.

     Equipment used for quality control/assurance or inspection
     purposes,  including sampling equipment used to withdraw
     materials for analysis.

     Hydraulic and hydrostatic testing equipment.

     Environmental chambers not using hazardous  air pollutant
     (HAP)  gasses.
     5Many lab fume hoods or vents might qualify for treatment as
insignificant (depending on the applicable SIP)  or be grouped
together for purposes of description.

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Shock chambers.

Humidity chambers.

Solar simulators.

Fugitive emission related to movement of passenger vehicles,
provided the emissions are not counted for applicability
purposes and any required fugitive dust control plan or its
equivalent is submitted.

Process water filtration systems and demineralizes.

Demineralized water tanks and demineralizer vents.

Boiler water treatment operations, not including cooling
towers.

Oxygen scavenging (de-aeration) of water.

Ozone generators.

Fire suppression systems.

Emergency road flares.

Steam vents and safety relief valves.

Steam leaks.

Steam cleaning operations.

Steam sterilizers.

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                  UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                       RESEARCH TRIANGLE PARK. NC 27711
                                   5fi96
                                        OFFICE OF
                                     AIR QUALITY PLANNING
                                      AND STANDARDS
 MEMORANDUM
 SUBJECT:



 FROM:


 TO:
White Paper Number 2  for Improved Implementation of the
Part 70 Operating Permits Program
Lydia N. Wegman,  Deputy Director
Office of Air  Quality Planning and Standards (MD-^10)

Director, Office  of  Ecosystem Protection,  Region I
Director, Environmental Planning  and  Protection
  Division, Region II
Director, Air, Radiation and  Toxics Division,
  Region III
Director, Air, Pesticides and Toxics  Management
  Division, Region IV
Director, Air  and Radiation Division, Region V
Director, Multimedia Planning and Permitting Division,
  Region VI
Director, Air, RCRA  and TSCA  Division, Region  VII
Assistant Regional Administrator,  Office of  Pollution
  Prevention,  State  and Tribal Assistance, Region VIII
Director, Air  and Toxics  Division,  Region  IX
Director, Office  of  Air,  Region X
     Please  find attached White Paper Number 2 for improved
implementation  of the part 70 operating permits programs.  This
guidance  is  intended to enable State and local agencies to take
further steps to reduce the complexity and preparation costs of
part 70 permit  applications and of the part 70 permits
themselves.  It is intended to supplement,  not obviate, the
guidance  provided in EPA's "White Paper for Streamlined
Development  of  Part 70 Permit Applications" (July 10,  1995).
This guidance is consistent with,  and furthers the goals of,  the
presidential initiatives to streamline and reinvent government.

     The  attached guidance is divided into five sections as
follows:

     II. A.  Streamlining Multiple Applicable  Requirements On The
Same Emissions  Unit(s).

     II..B.  Development Of Applications  And Permits For Outdated
SIP Requirements.

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      II. C.  Treatment  Of  Insignificant Emissions Units.

      II. D.  Use Of Major  Source And Applicable Requirement
      Stipulation.

      II. E.  Referencing Of Existing Information In Part 70
      Permit Applications And Permits.

      Streamlining will  lead to substantial reductions in
permitting burdens and  improved part 70 implementation by
allowing for the first  time multiple applicable emissions limits
and work practices expressed in different forms and averaging
times to be reduced to  a single set of requirements (which can be
an alternative to all those requirements being subsumed).  It
will  also allow various monitoring, recordkeeping, and reporting
requirements that are not  critical to assuring compliance with
the streamlined (most stringent) limit to be subsumed in the
permit.  Any such streamlining must provide that compliance with
the streamlined limit would assure compliance with all applicable
requirements.  In addition, substantial reductions in burden are
expected to result from the reduced confusion and cost where
locally adopted rules differ from the EPA-approved State
implementation plan, the streamlined treatment of insignificant
emissions units, the use of stipulations by sources as to which
regulations apply, and  the cross referencing rather than
repetition of certain existing information.

     There is an immediate need for the implementation of this
guidance.  A large number of sources have filed complete part 70
applications, and increasing numbers of these submittals are
being processed for permit issuance.  I strongly encourage you to
work with your States to effect near-term use of this guidance.

     Substantial contributions to this White Paper have come from
the California Title V  Implementation Working Group_.  I want to
thank you and your staff for your support and Region IX in
particular for their leadership and considerable efforts in
developing and completing this paper.  I invite your suggestions
on what additional guidance is needed to improve further the
initial implementation  of title V.  If you should have any
questions regarding the attached guidance, please contact Michael
Trutna at (919) 541-5345, Ginger Vagenas of Region IX at (415)
744-1252, or Roger Powell at (919) 541-5331.

Attachment

cc:  M. Trutna (MD-12)
     G. Vagenas (Region IX)
     R. Powell (MD-12)
     A. Schwartz (2344)

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WHITE PAPER NUMBER 2 FOR IMPROVED IMPLEMENTATION

    OF THE PART 70 OPERATING PERMITS PROGRAM
      U.S.  ENVIRONMENTAL PROTECTION AGENCY

  OFFICE OF AIR QUALITY  PLANNING AND STANDARDS

                 March 5, 1996
 Contacts:   Michael  A.  Trutna  (919)  541-5345
            Ginger Vagenas     (415)  744-1252
            Roger Powell       (919)  541-5331

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         WHITE PAPER NUMBER 2 FOR IMPROVED IMPLEMENTATION
             OF THE PART 70 OPERATING PERMITS PROGRAM

                           March 5,  1996


 I.   OVERVIEW.

      This  guidance is  intended  to enable  State and local agencies
 to  take  further  steps  to  reduce the complexity and preparation
 costs of part  70  permit applications and  of the part 70 permits
 themselves and to remove  unintended barriers and administrative
 costs.   It is  also intended  to  build on and expand the guidance
 provided in the  Environmental Protection  Agency's (EPA) "White
 Paper for  Streamlined  Development of Part 70 Permit Applications"
 (July 10,  1995).   White Paper Number 2 supplements, not obviates,
 the first  White  Paper.  Both papers should be consulted for
 guidance in improving  the  implementation  of title V of the Clean
 Air Act  (Act)  (i.e., part  70 operating permits programs).  In
 particular, White Paper Number  2 is designed to simplify the
 treatment  of overlapping regulatory requirements and
 insignificant  emissions units and to clarify the use of citations
 and incorporation by reference  in the part 70 permitting process.
 This effort is consistent  with  and  furthers the goals of the
 Presidential initiatives to streamline and reinvent government.

      Substantial contributions  to  this White Paper have come
 from the California Title  V Implementation Working Group (Working
 Group).  The California Air Resources Board and several
 California air districts and industries which (together with EPA)
 make up  the Working Group  have decades of experience with
 operating  permits.  These  operating permits programs are
 generally  just one component of  air programs that, in many
 districts,  also include local emissions standards (often with
 associated recordkeeping and reporting requirements), monitoring
 requirements, inspections, source testing, and new source review
 (NSR).   The EPA has found  the insights and recommendations of the
Working  Group extremely useful in integrating these various
 requirements using the  part 70 permitting process.  While much of
the  guidance contained  herein addresses situations arising in
California,  it is  available for  use  nationwide.

     This  guidance is divided into  five sections and two
attachments which  are generally  summarized as follows (the reader
is,  however, referred to the applicable main sections of the
guidance for more  detailed information):

     Section II.  A.  Streamlining Multiple Applicable
     Requirements  On The Same Emissions Unit(s).

          The EPA  and States have developed different and often
     overlapping applicable requirements  governing the same
     emissions units to serve the purposes of different air
     programs.   As a result,  emissions  units  at  a stationary

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 source may be subject to several parallel  sets  of
 requirements.  This can result in some of  the requirements
 being redundant and unnecessary as a practical  matter,  even
 though the requirements still legally apply to  the source.
 In cases where compliance with a single set of  requirements
 effectively assures compliance with all requirements/
 compliance with all elements of each of the overlapping
 requirements may be unnecessary and could  needlessly consume
 resources.  For example, a source could be subject to
 overlapping standards that result in two or more  different
 emissions limits for the same pollutant and two or more
 source monitoring requirements for instrumentation,
 recordkeeping, and reporting.

      Today's guidance describes how a source may  propose
 streamlining to distill or "streamline"  multiple  overlapping
 requirements into one set that will assure compliance with
 all requirements.  According to the guidance, multiple
 emissions limits may be streamlined into one limit if that
 limit is at least as stringent as  the most stringent limit.
 (Limitations that apply to the streamlining of  acid rain
 requirements are described in  the  main section  of  this
 guidance.)   If no one requirement  is  unambiguously more
 stringent than the others,  the applicant may synthesize the
 conditions  of all the applicable requirements into a single
 new permit  term that will  assure compliance with all
 requirements.   The streamlined monitoring,  recordkeeping,
 and reporting requirements would generally be those
 associated  with the most stringent emissions limit,
 providing they would assure compliance to the same extent as
 any subsumed monitoring.  Thus, monitoring, recordkeeping,
 or  reporting to determine compliance with subsumed limits
 would  not be required where the source implements the
 streamlined approach.

     It  is  important to emphasize that while streamlining
 may be initiated by either the applicant or the permitting
 authority,  it  can only be implemented where the permit
 applicant consents  to its use.

 Section  II.  B.   Development Of Applications And Permits For
 Outdated  SIP Requirements.

     Historically,  long periods of time have been required •
 to  review and  approve  (or disapprove) SIP revisions.  The
 EPA has undertaken  a number of reforms to its SIP approval
 process and  is continuing to make significant progress  in
 reducing  the amount of time required for taking action  on
 SIP revisions.  Despite the progress we have made to date,
there are many local rules now pending EPA  review and
approval  for inclusion in the SIP.  The gap between the
approved  SIP and the State rules is of concern because
States and local agencies enforce their current  rules (which

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 are usually more stringent than the approved SIP rules) and
 often, as a practical matter/ no longer enforce the
 superseded and outdated rules in the SIP.  On the other
 hand, EPA only recognizes and can only enforce the SIP-
 approved rules.  This situation can cause confusion and
 uncertainty because some sources are effectively subject to
 two different versions of the same rules.  Part 70's
 application, certification, and permit content requirements
 highlight this longstanding concern.

      The most problematic situation arising from the gap
 between the approved SIP and the State rules is where a
 technology-forcing rule that has been approved into the SIP
 is found by the State to be impossible to meet.  Under these
 circumstances, the State would generally adopt a relaxation
 of this rule and submit it to EPA as a SIP revision.  Until
 EPA is able to take action on the submitted relaxation,
 sources remain subject to a rule that is impossible to meet.

      This section of the guidance largely addresses the
 problem by authorizing permitting authorities and their
 sources to base permit applications on State and local rules
 that have been submitted for SIP approval,  rather than on
 the potentially obsolete approved SIP provisions that they
 would replace.  Such reliance on pending State and local
 rules is proper when the permitting authority has concluded
 that the pending rule will probably be approved, or when the
 source believes it can show that the pending rule is more
 stringent than the rule it would replace.   However,  if the
 pending rule is not more stringent than the rule it would
 replace,  the permit cannot be issued until  the pending rule
 is approved.

 Section II.  C.  Treatment Of Insignificant  Emissions Units.

      This section provides for the streamlined treatment of
 generally applicable requirements  that apply to
."insignificant" emissions units (lEU's).   It is intended to
 address current concerns that resources will be
 unnecessarily consumed by matters  of trivial environmental
 importance.

      The  guidance clarifies  that the permitting authority
 has broad discretion to tailor the permit application and
 permit for small  equipment and activities as long as
 compliance with Federal requirements is assured.   For both
 the permit application and the permit,  information on lEU's
 may be generically grouped and listed without  emissions
-estimates, unless emissions  estimates are needed for another
 purpose such  as determining  the  amount of permit fees that
 are calculated using total source  emissions.   This approach
 would utilize  standard permit  conditions with  minimal or  no
 reference  to  any  specific  emissions  unit or  activity,

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provided that  the scope of the requirement and its
enforcement are  clear.

     The EPA also believes that for lEU's/ a responsible
official's initial compliance certification may be based on
available information and the latest cycle of required
information.

     The guidance further provides that the permitting
authority can  use broad discretion in determining the nature
of any required  periodic monitoring.  The EPA's policy on
lEU's is based on the belief that these emissions points are
typically associated with inconsequential environmental
impacts.

Section II. D.   Use Of Major Source And Applicable
Requirement Stipulation.

     There have  been concerns expressed that extensive new
emissions data would be needed to verify major source status
or the applicability of Federal requirements.  White Paper
Number 2 clarifies that for applicability purposes, a source
familiar to the  permitting authority may simply stipulate in
its application  that it is major or that Federal
requirements apply as specified in the application.  The
paper clarifies  that there is no need to prepare and submit
extensive information about the source that "proves" it is
subject to any requirements that it stipulates are
applicable.  This does not affect the requirement to provide
information that is otherwise required by part 70.

Section II. E.   Referencing Of Existing Information In
Part 70 Permit Applications And Permits.

     Concerns  have been raised that a source must re-prepare
and resubmit information that is readily available, or that
the permitting authority already has, to complete part 70
permit applications.  In addition, similar concerns have
been voiced regarding the large and potentially unnecessary
burden of developing permits which repeat rather than
reference certain types of regulatory requirements that
apply to the source (e.g., monitoring and testing
protocols).  The guidance clarifies that, in general, the
permitting authority may allow information to be cited or •
cross-referenced in both permits and applications if the
information is current and readily available to the
permitting agency and to the public.  The citations and
references must  be clear and unambiguous and be enforceable
from a practical standpoint.  After permits specify which
emissions limits apply to identified emissions units, cross-
referencing can  be authorized for other requirements (e.g.,
monitoring, recordkeeping, and reporting).

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      Attachment A provides guidance on using the part 70 permit
 process to establish alternative test methods,  while Attachment B
 provides example SIP language that could be used by both part 70
 and non-part 70 sources to establish alternative requirements
 without the need for a prior source-specific SIP revision.   This
 guidance should be particularly useful to those seeking greater
 certainty or to establish alternative test methods to those now
 approved by EPA,  [Note that Sections III. and  beyond in
 Attachment B are currently in draft form.]

      Streamlining will lead to substantial reductions in
 permitting burdens by allowing for the first time multiple
 applicable emissions limits and work practices  expressed in
 different forms and averaging times to be reduced to a single set
 of requirements.  It will also lower current burden levels  by
 allowing various monitoring, recordkeeping,  and reporting
 requirements that are not critical to assuring  compliance with
 the streamlined (most stringent) limit to be subsumed in the
 permit.  In addition, substantial reductions in burden are
 expected to result from the reduced confusion and cost where
 locally adopted rules differ from the EPA-approved SIP,  the
 streamlined treatment of insignificant emissions units,  and the
 use of stipulations and the cross-referencing rather than
 repetition of certain existing information in part 70
 applications and permits.

      The EPA believes that the guidance contained herein  may be
 implemented by permitting  authorities and sources  without
 revisions to part 70 programs,  unless a provision  is specifically
 prohibited by State regulations.   In  some situations,  EPA will be
 proceeding in parallel to  issue clarifying rules.  The EPA
 strongly encourages' States to  allow sources  to take  advantage of
 the streamlining opportunities  provided in this  guidance.   The
 Agency also suggests the permitting authority develop  information
 about permits issued with  successful  streamlining  and make  it
 available to other  similar sources  to help avoid repetitive
 costs.

      Sources  are advised to consult with  their permitting
 authority to understand how the  policies  of. this White Paper will
 be  implemented.   In  several situations  (particularly those where
 sources  have  already filed complete applications), permitting
 authorities may choose  to  propose streamlining options and,  if
 mutually agreeable,  work with the source to support a draft
 permit containing a  streamlined  limit.  Where EPA is the
 permitting authority pursuant to part  71 regulations, the Agency
will  implement  both  White  Papers to the extent possible and
promote  similar implementation where EPA delegates responsibility
 for the part  71  program to a State.

     The policies set out  in this paper are intended solely as
guidance, do not represent  final Agency action,  and cannot be
relied upon to  create any  rights enforceable by  any party.

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 II.   ADDITIONAL GUIDANCE ON STREAMLINED DEVELOPMENT OF PART 70
 PERMITS AND APPLICATIONS.

 A.   Streamlining Multiple Applicable Requirements1 On The Same
 Emissions Unit(s).2

 1.   Issue.

      Can multiple redundant or  conflicting requirements
 (emissions limits, monitoring/  recordkeeping/ reporting
 requirements)  on the same emissions unit(s) be streamlined  into a
 single set of  understandable and enforceable permit conditions?
 May  an applicant propose to minimize or consolidate applicable
 requirements?   May a permitting authority develop such a
 proposal?  How would a  permit application with a streamlining
 proposal satisfy compliance certification requirements?

 2.   Guidance.

      A source,  at its option/ may propose in its application to
 streamline multiple  applicable  requirements into a single set of
 permit terms and conditions3.  The  overall  objective would be to
     *Title IV  applicable  requirements  are an exception  to this
general rule.   As set out in S 72.70(b)/ to  the  extent that any
requirements  of  part 72  and part 78 are  inconsistent with the
requirements of part 70, part 72 and part 78 will take precedence
and will govern the issuance, denial/  revision, reopening/ renewal/
and appeal of  the acid  rain  portion  of  an  operating permit.  The
subsequent  descriptions   of streamlining   therefore  apply  to
requirements under parts  72  and 78 only to the extent that such
requirements  are,  at  the  option  of  the  applicant/  used  as
streamlining  requirements because  they are  the  most stringent
applicable requirements.

     'Emissions unit(s)  means any part or activity of a stationary
source that emits or has  the potential  to  emit any regulated air
pollutant  (as  defined in  section  70.2)  or any pollutant listed
under  section  112(b)  of the Act.   It  is  used  in this paper to
include specifically a grouping  of  emissions units at a stationary
source that shares the same applicable requirement and compliance
demonstration method for a given pollutant.

     *The  EPA recognizes that the  described  streamlining  process
may not be allowed by  all State  regulations or be  warranted or
desired  for all  applicable requirements.    Similarly/  partial
streamlining  (i.e./   the  streamlining  of  some/  but  not  all/
applicable requirements  that  apply to the same emissions units) may.
be most cost effective where  difficult comparisons or correlations
are  needed  for  streamlining   the  other   remaining  applicable
requirements.  In addition, there is no  barrier to more extensive

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 determine the set of permit terms and  conditions  that will  assure
 compliance with all applicable requirements  for an  emissions
 point or group of emissions points so  as to  eliminate redundant
 or conflicting requirements.  Otherwise applicable  requirements
 that are subsumed in the streamlined requirements could  then be
 identified in a permit shield.  The process  would be carried out
 in conjunction with the submittal and  review of a part 70 permit
 application,  as an addendum to an application, or as an
 application for a significant revision to the part  70 permit
 (unless  EPA in its revisions to part 70 authorizes  permitting
 authorities to use a less extensive permit revision process).
 The EPA  plans to revise part 70 to provide that the compliance
 certification required with initial application submittals  may be
 based on the  proposed streamlined applicable requirement where
 there is sufficient source compliance  information on which  to
 base such a certification.

      The permitting authority, at its  option, may evaluate
 multiple applicable requirements for a source category and
 predetermine  an acceptable streamlining approach.   Such
 evaluations should be made readily available to applicants.  It
 is up to the  applicant,  however,  to request  in its  application
 that such streamlined requirements  be  contained in  the part 70
 permit.   Where streamlining would be of mutual interest, the
 permitting authority and the source could work together during
 the permit development stage to establish a basis for a
 streamlined limit prior  to the issuance of a draft permit.  This
 cooperative activity must result  in a  record consistent with this
 guidance which supports  the draft permit containing the
 streamlined requirement.   The approach might be particularly
 useful where  a source has already submitted a complete part 70
 permit application and the permitting  authority does not want to
 require  the source to submit a formal  amendment to its
 application.   Any streamlining demonstration must be promptly
 submitted to  EPA  upon its availability and in advance of draft
 permit issuance unless EPA has  previously agreed with the
 permitting  authority not  to  require  it (e.g., the proposed
 streamlining  is of a simple  and/or  familiar type with no new
 concerns).

      In  addition,  general  permits could be useful  to allow the
 transfer of streamlined requirements from the first  source to be
 covered  by  them to other  similar  sources or emissions units.  The
 information development and  review conducted as  part of
 streamlining  for  an  individual source can be used  by the
permitting authority to generate a general  permit  for similar
 sources  or portions  of sources.  If a general permit were used,
EPA and public review beyond that needed to issue  the general
permit would not  be  necessary when sources  subsequently  applied
 for the  streamlined  permit conditions established  under  the
streamlining occurring in the future.

                                7

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 general permit.   Even where a general  permit is not issued, the
 availability of  information obtained from the streamlining of one
 source may be useful as a model for future streamlining actions
 involving other  similar sources.

      Streamlined permit terms should be covered by a permit
 shield.   The permit shield will result in an essential degree of
 certainty by providing that when the source complies with the
 streamlined requirement, the source will be considered to be in
 compliance with  all of the applicable  requirements subsumed under
 the  streamlined  requirement.  Where the program does not now
 provide for a permit shield, the permit containing streamlined
 requirements should clarify this  understanding (See section
 II.A.3.  discussion).  Permitting authorities without provisions
 for  permit shields  are encouraged to add a permit shield
 provision at the first opportunity,  if they wish to realize fully
 the  benefits of  streamlining.

      Sources that opt for the streamlining of applicable
 requirements must demonstrate the adequacy of their proposed
 streamlined requirements.   The following principles should govern
 their  streamlining  demonstrations:

     a.   The most stringent of multiple applicable emissions
     limitations  for a specific regulated air pollutant on a
     particular  emissions  unit must  be determined taking into
     account*'5:

           o   Emissions limitation formats (emissions limits in
           different  forms  must be converted to a common format
           and/or  units of  measure or a correlation established
           among  different  formats  prior to comparisons);

           o   Effective dates of compliance (to the extent
           different);

           o   Transfer  or collection efficiencies (to the extent
     Applicable requirements mean those requirements recognized by
EPA, as defined in S 70.2.  State and local permitting authorities
may  modify,  eliminate,  or streamline  "State-only"  requirements
based on existing State or local law and procedures.

     'Sources  may, in the  interest  of  greater uniformity,  opt to
expand the scope of an applicable  requirement to more emissions
units so  that  the  same requirements  would  apply  over a  larger
section of the plant or its entirety, provided compliance with all
applicable requirements is  assured.  Though  a permit may through
streamlining expand the  scope of applicable requirements to include
new  emissions  units,   it may  not  change   the  basis  on  which
compliance is determined  (e.g., emissions unit by emissions unit,
if that is the intent of the applicable requirement).

                                8

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           relevant);

           o  Averaging times6;  and

           o  Test methods prescribed in the applicable
           regu i rement s7.

      Limitations for specific pollutants can be subsumed by
 limitations on classes of pollutants providing the applicant can
 show that the streamlined limit will regulate the same set of
 pollutants to the same extent as the underlying applicable
 requirements.  For example,  a volatile organic compound (VOC)
 limitation could effectively subsume an organic hazardous air
 pollutant (HAP) limitation for a constituent such as  hexane,
 provided the VOC limit is at least  as stringent as the hexane
 limitation.  Where a single  VOC limit subsumes multiple HAP
 limits, the permit must be written  to assure that each of the
 subsumed limits will not be  exceeded.   However,  a limit for a
 single or limited number of  compounds cannot be used  to subsume  a
 limit for a broader class (e.g.,  a  hexane limit for a VOC limit)
 because this would effectively deregulate any of the  class that
 are not covered by the more  limited group.

      b.  Work practice requirements must be  treated as follows:

           o  Supporting  An Emissions Limit.   A work practice
           requirement directly supporting an emissions limit
           (i.e.,  applying to the  same  emissions  point(s)  covered
            the streamlining of requirements with varying averaging
 times  is viable under this policy,  in  no  event can requirements
 which  are specifically  designed  to address a  particular health
 concern   (including  those with  short   term  averaging times)  be
 subsumed into  a requirement which is any less protective.

     7The predominant  case is  expected to involve  test methods
 which  have been EPA  approved either as part of the SIP or as part
 of  a  Federal  section  111 or  112  standard.    If  a  permitting
 authority is seeking to base  a streamlined  limit on an alternative
 or new test method relative to the ones  already approved by EPA for
 the SIP  or a section 111, or section  112 standard, some additional
 steps  are needed to  complete  the  proposed streamlining.    As
 described in more detail in  Attachment  A,  permitting authorities
 may only implement streamlining which involves  alternative or new
 test methods within the  flexibility granted by the SIP  and any
 delegation of authority from EPA (where section  111/112  standards
 are involved).   With respect to SIP requirements,  the ability for
 a permitting authority to authorize use  of a different test method
 depends on the  governing  language contained  in the SIP, Attachment
 B contains example SIP language which provides a mechanism that can
 establish  an  alternative  applicable requirement  in such  cases
without the need for source specific SIP revisions.

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           by the emissions limit)  is  considered inseparable from
           the emissions limit for  the purposes of  streamlining
           emissions limits.   The proposed  streamlined  emissions
           limit must include its directly  supporting work
           practices, but need not  include  any work practice
           standards that are associated with and directly support
           the subsumed limit(s);

           o  Not Supporting  An Emissions Limit.  Similar  work
           practice requirements  which apply to the same emissions
           or emissions point but which do  not directly support an
           emissions limit may be streamlined (e.g., different
           leak detection and repair (LDAR8) programs).   The
           streamlined work practice requirement may be composed
           of provisions/elements (e.g., frequency  of inspection,
           recordkeeping)  from one  or  more  of the similar  work
           practice requirements, provided  that the resulting
           composite work practice  requirement has  the  same base
           elements/provisions  as the  subsumed work practice
           requirements (e.g. has a frequency of Inspection or has
           recordkeeping if the subsumed work practice
           requirements have  these  elements/provisions).

           Multiple work practice requirements which apply to
           different emissions  or emissions points cannot  be
           streamlined.

     c.  Monitoring,  reporting, and recordkeeping requirements
     should  not be used to determine the relative stringency of
     the applicable requirements to which they are applicable.

     d.  Where the preceding guidance  does not allow sufficient
     streamlining  or where it is difficult to determine a single
     most  stringent  applicable emissions limit by comparing all
     6For LDAR  programs,  stringency comparisons  likely will  be
based on the aggregate requirements of each LDAR program (screening
levels,  frequency  of inspection, repair periods,  etc,) and the
resultant overall  actual emissions reduction  expected  from the
affected  equipment.   In cases  where  a convincing  demonstration
cannot be made  based on existing information or the  regulations
themselves  have  not  clearly  defined the expected  emissions
reduction, verifying test data may be required.  Alternatively, the
applicant, the permitting authority, and EPA can work  together to
devise a method consistent with the principles  of EPA's "Protocol
For  Equipment  Leak Emissions   Estimation"   (EPA-453/R-95-017,
November  1995)  for  determining relative  stringency.   Where  a
demonstration of  the relative stringency  of  LDAR programs  as
applied  to  the  affected equipment  is  not  feasible,  sources may
modify elements  of a particular LDAR program to produce a program
that clearly  (i.e.,  without further analysis)  assures compliance
with the other applicable LDAR programs.

                               10

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      the applicable emissions limits with each other,  sources may
      perform any or all the following activities to justify
      additional or different streamlining:

           o  Construct an alternative or hybrid emissions limit9
           that is at least as stringent as any applicable
           requirement;

           o  Use a previously "State-only" requirement as the
           streamlined requirement when it is at least  as
           stringent as any applicable Federal requirement it
           would subsume (this requirement would then become a
           federally-enforceable condition in the part  70  permit);

           o  Use a more accurate and precise test method  than the
           one applicable (see footnote number 7)  to eliminate
           doubt in the stringency determination;  or

           o  Conduct detailed correlations to prove the relative
           stringency of each applicable requirement.

      e.   The monitoring, recordkeeping, and reporting
      requirements associated with the most stringent emissions
      requirement are presumed appropriate for use with the
      streamlined emissions limit, unless reliance on that
      monitoring would diminish the ability to assure compliance
      with the streamlined requirements.10  To evaluate  this
      presumption,  compare whether the monitoring  proposed would
      assure compliance with the streamlined limit to the  same
      extent as would the monitoring applicable to each subsumed
      limit.  If not, and if the monitoring associated  with the
      subsumed limit is also relevant to and technically feasible
      for the streamlined limit,  then monitoring associated with a
      subsumed limit (or other qualifying monitoring11)  would be
      *Title  V  allows  for the  establishment  of -a  streamlined
 requirement,   provided  that  it  assures  compliance  with  all
 applicable requirements it subsumes.  However,  EPA recognizes that
 construction  of  such hybrid or  alternative  limits can  be more
 complicated than  the  situation where  the  streamlined limit is one
 of  the  applicable  emissions limits.   Accordingly,  sources  and
 States may need more time  to agree on acceptable demonstrations and
 may  wish to defer such streamlining  until  after issuance of the
 initial  part  70 permit.

      "Quality assurance  requirements  pertaining to  continuous
monitoring systems should be evaluated using the same approach.

      "The applicant may  propose  alternative monitoring  of equal
 rigor.   Permitting  authorities  may  only implement  streamlining
 which involves  alternative or new  monitoring  methods  within the
 flexibility granted by the SIP and any delegation of authority from

                                11

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      included  in  the permit.12   The recordkeeping and reporting
      associated with the selected monitoring approach may be
      presumed  to  be appropriate for use with the streamlined
      limit13'1*'15.

      f.  Permitting authorities must include citations to any
      subsumed  requirements in the permit's specification of the
      origin and authority of permit conditions.  In addition/ the
      part  70 permit must Include any additional terms and
      conditions as necessary to assure compliance with the
      streamlined  requirement.  In all instances, the proposed
      permit terms and conditions must be enforceable as a
      practical matter.

