NPDES Permit Quality Review

Final

Region 8 NPDES Permit Quality Review

Montana

APR 6 3 2013

March, 2018

U.S. Environmental Protection Agency, Region 8
Wastewater Unit (8WP-CWW)
1595 Wynkoop Street
Denver, CO 80202-1129

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Contents

I.	PQR BACKGROUND 																		4

II.	STATE PROGRAM BACKGROUND								...............5

A.	Program Structure											5

B.	Universe and Permit Issuance.........................................										 6

C.	State-Specific Challenges 												12

D.	Current State Initiatives 												13

III.	CORE REVIEW FINDINGS 										...14

A.	Basic Facility Information and Permit Application								14

1.	Facility Information 											 14

2.	Permit Application Requirements....									14

B.	Technology-based Effluent Limitations						15

1.	TBELs for POTWs 								16

2.	TBELs for Non-POTW Dischargers................								 16

C.	Water Quality-Based Effluent Limitations 						17

D.	Monitoring and Reporting...................................								 18

E.	Standard and Special Conditions............										 20

F.	Administrative Process									 22

G.	Administrative Record...							23

1. Documentation of Effluent Limitations.........................					...................... 24

H.	National Topic Areas 														26

1.	Nutrients										26

2.	Pesticides																				27

3.	Pretreatment...																					30

4.	Stormwater									34

IV.	REGIONAL TOPIC AREA FINDINGS....											.38

A.	Reasonable Potential Analysis 											 38

B.	Mixing Zones 										39

V.	ACTION ITEMS.............................................							....41

A.	Basic Facility Information and Permit Application..............			41

B.	Technology-based Effluent Limitations							42

C.	Water Quality-Based Effluent Limitations 						42

D.	Monitoring and Reporting.............											42

E.	Standard and Special Conditions..							43

F.	Administrative Process (including public notice)								43

G.	Documentation (including fact sheet)										 44

H.	National Topic Areas 										44

1.	Nutrients....														 44

2.	Pesticides												45

3.	Pretreatment																	45

4.	Stormwater									46

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I. Regional Topic Areas	46

1.	Reasonable Potential Analysis	46

2.	Mixing Zones					47

Appendix A - Permits Reviewed for the 2016 Montana PQR									48

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I. PQR BACKGROUND

National Pollutant Discharge Elimination System (NPDES) Permit Quality Reviews (PQRsj are an
evaluation of a select set of NPDES permits to determine whether permits are developed in a
manner consistent with applicable requirements established in the Clean Water Act (CWA) and
NPDES regulations. The Environmental Protection Agency's (EPA) goal is to conduct a PQR for
each state approximately once every five years. Through this review mechanism, EPA promotes
national consistency, and identifies successes in implementation of the NPDES program and
identifies opportunities for improvement in the development of NPDES permits.

EPA's review team, consisting of three EPA Region 8 staff conducted a review of the Montana
NPDES permitting program, which included an on-site visit to the Montana Department of
Environmental Quality (DEQ) in Helena on October 17 through October 19, 2016. The EPA
reviewers were Lisa Kusnierz (lead) and David Rise. Amy Clark, also with EPA Region 8,
conducted the stormwater-focused part of the review. Because the Pretreatment Program is
directly implemented by EPA Region 8 in Montana, staff from EPA Headquarters conducted a
desktop evaluation of EPA's implementation of the Pretreatment requirements.

The Montana PQR consisted of two components: permit reviews and special focus area
reviews. The permit reviews focused on core permit quality and included a review of the permit
application, permit, fact sheet, and any correspondence, reports or documents that provide the
basis for the development of the permit conditions.

The core permit review involved the evaluation of selected permits and supporting materials
using basic NPDES program criteria. Reviewers completed the core review by examining
selected permits and supporting documentation, assessing these materials using standard PQR
tools, and talking with permit writers regarding the permit development process. The core
review focused on the Central Tenets of the NPDES Permitting program to evaluate the
Montana NPDES program. In addition, discussions between EPA and state staff addressed a
range of topics including program status, the permitting process, responsibilities, organization,
and staffing. Core topic area permit reviews are conducted to evaluate similar issues or types of
permits in all states. The national core topics reviewed in the Montana NPDES program were
nutrients, pesticide general permit, pretreatment, and stormwater.

Regional topic area reviews target regionally-specific permit types or particular aspects of
permits. The regional topic areas selected by EPA Region 8 were reasonable potential and
mixing zones. These reviews provide important information on specific program areas to
Montana, EPA Region 8, EPA Headquarters, and the public.

A total of 15 permits were reviewed as part of the PQR (see Appendix A). Of these, four were
general permits reviewed against a programmatic checklist (i.e., Pesticide, Industrial
Stormwater, Construction Stormwater, and Municipal Separate Sewer System (MS4)) and 11
were individual permits that were reviewed against a core topic checklist and for regional topic
areas. Permits were selected based on issuance within the previous two years, the review
categories that they fulfilled, and Montana's permit universe (i.e. percentage of Publically-
owned Treatment Works (POTWs) vs. non-POTWs).

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II.

DEQ administers the Montana Pollutant Discharge Elimination System (MPDES) program. The
EPA authorized Montana to administer the MPDES program in 1974 with subsequent
authorization to issue federal facilities permits and general permits in 1981 and 1983,
respectively. DEQ. did not seek the authority to implement the biosolids and pretreatment
programs.

The MPDES program is housed at DEQ's main office in Helena where it has a section supervisor,
7 full-time permit writers, and 1 part-time permit writer in the Permitting Section. One
additional permit writer, who writes all MPDES permits for coal mines, is located in another
building in Helena and works in the Coal and Open Cut Mining Bureau or the Air, Energy and
Mining Division. Five MPDES compliance inspectors are dispersed regionally, two are in Heiena,
and Bozeman, Billings and Missoula each have one inspector. Data and support services are
provided by three data technicians in the Information Management and Technical Services
Section and two administrative assistants.

In 2016, DEQ reorganized its water program staff, moving them into the newly created Water
Quality Division. This change brought together the MPDES permitting program with other water
programs that were previously in a separate division. The Water Protection Bureau within the
Water Quality Division contains the MPDES Permitting, Watershed Protection, Ground Source
Water & 318/401 and Compliance, Training & Technical Assistance Sections as shown in the
below DEQ organizational chart.

DEQ maintains hard copy files for current permits on-site and retains older documentation and
the original permits and applications at an offsite archive. DEQ's primary data tool associated
with permitting is the EPA's Integrated Compliance Information System (ICIS), which provides
electronic tracking of permit and compliance monitoring data. Information in ICIS is available to
the public through the web-based tool Enforcement and Compliance History Online (ECHO).
Permit writers can access water quality data from EQulS Water Quality Exchange database (MT-

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eWQX), an in-house data management system for storing water quality monitoring data and
exporting it to STORET. DEQ permit writers typically obtain 303(d) listings from the Clean Water
Act Information Center (CWAIC), a DEQ website which contains Montana's Water Quality
Integrated Reports (305b and 303d) and beneficial use determinations and supporting
information. Montana adopts standards for different water quality parameters into circulars;
permit writers refer to Circular DEQ-12 for numeric nutrient criteria and Circular DEQ-7 for all
other numeric criteria. DEQ also maintains an online Geographic Information System (GIS) tool
for mapping monitoring locations and gauging stations.

Since the 2010 PQR, the MPDES permit program has had a high rate of staff turnover. However,
the section is currently fully staffed. Training for new staff is a combination of mentoring by a
senior permit writer, group topic discussions, and the EPA Permit Writer Course as needed and
available. The MPDES program has fact sheet and permit templates for POTWs and industrial
facilities, and letter templates for permitting actions. DEQ says their current templates are
outdated and in the process of being updated to reflect regulatory changes. Once a permit is
drafted, the fact sheet or statement of basis is peer reviewed by one or two staff. Then, the
entire permit package is reviewed by the section supervisor, who flags any items of concern or
special emphasis for the bureau chief review.

DEQ maintains a paper file with copies of the effective permit and its supporting
documentation in a file room at the Metcalf Building that is accessible to the public. Historical
permit records and the original administrative record documents for the effective permit are
archived at a separate location offsite. DEQ also stores a completeness review, the public
notice, and final determination files electronically on an internal network drive. Final permits
but not fact sheets/statement of bases are posted on the DEQ website.

Based on an ICIS query conducted in November 2016, Montana has approximately 1,137
effective MPDES permits. Only 142 of those are individual permits, with 33 issued to major
facilities and 109 issued to minor facilities. As shown in Figure 1, of all individual permits, 58
percent are issued to POTWs and the remaining 42 percent are issued to non-POTWs. Those
same percentages are true when only major facilities are considered. The breakdown of the
permit universe is summarized in Table 1. Significant permitted industries are coal and hard
rock mining, oil and gas, and sugar beet processing.

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Mefstann permits yra^fefs©

Non-POTW Major POTW Majeir
10%	i -

Non-POTW Minor

Figure 1. Summary of effective individual MPDES permits.

Table 1, Breakdown of universe of all effective MPDES permits.

POTWs

Non-POTWs

Stormwater

Non-Stormwater General Permits

Major: 19

Major: 14

Municipal: 12

277, including CAFO; 60 Pesticide
authorizations are currently being
processed

Minor: 64

Minor: 45

Industrial: 208

Combined Sewer
Overflow: 0



Construction: 498

There are 13 types of general permits: domestic sewage lagoons, concentrated aquatic animal
production, concentrated animal feeding operations (CAFO), pesticide application, small
municipal separate storm sewer system (MS4), sand and gravel, stormwater construction,
stormwater industrial, construction dewatering, portable suction dredging, petroleum cleanup,
produced water, and disinfected water and hydrostatic testing.

DEQ had a backlog of administratively extended MPDES permits in 2013, resulting in a lawsuit
by two Montana-based conservation groups. On April 24, 2014 DEQ. entered a settlement
agreement with the Montana River Action and Cottonwood Environmental Law Center that
allowed until the end of September 2015 to re-issue 38 backlogged permits and until two years
after permit expiration to re-issue six additional permits. Based on a program questionnaire
completed by DEQ in February 2016, only one minor permit is currently backlogged, and it is
close to finalization.

Application Processing

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The MPDES permit program typically sends renewal reminder notification letters to individual
MPDES permittees approximately 12 to 18 months prior to the expiration date of the current
permit. The renewal letter informs the permittee where the applicable forms are available. DEQ
uses EPA forms for individual permits but uses a state-modified Form 1 for all applicants other
than POTWs. The modified Form 1 requires the same information as the EPA form but requests
additional information regarding groundwater because DEQ issues permits for discharges to
groundwater. DEQ is working on developing new application forms for general permits tailored
to each permit type.

When permit applications are received, an administrative assistant date stamps them, routes
them to the Information Management and Technical Services Section for entry into ICIS, and
then routes them to the MPDES section supervisor for completeness review assignment. When
possible, the permit writer who wrote the applicable effective permit will review the renewal
application for completeness; due to recent staff turnover this often is not possible. After
reviewing the renewal application, the permit writer will send either a notice of deficiency or a
completeness letter. If applicable, DEQ will also send out a nutrient general variance request
form because dischargers must request a variance in order to be granted one. Montana's rules
require a completeness review within 30 days for new applications and 60 days for renewals,
but DEQ strives to have all reviewed within 30 days.

Individual permits are assigned by the section supervisor based on difficulty, agency priorities,
time until or since expiration, permit writer expertise and experience, and workload. New
applications to discharge are given priority over renewals. For general permits, there is a
primary permit writer who coordinates and facilitates the renewal of all master general MPDES
permits.

Permit Development

Once a permit application is deemed complete, it is assigned to a permit writer by the section
supervisor. The person conducting the completeness review is not necessarily the permit
writer. Upon initiation of permit development, the permit writer does a variety of information
checks to evaluate changes since the last permit issuance, or to check for data in the case of a
new discharger: compliance issues or enforcement actions; process changes or differences in
sources to do a high level screening for pollutants of concern (POC); change in waterbody
impairment status; a total maximum daily load (TMDL) completed; applicable water quality
standards; discharge monitoring report (DMR) data, ambient data, and what was provided on
the application. The data tools discussed in Section II.A of this report are the primary tools used
for this data collection process.

Next, the permit writer works on the fact sheet or statement of basis. The fact sheet from the
previous permit is typically used as a starting point, and then the permit writer describes the
facility and its treatment processes, researches applicable technology-based effluent limits
(TBELs), identifies the POCs, and examines if a mixing zone is needed or the appropriateness of
the existing mixing zone. For TBELs at POTWs, the permit writer evaluates the achievability of
meeting the national secondary standards, or if they are eligible for treatment equivalent to

!

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secondary (TES) or alternative state requirements (ASRj under 40 Code of Federal Regulations
(CFR) Part 133. For non-POTWs, the permit writer looks at the effluent limit guideline (ELG)
portion of the permit application, and then references the regulations. Particularly for new
sources, the ELG development documentation and facility processes are also reviewed to assist
with TBEL development. For TBELs based on best professional judgement (BPJ), there is no
defined process; if it is a permit for a private wastewater treatment facility, the national
secondary standards are evaluated for applicability and for other dischargers, DEQ tries to find
comparable existing TBELs.

