Oregon Department of Environmental Quality

July 15, 2013

Notice of Proposed Rulemaking

 Incorporate Lane Regional Air Pollution Authority Rules

For Permit Streamlining into

Oregon’s State Implementation Plan

Short summary 

DEQ proposes amendments to Oregon Administrative Rule 340-200-0040 others? and Oregon’s State Implementation Plan to incorporate Lane Regional Air Pollution Agency rules, which are known as titles, amended on month date, 2008. The LRAPA titles were enacted in Lane County, but have not been incorporated into the State Implementation Plan. The titles result in simplification and streamlining of the air quality permit program in Lane County and updates and alignment of the county with state and federal requirements, while maintaining equivalent environmental protection and stringency.

DEQ proposes incorporation of the following LRAPA titles into Oregon’s State Implementation Plan:

Revised Titles:

Title 12: Definition consolidation and clarification, de-listing HFE-7300 as a volatile organic compound (VOC)

Title 30: Incinerator rule updates and corrections

Title 32: Visible Emissions Rule clarification, Sulfur dioxide standard alignment with federal requirements,

Title 33: Kraft Pulp Mill Rule simplification, Board products rule emission standard simplification

Title 34: Adoption of new Stationary Source Notification Requirements

Title 36: Excess Emissions Rule alignment with federal requirements

Title 37: Move former Title 37 (Federal HAPs program) to Title 44.

Title 38: Major New Source Review clarifications to align with Oregon Department of Environmental Quality and federal requirements. Move Emission Reduction Credits from Title 38 to new Title 41.

Title 46: Obtain delegation of authority for new New Source Performance Standards (NSPSs)

Title 48: Update LRAPA name

Title 49: Update LRAPA name

Title 50: Update to include recent changes to ozone National Ambient Air Quality Standards (NAAQS) and to include Prevention of Significant Deterioration (PSD) increments.

New Titles:

Title 29: Designation of Air Quality areas previously under Oregon Administrative Rules (OARs)

Title 31: New public participation rules previously partially contained in Title 34.

Title 35: Stationary Source Testing and Monitoring previously included in Title 34.

Title 37: New Air Contaminant Discharge Permit (ACDP) program streamlining consistent with ODEQ.

Title 40: Clarify Air Quality Analysis Requirements consistent with ODEQ, formerly contained in Title 38.

Title 41: Emission Reduction Credits (ERC) clarifications, formerly contained in Title 38.

Title 42: New Stationary Source Plant Site Emission Limits rules consistent with ODEQ.

Title 44: New title to adopt the Oregon State Hazardous Air Pollutants program.

Repeal Titles:

Title 33: Kraft Pulp Mill Rules redundant with federal requirements

Title 35: Major Source Interim Rules used to cover period in mid-1990’s prior to development of Oregon Title V program.

Brief history

LRAPA, in consultation with DEQ and the U.S. Environmental Protection Agency, is responsible for ensuring that Lane County communities comply with federal air quality health standards, including enacting plans to restore healthy air quality in any area violating standards. LRAPA conducts air monitoring, permitting and compliance, inspection and enforcement, and regulates open burning and asbestos abatement throughout Lane County. It also has a woodstove advisory program, an open burning advisory and conducts special projects focused on air quality. The agency is funded from local dues from Lane County and the cities of Lane County, industrial and other permitting fees, and LRAPA coordinates with DEQ to obtain EPA funding and state general funds.

The Environmental Quality Commission and DEQ have oversight authority to ensure LRAPA meets Clean Air Act requirements. The State Implementation Plan is adopted by EQC under OAR 340-200-0040 and approved by EPA as the State of Oregon Clean Air Act Implementation Plan. EQC approves and directs DEQ to submit all LRAPA titles to EPA as amendments to the State Implementation Plan. Though this is not the case here, an exception to this requirement allows the DEQ to approve any LRAPA titles that are verbatim restatements of DEQ rules that the EQC has already approved.

Regulated parties

DEQ’s proposed amendments affect facilities in Lane County that hold air quality permits with LRAPA.

Statement of need

What problem is DEQ trying to solve?

The State Implementation Plan contains outdated information about LRAPA’s measures to protect air quality in Lane County. For example, the State Implementation Plan still contains reporting requirements for regulated facilities that were eliminated by LRAPA in 2008. The State Implementation Plan also still contains inconsistencies between the air quality permit program in Lane County and the program administered in all other Oregon counties by DEQ. LRAPA eliminated certain inconsistencies in 2008. EPA will not approve updates to the State Implementation Plan until EQC approves DEQ’s proposal.