3.  Process.

      Streamlining may be accomplished through an applicant
EPA (where section 111/112 standards are involved).

     "Permitting  authorities  and  sources  should  presume  that
existing  monitoring  equipment  [such  as  continuous  emissions
monitors (CEMs)] required and/or currently employed  at the source
should be retained.  A permitting authority or applicant would have
the opportunity to demonstrate  that retention  of such monitoring
equipment is inappropriate, such as when the monitoring equipment
is  no  longer  relevant  or is  technically infeasible  (e.g.,  the
source has switched to a closed loop process without emissions or
the streamlined limit corresponds to levels too low for a monitor
to measure,  such  as  S02 emissions from a boiler firing pipeline
quality natural gas.)

     "Where  recordkeeping  is  the means  of determining compliance
(e.g., in the miscellaneous metal parts and products coating rules,
the typical role of monitoring is  fulfilled by recordkeeping), the
appropriate  recordkeeping would  be  determined  in the same manner
described for monitoring.

     "Where  a  standard includes recordkeeping associated with a
limit in addition to recordkeeping  linked to a monitoring device
(e.g.,  a coating  facility that  has recordkeeping  requirements
pertaining  to  coating  usage,  as  well  as  recordkeeping  for
monitoring  associated  with  an  add-on  control),  both types  of
recordkeeping must be incorporated into the permit.

     "The  result offers considerable  potential  to reduce  the
different reporting burdens associated  with different applicable
requirements well  beyond  what was  previously  available (e.g.,
synchronizing  the  required   reporting  cycles   from  different
applicable requirements  to coincide with the most  stringent one
beginning at the earliest required date).  (See also Final General
Provisions, S 63.10(a)(5), March 16, 1994.)

                                12

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 proposing to streamline multiple requirements applicable to a
 source,  the permitting authority developing streamlining options
 for sources or source categories that would be subsequently
 accepted at the election of permittees,  or the applicant working
 in agreement with the permitting authority after filing an
 initial  complete application.   The first six of the following
 actions  wuld be taken by the source or/  as appropriate,  by the
 permitting authority.  The level of effort to complete  these
 actions  will depend on the relative complexity of the
 streamlining situation.   The permitting  authority would then
 perform  steps seven and eight.

      Step One - Provide a side-by-side comparison of all
      requirements included in the streamlining proposal  that are
      currently applicable and effective  for the specific
      emissions units of a source16.  Distinguish between
      requirements which are emissions and/or work practice
      standards, and monitoring'and compliance demonstration
      provisions.

      Step Two - Determine the most stringent emissions  and/or
      performance standard (or any hybrid or alternative  limits as
      appropriate) consistent with the above streamlining
      principles and provide the  documentation relied upon  to  make
      this determination.   This process should be  repeated  for
      each emissions unit  pollutant combination for which the
      applicant is proposing a streamlined requirement.

      Step Three - Propose one set of  permit  terms and conditions
      (i.e.,  the streamlined requirements) to  include the most
      stringent emissions  limitations  and/or  standards,
      appropriate monitoring and  its associated recordkeeping  and
      reporting (see section II.A.2.e.),  and  such  other conditions
      as  are  necessary to  assure  compliance with all applicable
      requirements.
     16A  future applicable requirement (e.g.,  MACT standard newly
promulgated under section 112 with a compliance date 3 years in the
future)  may be  determined to be  the most stringent  applicable
requirement if compliance with it would assure  compliance with less
stringent but  currently applicable requirements.  In such a case.,
the source may propose  either  a  streamlined requirement  based on
immediate compliance with the future applicable requirement or it
may opt  for a  phased  approach  where  the  permit would  contain two
separate time-sensitive requirements.  Under the latter approach,
one streamlined requirement addressing all currently  applicable
requirements would  be defined to  be effective until  the  future
applicable requirement  became  effective.   The  permit  would  also
contain a second streamlined requirement  which also addressed the
future applicable requirement and would become the new streamlined
requirement after expiration of the first streamlined requirement.

                               13

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 Step  Four -   Certify  compliance (applicant only) with
 applicable requirements.  The EPA is planning to revise its
 part  70  regulations to provide that a source may certify
 compliance with only  the proposed streamlined limit.  Until
 this  is  accomplished/ EPA recommends that a source
 certifying compliance only with the streamlined limit
 indicate this in an attachment to the certification, so that
 it  is clear  that the  certification is being made with
 respect  to a set of terms and conditions that the source
 believes "assure compliance" with all applicable
 requirements.   In any event, a source may only certify
 compliance with a streamlined limit if there is source
 compliance data on which to base such a certification.
 (Such data should be  available where the streamlined
 requirement  is  itself an applicable requirement and may be
 available if the streamlined limit is an alternative limit,
 e.g., a  previously State-only emissions limitation).  If
 there is not, then certifications must instead be made
 relative to  each of the applicable requirements judged to be
 less  stringent  and must be based on data otherwise required
 under them to make this point clear.

 Step  Five -  Develop a compliance schedule to implement any
 new monitoring/compliance approach relevant to the
 streamlined  limit if the source is unable to comply with it
 upon  permit  issuance.  The recordkeeping, monitoring, and
 reporting requirements of the applicable requirements being
 subsumed would  continue to apply in the permit (as would the
 requirement  for the source to operate in compliance with
 each  of  its  emissions limits) until the new streamlined
 compliance approach becomes operative.

 Step  Six - Indicate in the application submittal that
 streamlining of the listed applicable requirements under a
 permit shield (where available) is being proposed and
 propose  the  establishment of a permit shield which would
 state that compliance with the streamlined limit assures
 compliance with the listed applicable requirements.  All
 emission and/or performance standards not subsumed by the
 streamlined  requirements must be separately addressed in the
 part  70  permit  application.

 Step  Seven - Evaluate the adequacy of the proposal and its
 supporting documentation.  The EPA recommends that the
 permitting authority communicate its findings to the
 applicant and provide reasonable opportunity for the
 applicant to accept the findings or propose a resolution of
the differences before issuance of a draft permit for public
review.   Where  the permitting authority -determines that the
 streamlining proposal is inadequate, the source, to retain
 its application shield, must expeditiously resolve any
 problems  identified by the permitting authority or update
 its prior application based on the individual applicable


                           14

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      requirements previously proposed for  streamlining.

      Step Eight - Note the use of  this process  in any required
      transmittal of a part 70 application, application summary,
      or revised application to EPA and include  the  streamlining
      demonstration and supporting  documentation in  the public
      record.   When the source is required  to provide a copy of
      the application (or summary)  directly to EPA,  it must note
      the proposed use of streamlining.  A  copy  of the
      streamlining demonstration must  be submitted promptly to EPA
      along with the required copy  of  the application or
      application summary (where a  summary  may be submitted to EPA
      in lieu  of the entire part 70 permit  application) unless EPA
      has previously agreed with the permitting  authority not to.
      require  it (e.g., the proposed streamlining is of a simple
      and/or familiar type with no  new concerns).

 4.   Enforcement.

      All terms and conditions of a part 70 permit are enforceable
 by  EPA and citizens, unless certain terms  are designated as being
 only State (or locally)  enforceable.   In addition, a source
 violating a streamlined emissions  limitation in the part 70
 permit may be subject to enforcement  action for violation of one
 (or more)  of  the subsumed applicable  emissions  limits to the
 extent that a violation of the subsumed emissions limit(s) is
 documented.

      Upon receiving a part 70 permit, a source  implementing the
 streamlined approach would not be  subject to an EPA enforcement
 action for any failure to meet monitoring, recordkeeping, and
 reporting requirements that are subsumed within the streamlined
 requirement and specified under the permit shield.  These
 requirements  would no longer be independently enforceable once
 the  permit has  been issued,  provided that the source attempts in
 good faith to implement  the monitoring, recordkeeping,  and
 reporting  requirements  specified in the permit.

      If  subsequently the permitting authority or EPA determines
 that the permit does not assure compliance with applicable
 requirements,  the  permit will  be reopened and revised.

 5.   Discussion.

     As sources  subject  to  title V identify all  applicable
requirements  for inclusion  in  part 70 permit applications,  they
may  find that multiple applicable requirements affect the same
pollutant  or  performance parameter for a  particular emissions
unit.  Likewise, the requirements of federally-enforceable terms
and  conditions  in  preconstruction or operating permits  may
overlap with  the requirements  of other federally-enforceable
rules and  regulations.
                                15

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      In these instances/ a source may be  in compliance with the
 overall emissions limit of each of the applicable  requirements/
 but be required to comply with a multitude  of  redundant or
 conflicting monitoring, reporting, or recordkeeping requirements.
 For example/ a source owner faced with two  emissions limits for
 the same pollutant at a specific emissions  point may be required
 to Install separate monitoring instrumentation and submit
 separate monitoring reports for each,  even  though  one monitor can
 effectively assure compliance with both emissions  limits.
 Furthermore/ the recordkeeping and reporting associated with the
 unnecessary Instrumentation may create an administrative burden
 for both the facility and the implementing  agency  without an
 associated gain in compliance assurance.  Prior to title V there
 has been no federally-enforceable means to  resolve this
 situation.

      The EPA encourages permitting authorities to  allow use by
 the permit applicant of the part 70 permit  Issuance process to
 streamline multiple applicable requirements  to the extent the
 conditions of this policy can be met.   In this way,  the part 70
 process with its procedural safeguards  can be used to focus all
 concerned parties on providing for compliance with a single set
 of  permit terms  that assure compliance with multiple applicable
 requirements instead of maintaining the costs of multiple  sets  of
 controls,  monitoring,  recordkeeping, and reporting approaches.

      The legal basis for streamlining multiple applicable
 requirements relies  on section  504(a), which requires that
 title V permits  contain emissions  limits/standards  and  other
 terms as  needed  to assure  compliance with applicable
 requirements.  This  section  notably does not require repetition
 of  all  terms and conditions  of  an  applicable requirement when
 another applicable requirement  or part 70 permit condition  (i.e.,
 streamlined  requirement) could  be  fashioned to otherwise assure
 compliance with  that applicable requirement.

      Section 504(f)  lends  additional certainty to permit
 streamlining.  It  specifically  provides that the permitting
 authority may authorize that compliance with the permit may be
 deemed  to be compliance with the Act provided that the permit
 includes all applicable requirements.   Thus, this section allows
 the permitting authority to  issue a permit containing a shield
 which protects a source against a claim that it is violating any
 applicable requirements listed  in the permit shield as being
 subsumed under the streamlined requirement,  provided that the
 source meets  the permit terms and conditions that Implement the
 streamlined  requirement.

      Part 70  is also receptive to the issuance of streamlined
 permits.  It  contains parallel language to the statute for
 emissions limits and for permit shields in SS 70.6(a)(l) and (f).
Although language  in S  70.6(a)(3) may appear to restrict
 streamlining  by requiring that all "applicable" monitoring,


                                16

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 recordkeeping,  and reporting requirements  be placed in the
 permit,  EPA did not intend for these provisions  to  preclude
 streamlining.   Instead,  the Agency believes that the provisions
 should be consistent with the flexibility  for  streamlining
 provided in section 504(a) of the Act and  in S 70.6(a)(l).   To
 require otherwise would  be anomalous and could frustrate
 legitimate streamlining  efforts.   The EPA  intends to revise
 part 70  to reflect this  understanding in a future rulemaking.

      Streamlining may be limited  in cases  where  an  applicable
 requirement defines specific monitoring requirements as the
 exclusive means of compliance with an applicable emissions limit.
 Some interpret  these cases to require that only  one set of
 monitoring requirements  may be used to determine compliance  and
 that only these requirements may  appear in the part 70  permit.
 The EPA believes instead that section 504(a) supersedes any  need
 for such exclusive monitoring,  but nonetheless recommends that
 States address  any potential concerns by adopting certain SIP
 language in the future.   States that choose to revise their
 existing SIP's  to contain authorizing language to overcome any
 SIP exclusivity problems may use  the example language in
 Attachment B.   The EPA believes that similar flexibility should
 be  provided to  non-part  70 sources as well.  To  that end,
 Attachment B also provides a SIP  process (currently in  draft
 form)  which would allow  similar flexibility for  non-part 70
 sources.

      With respect to NSR,  States  can process,   in  parallel with
 the part 70 permit issuance process,  a revision  to  an existing
 NSR permit as necessary  to resolve any exclusivity  concerns
 within existing NSR permits (See  first White Paper).

      Currently  the implementing regulations for section 112(1) at
 40  CFR part 63,  subpart  E  represent  an additional constraint on
 the streamlining of applicable  requirements in part  70 permits
 but only where  a State or  local agency has accepted  a delegation
 of  authority for a particular maximum achievable  control
 technology (MACT)  standard by virtue  of its commitment to replace
 the Federal  section 112  emissions  standard with the  State's own
 standard  or  program during the  part  70 permit  issuance process
 and using the procedures established in the Subpart E rule at
 S 63.94..   In S  63.94, EPA has  specified the criteria for
 approving such  alternative limits  and controls  to meet an
 otherwise  applicable section 112 requirement.   These criteria
must be satisfied  to ensure that,   after a State accepts
 delegation under 5  63.94,  any  change to the Federal rule results
 in permit requirements that, .among other things:

     o  Reflect applicability criteria no less  stringent than
     those in the  otherwise applicable Federal  standards or
     requirements;

     o  Require levels of emissions control for each affected


                                17

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      source and emissions point no less  stringent  than  those
      contained in the Federal standards  or requirements;

      o  Require compliance and enforcement measures  for each
      affected source and emissions point no less stringent  than
      those in the Federal standards or requirements;

      o  Express levels of control and compliance and enforcement
      measures in the same form and units of measure  as  the
      Federal standard or requirement for S 63.94 program
      substitutions;

      o  Assure compliance by each affected source  no later  than
      would be required by the Federal standard or  requirement.

      Thus, when a State or local agency, after receiving S  63.94
 delegation,  seeks to replace a Federal section 112 emissions
 standard with requirements arising from  its own air  toxics
 standard or program  (such as a toxics NSR  program) during the
 part  70  permit issuance process, streamlining must take place by
 meeting  both the criteria of S 63.94  and,  except where
 contradictory,  the criteria of this  guidance.  However, because
 most  States  are planning to take straight  delegation of Federal
 emissions standards  through subpart  E procedures that do not rely
 on the part  70 permit issuance process,  the  EPA believes that the
 subpart  E criteria for streamlining  applicable requirements will
 be necessary only in a minority of instances.  In the majority of
 cases, where a State takes delegation of a  Federal standard
 (e.g., through straight delegation),  the applicable section 112
 requirements could be streamlined  by  following only the criteria
 outlined in  section  A.2.,  above.   Where there are a large number
 of sources in the same category subject to a MACT standard for
which the State has  a regulation with equivalent requirements,
 EPA recommends  that  the State  explore  delegation options under
 S 63.93  to best utilize available  resources.

     It  should  be noted that the current subpart E rule may be
 subject  to change as a result  of pending litigation".   Currently,
 EPA intends  to  revise the  rule within  the parameters  of the
 Court's  decision to  allow  greater  flexibility for approving State
 air toxics standards and programs  and  to minimize or remove (as
 appropriate)  any constraint that subpart E might Impose on the
 streamlining of applicable requirements in part 70 permits.

     Finally, States are strongly encouraged to adopt regulatory
provisions allowing  permitting authorities to grant the permit
shield where they cannot now do so.  The permit shield is an
effective means  to clarify that for.applicable requirements
listed as .subsumed under the streamlined requirements, .compliance
with the  streamlined requirements is deemed to also be compliance
with the  subsumed requirements.  Such an understanding is
essential to support and defend the issuance of any permit which
provides  for the  streamlined treatment of multiple applicable


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 requirements.

      If a permit shield is not available,  a permittee can still
 be afforded significant enforcement protection by an explicit
 agency finding that in its judgment the streamlined permit term
 indeed provides for full compliance with all the permit limits
 that is subsumes.  In such a case/ it is imperative that the
 permit contain language that lists the applicable requirements
 being subsumed into the streamlined requirement and states that
 compliance with the streamlined requirement will be deemed
 compliance with the listed requirements.

 B.  Development Of Applications And Permits For Outdated SIP
 Requirements.

 1.  Issue.

      Can sources file part 70 permit applications  on the basis of
 locally adopted rules pending EPA SIP approval  rather than the
 current SIP requirements?  Can sources certify  their compliance
 status on the  same basis?  Under what circumstances  can
 permitting authorities issue and/or later revise part 70  permits
 based on such  locally adopted rules?

 2.   Guidance.

      a.   General.   In the first White Paper  (section  II.B.6.),
 EPA  described  a mechanism for simplifying permits where  a  source
 is subject to  both a  State adopted rule  that is pending SIP
 approval  and the approved SIP version of that rule.  Under that
 approach,  the  pending SIP requirements would be incorporated into
 the  State-only portion of the permit  and would become federally
 enforceable  upon EPA  approval of  the  SIP.  The EPA believes that
 in most instances,  the approach described in the first White
 Paper adequately addresses  the described problem.  In some areas
 (most notably  California),  however, a sizable backlog of pending
 SIP  revisions  exists,  and a more  far-reaching solution is needed.
 In today's guidance,  therefore, another approach that may be used
 by EPA and permitting  authorities  to  address this situation is
 described.

      Under this  new alternative, the permitting authority may
 allow that application  completeness initially be based on locally
 adopted rules  including those which would relax current (i.e.,
 federally-approved) SIP requirements, provided that (1) the local
 rule has been submitted to  EPA as a SIP revision, and (2) the
permitting authority reasonably believes that the local rule (not
the current SIP rule) will be the basis for the part 70 permit.

     Where the  permitting authority or the  source has
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 demonstrated to EPA's satisfaction17 that the local rule is more
 stringent and therefore assures compliance with the current SIP
 for all subject sources, a permit application relying on the
 local rule may be deemed to be complete and a permit containing
 the requirements of the local rule rather than the current SIP
 could be issued for part 70 purposes.   That is,  consistent with
 section 504(a) of the Act, the part 70  permit need only contain
 emissions limits and other terms and conditions  (i.e.,  the more
 stringent local rule) as needed to assure compliance with the
 applicable requirement (i.e.,  the current SIP regulation).

      An EPA finding that a submitted -rule assures  compliance with
 the approved SIP rule would be a preliminary indication of EPA's
 belief that a part 70 permit incorporating the terms of the
 submitted rule would also assure compliance with the approved
 SIP.   Such a finding would not equate to  rulemaking,  and so would
 not constitute a revision of the SIP.   Therefore,  a preliminary
 finding would not necessarily  ensure that the proposed  revision
 would ultimately be approved by EPA, nor  would it  protect a
 source from enforcement  of the approved SIP.18 Further, such a
 finding would not predetermine the outcome  of  the  part  70 permit
 proceeding.   Reviewers would have the ability to evaluate any
 proposed permit terms  or conditions  based on pending  SIP
 revisions  to  determine whether the permit assures  compliance with
 applicable requirements,  i.e.,  the approved SIP.  However,  EPA
 believes that a finding  of  this  nature  should provide the source
 and the permitting authority sufficient assurance to proceed with
 the issuance  of a  permit  that  reflects the terms of the submitted
 local  rule rather  than the  approved  SIP.  Note that a part  70
 permit can be  based  on a  local rule  even if the local rule  is
 subsequently  disapproved  by  EPA  for  SIP purposes (e.g., measure
 is  more stringent  than the current SIP but fails to meet  SIP
 requirements  for reasonably  available control technology  and/or
 to  make reasonable  further progress), provided:  (1) a permit
 based  on the  local rule would assure compliance with all
 applicable requirements  (including the approved SIP); and  (2) the
 permit  meets  all part 70 requirements.

     Where the  local rule submitted to EPA as a SIP revision
     "Where resources  allow  and the situation calls  for  it,  EPA
will go on record with  a  letter to the permitting authority with a
list of  rules  that it has  preliminarily determined  will assure
compliance with the corresponding SIP approved rule.

     "If  a part  70  permit  is  Issued based  upon  a  pending  SIP
revision  and  a  permit  shield  is  incorporated in  the  permit,
compliance with the permit would be deemed to be compliance with
all applicable requirements.   If EPA  or  the  permitting authority
later discovers that the permit terms do not assure compliance with
all applicable  requirements,  including  the  applicable SIP,  the
permit would have to be reopened and revised.

                               20

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represents  a  relaxation  of the current SIP requirement (e.g., the
local rule  would  replace an existing technology forcing rule that
has been determined  to be unachievable in practice), a part 70
source may  propose in its permit application to base its permit
on the local  rule in anticipation of EPA approval.  However, a
permit based  on the  local rule could not be issued prior to EPA
approval of the rule.  This is because a permit based on the
relaxed requirements of  the local rule could not assure
compliance  with the  more stringent applicable requirement (the
approved SIP)/ as required by section 504 of the Act.  Similarly,
a part 70 source  may be  subject to pending SIP revisions that may
tighten certain current  SIP obligations and relax others for
sources in  that source category.  Here again the permitting
authority could allow initial application completeness to be
determined  relying on the locally adopted rule, but the permit
could not be  issued  without the current SIP requirements unless a
source opted  to demonstrate that the submitted rule represents/
for that specific source, a more stringent requirement than the
current SIP.  In  such a  case, the part 70 permit could
subsequently  be issued for that source on the basis of the local
rule, since the permit terms would assure compliance with the
approved SIP.

     b.  Initial  actions by EPA and permitting authorities.   The
EPA is committed  to  working with States within available
resources to  assure  that the timetable for overall permit
issuance is not adversely affected by pending SIP revisions  that
are not straightforward  tightenings.  The extent of the problem,
however, will vary greatly and, in some cases,  may require a
specific plan of  action  between EPA and certain States to
expedite SIP processing  where the problem is substantial.

     In California, where this problem is believed to be most
extensive,  EPA, the  districts, and the California Air Resources
Board are in the  process of identifying rules in the SIP backlog
that are not straightforward tightenings or are relaxations  of
the currently approved SIP, and will target them for expeditious
processing.  These rules will be identified within a specified
timeframe,  generally within 1 year of the effective date of  a
district's  part 70 program.  The EPA's Region IX will enter  into
formal agreements with affected districts and will commit to take
action on this "targeted" portion of the SIP backlog before
comprehensive permit issuance for sources affected by the backlog
would be required, provided this is consistent with the
transition  plan19  (as it  may be revised).  Other EPA Regional
Offices will determine the need and resources available for  this
type of exercise  on a case-by-case basis.  Region IX will also
commit to process expeditiously any similar rules submitted  or
identified  after  the period of the formal agreement, although
     "Transition plan refers to the 3-year transition strategy for
initial part 70 permit issuance described in S 70.4(b)(ll).

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 such processing would not necessarily occur before permits must
 be issued to sources affected by these rules.

      Under Region IX's formal agreements,  permitting authorities
 in the districts need not issue the portion of the part 70 permit
 covering emissions units affected by the targeted backlog until
 the rule adoption or change identified in the  formal agreement
 has been acted on by EPA, consistent with the  flexibility allowed
 in the permit issuance transition plan in the  permitting
 authority's program.  This should in most cases allow permitting
 authorities to delay issuing permits to sources to the extent
 they are affected by the targeted SIP backlog  until EPA completes
 its review action on the pending SIP revisions.  Where a
 transition plan contains a permit Issuance schedule that would .
 not allow postponing permit issuance until EPA has acted on the
 proposed SIP revisions/ appropriate changes to the plan can still
 be made to defer permit issuance until EPA action on the targeted
 SIP backlog.  Such changes would be made following the same
 approach described for changing application forms In EPA's first
 White Paper.  Within these constraints,  a  permitting authority
 may allow for issuance of part 70 permits  to the facility in
 phases such that permits covering those  emissions units of the
 facility affected by the targeted SIP revision are Issued later.
 This result is also consistent with the  flexibility contained in
 S  70.2 (see definition of "Part 70 permit")  for the permitting
 authority to. issue multiple permits to one part 70  source if .it
 makes sense to do so.  Alternatively,  the  permitting authority
 could issue the permit in its  entirety based on the current SIP.

      The EPA agrees that delays in permit  Issuance  described
 above will not be cause for an EPA finding of  failure by the
 permitting authority to adequately administer  or  enforce its
 part 70 program.   Any Initial  permit issued under a phased
 approach (i.e.,  the first phase involves all emissions  units
 unaffected by the SIP backlog  targeted by  EPA), however,  does  not
 shield the source from the enforceability  of the  requirements
 excluded in the first phase permit and the obligation to obtain
 permit conditions covering the excluded emissions units  after  EPA
 has  acted on the relevant SIP  rule backlog.

      c.   Ongoing actions.   The preceding guidance should  address
 the  most significant problems  associated with the development  of
 part 70 permit applications  and the subsequent  Issuance of
 part 70 permits  that result  from the existence  of a SIP backlog.
 The  EPA recognizes,  however, that areas experiencing the most
 significant start-up problems  with respect to pending SIP rules  '
may  well require an ongoing  program to manage the potential  SIP
-backlog so as  to prevent  significant problems of this nature from
occurring in the future.   In some situations It may be
appropriate on a continuing  basis  for  EPA to determine
preliminarily whether a submitted rule can be listed as one which
would  assure compliance with the SIP rule it seeks to replace.
This would enable the permitting authority to adjust its


                                22

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priorities for requiring application updates and for
accomplishing permit issuance and revision.

     For post application submittal, a source that has filed a
complete application may opt to, or be required to, update its
current application as a result of changes or pending changes to
the SIP.  The likelihood of these changes occurring will vary
from area to area, and are most likely to affect sources
scheduled later in the transition period for initial permit
issuance.  For example:

     o  A local rule previously relied upon may be amended by the
     State or district.

     o  Where a local rule that was previously listed in the
     formal agreement for expeditious SIP processing (because the
     rule is not a straightforward strengthening) is disapproved
     by EPA and the source has relied on that rule in preparing
     its application, the applicant must file an application
     update that either demonstrates that compliance with the
     local rule would assure compliance with the current SIP or
     demonstrates direct compliance with the current SIP.

     o  The adoption and submission to EPA of a more stringent
     local rule after an applicant has filed its application may
     present a new and desired opportunity for streamlining.  If
     so, the applicant could opt to file an application update to
     shift the compliance focus of its current application to the
     newly adopted local rule, which is pending SIP approval,
     provided it meets the streamlining criteria described in
     section II.A. above.

     For post permit issuance, sources may also encounter changes
to rule situations after initial permit issuance that could lead
them to request a permit revision.  For example, sources may
propose a revision to an issued part 70 permit where a newly
adopted local rule would present a desirable streamlining
opportunity.  The significant permit revision process would be
required under the current part 70 to accomplish this change.
Note that EPA in its revisions to part 70 may authorize
permitting authorities to use a less extensive permit revision
process.

     To initiate the permit revision, the source must file an
application to revise the permit to contain the requirements of
local rule instead of the current SIP.  This application must
meet the previously defined and applicable streamlining criteria.

     In response, the permitting•authority may subsequently
revise the permit based on the local rule in lieu of the current
SIP where (1) the rule is listed by the EPA as one where
compliance with it would assure compliance with the relevant
portions of the current SIP, or (2)  the applicant has provided a


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 source specific demonstration  consistent with the streamlining
 criteria in section II.A.2.  that assures this result.  A permit
 shield or similar permit condition should be issued for purposes
 of certainty.   In the absence  of a shield or similar permit
 condition,  all  aspects of the  approved SIP remain enforceable,
 regardless  of the source's compliance status with respect to the
 permit.   The EPA encourages  permitting authorities currently
 without  provisions for incorporating permit shields to add them
 at their first  opportunity.

 3.  Process.

     a.   Initial Applications.  An applicant proposing to submit
 its part 70 permit application based on a local rule that has
 been submitted  for EPA approval rather than the current SIP would
 take one of two courses  of actions depending on the status 'of the
 local  rule  with EPA and/or the permitting authority:

     The first  course  of action would be appropriate for local
 rules  that  (1)  have been previously demonstrated to EPA's
 satisfaction to be at  least as stringent as the approved SIP rule
 so  as  to assure compliance with it for all subject sources/ (2)
 are otherwise authorized by the permitting authority based on its
 judgement that  such rules will likely be the basis for the
 part 70  permit  (e.g. EPA approval of the rule is Imminent), or
 (3) have been specifically identified in a formal agreement .
 between  the permitting authority and EPA for expeditious SIP
 processing, i.e.,  the  "targeted backlog."  Rules listed in a
 formal agreement will typically involve local rules pending SIP
 approval which  do  or could represent full or partial relaxations
 of the current  SIP.  Where they choose to use this approach,  the
permitting authority and EPA will maintain an up-to-date list of
 local rules which meet any of these criteria.

     In preparing  initial part 70 permit applications with
respect to such local rules the applicant:

     Step One - Will indicate in its  application that it has
     opted for this approach, list or cross-reference all
     requirements  from applicable local rules that are eligible
     for this approach, and refer to  the list maintained for  this
     purpose by the permitting authority.

     Step Two - Will identify in the  permit  application the
     current SIP requirements that the pending SIP revision would
     replace.

     Step Three - May choose  to certify compliance with the
     requirement(s) of the pending local  rule in lieu of the
     current SIP if there is  sufficient source  compliance data  on
     which to base such a certification.   (The  EPA is  proposing
     to revise its part 70 regulations  to provide that such a
     certification would  meet the  requirements  of S  70.5(c)(10).)