Prior to development of water quality based effluent limits (WQBELs), DEQ, documents
applicable water quality standards, 303(d) listings, TMDLs completed for the receiving water, an
antidegradation analysis, and the mixing zone determination in the fact sheet. Typically, when
analyzing reasonable potential for WQBELs, the permit writer proceeds with whatever data
were submitted with the permit application and does not request more information from the
permittee because the completeness review is over and the permittee has been notified the
application was compiete. However, DEQ administrative rules do allow them to request
supplemental information from a permittee and such a request does not render the permit
application incomplete.

Montana's antidegradation policy is referred to as nondegradation. The nondegradation policy
is defined in Montana Code Annotated (§ 75-5-303, MCA) and the procedures are at
Administrative Rules of Montana (ARM) § 17.30.7. The permit writer first evaluates whether
the discharge is a new or increased source, which is defined in ARM § 17.30.702(17) as an
activity resulting in a change of existing water quality occurring on or after April 29,1993. If the
determination is "no," the permit writer concludes nondegradation is inapplicable. The level of
protection for the receiving water that drives the specifics of the analysis is consistent with 40
CFR § 131.12: protection of existing uses for waters that are not high quality (Tier 1),
maintenance and protection of high quality waters (Tier 2), and protection of Outstanding
Resource Waters (Tier 3). Montana evaluates the receiving water quality on a parameter by
parameter basis, which means if a specific parameter is not on the 303(d) list, the receiving
water is high quality for that parameter. Montana's rules contain criteria to determine if
changes in existing water quality are significant. There are criteria associated with changes in
the flow of the receiving water, discharges containing carcinogenic or bioconcentrating
parameters, changes in toxic parameters, and changes in harmful parameters. In general, the
changes are associated with an allowable change as a percentage of the water quality standard
and are dependent on the ambient concentration in relation to the water quality standard. If a
discharger was determined in a previous permit cycle to be a new source, DEQ continues to
apply nondegradation requirements for all POCs in future permit cycles.

Montana statute (75-5-301(4), MCA) requires that mixing zones have the smallest practicable
size, minimum practicable effect on water uses, and definable boundaries. DEQ authorizes
three types of mixing zones: standard, alternative, and source-specific. Montana requires that a
mixing zone and the type be requested with a permit application; it is not automatically given
and mixing zones are granted on a parameter by parameter basis. Montana's mixing zone rules,
located in ARM § 17.30.5, contain many of the implementation procedures but DEQ does not

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have a mixing zone policy. The rules do not explain how mixing zone width is determined but
specify the length based on the stream width at critical low flow, which the permit writer
typically determines based on aerial imagery. Montana prohibits the exceedance of acute water
quality standards in the mixing zone unless DEQ concludes minimal initial dilution will not
threaten or impair existing uses. Mixing is only allowed to meet acute aquatic life criteria if an
alternative mixing zone or source-specific mixing zone is granted. Montana's rules do not define
alternative mixing zones but specify DEQ has the authority to define them. During the program
overview portion of the site-visit and also based on fact sheets, DEQ does not allow more than
ten percent of the chronic mixing zone for acute mixing, and alternative mixing zones are
authorized for ammonia and total residual chlorine based on 10 percent of the seven-day, ten-
year iow flow (7Q10) for chronic and 1 percent of the 7Q10 for acute.

The standard mixing zone is used when nearly instantaneous mixing is presumed. This is used
for major dischargers (mean annual flow greater than 1 million gallons per day) if their mean
daily flow exceeds the 7Q10 of the receiving stream or if there is a d iff user that extends across
the stream channel at low flow. If standard mixing is not applicable for a major discharger, they
are typically required to collect data to justify and model a source-specific mixing zone. For
minor dischargers (mean annual flow less than 1 million gallons per day) the standard chronic
mixing zone is either 100 percent of the 7Q10 or 25 percent of the 7Q10, depending on the
dilution ratio between the 7Q10 of the receiving stream and the mean annual discharger flow.
Montana's rules specify that effluent limits for nutrients (total nitrogen and total phosphorus)
must be based on the entire seasonal 14-day, five-year (14Q5) low flow of the receiving water.
Mixing zones granted in a permit issued prior to April 29,1993, are retained from one permit
cycle to the next if there is no demonstration the mixing zone is impairing existing or
anticipated beneficial uses.

The applicable water quality standards, TMDL wasteload allocations (WLAs), findings of the
nondegradation analysis, and the mixing zone determination set the framework for the
reasonable potential analysis (RPA) and development of WQBELs. Prior to conducting the RPA,
DEQ looks at the POCs and if any of the proposed TBELs or existing WQBELs are not adequate
based on DMR data. DEQ conducts a RPA for all POCs where the permit writer determines the
TBELs are not adequate to achieve water quality standards. DEQ generally conducts its RPA and
WQBEL development following the EPA's Technical Support Document for Water Quality-Based
Toxics Control (1991) and uses a steady state mass balance approach. An RPA is typically not
conducted and the conclusion is "undetermined" if there are not at least 10 effluent samples
and 10 ambient samples from the receiving water collected within the previous five years.

There are no formal procedures for this data acceptance criteria; it is up to the discretion of the
permit writer. For ambient data, there is no default percentage or value used in situations
where there is little to no data. Where sufficient data are available, the 25th percentile is used
for ambient hardness and the 75th percentile is typically used to represent the ambient
condition for all other parameters. The usage of ambient data does not differ between the RPA
and WQBEL development. Periodically, DEQ conducts a qualitative RPA for narrative criteria or
other situations where the permit writer determines it is necessary. Mixing is used for the RPA
and WQBEL development if the permittee requests a mixing zone and DEQ determines one is

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appropriate. For pollutants where the permit writer finds the pollutant will cause, have
reasonable potential to cause, or contribute to an exceedance of the water quality standard for
human health or chronic/acute aquatic life, DEQ develops effluent limits. WQBELs are typically
expressed as maximum daily and average monthly limits in either mass and/or concentration
consistent with the regulations. For parameters with a WLA the WQBEL is checked to ensure
consistency with the WLA.

After WQBELs are calculated, the permit writer conducts a stringency analysis to ensure that
the final effluent limitations are the most stringent of the TBELs and WQBELs and an anti-
backsliding analysis to ensure the final effluent limitations are at least as stringent as the
previous permit.

For monitoring requirements, the MPDES section has templates for each permit type that are
used as a general basis for the sample type. DEQ is currently updating the templates. Permit
writers also use the previous permit as a guide for the sample type and monitoring frequency.
Major POTWs are typically required to collect composite samples except where grab sarrples

are required by the regulations, DEQ typically requires quarterly monitoring and uses its water
quality standards circulars, DEQ-7 and DEQ-12 to specify the required reporting value. Recently,
DEQ has started specifying how the data are reported (i.e., average, maximum, etc.).

DEQ includes the standard conditions required in 40 CFR § 122.41. The conditions are
boilerplate language based on Montana's administrative rules, which are based on the federal
regulations. At times, DEQ has included its general prohibitions from its narrative water quality
standards. DEQ frequently includes requirements in the special conditions section of the
permit. They are used for a variety of requirements including if there are interim and then final
effluent limits, annual reports to outline progress towards meeting WQBELs, optimization
studies for the nutrient variance, Stormwater Pollution Prevention Plans (SWPPP), and source
assessment and mixing zone studies. Narrative pretreatment language provided by the EPA is
included in permits for approved pretreatment programs, and a modified version of the
language provided by the EPA is included for POTWs with non-approved programs. For
biosolids, DEQ permits previously referred to the EPA General Permit, but the language has
been updated to reflect the regulation and annual reporting requirements since the EPA
discontinued use of the General Permit in 2015 in favor of direct implementation of 40 CFR Part
503.

DEQ has one staff person who handles CWA 401 certifications and Montana 318 authorizations.
The position is located within the same bureau as the MPDES Permitting Section but in the
Ground Source Water and 318/401 Section. The MPDES Permitting Section does not see any of
the 401 certifications and is not involved in the certification process.

After completion of the fact sheet or statement of basis, the permit writer develops the permit
conditions using either a template or the existing permit as a starting point and filling in the
details with the information from the draft fact sheet. Prior to public notice, the fact sheet and
permit are reviewed within DEQ as described in Section A.

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Montana's rules for public notice, public comments, response to comments and public hearings
for MPDES permits are at ARM §§ 17.30.1372 -1377. DEQ maintains a distribution list of
interested parties based on county and watershed that receive public notice announcements.
Unless the permit writer requests a partial or full review of the fact sheet and permit by the EPA
during development, the public notice period is when the permit documentation is provided to
the EPA. Public notices are posted on DEQ's website and published in the newspaper closest to
the permittee's facility. Montana's rules specify 30 days as the minimum length of the public
comment period, but sometimes the length is extended if there is significant interest in the
permit or if it is complicated. DEQ accepts written comments only on draft permits via its
website, by mail or at public hearings. Hearings on draft permits are conducted based on public
request during the comment period. The permit writer is responsible for responding to public
comments. If comments are limited they may be answered verbatim but if there are lots of
comments or they are duplicative, they are trimmed down and paraphrased. There is no
statutory deadline for DEQ. to complete the response to comments but the MPDES program
aims for 60 days. Once the permit writer completes the responses, they undergo supervisor and
legal review. The response to comments is a separate document that supersedes the applicable
portion of the fact sheet/statement of basis if DEQ makes changes in response to comments.
Permit objections and appeals are infrequent, if the EPA issues an interim objection or
objection to a permit, DEQ MPDES staff work with DEQ management and the EPA to discuss the
EPA's concerns and work towards an amenable solution.

Only the permittee may appeal a final permit through the BER; other interested parties must
file suit in Montana District Court. If a permittee appeals the final permit, the MPDES Permitting
Section coordinates their actions with the data and legal staff. The portions of the permit that
are appealed are stayed through the data section. Typically, the permitting section then works
with legal staff and the permittee to resolve the appeal without it needing to go before the BER.
If DEQ and the permittee cannot negotiate a resolution to the appeal, the portion of the permit
being appealed goes to the Board of Environmental Review (BER) for a final determination.
When an appeal gets to the BER it may either have a hearing or just make a decision on behalf
of DEQ.

C. State-Specific Challenges

The biggest challenge DEQ's MPDES Permitting Section has had over the five years since the last
PQR is staff turnover. Although DEQ has had the resources to fill vacancies, the rate of staff
turnover and decreasing number of senior staff in the MPDES program have caused workload
challenges. Based on interviews from this and the previous PQR, DEQ has been aware that
updating templates and finalizing procedures are long overdue, but permitting workloads and
the push to eliminate the backlog caused those updates to move down on Montana's priority
list.

When the MPDES Permitting Section was in a separate division from other water programs,
cross-programmatic communication was often limited. However, permitting staff reported

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during the site visit that communication has already improved since the reorganization put
them in with the other water programs.

Other challenges facing DEQ's MPDES Permitting Section are associated with water quality
standards. The Montana Board of Environmental Review (BER) promulgated numeric nutrient
criteria for wadeable streams on July 25, 2014, and the EPA approved the criteria February 26,
2015. Because the criteria are lower than current limits of technology economically
achieveable, Montana (and the EPA) also approved a general variance to incrementally ratchet
down effluent limits. The variance is implemented in MPDES permits, and the MPDES
Permitting Section worked with the Water Quality Standards Section and the Nutrient Work
Group to develop an implementation process. This included determining how variances applied
to new sources and nondegradation, application of variances to impaired waters with approved
TMDLs, creating a nutrient variance request procedure, and use of long-term compliance
schedules in permits. Additionally, the EPA has worked with DEQ for years on water quality
standards issues associated with Montana's waterbody classifications (i.e., beneficial uses are
grouped into categories), treatment to purer than natural conditions, and antidegradation.
Although these issues are still outstanding, site-specific conditions occasionally force the permit
writer to navigate through grey areas associated with these issues. Resolving these issues
within the Water Quality Standards Program will improve implementation consistency and
reduce the burden on the MPDES Permitting Section.

Montana's MPDES program currently has five initiatives:

1)	Nutrients: This is a focus because of the adoption of numeric nutrient criteria
and the general variance from those criteria available to permittees.

2)	Ammonia: This is a focus because DEQ has realized many facilities, particularly
wastewater lagoons, cannot meet the current water quality standard and
ammonia is driving a lot of facility upgrades. Additionally, the EPA has recently
revised its CWA § 304(a) water quality criteria to values that are more stringent.
DEQ is evaluating available data for MPDES permitted facilities and how those
data are used to derive the applicable standard and WQBEL.

3 and 4) Nondegradation and Mixing zones: there is not much formal guidance on

implementation of either of these procedures and they can be complicated. This
results in nondegradation and mixing zone decisions being carried over from
previous permits, often without accompanying documentation. DEQ has formed
a Policy Team within the Water Quality Division to decide if new policy or rule
updates are needed for these two issues.

5)	FACTS: This is an online tool that DEQ is developing to improve consistency

within the permitting program. After full build out, it will be a formalized permit
tracking system that will allow for online application submission and fee

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payment, assist with fact sheet development (including RPA and WQBEL
development) and quality assurance/quality control in the permitting program.

