DAS Background Documentation

The Environmental Protection Agency (EPA) has adopted a series of new air quality regulations that will affect thousands of small businesses in Oregon in 70 different source categories. To comply with these regulations, many Oregon businesses will be required, for the first time, to get an Air Contaminant Discharge Permit (ACDP) from DEQ.

Sources affected by federal air quality standards applicable to non-major sources, are currently required to have a Simple ACDP unless a General ACDP has been issued for the source category. A Simple ACDP currently costs between $1,920 and $3,840 per year. A General ACDP currently costs between $720 and $1,872 per year.

Some of these new regulations have few requirements and while they require DEQ to perform additional work and eventually add staff, the amount of work does not warrant the cost of current permit options. For example, the new hospital sterilizer regulation requires hospitals to sterilize full loads, and DEQ’s level of effort to implement the regulation does not require a $720 General ACDP.

The new gasoline dispensing regulation applies to gasoline stations that DEQ already regulates under the Land Quality and Air Quality Divisions, both of which charge fees on gasoline stations. To implement the Gasoline Dispensing NESHAP, the Air Quality and Land Quality Divisions are working together to leverage resources and reduce the impact on gasoline stations. The two divisions are working on an implementation strategy that would have the Land Quality Division inspect gasoline stations for both Land Quality and Air Quality regulations using the existing Tanks Program inspectors, the existing Air Quality inspector, and one new inspector (planned addition in DEQ policy package). This innovative approach will minimize the additional revenue DEQ would need to implement the new federal gasoline dispensing regulation.

DEQ proposes to add two new lower-cost General ACDP categories for sources with limited requirements and where existing Department resources can be leveraged to reduce the implementation costs. The proposed cost of these new General ACDP categories is $120 and $360 per year. No current General ACDP fee categories would change. The last time the General ACDP fees were changed was November 8, 2007, when all ACDP fee were increased by 20%.

The new lower cost General ACDP categories would apply to gasoline stations and hospitals. The new lower cost General ACDP categories could also be used for other source categories in the future.

The standing Small Business Compliance Advisory Committee (CAP) has been and will be utilized during this rulemaking. The CAP serves in a voluntary advisory capacity to increase the effectiveness of Oregon's Air Quality Small Business Assistance program. The CAP reviews business assistance materials and new air quality pollution prevention technologies. The purpose of addressing this committee is to present DEQ’s implementation strategy for the new NESHAPs and receive the committee’s input and/or recommendations.

Gas stations in the Portland, Salem, and Medford areas are currently required to have an air quality permit. These stations currently pay between $50 and $150 per year in permit fees (these fees have not been increased in over 10 years). Under the proposed rules, they would be required to pay between $120 and $360 per year in permit fees. Gas stations outside the Portland, Salem, and Medford areas would be required to get an air quality permit and pay air quality permitting fees for the first time, but would also be subject to air quality regulations for the first time. It is likely that gas station owners will oppose the fee increase and the permitting requirement. Oregon Petroleum Association (OPA) and Western States Petroleum Association (WSPA) are also expected to oppose the fees and permitting requirements. Oregon Toxics Alliance (OTA) is expected to support the fees and permitting requirement. DEQ has had discussions with OPA and they oppose the fee increase and permitting requirement.

DEQ did not consider contracting out this work because the Department is already doing this work and is to leverage resources and minimize the impact on affected stations. The new gasoline dispensing regulation applies to all gasoline stations in Oregon, many which are already regulated by DEQ's Air Quality Division and most which are already regulated under DEQ's Land Quality Division. To implement the new federal gasoline dispensing regulation, the Air Quality and Land Quality Divisions are working on an implementation strategy that would have the Land Quality Division inspect gasoline stations outside the Portland area for both Land Quality and Air Quality regulations using the existing Tanks Program inspectors and one new inspector (planned addition in DEQ policy package). This innovative approach will minimize the additional revenue DEQ would need to implement the new federal gasoline dispensing regulation in Oregon.