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      Step Four - May propose that a permit shield  would  be  in
      effect upon permit issuance.  For those  listed  local rules
      which are recognized by EPA as being able  to  assure
      compliance with the current SIP rule, the  applicant would
      indicate in the application that a permit  shield  (or
      alternatively, other similar language where authority  for a
      permit shield is not available) is being proposed to be
      incorporated into the permit to confirm  this  understanding.

      The second course of action would be appropriate  where the
 criteria specified above have not been met for  a particular rule
 and an applicant still wants to base its initial part  70
 application on such local rules pending SIP approval.  In this
 instance, the process would be essentially the  same  but  the
 source would have to demonstrate that compliance with  the local
 rule would assure compliance with the current SIP  (i.e., make an
 adequate demonstration consistent with the streamlining  criteria
 described in section II.A.2. above.)  and submit it with  the
 permit application in step one.  Again,  if a  part  70 permit
 application has already been submitted without  streamlining but
 the source agrees to subsequently pursue this option,  the
 permitting authority may work with the source to support
 streamlining requirements during the permit development  process.

      b.   Initial Permit Issuance Process.  After receiving  a
 complete application,  the permitting authority  must note where
 the applicant has proposed use of the approaches described  above
 in  section II.B.3.a.   The note would  be  placed  in  the  application
 summary,  the application,  or the revised application.  Copies of
 the application summary, the application,  or the revised
 application containing such proposals  must be submitted promptly
 to  EPA (unless EPA has agreed that  the demonstration is  of  a type
 not required for advance submittal  to  EPA).

      Where the rule is listed by EPA  as  one where compliance with
 it  would  assure compliance  with the relevant portions of the
 current SIP,  or the applicant has provided a source specific
 demonstration consistent with the streamlining outlined in
 section II.A.2.,  the permitting authority may proceed to issue
 the permit based on the local rule  in  lieu -of the current SIP.   A
 permit shield or similar permit condition which confirms this
 understanding should be issued for purposes of certainty.

      If an applicant chooses  to demonstrate that a  local rule
 assures compliance  with the  applicable SIP for all  affected
 emissions  units,  the permitting  authority will evaluate this
proposal and  any  supporting  documentation.  Upon completion of
 this evaluation and prior to  releasing a draft permit public
notice, the permitting authority is advised to communicate any
 concerns to the applicant and  provide reasonable opportunity for
the applicant  to  accept the  findings or propose a resolution of
the differences.  This  may cause some revisions  to  the
application as originally filed.


                                25

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      If the permitting authority or EPA are not satisfied that
 the local rule (as it applies to the applicant's facility)
 assures compliance with the applicable SIP rule, the applicant
 must revise its application to rely on the SIP rule.   All
 required application updates must be submitted on or before the
 reasonable deadline required by the permitting authority for the
 source to maintain its application shield.

      Consistent with the flexibility allowed in the  permit
 issuance transition plan (as it may be revised), the permitting
 authority may delay issuance of those portions of a  source's
 permit that are covered by a rule identified in a Region IX type
 formal agreement, which targets certain SIP rules for expeditious
 processing, until EPA has acted on the relevant rule(s).
 Alternatively, comprehensive permits may be issued to such a
 source prior to the time that EPA has acted on the rule  provided
 that they are based on the current SIP (unless the source has
 provided an adequate streamlining demonstration).

 4.   Enforcement.

      All terms and conditions  of  the part 70 permit are
 enforceable by EPA and by citizens.   In addition,  a source
 violating the emissions limitation in the part  70  permit  is  also
 subject to enforcement action  for violation of  the current SIP
 emissions limits  if a violation of this limit can  be documented.

      Upon issuance of a part 70 permit based on the local  rule,
 the  permit terms  and conditions implementing the local rule would
 become  federally  enforceable.  A  source would not be subject to
 an EPA  enforcement action  for any failure to meet monitoring,
 recordkeeping,  and reporting requirements that are -required under
 the  currently approved SIP, if such an understanding has. been
 specified in  the  permit.  These requirements would no longer be
 independently enforceable, provided the source attempts in good
 faith to  implement the monitoring, recordkeeping, and reporting
 approach  required under the local rule.

     If subsequently  the permitting authority or EPA determines
 that the  permit does  not assure compliance-with applicable
 requirements,  the permit must be reopened and revised.

 5.  Discussion.

     Sources  in California districts currently are subject to
 several locally adopted rules which are pending before EPA as
 proposed  SIP revisions.  The majority of these local rules have
 been determined by the districts to be more stringent than the
 SIP rules that they seek to replace, although some of these rules
would relax the current SIP requirements for certain affected
 sources.  In some  cases, technology-forcing SIP rules have been
 found to be infeasible to achieve and, instead of seeking to
 enforce them, districts have adopted achievable local rules.


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 Until the local rules are approved into the SIP,  sources are
 subject to both the local rule and the federally-approved version
 of the rule.

      The resulting "outdated SIP" presents special problems to
 sources which must file a part 70 permit application.   In
 particular, questions arise as to whether sources must complete
 their applications and certify compliance based on SIP rules
 which have been superseded by more stringent local rules or by
 rules that have been relaxed where,  for example/  the permitting
 authority has found the current SIP rules to be unachievable.
 Those problems, while most apparent in their effect on the start-
 up of a part 70 program, are also ongoing in nature and may
 create a need to update initially complete permit applications.
 and to revise issued permits.  The EPA believes that these
 problems with outdated SIP rules are most extensive in California
 but are not unique to that State.

      The EPA strongly believes that  implementation of  title V  to
 the extent possible should complement,  not complicate,  the
 implementation of other titles,  including title I,  the purpose of
 which is to assure adoption of programs  that will  attain and
 maintain the national ambient air quality standards (NAAQS).20
 Accordingly,  the Agency is providing this  guidance which will
 allow sources and permitting authorities  to  rely  on more
 stringent local rules for permit issuance.   The overall  strategy
 for sensitizing the SIP revision process  to  part  70 concerns
 presented in this guidance will  allow sources to  focus more on
 current air quality requirements in  all  aspects of part  70 permit
 application development and update,  permit issuance, and permit
 revision.

      The legal  basis  for recognizing a local rule pending SIP
 approval in lieu of the current, but less stringent, SIP
 requirement or  for streamlining  multiple applicable requirements
 is  identical  to the basis  for adopting a streamlined emissions
 limit  to replace multiple  applicable requirements (see discussion
 in  section  II.A,5.).  The  opportunities for shifting to the more
 stringent local  rule  are correspondingly affected by the
 limitations previously  described for. the streamlining of
 applicable  requirements.

 C.  Treatment Of  Insignificant Emissions Units.

 1.  Issue.
     "This guidance is designed primarily to alleviate situations
where the SIP backlog is both large and longstanding.  It is not to
be  used  as  a  means  of  anticipating the  outcome  of  pending
attainment status redesignations.
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      How must sources address insignificant  emissions  units
 (lEU's) subject to at least one applicable requirement?21
 (Insignificant emissions units are in most cases not directly
 regulated,  and therefore could be left off the permit  entirely,
 were it not for the presence of certain generic or  facility-wide
 requirements that apply to all emissions units.)  Must the
 application and the subsequent permit address each  IEU
 individually and require periodic monitoring where  it  is not
 otherwise provided by a generically applicable requirement?   On
 what basis  can the initial and future compliance certifications
 be made for lEU's with generally applicable  requirements?

 2.   Guidance.

      The EPA interprets part 70 to allow considerable  discretion
 to the  permitting authority in tailoring the amount and quality
 of information required in permit applications and permits as
 they relate to lEU's.   In general,  permit applications must
 contain sufficient information to support the drafting of the
 part 70 permit (including certain information for lEU's subject
 to only generally applicable requirements) and to determine
 compliance  status with all applicable  requirements.  The EPA,
 however,  interprets part 70 to allow permitting authorities
 considerable discretion as to the format and content of permits,
 provided that  compliance with all applicable requirements,
 including those  for lEU's,  is assured.  The Agency believes that
 the  clarifications contained herein afford permitting  authorities
 sufficient  flexibility to treat lEU's  in a manner commensurate
 with the  environmental benefits that may be gained from their
 inclusion in the  permit.

      a.'  Permit  Applications  - Information.   With regard to
 part 70 requirements to  describe  and list lEU's in applications
 and  permits, the  permitting authority can use the generic
 grouping  approach for  emissions units and activities as discussed
 in the  first White Paper.   In  addition, the requirement to
 identify  all applicable  requirements, as it related to lEU's
 subject to generally applicable requirements, can normally be
 addressed by standard  or generic  permit conditions with minimal
 or no reference to any specific emissions unit or activity.   The
 EPA  has reviewed  and acquiesced in the issuance of permits
wherein generally applicable requirements are incorporated
through the use of  tables describing a tiered compliance regime
     21An  emissions  unit  can  be  an  IEU  for  one  applicable
requirement and  not for  another.   However, such  a unit may be
eligible  for  treatment  as  an  IEU only  with  respect to  those
pollutants  not  emitted   in significant   amounts.     The   term
"significant" as used  in  this policy  statement  does  not have the.
meaning as used  in S 52.21 (e.g.,  15  tpy PM-10, 40  tpy VOC) but
rather means that the emissions unit does not qualify for treatment
in the application as an insignificant emissions unit.

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 for these requirements as they affect different sizes of
 emissions units, including a distinct and more streamlined
 compliance regime for lEU's.  Different generic permit tables may
 be necessary to cover the situation for a particular type of IEU
 which is governed by different applicable requirements.
 Similarly, the first White Paper provides that no emissions
 estimates need be provided for even regulated emissions streams
 where it would serve no useful purpose to do so.   This should be
 the case for lEU's where the amount of emissions  from a unit is
 not relevant to determining applicability of, or  compliance with,
 the requirement.  Except where the contributions  of lEU's would
 need to be more precisely known to resolve issues of
 applicability or major source status would the permitting
 authority need to request emissions estimates for part 70
 purposes.

      b.  Permit Applications - Initial Compliance Certifications.
 Section 70.5(c)(9)  requires complete part 70 applications to
 contain a certification of compliance with all applicable
 requirements by a responsible official and a statement of the
 methods used for determining compliance.   This certification must
 be based on a "reasonable inquiry" by the responsible official.
 The EPA believes that, for the generally  applicable or facility-
 wide requirements applying to an IEU,  reasonable  inquiry for
 initial certifications need only be based on available
 information,  which  would include any information  required to be
 generated by the applicable requirement.   Regarding the  latter,
 and as  is true for  any applicable requirement,  the  initial
 certification can be based on only the latest  cycle of required
 information (e.g.,  a source could generally  rely  on a
 demonstration of compliance resulting  from the most recent
 required monitoring,  notwithstanding the  existence  of prior
 monitoring indicating non-compliance at a  previous  point  in
 time).   Where an applicable requirement (generally  applicable or
 otherwise)  does  not  require monitoring, the  S 70.5(c)(9)
 requirement to certify compliance does not itself require  that
 monitoring be done to support a  certification.  Similarly, there
 is  no need to perform an  emissions  test to support  this
 compliance certification  if none  is  required by the  applicable
 requirement itself.   The  EPA interprets S  70.5(c)(9) to allow for
 a certification  of compliance where  there is no required
 monitoring and,  despite a "reasonable  inquiry" to uncover  other
 existing information,  the responsible official has no information
 to  the  contrary.

     c.  Permit Content -  Applicable Requirements.  With regard
 to part  70  obligations to  include all applicable requirements in
 the permit, the permitting authority can also use  the generic
 grouping approach for emissions units and activities as discussed
 in the  first White Paper.  That is, generally applicable
requirements can normally be adequately addressed  in the part 70
permit by standard permit conditions with minimal  or no reference
to any specific emissions unit or activity, provided that the


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 scope of the requirement and the manner of its  enforcement are
 clear.  As noted above, different generic permit provisions may
 be necessary to cover the situation for which different types of
 lEU's are governed by different applicable requirements.

      d.  Permit Content - Monitoring/  Recordkeepinq,  and
 Reporting.  Section 70.6(a)(3)(i) requires all  applicable
 requirements for monitoring and analysis procedures or test
 methods to be contained in part 70 permits.   In addition,  where
 the applicable requirement does not require periodic  testing or
 monitoring (which may consist of recordkeeping  designed to serve
 as monitoring), the permitting  authority must prescribe periodic
 monitoring sufficient to yield  reliable data  from the relevant
 time period that are representative of the source's compliance
 with the permit.  Many of the generically applicable  requirements
 for lEU's have a related test method,  but relatively  few have a
 specific regimen of required periodic  testing or monitoring.

      The EPA believes that the  permitting authority In general
 has broad discretion in determining the nature  of any required
 periodic monitoring.   The need  for this  discretion is
 particularly evident in the case of generally applicable
 requirements,  which tend to cover lEU's  as well  as significant
 emissions units.   The requirement to Include  in  a permit testing,
 monitoring,  recordkeeping,  reporting,  and compliance
 certification sufficient to assure compliance does not require
 the permit to impose the same level  of rigor with respect to  all
 emissions units and applicable  requirement situations.  It does
 not require  extensive testing or monitoring to assure compliance
 with the applicable requirements  for emissions units that do  not
 have significant  potential  to violate emissions  limitations or
 other requirements  under normal  operating conditions.   In
 particular,  where the establishment of a regular program of
 monitoring would  not  significantly enhance the ability of the
 permit to assure  compliance with  the applicable requirement,  the
 permitting authority  can provide  that the status quo  (i.e., no
 monitoring)  will  meet S  70.6(a)(3)(1).   For lEU's subject to  a
 generally applicable  requirement  for which the permitting
 authority believes  monitoring is needed, a streamlined approach
 to  periodic  monitoring,  such as an inspection program to assure
 the proper operation  and maintenance of emissions activities
 (e.g., valves and  flanges), should presumptively be appropriate.

     The  EPA's  policy on  IEU monitoring needs is based on its
 belief that  lEU's typically are associated with  inconsequential
 environmental impacts  and present little potential for violations
 of  generically  applicable requirements, and so may be  good
 candidates for  a very streamlined approach to periodic
monitoring.  As EPA noted in the first  White Paper,  generally
applicable requirements typically reside in the  SIP.   Permitting
authorities therefore not only have the best sense of  which
requirements qualify as generally applicable,  but also where it
 is appropriate to conclude that  periodic monitoring is not


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 necessary for lEU's subject to these  requirements.  Where the
 source ascertains  that the permitting authority will not require
 periodic  monitoring for lEU's,  it  can of  course omit a periodic
 monitoring proposal from the application.

      e.   Permit  Content - Compliance  Certifications.  Section
 70.6(c)(5) requires in part that each permitted source submit no
 less  frequently  than annually a certification of its compliance
 status with  all  the terms and conditions  of the permit.  This
 certification will be based on available  information, including
 monitoring and/or  other compliance terms  required in the permit.
 Where a particular emissions unit  presents little or no potential
 for violation of a certain applicable requirement, the
 "reasonable  inquiry" required by title V  can be abbreviated.
 Since it  can be  determined in the  abstract that violation of the
 requirement  by these emissions  units  is highly improbable, it is
 reasonable in that instance to  limit  the  search for information
 to what is readily available.   As  noted above, EPA believes that
 an IEU subject to  a generally applicable  requirement typically
 presents  little  or no potential for violation of those
 requirements.  It  follows that  where,  for instance, a permit does
 not require  monitoring for lEU's subject  to a generally
 applicable requirement,  and there  were no observed, documented,
 or known  instances of non-compliance,  an  annual certification of
 compliance is  presumptively appropriate.  Similarly, where
 monitoring is  required,  an annual  certification of compliance is
 also  appropriate when no violations are monitored and there were
 no observed,  documented,  or known  instances of non-compliance.

 3.  Discussion.

      Many of  the concerns  expressed to EPA regarding the
 treatment of  lEU's  in the  application  and permit arise because
 lEU's  are in most  cases  not directly regulated, and therefore
 could  be  left  off  the permit entirely, were it not for the
 presence  of certain generic requirements that apply to all
 emissions  units.   Though  the focus of  concern is the
 applicability  of the  generic requirements to lEU's, response to
 these  concerns derive primarily from the flexibility that exists
 in part 70 for dealing with generically applicable requirements.
 In implementing  this  flexibility,  it may be appropriate for the
 permitting authority  to  further distinguish between units that
 have been designated  as  insignificant and those that have not.
 This is so because  the relative size of a unit can be an
 important  factor in deciding how to fashion permit terms even for
 a generically applicable requirement,  and State-established lEU's
 normally  define  the smallest emissions points.   However,  EPA
 notes  that, as a matter of  part 70 interpretation,  whether a unit
 has been  designated as insignificant is not necessarily critical
 to its treatment in the part 70 permit.

     Concerns have  been expressed that addressing in part 70
permits the relatively trivial portion of emissions attributable


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 to lEU's will consume a disproportionate share of  the  total
 resources available to issue part 70 permits.   That  is,  according
 to their understanding of part 70, applicants  and  permitting
 authorities will expend greater resources than warranted to
 determine the specific applicability of requirements to  lEU's,
 how compliance with them will be assured, and  the  basis  on which
 the certification of compliance status of the  source with respect
 to these lEU's would be made.

      The EPA believes that the policy described for  addressing
 generically applicable requirements in applications  and  permits
 as they apply to lEU's allows permitting authorities sufficient
 flexibility to streamline the required administrative  effort
 commensurate to the environmental significance of  the  varying
 types of IEU situations.   This should prevent  the  potentially
 high but unintended level of costs identified  by certain sources
 and permitting authorities from occurring in the future  with
 respect to lEU's.

 D.   Use Of Major Source And Applicable Requirement Stipulation.

 1.   Issue.

      When an applicant stipulates that it is a major source  and
 subject to specific applicable requirements, how much, if any,
 additional  information related to applicability is necessary .in
 the part 70 permit  application?

 2.   Guidance.

      If an  applicant stipulates that  it is a major source" and
 subject to  specific applicable requirements, it need not provide
 additional  information in its  application to demonstrate
 applicability with  respect to  those requirements, provided that
 (1)  the permitting  authority has  had previous review experience
 with a  particular source  (e.g.,  issued it a permit),  or  (2)
 otherwise has  an adequate level of familiarity with, the source's
 operation (e.g., current  emissions inventory information).  This
 does  not affect  the requirement to provide information for other
 purposes under part 70, such as to support -a compliance
 certification  or a  request for a  permit shield or to describe the
 emissions activities of its  site  (see  first White Paper).

      Accordingly, permitting authorities may allow the applicant'
 to  stipulate that:

      o   Its facility is a major source and subject to part 70
     permitting, without  providing any additional information for
      the applicability determination;
     "if an applicant stipulates  it is a major source, it must list
all pollutants for which it is major.

                               32

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      o  It is subject to specific applicable'requirements,  to be
      included in its part 70 permit, without providing additional
      information to establish applicability for stipulated
      requirements; or

      o  It is subject to only portions of an applicable
      requirement and state that it is not subject to other
      portions.  Such a stipulation must explicitly state which
      portion of the rule applies and which does not and an
      explanation must be provided for this conclusion.

      Stipulation by a source to major source status or specific
 applicable requirements in a part 70 application does not
 preclude the permitting authority from requesting additional
 information from the applicant for establishing the applicability
 of non-stipulated requirements or for verifying a stipulation
 that certain requirements are not applicable.

 3.  Discussion.

      In general, part 70 requires that applications contain
 information to the extent needed to determine major source
 status, to verify the applicability of part 70  or applicable
 requirements, and to compute a permit fee (as necessary).
 Section 70.5(c)  requires the application to describe emissions of
 all regulated air pollutants for each emissions unit.

      In the first White Paper,  EPA indicated a  substantial  degree
 of discretion for permitting authorities in this  area.   It
 indicates  that States may adopt different approaches  to  meet  the
 minimum program requirements established by the part  70
 regulations depending on local  needs.   In many  instances, a
 qualitative description of emissions  will satisfy this standard.
 However, the applicant may need to provide more detailed
 information for  purposes other  than determining applicability and
 to foster  efficiency in the  permitting program.

      For the purpose of determining the  applicability of part 70
 or other specific requirements,  the information required in an
 application should  be streamlined  for  the mutual benefit of the
 applicant  and the permitting authority.   An  applicant that
 stipulates it is a  major source subject  to part 70 and to other
 applicable requirements  should  not  be  required  to provide any
 additional information to verify those  facts in its part 70
 application.   However,  the applicant must  provide sufficient
 information to allow the permitting authority to impose the
 applicable requirement.   In  addition, the  resulting application
 streamlining  would  not relieve  the  applicant from submitting,  or
'the permitting authority from reviewing, emissions or other data
 for part 70 purposes  other than  determining applicability.

      In the case where there  is  no  dispute that a stationary
 source is  subject to part  70, and the applicant stipulates that


                                33

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 the source is a part 70 source in the application,  no further
 information would be required for applicability determination.
 An example would be a source which is currently operating under a
 prevention of significant deterioration permit  because it is
 major for PM-10.  Both the source and the permitting authority
 agree that the source is subject to the State's part 70 program.

      A source may also streamline the part 70 permit process  by
 stipulating that specific applicable requirements apply.   This
 does not relieve the source of its obligation to Identify all
 applicable requirements or preclude the permitting  authority  from
 requesting additional information, Including information
 pertaining to the applicability of requirements not covered in
 the stipulation.  For example,  a stationary source  may stipulate
 it is subject to a SIP rule.   However,  the permitting authority
 may suspect that the source is  also subject to  a New Source
 Performance Standard (NSPS),  but may need more  information for
 confirmation.   In this case,  the permitting authority would
 request additional information  related  to the applicability of
 the NSPS.

      Similarly,  an applicant  may stipulate that it  is  subject to
 only portions  of an applicable  requirement and  state that  it  is
 not subject to other portions.   In such case, the permitting
 authority  may  request the  applicant to  provide  additional
 information to demonstrate that it is not  subject to requirements
 in question.   However,  if  a source requests a permit shield,
 additional information to  demonstrate the  non-applicability of
 these  requirements  must be submitted.

 £.   Referencing  Of  Existing Information In Part 70 Permit
 Applications And Permits.

 1.   Issue.

     Can an  applicant  in its permit application, and can the
 permit  itself, reference existing  information that .is available
 at  the  permitting authority?  Also, can the permit application
 and the permit reference applicable requirements through citation
 rather  than  by a  complete  reprinting of the.requirements
 themselves  in the part  70  permit application or permit?

 2.   Guidance.

     a.  General.   Information that would be cited or cross
 referenced in the permit application and Incorporated by
 reference  into the  issued permit must first be currently
applicable and available to the permitting -authority and
                                34

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 public23.  The information need not be restated in-the part 70
 application.  Standardized citation formats  should  be established
 by the permitting authority to facilitate appropriate use of this
 mechanism.

      Referenced documents must also be specifically identified.
 Descriptive information such as the title or number of the
 document and the date of the document must be included so that
 there is no ambiguity as to which version of which  document is
 being referenced.  Citations/ cross references,  and
 incorporations by reference must be detailed enough that  the
 manner in which any referenced material applies  to  a facility is
 clear and is not reasonably subject to misinterpretation.   Where
 only a portion of the referenced document applies,  applications
 and permits must specify the relevant section of the document.
 Any information cited, cross referenced,  or  incorporated  by
 reference must be accompanied by a description or identification
 of the current activities,  requirements,  or  equipment for which
 the information is referenced.

      b.   Permit Applications.  The applicant and the permitting
 authority should work together to determine  the  extent  to  which
 part 70  permit applications may cross reference  agency-issued
 rules,  regulations, permits, and published protocols, and
 existing information generated by the applicant.  To facilitate
 referencing existing information,  permitting authorities should
 identify the general types  of information available  for this
 purpose.   To the extent that such information exists  and is
 readily  available to the public,  the  following types  of
 information may be cited or cross  referenced (as  allowed by the
 permitting authority)24:

      o   Rules,  regulations,  and  published protocols.

      o   Criteria pollutant  and HAP  emission  inventories and
      supporting calculations.

      o   Emission monitoring  reports,  compliance reports, and
      source tests.

      o  Annual  emissions statements.
     "Referenced documents  must  be  made  available  (1)  as part of
the  public docket  on the  permit action or  (2)  as  information
available  in  publicly accessible files located  at  the permitting
authority,  unless they  are published or  are  readily  available
(e.g., regulations printed  in  the Code of Federal  Regulations or
its State equivalent).

     "Use  of  cross-referencing   does  not  shift  any  burden  of
reproducing or  otherwise acquiring  information  to  the permitting
authority.

                               35

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      o  Process and abatement equipment lists and descriptions.

      o  Current operating and preconstruction permit terms.

      o  Permit application materials previously submitted.

     . o  other materials with  the approval of the permitting
      authority.

      Applicants are obligated to correct and supplement
 inaccurate  or incomplete permitting authority records relied upon
 for  the  purposes of part 70 permit applications.  The responsible
 official must certify,  consistent with S 70.5(d), to the truth,
 accuracy, and completeness of all information referenced.

      c.   Permits.   Incorporation by reference in permits may be
 appropriate and useful  under  several circumstances.  Appropriate
 use  of incorporation by reference in permits includes referencing
 of test  method procedures,  inspection and maintenance plans, and
 calculation methods for determining compliance.  One of the key
 objectives  Congress hoped to  achieve in creating title V,
 however,  was the issuance of  comprehensive permits that clarify
 how  sources must comply with  applicable requirements.  Permitting
 authorities should  therefore  balance the streamlining benefits
 achieved through use of incorporation by reference with the need
 to issue comprehensive,  unambiguous permits useful to all
 affected parties, including those engaged in field inspections.

      Permitting authorities may, after listing all applicable
 emissions limits for all  applicable emissions units in the
 part  70  permit,  provide for referencing the details of those
 limits,  rather than reprinting them in permits to the extent that
 (1) applicability issues  and  compliance obligations are clear,
 and  (2)  the permit  includes any additional terms and conditions
 sufficient  to  assure compliance with all applicable
 requirements25.

      Where  the  cited applicable requirement provides for
 different and  independent  compliance options (e.g.,  boilers
 subject  to  an  NSPS  promulgated under, sectipn 111 may comply by
 use of low  sulfur fuel  or  through add-on of a control device),
 the permitting  authority  generally should require that the
 part  70  permit  contain  (or  incorporate by reference) the specific
 option(s) selected  by the  source.  Alternatively,  the permit
 could incorporate by reference the entire applicable requirement
     25In the case of a merged permit program, i.e., where a State
has merged  its NSR and operating permits programs, previous NSR
permits  expire.   This leaves  the part 70  permit as the  sole
repository  of  the relevant  prior terms and conditions  of  the NSR
permit.  Under  these   circumstances,  it  is   not possible  to
incorporate by reference the expired NSR permits.

                                36

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 provided that (1)  such reference Is  unambiguous  in its
 applicability and requirements,  (2)  the permit contains
 obligations to certify compliance and report  compliance
 monitoring data reflecting the chosen control approach,  and (3)
 the permitting authority determines  that the  relevant purposes of
 title V would be met through such referencing.   The alternative
 approach would not be allowable  if changing from one compliance
 option to another would trigger  the  need for  a prior review by
 the permitting authority or EPA  (e.g.  NSR), unless prior approval
 is  incorporated into the part 70 permit (i.e., advance NSR).

      The EPA does  not recommend  that permitting  authorities
 incorporate into part 70 permits certain other types of
 information such as the part 70  permit application (see  first
 White Paper).

 3.   Discussion.

      Title V and part 70 do not  define when citation or  cross-
 referencing in permit applications would be appropriate,  although
 it  obviously would not be allowed where such  citations or cross-
 references would not support subsequent development  of the
 part 70 permit.  The EPA's first White Paper  states  that  a
 permitting authority may streamline  part 70 applications  by
 allowing the  applicant to cross-reference a variety  of documents
 including permits  and Federal, State,  and local rules.  This
 guidance further provides that where an emissions  estimate  is
 needed for part  70 purposes  but  is otherwise  available (e.g.,
 recent submittal of emissions inventory) the  permitting authority
 can allow the  source to cross-reference  this  information  for
 part 70.purposes.

      Permitting  authorities'  files and  databases often include
 information submitted by the  applicant which  can also be required
 by  part 70.  Development and  review of part 70 permit
 applications could be streamlined if information already held by
 the  permitting authority and the public  is referenced or cited in
 part 70  permit applications rather than  restated in  its entirety.
 Similarly,  specific citations to regulations that are unambiguous
 in their applicability and requirements as.they apply to a
 particular source  will  reduce the burden associated with
 application development.

      Incorporation  by reference can be similarly effective in
 streamlining the content  of part 70 permits.   The potential
 benefits  of permit  development based on an incorporation by
 reference approach  include reduced cost and administrative
complexity, ^nd continued compliance flexibility as enforceably
 allowed by  the underlying applicable requirements.

     Expectations  for referencing with respect to permit  content
are somewhat better defined than for permit applications.
Section 50.4 (a) states that each permit "shall  include enforceable


                               37

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 emissions limitations and standards"  and  "such other  conditions
 as are necessary to assure compliance with the applicable
 requirements."  In addition,  section  504(c) requires  each permit
 to "set forth inspection, entry,  monitoring, compliance
 certification, and reporting  requirements to assure compliance
 with the permit terms and conditions."  Analogous provisions  are
 contained in SS 70.6(a)(l)  and  (3).   The EPA interprets these
 provisions to place limits  on the type of information that may be
 referenced in permits.  Although  this material may be
 incorporated into the permit  by reference, that may only be done
 to the extent that its manner of  application is clear.