Ill, > 'M I,	- -

The findings are organized by the major components of the permitting process that were
evaluated as part of the core review. Each component contains a summary of the program
strengths, critical findings that have been identified as being inconsistent with regulatory
requirements, recommended actions to address findings that are inconsistent with existing
policy or guidance, and suggested practices that may help improve the MPDES program.

A. Basic Facility Information arid Permit Application

1.	Fatinty Information

Basic facility information is necessary to properly establish permit conditions. For example,
information regarding facility type, location, processes and other factors is required by NPDES
permit application regulations (40 CFR § 122.21). This information is essential for developing
technically sound, complete, clear and enforceable permits. Similarly, fact sheets must include
a description of the type of facility or activity subject to a draft permit.

Program Strengths

The fact sheets for all 11 individual permits reviewed clearly described the facility and
processes, identified outfalls and described the associated waste streams, and described the
location of the outfall(s) relative to the receiving water.

Critical Findings

There are no critical findings or recommended actions to improve the program's
implementation of this component.

2.	Permit:Application Requirements

Federal regulations at 40 CFR §§ 122.21 and 122.22 specify application requirements for
permittees seeking NPDES permits. Although federal forms are available, authorized states are
also permitted to use their own forms provided they include all information required by the
federal regulations. This portion of the review assesses whether appropriate,.complete, and
timely application information was received by the state and used in permit development.

Program Strengths

All application forms required by DEQ were correct for the 11 individual permits reviewed, and
the modified Form 1 developed by DEQ. requests all of the information required by 40 CFR §§
122.21 and 122.22. Generally, the record contained the complete application for all permits

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reviewed. DEQ did a thorough job evaluating applications for completeness and responding in a
timely manner.

Critical Findings

Out of the 11 permits reviewed, eight permit applications were not complete at least 180 days
before permit expiration. Particularly because several of the permits reviewed were for rapidly
changing sites, there were multiple submissions of information prior to permit renewal, and the
permit records made it difficult to determine what additional information was provided and
when the permit application was complete. The Stillwater East Boulder Mine, which continually
changes facility characteristics as mining progresses, submitted new information six times
between 2005 and when the permit was renewed in 2015. The permit fact sheet indicated
complete applications were received in 2005 and 2006, but only the 2006 application was in the
file. The Bonner Property Development permit also had multiple applications submitted and
new information requested by DEQ. several times during site repurposing with multiple
determinations of application completeness being made by DEQ. For two different permits,
Billings and Phiiipsburg. DEQ issued letters of substantial completeness though it is not clear
what this term means. For Phiiipsburg, the date of the letter matches the completeness date in
ICIS but for Billings the completeness date in ICIS is two years later, and the dates cited in the
fact sheets are not consistent with ICIS. One permit, Helena Water Treatment Plant, had an
application containing metals analytical data that did not meet the required analytical reporting
levels and, which were not sufficiently sensitive to use for the RPA.

Suggested Actions

Three of the eight applications which were not complete 180 days before permit expiration
were not initially submitted until less than 180 days before permit expiration. In these three
cases, the permits were administratively continued even though DEQ's rules (ARM §
17.30.1313(1) and ARM § 17.30.1322(4)) require timely and complete applications unless
permission for a later date is granted by the DEQ. The permit records did not contain any
indication such permission was sought or granted Though 40 CFR § 122.26 is not applicable to
state programs, the EPA suggests Montana review their administrative continuation practices
vis-a-vis the administrative rule requirements to strengthen the defensibility of the MPDES
program.

NPDES regulations at 40 CFR § 125.3(a) require that permitting authorities develop technology-
based effluent limitation (TBEL) requirements where applicable. Permits, fact sheets and other
supporting documentation for POTWs and non-POTWs were reviewed to assess whether TBELs
represent the minimum level of control that must be imposed in a permit.

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1.	TBELs for P'OTWs

POTWs must meet secondary treatment or treatment equivalent to secondary (TES) standards
with numeric effluent limits (or authorized alternatives) for BOD, TSS, pH, and percent BOD and
TSS pollutant removal in accordance with the secondary treatment regulations at 40 CFR Part
133. A total of six POTW permits were reviewed as part of the PQR.

Program Strengths

All POTW permits reviewed consistently applied the required TBELs. All limits were expressed in
appropriate units of measure and on an average weekly and monthly basis. If limits were
adjusted to TES or Alternative State Requirements (ASRj, the rationale was well justified in the
fact sheet. For instance, the Philipsburg POTW has had compliance issues and DEQ did not grant
them ASR because one of the requirements for ASR is proper operation and maintenance and
the permit writer concluded the facility did not satisfy this requirement.

Critical Findings/Recommended Actions/Suggested Practices

There are no critical findings or recommended actions to improve the program's
implementation of this component.

2,	V_ ,

Permits issued to non-POTWs must require compliance with a level of treatment performance
equivalent to Best Available Technology Economically Achievable (BAT) or Best Conventional
Pollutant Control Technology (BCT) for existing sources, and consistent with New Source
Performance Standards (NSPS) for new sources. Where federal ELGs have been developed for a
category of dischargers, the TBELs in a permit must be based on the application of these
guidelines. If ELGs are not available, a permit must include requirements at least as stringent as
BAT/BCT developed on a case-by-case using BPJ in accordance with the criteria outlined at 40
CFR § 125.3(d). A total of five non-POTW permits were reviewed as part of the PQR.

Program Strengths

Overall, the description of treatment processes and applicable standards, determination of
each facility as a new or existing source, and calculations for ELG-based effluent limits were
well-documented in the permit fact sheets. Four of the five permits reviewed had TBELs based
on BPJ; the rationale for the TBELs was justified based on ELGs applicable to similar facilities
(i.e., other mining categories and secondary treatment standards). The ELGs were correctly
applied in the two permits that had applicable ELGs. TBELs were provided in the appropriate
units and as both maximum daily and average monthly limits.

Critical Findings

The permit for Bonner Property Development, MT0000205, had TBELs based on BPJ. The
Bonner fact sheet correctly referenced 40 CFR § 125.3(d) and said the limits were

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demonstrated to be consistently achievable in the water treatment industry but did not provide
any additional information regarding the basis for the BPJ limits.

Recommended Actions

The permit for Barretts Minerals, MT0029891, referenced a BPJ-based TBEL for total suspended
solids developed in a previous permit cycle (2000), but did not include the justification or
calculation for the effluent limit. EPA recommends providing the rationale and calculations for
such TBELs in the current fact sheet so they are transparent for the permittee and the public.

C. Water Quality-Based Effluent Limitations

The NPDES regulations at 40 CFR § 122.44(d) require permits to include any requirements in
addition to or more stringent than technology-based requirements where necessary to achieve
state water quality standards, including narrative criteria for water quality. To establish such
WQBELs the permitting authority must evaluate the proposed discharge and determine
whether technology-based requirements are sufficiently stringent, and whether any pollutants
or pollutant parameters will cause, have the reasonable potential to cause, or contribute to an
excursion above any applicable water quality standard.

The PQR for Montana DEQ assessed the processes employed by permit writers and water
quality modelers to implement these requirements. Specifically, the PQR reviewed permits, fact
sheets, and other documents in the administrative record to evaluate how permit writers and
water quality modelers:

•	determined the appropriate water quality standards applicable to receiving waters,

•	evaluated and characterized the effluent and receiving water including identifying
pollutants of concern,

•	determined critical conditions,

•	incorporated information on ambient pollutant concentrations,

•	assessed any dilution considerations,

•	determined whether limits were necessary for pollutants of concern, and where
necessary,

•	calculated such limits or other permit conditions.

For impaired waters, the PQR also assessed whether and how permit writers consulted and
developed limits consistent with the assumptions of applicable EPA-approved TMDLs.

Program Strengths

All permits reviewed clearly identified the receiving stream, applicable water quality standards,
and impairment status. Six of the 11 permits reviewed had applicable TMDL WLAs that were
correctly referenced. EPA noted the draft permit for Missoula, MT0022594, did not account for

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metals TMDLs, but after EPA comments this was corrected for the final permit. This was
discussed during the opening conference for the site visit and was attributed to the CWAIC not
being up-to-date when that permit was drafted; DEQ indicated the CWAIC is now kept up-to-
date. The CWAIC is a good tool both for permit writers and the public as a comprehensive
location for waterbody classifications (which standards are associated with), impairment status,
and TMDL status, as long as it is actively maintained.

Critical Findings

There are no critical findings or recommended actions to improve the program's
implementation of this component.

Suggested Practices

The fact sheets reviewed addressed some POCs but they were inconsistent in identifying all
POCs at facilities and explaining the basis for selecting the POCs. Most fact sheets appeared to
have template language of the general factors considered for POCs but the rationale for how
the final list or individual parameters in the final list were selected was often missing from the
discussion. For example: Philipsburg, MT0031500, did not mention TMDLs although they were
clearly considered; toxics were not mentioned for Whitefish, MT0020184, although they were
evaluated and temperature was mentioned despite being an atypical pollutant of concern for a
wastewater treatment facility; ExxonMobil, MTOO00477, did not include all of the parameters
that had TBELs; and Kalispell, MT0021938, listed parameters typically present in municipal
wastewater but did not explicitly discuss pollutants of concern or mention the TMDL in the
discussion. EPA suggests refining the POC template language, developing a consistent base list
for POTWs, and ensuring the rationale and complete list of POCs is provided in the fact sheet.

NPDES regulations at 40 CFR § 122.41(j) require permittees to periodically evaluate compliance
with the effluent limitations established in their permits and provide the results to the
permitting authority. Monitoring and reporting conditions require the permittee to conduct
routine or episodic self-monitoring of permitted discharges and where applicable, internal
processes, and report the analytical results to the permitting authority with information
necessary to evaluate discharge characteristics and compliance status.

Specifically, 40 CFR § 122.44(i) requires NPDES permits to establish, at minimum, annual
monitoring for all limited parameters sufficient to assure compliance with permit limitations,
including specific requirements for the types of information to be provided and the methods for
the collection and analysis of such samples. In addition, 40 CFR § 122.48 requires that permits
specify the type, intervals, and frequency of monitoring sufficient to yield data which are
representative of the monitored activity. The regulations at 40 CFR § 122.440) also require
reporting of monitoring results with a frequency dependent on the nature and effect of the
discharge.

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Previous permits often did not require monitoring for CWA § 303(d) listed parameters that may
be POCs. This resulted in insufficient data being available for permit writers to conduct RPAs.
The sampling data available commonly did not meet the required analytical reporting levels and
so was discarded by permit writers and no additional monitoring was required to develop data
for permit effluent limit development. Acute whole effluent toxicity (WET) monitoring is often
required when the EPA would recommend chronic WET monitoring because the effluent
dilution ratio with the receiving water is so high.

Program Strengths

The permits renewed included a good explanation of monitoring location, requirements, the
need to meet 40 CFR Part 136 methods and identification of required analytical reporting levels
as well as including appropriate monitoring frequency for the discharge type. Permits contain
the minimum reporting and record-keeping requirements of the CFR.

Critical Findings

Because DEQ does not routinely get adequate quality monitoring data submitted with psrmit
applications, the DEQ often is not able to determine reasonable potential for pollutants to
cause, have the reasonable potential to cause, or contribute to an exceedance of a water
quality standard. 40 CFR § 122.48 requires permits to contain monitoring requirements
sufficient to yield data which are representative of the monitoring activity. Section 122.44(d)
requires effluent limitations for all pollutants or pollutant parameters "which are or may be
discharged at a level which will cause, have the reasonable potential to cause, or contribute to
an excursion above any State water quality standard." Not conducting an RPA on pollutants
places DEQ in violation of 40 CFR 122.44(d).

As the RRVs are adopted as part of the WQS through the administrative rule process,
permittees submitting monitoring results not meeting the RRV requirement are also in violation
of their permit requirements. Additionally, as the monitoring results commonly did not meet
DEQ's RRVs it puts the validity of the results in to question when comparing them to the permit
effluent limitations to determine permit compliance.

Recommended Actions

DEQ should develop a procedure to ensure permittees are supplying enough monitoring
information for RPA and WQBEL determination. This could be a request for supplemental
information as allowed by ARM § 17.30.1364, or requiring more frequent monitoring or
requiring monitoring of TMDL listed parameters causing impairment. Another possibility would
be to delay declaring the permit application complete until adequate data, meeting the quality
requirements to conduct an RPA, has been submitted by the permittee. If analytical
laboratories, due to technology limitations, cannot consistently analyze effluent samples to the
level required by DEQ's RRVs, then DEQ should consider revising the RRVs to levels which are
attainable by analytical laboratories.

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E. Sta

Federal regulations at 40 CFR § 122.41 require that ail NPDES permits, including NPDES general
permits, contain an enumerated list of standard permit conditions. Further, the regulations at
40 CFR § 122.42 require that NPDES permits for certain categories of dischargers must contain
additional standard conditions. Permitting authorities must include these conditions in NPDES
permits and may not alter or omit any standard condition, unless such alteration or omission
results in a requirement more stringent than required by the federal regulations.

In addition to standard permit conditions, permits may also contain additional requirements
that are unique to a particular permittee or discharger. These case-specific requirements are
generally referred to as special conditions. Special conditions might include requirements such
as: additional monitoring or special studies such as pollutant management plan or a mercury
minimization plan; best management practices [40 CFR § 122.44(k)], or permit compliance
schedules [40 CFR § 122.47]. Where a permit contains special conditions, such conditions must
be consistent with applicable regulations.

