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Air Permit Process
Review by EPA Andrew D. Shroads, QEP
614.887.7227 • ashroads@scainc.com
PO Box 1276
Westerville, OH 43086
While every effort has been made to ensure the accuracy of this information, SC&A is not
responsible for any errors or omissions. This information is not a substitute for professional
environmental consulting services. If legal services are required, consult with legal counsel.
EPAReviewing FederalAir Permit Processes
U.S. Environmental Protection Agency (EPA) has issued
several new guidance documents modifying aspects of the
Federal air permitting processes
• January 25, 2018: Memorandum revoking once-in, always-
in policy
• March 13, 2018: Memorandum on project emissions
accounting for New Source Review analysis
• April 17, 2018: Memorandum on Significant Impact Levels
for Ozone and Fine Particulates
• April 30, 2018: Letter regarding common control for Title V
facilities
2
Types of FederalAir Permits
Installation Permits
1. Non-Attainment New Source Review (NNSR)
◦ Major sources in non-attainment areas
◦ Requires lowest achievable emissions rate (LAER)
◦ Requires emissions offsets
2. Prevention of Significant Deterioration (PSD)
◦ Major sources in attainment areas
◦ Requires best available control technology (BACT)
◦ Requires air emissions dispersion modeling
Operating Permit
1. Title V / Part 70
◦ Major sources of hazardous air pollutants (HAPs) and
criteria pollutants (CO, NOX, Pb, PM, SOX, and VOC)
3
Legal Hierarchy
The Administrator and President have directed EPA to review
its policies and streamline issuance of Federal air permits
• Constitutional Clauses: Specifies areas where Congress
can enact laws
• Statutes: Laws passed by Congress directing EPA to
develop reduce air pollution and improve air quality
• Regulations: Administrative rules developed by EPA under
statutory authority to reduce and control air pollution
• Judicial Decisions: Determinations issued by Federal
courts on the legality of regulations and statutes
• Guidance documents: EPA interpretation on terms and
procedures in statutes and EPA regulations
4
Guidance Documents
EPA relies heavily on guidance documents to enact its air
pollution control programs
• Interpretive guidance: how EPA interprets regulations and
statutes
◦ Once-in, Always-in Policy, Project Emissions Accounting
• Descriptive guidance: how EPA defines terms used in
statutes and regulations
◦ Common Control
• Guidance documents are NOT enforceable
• EPA uses permit process to enact guidance documents
◦ EPA, local, state, and tribal (LST) air agencies use
guidance documents in developing air permits
◦ Air permits denied unless they conform to guidance
5
Guidance Documents
Issued Guidance Documents
• Applicability Determination Index
◦ Interpretive guidance for NESHAP and NSPS applicability
◦ Over 3,600 guidance documents on applicability
• Title V Policy and Guidance Index
◦ 230 policy and guidance documents
◦ Limited to Title V
• New Source Review Policy and Guidance Index
◦ 700 policy and guidance documents
◦ Limited to PSD and NNSR
• Ohio EPA Engineering Guides
◦ 84 policy and guidance documents
◦ All aspects of Ohio and EPA air pollution control programs
6
Cooperative Federalism
Clean Air Act requires a partnership between the EPA and LST
air agencies to achieve air quality goals
• EPA delegates air permit programs to LST air agencies
• EPA uses guidance documents to ensure consistency
between EPA Regions and LST air agencies in air permits
• LST air agencies develop their own guidance documents
◦ LST air agencies can adopt guidance documents, permit
requirements, and emissions standards more restrictive
than Federal regulations
How much leeway do LST air agencies have in
implementing the EPA air permitting programs?