      Accordingly,  after all applicable emissions limits are
 placed in the part 70 permit  and  attached to the emissions unit
 to which they apply,  the  permitting authority may allow
 referencing where  it  is specific  enough to define how the
 applicable requirement applies  and where using this approach
 assures  compliance with all applicable requirements.  This
 approach is a desirable option where  the referenced material  is
 unambiguous in how it applies to  the permitted facility, and  it
 provides for enforceability from  a practical standpoint.  On  the
 other  hand,  it is  generally not acceptable to use a combination
 of  referencing certain provisions of an applicable requirement
 while  paraphrasing other  provisions of that same applicable
 requirement.   Such a  practice, particularly if coupled with a
 permit shield,  could  create dual requirements and potential .
 confusion.

     Even where the referenced requirement allows for compliance
 options, the permitting authority may issue the permit with
 incorporation  of the applicable requirement provided that the
 compliance  options of the source are enforceably defined under
 available control  options, appropriate records  are kept and
 reports made, and  any required revisions to update the permit
with respect to specific performance levels are made.   This
 treatment would be analogous to the flexibility provided to
 sources through the use of alternative scenarios.
                               38

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                           Attachment A

               Approval of Alternative Test Methods

      The part 63 general provisions/  as well as  other  EPA air
 regulations implementing sections 111 and  112 of the Act,  allow
 only EPA-approved test methods to implement emissions  standards
 that are established by States to meet Federal requirements.
 Accordingly/  streamlining cannot result in any requirement
 relying on a State-only test method unless and until EPA/  or  the __
 permitting authority acting as EPA's  delegated agency, approves
 it as an appropriate method for purposes of complying  with that
 streamlined standard.  Currently/ all States may be delegated
 authority to make decisions regarding minor revisions  to  EPA
 approved test methods (i.e./ minor changes are those that  have
 isolated consequences/ affect a single source/ and do  not  affect
 the stringency of the emissions limitation or standard).   The EPA
 is exploring options for defining where delegation to  States  is
 appropriate for reviewing major revisions  or new test methods/
 and for expediting the approval process where the Agency retains
 final sign-off authority.   The EPA recognizes that its approval
 must generally occur in a timeframe consistent with the time
 constraints of the part 70 permit issuance process.  Until
 further guidance on this  subject is issued/ States must obtain
 EPA approval  for all State-only test  methods which represent
 major changes or alternatives to EPA-approved test methods prior
 to or within  the 45-day EPA review period  of the proposed permit
 seeking to streamline requirements.

      With respect to SIP  requirements/ the ability for a
 permitting authority to authorize use of a different test method
 depends on the governing  language contained in the SIP.  For
 example,  some SIP's  expressly connect a test method with a
 particular emissions limit but allow  for the use of an equally
 stringent method.  Other  SIP's contain a more exclusive linkage
 between an emissions limit and its  required test method (i.e./
 limit  A as measured  by test  method  B).  The SIP-approved test
 method can be changed only through  a SIP revision unless the SIP
 contains  provisions  for establishing alternative test methods.
 Attachment B  contains  example  SIP  language, which provides a
 mechanism that can establish an  alternative applicable
 requirement in such  cases without the need for a source-specific
 SIP revision.

     Permitting  authorities  may  implement  streamlining which
 involves  alternative or new  test methods within the flexibility
 granted by the SIP and any delegation of authority granted by EPA
 (where  section 111/112 standards are involved).   Permit
applications  containing a request for a  .streamlined requirement
based  on  an alternative or new test method must/  to be complete/
demonstrate that the alternative or new  test method would
determine  compliance at the  same or higher stringency as  the
otherwise  applicable method.  The EPA  expects  to  receive

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expeditiously (I.e., well in advance of any draft permit
issuance) those portions of an application dealing with a
proposal for streamlining, Including any demonstration of test
method adequacy.  Any required EPA approval of an alternative or
new test method need not be obtained as a precondition for filing
a complete application, but it must be secured before the final
part 70 permit can be issued.  As mentioned previously, EPA
Intends to structure its approval process to comport reasonably
with the timelines for part 70 permit issuance.

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                           Attachment B

                  SIP Provisions For Establishing
                     Alternative Requirements
 I.   Overview.
      States may revise their SIP's  to provide  for establishing
 equally stringent alternatives  to specific requirements set  forth
 in the SIP without the need for additional source-specific SIP
 revisions.  To allow alternatives to the otherwise-applicable SIP
 requirements (i.e., emissions limitations/ test methods,
 monitoring, and recordkeeping)  the  State would include language
 in SIP's to provide substantive criteria governing the State's
 exercise of the alternative requirement authority.

 II.   Example Language For Part  70 Sources To Establish
 Alternative SIP Requirements.

      The following is an example of enabling language that could
 be used to provide flexibility  in the SIP for  allowing
 alternative requirements to be  established for part 70 sources.

           In lieu of the requirements imposed  pursuant to
      (reference specific applicable sections(s) or range of
      sections to be covered), a facility owner may comply with
      alternative requirements,  provided the requirements are
      established pursuant to  the part 70 permit issuance,
      renewal,  or significant  permit revision process and are
      consistent with the streamlining procedures and guidelines
      set forth in section II.A.  of  White Paper Number 2.

           For sources  subject to an approved part 70 program, an
      alternative requirement  is  approved for the source by EPA if
      it  is incorporated  in an issued part 70 permit to which EPA
      has  not  objected.   Where the public comment period precedes
      the  EPA  review period, any  public comments concerning the
      alternative shall be transmitted to EPA with the proposed
      permit.   If the EPA and  public comment periods run
      concurrently,  public comments  shall be- transmitted to EPA no
      later than 5 working days after the end of the public
      comment  period.  The Director's [permitting authority's]
      determination  of approval is not binding on EPA.

           Noncompliance  with  any provision established by this
      rule  constitutes a  violation of this rule.

III.  Example Language For Non-Part 70 Sources To Establish
Alternative SIP Requirements.

 [NOTE:  This  section is  a draft that EPA expects to finalize
after appropriate revisions in the near future.]

    For sources  not  subject to an approved part 70 program,  the
following  is an  example  of enabling language that States may use

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 to revise/submit SIP rules which would provide flexibility in  the
 SIP for allowing alternative requirements to be established.

 A.  Procedures.

      1.  General.   In lieu of the requirements Imposed pursuant
      to [reference applicable sections] of this plan, a source
      owner may comply with an alternative requirement, provided
      that the Director approves  it consistent with the procedures
      of this paragraph and the criteria of paragraph B.

      2.  State Review Procedure.   The Director may establish an
      alternative requirement in  [a review process defined  by the
      State], provided that the requirements of this paragraph  are
      met for EPA and public review and for notification and
      access are met.  The Director's determination of approval is
      not binding on EPA.

      3.  Public Review.   The Director shall subject any proposed
      alternative to adequate public review but may vary the
      procedures for, and  the timing of, public review in light of
      the environmental significance of the action.  For the
      following types of changes  [add list of de minimis actions
      subject to EPA review],  no public review shall be necessary
      for the approval of  the alternative.

      4.   EPA Review.   The Director shall submit any proposed
      alternative to the Administrator through the appropriate
      Regional Office,  except  for the following types of changes
      [add list of  de minimis  actions subject to EPA review] no
      EPA review shall be  necessary for the approval of the
      alternative.   Until  the  specific alternative SIP requirement
      has completed EPA review, the otherwise applicable SIP
      provisions will  continue to apply.

      5.   Periodic  Notification And Public  Access.   For all
      actions  taken by the State to establish an alternative
     requirement,  the Director shall provide in a general manner
      for periodic  notification to the public on at least a
      quarterly basis  and  for public access.to the records
      regarding established alternatives and relevant supporting
      documentation.

      6.   Enforcement.  Noncompliance with  any alternative
      established by this  provision constitutes a violation of
      this  rule.  The  EPA  and the public may challenge such an
      alternative limit on the basis that it does not meet the
     criteria contained in the SIP for establishing such an
     alternative.   In addition, EPA and the public can take
     enforcement action against a source that fails to comply
     with  an  applicable alternative requirement.

B.  General Criteria  for  Evaluating Alternatives.

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      1.  Applicability.  The unit(s) to which the requirements
      apply must  be  specified in the underlying SIP and in the
      permit/alternative.  If percentage reductions are required
      from the  source/ the baseline must be clearly set.  The SIP
      must require the submission of all the information necessary
      to establish the baseline, and the alternative requirement
      must achieve the reduction called for in the SIP.

      2.  Time.   The alternative must specify the effective date
      of the alternative requirement.  The underlying requirement
      of the SIP  shall remain in effect until the effective date
      of the alternative.  The alternative must clearly specify
      any future-effective dates or any compliance schedules that
      apply to  the source under regulations in effect at the time
      of issuance.   For instance, a source may be due to comply
      with requirements promulgated before the permit/alternative
      was issued, but which are effective prior to the expiration
      of the permit/alternative.

      3.  Effect  of  changed conditions.  If alternative emissions
      limitations or other requirements are allowed in the
      underlying  SIP, the associated documentation with the
      changed conditions must clearly demonstrate the alternative
      requirement is no less stringent than the original SIP
      requirement.

      4.  Standard of conduct.  The alternative proposal must
      clearly state what requirements the source must meet.  For
      example,  the SIP must specify the emissions limit and what
      alternatives are acceptable.  The alternative proposal must
      contain limits, averaging times, test methods, etc., that
      are no less stringent and must address how they are no less
      stringent than the underlying SIP requirements.   The
      alternative proposal must also show whether it applies on a
      per-source or per-line basis or is facility-wide.

      5.  Transfer Efficiency.  Any SIP allowing alternative
      emissions limits and using transfer efficiency in
      determining compliance must explicitly state the
      circumstances under which a source may use improved transfer
      efficiency as a substitute for meeting the SIP limit.  The
      improvement should be demonstrated through testing and an
      appropriate baseline and test method should be specified.1
      See draft "Guidelines for determining capture efficiencies"
      for criteria for evaluating alternative capture  efficiency
     requirements.

      6.  Averaging Time.   Both the SIP and the alternative
     proposal must explicitly contain -the averaging time
     1Implied improvements noted by the NSPS auto coating transfer
efficiency table cannot be accepted at face value.

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 associated with each emissions  limit  (e.g.,  instantaneous,
 three hour average,  daily,  monthly, or  longer).  The time
 must be sufficient to protect the  applicable NAAQS.  The
 alternative proposal must demonstrate that the averaging
 time and the emissions limit  in the alternative are as
 stringent as those in the original SIP  requirements.

 7.   Monitoring and Recordkeepinq.  The  alternative proposal
 must state how the source will  monitor  compliance with the
 emissions requirement, and  detail  how the proposed method
 compares in accuracy,  precision, and  timeliness to the SIP-
 approved method.   Records and monitoring data must be
 retained for at least the same  period of time as required by
 the  SIP.  The method must enable compliance  determinations
 consistent with the  averaging time of the emissions
 standard.

 8.   Test Methods.  The alternative proposal  must detail how
 the  proposed test  method  in association with its particular
 emissions  requirement  (or rule) is at least  as stringent as
 the  approved method  in association with its  emissions limit
 (or  rule)  considering  the accuracy, reliability,
 reproducibility, and timeliness of each test method taken in
 combination with its emissions  limit.   The application or
 proposal must also address  how the change affects
 measurement sensitivity and representativeness, describe the
 need for the change, and  indicate if  the change is needed
 for  unique conditions  related only to the source in
 question.   The method  must  enable a compliance determination
 consistent with the  averaging time of the emissions standard
 associated with it.

 9.   Act  Requirements.  The  alternative must meet the all
 applicable Act requirements (e.g.,  for reasonably available
 control  technology,  15% VOC reduction, etc.)  and must not
 interfere  with any requirements of the Act, including any
 regarding  the SIP's  attainment demonstration and
 requirements  for reasonable further progress.

 10.  Production Level.  The emissions  .are no greater than
 the  SIP  allowable  emissions at the same production level.
 Pre-1990 production/operation scenarios cannot be used as
 part of  any demonstration that the alternative requirements
 are  as stringent as those in the SIP.   Also,  the
 demonstration must be performed using  an EPA-approved test
methods.

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             UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                  Office of Air Quality Planning and Standards
                  Research Triangle Park, North Carolina 27711       -.•- • -•-  _,,
                                                           3RA.NCH

                             APR 26 1993
 MEMORANDUM
 SUBJECT:  Definition of Regulated Air Pollutant for
           Purposes of Title V

 FROM:      Lydia N. Wegman, Deputy Director ^4^~^C^^V_A^-£J^-\Av.—
           Office of Air Quality Planning and Standards   (MD-10)

 TO:        Air Division Director, Regions I-X


      In response to requests for guidance on the definition of
 regulated air pollutant, this memorandum clarifies the approach
 set  forth by the definition in the 40 CFR part 70 regulations and
 indicates the ways in which the class of regulated air pollutants
 can  change.   The attachment provides a compilation of the lists
 of pollutants which are considered regulated air pollutants for
 purposes of  the operating permits programs under title V of the
 Clean  Air Act (Act).   This memorandum also provides guidance on
 the  Environmental Protection Agency's (EPA's)  definition of air
 pollutant, as that term is used in determining major source
 status pursuant to section 302 of the Act.   Finally,  this
 memorandum emphasizes the ability of permitting authorities to
 designate certain quantities of emissions of regulated air
 pollutants as "insignificant"  with respect to  the  obligation to
 report emissions of those pollutants in  permit applications.  The
 policies  set  out in this memorandum and  attachment are intended
 solely as guidance,  not final  Agency action,  and cannot be relied
 upon to  create  any rights enforceable by any party.

 I.  Regulated Air Pollutants

     The  definition of  regulated  air pollutant,  found at
 40 CFR  70.2,  is  important because  it determines which pollutants
 and emissions units must  be  addressed in a  source's title v •
 permit application.   In  addition,  this definition  can affect
whether a State's  fee revenue  is presumed adequate to fund its
title V program  and,  in  some cases,  the  amount  of  permit  fees  a
source must pay.   Each of  these roles is discussed below.

     Once a source  is subject  to a  title V  permitting program,
its  emissions of all regulated air  pollutants  (except those  which
meet  the permitting authority's criteria  for "insignificant"

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 emissions) must be  described in the  permit application  along with
 all emissions of pollutants  for which the source is considered
 major.  Similarly,  applications must describe all emissions  units
 which emit regulated  air pollutants  (except those deemed
 insignificant).

     IT addition, the concept of regulated air pollutant  plays  a
 significant role in the  area of permit fees.  Most importantly,
 the definition of regulated  air pollutant is the starting point
 for determining which pollutants must be included when  relying  on
 the $25 ton per year  (as adjusted by the Consumer Price Index)
 presumptive minimum program  cost as  a basis for demonstrating the
 adequacy of a State's projected fee  revenue.  As part of  this
 demonstration, the  State projects its revenue using a subset of
 regulated air pollutants [i.e.,  regulated pollutant (for
 presumptive fee calculation)].

     The population of regulated air pollutants is composed  of
 the following categories of  pollutants:

     (1)   Nitrogen oxides  (NO,) and  volatile  organic compounds
 (VOC).   The definition of regulated  air pollutant specifically
 includes these two significant  precursors to ozone (O3)
 formation.   This approach is  consistent with the Act's  treatment
 of VOC and NO, pursuant to part D of  'title I  of the Act  [these O3 .
 precursors are combined  with  the  criteria pollutants for  purposes
 of the attached list  of  regulated pollutants).

     (2)   Any pollutant  for which a  national ambient air  quality
 standard has been promulgated  [i.e., particulate matter (measured
 as PM-10:   particles  with an  aerodynamic diameter less  than  or
 equal  to a  nominal 10 micrometers),   sulfur dioxide,  O3,  nitrogen
 dioxide,  carbon monoxide, and  lead].

     (3)   Any pollutant  that  is  subject to a new source
 performance standard  promulgated under section  111 of the Act
 [including  section lll(d)], which requires new  and modified
 sources  to  satisfy emissions  standards,  work practice standards,
 and other  requirements.

     (4)   Any of the O3-depleting substances  specified as  a
 Class  I  (primarily chlorofluorocarbons)  or Class II  substance
 (hydrochlorofluorocarbons) under title VI of the Act (all of
which  became regulated pollutants when they  became subject to
 standards  and requirements for servicing of  motor vehicle air
conditioners,  and  restrictions on the sale of O3-depleting
substances  promulgated into 40 CFR part 82 (57  FR 31242, July 14,
 1992) 1 .

-------
      (5)  Any  pollutant subject to a standard promulgated under
 section  112  or other requirements established under  section  112
 of  the Act,  including section 112(g)(2),  (j), and  (r)  of  the Act.

      It  is important to note that it is EPA's interpretation that
 if  a  pollutant is  regulated for one source category  by a  standard
 or  other requirement,  then the pollutant  is considered a
 regulated air  pollutant for all source categories.   This  concept
 is  relevant  to all the pollutants listed  under items (3),  (4),
 and (5) above,  with one exception:   those which are  the subject
 of  case-by-case maximum achievable control technology  (MACT)
 determinations under section 112(g)(2).

      The issue of  when a substance regulated under section 112
 becomes a regulated air pollutant merits  further discussion.

 •     When a  permitting authority  makes a  case-by-case  MACT
      determination under section  112(g)(2), then the pollutant
    •  for which the determination  is made  is regulated  even though
      EPA has not issued a standard  for that pollutant.  However,
      the pollutant is  considered  regulated only with respect to
      the individual source for which the MACT determination was
      made.

 •     A pollutant will  become  regulated under section 112 (j) of
      the Act (the  MACT hammer]  if  the Administrator fails to
      promulgate'a  standard by  the date established pursuant to
      section ll-2(e)  of  the Act.   Pursuant to section I12(j),
      permitting authorities will  be required to make case-by-case
      KACT equivalent   determinations.  The pollutants become.
      regulated nationwide  upon  the date this provision takes
      effect for the  pollutant  (i.e., 18 months after the missed
     deadline  for  the  standard, but not prior to 42 months after
     the enactment  of  the  Act Amendments  of 1990 (1990
     Amendments) ) .   Pollutants  so regulated are considered
     regulated air  pollutants  for all sources that emit the
     pollutant because  the hammer provision is a broadly-
     applicable surrogate  for the promulgation of  a MACT
     standard.   This is  in contrast to the section 112(g)(2)
     determinations which  are triggered only for the  single
     source subject to  the requirement, rather than nationwide.

•    The  EPA's proposed rule (required by  section  112(r)(3))
     listing  substances which could cause, or may  reasonably  be
     anticipated to cause, death,  injury,  or serious  adverse
     effects  to human health or the environment,  if accidentally
     released,  was  published in the Federal  Register  on
     January-19,  1993  (58 FR 5102).  All of  the  listed pollutants
     will become regulated air pollutants  upon  promulgation of
     the  list.

-------
      The attachment to this memorandum contains a list of
 pollutants which are regulated, as well as a list of pollutants
 which are subject to regulation under section 112 in the future,
 as discussed above.   It is also important to note that the
 attached lists are dynamic and subject to change.   For example,
 the EPA is required to review periodically the statutory list of
 pollutants in section 112 (b)  and is authorized to delete and add
 substances if the scientific data demonstrate that such a change
 is appropriate.

      We have attempted to note the likely near-term changes in
 the regulations  that determine which pollutants are regulated air
 pollutants,  and  we will provide updates to this guidance
 periodically.

      The definition  of regulated air pollutant does not limit the
 air pollutants which a State  may choose to regulate,  nor does it
 limit the information (such as for permit applications)  which a
 State may require  of a source.   States are free to adopt more
 expansive approaches to the regulation of toxic air pollutants
 than  is  required by  part 70.

 II.   Definition of Air Pollutant Pursuant to  Section  302

      Considerable  interest  has  been expressed  in a  related  but
 distinct  area:  the  definition  of  air  pollutant contained in
 section  302(g) of the Act.  This definition governs which
 pollutants are to be considered in  determining whether a source
 is  "major" pursuant  to section  302(j)  of  the Act.  This  is
 important  to the operating  permits  programs because all  major
 sources must obtain  a  title V  permit.   Although section  302(g)
 cap. be read quite broadly,  so  as to encompass virtually  arty
 substance  emitted into the  atmosphere,  EPA believes that it is
 more  consistent with  the  intent of  Congress to  interpret this
 provision  more narrowly.  Were  this not done, a variety  of .
 sources that have no  known  prospect for"future regulation under
 the Act would nonetheless be classified as major sources and be
 required  to apply for  title V permits.  Of particular concern
 would be  sources of  carbon  dioxide  or methane.

     As a  result, EPA  is  interpreting  "air pollutant" for
 section 302(g) purposes as  limited  to all pollutants subject to
 regulation under the Act.   This  would  include, of course, all
 regulated air pollutants plus others specified by the Act or by
 EPA rulemaking.  This  approach  results  in the inclusion of the
 pollutants on the list of hazardous air pollutants in section
 112(b) that are not otherwise regulated.  It should be noted that
 the 1990 Amendments did include  provisions with respect to carbon
djoxide (section 821) and methane  (section 603), but these
 requirements involve actions such as reporting and study, not

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 actual control of emissions.  Therefore,  these  provisions do not
 preempt EPA's discretion to exclude these pollutants in
 determining whether a source is major.   If the  results of the
 studies required by the 1990 Amendments suggest the  need for
 regulation,  these pollutants could be reconsidered at that time
 for classification as pollutants subject to regulation under the
 \ct.

      This  approach to interpreting section 302(g) is similar to
 the traditional practice of the prevention of significant
 deterioration (PSD)  program under part  C of title I  of the Act
 [e.g.,  Implementation of North County Resource  Recovery PSD
 Remand,  Gerald Emison,  Director,  Office of Air  Quality Planning
 and Standards,  dated September 22,  1987].

 III.   De Minimis Thresholds

      With  the 1990 Amendments,  the Act  expressly addresses a
 significantly broader range of pollutants.   The  EPA  believes that
 this  will  confer real benefits to air guality management,  and
 that  the title V permits program offers the flexibility for
 efficient  implementation of these requirements.   This  function
 includes providing information about emissions  of these
 pollutants,  through  the permit application  process,  even  if the
 particular  pollutant is not currently required  to .be controlled
 at  the  individual  source.   The EPA  also realizes that  in  many
 cases  these  pollutants  are  emitted  in amounts of no  significance
 to  air  quality  management.   It would be unduly  burdensome  to
 require  permit  applicants to quantify all  emissions  of  these
 pollutants,  especially  given their  considerable number  and,  in
 sorr.e  cases,  difficulty  in quantification.

     The part  70  promulgation recognized this fact but  gave only
 very general guidance as to the approvable  options for  States in
 developing their  part 70 programs.   Section  70.5(c)  provides that
 "(T]he Administrator may approve  as  part of  a State program a
 list of  insignificant activities  and emissions levels which  need
 not be  included  in permit applications."    The regulation  further
 provides that  "[T)he permitting authority shall  require
 additional information  related  to the emissions  of air  pollutants
 sufficient to verify which  requirements are  applicable  to  the
 source,  and other  information needed to collect  any permit  fees
 owed under the  fee schedule approved pursuant to section 70.9(b)
 of this part"  [section  70.5(c)(3)(i)].

     In order to aid  States in  establishing  their approaches  to
 insignificant activities and  emissions  levels,  EPA intends  to
review various approaches to  setting de minimis  thresholds  for
reporting of emissions  of air pollutants and provide advice  and
guidance as needed on what  constitutes  acceptable approaches  for
setting de minimis levels.  This  effort will include evaluation
of data compiled by  EPA's national toxics program as well  as

-------
review of current practices among some States that have been
regulating these pollutants.  The EPA recognizes that the
particular thresholds  selected by individual States can vary
based on their air quality management needs and professional
judgement.  The EPA's  further efforts in this area will be
offered as technical support and guidance to State and local
programs in addressing these challenging issues, not as mandatory
program minima.  The EPA will work with States to develop part 70
programs that will best meet their program needs.

     For further information, please contact Kirt Cox or
Candace Carraway of my staff at (919) 541-5399 and
(919) 541-3189, respectively.

Attachments

cc:  Air Branch Chief, Regions I-X
     Operating Permits Program Contacts,  Regions I-X
     OAQPS Division Directors

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 Attachment 1
                 LIST  OF REGULATED AIR POLLUTANTS
                         (As  of  April  1993)

 I.   Pollutants for Which National Ambient Air Quality Standards
     (NAAQS)  Have Been Established

 lead
 sulfur dioxide
 nitrogen dioxide
 carbon monoxide
 particulate  matter (PM-10)
 ozone,  including precursors:.
      nitrogen oxides (NO, NO2,  N03, N2O, N2O3, N2OX, NjOj)
      volatile organic  compounds (VOC)

      As defined in 40  CFR 51.100(s),  the  term VOC  includes any
 compound of  carbon (excluding carbon  monoxide,  carbon dioxide,
 carbonic acid,  metallic carbides or carbonates,  and ammonium
 carbonate) which participates in atmospheric photochemical
 reactions.   The EPA has developed a list  of substances (which is
 subject to change)  which are excluded from the  VOC  definition
 because of their negligible  reactivity.   The EPA's  proposal to
 exclude perchloroethylene from  the definition was published in
 57 FR 48490  (October 26,  1992).

      The following organic compounds  are  excluded from the
 definition of  VOC  because they  have been  determined to have
 negligible photochemical  reactivity:

 methane
 ethane
 methylene chloride  (dichloromethane)
 1,1,1-trichloroethane  (methyl chloroform)
 l,l,l-trichloro-2,2,2-trifluoroethane  (CFC-113)
 trichlorofluoromethane  (CFC-11)
 dichlorodifluoromethane  (CFC-12)
 chlorodifluoromethane  (CFC-22)
 trifluoromethane  (FC-23)
 1,2-dichloro 1,1,2,2-tetrafluoroethane  (CFC-114)
 chloropentafluoroethane  (CFC-115)
 1,1,1-trifluoro 2,2-dichloroethane  (HCFC-123)
 1,1,1, 2-tetrafluoroethane  (HFC-134a)
 1,1-dichloro 1-fluoroethane  (HCFC-141b)
 1-chloro 1,1-difluoroethane  (HCFC-142b)
 2-chloro-l,1,1,2-tetrafluoroethane  (HCFC-124)
pentafluoroethane  (HFC-125)
 1,1,2,2-tetrafluoroethane (HFC-134)
 1,1,1-trifluoroethane  (HFC-143a)
1,1-difluoroethane  (HFC-l52a)

-------
 perfluorocarbon compounds which fall into -these classes:

      (i)   Cyclic,  branched,  or linear,  completely
           fluorinated alkanes;

     (ii)   Cyclic,  branched,  or linear,  completely
           fluorinated ethers with no unsatuzations;

    (iii)   Cyclic,  branched,  or linear,  completely
           fluorinated tertiary amines with no
           unsaturations;  and

     (iv)   Sulfur containing  perfluorocarbons with no
           unsaturations and  with  sulfur bonds only to
           carbon and  fluorine.

 II.  Pollutants Regulated Under New  Source Performance
     Standards  (NSPS)

 Criteria pollutants  (including  VOC and  NOJ plus:

 dioxin/furan  (defined  in  40  CFR 60.53a  to  mean total tetra
 through octachlorinated dibenzo-p-dioxins  and dibenzofurans)"
 fluorides
 hydrogen chloride"
 hydrogen sulfide (H,S)
 sulfuric acid mist
 total reduced sulfur
 reduced sulfur compounds
 total suspended particulate

   The  NSPS for  municipal  waste combustors  (MVJC)  controls
 emissions of dioxin/furans and  hydrogen chloride gas (40 CFR
 60.53a and 60.54a)  as  surrogates for controlling emissions of
 organic compounds and  acid gases which are emitted in the exhaust
gases from MWC units.  Thus,  the indicated dioxin/furan compounds
and hydrogen chloride  are regulated pollutants.

     Note that the  EPA has drafted a proposed revision to the
NSPS for MWC's which will regulate substances like cadmium which
are not currently regulated air pollutants.  As  this revised NSPS
and other standards are developed, there may be  additions to the
 list of regulated pollutants.