The DEQ permits contain all the standard conditions required by the CFR. Montana has adopted
the standard conditions in the ARM, generally with language identical to the corresponding
CFR. Those standard conditions not identical have minor changes, such as substituting the word
Director in place of Administrator, to make them more applicable to the state issued permits.
None of those differences from the CFR change the intent or enforceability of the standard
conditions.

Montana puts their nutrient variance language, nutrient optimization plans, special monitoring
requirements, toxicity identification evaluation/toxicity reduction evaluation and special study
requirements in the special conditions section of the permit and sometimes as a compliance
schedule item in the same permit. The permits reviewed by the EPA had these sort of special
conditions addressed differently. The Red Lodge permit (MT0020478) has WET requirements
addressed in § C, monitoring requirements, of Part I but has the Toxicity Identification
Evaluation/Toxicity Reduction Evaluation in § F, special conditions, of Part I separated from the
WET section by the compliance schedule and pretreatment sections. The special conditions
section also contains a copper and zinc source investigation and control report and copper and
zinc instream monitoring requirements. The source investigation and control report is also in
the compliance schedule section, which refers forward to the special conditions section and
also contains copper and zinc concentrations with which Red Lodge must achieve compliance.

Part of Montana's nutrient variance procedure requires permittees with variances to conduct a
facility optimization study and nutrient reduction analysis, which requirement is put in the
special conditions section of the permit. The Bonner (MT0000205), Whitefish (MT0020184),
Kalispell (MT0021938) and Philipsburg (MT0031500) have this requirement as a special
condition and also as a compliance schedule item with 2 milestones, complete a facility
optimization study and submit notification that the facility optimization study is complete,
neither of which is an effluent limit. The Kalispell, Billings and Philipsburg permits also have

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studies with required completion dates in the special conditions section of their permits but
unlike the nutrient variance requirements, they are not also put into compliance schedules.

The Whitefish permit also contains effluent limit compliance in the special conditions section to
meet dissolved aluminum effluent limits but does not have this effluent limit condition in a
compliance plan. Similarly, the Missoula permit has a special conditions section with a
requirement to achieve effluent limits for copper, lead and iron but does not contain a
compliance schedule for those effluent limits. Both of these permit special condition
requirements are vague in milestones, requiring "annual reports of progress" but without
description of what progress should be made toward compliance. The final compliance date in
the Missoula special condition is one month before the permit expires with no indication of
how that meets the "as soon as reasonably possible" requirement.

Regulatory factors relevant to whether a compliance schedule in a specific permit is
appropriate under 40 CFR § 122.47(a) include: how much time the discharger has already had
to meet the WQBELs under prior permits; the extent to which the discharger has made good
faith efforts to comply with the WQBELs and other requirements in its prior permit(s); whether
there is any need for modifications to treatment facility's operations or measures to meet the
WQBELs and if so, how long would it take to implement the modifications to treatment,
operations or other measures; or whether the discharger would be expected to use the same
treatment facilities, operations or other measures to meet the WQBEL as it would have used to
meet the WQBEL in its prior permit. The effluent compliance schedules described above do not
address any of these factors and some of the effluent compliance requirements are listed as
special conditions rather than compliance schedules, while non-effluent requirements are
placed in either or both special conditions and compliance schedules without any explanation.

Program Strengths

Permits commonly require mixing zone and source assessment studies that will be beneficial in
future permit development. The need for these studies is typically well explained. Standard
conditions are appropriate for the facility type.

Critical Findings

Measurable milestones are typically lacking from compliance schedules, and compliani e
schedules intended to meet effluent limits commonly contain conditions not associated with
meeting the effluent limits.

Suggested Practices

The DEQ should develop a procedure to help guide permit writers in making consistent
determinations to whether a permit requirement, which will not be met until some point in the
future, should be placed in special conditions or a compliance schedule. The procedure should
also assist permit writers in determining appropriate milestones for compliance schedules. In
developing a procedure, a useful reference would be the May 2007 guidance memorandum
from the Director of EPA's Office of Wastewater Management on the use and content of

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compliance schedules in NPDES permits, consistent with the CWA and its implementing
regulations. This memorandum is available on the EPA's web site at
https://www3.epa.gov/npdes/pubs/memo compiianceschedules mav07.pdf.

The administrative process includes documenting the basis of all permit decisions (40 CFR §§
124.5 and 124.6); coordinating EPA and state review of the draft (or proposed) permit (40 CFR §
123.44); providing public notice (40 CFR § 124.10); conducting hearings if appropriate (40 CFR
§§ 124.11 and 124.12); responding to public comments (40 CFR § 124.17); and, modifying a
permit (if necessary) after issuance (40 CFR § 124.5). EPA discussed each element of the
administrative process with Montana, and reviewed materials from the administrative process
as they related to the core permit review.

DEQ has administrative rules for public notice of draft permits and lists of all interested parties
based on county and watershed. Public notices are published in the nearest daily circular
newspaper, Helena's daily circular newspaper, and posted on the DEQ website, allowing a
minimum of 30 days for comment based on the ARM. However, a longer public notice period,
generally 45 days, is sometimes given if the permit is one that DEQ. feels will generate
significant public interest or controversy or if the permit is particularly complicated.
Determinations as to whether a hearing will be held is based on public request during the public
notice comment period or if DEQ has significant public interest prior to public notice. All
comments on a permit action must be written and DEQ accepts them by mail and email and
also at public hearings if they are held. Responses to public comments are typically done by the
permit writer. If comments are few and distinct, DEQ prepares a written response to each
comment. When comments are numerous or duplicative, DEQ summarizes the comments by
removing extraneous language or paraphrasing and grouping comments into categories, which
each get a written response. Comment responses are all reviewed by the permitting section
supervisor and also by the DEQ legal staff prior to releasing them to the public. The response to
comments document becomes part of the administrative record and supersedes applicable
portions of the fact sheet. The response to comments also identifies changes made to the
permit based on comments. DEQ does not have a statutory or regulatory time frame in which
to respond to comments on permits but strives to have the comment responses complete
within 60 days. The EPA is notified by DEQ of the public comment period and conducts its
permit review during the public notice time period.

If a permittee appeals a permit, the permitting section coordinates the DEQ response with the
data section and legal unit. The portions of the permit, which are appealed, are stayed by the
data section so the ICIS database does not show permit violations during the appeal process.
Any sections of the permit that are not severable from the sections being appealed are also
stayed. The legal unit may negotiate with the permittee to see what flexibility they have in their
appeal and try to resolve the appeal without BER involvement. Permit appeals, which cannot be
resolved between the parties, are ultimately addressed by the BER on behalf of the DEQ. The
BER has discretion on whether or not to hold a hearing on the permit appeal prior to making

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their decision. The BER decision is the final administrative decision on the appealed portions of
the permit and DEQ abides by the BER decision in implementing the permit requirements.

If the EPA objects to a permit, the initial objection correspondence to DEQ is sent to the bureau
and section managers, who discuss the issues with the EPA to try and resolve the differences at
the staff level for submission to management. If the two agency's staff members cannot resolve
the permit issues causing the objection, the conversation level is elevated within each agency
with discussion continuing until the permit objection is resolved and the EPA concurs with
revised permit language and requirements. In the event that the agencies could not resolve the
permit objection, the authority to issue that specific permit would return to EPA.

Program Strengths

The DEQ has good documentation of permit public notices, any public comments they get, their
reply to comments, and adherence to the regulatory procedures applicable to public notice.
The administrative records are well organized and the use of the permit development process
checklist is a good organizational tool. Permit modifications are adequately explained and
documented, including any public notice for major permit modifications.

Critical Findings

The file folders in the public access file room have inconsistent complete copies of permit
applications, public comments and responses to comments. As the originals of these
documents are in the archive files, which are not immediately accessible, the EPA recommends
complete copies of those documents be included in the file room folder.

The administrative record is the foundation that supports the NPDES permit. If EPA issues the
permit, 40 CFR § 124.9 identifies the required content of the administrative record for a draft
permit and 40 CFR § 124.18 identifies the requirements for a final permit. Authorized state
programs should have equivalent documentation. The record should contain the necessary
documentation to justify permit conditions. At a minimum, the administrative record for a
permit should contain the permit application and supporting data; draft permit; fact sheet or
statement of basis; all items cited in the statement of basis or fact sheet including calculations
used to derive the permit limitations; meeting reports; correspondence between the applicant
and regulatory personnel; all other items supporting the file; final response to comments; and,
for new sources where EPA issues the permit, any environmental assessment, environmental
impact statement, or finding of no significant impact.

Current regulations require that fact sheets include information regarding the type of facility or
activity permitted, the type and quantity of pollutants discharged, the technical, statutory, and
regulatory basis for permit conditions, the basis and calculations for effluent limits and
conditions, the reasons for application of certain specific limits, rationales for variances or
alternatives, contact information, and procedures for issuing the final permit. Generally, the
administrative record includes the permit application, the draft permit, any fact sheet or

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statement of basis, documents cited in the fact sheet or statement of basis, and other
documents contained in the supporting file for the permit.

1, CCtiil" i/7. f l'J '.ZP.l LsiUlU' done

Permit records for POTWs and industrial facilities should contain comprehensive
documentation of the development of all effluent limitations. Technology-based effluent limits
should include assessment of applicable standards, data used in developing effluent limitations,
and actual calculations used to develop effluent limitations. The procedures implemented for
determining the need for water quality-based effluent limitations as well as the procedures
explaining the basis for establishing, or for not establishing, water quality-based effluent
limitations should be clear and straight forward. The permit writer should adequately
document changes from the previous permit, ensure draft and final limitations match, unless
the basis for a change is justified and documented, and include all supporting documentation in
the permit file.

When developing TBELs DEQ. is very good at justifying and documenting why national
secondary standards apply to facilities. The permit writers use the national secondary standards
language from 40 CFR § 133 to show how facilities meet the criteria for either national
secondary standards or treatment equivalent to secondary standards. One permit's effluent
limit was affected and modified because of nutrient trading in the receiving water. The nutrient
trading was very well documented and justified with a clear, easily understandable explanation
of why it allowed an increase in the effluent limit and the increase was not backsliding. When
documenting TBELs, the documentation varied between permits. There was one very good best
professional judgement TBEL for a mining facility, which based the permit TBEL on other mining
category effluent limit guidelines. Another example of good explanation and documentation is
in the ExxonMobil permit, which explained why the regulations allowed a TBEL increase from
the previous permit based on a production increase at the refinery, resulting in a different
factor being used in the TBEL calculation.

Deficiencies the review team noted in the Bonner Property Development permit (MT0000205)
include a total residual chlorine limit in the previous permit being removed from the new
permit without any anti-backsliding discussion or justification as to why the limit could be
removed. The fact sheet said there was no reasonable potential for the total residual chlorine
to exceed numeric water quality standards so there would be no limit in the permit but there
was no further discussion of anti-backsliding. The Whitefish permit (MT0020184) had the same
lack of anti-backsliding discussion. The oil and grease limit was removed for no reasonable
potential without any discussion of why it is not anti-backsliding. The same anti-backsliding
issue is in the Kalispell permit (MT0021938). The loading for TN is higher than the previous
permit loading limit, again without any anti-backsliding discussion or justification. This TN
loading limit in the Kalispell permit was also higher than the TN listed in the fact sheet. The
Barretts Minerals Permit (MT0029891) had a total suspended solids TBEL carried over from the
2008 permits without any discussion or documentation of how it was determined or if it was
still a valid limit for the facility. The fact sheet said the 2008 TBEL value had originally been
determined in a permit written in 2000.

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Overall documentation, justification and explanation of WQBELs was lacking in some permits.
The WQBEL sections may discuss facility monitoring, receiving water impairment, TMDLs and
effluent characteristics but don't explain how those were used to select pollutants of concern
for RPA and pollutant parameters that have TBELs listed in the fact sheet are not considered as
pollutants of concern for RPA with no explanation why not in the fact sheet or file. Permit fact
sheets will cite limited effluent data as reasons for not calculating WQBELs, though the EPA's
Technical Support Document For Water Quality-based Toxics Control (March 1991) provides
guidance on developing WQBELs with limited effluent data. There are references to new
procedures for WQBEL development but nothing is explained on what is different and the
reference page does not have any documents listed for new procedures.

The Stillwater East Boulder Mine (MT0026808) permit had effluent limits changed between the
draft permit and final permit because of public comments. The fact sheet did not have enough
information on how the changes were made. It is not clear how the new limit was derived and
there is no documentation in the file, fact sheet, or response to comment document explaining
how or why the effluent limits were changed. The permit reviewer talked with the permit
writer, who was able lo give an explanation and reproduce the calculation used but il was not
in the response to comments, fact sheet or official file.

The fact sheets for ExxonMobil (MT0000477) and the Stillwater East Boulder Mine
(MT0026808), both of which have multiple outfalls, do not always have clear explanations of
the WQBELs for each outfall, the WQBEL for one outfall may be well explained while the other
outfalls have minimal or no explanation of WQBEL development. In general, the record
documentation of RPA and WQBEL development is inconsistent among the permits and does
not always tell how the permit writer did this task.