7
Once-In,Always-In Policy
• New policy issued on January 25, 2018 revoked previous
once-in, always-in (OIAI) policy
• Each state has the option of revoking OIAI policy, effective
January 25, 2018
• Ohio EPA revoked its own OIAI guidance document
(Engineering Guide #67) the same day as EPA
◦ Engineering Guide #88 replaces Engineering Guide #67
◦ Applicable area source standards will only be listed in
general permit terms and conditions, rather than specific
requirements in emissions unit terms and conditions
◦ U.S. EPA Region 5 would be responsible for enforcing
compliance with area source standard requirements and
reviewing compliance reports
• EPA will update NESHAP regulations to include this policy
8
Project EmissionsAccounting
• New NSR policy issued on March 13, 2018
• Emissions increases AND DECREASES from a proposed
project are calculated in Step 1
◦ Step 1: Calculate project emissions and compare to
significant emissions rates (SER) for PSD and/or NNSR
• Enforceable permit terms are not required for credit on any
emission decreases
• Must be a casual link between all physical and operational
changes used to calculate emission
• Applicant defines project to EPA
◦ Example: Installation of a baghouse for existing and new
furnaces lowers PM emissions below PSD PM SER
• EPA will not update NSR regulations to include this policy
9
Project EmissionsAccounting
• New PSD policy issued on March 13, 2018
• Establishes non-binding significant impact levels (SILs) for
determining if PSD additional analyses are required
◦ Ozone 8-hour: 1.0 parts per billion (ppb)
◦ PM2.5 24-hour: 1.2 microgram per cubic meter (µg/m3)
◦ PM2.5 annual: 0.2 µg/m3
• Revised SILs apply in all Class I and Class II areas
• EPA will use data to establish basis for future rulemaking
◦ Ozone SILs not yet established in regulation
◦ PM2.5 24-hour SILs established in regulation; however,
EPA analysis indicates 1.5 µg/m3 is sufficient
◦ PM2.5 annual SIL established as 0.3 µg/m3 in regulation;
however, EPA analysis indicates 0.2 µg/m3 necessary
10
Common Control
• EPA revised how it will define facility common control for air
permits in an April 30, 2018 applicability guidance memo
◦ Pennsylvania Department of Environmental Protection
(PaDEP) requested guidance on PSD/Title V applicability
◦ Proposed biogas processor (Meadowbrook) would be
dependent on landfill gas from Keystone Sanitary Landfill
(KSL), even though they have different owners
• Facilities are part of the major source if they “are under the
control of the same person” (common-control)
◦ Common-control determinations made on a case-by-case
basis by EPA
◦ KSL is a major source for Title V and PSD
11
Common Control
• EPA determined that KSL and Meadowbrook are not under
common-control
◦ Differs from previous applicability interpretations
▪ Guidance admits that previous determinations would
have combined facilities
◦ Contract between the two entities only allows influence,
not control
▪ Assessment of control focuses on the authority of one
entity to dictate decisions affecting applicability of or
compliance with applicable air pollution regulations
• EPA deferred determination to PaDEP
◦ PaDEP has primary responsibility for determination
◦ States can be more restrictive than EPA
12
Conclusions
• EPA will continue to issue revised guidance documents
to refine and redefine air permit policies
◦ Guidance documents can be revised and discarded by
each new administration
◦ Attorneys vs scientists
• EPA has indicated that many policy revisions will remain
in guidance documents, rather than in regulations
◦ Regulation changes permanent, but take more time
◦ Current administration policy is 2-for-1
▪ Two regulations repealed for each new regulation
• Current EPA will defer more to states for conclusions
◦ Air permitting policies will differ more for each state
◦ Cooperative federalism defined by each administration
13
Any Questions?
14

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Air Permit Review Changes

  • 1. Air Permit Process Review by EPA Andrew D. Shroads, QEP 614.887.7227 • ashroads@scainc.com PO Box 1276 Westerville, OH 43086 While every effort has been made to ensure the accuracy of this information, SC&A is not responsible for any errors or omissions. This information is not a substitute for professional environmental consulting services. If legal services are required, consult with legal counsel.
  • 2. EPAReviewing FederalAir Permit Processes U.S. Environmental Protection Agency (EPA) has issued several new guidance documents modifying aspects of the Federal air permitting processes • January 25, 2018: Memorandum revoking once-in, always- in policy • March 13, 2018: Memorandum on project emissions accounting for New Source Review analysis • April 17, 2018: Memorandum on Significant Impact Levels for Ozone and Fine Particulates • April 30, 2018: Letter regarding common control for Title V facilities 2
  • 3. Types of FederalAir Permits Installation Permits 1. Non-Attainment New Source Review (NNSR) ◦ Major sources in non-attainment areas ◦ Requires lowest achievable emissions rate (LAER) ◦ Requires emissions offsets 2. Prevention of Significant Deterioration (PSD) ◦ Major sources in attainment areas ◦ Requires best available control technology (BACT) ◦ Requires air emissions dispersion modeling Operating Permit 1. Title V / Part 70 ◦ Major sources of hazardous air pollutants (HAPs) and criteria pollutants (CO, NOX, Pb, PM, SOX, and VOC) 3
  • 4. Legal Hierarchy The Administrator and President have directed EPA to review its policies and streamline issuance of Federal air permits • Constitutional Clauses: Specifies areas where Congress can enact laws • Statutes: Laws passed by Congress directing EPA to develop reduce air pollution and improve air quality • Regulations: Administrative rules developed by EPA under statutory authority to reduce and control air pollution • Judicial Decisions: Determinations issued by Federal courts on the legality of regulations and statutes • Guidance documents: EPA interpretation on terms and procedures in statutes and EPA regulations 4