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III.
      Class I and  Class  II  Substances Under  Title VI
Class I Substances:

carbon tetrachloride
chlorofluorocarbon-11
chlorof orocarbon-12
chlorofluorocarbon-13
chlorofluorocarbon-111
chlorofluorocarbon-112
chlorofluorocarbon-113
chlorofluorocarbon-114
chlorofluorocarbon-115
chlorofluorocarbon-211
chlorofluorocarbon-212
chlorofluorocarbon-213
chlorofluorocarbon-214
chlorofluorocarbon-215
chlorofluorocarbon-216
chlorofluorocarbon-217
halon-1211
halon-1301
halon-2402
methyl chloroform

Class II Substances:
hydrochlorofluorocarbon-
hydrochlorof luorocarbon-
hydrochlorof luor ocar bon-
hydrochlorofluorocarbon-
hydrochlorof luorocarbon-
hydrochlorof luor ocar bon-
hydrochlorofluorocarbon-
hydrochlorof luorocarbon-
hydrochlorof luor ocar bon-
hydrochlorofluorocarbon-
hydrochlorof luorocarbon-
hydrochlorof luor oca rbon-
hydrochlorofluorocarbon-
hydrochlorof luorocarbon-
hydrochlorof luorocarbon-
hydrochlorofluorocarbon-
hydrochlorof luorocarbon-
hydrochlorof luorocarbon-
hydrochlorofluorocarbon-
hydrochlorof luorocarbon-
hydrochlorof luor ocar bon-
hydrochlorofluorocarbon-
hydrochlorof luorocarbon-
hydrochlorof luorocarbon-
hydrochlorofluorocarbon-
                       (CFC-11)
                       (CFC-12)
                       (CFC-13)
                        (CFC-111)
                        (CFC-112)
                        (CFC-113)
                        (CFC-114)
                        (CFC-115)
                        (CFC-211)
                        (CFC-212)
                        (CFC-213)
                        (CFC-214)
                        (CFC-215)
                        (CFC-216)
                        (CFC-217)
                        •21  (HCFC-21)
                        •22  (HCFC-22)
                        •31  (HCFC-31)
                        •121  (HCFC-121)
                        •122  (KCFC-122)
                        •123  (HCFC-123)
                        •124  (HCFC-124)
                        •131  (HCFC-131)
                        •132  (HCFC-132)
                        •133  (HCFC-133)
                        •141  (HCFC-141)
                        •142  (HCFC-142)
                        •221  (HCFC-221)
                        •222  (HCFC-222)
                        •223  (HCFC-223)
                        224  (HCFC-224)
                        •225  (HCFC-225)
                        •226  (HCFC-226)
                        231  (HCFC-231)
                        232  (HCFC-232)
                        •233  (HCFC-233)
                        234  (HCFC-234)
                        235  (HCFC-235)
                        241  (HCFC-241)
                        242  (HCFC-242)

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 hydrochlorofluorocarbon-243, (HCFC-243)
 hydrochlorofluorocarbon-244  (HCFC-244)
 hydrochlorofluorocarbon-251  (HCFC-251)
 hydrochlorofluorocarbon-252  (HCFC-252)
 hydrochlorofluorocarbon-253  (HCFC-253)
 hydrochlorofluorocarbon-261  (HCFC-261)
 hydrochlorofluorocarbon-262  (HCFC-262)
 hydrochlorofluorocarbon-271  (HCFC-271)

 IV.  Pollutants Regulated Under  §  112

 Pollutants for which national emission standards for hazardous
 air pollutants (NESHAP) have been  established:

 arsenic
 asbestos
 beryllium
benzene
mercury
radionuclides
vinyl chloride

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 Attachment 2

           POLLUTANTS  SUBJECT TO  REGULATION UNDER  §  112

 I.   Pollutants listed in § 112(b):

      The 189 pollutants listed in S 112 (b)  are not considered-
 regulated air pollutants until addressed in a requirement that
 the pollutant be controlled by a source.   None of  the listed
 pollutants meets the definition except asbest •• s, benzene, and
 vinyl chloride (for which NESHAP have been established); and
 hydrogen chloride (gas), dibenzofurans, and 2,3,7,8-
 Tetrachlorodibenzo-p-dioxin (regulated under  the municipal waste
 combustor NSPS).   Most of the listed pollutants will become
 regulated when EPA promulgates the Hazardous  Organic NESHAP (HON)
 which is discussed below.   The remaining  pollutants  will become
 regulated:   (1)  when EPA promulgates a maximum achievable control
 technology (MACT)  standard for the pollutant  under § 112(d);
 (2)  for  a particular source,  when case-by-case MACT
 determinations are made under §  H2(g)  for  the source;  or
 (3)  the  later of  June  15,  1994 or 18 months after  EPA fails to
 issue emissions  standards  for categories  of sources  in  compliance
 with the timetable promulgated pursuant to  §  112(e)  as  mandated
 by  § 112(j).

      The §  112(b)  list contains some technical errors which will
 be  corrected  in  subsequent ruicraaking.  The majority of  the
 technical  corrections  likely  to be made are noted  below.   Also,
 the  pollutants from  the §  112(b)  list which are addressed in  the
 proposed HON  are  followed  by  an asterisk.

 Cherr.ical
 Abstract
 Service
 (CAS)
 Number         Chemical  Name

 75070  ..        Acetaldehyde*
 60355          Acetamide'
 75058          Acetonitrile"
 98862          Acetophenone"
 53963          2-Acetylaminofluorene'
 107028         Acrolein"
79061          Acrylamide"
79107          Acrylic acid'
 107131         Acrylonitrile"
107051         Allyl chloride"
92671          4-Aminobiphenyl"
62533          Aniline*
90040          o-Anisidine"
1332214        Asbestos

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71432
92875
98077
100447
92524
117817
542881
75252
106990
156627
105602
133062
63252
75150
56235
463581
120809
133904
57749
7782505
79118
532274
108907
510156
67663
107302
126998
1319773
95487
108394
106-445
98828
94757
334883
132649

96128
84742
106467

91941

111444
542756
62737
111422
 Benzene (including benzene from gasoline)"
 Benzidine"
 Benzotrichloride"
 Benzyl chloride"
 Biphenyl"
 Bis(2-ethylhexyl)phthalate (DEHP)*
 Bis(chloromethyl)ether"
 Bromoform"
 1,3-Bu_adiene"
 Calcium cyanamide
 Caprolactam"
 Captan
 Carbaryl
 Carbon disulfide"
 Carbon tetrachloride*
 Carbonyl sulfide"
 Catechol"
 Chloramben'
 Chlordane
 Chlorine
 Chloroacetic acid"
 2-Chloroacetophenone"
 Chlorobenzene"
 Chlorobenzilate
 Chloroform*
 Chloromethyl methyl ether"
 Chloroprene*
 Cresols/Cresylic acid (isomers and mixture)"
 o-Cresol"
 iTi-Cresol"
 p-Cresol"
 Cumene"
 2,4-D (2,4-Dichlorophenoxyacetic acid, including
 salts and esters)"
 DDE"  (recommended technical correction:  CAS number
 72559] (1,l-dichloro-2,2-bis(p-chlorophenyl)
 ethylene)
"Diazomethane
 Dibenzofurans" (recommended technical  correction:
 Dibenzofuran]
 1,2-Dibromo-3-chloropropane"
 Dibutylphthalate'
 l,4-Dichlorobenzene(p)*  (recommended technical
correction:  1,4-Dichlorobenzene]
 3t3-Dichlorobenzidene" (recommended technical
correction:  3,3'-Dichlorobenzidine]
 Dichloroethyl  ether (Bis(2-chloroethyl)ether)"
 1,3-Dichloropropene"
 Dichlorvos
 Diethanolamine'

-------
121697
64675
119904

60117
119937

79447

68122

57147

131113
77781
51285
121142
123911
122667
106898
106887
140885
100414

51796
75003
106934
107062
107211
151564
technical
                                    , and salts"  [recommended
                                    to remove CAS number]
(1
        75218
        96457
        75343
,1-Dichloroethane)
               N,N-Diethyl  aniline (N,N-Dimethylaniline)*
               [recommended technical  correction:
              N,N-Dimethylaniline]
               Diethyl  sulfate"
               3, 3-Dimethoxybenzidine* [recommended technical
              correction:   3,3' -Dimethoxybenzidine ]
               Dimethyl aminoazobenzene"
               3 , 3',-Dimethyl  benzidine" [recommended technical
              correction:   3,3',-Dimethylbenzidine]
               Dimethyl carbamoyl chloride" [recommended
              technical correction:  Dimethylcarbamoyl chloride]
               Dimethyl formamide" [recommended technical
               correction:  N,N-DimethyIformamide]
               1,1-Dimethyl hydrazine" [recommended technical
              correction:   1,1-Dimethylhydrazine]
               Dimethyl phthalate"
               Dimethyl sulfate"
               4,6-Dinitro-o-cresol,
               technical  correction
               2,4-Dinitrophenol"
               2,4-Dinitrotoluene"
               1, 4-Dioxane  (1,4-Diethyleneoxide)*
               1, 2-Diphenylhydrazine*
               Epichlorohydrin (l-Chloro-2 , 3-epoxypropane)'
               1,2-Epoxybutane"           —
               Ethyl acrylate"
               Ethyl benzene"  [recommended technical correction:
               Ethylbenzene]
               Ethyl carbamate (Urethane)"
               Ethyl chloride  (Chloroethane)"
               Ethylene dibromide (Dibromoethane)"
               Ethylene dichloride  (1,2-Dichloroethane)'
               Ethylene glycol"
               Ethylene imine  (Aziridine)  [recommended
                        correction:  Ethyleneimine  (Aziridine)]
                          Ethylene oxide"
                          Ethylene thiourea"
                          Ethylidene  dichloride
                              50000
                              76448
                             118741
                             87683
                             77474
Kexachlorocyclopentadiene
Hexachloroethane"
H-examethylene-1, 6-diisocyanate*
Hexamethylphosphoramide"
Hexane*
Hydrazine"
  Formaldehyde"
 Heptachlor
Hexachlorobenzene"
Hexachlorobutadiene"

        67721
        822060
        680319
        110543
        302012

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7647010
7664393
123319
78591
108316
67561
72435
74839
74873
71556
78933
60344

74884
108101
624839
80626
1634044

101144
75092
101688
101779
91203
98953
92933
100027
79469
684935
62759
59892
56382
82688
87865
108952
106503
75445
7803512
7723140
85449
Hydrochloric acid  [recommended technical
correction:   Hydrochloric acid (hydrogen
chloride)(gas only)]
Hydrogen  fluoride  (Hydrofluoric acid)
Hydroquinone"
Isophorone"
Lindane  (all isomers)  [Recommended technical.
correction:  1,2,3,4,5,6-Hexachlorocyclohexane  (all
stereo isomers,  including lindane)]
Maleic anhydride"
Methanol*
Methoxychlor
Methyl bromide (Broraomethane)*
Methyl chloride  (Chloromethane)"
Methyl chloroform  (1,1,1-Trichloroethane)"
Methyl ethyl ketone  (2-Butanone)"  .
Methyl hydrazine* [recommended technical
correction:  Methylhydrazine]
Methyl iodide (lodomethane)"
Methyl isobutyl  ketone (Hexone)"
Methyl isocyanate"
Methyl methacrylate"
Methyl tert  butyl ether"  [recommended technical
correction:   Methyl tert-butyl ether]
4 , 4-Methylene bis (2-chloroaniline) *~~( recommended
technical correction:  4,4'-Methylenebis(2-
chloroaniline]
Methylene chloride  (Dichloromethane)"
Methylene diphenyl diisocyanate (MDI)"
(recommended technical correction:
4-4' Methylenediphenyl di.isocyanate  (MDI)]
4,4, -Methylenedianiline'
Naphthalene"
Nitrobenzene"
4-Nitrobiphenyl"
4-Nitrophenol"
2-Nitropropane"
N-Nitroso-N-methylurea"
N-Nitrosodimethylamine"
N-Nitrosomorpholine"
Parathion
Pentachloronitrobenzene (Quintobenzene)
Pentachlorophenol
Phenol"
p-Phenylenediamine"
Phosgene"
Phosphine
Phosphorus
Phthalic anhydride"

-------
1336363
1120714
57578
123386
114261
78875
75569
75558
91225
106514
100425
96093
1746016
79345
127184
7550450
10S883
95807

584849
95534
8001352
120821
79005
79016
95954
88062  '
121448
15S2098
540841
108054
5S3602
75014
75354
1330207
95476

10S3S3

106423

0
0
0
0
0
0
0
0
0
Polychlorinated biphenyls (Aroclors)
1,3-Propane sultone"
beta-Propiolactone*
Propionaldehyde"
Propoxur  (Baygon)"
Propylene dichloride  (1,2-Dichloropropane)
Propylene oxide"
1,2-Propyleniraine  (2-Methyl aziridine)
Quinoline
Quinone"
Styrene"
Styrene oxide"
2,3,7,8-Tetrachlorodibenzo-p-dioxin"
1,1, 2,2-Tetrachloroethane"
Tetrachloroethylene  (Perchloroethylene)"
Titanium tetrachloride
Toluene*
2,4-Toluene diamine" [recommended  technical
correction: 2,4-Toluenediamine]
2,4-Toluene diisocyanate"
o-Toluidine"
Toxaphene  (chlorinated camphene)
1,2,4-Trichlorobenzene"
1,1,2-Trichloroethane"
Trichloroethylene"
2,4,5-Trichlorophenol'
2,4,6-Trichlorophenol'
Triethylamine"
Trifluralin'
2,2, 4-Trimethylpentane"
Vinyl acetate"
Vinyl bromide"
Vinyl chloride"
Vinylidene chloride  (1,1-Dichloroethylene)"
Xylenes  (isomers and mixture)"
o-Xylenes" (recommended technical  correction:
o-Xylene
m-Xylenes"
m-Xylene]
p-Xylenes*
p-Xylene]
Antimony Compounds
Arsenic Compounds  (inorganic  including arsine)
Beryllium Compounds
Cadmium Compounds
Chromium Compounds
Cobalt  Compounds
Coke  Oven Emissions
Cyanide Compounds  [1]
Glycol  ethers"  [2]
(recommended  technical  correction:

[recommended  technical  correction:

-------
 0               Lead Compounds
 0               Manganese Compounds
 0               Mercury Compounds
 0               Fine mineral fibers '[3]
 0               Nickel Compounds
 0               Polycylic Organic Matter  [4]" [recommended
                technical correction: Polycyclic Organic Matter]
 0               Radionuclides (including  radon) [5]
 0               Selenium Compounds

 NOTE:  For all  listings above which contain the word "compounds"
 and for glycol  ethers,  the  following applies:  Unless otherwise
 specified, these  listings are defined as including any unique
 chemical substance  that contains the named chemical (i.e.,
 antimony, arsenic,  etc.)  as part of that chemical's
 infrastructure.

   1 X'CN where X = H'  or any other group where a formal
 dissociation may occur.
 For example KCN or  Ca(CN)2

   2 Includes mono- and di- ethers of ethylene glycol, diethylene
 glycol, and triethylene glycol  R-(OCH2CH2)n-OR' where

  .n = 1, 2,  or 3

   R = alkyl or aryl  groups

   R1  = R, H, or groups which,  when removed, yield glycol ethers
 with the structure:   R-(OCH2CH)B-OH [recommended technical
 correction:   R-(OCH2CH2) n-OH] .  Polymers, are  excluded  from  the
 glycol category.

   3 Includes mineral  fiber emissions from facilities
manufacturing or processing glass, rock,  or slag fibers (or other
mineral-derived fibers)  of  average diameter 1 micrometer or less.

   4 Includes organic  compounds  with more than one benzene ring,
and which have a boiling  point  greater than or equal to 100°C.
 [Recommended technical  correction:  limited to, or refers to,
products from incomplete  combustion of organic compounds (or
material)  and pyrolysis  processes having more than one benzene
ring,  and which have  a  boiling  point greater than or equal to
 100°C.]

   5 A type of atom which spontaneously undergoes radioactive
decay.

-------
     \       UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
     ?                   WASHINGTON. D.C. 20460
     '/
                                                           OfFCEOF
                                                      SQ^HJ WASTE ANO EMERGENCY
                                                           RESPONSE
MEMORANDUM

SUBJECT:   CAA Section 112(r) Final Rule  on List  &  Thresholds

FROM:      Jim Makris, Director O^O^'^^Xft^ ^
           Chemical Emergency Preparedness  *
                and Prevention Office

TO:        Addressees

I am pleased  to announce the publication of the final rule on
the list of substances and threshold quantities for chemical
accident prevention,  as required under section 112(r) of the
Clean Air  Act  (CAA)  Amendments of 1990. The final rule was
signed by  the  Administrator on January 14,  1994.

This rule  constitutes one of the responsibilities of the
Chemical Emergency Preparedness and Prevention Office (CEPPO)
under the  provisions  for chemical accident  prevention in the
CAA. The purpose  of these provisions is to  ensure that
facilities reduce the likelihood and severity of accidental
chemical releases that could harm the public  and the
environment. These provisions will also ensure that the
public and state  and  local governments receive facility-
specific information  on potential hazards and the steps
facilities are  taking to reduce those hazards. This
complements earlier requirements under the  Emergency Planning
and Community  Right-to-Know Act. The section  112(r)
regulations systematize and build on the.approach to
preventing chemical accidents that has existed in earlier
industry codes  and standards.

The substances  identified in this rule are  those  that have
the greatest potential to pose a hazard to  public health and
the environment in the event of an accidental release.
Facilities that handle these substances in  more than a
threshold quantity in a process  must develop  and  implement a
risk management plan.  That plan must include  offsite
consequence analyses,  a 5-year accident history,  a prevention
program,  and an emergency response program. The risk
                                                     Recycled/Recyclable
                                                     Printed with SoyrC*nol< Ink on paper IMI
                                                     cotntlm K Ion 50% nrftt»4 fiber

-------
 2/
management  plans  will be submitted to  the  implementing agency
 (state  or E&A) , Local Emergency Planning Committee, State
Emergency Response Commission^ the Chemical Safety and Hazard
Investigation  Board,  and will be made  available to the
public.  The elements  of the risk management planning
requirements were published in a proposed  rule in the Federal
Register on October 20,  1993.

The  final list  includes 77  acutely toxic substances, 63
flammable gases and volatile flammable liquids, and the
category of explosive substances with  a mass explosion hazard
known as Division 1.1 high  explosives, as  listed by DOT in 49
CFR  172.101. The  threshold  quantities  for  toxics range from
500  to  20,000 pounds,  while flammables have a threshold of
10,000  pounds and explosives of 5,000  pounds. The rule also
describes the procedures 'for determining whether a threshold
quantity of a regulated substance is present at a stationary
source.  It  specifies  exemptions for mixtures, articles, and
'certain  uses and  activities.  In addition,  it specifies the
requirements for  petitions  to the Agency to add substances to
or delete substances  from the list. The Agency is deferring
action  on the way to  determine threshold quantities for
listed  flammable  substances when used  solely for facility
consumption  as a  fuel.  A supplemental notice (attached) is
requesting  additional  public  comments on this issue.

Enclosed with this  memo  are copies of the  final
list/thresholds rule  and the  companion supplemental notice,
along with  additional  explanatory materials that set the
context  for  this  rule  within  the CAA accidental release
prevention  provisions  and EPA's  chemical accident prevention
program. The rule  will  be published in the Federal Register
on January  31,  1994.  If .you have any questions or need
additional  information  about  this  rule, please contact
Vanessa  Rodriguez  at  202-260-7913.
Attachments

-------
S 68.130  List of  substances.



      (a)  Explosives  listed  by DOT  as  Division 1.1 in 49 CFR Part



172.101 are. covered under section 112 (r) of the Clean Air Act.  The



threshold quantity for  explosives is 5,000 pounds.



      (b)  Regulated  toxic and flammable substances u"ier section



112 (r) of the Clean Air Act are the  substances listed  in Tables l,



2, 3, and 4.  Threshold quantities  for listed toxic and flammable



substances are specified  in  the  tables.



      (c)  The basis for placing  toxic and flammable substances on



the list of regulated substances are explained in the notes to the



list.
                               -83-

-------
    TAjBLE 1 TO $68.130  -  LIST OF REGULATED TOXIC SUBSTANCES AND THRESHOLD
                 QUANTITIES FOR ACCIDENTAL RELEASE  PREVENTION
                     (ALPHABETICAL ORDER - 77  SUBSTANCES]
Chemical  Name
Acrolein   (2-Propenal)
Acrylonitrile   [2-Propenenitrile}
Acrylyl chloride   (2-Propenoyl
chloride]
Allyl  alcohol   [2-Propen-l-ol]
Allylamine   [2-Propen-l-amine]
Ammonia (anhydrous)
Ammonia (cone  202  or  greater)
Arsenous  trichloride
Arsine
Boron  trichloride   [Borane,  trichloro-]
Boron  trifluoride   [Borane,  trifluoro-]
Boron  trifluoride  compound with methyl
ether  (1:1)  (Boron,
trifluoro[oxybis(metane]]-,  T-4-
Bromine
Carbon disulfide
Chlorine
Chlorine dioxide   (Chlorine  oxide
(C102)]
Chloroform   (Methane, trichloro-]
Chloromethyl ether  [Methane,
oxybis[chloro-]
Chloromethyl methyl ether  [Methane,
chloromethoxy-]
Crotonaldehyde  [2-Butenal]
Crotonaldehyde, (E)-  [2-Butenal. (E)-]
Cyanogen chloride
Cyclohexylamine  [Cyclohexanamine]
Diborane
CAS No
Threshold   Basis -
Quantity    for
fibs)       Listing
107-02-8
107-13-1
814-68-6
107-18-6
107-11-9
7664-41-7
7664-41-7
7784-34-1
7784-42-1
10294-34-5
7637-07-2
353-42-4
5,000
20,000
5,000
15,000
10,000
10,000
20,000
15,000
1,000
5,000
5,000
15,000
b
b
b
b
b
a, b
a, b
b
b
b
b
b
  7726-95-6   10,000      a, b
    75-15-0   20,000      b
  7782-50-5   2,500       a. b
 10049-04-4   1,000       c

    67-66-3   20,000      b
   542-88-1   1,000       b

   107-30-2   5,000       b

  4170-30-3   20,000      b
   123-73-9   20.000      b
   506-77-4   10,000      c
   108-91-8   15,000      b
 19287-45-7   2,500       b
                                    -84-

-------
Chemical, N^ae
Dimethyldichlorosilane [Silane,
dichlorodimethyl- ]
1 , 1 - D ime thy Ihydr az i ne [ Hydraz ine ,
1,1-dimethyl-j
Epichlorohydrin [Oxirane,
(chloromethyl)- ]
Ethylenediamine [ 1 , 2 -Ethanediamine ]
Ethyleneimine [Aziridine]
Ethylene oxide [Oxirane]
Fluorine
Formaldehyde (solution)
Fur an
Hydraz ine
Hydrochloric acid (cone 30Z or greater)
Hydrocyanic acid
Hydrogen chloride (anhydrous)
[Hydrochloric acid]
Hydrogen fluoride/Hydrofluoric acid
(cone 501 or greater) [Hydrofluoric
acid]
Hydrogen selenide
Hydrogen sulfide
Ir'on, pentacarbonyl- [Iron carbonyl
(Fe(CO)S). (TB-5-11)-]
Isobutyronitrile [Propanenitrile ,
2 -methyl-]
Isopropyl chloroformate
[Carbonochloridic acid, 1-methylethyl
ester]
Methacrylonitrile { 2-Propenenitrile ,
2 -methyl-]
Methyl chloride [Methane, chloro-]
Methyl chloroformate [Carbonochloridic
CAS No
75-78-5
57-14-7
106-89-8
107-15-3
151-56-4
75-21-8
7782-41-4
50-00-0
110-00-9
302-01-2
7647-01-0
74-90-8
7647-01-0
7664-39-3
7783-07-5
7783-06-4
13463-40-6
78-82-0
108-23-6
126-98-7
74-87-3
79-22-1
Thresholi
Quantity
Clbs)
5,000
15,000
20,000
20,000
10 . 000
10,000
1,000
15,000
5.000
15,000
15,000
2.500
5,000
1,000
500
10,000
2.500
20,000
15,000
10,000
10,000
5,000
i Basis
for
Listing
b
b
b
b
b
a,
b
b
b
b
d
a.
a
a,
b
a,
b
b
b
b
a
b




b





b

b

b






acid,  methylester]
                                  -85-

-------
Chemical,
Methyl hydrazine   [Hydrazine, methyl-]
Methyl isocyanate   i fethane,
isocyanato-}
Methyl mereaptan   [Methanethiol]
Methyl thiocyanate   (Thiocyanic acid,
methyl ester]
Methyltrichlorosilane   [Silane,
trichloromethyl-]
Nickel carbonyl
Nitric acid  (cone  802 or greater)
Nitric oxide  [Nitrogen oxide (NO)]
Oleum (Fuming Sulfuric  acid)  (Sulfuric
acid, mixture with  sulfur trioxide]1
Peracetic acid  [Ethaneperoxoic acid]
Perchloromethylmercaptan
[Methanesulfenyl chloride, trichloro-]
Phosgene  [Carbonic dichloride]
Phosphine
Phosphorus oxychloride  [Phosphoryl
chloride]
Phosphorus trichloride  [Phosphorous
trichloride]
Piperidine
Propionitrile  [Propanenitrile]
Propyl chlorofornate  [Carbonochloridic
acid, propylester]
Propyleneimine  [Aziridine, 2-methyl-]
Propylene oxide  [Oxirane, methyl-]
Sulfur dioxide (anhydrous)
Sulfur tetrafluoride  [Sulfur fluoride
(SF4). (T-4)-]
Sulfur trioxide
CAS No
60-34-4
624-83-9
74-93-1
556-64-9
75-79-6
13463-39-3
7697-37-2
10102-43-9
8014-95-7
79-21-0
594-42-3
75-44-5
7803-51-2
10025-87-3
7719-12-2
110-89-4
107-12-0
109-61-5
75-55-8
75-56-9
'7446-09-5
7783-60-0
Threshold
Quantity
abs)
15,000
10,000
10,000
20,000
5,000
1,000
15,000
10,000
10,000
10,000
10.000
500
5,000
5,000
15,000
15,000
10,000
15,000
10,000
10,000
5,000
2,500
Basis
for
Listing
b
a, b
b
b
b
b
b
b
e
b
b
a. b
b
b
b
b
b
b
b
b
a, b
b
7446-11-9   10,000
a,  b
                                    -86-

-------
 Chemical Nai
CAS No
Threshold   Basis
Quantity    for
fibs')       Listing
 Tetramethyllead   [Plumbane,
 tetramethyl-]

 Tetranitromethane   [Methane,
 tetranitro-]

 Titaniua tetrachloride   [Titanium
 chloride (TiCU)  (T-4)-]

 Toluene 2,4-diisocyanate   [Benzene,
 2,4-diisocyanato-l-methyl-]1

 Toluene 2,6-diisocyanate   (Benzene,
 1,3-diisocyanato-2-methyl-]l

 Toluene diisocyanate  (unspecified
 isomer)  [Benzene,
 1,3-diisocyanatomethyl-]x

 Trimethylchlorosilane   [Silane,
 chlorotrimethyl-]

 Vinyl acetate monomer   [Acetic acid
 ethenyl ester]
    75-74-1  10,000
   509-14-8  10,000
  7550-45-0  2,500
   584-84-9   10,000
    91-08-7   10,000
 26471-62-5   10,000
    75-77-4   10,000
   108-05-4   15,000  '   b
     mixture exemption in §68.115(b) (1) does not apply to the substance.