Program Strengths

Most of the administrative record is complete and there are some very well written
justifications and explanations on how effluent limits were determined or modified.

Critical Findings

The quality of documentation and justification for effluent limits varies widely between permits
and permit writers with some of the write ups being non-existent. Much of the inconsistency in
development occurs when changes are made between the draft and final permits. As detailed
in the Monitoring and Reporting section on page 19 above, 40 CFR § 122.48 requires permits to
contain monitoring requirements sufficient to yield data which are representative of the
monitoring activity and 40 CFR § 122.44(d) of the code requires effluent limitations for all
pollutants or pollutant parameters "which are or may be discharged at a level which will cause,
have the reasonable potential to cause or contribute to an excursion above any State water
quality standard." Limited effluent data should not be a reason for not calculating WQBELs.

Recommended Actions

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Organization of the administrative record could be improved to make it easier to find
documentation of permit decisions and correspondence.

National topic areas are aspects of the NPDES permit program that warrant review based on
the specific requirements applicable to the selected topic areas. These topic areas have been
determined to be important on a national scale. National topic areas are reviewed for all state
PQRs. The national topics areas are: nutrients, pesticides, pretreatment and stormwater.

For more than a decade, both nitrogen and phosphorus pollution has consistently ranked as
one of the top causes of degradation of surface waters in the U.S. Since 1998, EPA has
emphasized as a priority, reducing the levels and impacts of nutrient pollution. A key part in this
effort has been the support EPA has provided to States to encourage the development,
adoption and implementation of numeric nutrient criteria as part of their water quality
standards (see the EPA's National Strategy for the Development of Regional Nutrient Criteria).
In a 2011 memo to the EPA regions titled Working in Partnerships with States to Address
Nitrogen and Phosphorus Pollution through use of a Framework for State Nutrient Reductions,
the Agency announced a framework for managing nitrogen and phosphorus pollution that, in
part, relies on the use of NPDES permits to reduce nutrient loading in targeted or priority
watersheds. To assess how nutrients are addressed in the MPDES permitting program in
Montana and implementation of this framework, EPA Region 8 reviewed six permits, the: City
of Red Lodge WWTF, MT0020478; ExxonMobil Billings Refinery, MT0000477; City ofWhitefish
WWTF, MT0020184; City of Kalispell WWTF, MT0021938; Town of Philipsburg WWTF,
MT0031500; and, Stillwater East Boulder Mine, MT0026808.

Background

Montana DEQ. has long recognized the importance of controlling nutrient pollution and began
work on developing numeric nutrient criteria around 2006. Those efforts culminated in the
Montana BER's approval of numeric nutrient criteria for wadeable streams on July 25, 2014,
and the EPA's approval of the criteria February 26, 2015. The numeric nutrient criteria are for
total nitrogen (TN) and total phosphorus (TP), differing across Montana by Level 3 Ecoregion,
with some areas broken out by Level 4 Ecoregion. Because the criteria are lower than current
limits of economically achievable technology, Montana (and the EPA) also approved a general
variance to incrementally ratchet down effluent limits. The criteria adoption was associated
with the adoption of a multiple discharger variance of up to 20 years. The variance stratifies
dischargers into three levels: lagoons not designed for nutrient removal; dischargers with a
design flow of less than 1 million gallons per day; and, dischargers with a design flow of 1
million gallons per day or greater. Each discharger category has different variance limits that
are applicable to their category. In permits the WQBEL is expressed as an average monthly limit
in pounds of pollutant and full mixing is allowed at the seasonal 14Q5 flow. Montana plans to
evaluate the variance limits every 3 years during the 20-year period the variances are allowed.

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The nutrient variance and the EPA's approval of it have since been challenged in U.S. District
Court by environmental groups alleging the criteria are too lenient.

Montana has also been studying nutrient removal optimization at treatment plants and piloting
optimization studies at different POTWs. They are also requiring an optimization study be
conducted by facilities getting a nutrient variance within the first two years of the permit period
with the variance. Additionally, the Montana Legislature passed a statewide phosphorus
detergent ban with Senate Bill 200 during the 2009 legislative session.

The permit review shows DEQ. is conducting RP analyses for all surface water outfalls. The
Stillwater East Boulder Mine permit did not have an RP analysis done on two outfalls to
groundwater hydrologically connected to surface water. There was no clear explanation of why
no RP was not done in the Fact Sheet/Statement of Basis. Permit effluent limits are a mix of
TBELs and WQBELs with TMDL WLAs being considered for those waters with a TMDL in place.

Program Strengths

Facilities must apply for a nutrient var iance, DEQ doeia no I automatically give une during the
permit process. Facilities that are granted a nutrient variance are required to conduct a nutrient
reduction optimization study to determine the best operating mode to have the lowest nutrient
levels without requiring structural changes to the treatment process.

Critical Findings

There are no critical findings or recommended actions to improve the program's
implementation of this component.

2. ".v;-. -.r

On October 31, 2011, the EPA issued a final NPDES Pesticide General Permit (PGP) for
Discharges from the Application of Pesticides. This action was in response to a 2009 decision by
the U.S. Sixth Circuit Court of Appeals (National Cotton Council of America v. EPA. 553 F.3d 927
(6th Circuit 2009)) in which the court vacated EPA's 2006 Final Rule on Aquatic Pesticides
(71 Fed. Reg. 68483, November 27, 2006) and found that point source discharges of biological
pesticides and chemical pesticides that leave a residue, into waters of the U.S. were pollutants
under the CWA. The federal PGP applies where the EPA is the permitting authority.
Approximately 40 authorized state NPDES authorities had issued state PGPs as of November
2011.

Background

On January 7, 2009, the Sixth Circuit vacated the EPA's 2006 NPDES Pesticides Rule under a
plain language reading of the CWA. National Cotton Council of America v. EPA, 553 F.3d 927 (6th
Circuit 2009). The Court held that the CWA unambiguously includes "biological pesticides" and
"chemical pesticides" with residuals within its definition of "pollutant." In response to th
decision, on April 9, 2009, EPA requested a two-year stay of the mandate to provide the agency

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time to develop general permits, to assist NPDES-authorized states to develop their NPDES
permits, and to provide outreach and education to the regulated community. On June 8, 2009,
the Sixth Circuit granted EPA the two-year stay of the mandate. On March 28, 2011, the U.S.
Court of Appeals for the Sixth Circuit granted EPA's request for an extension to allow more time
for pesticide operators to obtain permits for pesticide discharges into U.S. waters. The court's
decision extended the deadline for when permits would be required from April 9, 2011 to
October 31, 2011.

As a result of the Court's decision to vacate the 2006 NPDES Pesticides Rule, NPDES permits are
required for discharges of biological pesticides and of chemical pesticides that leave a residue,
to waters of the United States. EPA proposed a draft PGP on June 4, 2010 to cover certain
discharges resulting from pesticide applications. EPA Regional offices and state NPDES
authorities may issue additional general permits or individual permits if needed.

Background

Montana developed their PGP concurrent to the development of the EPA PGP. The initial
Montana PGP was effective November 1, 2011 and was reissued, effective November 1, 2016,
extending through October 31, 2021. Prior to the PGP, DEO authorized pesticide application to
state waters through their 308 Authorization, which was a temporary authorization to exceed
water quality standards allowed by § 75-5-308, MCA. Since issuing the PGP, DEO requires PGP
authorization to apply pesticides to state waters and the 308 Authorization is no longer allowed
for pesticide application to state waters. Montana's definition of waters of the state is found in
§ 75-5-103, MCA, and covers all waters in Montana other than waste treatment ponds or
lagoons and irrigation waters used up within the system and not returned to state waters. The
definition also includes ephemeral, intermittent and seasonal waters and drainage ways,
natural and man-made.

During their initial permit development in 2011, DEO did PGP outreach by partnering with the
Montana Department of Agriculture to give presentations at pesticide applicator licensing and
certification training sessions. During the 2016 PGP renewal development DEQ permitting staff
met with state resource agency representatives about the permit requirements and also did
outreach with the Montana Wetlands Council, which has federal resource agencies represented
as part of its membership. The DEQ also has a pesticide permit section on their web site, which
has the permit posted available to the public.

For this POR, the EPA reviewed Montana's pesticide general permit number MTG870000 with a
focus on verifying its consistency with NPDES program requirements. The Montana PGP is more
stringent than the EPA PGP in that it requires submission of a Notice of Intent (NOI) by anyone
wishing to apply any amount of pesticides directly to any waters of the state or over or adjacent
to those waters where a portion of the pesticide unavoidably enters the water. The Montana
PGP also contains additional pesticide use categories beyond those listed in the EPA PGP. The
Montana PGP has six (6) pesticide use categories: piscicides; weed and algae control; aerial
application; mosquito control; research and development; and other, for pesticide uses which
do not fit under the other five (5) categories. With these pesticide use categories DEO feels they

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can capture all incidences of pesticide application to waters of the state under their general
permit coverage and has not and does not plan to issue any individual pesticide permits.

Under their 2011 PGP, DEQ had 72 NOIs submitted and authorized for coverage. At the time of
the PQR site visit, 60 NOIs had been submitted under the 2016 PGP. Montana does not have an
electronic NOI submission option for any of their general permits and does not post general
permit information online other than the general permits themselves. NOI submission by
applicants is done by mail or potentially hand delivery. NOIs are reviewed for completeness by
the DEQ. permitting staff and authorization letters are mailed to the applicants. DEQ feels their
NOI review and authorization is quick enough that a pesticide applicator could get an NOi
submitted and an authorization letter from DEQ soon enough that it would not delay any
pesticide applications for pest emergencies. This is probably borne out by the fact that DEQ has
not had any complaints about lack of timeliness in issuing permit authorization letters to PGP
applicants.

The entire PGP program is fee-based, as are the rest of DEQ's permit programs, with both
application fees and annual fees required of PGP applicants to get and maintain authorization
of coverage under the PGP. The fees are highly variable in amount, dependent on the pesticide
application threshold area size and whether the authorization covers a single county or multiple
county area.

Program Strengths

Montana's GENERAL PERMIT For PESTICIDE APPLICATION TO OR OVER SURFACE WATER, Permit
No.: MTG870000, was issued on September 15, 2016, becoming effective November 1, 2016
and expiring October 31, 2021. This permit is the renewal and replacement for their 2011 PGP,
which was developed and put into effect concurrently with the first EPA PGP. Part I of the
permit contains permit coverage eligibility criteria in § B followed by activities ineligible for
permit coverage in § C. Coverage area of the permit and instructions on renewing coverage,
obtaining new coverage, and terminating or transferring coverage are also in Part I, §§ A and D
through G.

Having regulated pesticide applications to state waters previous to the PGP requirement,
Montana easily transitioned their regulatory program to a formal permitting process. During
this and the initial PGP period they timely developed and put in place a general permit and
application procedure. Their permit meets and exceeds the stringency requirement of the EPA's
PGP.

Critical Findings

There are no critical findings or recommended actions to improve the program's
implementation of this component.

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3. Pretreatment

The general pretreatment regulations (40 CFR § 403) establish responsibilities of federal, state,
and local government, industry, and the public to implement pretreatment standards to control
pollutants from industrial users which may cause pass through or interfere with POTW
treatment processes or which may contaminate sewage sludge.

Background

The goal of this pretreatment program review was to assess the status of the pretreatment
program in Montana as well as assess specific language in DEQ's POTW NPDES permits. With
respect to NPDES permits, focus was placed on the following regulatory requirements for
pretreatment activities and pretreatment programs:

•	40 CFR § 122.42(b) (POTW requirements to notify Director of new pollutants or change
in discharge);

•	40 CFR § 122.44Q) (Pretreatment Programs for POTWs);

•	40 CFR § 403.8 (Pretreatment Program Requirements: Development and
Implementation by POTW);

•	40 CFR § 403.9 (POTW Pretreatment Program and/or Authorization to revise
Pretreatment Standards: Submission for Approval);

•	40 CFR § 403.12(i) (Annual POTW Reports); and

•	40 CFR § 403.18 (Modification of POTW Pretreatment Program).

The PQR also summarizes the following: program oversight, which includes the number of
audits and inspections conducted; number of significant industrial users (SlUs) in approved
pretreatment programs; number of categorical industrial users (ClUs) discharging to
municipalities that do not have approved pretreatment programs; and the status of
implementation of changes to the general pretreatment regulations at 40 CFR part 403 adopted
on October 14, 2005 (known as the streamlining rule).

DEQ issues NPDES permits directly to POTWs in Montana, and EPA Region 8 implements the
pretreatment program. For PQRs related to pretreatment, the information in the table below is
typically pulled from ICIS. Data in the table are summarized for 2015 because at the time of this
PQR (January 2017) it could not be determined whether all of the data was in ICIS for 2016.
According to ICIS there are six POTWs in Montana that have approved pretreatment programs.
During the five years from 2011 through 2015, Region 8 conducted a maximum of two visits per
POTW at four of the POTWs (either a pretreatment compliance inspection (PCI) and a
pretreatment compliance audit (PCA), or two PCIs). Region 8 only conducted one visit (a PCI or
PCA) at each of the remaining two POTWs during the five-year timeframe.