How would the proposed rule solve the problem?

If the EQC adopts the rule, the amendments will be submitted by DEQ to the U. S. Environmental Protection Agency as a revision to the State of Oregon Clean Air Act State Implementation Plan.

The proposed changes improve LRAPA’s permitting process, improve consistency with DEQ and help maintain a federally approved permitting program. The proposed changes are also intended to reduce the amount of time required to permit industrial sources of air pollution while maintaining the same level of environmental protection, and allow LRAPA to focus on additional high priority work to protect air quality in Lane County. This is a comprehensive rulemaking package developed by the Lane Regional Air Protection Agency as an outcome of permit streamlining efforts DEQ and LRAPA have conducted. The proposed rules are not intended to change the overall stringency of the point source regulatory program but are designed to make the regulatory process simpler and more efficient.

How will LRAPA/DEQ know the problem has been solved?

DEQ will know the inconsistencies have been solved when EPA approves incorporation of the proposed changes into the State Implementation Plan.

Request for other options

During the public comment period, DEQ requests public comment on whether to consider other options for achieving the rule's substantive goals while reducing negative economic impact of the rule on business.

Lead division                Program or activity

For LRAPA: Enter text here        Enter text here

For DEQ:  Air Quality          Enter text here

MARGARET, WE’LL NEED TO ASK THE REVIEWERS IF THER ARE OTHER RULES THAT NEED AMENDING.

      Chapter 340 action      

 Recommendation  Division  Rule  Title  SIP/Land use*

 amend  200  0040  TEXT  SIP

 Choose an item.  000  0000  TEXT  Choose an item.

 Choose an item.  000  0000  TEXT  Choose an item.

*  SIP – This rule is part of the State Implementation Plan.

*  Land use – DEQ State Agency Coordination Program considers this rule, program or activity is a land use program.

Statutory authority

ORS 468.020, 468A.025 and 468A.460 ARE THERE OTHERS? DID ANYONE VERIFY?

Other authority

 LRAPA Titles 13 and 14?

Statute implemented  Legislation  Year

ORS  Enter here  [ENTER BILL #] Enter here  yyyy

Documents relied on for rulemaking  

ORS 183.335(2)(b)(C)

In proposing changes to align its rules with state and federal requirements, LRAPA relied primarily upon the rules implemented by DEQ as part of the two phases of streamlining (SPPIT I and II) and EPA comments (dated August 10, 2007).

Fees

This rule proposal involves fees…

Fiscal and Economic Impact

This proposal affects facilities hold air quality permits with LRAPA in Lane County. LRAPA analyzed fiscal and economic impacts of the proposed amendments in 2008. In month 2013, DEQ evaluated LRAPA’s analysis. DEQ considered with LRAPA’s analysis is accurate and, in consultation with LRAPA, reviewed the analysis in light of events that have occurred since 2008. DEQ confirms that LRAPA’s analysis is reasonable and that the proposed amendments have the following fiscal and economic impact.

Rule simplification and streamlining will likely result in efficiencies and avoidance of additional permitting costs for small sources.

LRAPA’s public notice procedures are being changed by these proposed rule revisions so major new sources and major modifications to existing sources may require a preliminary informational meeting before the permit is drafted. The proposed public notice procedures increase public involvement for sources that are potentially environmentally significant This will increase the up-front time required to prepare for and participate in a public meeting. An expected benefit from this procedure is better permits that require less time for review and comment since issues were raised and addressed before permit drafting. However, since, public involvement for permitting smaller facilities and changes to existing facilities that are not environmentally significant will be reduced.

An example of decreased workload is the proposal to increase General Permits, which require one public notice for a General Permit source category of approximately ten or more sources. Comments from the public on one General Permit would then have the affect of commenting on all of the individual permits that would be issued if a General Permit was not issued to sources in that category. Overall, this tiered public involvement process should result in time savings for the public, as well as, business and LRAPA

LRAPA expected that approximately 50 of the existing 200 ACDP sources would become eligible and switch to General Permits upon availability in January, 2009.

Table 1 below is an outline of the existing and proposed fee structure and was used as the basis for setting the proposed fee amounts listed in this rulemaking proposal.