Basis for Listing:

•Mandated for listing by Congress.
bOn EHS list, vapor pressure 10 mmHg or greater.
eToxic gas.
*Toxicity of  hydrogen chloride, potential  to  release hydrogen  chloride,  and
history of accidents.
Toxicity of  sulfur  trioxide and  sulfuric  acid,  potential  to  release  sulfur
trioxide, and history of accidents.
                                     -87-

-------
TABLE 2 TO $68.130 - LIST OF REGULATED TOXIC SUBSTANCES  AND THRESHOLD
             QUANTITIES FOR  ACCIDENTAL RELEASE PREVENTION
                  [CAS  NUMBER ORDER  -  77 SUBSTANCES)

CAS No.
50-00-0
57-14-7
60-34-4
67-66-3
74-87-3
74-90-8
74-93-1
75-15-0
75-21-8
75-44-5
75-55-8
75-56-9
75-74-1
75-77-4
75-78-5
75-79-6
78-82-0
79-21-0
79-22-1
91-08-7
106-89-8
107-02-8

Chemical Name
7T"
Formaldehyde (solution)
1, 1-Dimethylhydrazine [Hydrazine,
1,1 -dimethyl-]
Methyl hydrazine [Hydrazine, methyl-]
Chloroform [Methane, trichloro-]
Methyl chloride [Methane, chloro-]
Hydrocyanic acid
Methyl mercaptan . [Methanethiol] ,
Carbon disulfide
Ethylene oxide [Oxirane]
Phosgene [Carbonic dichloride]
Propyleneimine [Aziridine, 2-methyl-]
Propylene oxide [Oxirane, methyl-]
Tetramethyllead (Plumbane,
tetramethyl- ]
Trimethylchlorosilane (Silane,
chlorotrimethyl- ]
Dimethyldichlorosilane [Silane,
dichlorodimethyl- ]
Methyltrichlorosilane [Silane,
trichloromethyl- ]
Isobutyronitrile [ Propanenitrile ,
2-methyl-]
Peracetic acid [Ethaneperoxoic acid]
Methyl chloroformate [Carbonochloridic
acid, methylester]
Toluene 2 , 6-diisocyanate [Benzene,
1 . 3-diisocyanato-2-methyl- j l
Epichlorohydrin (Oxirane,
(chloromethyl)-]
Acrolein [2-Propenal]
Threshold
Quantity
dbs}
15,000
15,000
15,000
20,000
10,000
2,500
10,000
20,000
10,000
500
10,000
10,000
10,000
10,000
5.000
5,000
20,000
10,000
5,000
10,000
20,000
5,000
Basis-
for
Listing
b '
b
b
b
a
a, b
b
b
a, b
a, b
b
b
b
b
b
b
b
b
b
a
b
b
                                -88-

-------
CAS No.
107-11-9
107-12-0
107-13-1
107-15-3
107-18-6
107-30-2
108-05-4
108-23-6
108-91-8
109-61-5
110-00-9
110-89-4
123-73-9
126-98-7
151-56-4
302-01-2
353-42-4
506-77-4
509-14-8
Chemical Name
Allylamine [2-Propen-l-*aoine]
Proplonitrile [Propanenitrile]
Acrylonitrile [2-Properie-nitrile]
Ethy lenediamine [1,2- Ethanediamine ]
Allyl alcohol [2-Propen-l-ol]
Chloromethyl methyl echer [Methane,
chloromethoxy- ]
Vinyl acetate monomer [Acetic acid
ethenyl ester]
Isopropyl chloroformate
[Carbonochloridic acid, 1-methylethyl
ester]
Cyclohexylamine [Cyclohexanamine]
Propyl chloroformate [Carbonochloridic
acid, propylester]
Furan
Piperidine
Crotonaldehyde, (E)- [2-Butenal, (E)-)
Hethacrylonitrile [2-Propenenitrile ,
2 -methyl-]
Ethyleneimine [Aziridine]
Hydrazine
Boron trifluoride compound with methyl
ether (1:1) [Boron,
trifluoro[oxybis[metane] ] - , T-4-
Cyanogen chloride
Tetranitrome thane [Methane,
Threshold
Quantity
ribs) '
10,000
10,000
20,000
20,000
15,000
5,000
15,000
15,000
15,000
15,000
5,000
15,000
20,000
10,000
10,000
15,000
15.000
10,000
10,000
Basis
for
Listing
b
b
b
b
b
b
b
b
b
b
b
b
b
b
b
b
b
c
b
           tetranitro-]

542-88-1   Chloromethyl  ether  [Methane.              1,000       b
           oxybis[chloro-]

556-64-9   Methyl thiocyanate  [Thiocyanic  acid,      20,000      b
           methyl ester]

584-84-9   Toluene 2,4-diisocyanate   [Benzene,        10.-000      a
           2,4-diisocyanato-1-methyl-]1
                                 -89-

-------
                    Threshold   Basis
                    Quantity    for
CAS No.
594-42-3
.24-83-9
814-68-6
4170-30-3
7446-09-5
7446-11-9
7550-45-0
7637-07-2
7647-01-0
7647-01-0
'7664-39-3
7664-41-7
7664-41-7
7697-37-2
7719-12-2
7726-95-6
7782-41-4
7782-50-5
7783-06-4
7783-07-5
7783-60-0
7784-34-1
7784-42-1
7803-51-2
Chemical Name
. Perchloromethylmercaptan
(Methanesulfenyl chloride, trichloro-]
Methyl isocyanate [Methane,
isocyanato- ]
Acrylyl chloride (2-Propenoyl
chloride]
Crotonaldehyde [2-Butenal]
Sulfur dioxide (anhydrous)
Sulfur trioxide
Titanium tetrachloride [Titanium
chloride (TiC14) (T-4)-]
Boron trifluoride [Borane, trifluoro-]
Hydrochloric acid (cone 302 or greater)
Hydrogen chloride (anhydrous)
(Hydrochloric acid]
Hydrogen fluoride/Hydrofluoric acid
(cone 502 or greater) (Hydrofluoric
acid]
Ammonia (anhydrous)
Ammonia (cone 202 or greater)
Nitric acid (cone 802 or greater)
Phosphorus trichloride [Phosphorous
trichloride]
Bromine
Fluorine
Chlorine
Hydrogen sulfide
Hydrogen selenide
Sulfur tetrafluoride (Sulfur fluoride
(SF4), (T-4)-]
Arsenous trichloride
Arsine
Phosphine
(Ibs)
10,000
10,000
5,000
20,000
5,000
10,000
2,500
5,000
15,000
5,000
1,000
10.000
20 , 0'OO
15,000
15,000
10,000
1,000
2,500
10,000
500.
2,500
15,000
1 ,-000
5,00.0
Listing
b
a,
b
b
a,
a,
b
b
d
a
a,
a.
a,
b
b
a,
b
a,
a,
b
b
b
b
b
b


b
b




b
b
b


b

b
b





-90-

-------
 CAS No.
                                                         Threshold   Basis
                                                         Quantity    for
8014-95-7
10025-87-3
10049-04-4
Oleum (Fuming Sulfuric acid) {Sulfuric
acid, mixture with sulfur trioxide]1
Phosphorus oxychloride [Phosphoryl
chloride]
Chlorine dioxide [Chlorine oxide
10 , 000
5,000
1,000
e
b
c
               (C102)]

  10102-43-9   Nitric oxid«   [Nitrogen oxide (NO)]

  10294-34-5   Boron trichloride  [Borane, trichloro-]

  13463:39-3   Nickel carbonyl

  •13463-40-6   Iron, pentacarbonyl-  [Iron carbonyl
               (Fe(CO)5), (TB-5-11)-]

  19287-45-7   Diborane

  26471-62-5   Toluene diisocyanate (unspecified
               isomer)   [Benzene,
               1,3-diisocyanatomethyl-J1
10,000
5,000
1,000
2,500
2,500
10,000
b
b
b
b
b
a
1The mixture exemption in §68.115(b)(1) does not apply  to  the substance.

Basis for Listing:

•Mandated for listing by Congress.
bOn EHS  list,  vapor pressure 10 mmHg or greater.
'Toxic gas.
dToxicity of  hydrogen chloride, potential  to  release  hydrogen chloride, and
history of accidents.
Toxicity of  sulfur  trioxide and  sulfuric  acid,  potential to release sulfur
trioxide, and history of accidents.
                                     -91-

-------
TABLE 3 TO $68.130  - LIST OF REGULATED FLAMMABLE SUBSTANCES AND THRESHOLD
               QUANTITIES FOR ACCIDENTAL  RELEASE PREVENTION
                   (ALPHABETICAL ORDER -  63 SUBSTANCES]
Chemical N*»m<» •
Acetaldehyde
Ace ty lene [ Ethyne ]
Bromotrif luorethy lene [ Ethene ,
bromotrifluoro- ]
1,3 -Butadiene
Butane
1-Butene
2-Butene
Butene
2- Butene -cis
2 -Butene -trans (2 -Butene, (E)]
Carbon oxysulfide [Carbon oxide
sulfide (COS)]
Chlorine monoxide [Chlorine oxide]
2-Chloropropylene [1-Propene,
2-chloro-]
1-Chloropropylene [1-Propene,
1-chloro- ]
Cyanogen [Ethanedinitrile]
Cydlopropane
Dichlorosilane [Silane, dichloro-]
Difluoroethane [Ethane, 1,1-difluoro- ]
Dime thy lanin« [Methanamine , N-methyl-]
2 , 2-Dimethylpropane [Propane,
2,2-dimethyl-]
Ethane
Ethyl acetylene [1-Butyne]
Ethylamine [Ethanamine]
Ethyl chloride [Ethane, chloro-J
CAS No.
75-07-0
74-86-2
598-73-2
106-99-0
106-97-8
106-98-9
107-01-7
25167-67-3
590-18-1
624-64-6
463-58-1
7791-21-1
557-98-2
590-21-6
460-19-5
75-19-4
4109-96-0
75-37-6
124-40-3
463-82-1
74-84-0
107-00-6
75-04-7
75-00-3
Threshold
Quantity
fibs}
10,000
10,000
10 , 000
10,000
. 10,000
10,000
10 , 000
10,000
10 , 000
10 , 000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10.000
10,000
10,000
10,000
10 ; ooo
10.000
Basis
for
Listing
g
f
f
f
f
f
f
f
f
f
f
f
g
g
f '
f
f
f
f
f
f
f
f
f
                                  -92-

-------
Chemical ^MM
Ethylene [Ethene]
Ei-nyl ether (Ethane, 1,1' -oxybis- ]
Ethyl mercaptan [ Ethane thiol]
Ethyl nitrite [Nitrous acid, ethyl
ester]
Hydrogen
Isobutane [Propane, 2-methyl]
Isopentane [Butane, 2-methyl-]
Isoprene [1,3 -Butadiene, 2-methyl-]
Isopropylamine [2-Propanamine]
Isopropyl chloride [Propane,
2-chloro-]
.Methane
Methylamine [Methanaaine]
3 -Methyl - 1 -butene
2-Methyl-l-butene
Methyl ether [Methane, oxybis-]
Methyl formate [Formic acid, methyl
ester]
2-Methylpropene [1-Propene, 2-methyl-]
1,3-Pentadiene
Pehtane
1-Pentene
2-Pentene, .
-------
 Chemical Name
 Tetrafluoroethylene  [Ethene,
 tetrafluoro-]
 Tetramethylsilane  [Silane,
 tetramethyl-]
 Trichlorosilane  [Silane, crichloro-)

 Trifluorochloroethylene  [Ethene,
 chlorotrifluoro-]

 Trinethylanine  [Methanamine,
 N.N-dimethyl-]
 Vinyl acetylene  [l-Buten-3-yne]

 Vinyl chloride  (Ethene, chloro-]

 Vinyl ethyl ether  [Ethene, ethoxy-]
 Vinyl fluoride  [Ethene, fluoro-]

 Vinylidene chloride  [Ethene,
 1,1-dichloro-]
 Vinylidene fluoride  [Ethene,
 1,1-difluoro-]

 Vinyl methyl ether  (Ethene, methoxy-]
CAS No.
Threshold
Quantity
fibs)
'  116-14-3   10,000

   75-76-3   10,000

10025-78-2   10,000

   79-38-9   10,000


   75-50-3   10,000
Basis
for
Listing
            g
            f
689-97-4
75:01-4
109-92-2
75-02-5
75-35-4
75-38-7
107-25-5
10,000
10 , 000
10,000
10,000
10,000
10,000
10,000
f
a, f
g
f
g
f
f
Basis for Listing:

•Mandated for listing by Congress.
fFlammable gas.
'Volatile flammable liquid.
                                     -94-

-------
TABLE 4 TO 568.130  -  LIST  OF REGULATED FLAMMABLE SUBSTANCES AND THRESHOLD
               QUANTITIES FOR ACCIDENTAL RELEASE PREVENTION
                    [CAS NUMBER ORDER -  63 SUBSTANCES]

CAS No.
60-29-7
74-82-8
74-84-0
74-85-1
74-86-2
74-89-5
74-98-6
74-99-7
75-00-3
75-01-4
75-02-5
75-04-7
75-07-0
75-08-1
75-19-4
75-28-5
75-29-6
75-31-0
75-35-4
75-37-6

75-38-7

Chemlra| Name
Ethyl ether [Ethane,
l.l'-oxybis-]
Methane
Ethane
Ethylene [ Ethene ]
Acetylene [Ethyne]
Methylamine [Methanamine]
Propane
Propyne [1-Propyne]
Ethyl chloride [Ethane,
chloro- ]
Vinyl chloride [Ethene.
chloro- ]
Vinyl fluoride [Ethene.
fluoro- ]
Ethylamine [Ethanamine]
Acetaldehyde
Ethyl mercaptan
[ Ethane thiol]
Cyclopropane
Isobutane [ Propane ,
2 -methyl]
Isopropyl chloride
[Propane, 2 -chloro-]
laopropylamine
[ 2 - Propanamine ]
Vinylidene chloride
[Ethene, 1 , 1-dichloro- ]
Difluoroethane [Ethane,
1,1-difluoro-]
Vinylidene fluoride

CAS No.
60-29-7
74-82-8
74-84-0
74-85-1
74-86-2
74-89-5
74-98-6
74-99-7
75-00-3
75-01-4
75-02-5
75-04-7
75-07-0
75-08-1
75-19-4
75-28-5
75-29-6
75-31-0
75-35-4
75-37-6

75-38-7
Threshold
Quantity
Qbs^
. ,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10,000
10.000
10,000
10,000
10,000
10,000
10,000
•10,000
10,000
10,000

10 , 000
Basis
for
Listing
g
f
f
f
f
f
f
f
f
a. f
f
f
g
g
f
f
g
g
g
f

f
            [Ethene,  1,1-difluoro-]
                                   -95-

-------
CAS No.
   75-50-3

   75-76-3

   78-78-4

   78-79-5

   79-38-9

  106-97-8
  106-98-9
  106-99-0
  107-00-6
  107-01-7
  107-25-5

  107-31-3

  109-66-0
  109-67-1
  109-92-2

  109-95-5

  115-07-1
  115-10-6

  115-11-7

  116-14-3

  124-40-3

  460-19-5
Chemical Name
Trinethylamine
[Methanamine, N,N-dimethyl- ]
Tetramethylsilai. >  (Silane.,
tetramethyl-]
Isopentane   [Butane,
2-methyl-]
Isoprene  [1,3-Butadiene,
2-m«thyl-]
Trifluorochloroethylene
[Ethene, chlorotrifluoro-]
Butane
1-Butene
1,3-Butadiene
Ethyl acetylene  [1-Butyne]
2-Butene
Vinyl methyl ether  [Ethene,
methoxy-]
Methyl formate  [Formic
acid, methyl ester]
Pentane
1-Pentene
Vinyl ethyl ether  [Ethene,
ethoxy-]
Ethyl nitrite  [Nitrous
acid, ethyl ester]
Propylene  [1-Propene]
Methyl ether  [Methane,
oxybis-"]
2-Methylpropene  [1-Propene.
2-methyl-]
Tetrafluoroethylene
[Ethene, tetrafluoro-]
Dimethylamine  (Methanamine.
N-methyl-]
Cyanogen  [Ethanedinitrile)
CAS No.
Threshold   Basis
Quantity    for
fibs)       ListinE
   75-50-3  10,000      f

   75-76-3  10,000      g

   78-78-4  10,000      g

   78-79-5  10,000      g

   79-38-9  10,000      f

  106-97-8  10,000      f
  106-98-9  10,000      f
  106-99-0  10,000      f
  107-00-6  10,000      f
  107-01-7  10,000      f
  107-25-5  10,000      f

  107-31-3  10,000      g

  109-66-0  10,000      g
  109-67-1  10,000      g
  109-92-2  10,000      g
  109-95-5   10,000

  115-07-1   10,000
  115-10-6   10,000

  115-11-7   10,000

  116-14-3   10,000

  124-40-3   10,000

  460-19-5   10,000
           f
           f
                                    -96-

-------
  CAS  No.
    463-49-0
    463-58-1

    463-82-1

    504-60-9
    557-98-2

    563-45-1
    563-46-2
    590-18-1
    590-21-6

    598-73-2

    624-64-6

    627-20-3
    646-04-8
    689-97-4
Chemical  Name
Propadiene   [i, 2-Propadiene]
Carbon oxysulfide   {Carbon.
oxide sulfide  (COS)]
2 , 2-Dimethylpropane
[Propane, 2, 2 -dimethyl-)
1,3-Pentadiene
2 - Chloropropylene
[1-Propene,  2-chloro-]
3 -Methyl - 1 -butene
2 -Methyl - 1 -butene
2-Butene-cis
1- Chloropropylene
[1-Propene,  1-chloro-]
Bromotrifluorethylene
[Ethene, bromotrifluoro- ]
2 -Butene -trans  [2 -Butene,
 CAS No.
Threshold  Basis
Quantity   for
fibs')      Listing
2-Pentene, (Z)-
2-Pentene, (E)-
Vinyl acetylene
[l-Buten-3-yne]
  1333-74-0   Hydrogen
  4109-96-0   Dichlorosilane  (Silane,
              dichloro-]
  7791-21-1   Chlorine monoxide  [Chlorine
              oxide]
  7803-62-5   Silane
 10025-78-2   Trichlorosilane  [Silane.
              trichloro-]
 25167-67-3   Butene
Basis for Listing:
•Mandated for listing by Congress.
£Flammable gas.
'Volatile flammable liquid.
  463-49-0   10,000     f
  463-.8-1   10,000     f

  463-82-1   10,000     f

  504-60-9   10,000     f
  557-98-2   10,000     g

  563-45-1   10,000     f
  563-46-2   10.000     g
  590-18-1   10,000     f
  590-21-6   10,000     g

  598-73-2   10,000     f

  624-64-6   10,000     f

  627-20-3   10,000     g
  646-04-8   10.000     g
  689-97-4   10,000     f

 1333-74-0   10,000     f
 4109-96-0   10,000     f

 7791-21-1   10,000     f

 7803-62-5  '10,000     f
10025-78-2   10.000      g

25167-67-3   10,000      f
                                     -97-

-------
                         October 16, 1995
MEMORANDUM

SUBJECT:  Definition  of  Regulated  Pollutant  for  Particulate
          Matter  for  Purposes  of Title V

FROM:     Lydia N. Wegman, Deputy  Director   /s/
          Office  of Air  Quality Planning and Standards  (MD-10)

TO:       See Addressees

     In a guidance memorandum  dated April 26,  1993, the Agency
clarified its interpretation of the term "regulated air
pollutant" as defined in the operating permit  rule  (see 40 CFR
70.2).  Recently, many discussions have been held concerning the
application of this definition to  sources of particulate matter
under the title V operating permit program.  Today's memorandum
provides additional guidance to assist permitting authorities in
determining which sources of particulate matter  are subject to
the requirements  of title V.

     There are different forms of  particulate  matter for which
controls are required by various regulations.  The April 26, 1993
memorandum listed PM-lO  and total  suspended  particulates as
regulated forms of particulate matter and,  consequently,
regulated air pollutants.  The EPA has recently  reevaluated this
finding and has concluded that its definition  of regulated air
pollutant under title V  applies only to emissions of PM-10.  A
detailed discussion of the basis for this conclusion is attached.

     Today's guidance should be used to determine which sources
of particulate matter are subject  to minimum title V requirements
and fee calculations.  The Federal minimum for applicability of
title V to sources of particulate  matter should be based on the
amount of emissions of PM-10,  not  particulate matter, that the
source has the potential to emit.  Some sources  [such as country
grain elevators,   aggregate (rock,  gravel, and  sand)  handling
operations,  and some  mining operations]  may  not be major sources
of PM-10 even though  they would have been considered major
sources of particulate matter.

     This guidance does  not change any requirements for sources
to comply with emission  limitations or work practice standards as
described in State implementation  plans (SIPs)  and new source
performance standards  (NSPS).  For example,   the required
procedures for determining compliance with NSPS continue to be
based on in-stack measurements of particulate emissions or
visible emissions observations (i.e.,  Test  Methods 5,  9, 17,  and

-------
22, and Performance Specification 1).  The Federal minimum is
that if sources are major, then they must obtain title V
operating permits which include all applicable requirements.
Therefore, if a source is major for particulate matter, but not
for PM-10, the Federal minimum would be that a title V operating
permit would not be required if the only pollutant that would
make the source major is particulate matter.  Any requirements to
comply with NSPS or SIPs would remain in effect, however.

     This clarification of PM-10's status as the regulated
pollutant will cause some difficulties in estimating emissions;
however, tools are available for many source categories.  For
example, although some 1900 particulate matter emission factors
can be found in the document referred to as "AP-42," there are
also over 1200 PM-10 factors.  In addition, category specific
particle-size distributions are available for a number of other
categories on EPA's data bases.

     This revision of previous guidance constitutes a change only
with regard to the title V operating permit program.  It does not
change any other interpretations or requirements that have been
previously provided for implementing the Clean Air Act.

     The policies set forth in this memorandum are intended
solely as guidance and not final Agency action.  This guidance
cannot be relied upon to create any rights enforceable by any
party.   For further information on the title V aspects of this
guidance,  please contact Leo Stander at 919-541-2402, and for
further information on emissions estimation techniques, please
contact David Mobley at 919-541-4676.

Attachment

-------
Addressees:
Director, Office of Ecosystem Protection, Region I
Director, Air &. Waste Management Division, Region II
Director, Air, Radiation & Toxics Division, Region III
Director, Air, Pesticide & Toxics Management Division, Region IV
Director, Air and Radiation Division, Region V
Director, Multimedia Planning and Permitting Division, Region VI
Director, Air, RCRA and TSCA Division, Region VII
Director, Office of Pollution Prevention, State and Tribal,
Region VIII
Director, Air & Toxics Division, Region IX
Director, Office of Air, Region X

cc:  Chief,  Air Branch, Regions I-X
     Operating Permits Program Contact, Regions I-X
     OAQPS Division Directors

-------
REGULATED AIR POLLUTANT:  PARTICULATE MATTER

     This document explains the Environmental Protection Agency
 (EPA) policy that, at this time, PM-10 is considered to be  the
only regulated  form of particulate matter.  Today's policy
supersedes prior EPA statements which indicated that a second
regulated form  of particulate matter existed.  As explained
further below,  such prior statements were based on the fact that
EPA had established specific compliance methods for sources of
particulate matter under the new source performance standards
 (NSPS).  The immediate consequence of this policy is that under
the title V operating permits program only PM-10 is considered by
EPA to be the regulated form of particulate matter for
applicability and fee purposes.  This policy does not affect  (1)
existing requirements under the NSPS that a source comply with
applicable performance standards for particulate matter emissions
or  (2) provisions contained in State implementation plans for
particulate matter, including existing particulate emissions
limitations, which have been approved by EPA and are relied upon
to attain or maintain the national ambient air quality standards
 (NAAQS) for particulate matter.

Background

     The part 70 regulations for State title V operating permit
programs define "regulated air pollutant" at 40 CFR 70.2.   This
definition is intended to ensure that permitting authorities
receive appropriate information on all pollutants which are
"regulated" under the Clean Air Act (Act) and emitted by a
source.  The term "regulated air pollutant" is intended to
reflect all pollutants subject to a standard, regulation, or
requirement by  including in the definition five specific
categories of pollutants which would be considered regulated air
pollutants.   Questions have arisen,  based on an EPA-issued
memorandum on April 26, 1993,  entitled "Definition of Regulated
Air Pollutant for Purposes of Title V," concerning how many
regulated forms of particulate matter the definition includes.
The memorandum  identified two regulated indicators--PM-10 and
total suspended particulate (TSP).   The PM-10 was considered
regulated because it was a pollutant for which a NAAQS had been
     The five categories of pollutants included (1) nitrogen
oxides and volatile organic compounds, (2)  any pollutant for
which NAAQS have been established,  (3) any pollutant that is
subject to an NSPS under section 111,  (4)  certain ozone depleting
substances, and (5) any pollutant subject to national emission
standard for hazardous air pollutants (NESHAP)  under section 112.

-------
 promulgated.   The  TSP was  listed  as a pollutant regulated under
 the NSPS.7

      Implied  in  the April  1993 memorandum  (though not explicitly
 stated  therein)  was the  interpretation that the NSPS for
 particulate matter--which  measures a different form of
 particulate than PM-10--automatically constituted a separate
 regulated indicator for  particulate matter.  The EPA has
 reevaluated this interpretation and has concluded that it is no
 longer  appropriate.   It  is EPA's  current position that different
 indicators for particulate matter may be used as surrogate
 measures where appropriate for controlling ambient concentrations
 of PM-10 without specifically requiring such surrogates
 themselves to  be regarded  as regulated pollutants.  The EPA
 further believes that the  basis for determining what the
 regulated pollutant or indicator  is for particulate matter should
 focus on EPA's intent as evidenced primarily by the underlying
 statutory authority used by EPA to subject the relevant air
 pollutant to a standard, regulation or requirement, and by
 statements made  by EPA in  connection with its promulgation.  This
 interpretation does not preclude  EPA from specifically choosing
 to regulate a  different  indicator for particulate matter under
 the authority  of section 111 of the Act.  However, as explained
 below,  it was  not EPA's  intent to do so for any of the NSPS
 promulgated to date for particulate matter.

 Section 109 authority

     To date,  EPA's efforts to regulate particulate matter have
 relied  primarily upon the  joint authorities of sections 108 and
 109 of  the Act.  Section 108 directs the Administrator to
 identify pollutants which may reasonably be anticipated to
 endanger public health or welfare and to issue air quality
 criteria for those pollutants.  Section 109 of the "Act then
 governs the establishment and revision of NAAQS for criteria
 pollutants.   On April  30,  1971,  EPA promulgated the original
 NAAQS for particulate matter.  The NAAQS defined ambient
 concentrations of particulate matter measured as TSP (ambient
 compliance sampling achieved by "high volume" samplers which
 collect particulate matter up to  a nominal size of 25 to 45
 micrometers).  On July 1,  1987,  EPA revised the NAAQS for
 particulate matter, replacing the TSP indicator with the new
 PM-10 indicator.
     The EPA subsequently acknowledged that the correct
description of the indicator considered to be regulated under the
NSPS was "particulate emissions" as measured by in-stack test
methods, e.g., Federal Reference Method 5.

-------
Section 111 authority

     The control  of particulate  matter  is  also  required by
various NSPS under section  111 of  the Act.   Section  111 generally
requires EPA to promulgate  NSPS  for  any category  of  stationary
sources that "...causes,  or contributes significantly  to, air
pollution which may reasonably be  anticipated to  endanger public
health or welfare."  The  EPA promulgated numerous NSPS
specifically to address the criteria pollutant, particulate
matter, during the period of time  when  the NAAQS  for particulate
matter were measured as TSP.  While  EPA indicated that
particulate matter was a  criteria  pollutant  for which  NAAQS had
been promulgated, EPA compliance tests  used  to  meet  the specific
NSPS for particulate matter did  not  use the  same  indicator as the
indicator for the NAAQS for particulate matter.   Instead, such
compliance tests  typically  involved  measures of particulate
matter in the stack using emissions  testing procedures (e.g.,
Method 5) that do not take  into  account particle  size.
Nevertheless, preamble discussions to certain of  these NSPS show
that EPA regarded the pollutant  of concern to be  the criteria
pollutant for which NAAQS had been promulgated.   See e.g.. NSPS
for Phosphate Rock Plants (9/21/79), Nonmetallic  Mineral
Processing Plants  (8/1/85),  and  Calciners  and Dryers in Mineral
Industries (9/28/92).

     With the promulgation  of PM-10  NAAQS  in 1987, EPA considered
the issue of whether to revise the NSPS with respect to
particulate matter.  In a July 1,  1987  Federal  Register notice,
EPA acknowledged  that the indicator  for particulate  matter used
to measure compliance with  the NSPS  was different from both TSP
and PM-10 (52 FR 24710).  The EPA  stated,  therein, that the
existing NSPS "that reflect  the  best demonstrated control
technology for particulate matter have  the effect of controlling
PM-10."  The EPA later decided that, at least \ntil  further
studies could be accomplished, the existing NSPS  for particulate
matter would serve as adequate surrogates  for limiting ambient
amounts of PM-10, the intended "regulated air pollutant."  The
NSPS promulgated after 1987  have continued to base compliance on
in-stack emissions test methods  which measure particulate
emissions.   Based on this regulatory history, it  is  EPA's
position that the use of  particulate matter emissions  as the
measure of compliance under various NSPS for particulate matter
does not,  in itself,  constitute  a new regulated air pollutant,
but is simply designed as a  surrogate measure of particulate
matter to establish effective performance standards which limit
the emissions of the regulated indicator, PM-10.

     While the EPA contends that the control of a pollutant under
an NSPS does  not automatically result in that pollutant being

-------
considered regulated if the intended pollutant is already being
regulated under separate legal authority, the EPA does
specifically rely upon the NSPS to regulate certain pollutants.
A case in point is the NSPS for kraft pulp mills at 40 CFR 60
subpart BB, which includes limitations for emissions of total
reduced sulfur compounds.  This and other specific non-criteria
pollutants are considered "regulated air pollutants" by virtue of
the fact that EPA intended for them to be regulated by the NSPS,
since they are not regulated elsewhere.

Other examples of surrogate measures

     The EPA has used the measurement of particulate matter
emissions for compliance purposes as the surrogate for
controlling the pollutant intended to be regulated in the
section 112 context as well.  Examples of such situations are the
NESHAP for arsenic and asbestos at 40 CFR 61.140 and 61.170,
respectively.  The EPA listed asbestos and arsenic as hazardous
pollutants under section 112 of the Act.  Subsequently, the EPA
promulgated standards for several sources of asbestos and for
inorganic arsenic emissions from primary copper smelters which
require compliance with a particulate matter emissions limit
using Method 5 and opacity monitoring  (51 FR 27956, August 4,
1986 at 27981.)   Nevertheless, the EPA considers arsenic and
asbestos, as listed in accordance with section 112 of the Act, to
be regulated pollutants in these instances.

Other implications

     Nothing stated in this current policy is intended to negate,
void or otherwise affect limits expressed as particulate matter
emissions under any NSPS, or the enforceability of existing
standards contained in State control strategies for PM-10 which
may actually require compliance with other indicators for
particulate matter.  The EPA historically has allowed States to
rely upon their original SIPs based on the control of particulate
matter emissions to demonstrate attainment with the PM-10 NAAQS.
The EPA continues to consider these plans to be adequate so as to
remain in effect and be enforceable as long as they continue to
be used to demonstrate attainment of the regulated indicator for
particulate matter, PM-10.

-------
                          March 8, 1994
MEMORANDUM

SUBJECT:  Consideration of Fugitive Emissions in Major Source
          Determinations

FROM:     Lydia Wegman, Deputy Director  /s/
          Office of Air Quality Planning and Standards   (MD-10)

TO:       Director, Air, Pesticides and Toxics
            Management Division, Regions I and IV
          Director, Air and Waste Management Division,
            Region II
          Director, Air, Radiation and Toxics Division,
            Region III
          Director, Air and Radiation Division,
            Region V
          Director, Air, Pesticides and Toxics Division,
            Region VI
          Director, Air and Toxics Division,
            Regions VII, VII, IX, and X

     This memorandum summarizes the Environmental Protection
Agency's  (EPA's) policy regarding the consideration of fugitive
emissions for the purpose of determining whether a source is
major under the Clean Air Act (Act).   As explained below, EPA
will revisit, in a future revision to the part 70 regulations
("Operating Permit Programs"), the requirement to consider
fugitives from sources subject to national emission standard for
hazardous air pollutants (NESHAP) and new source performance
standards (NSPS) promulgated after August 7, 1980, when
determining whether a source is major under section 302 (j) of the
Act.  For the present time, State operating permits programs that
do not require consideration of fugitives for these sources will
be eligible for interim approval.  States must require
consideration of fugitives for purposes of determining whether a
source is major under section 112,  but need not require
consideration of fugitives for purposes of the new major source
definitions in part D of title I of the Act.

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I.  Background:  Statutory and Regulatory Provisions Affected

    A.  Section 302 (j) and Section 169(1)

     The Act's primary definition of "major stationary source"
and "major emitting facility" is found in section 302 (j) in the
general definitions portion of the Act.  It reads:

     Except as otherwise provided, the terms "major
     stationary source" and "major emitting facility"
     mean any stationary facility or source of air
     pollutants which directly emits, or has the
     potential to emit, 100 tons per year (tpy) or
     more of any air pollutant (including any major
     emitting facility or source of fugitive emissions
     of any such pollutant, as determined by rule by
     the Administrator).