State of Montana Pretreatment Program at a Glance 2015

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Number of Approved POTW Pretreatment Programs

6

Number of SlUs in POTWs with Approved Pretreatment Programs

28*

Number of SlUs in POTWs without Approved Pretreatment
Programs

0 reported**

Percent of SlUs with expired Permits

3%***

Number of ClUs in POTWs with Approved Pretreatment Programs

6

Number of ClUs in POTWs without Approved Pretreatment
Programs

0 reported**

Number of Pretreatment Compliance Inspections in 2015

2 (one was for a

nonapproved

program)

Number of Pretreatment Compliance Audits in 2015

2 (one was for a

nonapproved

program)

Percentage of POTWs for which Compliance Monitoring Strategy
(CMS) Goals were met

0%

Date State Program updated for Streamlining Regulations

Not applicable****

NA = Not Available.

* Actual number of SlUs is 22. This data has not been properly entered into ICIS.
The Region is aware of this data discrepancy and is working to fix it.

** Actual number of SlUs and ClUs is 3. This data has not been properly entered
into ICIS. The Region is aware of this data discrepancy and is working to fix it.
*** One SIU of the 28 SlUs reported was identified as without a control
mechanism. One compliance monitoring record entered did not report the
number of SlUs without control mechanisms.

**** EPA directly implements the Montana pretreatment program, therefore,
the streamlining rule provisions were not required to be adopted by the state.

As part of the PQR, two permits were reviewed for POTWs that are known to have approved
pretreatment programs and three for POTWs that are not required to have a pretreatment
program (nonapproved). Also, one industrial user control mechanism (draft Consent Order,
from Region 8) was reviewed from a nonapproved program. From available data, the design
flows for the five Montana POTW permits reviewed range from 1.2 million gallons per day
(MGD) to 34MGD.

Permittee

Permit No.

Pretreatment
Program Required?

Design Flow
Average

Permit Expires

Glendive Water
Resource and
Recovery Facility

MT0021628

No

1.9 mgd

10/31/2019

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Permittee

Permit No.

Pretreatment
Program Required?

Design Flow
Average

Permit Expires

Whitefish

Wastewater
Treatment Facility

MT0020184

No

1.25 mgd

7/31/2020

Red Lodge
Domestic
Wastewater Plant

MT0020478

No

1.2 mgd

4/30/2021

Billings
Wastewater
Treatment Plant

MT0022586

Yes

34 mgd

3/31/20

Missoula
Wastewater
Treatment Facility

MT0022595

Yes

12 mgd

4/30/2020

GSK Biologicals

Consent Order

NA

Unknown

Not
determined -
Consent Order
was a draft

Region S Permit Issuance Practices

The Region 8 Pretreatment Coordinator is staffed within the NPDES permit group and works
with all NPDES authorized states within Region 8 to ensure the appropriate pretreatment
program implementation boilerplate language for POTWs with or without pretreatment
programs are included in the State-issued NPDES permits. The Region 8 Pretreatment
Coordinator provides the pretreatment boilerplate language to the NPDES authorized states
and reviews permits at public notice or in draft (depending on the State) to ensure the language
is appropriate. The Region 8 Pretreatment Coordinator strives to review as many municipal
NPDES permit for all states to ensure the pretreatment language is appropriate and provide
comment if corrections are needed. The NPDES permit applications are not reviewed by the
Pretreatment Coordinator but the justifications in the fact sheets are evaluated to determine if
the State appropriately evaluated industrial contribution information, required to be in the
permit application for reasonable potential or justification if a pretreatment program is
required or not. In addition, the Region 8 Pretreatment Coordinator evaluates the NPDES
permits during the State PQR and provides PQR action items for missing or incorrect language
in the report.

For Montana, because this state is not authorized for pretreatment, the annual reports reviews,
local limits reviews, and enforcement actions are performed by the EPA Region 8 permits and
enforcement team. The Region 8 Pretreatment Coordinator and the NPDES Enforcement
Pretreatment contact also evaluate control of ClUs/SIUs in non-approved programs in these
States. EPA Region 8 notifies ClUs discharging to unapproved POTWs of Pretreatment
requirements via letter, and also conduct compliance evaluation and data entry for Montana.

Proerem Strengths

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Based on this PQR, both permits reviewed for POTWs with pretreatment programs incorporate
all General Pretreatment Regulations by reference. The permits state that permittees must
operate a POTW pretreatment program in accordance with the federal Clean Water Act, the
federal General Pretreatment Regulations at 40 CFR Part 403, and the approved pretreatment
program and any approved modifications. These permits also give the date when the
pretreatment programs were approved. The fact sheets for POTWs with approved
pretreatment programs specify that a pretreatment program is required and describes the
industries.

Critical Findings

Region 8 is not meeting Compliance Monitoring Strategy (CMS) goals in Montana1. Region 8 did
not meet the CMS goal of at least one audit and two inspections within 5 years (2011-2015) at
any of its six POTWs with approved pretreatment programs (zero percent).

Approved Pretreatment Programs

Neither of the NPDES permits for POTWs with approved pretreatment programs contain the
notification requirements for 40 CFR 122.42(b)(1) for any new introduction of pollutants to the
POTW.

The Billings permit does not include the requirement at 40 CFR 122.44(j)(l) to "Identify, in
terms of character and volume of pollutants, any Significant Industrial Users discharging into
the POTW subject to Pretreatment Standards under section 307(b) of CWA and 40 CFR Part
403."

The Billings and Missoula permits were somewhat inconsistent and the most notable difference
was that Missoula contained the updated language consistent with the 2005 streamlining rule.2
Although the permit for Billings incorporates 40 CFR part 403 by reference, and therefore can
be considered to include the updated streamlining rule language, it does not specifically include
the following requirements, which are included in the Missoula permit:

•	Reference to the updated 2004 Limits Development Guidance (it references the 1987
version)

•	Updated language for slug discharge control plan evaluations at 40 CFR 403.8(f)(2)(vi)

•	Best management practices language in industrial user permits at 40 CFR
403.8(f)(l)(iii)(B)(3)

•	Requirements to control slug discharges at 40 CFR 403.8(f)(l)(iii)(B)(6)

•	Public notification requirements at 40 CFR 403.8(F)(2)(viii)

1	CMS goals are one PGA and two PCIs conducted per 5-year NPDES permit term. This PQR does not look at each
POTW's NPDES permit term, but it looks at compliance for the period of 2011 through 2015.

2	The Billings permit was originally issued Feb 26, 2015, then modified June 9, 2015. The Missoula permit was
issued March 31, 2015.

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The Missoula permit was not clear as to whether a RPA was conducted for development of
Missoula's water quality-based limits that considered all pollutants common for the types of
industries discharging to the POTW.

Non-Pretreatment Program POTWs (Nonapproved)

All three permits for POTWs without pretreatment programs (Glendive, Whitefish, Red Lodge)
do not contain notification requirements for requirements at 40 CFR 122.44(j)(l) to identify
SlUs.

None of the permits for non-pretreatment program POTWs contain a reopener clause that
specifies that the permit can be reopened to require development of a pretreatment program,
if deemed necessary.

Industrial User Permit

The control mechanism for the industrial user reviewed for this PQR is the draft Administrative
Order on Consent (Consent Order) for GlaxoSmithKline Biologicals (GSK). GSK discharges
wastewater to the City of Hamilton, Montana POTW. The Consent Order was reviewed to
determine whether it met control mechanism content requirements at 40 CFR
403.8(f)(l)(iii)(B). The Consent Order contained, or incorporated by reference, most of the
required contents. However, the Consent Order does not prohibit dilution as a substitute for
treatment, as required at 40 CFR 403.6(d).

Also, there appears to be a typographical error in the GSK Consent Order. It states "The
Respondent shall comply with the prohibitions listed in 40 CFR Part 402." Part 402 is Reserved
and it is likely that this should be 40 CFR Part 403.

4, Siornv,voter

The NPDES program requires stormwater discharges from certain MS4s, industrial activities,
and construction sites to be permitted. Generally, EPA and NPDES-authorized states issue
individual permits for medium and large MS4s and general permits for smaller MS4s, industrial
activities, and construction activities. Montana uses general permits for their stormwater
regulation, having general permits for industrial, construction and MS4 stormwater facilities.

Background

The Montana stormwater permits at the time of the DEO. PQR was as follows: the GENERAL
PERMIT FOR STORMWATER DISCHARGES ASSOCIATED WITH SMALL MUNICIPAL SEPARATE
STORM SEWER SYSTEMS (MS4s) (MS4GP), Permit No.: MTR040000; the MULTI-SECTOR
GENERAL PERMIT FOR STORMWATER DISCHARGES ASSOCIATED WITH INDUSTRIAL ACTIVITY
(MSGP), Permit No.: MTR000000; and, the GENERAL PERMIT FOR STORMWATER DISCHARGES
ASSOCIATED WITH CONSTRUCTION ACTIVITY (CGP), Permit No.: MTR100000. The MS4 GP is the
newest iteration of DEQ's MS4 regulatory tool and was developed over the past year. This
permit was in draft format when reviewed as part of the PQR and not finalized and issued until
after the PQR site visit. The MSGP is the primary regulatory mechanism DEQ applies to
industrial sites though some industrial facility types, such as sand and gravel mining, have other

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DEQ permits applicable to their operations. The MSGP was issued December 6, 2012 and is
effective February 1, 2013 through January 31, 2018. Montana's CGP covers all types of
construction activities within Montana's jurisdiction. Issued October 25, 2012 and in effect from
January 1, 2013 through December 31, 2017, the CGP is the permit with the largest number of
covered sites, though the individual sites covered are ever changing as construction activities
begin, end and site stabilization occurs.

Stormwater Discharges from Municipal Separate Storm Sewer Systems (MTR040000)

For Montana, EPA Region 8 reviewed the MS4GP, which was in draft form with the public
notice comment period having ended just at the time of the PQR. This permit was issued on
November 30, 2016 and becomes effective January 1, 2017, expiring December 31, 2021.
Permittees submitting NOIs to DEQ will have coverage under the MS4GP beginning January 1,
2017 and will have authorization letters sent to them by DEQ. Those facilities that have
stormwater discharge associated with industrial or construction activity are required to obtain a
separate MPDES permit, either MSGP or CGP for their activities.

The MS4GP follows the standard format of general permits, containing all of the required
eligibility, authorization and application information in Part 1 of the permit. Part 1 of the
MS4GP also contains the coverage area of the permit, which is traditional MS4s (cities,
counties) and non-traditional MS4s (military bases, universities) in Montana. As with all of
Montana's general permits, the MS4GP itself is posted on the DEQ website, however no NOI or
reporting information is available online.

The primary requirements of the MS4GP are in part II, Stormwater Management Program, of
the permit. The six (6) minimum measures are in this section in tabular format with sub-
measures for each and bulleted best management practices (BMPs) and specific compliance
timelines. The remainder of the MS4GP meets the CFR requirements addressing the
stormwater management plan (SWMP), monitoring, record-keeping and reporting as well as
the standard conditions language. This new MS4GP also requires electronic submission of the
required reports and attachments through NetDMR. Since the PQR review of the MS4 GP, a
Montana-based conservation group has challenged it by filing suit in Montana District Court.

Program Strengths

DEQ has developed a well written, enforceable permit.

Critical Findings

There are no critical findings or recommended actions to improve the program's
implementation of this component.

Multi-Sector General Permit for Stormwater Discharges Associated with Industrial Activity
(MTR000000)

EPA Region 8 reviewed the MSGP, which has been in effect since February 1, 2013 and is the
only general permit DEQ has for industrial stormwater within Montana. The MSGP includes all
the Standard Industrial Classification codes listed in the EPA's MSGP but specifically excludes

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from coverage "industrial facilities or activities...whose storm water discharges are subject to
federal Effluent Limitations Guidelines." Those facilities are required to obtain a separate
MPDES permit for their industrial activities.

The MSGP follows the standard format of general permits, containing all of the required
eligibility, authorization and application information in Part 1 of the permit. Part 1 of the MSGP
also contains the transfer, termination and conditional exclusion for no exposure requirements
for permittees. As with all of Montana's general permits, the MSGP itself is posted on the DEQ
website, however no NOI or reporting information is available online. Montana requires
permittees submitting first-time NOIs for new industrial facilities or for activities that do not yet
exist and will be constructed, to formally consult with the Montana Natural Heritage Program
and Natural Resource Information System and the State Historic Preservation Office and submit
the response from those agencies with their NOI and storm water pollution prevention plan
(SWPPP). If those agencies determine a potential adverse effect from the activities the
permittee is required to work with the applicable and appropriate regulatory agencies to
mitigate any adverse effects.

The TBEL and WQBEL limitations are detailed and complete. Some language in the TBEL section
could be improved. Maintenance of control measures in the non-numeric TBEL section of the
MSGP simply says the permittee "must regularly inspect, test, maintain and repair" all the
systems but there is no explanation or definition of the term "regularly," which makes it an
unenforceable requirement. The maintenance section would be better written if it was similar
to the corrective action deadlines requirements in the WQBEL section of the permit. That
section gives deadlines for documenting conditions such as unauthorized discharges or changes
in the nature of pollutants, which could require changes to the control measures. It has a
separate deadline for correcting or modifying the control measures and documenting the
action. Having that sort of language in the maintenance of control measures of the TBEL section
would make it an enforceable requirement.