  • 5. Guidance Documents EPA relies heavily on guidance documents to enact its air pollution control programs • Interpretive guidance: how EPA interprets regulations and statutes ◦ Once-in, Always-in Policy, Project Emissions Accounting • Descriptive guidance: how EPA defines terms used in statutes and regulations ◦ Common Control • Guidance documents are NOT enforceable • EPA uses permit process to enact guidance documents ◦ EPA, local, state, and tribal (LST) air agencies use guidance documents in developing air permits ◦ Air permits denied unless they conform to guidance 5
  • 6. Guidance Documents Issued Guidance Documents • Applicability Determination Index ◦ Interpretive guidance for NESHAP and NSPS applicability ◦ Over 3,600 guidance documents on applicability • Title V Policy and Guidance Index ◦ 230 policy and guidance documents ◦ Limited to Title V • New Source Review Policy and Guidance Index ◦ 700 policy and guidance documents ◦ Limited to PSD and NNSR • Ohio EPA Engineering Guides ◦ 84 policy and guidance documents ◦ All aspects of Ohio and EPA air pollution control programs 6
  • 7. Cooperative Federalism Clean Air Act requires a partnership between the EPA and LST air agencies to achieve air quality goals • EPA delegates air permit programs to LST air agencies • EPA uses guidance documents to ensure consistency between EPA Regions and LST air agencies in air permits • LST air agencies develop their own guidance documents ◦ LST air agencies can adopt guidance documents, permit requirements, and emissions standards more restrictive than Federal regulations How much leeway do LST air agencies have in implementing the EPA air permitting programs? 7
  • 8. Once-In,Always-In Policy • New policy issued on January 25, 2018 revoked previous once-in, always-in (OIAI) policy • Each state has the option of revoking OIAI policy, effective January 25, 2018 • Ohio EPA revoked its own OIAI guidance document (Engineering Guide #67) the same day as EPA ◦ Engineering Guide #88 replaces Engineering Guide #67 ◦ Applicable area source standards will only be listed in general permit terms and conditions, rather than specific requirements in emissions unit terms and conditions ◦ U.S. EPA Region 5 would be responsible for enforcing compliance with area source standard requirements and reviewing compliance reports • EPA will update NESHAP regulations to include this policy 8
  • 9. Project EmissionsAccounting • New NSR policy issued on March 13, 2018 • Emissions increases AND DECREASES from a proposed project are calculated in Step 1 ◦ Step 1: Calculate project emissions and compare to significant emissions rates (SER) for PSD and/or NNSR • Enforceable permit terms are not required for credit on any emission decreases • Must be a casual link between all physical and operational changes used to calculate emission • Applicant defines project to EPA ◦ Example: Installation of a baghouse for existing and new furnaces lowers PM emissions below PSD PM SER • EPA will not update NSR regulations to include this policy 9
  • 10. Project EmissionsAccounting • New PSD policy issued on March 13, 2018 • Establishes non-binding significant impact levels (SILs) for determining if PSD additional analyses are required ◦ Ozone 8-hour: 1.0 parts per billion (ppb) ◦ PM2.5 24-hour: 1.2 microgram per cubic meter (µg/m3) ◦ PM2.5 annual: 0.2 µg/m3 • Revised SILs apply in all Class I and Class II areas • EPA will use data to establish basis for future rulemaking ◦ Ozone SILs not yet established in regulation ◦ PM2.5 24-hour SILs established in regulation; however, EPA analysis indicates 1.5 µg/m3 is sufficient ◦ PM2.5 annual SIL established as 0.3 µg/m3 in regulation; however, EPA analysis indicates 0.2 µg/m3 necessary 10
  • 11. Common Control • EPA revised how it will define facility common control for air permits in an April 30, 2018 applicability guidance memo ◦ Pennsylvania Department of Environmental Protection (PaDEP) requested guidance on PSD/Title V applicability ◦ Proposed biogas processor (Meadowbrook) would be dependent on landfill gas from Keystone Sanitary Landfill (KSL), even though they have different owners • Facilities are part of the major source if they “are under the control of the same person” (common-control) ◦ Common-control determinations made on a case-by-case basis by EPA ◦ KSL is a major source for Title V and PSD 11
  • 12. Common Control • EPA determined that KSL and Meadowbrook are not under common-control ◦ Differs from previous applicability interpretations ▪ Guidance admits that previous determinations would have combined facilities ◦ Contract between the two entities only allows influence, not control ▪ Assessment of control focuses on the authority of one entity to dictate decisions affecting applicability of or compliance with applicable air pollution regulations • EPA deferred determination to PaDEP ◦ PaDEP has primary responsibility for determination ◦ States can be more restrictive than EPA 12
  • 13. Conclusions • EPA will continue to issue revised guidance documents to refine and redefine air permit policies ◦ Guidance documents can be revised and discarded by each new administration ◦ Attorneys vs scientists • EPA has indicated that many policy revisions will remain in guidance documents, rather than in regulations ◦ Regulation changes permanent, but take more time ◦ Current administration policy is 2-for-1 ▪ Two regulations repealed for each new regulation • Current EPA will defer more to states for conclusions ◦ Air permitting policies will differ more for each state ◦ Cooperative federalism defined by each administration 13