     The section 302 (j) definition was added to the Act in 1977.
Another definition of "major emitting facility" was added in 1977
in section 169(1).  It sets a higher 250 tpy threshold for
certain source categories for purposes of part C preconstruction
review.

     B.  Lower Threshold Definitions Added by the
         1990 Amendments to the Act

     The 1990 Amendments added nine new definitions of "major
source" or "major stationary source."  Seven of these definitions
appear in part D of title I and expand the set of "major
stationary sources" of volatile organic compounds, -particles with
an aerodynamic diameter less than or equal to a nominal 10
micrometers (PM-10), and CO for nonattainment areas by lowering
the tonnage threshold below the 100 tpy specified in
section 302 (j) .
     2These are, specifically:  §182(c), "Serious Areas" for
ozone nonattainment; §182(d), "Severe Areas" for ozone
nonattainment; §182(e), "Extreme Areas" for ozone nonattainment;
§182(b)(1)(A)(ii)(I), new source review in "moderate areas" for
ozone nonattainment; §187 (c), "Serious Areas" for carbon monoxide
nonattainment; §184(b)(2), interstate ozone control; §189(b)(3),
"Serious Areas" for PM-10 nonattainment.

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      The  other two new definitions are found in section 112(a)(1)
 and  title V.    Section 112 provides a definition of  "major
 source" similar to the definition of "major stationary source"
 and  "major emitting facility"  in part D of  title I only tailored
 to the new hazardous air pollutants (HAP) provisions.   The
 title V definition incorporates  by reference all of  the other
 "major source"  and "major stationary source" definitions.

      C.   "Major Source"  Definitions in Part 70

      The  definition of "major  source" in section 70.2  of the
 permits rule  divides into three  parts,  corresponding to the
 section 112 definition,  the section 302 (j)  definition,  and the
 lower tpy thresholds in the title I nonattainment provisions,
 respectively.   The second definition,  corresponding  to section
 302 (j), requires the counting  of fugitive emissions  only for
 certain listed source categories.   The other two part  70
 definitions are silent on the  issue of when fugitive emissions
 must  be considered.

      The  section 302 (j)  definition lists 27 categories of  sources
 for which fugitive emissions must be considered in determining
 whether a source is major for  purposes of section 302 (j).   The
 twenty-seventh  category requires that fugitive  emissions be
 considered for:

      All  other  stationary source categories regulated  by a
      standard promulgated under  section 111 or  112 of  the
      Act,  but  only with  respect  to those air pollutants  that
      have been  regulated for that  category.

 For present purposes,  this  should  be contrasted  with the
 corresponding provisions in the  prevention  of significant
 deterioration  (PSD)  and  new source review (NSR)  regulations
 (see, e.g., 40  CFR §51.165(a)(1)(iv)(C)), which  refer  to:

     Any  other  stationary source  category which,  as  of
     August 7,  1980,  is  being  regulated  under section  111  or
      112  of the  Act.

     Regarding  the  first  and third parts of  the  part 70  "major
 source" definition,  the  question of  when fugitive emissions must
 be considered for  applicability purposes was addressed directly
     3Section 501(a) (1) provides:  The term "major source" means
any stationary source  (or any group of stationary sources located
within a contiguous area and under common control) that is either
of the following:   (a) a major source as defined in section 112,
and (b) a major stationary source as defined in section 302 or
part D of title I.

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 in  the  response  to  comments document for the part 70 rulemaking.
 Section 3.5 of the  response document states that the Act requires
 fugitives  to be  considered for purposes of determining whether a
 source  is  major  under any of the part D or the section 112
 definitions.

 II.  Summary of  EPA Policy

     In response to questions raised following promulgation of
 part 70, EPA has reconsidered the treatment of fugitives for
 purposes of making  major source determinations.  The EPA's
 decisions  regarding the relevant provisions is summarized below
 in  three parts.

     A.  Sources Subject to NSPS or NESHAP Standards Promulgated
 after August 7,  1980

     The designation in the part 70 rules of sources subject to
 NSPS and NESHAP  promulgated after August- 7, 1980 as sources for
 which fugitives  must be counted for purposes of major source
 determinations did  not follow the procedural steps necessary for
 a proper rulemaking under section 302 (j).   As a result, EPA
 believes it would be inappropriate for the Agency to require
 States  to  count  fugitives from these sources in making section
 302 (j)   major source determinations.  In the absence of a legally-
 sound Federal requirement, a State may choose to exercise its own
 legal authority  to  require that fugitives  from sources subject to
 the post-1980 standards be considered in determining major source
 status  under section 302 (j).   However,  a State need not require
 that fugitives from these sources be so counted in order to
 obtain  interim approval of its title V program.

     The EPA intends to revisit this aspect of the rule in a
 revision to part 70 to occur sometime in 1994.   The EPA believes
 that it may, in  the mean time,  grant interim approval to programs
 that do not require fugitives to be considered in determining the
 status  of  sources subject to post-1980 NSPS and NESHAP standards.
However, until the rule is revised with respect to sources
 subject to the post-1980 standards, EPA may not grant full
approval to a State program that does not  include the post-1980
 standards.   Programs adhering to the language in the current rule
will be eligible for full approval provided,  as is the case for
any element of part 70,  the State has provided adequate legal
authority  for that element of its program.

     Note  that the policy articulated in section C below
regarding  the section 112 major source definition operates
independently of a State's decision to list the post-1980 NESHAP
standards  for purposes of determining whether a source is major
under the  section 302 (j)  definition.   Therefore,  in determining
whether a  source is major for section 112  purposes,  a source must

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consider fugitive emissions of HAP  listed pursuant to section
112(b) regardless of whether  the  source  is in a  category
designated through rulemaking under section 302(j).

     B.   Definitions of  "Major Stationary Source" in Part D
          of Title I

     The EPA has revised  its  interpretation of the Act from that
stated in the response  to comments  document.  The EPA now
believes the Act does not require fugitives to be considered for
purposes of determining major source status in these
nonattainment areas, except as provided  pursuant to rulemaking
under section 302 (j).   State  programs that follow this revised
interpretation will be  eligible for full approval, as will
programs that follow the  more inclusive  policy articulated in the
response to comments document, provided  the more inclusive
program is supported by adequate  State law authority.

     The legal rationale  for  this position is that nothing in the
statute or the legislative history  of the Part D definitions
indicates an intent to  depart from  the section 302 (j) requirement
that rulemaking be done before fugitives are included for
applicability purposes  in nonattainment  areas.  To the contrary,
the explicit reference  in most of these  Part D definitions back
to section 302 (j), and  the fact that these provisions address a
broad universe of sources emitting  a particular pollutant or
class of pollutants, suggests that  the section 302 (j) rulemaking
requirement carries over  to these definitions.  It is therefore
permissible to read the Act not to  require the consideration of
fugitive emissions for  these  purposes.

     C.  Definition of  "Major Source" in Section 111

     The EPA continues  to believe the Act requires that fugitive
emissions, to the extent  quantifiable, must be considered in
determining major source  status for all section 112 purposes.
This policy applies to  a  source of  any of the section 112(b)
listed pollutants whether or  not  the source in question is in a
category listed pursuant  to section 112 (c).  The EPA expects
States to comply with this policy in their operating permits
program submittals.

     The section 112 "major source" definition is distinguishable
legally from the Part D definitions  in some important respects.
Section 112 uses the term "major  source"  as opposed to "major
stationary source,"  and legislative history indicates an intent
to treat this definition  as distinct from the section 302(j)
"major stationary source" definition.  Moreover,  section 112
establishes a new regulatory program wherein Congress has
narrowed the regulatory concern to  specific pollutants at

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specific source categories to be determined by EPA.  All of this
suggests that the section 302 (j) rulemaking requirement does not
apply in the context of section 112, and that fugitive emissions
must therefore be included for purposes of determining whether a
source is major under section 112.

     D.  Collocation of Sources

     Questions have also been raised regarding the treatment of
fugitive emissions where sources in categories listed pursuant to
section 302 (j) are collocated with sources that are not in any of
the listed categories.  The EPA intends to follow the policies
established in implementation of the PSD and NSR programs.  Only
the fugitive emissions from the listed source are required to be
counted for purposes of determining major source status.  Where
there is a collocated source that is not on the source category
list and where the nonlisted source is the primary activity at
the site, fugitive emissions would not need to be counted from
the collocated, nonlisted source.  The EPA will issue case
examples to help clarify application of this principle in the
near future.

     For further information, please contact Kirt Cox, Operating
Permits Policy Section, at (919) 541-5399, or Adan Schwartz,
Office of General Counsel, at (202)  260-7632.

cc:  Air Branch Chief, Regions I-X
     Regional Counsel, Regions I-X
     M. Winer
     M. Miller
     K. Stein

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                         January 25,  1995
MEMORANDUM

SUBJECT:  Options for Limiting the Potential to Emit  (PTE) of a
          Stationary Source Under Section 112 and Title V of the
          Clean Air Act  (Act)

FROM:     John S. Seitz, Director
          Office of Air Quality Planning and Standards  (MD-10)

          Robert I. Van Heuvelen, Director
          Office of Regulatory Enforcement  (2241)

TO:       Director, Air, Pesticides and Toxics
            Management Division, Regions I and IV
          Director, Air and Waste Management Division,
            Region II
          Director, Air, Radiation and Toxics Division,
            Region III
          Director, Air and Radiation Division,
            Region V
          Director, Air, Pesticides and Toxics Division,
            Region VI
          Director, Air and Toxics Division,
            Regions VII, VIII, IX, and X

     Many stationary source requirements of the Act apply only to
"major" sources.  Major sources are those sources whose emissions
of air pollutants exceed threshold emissions levels specified in
the Act.  For instance, section 112 requirements such as MACT and
section 112(g) and title V operating permit requirements largely
apply only to sources with emissions that exceed specified levels
and are thus major.  To determine whether a source is major, the
Act focuses not only on a source's actual emissions, but also on
its potential emissions.  Thus, a source that has maintained
actual emissions at levels below the major source threshold could
still be subject to major source requirements if it has the
potential to emit major amounts of air pollutants.  However, in
situations where unrestricted operation of a source would result
in a potential to emit above major-source levels, such sources
may legally avoid program requirements by taking federally-
enforceable permit conditions which limit emissions to levels
below the applicable major source threshold.  Federally-
enforceable permit conditions, if violated,  are subject to
enforcement by the Environmental Protection Agency (EPA) or by
citizens in addition to the State or Local agency.

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      As  the  deadlines for complying with MACT  standards  and
 title V  operating permits approach,  industry and State and local
 air pollution  agencies have  become  increasingly focused  on the
 need  to  adopt  and implement  federally-enforceable mechanisms  to
 limit emissions  from sources that desire to limit potential
 emissions  to below major source  levels.  In fact, there  are
 numerous options available which can be tailored by the  States to
 provide  such sources with simple and effective ways to qualify as
 minor sources.   Because there appears to be some confusion and
 questions  regarding how potential to emit limits may be
 established, EPA has decided to:   (1) outline  the available
 approaches to  establishing potential to emit limitations,
 (2) describe developments related to the implementation  of these
 various  approaches,  and (3)  implement a transition policy that
 will  allow certain sources to be treated as minor for a  period of
 time  sufficient  for these sources to obtain a  federally-
 enforceable  limit.

      Federal enforceability  is an essential element of
 establishing limitations on  a source's potential to emit.
 Federal  enforceability ensures the  conditions  placed on  emissions
 to limit a source's  potential to emit are enforceable by EPA and
 citizens as  a  legal  and practical matter, thereby providing the
 public with  credible assurances  that otherwise major sources are
 not avoiding applicable requirements of the Act.  In order to
 ensure compliance  with the Act,  any  approaches developed to allow
 sources  to avoid the major source requirements must be supported
 by the Federal authorities granted  to citizens and EPA.  In
 addition,  Federal  enforceability provides source owners  and
 operators  with assurances  that limitations they have obtained
 from  a State or  local  agency  will be recognized by EPA.

      The concept  of  federal enforceability incorporates  two
 separate fundamental  elements that must be present in all
 limitations on a  source's  potential  to emit.   First,  EPA must
 have  a direct  right  to enforce restrictions and limitations
 imposed  on a source  to limit  its exposure to Act programs.  This
 requirement  is based both  on  EPA's general interest in having the
 power to enforce  "all  relevant features of SIP's that are
 necessary  for attainment and  maintenance of NAAQS and PSD
 increments"  (see  54  FR 27275, citing 48 FR 38748,  August 25,
 1983)  as well as  the  specific goal of using national enforcement
 to ensure  that the requirements of the Act are uniformly
 implemented throughout  the nation (see 54 FR 27277).   Second,
 limitations must be  enforceable as a practical matter.

      It  is important  to  recognize that there are shared
 responsibilities on  the part  of EPA, State,  and local agencies,
 and on source owners  to  create and implement approaches  to
 creating acceptable  limitations on potential emissions.  The lead
 responsibility for developing limitations on potential emissions
 rests primarily with  source owners and State and local agencies.
At the same time, EPA must work together with interested parties,
 including  industry and  States to ensure that clear guidance is
 established and  that timely Federal  input,  including Federal

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 approval  actions,  is  provided where appropriate.   The  guidance  in
 this memorandum is aimed towards  continuing and improving  this
 partnership.

 Available Approaches  for Creating Federally-enforceable
 Limitations  on the Potential  to Emit

     There  is  no single  "one  size fits  all" mechanism  that would
 be appropriate for creating federally-enforceable  limitations on
 potential emissions for  all sources in  all  situations.  The
 spectrum  of  available mechanisms  should,  however,  ensure that
 State  and local agencies can  create federally-enforceable
 limitations  without undue administrative  burden to sources or the
 agency.   With  this in mind, EPA views the following types  of
 programs, if submitted to and approved  by EPA,  as  available to
 agencies  seeking to establish federally-enforceable potential to
 emit limits:4

     1.   Federally-enforceable State operating  permit  programs
 (FESOPs)  (non-title V).   For  complex sources with  numerous and
 varying emission points,  case-by-case permitting is generally
 needed for  the establishment  of limitations on  the source's
 potential to emit.  Such case-by-case permitting is often
 accomplished through  a non-title  V federally-enforceable State
 operating permit program.   This type of permit  program, and its
 basic  elements,  are described in  guidance published in the
 Federal Register on June 28,  1989  (54 FR  27274).   In short, the
 program must:   (a)  be approved into the SIP,  (b) impose legal
 obligations  to conform to the permit limitations,  (c)  provide for
 limits that are enforceable as a  practical  matter,  (d) be  issued
 in a process that  provides  for review and an opportunity for
 comment by  the public and by  EPA,  and (e) ensure that  there is no
 relaxation  of  otherwise  applicable Federal  requirements.   The EPA
 believes  that  these type of programs can  be used for both
 criteria  pollutants and  hazardous  air pollutants,  as described in
 the memorandum,  "Approaches to Creating Federally-Enforceable
 Emissions Limits,"  November 3,  1993.  This  memorandum  (referred
 to below  as the November 1993  memorandum) is included  for  your
 information as Attachment 1.   There are a number of  important
 clarifications with respect to hazardous  air pollutants
 subsequent to  the  November 1993 memorandum  which are discussed
 below  (see section  entitled "Limitations  on Hazardous Air
 Pollutants").

     2.   Limitations  established by rules.  For less complex
 plant  sites, and for  source categories  involving relatively few
 operations that are relatively similar  in nature,  case-by-case
 permitting may not be  the most  administratively efficient
 approach  to establishing  federally-enforceable restrictions.  One
     4This is not an exhaustive list of considerations affecting
potential to emit.  Other federally-enforceable limits can be
used, for example, source-specific SIP revisions.  For brevity,
we have included those which have the widest applicability.

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approach that has been used is to establish a general rule which
creates federally-enforceable restrictions at one time for many
sources (these rules have been referred to as "exclusionary"
rules and by some permitting agencies as "prohibitory" rules).  A
specific suggested approach for volatile organic compounds (VOC)
limits by rule was described in EPA's memorandum dated October
15, 1993 entitled "Guidance for State Rules for Optional
Federally-Enforceable Emissions Limits Based Upon Volatile
Organic Compound  (VOC) Use."  An example of such an exclusionary
rule is a model rule developed for use in California.  (The
California model rule is attached, along with a discussion of its
applicability to other situations--see Attachment 2).
Exclusionary rules are included in a State's SIP and generally
become effective upon approval by EPA.

     3.  General permits.   A concept similar to the exclusionary
rule is the establishment of a general permit for a given source
type.  A general permit is a single permit that establishes terms
and conditions that must be complied with by all sources subject
to that permit.  The establishment of a general permit provides
for conditions limiting potential to emit in a one-time
permitting process,  and thus avoids the need to issue separate
permits for each source within the covered source type or
category.   Although this concept is generally thought of as an
element of a title V permit program, there is no reason that a
State or local agency could not submit a general permit program
as a SIP submittal aimed at creating potential to emit limits for
groups of sources.  Additionally,  general permits can be issued
under the auspices of a SIP-approved FESOP.  The advantage of a
general permit, when compared to an exclusionary rule, is that
upon approval by EPA of the State's permit program,- a
general permit could be written for one or more additional source
types without triggering the need for the formal SIP revision
process.

     4.  Construction permits.  Another type of case-by-case
permit is a construction permit.  These permits generally cover
new and modified sources,  and States have developed such permit
programs as an element of  their SIP's.  As described in the
November 1993 memorandum,  these State major and minor new source
review  (NSR)  construction permits can provide for federally-
enforceable limitations on a source's potential to emit.   Further
discussion of the use of minor source NSR programs is contained
in EPA's letter to Jason Grumet, NESCAUM, dated November 2,  1994,
which is contained in Attachment 3.   As noted in this letter, the
usefulness of minor NSR programs for the creation of potential to
emit limitations can vary from State to State, and is somewhat
dependent on the scope of  a State's program.

     5.  Title V permits.   Operating permits issued under the
Federal title V operating  permits program can, in some cases,
provide a convenient and readily available mechanism to create
federally-enforceable limits.   Although the applicability date
for part 70 permit programs is generally the driving force for
most of the current concerns with respect to potential to emit,

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 there are  other  programs,  such as  the  section 112  air toxics
 program, for  which title V permits may themselves  be  a useful
 mechanism  for creating potential to emit  limits.   For example,
 many sources  will  be  considered to be  major by virtue of
 combustion emissions  of nitrogen oxides or sulfur  dioxide,  and
 will be  required to obtain part 70 permits.   Such  permits  could
 be used  to establish  federally-enforceable limitations that could
 ensure that the  source is  not  considered  a major source of
 hazardous  air pollutants.

 Practicable Enforceability

     If  limitations--whether imposed by SIP rules  or  through
 individual or general permits--are incomplete or vague or
 unsupported by appropriate compliance  records,  enforcement  by the
 States,  citizens and  EPA would not be  effective.   Consequently,
 in all cases,  limitations  and  restrictions must be of sufficient
 quality  and quantity  to ensure accountability (see 54 FR 27283).

     The EPA  has issued several guidance  documents explaining the
 requirements  of  practicable enforceability (e.g.,  "Guidance on
 Limiting Potential to Emit in  New  Source  Permitting," June  13,
 1989; memorandum from John Rasnic  entitled "Policy Determination
 on Limiting Potential to Emit  for  Koch Refining Company's Clean
 Fuels Project,"  March 13,  1992).   In general,  practicable
 enforceability for a  source-specific permit  means  that the
 permit's provisions must specify:   (1)  A  technically-accurate
 limitation and the portions of the source  subject  to  the
 limitation;  (2)  the time period for the limitation (hourly,
 daily, monthly,  and annual limits  such as  rolling  annual limits);
 and  (3)  the method to determine compliance including  appropriate
 monitoring, recordkeeping,  and reporting.   For rules  and general
 permits  that  apply to categories of sources,  practicable
 enforceability additionally requires that  the provisions:
 (1) identify  the types or  categories of sources that  are covered
 by the rule;  (2) where coverage is  optional,  provide  for notice
 to the permitting  authority of the  source's  election  to be
 covered  by the rule;  and (3) specify the enforcement  consequences
 relevant to the  rule.   More specific guidance on these
 enforceability principles  as they  apply to rules and  general
 permits  is  provided in Attachment  4.

 Limitations on Hazardous Air Pollutants (HAP)

     There  are a number of  important points  to  recognize with
 respect  to  the ability of  existing  State and  local programs to
 create limitations  for the  189  HAP  listed  in  (or pursuant to)
 section  112(b) of  the  Act,   consistent with the definitions  of
 "potential  to  emit" and "federally-enforceable" in 40  CFR 63.2
 (promulgated March  16,  1994, 59 FR  12408 in  the part  63 General
 Provisions).   The  EPA  believes  that most State and local programs
 should have broad  capabilities  to handle the  great majority of
 situations  for which a  potential to  emit limitation on HAP  is
needed.

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     First, it is useful to note that the definition of potential
to emit for the Federal air toxics program  (see the subpart A
"general provisions," section 63.2) considers, for purposes of
controlling HAP emissions, federally-enforceable limitations on
criteria pollutant emissions if "the effect such limitations
would have on "[hazardous air pollutant] .  .  . emissions" is
federally-enforceable  (emphasis added).  There are many examples
of such criteria pollutant emission limits that are present in
federally-enforceable State and local permits and rules.
Examples would include a limitation constraining an operation to
one  (time limit specified) shift per day or limitations that
effectively limit operations to 2000 hours per year.  Other
examples would include limitations on the amount of material
used, for example a permit limitation constraining an operation
to using no more than 100 gallons of paint per month.
Additionally, federally-enforceable permit terms that, for
example, required an incinerator to be operated and maintained at
no less than 1600 degrees would have an obvious "effect" on the
HAP present in the inlet stream.

     Another federally-enforceable way criteria pollutant
limitations affect HAP can be described as a  "nested" HAP limit
within a permit containing conditions limiting criteria
pollutants.  For example, the particular VOC's within a given
operation may include toluene and xylene, which are also HAP.  If
the VOC-limiting permit has established limitations on the amount
of toluene and xylene used as the means to reduce VOC, those
limitations would have an obvious "effect" on HAP as well.

     In cases as described above,  the "ef-fect" of criteria
pollutant limits will be straightforward.  In other cases,
information may be needed on the nature of the HAP stream
present.  For example, a limit on VOC that ensured total VOC's of
20 tons per year may not ensure that each HAP present is less
than 10 tons per year without further investigation.  While the
EPA intends to develop further technical guidance on situations
for which additional permit terms and conditions may be needed to
ensure that the "effect" is enforceable as a practical matter,
the EPA intends to rely on State and local agencies to employ
care in drafting enforceable requirements which recognize obvious
environmental and health concerns.

     There are,  of course, a few important pollutants which are
HAP but are not criteria pollutants.  Example of these would
include methylene chloride and other pollutants which are
considered nonreactive and therefore exempt from coverage as
VOC's.  Especially in cases where such pollutants are the only
pollutants present, criteria pollutant emission limitations may
not be sufficient to limit HAP.  For such cases, the State or
local agency will need to seek program approval under section
112 (1) of the Act.

     Section 112(1) provides a clear mechanism for approval of
State and local air toxics programs for purposes of establishing
HAP-specific PTE limits.  The EPA intends,  where appropriate,

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 that  in approving permitting programs  into  the  SIP,  to  add
 appropriate language  citing approval pursuant to  section  112(1)
 as well.  An example  illustrating section 112(1)  approval is  the
 approval of the  State of  Ohio's program  for limiting potential to
 emit  (see 59 FR  53587, October 25,  1994).   In this notice,  EPA
 granted approval under section 112(1)  for hazardous  air
 pollutants aspects of a State program  for limiting potential  to
 emit.  Such language  can  be added to any federally-enforceable
 State operating  permit program, exclusionary rule, or NSR program
 update SIP approval notice so long  as  the State or local  program
 has the authority to  regulate HAP and  meets other section 112(1)
 approval criteria.  Transition issues  related to  such
 section 112(1) approvals  are discussed below.

 Determination of Maximum  Capacity

     While EPA and States have been calculating potential to  emit
 for a number of  years, EPA believes that it is  important  at this
 time  to provide  some  clarification  on  what  is meant  in  the
 definition of potential to emit by  the "maximum capacity  of a
 stationary source to  emit under its physical and  operational
 design."  Clearly, there  are sources for which  inherent physical
 limitations for  the operation restrict the  potential emissions of
 individual emission units.  Where such inherent limitations can
 be documented by a source and confirmed by  the  permitting agency,
 EPA believes that States  have the authority to  make  such
 judgements and factor them into estimates of a  stationary
 source's potential to emit.

     The EPA believes that the most straightforward  examples  of
 such  inherent limitations is for single-emission  unit type
 operations.  For example, EPA does  not believe  that  the "maximum
 capacity" language requires that owner of a paint spray booth at
 a small auto body shop must assume  that  (even if  the source could
 be in operation year-round) spray equipment is  operated 8760
 hours per year in cases where there are inherent  physical
 limitations on the number of cars that can  be painted within  any
 given period of time.  For larger sources involving multiple
 emissions units and complex operations, EPA believes it can be
 more problematic to identify the inherent limitations that may
 exist.

     The EPA intends,  within its resource constraints,  to issue
 technical assistance  in this area by providing  information on the
 type of operational limits that may be considered acceptable  to
 limit the potential to emit for certain individual small  source
 categories.

 Transition Guidance for Section 112 and Title V Applicability

     Most,  if not all, States have  recognized the need  to develop
 options for limiting  the potential  emissions of sources and are
moving forward with one or more of  the strategies described in
 the preceding sections in conjunction with  the  submission and
 implementation of their part 70 permit programs.  However, EPA is

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                                8

aware of the concern of States and sources that title V or
section 112 implementation will move ahead of the development and
implementation of these options, leaving sources with actual
emissions clearly below the major source thresholds potentially
subject to part 70 and other major source requirements.  Gaps
could theoretically occur during the time period it takes for a
State program to be designed and administratively adopted by the
State, approved into the SIP by EPA, and implemented as needed to
cover individual sources.

     The EPA is committed to aiding all States in developing and
implementing adequate, streamlined, and cost-effective vehicles
for creating federally-enforceable limits on a source's potential
emissions by the time that section 112 or title V requirements
become effective.  To help bridge any gaps,  EPA will expedite its
reviews of State exclusionary rules and operating permit rules
by, among other things, coordinating the approval of these rules
with the approval of the State's part 70 program and by using
expeditious approval approaches such as "direct final" Federal
Register notices to ensure that approval of these programs does
not lag behind approval of the part 70 program.

     In addition, in such approval notices EPA will affirm any
limits established under the State's program since its adoption
by the State but prior to Federal approval if such limits were
established in accordance with the procedures and requirements of
the approved program.  An example of language affirming such
limits was recently used in approving an Illinois SIP revision
(see 57 FR 59931, included as Attachment 5).

     The EPA remains concerned that even with expedited approvals
and other strategies, sources may face gaps in the ability to
acquire federally-enforceable potential to emit limits due to
delays in State adoption or EPA approval of programs or in their
implementation.  In order to ensure that such gaps do not create
adverse consequences for States or for sources, EPA is announcing
a transition policy for a period up to two years from the date of
this memorandum.  The EPA intends to make this transition policy
available at the discretion of the State or local agency to the
extent there are sources which the State believes can benefit
from such a transition policy.  The transition period will extend
from now until the gaps in program implementation are filled, but
no later than January 1997.  Today's guidance, which EPA intends
to codify through a notice and comment rulemaking, provides
States discretion to use the following options for satisfying
potential to emit requirements during this transition period.

     1.  Sources maintaining emissions below 50 percent of all
applicable major source requirements.  For sources that typically
and consistently maintain emissions significantly.below major
source levels, relatively few benefits would be gained by making
such sources subject to major source requirements under the Act.
For this reason, many States are developing exclusionary rules
and general permits to create simple, streamlined means to ensure
that these sources are not considered major sources.  To ease the

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burden on States'  implementation of  title V, and  to  ensure  that
delays in EPA's  approval  of  these types  of programs  will not
cause an administrative burden on the  States, EPA is providing a
2-year transition  period  for sources that maintain their actual
emissions, for every  consecutive 12-month period  (beginning with
the 12 months  immediately preceding  the  date of this memorandum) ,
at levels that do  not exceed 50 percent  of any and all of the
major stationary source thresholds applicable to  that source.  A
source that exceeds the 50 percent threshold, without complying
with major source  requirements of the  Act  (or without otherwise
limiting its potential to emit),  could be subject to enforcement.
For this 2-year  period, such sources (i.e., those emitting  under
the 50 percent threshold)  would not  be treated as major sources
and would not  be required to obtain  a  permit that limits their
potential to emit.  To qualify under this transition policy,
sources must maintain adequate records on site to demonstrate
that emissions are maintained below  these thresholds for the
entire transition  period.  Consistent  with the California
approach, EPA  believes it is appropriate for the  amount of
recordkeeping  to vary according to the level of emissions  (see
paragraphs 1.2 and 4.2 of the attached rule).

     2.  Larger  sources with State limits.  For the  2-year
transition period, restrictions contained in State permits  issued
to sources above the  50 percent threshold would be treated  by EPA
as acceptable  limits  on potential to emit, provided:  (a) the
permit is enforceable as  a practical matter; (b)  the source owner
submits a written  certification to EPA that it will  comply  with
the limits as  a  restriction  on its potential to emit; and  (c) the
source owner,  in the  certification,  accepts Federal  and citizen
enforcement of the limits  (this is appropriate jiven that the
limits are being taken to avoid otherwise applicable Federal
requirements).   Such  limits  will  be  valid for purposes of
limiting potential to emit from the  date the certification  is
received by EPA  until  the  end of  the transition period.   States
interested in  making  use  of  this  portion of the transition  policy
should work with their Regional Office to develop  an appropriate
certification  process.