The special conditions portion of the permit contains the SWPPP requirements in detail and
specific requirements for each industry sector. The SWPPP section also addresses SWPPP
requirements if the facility has the potential to discharge pollutants to a water impaired for
those pollutants and how to address TMDL WLAs if an approved TMDL is in place for the water
to which the permittee may discharge. The permit requires SWPPP modification whenever any
of the conditions triggering corrective actions occur and the SWPPP modification must be
completed within the same time requirements as the corrective actions deadlines listed in the
permit. The MSGP does not require permittees submit the SWPPP to DEQ as a standard
practice but does have the requirement that permittees do so on request of DEQ. The SWPPP is
kept at the permitted facility for DEQ review during compliance inspections and the MSGP is
silent on whether any of the SWPPP information is accessible to the public.

The remainder of the MSGP meets the CFR requirements addressing monitoring, record-
keeping and reporting as well as the standard conditions language. There is nothing in the
MSGP addressing electronic reporting, however the permit went into effect in early 2013,
before DEQ was collecting electronic reporting data. The DEQ is requiring electronic reporting

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from all permittees as of December 21, 2016, and stopped sending blank DMR forms to
permittees in September 2016 to encourage them to begin electronic reporting. The next
iteration of the MSGP will contain electronic reporting requirement language.

Program Strengths

The MSGP has a robust SWPPP section, which, if followed, will ensure that adequate SWPPPs
are developed, followed and modified as needed at permitted facilities.

Critical Findings

There are no critical findings for component. However, the EPA does recommend DEO change
the language for inspecting and maintaining stormwater control structures from "regularly" to
something that is enforceable.

General Permit for Stormwater Discharges from Construction Activity (MTR100000)

EPA Region 8 reviewed the CGP, which has been in effect since January 1, 2013 and expires
December 31, 2017. This is the only general permit DEQ has for construction stormwater
regulation within Montana. DEQ. is in the process of developing the next CGP, to be issued and
effective prior to the expiration of this permit and is conducting stakeholder meetings in
various locations of Montana to obtain comment on the construction stormwater program and
how it could be improved.

The Montana CGP contains all information a permittee needs to successfully comply with the
permit requirements and all the standard requirements of the CFR. As of January 1, 2014,
Montana has an additional requirement of SWPPP Administrator training prior to assuming
SWPPP Administrator duties.

Program Strengths

Montana has requirement that a primary SWPPP Administrator plus any other SWPPP
Administrators must be designated in the SWPPP and must have documentation of specific
training on storm water controls and BMPs, pollution prevention procedures, inspections and
reporting. This helps ensure that adequate SWPPPs are developed, followed and modified as
needed at permitted facilities.

Critical Findings

There are no critical findings or recommended actions to improve the program's
implementation of this component.

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NDINGS

Section 122.44(d) of the Title 40, Code of Federal Regulations requires permits to contain any
requirements in addition to or more stringent than promulgated effluent limits or guidelines
necessary to achieve water quality standards, including narrative criteria for water quality. This
is done by determining whether a pollutant is being discharged at a level that will cause, has a
reasonable potential to cause, or to contribute to an excursion above any water quality
standard including narrative criteria for water quality (reasonable potential). The EPA reviewed
all eleven (11) individual permits selected for the PQR to evaluate Montana's effectiveness in
determining reasonable potential for pollutants of concern being discharged from the
permitted facilities. The RPA is for pollutants of concern and is the first step toward developing
WQBELs for particular pollutants to allow the permit writer to compare the technology and
water quality effluent limits and select the more stringent of the two for the permit.

Several of the permits need the rationale for selecting pollutants of concern better summarized
up front. The fact sheet boilerplate language mentions that any parameter with an ELG and
thus a TBEL, is considered as a POC but sometimes none of the facility's effluent parameters
with a TBEL were identified as pollutants of concern and no reason was given why. Those
effluent parameters with a TBEL still need to be reviewed to determine if the TBEL is protective
or if a WQBEL is needed to protect the receiving water quality. That review is generally done by
developing a WQBEL, comparing the WQBEL to the TBEL and selecting the most stringent of
them as the permit effluent limit.

RPA results for the Helena water treatment plant (MT0027820), which discharges to a water
with an approved TMDL, had confusing language discussing the TMDL and the RPA while
explanations for pollutants not addressed in the TMDL were very clear.

For the ExxonMobil (MT0000477) oil refinery, DEQ concluded the arsenic in the facility's
effluent would not cause, have a reasonable potential to cause, or contribute to a water quality
excursion because the refinery withdraws cooling water containing an arsenic load from the
receiving water and does not add to that arsenic load before the cooling water is discharged
into the same water body. It is not clear that the RPA for temperature is conservatively
accounting for seasonal temperature changes in the receiving water. The RPA description says
25th percentile will be used where the water quality standard is relative to the background. This
appears to be the case for temperature but the permit writer used the 75th percentile in the
RPA. This was commented on by the Montana Fish Wildlife and Parks during the public
comment period.

The RPA for the City of Red Lodge (MT0020478) was called preliminary because there was only
one sample from the receiving stream. The Technical Support Document For Water Quality-
based Toxics Control (March 1991) provides methods to develop WQBELs with limited data and

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based on the effluent data for that facility there is reasonable potential and since there is
reasonable potential WQBELs are required. The analytical results for toxic pollutants at this
facility were listed as less than detection limit but no detection limit was provided for the
analyses so the permit writer used the RRV from DEQ Circular 7, Montana Numeric Water
Quality Standards to conduct the RPA.

The RPA for the Stillwater East Boulder Mine (MT0026808) was not clearly explained. For outfall
001, the fact sheet said no RPA was conducted for temperature because there was no new
data, however, the fact sheet did not explain the reason there was no new data is that outfall
was never constructed. For outfall 002, an RPA was not performed for temperature, nutrients
or ammonia; at outfall 003, no RPA was done for nutrients. For temperature and total nitrogen,
where the reasonable potential and effluent limits were changed in response to public
comments, the fact sheets are not modified. Instead Montana DEQ. addresses changes in the
response to comments, which then becomes part of the fact sheet. The analysis and reasoning
for the changes to the reasonable potential calculations and effluent limits were not clearly
summarized in the response to comments document.

Program Strengths

Montana DEQ does have procedures in place for conducting RPAs and developing WQBELs.
Critical Findings

DEQ is inconsistent in following the RPA and WQBEL procedures and documenting the process
used to do RPAs. One of the reasons commonly given for not doing an RPA or developing
WQBELSs is limited effluent data. As detailed in the Monitoring and Reporting section on page
19 and the Documentation of Effluent Limitations section on page 25 of this report, 40 CFR §
122.48 requires permits to contain monitoring requirements sufficient to yield data which are
representative of the monitoring activity. 40 CFR § 122.44(d) requires effluent limitations for all
pollutants or pollutant parameters "which are or may be discharged at a level which will cause,
have the reasonable potential to cause, or contribute to an excursion above any State water
quality standard." Not developing WQBELs where an RPA shows a pollutant will cause, have the
reasonable potential to cause, or contribute to an excursion above any State water quality
standard does not meet the requirements of 40 CFR 122.44(d).

Section 122.44(d)(l)(ii) of Title 40 Code of Federal Regulations requires that when determining
if a discharge will cause, has the reasonable potential to cause, or contribute to an excursion
above a water quality standard, the permit writer, where appropriate account for "the dilution
of the effluent in the receiving water." In ARM § 17.30.1344(2)(b), DEQ's BER adopted and
incorporated by reference 40 CFR § 122.44. Montana also has specific mixing zone
requirements promulgated in ARM § 17.30.501 etseq. The purpose of the mixing zone
requirements is to protect existing beneficial uses of waters to which pollutants discharge. The
focus of EPA Region 8's mixing zone review is to verify that DEQ's permits and fact sheets

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NPDES Permit Quality Review

properly determine the need for mixing zones for particular effluent streams and correctly set
the size of mixing zones on an individual parameter basis, as required by Montana
administrative rules. The EPA reviewed all eleven (11) individual permits on the PQR list to
determine how Montana is following its mixing zone (MZj requirements.

Generally, it is unclear if DEQ's MZ procedure meets their promulgated requirements. Many of
the MZs listed in the permits are carried over from previous permits but no documentation of
how the MZ was originally determined is carried over from the previous permit. The ARM
allows MZs in permits issued prior to April 29,1993 to be designated in a renewed permit
unless there is evidence the mixing zone will impair any existing or anticipated uses. However,
carrying over a previous mixing zone designation without also including the description of how
the mixing zone was originally determined does not provide adequate information for the
public to review and use in formulating any comments on the draft permit.

A specific example is the Red Lodge (MT0020478) fact sheet which references the 2009 permit
as the basis for the MZ, but the 2009 fact sheet references a 2001 study, which was not found
in the file. This MZ narrative describes a MZ for the permit discharge but does not specify for
what parameters the mixing zone was established. Red Lodge discharges more than 1 million
gallons per day of effluent so the ARM require an evaluation to be done to see if it qualifies for
a standard MZ but no evaluation language was in the fact sheet. Overall the Red Lodge MZ
narrative lacks enough information to determine if the MZ determination meets state or
federal requirements.

The Bonner Property Development (MT0000205) and City of Kalispell (MT0021938) MZ
narratives describe the mixing zone and list effluent parameters of nitrate/nitrite, ammonia and
total residual chlorine for Bonner and ammonia, copper and nitrate for Kalispell, however those
same parameters were previously determined by the permit writer to have no reasonable
potential and no effluent limits were in either permit for those parameters so it is unclear why
those mixing zone were even developed. That lack of clarity is compounded in the Bonner fact
sheet narrative by language indicating the mixing zone was developed according to the ARM
guidelines or requirements. Then there is no description of why the size of the MZ was selected
or if mixing is complete within the boundary or the relation to the critical stream flow (70,10 or
14Q5) though they are mentioned in the MZ narrative. Montana's MZ ARM also requires an
applicant for a MZ to indicate the type of MZ they applied for and to supply sufficient detail for
DEO to make a determination regarding the authorization of the MZ. That type of language was
generally not in the files. The fact sheets for ExxonMobil (MT0000477), Whitefish (MT0020184),
Kalispell (MT0021938), Billings (MT0022586) and the Stillwater East Boulder Mine (MT0026808)
contain no description of why a MZ size was selected, other than it was not greater than a
certain number of stream widths downstream (Kalispell) or did not affect existing uses
(ExxonMobil).

The Town of Philipsburg (MT0031500) had a 280-foot long MZ for ammonia carried over from
the 2007 MPDES permit though this permit's RPA showed no reasonable potential and there is
no effluent limit for ammonia in the permit. During the last permit period the facility at times

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discharged up to 3 times its design flow, resulting in decreased effluent dilution. Because of
that DEQ is requiring an MZ study for ammonia as a special condition of the permit.

There is one excellent MZ narrative among the permits reviewed by the EPA. The City of
Missoula permit has a MZ based on a mixing zone study, which was required by the previous
permit; the mixing zone size is based on the complete mixing determined in that mixing zone
study.

Critical Findings

DEQ's permit writers are not always following the ARM requirements pertaining to MZs, and
not documenting how the MZ was determined, including calculations and/or reasoning behind
MZ decisions and whether mixing is complete within the MZ.

V. ACTION ITEMS

This section provides a summary of the main findings of the review and provides proposed
action items to improve Montana NPDES permit program. This list of proposed action items will
serve as the basis for ongoing discussions between Region 8 and Montana as well as between
Region 8 and EPA HQ. These discussions should focus on eliminating program deficiencies to
improve performance by enabling good quality, defensible permits issued in a timely fashion.

The proposed action items are divided into three categories to identify the priority that should
be placed on each Item and facilitate discussions between Regions and states.

•	Critical Findings (Category One) - Most Significant: Proposed action items will address a
current deficiency or noncompliance with respect to a federal regulation.

•	Recommended Actions (Category Two) - Recommended: Proposed action items will
address a current deficiency with respect to EPA guidance or policy.

•	Suggested Practices (Category Three) - Suggested: Proposed action items are listed as
recommendations to increase the effectiveness of the state's or Region's NPDES permit
program.

The critical findings and recommended actions proposed should be used to augment the
existing list of "follow up actions" currently established as an indicator performance measure
and tracked under EPA's Strategic Plan Water Quality Goals or may serve as a roadmap for
modifications to the Region's program management.

The fact sheets for all the permits clearly describe the facilities, processes, outfalls, waste
streams and outfall locations relative to the receiving waters. Proposed action items to help
Montana strengthen its NPDES permit program include the following:

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Category 3 - The DEQ should consider reviewing its rules and policies related to administrative
extension of permits to ensure current practices are in agreement with its rules.

Category 3 - The DEQ. should develop and use consistent standards, procedures, and
terminology concerning permit application and completeness requirements in order to be
transparent and consistent about when a permit application is complete and when a permit is
allowed to be administratively extended.

B.	Technology-based Effluent Limitations

Montana DEQ does an overall good job in developing TBELs. Proposed action items to help
Montana strengthen its NPDES permit program include the following:

Category 1 - As required by 40 CFR § 124.56, when developing BPJ limits Montana DEQ needs
to provide a basis for those limits beyond general statements of achievability.

Category 1 - As required by 40 CFR § 124.56, Montana DEQ needs to ensure that limits carried
over from previous permits include the justification and/or documentation and calculations for
the original effluent limits to show that the limit is still adequate and applicable.

Category 3 - Montana DEQ should consider including review of ELG-base effluent limit
calculations as part of their peer review process if that is not currently being done.

C.	Water Quality-Based Effluent Limitations

Montana DEQ does a very good job of clearly identifying the receiving waters, water quality
standards, impairment status and referencing TMDLs. The fact sheets address all identified
POCs but are inconsistent in identifying POCs. Most fact sheets appeared to have template
language of general factors considered for POC selection but no rationale for how the individual
POCs were selected and parameters in the final POC list were not in the discussion on POC
selection. Required content of NPDES fact sheets is promulgated in 40 CFR §§ 124.8 and 124.56,
which are both applicable to state programs. These regulatory sections require summaries and
explanations of the basis for permit conditions and why they are applicable. Proposed action
items to help Montana strengthen its NPDES permit program by improving fact sheet
development include the following:

Category 2 - Montana DEQ needs to refine the POC template language to indicate that permit
writers need to explain the rationale of how they selected POCs, develop a consistent base list
of POCs for POTWs and ensure a complete list of POCs is provided in the fact sheet.

D.	Monitoring and Reporting

Montana DEQ provided good explanations of monitoring locations, monitoring requirements
and the need to meet 40 CFR Part 136 methods of analysis and required reporting values. For
various reasons, such as failing to monitor by the permittee, Montana does not always get
adequate, quality monitoring data submitted with permit applications. This prevents Montana

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DEQ from having adequate data to conduct an RPA to see if pollutants will cause, have
reasonable potential to cause, or contribute to an excursion above a water quality standard,
which then requires development of a WQBEL. Proposed action items to help Montana
strengthen its NPDES permit program include the following:

Category 1 - Montana DEQ should develop a procedure to determine if monitoring information
submitted with permit applications meets their requirements for conducting RPA and WQBEL
development prior to determining that a permit application is complete. The procedure should
include processes to request or require supplemental monitoring information from perm tees
necessary to conduct an RPA and develop WQBELs as needed, in accordance with 40 CF §
122.44(d).

Suggested Action - Montana DEQ has permit language meeting the requirements of 40 CFR §
122.48, requiring permittees to conduct enough, quality monitoring to meet their permit
requirements and to supply representative monitoring information with permit applications for
DEQ to conduct an RPA and develop WQBELs as needed. As Montana DEQ says the reason for
not always getting enough, quality data is often permittees not conducting the required
monitoring, the permitting group should coordinate with the enforcement group to address
this discrepancy.

E,	? - : - • ¦ : . : - "

Montana MPDES permits generally contain all standard conditions. They commonly require
mixing zone and source assessment studies that will be beneficial in future permit development
and the need for the studies is typically well explained. Compliance schedules do not contain
measurable milestones and commonly contain conditions not associated with meeting effluent
limitations or are for activities which do not lead to compliance with an effluent limitation by
the end of the compliance schedule [33 U.S.C §§ 1311(b)(1)(C) and 1362(17) also 40 CFR §§
122.2 and 122.47(a)]. Proposed action items to help Montana strengthen its NPDES permit
program include the following:

Category 1 - Montana DEQ needs to develop a procedure to guide permit writers in making
consistent determinations as to whether permit requirements should be placed in special
conditions or into a compliance schedule to ensure compliance schedules meet the definition in
Part 502 of the CWA [33 U.S.C, § 1362(17)].

Category 1 - Montana DEQ needs to ensure permits with compliance schedules contain
appropriate and defensible interim milestones for those compliance schedules as required by
40 CFR § 122.47(a).

F,	Administrative Process (including public notice)

Montana DEQ has good documentation of permit public notices. All public comments they get
and their reply to the comments adhere to regulatory requirements. Permit modifications are

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NPDES Permit Quality Review

adequately explained and documented including any public notices for major permit
modifications. Proposed action items to help Montana strengthen its NPDES permit program
include the following:

Category 3 - The public access file room folders vary in completeness with regard to containing
permit applications, public comments and response to comments. The EPA suggests complete
copies of all documents be included in those folders as originals are archived in a separate
building and not immediately available when requested.

Category 3 - Montana could improve the organization of the administrative record to make it
easier to locate documentation of permit decisions and permit correspondence.

G. ¦ " •' i'1 1	•

Most of Montana's permit administrative records are complete and there are some very well
written justifications and explanations of how effluent limits were determined or modified.
However, the quality of documentation and justification varies widely between permits with
some permits justifications and explanations being non-existent. Much of the inconsistency
seems to occur when there are changes made between the draft and final permits due to
comments on the draft permit. Montana DEQ. does not modify fact sheets in response to
comments. Instead they address any changes in the response to comments document, which
then becomes part of the fact sheet. The analysis and reasoning for the changes to permits are
not always clearly summarized and explained in response to comments documents. Proposed
action items to help Montana strengthen its NPDES permit program include the following:

Category 1 - As required by 40 CFR § 124.56, Montana DEQ. needs to ensure justification and
explanation for permit decisions is contained in the Fact Sheets, which are part of the
administrative record when changes to permits are made from the draft to the final versions.

Proposed actions items for core topic areas are provided below.

1. - • '"2fits-

Montana has developed numeric nutrient criteria for wadeable streams. The criteria are for TN
and TP and are vary down to Level 3 Ecoregion with some area broken out by Level 4 Ecoregion.
Montana develops permit limits for nutrients and has a nutrient variance procedure for
facilities which cannot meet the nutrient effluent limits at this time. Permittees must apply for a
nutrient variance and must conduct a nutrient reduction optimization study as part of the
variance. Montana reviews issued variances every 3 years to evaluate whether the permittee
still needs the variance, whether the variance level can be made more stringent and how the
permittee is proceeding toward meeting the final effluent limit. Proposed action items to help
Montana strengthen its NPDES permit program include the following:

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There are no recommended action items to improve the program's implementation of this
component.

.2, Pesticides

Montana DEQ developed a PGP concurrently with the first EPA PGP and reissued their section
iteration PGP in autumn 2016. The Montana PGP is more stringent that the EPA PGP, containing
more pesticide use categories and requiring all pesticide applicators to submit an NOI for
permit coverage for any amount of pesticide application to state waters. Proposed action items
to help Montana strengthen its NPDES permit program include the following:

There are no recommended action items to improve the program's implementation of this
component.

3,

Montana MPDES permits reviewed for both approved and nonapproved pretreatment
programs did not contain all the required pretreatment language. Proposed action items to
help Montana strengthen its NPDES permit program include the following:

Category 1 - Region 8 must ensure that all the permits for POTWs with approved pretreatment
programs contain the notification requirements for 40 CFR 122.42(b)(1) for any new
introduction of pollutants and will do so by closely reviewing permits for POTW with
pretreatment programs as they are drafted for renewal.

Category 1 - Region 8 must ensure that all permits contain requirements at 40 CFR §
122.44(j)(l) to identify SlUs.

Category 1 - Region 8 must ensure that the 40 CFR Part 403 language that is specified in the
permits for POTWs with approved pretreatment programs is the most current language at 40
CFR Part 403.

Category 1 - Region 8 must ensure that industrial user control mechanisms prohibit dilution as
a substitute for treatment as required by 40 CFR § 403.6(d).

Category 2 - Region 8 should ensure that it meets CMS goals for conducting inspections and
audits at POTWs in Montana.

Category 2 - DEQ should revise the permit reopener clause for nonapproved POTW program
NPDES permits to ensure that the permits could be reopened to require a pretreatment
program if deemed necessary.

Category 3 - DEQ should discuss in fact sheets for all POTWs with approved pretreatment
programs whether the RPA conducted to develop water quality-based limits included analysis
of all pollutants common for the types of industries discharging to the POTW.

Category 3 - Region 8 should fix the typographical error in the GSK Consent order from
reference to 40 CFR Part 402 to 40 CFR part 403.

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4, Siorm\¥Q.ier

Montana has a strong stormwater program across the three stormwater components of MS4,
Industrial and Construction. The Montana MS4GP and CGP are well written and follow EPA
guidelines and requirements. EPA notes that the MS4GP permit was not evaluated for
compliance with the MS4 General Permit Remand Rule, published on December 9, 2016 (81
Fed. Reg. 89320), due to the timing of the state's small MS4GP issuance. When Montana begins
the process of issuing its next small MS4GP, EPA is available to offer its assistance on ways the
general permit can be modified to ensure that it is consistent with the requirements of the MS4
General Permit Remand Rule. The MSGP is also well written but contains some ambiguous
language in the stormwater control section, requiring stormwater controls to be inspected
"regularly." That is an unmeasurable and unenforceable term used in a permit section that
requires a measurable metric. Proposed action items to help Montana strengthen its NPDES
permit program include the following:

Category 2 - Montana DEQ needs to ensure permits requiring specific actions at specific times,
such as stormwater control measure inspections, by the permittee contain specific language
describing the times or time intervals required.

Proposed action items for special focus areas are provided below.

Montana does have procedures in place for conducting RPAs and developing WQBELs.

However, RPAs are not consistently done on all facility effluent parameters with the reasons
given being lack of data or sometimes no reasons being given. The EPA's TSD does provide
procedures for RPA with limited data, which Montana could use when they have limited data.
Documentation of the RPA procedure, development of WQBELs and subsequent changes to the
WQBELs is sometimes inconsistent among permits. Proposed action items to help Montana
strengthen its NPDES permit program include the following:

Category 1 - Montana DEQ needs to develop a procedure to ensure their permits contain
monitoring requirements sufficient to yield data which are representative of the monitoring
activity [40 CFR § 122.48] so that permittees meet the monitoring requirements of the permit
and permit writers have representative, defensible data to conduct RPAs and develop WQBELs
when writing permits.

Category 1 - Montana DEQ needs to develop required effluent limitations for all pollutants or
pollutant parameters "which are or may be discharged at a level which will cause, have the
reasonable potential to cause, or contribute to an excursion above any State water quality
standard." [40 CFR § 122.44(d)],

March 2018

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Category 1 - Montana DEQ needs to develop a procedure to ensure permit writers adequately
document the RPA and any subsequent WQBEL development in the permit fact sheet. Montana
needs to ensure the procedure requires any subsequent changes to the RPA or WQBELs also be
explained and justified in the fact sheet [40 CFR §§ 122.44(d) and 124.8].

Category 3 - If the analytical laboratory services available to permittees cannot consistently
analyze effluent samples to the level required by DEQ's RRVs due to technology limitations,
then DEQ should consider revising the RRVs to levels which are reasonably attainable by the
analytical laboratories available to permittees.

Generally, it is unclear if DEQ's MZ procedure meets their promulgated requirements. Many of
the MZs listed in the permits are carried over from previous permits but no documentation of
how the MZ was originally determined is included. The MZ narratives in Montana's permits
usually cite that the MZ was developed in accordance with the ARM. However that statement is
often not followed up with any explanation of why a mixing zone was set for a particular
parameter, why the mixing zone was needed for that parameter, how the mixing zone size was
determined or if mixing is complete within the mixing zone. Proposed action items to help
Montana strengthen its NPDES permit program include the following:

Category 2 -Montana DEQ needs to ensure MZ development is adequately documented in the
permit fact sheet to include calculations and/or reasoning for the MZ decisions, past, or
present, and if a specific MZ size is set, whether the mixing is complete within the MZ
boundary.

Category 3 - Montana DEQ should consider procedures or guidance to assist permit writers in
following Montana's promulgated requirements.

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•' t^v > * . r\ i\ is'-1 , »v "\u , *\ ^ u >ii.^ ro;%







Draft,
Modification,

Core Review

National Topics

Regional
Topics

PQR

ID
NO.

NPDES No.

Permit Name

Reissue or

Final,
Reviewed
real-time

POTW
(issue date)

Non-
POTW
(issue
date)

Major

Minor

Nutrients

Pre-

treatment

RPA

Mixing
Zones

1

MT002Q478

CITY OF RED LODGE

F

3/4/2016

X



X

X

X

2

MT0Q00205

BONNER PROPERTY
DEVELOPMENT

F



7/13/2015

X







X

X

3

MT0000477

EXXONMOBIL
REFINING AND
SUPPLY CO

F



6/18/2015

X



X



X

X

4

MT0020184

CITY OF WHITEFISH



6/9/2015



X



X



X

X

5

MT0021938

CITY OF KALISPELL



6/30/2015



X



X



X

X

8

MT0022594

CITY OF MISSOULA

F

3/31/2015



X







X

X

7

MT0022586

CITY OF BILLINGS

F

2/26/2015



X







X

X

8

MT0030287

ROCK CREEK MINE

F



12/31/2015



X





X

X

9

MT0031500

TOWN OF
PHILIPSBURG

F

8/26/2015





X

X



X

X

10

MT002680S

STILLWATER E
BOULDER MINE

F



9/28/2015



X

X



X

X

11

MT0028720

CITY OF HELENA WTP

F

10/11/2016





X





X

X



General Permits



12

MTR040000

MS4 GP

D

PN

9/19/2016















13

MTR100000

Construction SW GP

F

10/25/2012















14

MTG870000

Pesticide GP

F

9/15/2016















15

MTR000000

Industrial SW GP

F

12/6/2012















March 2018

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