     3.  Limits  for noncriteria HAP.   For noncriteria HAP for
which no existing  federally-approved program is available for the
creation of federally-enforceable limits, the 2-year transition
period provides  for sufficient  time  to gain approval pursuant to
section 112(1).  For  the  2-year transition period, State
restrictions on  such  noncriteria  pollutants issued to sources
with emissions above  the  50  percent  threshold would  be treated by
EPA as limiting  a  source's potential to emit,  provided that:
(a)  the restrictions  are enforceable as a practical matter;
(b)  the source owner  submits  a  written certification to EPA that
it will comply with the limits  as  a  restriction on its potential
to emit;  and (c)  the  source  owner, in  the certification,  accepts
Federal and citizen enforcement of the limits.   Such limits will
be valid for purposes  of limiting  potential to -?mit  from the date
the certification  is  received by  EPA until the  ad of the
transition period.

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                                10

     The Regional Offices should send this memorandum, including
the attachments, to States within their jurisdiction.  Questions
concerning specific issues and cases should be directed to the
appropriate Regional Office.  Regional Office staff may contact
Timothy Smith of the Integrated Implementation Group at
919-541-4718, or Clara Poffenberger with the Air Enforcement
Division at 202-564-8709.

Attachments

cc:  Air Branch Chief,  Region I-X
     Regional Counsels
     NOTE:  THE ATTACHMENTS ARE AVAILABLE ON EPA'S
     TECHNOLOGY TRANSFER NETWORK (SEE CHAPTER 8).

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          APPENDIX B.




SEMINAR OVERHEAD TRANSPARENCIES

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      FEDERAL OPERATING
       PERMITS PROGRAM
               (PART 71)

                  By:

         Valerie V. Harris
                  and
         Stephen Edgerton
           Midwest Research Institute
••W AGENDA

9:00 am
9:30
10:00
10:45
11:00
Noon
1:15 pm
1:45
2:15
2:30
3:00
3:30

Introduction
Who Needs a Permit
Gathering Information
Break
Application Forms/Examples
Lunch (on your own)
Application Forms/Examples
Permitting Options
Break
Permitting Strategies
Timing and Expectations
Questions/Answers



     INTRODUCTION



            • Purpose


            • Schedule


            • Presenters
Bf INTRODUCTION


 Title V background:

  « Cornerstone of 1990 Clean Air Act Amendments

  « All facility requirements compiled into one
    operating permit

  • Available to facility, permitting authority, and
    the public
mm INTRODUCTION


 Part 71 background:

   » Title V envisioned as State program (Part 70)


   • Part 71 implemented where Part 70 program not
    approved


   • State-specific Part 71 status
     • Why Invoked
     • Delegated or non-delegated
     • Anticipated Part 71/Part 70 transition
     • Portions of Part 70 program Incorporated Into Part 71
    SESSION I
     Who Needs a Permit
                                          Page 1

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V WHO NEEDS A PERMIT?



 • Major sources - Titles I, III, VI


 • Affected sources - Title IV


 • Solid waste incineration - section 129(e)


 • Other nonmajor sources specified by rule
W AFFECTED SOURCES -

   TITLE IV


 • Acid rain program from '90 Amendments


 • Phase I (1995) - specified electric utility units


 « Phase II (2000) - other units (including
  cogeneratlon)
m SOLID WASTE INCINERATION
   UNITS - SECTION 129(e)


 » Municipal waste Incinerators


 • Medical waste incinerators


 4 Commercial or industrial waste incinerators
 V MAJOR SOURCES



 » Hazardous air pollutants (HAPs) (Section 112)


 • Other air pollutants (Section 302)
 • Nonattainment areas/Ozone Transport Region
   (Part Dof Title I)
   MAJOR SOURCES (CONT.)
 « Based on "Potential to Emit"


 • Can include group of sources on contiguous
   properties under common control


 » Can include fugitive emissions
W MAJOR SOURCES OF HAP


 Potential to emit:

   «>10tpyof asingleHAP


   » > 25 tpy of all HAPs combined


   • Lesser quantities as established by rule


   •» For radionuclldes, established by rule
                                           Page 2

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yg MAJOR SOURCES IN
    NONATTAINMENT AREAS/OTR
    (POTENTIAL TO EMIT THRESHOLDS)

 VOC and NOX:
   • 100 tpy in Marginal and Moderate Areas
   » 50 tpy in Serious Areas and the OTR (VOC only)
   « 25 tpy in Severe Areas
   • 10 tpy in Extreme Areas

 Carbon Monoxide:
   •50 tpy in Serious Areas
    •70 tpy in Serious Areas
    MAJOR SOURCES IN
    NONATTAINMENT AREAS/OTR
   Aggregate contiguous sources under common
   control only If in same 2-diait SIC code Major
   Group
  • Fugitives included only if in 1 of 27 listed
   source categories
 m  OTHER MAJOR SOURCES •

     SECTION 302 DEFINITION

  Potential to emit > 100 tpy of "any air pollutant"

  Pollutants included:
    « voc
    » NO,
    « Criteria pollutants: PM10, SO* ozone, NO2, CO, lead
    » NSPS - regulated polutants
    » Title VI pollutants - Class I and II ozone-depleting
     substances
    • HAPs
    • Section 112(r) pollutants -toxic, flammable, and
     explosive materials regulated under the accidental
     release provisions (exempt from Title V)
    OTHER MAJOR SOURCES -
    SECTION 302 DEFINITION
  • Aggregate contiguous sources under common
   control only if in same 2-digit SIC code Major
   Group


  • Fugitives included only if in 1 of 27 listed
   source categories
    NONMAJOR SOURCES
  Types of nonmajor sources that may require
  Title V permits in the future:

   « Sources subject to NSPS or NESHAP
     promulgated after July 21,1992 unless
     exempted in rule
   « Sources subject to other NSPS/NESHAP or to
     NSR/PSD, after rulemaking on Title V program
     for minor sources
   • Other source categories designated by EPA by
     rule
a EXCEPTIONS TO
    APPLICABILITY
 « Sources included solely because they are major
   Section 112(r) pollutant sources
   Sources included solely because they are subject to
   the NSPS for residential wood heaters (io CFR part so,
   Subpart AAA)


   Sources included solely because they are subject to
   the NESHAP for asbestos demolition and renovation
   (40 CFR 61.1451
   Oil or gas exploration or production well emissions
   and pipeline compression or pump station
   emissions not aggregated for purposes of HAP
   major source status.
                                               Page 3

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   HOW TO APPLY
 « Determine applicability
 » Contact Title V Permitting Authority for forms
   and schedules
 • Fill out application

 • Submit complete and timely application
W DETERMINE
   APPLICABILITY


 * Major sources (HAPs, NAA/OTR, other)

 • Affected sources

 • Solid waste Incinerators

 • Other sources specified by rule
   CONTACT TITLE V
   PERMITTING AUTHORITY
  Undelegated Part 71 program - EPA Regional
  Office
 • Delegated part 71 program - State/local agency

 « Approved Part 70 program - State/local agency
   STATE-SPECIFIC
   INFORMATION/CONTACTS
                                                            » To be provided during seminar
m FILL OUT APPLICATIONS
 • Emission units/emissions of "regulated

 « Applicable requirements

 « Information related to operational flexibility
  options

 « Compliance status/schedules

 « Monitoring, recordkeeping, reporting, test
  methods

 • General permit application, if applicable

 « Certification by a "responsible official"
M SUBMIT COMPLETE
   APPLICATION

 • Must include:
   • Information "sufficient to evaluate the source and Its
     application and to determine all applicable
     requirements'
   • Fee calculation and remittance
   • Additional Information as requested by the permitting
     authority

 • Must supplement or correct application upon
  becoming aware of need
                                            Page 4

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    SUBMIT TIMELY
    APPLICATION
  • Generally due within 12 months after source
   becomes subject to Title V program
   For some sources (with advance notice), may
   be due within 6 months
  • "Application Shield" applies only from date
   deemed or determined complete
   STATE-SPECIFIC INFORMATION
   ON SUBMITTAL TIMEFRAME
                                                         « To be provided during seminar
U APPLICATION SHIELD
    CONSIDERATIONS
 «• Source can operate after due date only if
  application has been deemed or determined
  complete

 • Deemed complete if no action within 60 days
 • Should consider time needed:
   • For permitting authority to review Initial application
    (up to 60 days)
   • To generate and submit any additional Information
    requested
   • For permitting authority to review additional
    Information
   SESSION H
    Gathering Information
 m EMISSION INVENTORY
    FOR PERMITTING


  • Gathering of information

  • A preview of the permit application

  • Final calculations and totals will drive the
   permitting process
m SESSION OUTLINE



 • Collecting data for all emission points

 • Applying estimation techniques

 • Sources of information

 • Critical concerns

 • Examples and documentation
                                          Page 5

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     COLLECTING DATA
   • Identify all emission points
    (Nothing is too small)

   • Include all regulated air pollutants
 M TYPES OF EMISSION POINTS


 • Anything that releases emissions

    • Process ducts/stacks

    • Fugitive emission sources

    • Process fugitive emissions

    • Controlled and uncontrolled emissions
      TYPES OF EMISSION
      POINTS (CONT.)

    Examples
     • Fuel storage and handling
     • Solvent storage and usage
     • Chemical processes
     • Power/heat generation
     • Material storage piles
     • Wastewater treatment
     • Leaks from valves, lines, etc.
     - Material loading/unloading
 f TYPES OF POLLUTANTS


  » Participate matter and PM1(

  • NO., SO,, CO, Lead, VOC

  « Individual HAP's (from HAP list)

  • Other regulated air pollutants
•f DESIGN AND OPERATING
    PATTERNS

 For each point: How much?
   • Definition/type of emission point
   • Capacity/rating;  hours of operation
   • Usage/throughput rate
   • Definition of cycles (if batch)
   • Control equipment/efficiency
     • Maximum and Actual Values
     • Define Variations
     • Hourtv and Annual Basis
QT OTHER POINT SPECIFIC
   INFORMATION

 » Chemical content of materials

 » Btu, sulfur content of fuels
 » Additional specific information for emission
  factor modeling of tanks and wastewater
  treatment
                                             Page6

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 W ADDITIONAL
    SETTING/MODELING
    INFORMATION
  • SIC codes/SCC codes

  » Location (UTM coordinates)

  » Stack data
    • Release height
    • Exit temperature
    • Exit flow or velocity
    • Stack diameter
  • Plant layout
 W ADDITIONAL
    SETTING/MODELING
    INFORMATION (CONT.)

 » Building diagrams and data
    • Height, length, width
    • Base elevation
    • Location of other structures

 • Community setting
    (Map with nearest school, hospital, etc.)

 » Basic process flow diagrams
    (Blocks with Input/outputs)
 m EMISSION ESTIMATION
    METHODS

  • Measured emissions data

  • Emission factors

  » Mass balance

  « Engineering calculations
If ACCESS TO EMISSION
    FACTORS
 • EPA Technology Transfer Network (TTN)

 « TTN access to CHIEF (Clearinghouse for
   Inventories and Emission Factors) and EMTIC
   (Emission Measurement Information Center)

 » TTN: (919) 541-5742

 • System Operator: (919) 541-5384

 » Also CHIEF CD-ROM
U EMISSION FACTOR
   SOURCES

 • AP-42 (primary reference)
 • SPECIATE
 » XATEF (Crosswalk)
 • TANKS model
 • SIMS (Surface Impoundment Modeling System)
 » LANDFILL
 • Locating and estimating air emissions series
 • Others
   CALCULATE TOTALS
 • Average emissions

 • Potential to emit
    • 8,780 hours/year
    • Maximum production rate
    • Worst polluting fuel, raw material, or media
    • Uncontrolled
                                            Page 7

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V CRITICAL CONCERNS



 • Quality of data


 • Potential to emit vs. emission thresholds


 » Other pertinent regulations

 » Future expansion or operational changes


 • Fee determination
   NOTE ON FLEXIBILITY
 « EPA's "White Paper" (July 10,1996) offers
  flexibility in emissions quantification
    ' Use of least costly estimation method


     Use of available Information should suffice
   KEY STEPS
 • Propose compliance program, If necessary


 • Develop permit application
   (with plan of attack)
V CALCULATIONS: ACTUAL
   ANNUAL EMSSIONS FROM TWO
   INDUSTRIAL-SIZE BOILERS

 1. Determine fuel/product usage consumption -
   natural gas and fuel oil


   Boiler #1 • fuel type = natural gas
     (Quantity consumed, calendar yew • 40 x 10ft3)

   Boiler #2 - fuel type = distillate fuel oil
     (Quantity consumed, calendar year - 16,000 gal)

 2. Control equipment - none
   CALCULATIONS (CONT.)
3.  Obtain appropriate/applicable emission factor.

     In this case, Sections on Fuel Oil
   Combustion and Natural Gas Combusion from
   EPA's AP-42 contain appropriate emission
   factors for boilers of this size.
     The SPECIATE database will also be used to
   speciate emissions of VOCs and HAPs from
   boiler #1.
     Speciation of VOC and HAP emissions from
   boiler #2 will be quantified using both
   SPECIATE and an independent chemical
   analysis of the distillate oil used.
   CALCULATE (CONT.)
  Calculations. Tables 1 and 2 display
  uncontrolled emission factors for combustion of
  natural gas and fuel oil, respectively. Emissions
  from the boilers can be calculated as follows:
                 E = ec


  E * Annual emission rate (Ib pollutant/yr)
  e « Emission factor (Ib pollutant/quantity of fuel consumed)
  c * Annual fuel consumption (l.e. 103 gal/yr, 10*ft3/yr)
                                               PageS

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    TABLE 1
 AP-42 Emission Factors for Uncontrolled Domestic
   and Commercial Boilers (<10 x 10' Btu/hr input)
          for Natural Gas Combustion
 Participate:
 Sulfur Dioxide:
 Nitrogen Oxides:
 Carbon Monoxide:
 Volatile Organics:
     1-5 lb/106 ft3
     0.6 lb/101 ft3
     IOOIb/10'ft3
     20 lb/101 ft3
     Nonmethane: 5.3 lb/10* ft3
     Methane: 2.7 lb/10" ft3
                                              CRITERIA POLLUTANT
                                              EMISSIONS: BOILER #1
                                                            Particulate/PM10 Emissions
                                                             E « 5 Ib PM^IOft3** x 40 x 10«tt»/yr « 200 Ib PM,/yr
SOX Emissions
  E - 0.6 Ib SO/IOft3 x 40 x 10«fP/yr - 24 Ib SOJyr
                                                                "Factor chosen to yield worst case scenario
    CRITERIA: BOILER #1
    (CONT.)
 NOx Emissions
   E -100 Ib N natural gas
                                                 consumed/yr
                                               = 320 Ib VOC/yr
                                                            "Total VOCs calculated from the combination of both
                                                              nonmethane and methane emission factors
   TABLE 2
   AP-42 Emission Factors for Uncontrolled
       Distillate OH Commercial Boilers
Particulate:

Sulfur Dioxide:
2 lb/10* gal

142 x (wt % of sulfur in oil)
lb/103 gal
Nitrogen Oxides:    20 lb/103 gal

Carbon Monoxide:   5 lb/103 gal

Volatile Oroanics:   Nonmethane 0.34 lb/103 gal
                 Methane 0.216 lb/10' gal
                                             CRITERIA POLLUTANT
                                             EMISSIONS: BOILER #2
Particulate/PM10 Emissions
  E > 2 Ib PM1t/103 gal x 15 x 103gal/yr - 30 Ib PM1(/yr
                                           SOX Emissions
                                             E - (142 x 0.5%) Ib SO/IO3 gal x 15 x 103gal/yr
                                              ' 1,060lbSOx/yr
                                             Page 9

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       CRITERIA: BOILER #2
       (CONT.)
     NO, Emissions
       E - 20 Ib N gal x 15 x 10'gal/yr - 300 Ib HOJyr
     CO Emissions
       E - 5 Ib CO/101 gal x 15 x 10»gal/yr - 75 Ib CO/yr
   CRITERIA: BOILER #2
   (CONT.)
 VOC Emissions
    E - 0.6H Ib VOC/10* gal x 16 x 10>gal/yr - 8 Ib VOOyr
•V VOC PROFILE SPECIATION

       REPORT

 Profile Name:    External Combustion Boiler - Natural Gas
 Control Device:   Uncontrolled
 Data Source:    Information based on stack sample for natural
             gas analyzed by GC/MS
 SCC As*lgnm*n1»: 1*1 MM1,1«»W1,1I3MM1,1ISM1M, 1C5M2M, 9fffMU, MtMtli
    SAROM CAS NO
                               SKC MM  SPEC II
                 BOMBUOPHCXANE
                 MiTHWE
                 PROTANE
                 14-BUTAttl
                                 0410
                                 MM
                                 7011
                                 •213
   SPECIATED EMISSIONS:
   BOILER #1
ISOMERS OF HEXANE"

 E « 320 Ib VOC/yr x 1% by weight Isomars of haxana

   • 3.2 Ib isorrmrs of h«xan«/yr.
                                                           -Regulated as a HAP under the Clean Air Act Amendments
     r SPECIATED EMISSIONS:

       BOILER #1  (CONT.)



      FORMALDEHYDE-

        E « 320 Ib VOC/yr x 8% by weight formaldehyde

         - 26 Ib formaldehyde/yr.
     —Regulated a« a HAP under the Clean Air Act Amendments
   SPECIATED EMISSIONS:

   BOILER #1 (CONT.)


   BENZENE-
      E - 320 Ib VOC/yr x 4% by weight benzene
       • 13 Ib benzene/yr.

   TOLUENE—
      E - 320 Ib VOC/yr X 2% by weight toluene
       - 6 Ib toluene/yr.
                                                            —Regulated as a HAP under the Clean Air Act Amendments
                                              Page 10

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BV VOC PROFILE SPECIATION

      REPORT

 Control Device:  Uncontrolled

 Data Source:   Information based on stack sample for residual oH
            analyzed by GC/MS.
 SCC Assignees: 10100501.10200S01.10300501.10SQ0205. 3MM001. 39990011
    SAROAD  CAS NO	NAME	SPEC MW   SPEC m  	
   43106
   4310S
   43-wr
   43122
ISOMERS OF HEXANE
ISOMERS OF HEPTANE
ISOMERS OF OCTANE
ISOMERS OF PENTANE
PROPANE
N-BUTANE
BO-BUTANE
100-20
114.23
7215
                  HEXANE
                  HEPTANE
                  FORMALDEHYDE
V  SPECIATED EMISSIONS:
    BOILER #2
    (USING SPECIATE DATABASE)


 ISOMERS OF HEXANE—

    E - 8 Ib VOC/yr x 5.2% by weight Isomers of hexane

     • 0.4 Ib Isomers of hexane/yr.
                                                                 •"Regulated as a HAP under the Clean Air Act Amendments
      SPECIATED EMISSIONS:
      BOILER #2 (CONT.)
     HEXANE***

       E • 8 Ib VOC/yr x 10.8% by weight hexane

         = 1 Ib hexane/yr.





    "Regulated as a HAP under the Clean Air Act Amendments
                                                I  SPECIATED EMISSIONS:
                                                   BOILER #2 (CONT.)



                                                 FORMALDEHYDE™

                                                    E * 8 Ib VOC/yr x 48.7% by weight formaldehyde

                                                     * 4 Ib formaldehyde/yr.
                                                "Regulated as a HAP under the Clean Air Act Amendments
 •f SPECIATED EMISSIONS:
      BOILER #2
      (USING FUEL ANALYSIS RESULTS)

  • METAL, CHLORINE, AND SULFUR EMISSIONS
     • Annual dlesel throughput • 15,000 gal
     • 15,000 gal x 7.1 Ib/gal - 0.108500 x 10« Ib/yr
     • Metal, chlorine, and sulfur emissions
   Chlorine          <8 ppm  x .1065 x 10'/yr - 0.9 Ib/yr
   Sulfur            426 ppm x  1065 x 10«/yr - 45 Ib/yr
   Chloride          <8 ppm  x .1065 x 10'/yr - 0.9 Ib/yr
   Total organic chlorine <8 ppm  x .1065 x 10'/yr - 0.9 Ib/yr
   Silver            <1 ppm  x .1065 x lO'/yr - 0.1 Ib/yr
   Arsenic           <5 ppm  x .1065 x 10c/yr •* 0.5 Ib/yr
   Beryllium          <1 ppm  x .1065 x 10'/yr - 0.1 Ib/yr
mOU SPECIATED EMISSIONS:
BOILER #2 (CONT.)

Cadmium
Chromium
Copper
Mercury
Nickel
Lead
Selenium
Manganese
Zinc
lote: ppm *
<1 ppm x .1065 x 10*/yr
<12ppm x .1065 x 10"/yr
12 ppm x .1085 x Mflyr

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  SESSION m


    Application Forms
       and Examples
   NOTE REGARDING
   SESSION m
 • This session will consist of a discussion of
  actual application forms
  SESSION IV
    Permitting Options
mSPECIAL
   OPTIONS/DECISIONS


 • Synthetic minor sources

 • Insignificant and exempt emissions units

 • Monitoring, recordkeeplng, and reporting

 • Adding emission controls
  SYNTHETIC MINOR
  SOURCES
Potential to emit means the maximum capacity of
a stationary source to emit any air pollutant under
its physical and operational design.
   SYNTHETIC MINOR
   SOURCES (CONT.)
 Any physical or operational limitation on the
 capacity of a source to emit an air pollutant,
 including air pollution control equipment and
 restrictions on hours of operation, or on the
 type/amount of material combusted, stored, or
 processed, shall be treated as part of Its design if
 the limitation Is enforceable by the Administrator
 (subject to change, due to recent court
 decisions).
                                      Page 12

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IV SYNTHETIC MINOR

   SOURCES (CONT.)


 In other words, PTE assumes:


     • 24 hour/day, 385 day/year operation


     * Worst-case emissions
        • Maximum process rate
        • Dirtiest fuel or raw materials

     • Does not Include any emission controls


     • Does Include enforceable emission If m fiat Ions
  W SYNTHETIC MINOR

     SOURCES (CONT.)



   Address sources with:

     • Potential to emit above major source threshold(s)

     • Actual emissions below major source threshold(s)
   SYNTHETIC MINOR
   SOURCES (CONT.)
 Created by accepting enforceable emission
  limitations:
    • Limit hours of operation


    • Limit production


    • Limit material use


    • Install emission control equipment/define minimum
     control efficiency
     SYNTHETIC MINOR
     SOURCES (CONT.)

    Federally-enforceable State operating permit
    programs (FESOPs)
   » Limits established by rules ("exclusionary" or
    "prohibitory")
   • General permits


   • Preconstruction permit programs (NSR)


   • Source-specific SIP revision
   STATE-SPECIFIC
   INFORMATION ON SYNTHETIC
   MINOR PROGRAMS
   » To be presented during seminar
BV SYNTHETIC MINOR
     SOURCES (CONT.)

 EPA transitional guidance (good until January 1997)
                                                          • Sources with actuals < 50% of major source
                                                            thresholds
                                                             • Maintain actual emissions at these levels for each
                                                              rolling 12-month period (beginning January 1994)


                                                             • Maintain records on site
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     SYNTHETIC MINOR
     SOURCES (CONT.)
   • Sources with actuals > 50% of major source
     thresholds
      1 Use limitations on State permits, If permit Is
       enforceable as a practical matter
  W INSIGNIFICANT AND
     EXEMPT EMISSION UNITS

   • Insignificant activities

   • Trivial activities (White Paper)

   • Insignificant emission levels

   » Exempt emissions units

     Notes: (1) WIN be some changes to Part 71
         (2) May be some State-specific provisions thai
  	supersede Part 71
•V INSIGNIFICANT AND EXEMPT
     EMISSIONS UNITS (CONT.)


 Insignificant activities under Part 71:

    • Comfort air-conditioning units (not subject
     to Title VI)

    • Comfort ventilating units

    • Comfort heating units

    «• Noncommercial food preparation
     INSIGNIFICANT AND EXEMPT
     EMISSIONS UNITS (CONT.)
   • Consumer use of office equipment and
    products

   • Janitorial services and consumer use of
    janitorial products

   • Internal combustion engines used for
    landscaping purposes

   • Mobile sources
     INSIGNIFICANT AND EXEMPT
     EMISSIONS UNITS (CONT.)
   • Insignificant activities under State Part 70
    program:
       If the State'* lift differ* from Part 71, EPA
       will eomlder adding actfvfUe* to smooth
       the ultimate trantltlon to the Part 70
•f INSIGNIFICANT AND EXEMPT
     EMISSIONS UNITS (CONT.)


 Insignificant emission levels under Part 71:

  • Levels for regulated air pollutants, except HAPs
      • PTE for single emissions units < 2 tpy

  • Levels for HAPs
      • PTE for single emissions unit < 1,000 Ib/yr of any HAP
                                            Page 14

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    INSIGNIFICANT AND EXEMPT
    EMISSIONS UNITS (CONT.)


    Trivial activities from the "White Paper:"
       List of S3 types of activities and
       emission* units that may be
       presumptively omitted from permit
       applications even If not Included on the
       list of Insignificant activities.
 m EXCLUSION OF "TRIVIAL"

    ACTIVITIES


  • List in "White Paper" Attachment A


   Examples:

    • Janitorial services

    • Tobacco smoking rooms and areas

    • Steam vents
  m INSIGNIFICANT AND EXEMPT
    EMISSIONS UNITS (CONT.)



   Exempt emissions units:

        • "Grandfathered" units

        • Units below size thresholds

        • Other exemptions
Bff INSIGNIFICANT AND EXEMPT
     EMISSIONS UNITS (CONT.)

 Application treatment:

   • Insianificant and trivial activities - not included
    in application


   • Insignificant emission levels - identify
    emissions units and indicate that exemption
    applies


   • Exempt emissions units - explain exemption
    from applicable requirements; provide all other
    data
Bf INSIGNIFICANT AND EXEMPT
     EMISSIONS UNITS (CONT.)

 Must supply additional information if needed to
 determine:

   • Applicability of any applicable requirement

   • Whether a source is major

   • Whether a source needs a Part 71 permit

   • Fee
  m MONITORING,
     RECORDKEEPING, AND
     REPORTING

   • Emissions units with monitoring required by
    underlying applicable requirements

   • Emissions units requiring "periodic
    monitoring"
   • Emissions units requiring other reporting/
    documentation
                                                            Note: CAM rule developments likely to apply.
                                             Page 15

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•T MONITORING,
    RECORDKEEPING, AND
    REPORTING (CONT.)


 • Monitoring required by applicable requirements:

   • Specified In standard - NSPS, NESHAP, SIP, etc.

   • Specified by preconstructlon permit - NSR, PSD

   • Other
Jg MONITORING,
   RECORDKEEPING, AND
   REPORTING (CONT.)

 » "Periodic monitoring" required for other
  emissions units - CAM Rule

   • Emissions monitoring

   • Parameter monitoring - process or control device

   • Trigger O & M activities
 M MONITORING,
    RECORDKEEPING, AND
    REPORTING (CONT.)

  Recordkeeplng requirements:

    • Per applicable requirements

    • Per periodic monitoring requirements

    • Records retained for 5 years
If MONITORING,
   RECORDKEEPING, AND
   REPORTING (CONT.)


 Reporting requirements:

   • Per applicable requirements

   • Every 8 months (or less)
                                                        • Prompt reporting of deviations from permit
                                                         requirements
   ADDING EMISSION
   CONTROLS
  « May be required for new or future MACT
   standards
  « Voluntary controls to reduce PTE
   SESSION V
   Permitting Strategies
                                        Page 16

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 I OPERATIONAL FLEXIBILITY


  • Remain competitive

  » Adjust to changing market

  » Minimize permit revisions
m REALITIES OF PERMIT
   REVISIONS

 • Reopen files

 • Possible public notice

 • Wait for approval
m ISSUES FOR OPERATIONAL
   FLEXIBILITY

 • Variations in product/operations

 • Increased production rates

 • Other
m OPTIONS

 » Alternative operating scenarios

 « Maximize potential to emit

 • Emission caps

 • Emission trading

 « Off permit changes
V ALTERNATIVE OPERATING
   SCENARIOS

 • Include in original permit application

 • Different fuels, solvents

 • Different operating modes

 » Worst case scenario
m MAXIMUM POTENTIAL
   TO EMIT
 • Maximize production

 • Maximize hours of operation

 • Minimize efficiency of control equipment

 • Most hazardous chemicals

 • Worst case scenario

  (But, avoid NSR, PSD, etc., limits!)
                                       Page 17

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   EMISSION CAPS
 • Maximum for facility or subset of facility


 • Be prepared for:
   • Recordkeeplng
   • Limits
   • "Llke-for-llk«" HAPs
W EMISSION TRADING



 » Between one company's facilities, or

 • Open market
W INTEL, OREGON EXAMPLE



 » Semiconductor industry as a fast changing
  Industry


 « Pollution prevention goals


 • Grouping of non-boiler sources for a VOC cap


 • Permit viewed by many as an example to follow
   SESSION VI
         Timing and
        Expectations
  NOTES REGARDING
  SESSION VI
 • This session will consist of a last minute
  update of the status of the Part 71 program


 • The latest decisions on implementation
  expectations and submittal timelines will be
  discussed
  SESSION VH
    Questions/Answers
                                      Page 18

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