Not sure where this goes: LRAPA anticipates that other agencies will experience mostly beneficial direct and indirect fiscal and economic impacts from this proposed rulemaking.

EPA – LRAPA will request expedited review of the proposed State Implementation Plan (SIP) modifications affected by the proposed rule revisions. The EPA has been involved in this rulemaking project from the start and is committed to helping make it work. There are no expected fiscal impacts to the EPA as a result of the accelerated SIP approval process.

Economic and Community Development Department - Some of the rule changes, for example “alternatives to preconstruction monitoring,” may help promote economic development by speeding up the permitting process. Clarifying and removing redundant requirements from the rules should result in consistent interpretation and implementation, which in turn reduces workload.

The following examples illustrate the potential changes in fees for three categories of permitted facilities as a result of the proposed rules:

•  The total permitting fees for a typical portable rock crusher operating over a ten year period would be reduced from about $20,659 to $14,160.

•  The total permitting fees for a typical stationary asphaltic concrete paving plant operating over a ten year period would be reduced from about $32,654 to $19,920.

•  The total permitting fees for a typical large semi-conductor fabricating facility operating over a ten year period would be reduced from about $209,618 to $100,800.

Statement of Cost of Compliance  

   Impacts on general public

There is no significant fiscal or economic impact on the general public.

Impact on other government entities other than DEQ

•  Local governments  

Local governments that hold air quality permits may be affected by the rule revisions in the same manner as small or large businesses. Under the proposed public participation procedures, proposed major source permits will be subject to a public involvement period before LRAPA begins processing the permit. LRAPA expects the public may raise land use issues at this point. Such issues will be referred to the local planning jurisdiction for resolution, which may increase the burden on the local government entity.

Another fiscal impact this proposed rulemaking may have on local government is requiring submittal of excess emission reports within fifteen days of their occurrence rather than semi-annually. This requirement could impose a slight additional cost to county or local government facilities with air permits if they experience excess emissions. However, LRAPA expects this impact to be negligible because excess emissions reported within the required 15 days would no longer need to be included on semi-annual reports. Potentially affected facilities could include county –owned cogeneration facilities and school boilers

Most of the standards affected by the proposed revisions are implemented through the Air Contaminant Discharge Permit Program. The proposed rules will streamline the permitting process and reduce personnel time, resulting in long term cost savings. LRAPA expects a large portion of these savings to come from the expanded use of General Permits. This proposal will allow LRAPA to issue one permit for many similar businesses, which will reduce the permit drafting and processing time required for individually permitted sources. LRAPA does not expect to realize the full effect of savings for several years i.e., after a complete five year permitting cycle. See also the discussion under “State Agencies” above

•  State agencies    

A fiscal impact this proposed rulemaking may have on state agencies is requiring submittal of excess emission reports within fifteen days of their occurrence rather than semi-annually. This requirement could impose a slight additional cost to state-owned facilities with air permits if they experience excess emissions. However, LRAPA expects this impact to be negligible because excess emissions reported within the required 15 days would no longer need to be included on semi-annual reports. Potentially affected facilities could include university power generators.

Part of the rule changes allow for portable sources to obtain one permit to operate in all areas of the state including Lane County. The agency (LRAPA or ODEQ) responsible for writing the permit and collecting the fees for these sources will be the agency where the portable source’s headquarters are located. This will likely reduce the fees collected by both LRAPA and ODEQ

Impact on DEQ ORS 183.335

There is no significant fiscal or economic impact on DEQ.

Impact on large businesses (all businesses that are not small businesses below)

This proposal primarily affects residential open burning in Lane County and would have no significant fiscal or economic impact on large businesses.

LRAPA anticipates that elimination of redundant requirements and clarification of rule language may have beneficial fiscal effects on large businesses. The proposed revisions would result in fewer permit conditions for kraft pulp mills in cases where multiple permit conditions set similar limits for the same emission sources and pollutants.

A fiscal impact this proposed rulemaking may have on large businesses is requiring submittal of excess emission reports within fifteen days of their occurrence rather than semi-annually. This requirement could impose a slight additional cost to large facilities with air permits if they experience excess emissions. However, LRAPA expects the fiscal impact to be negligible because excess emissions reported within the required 15 days would no longer need to be included on semi-annual reports.

Many large businesses will require Standard ACDPs. However, since the type of permit required is based on the amount of emissions and not the number of employees, some large businesses may be subject to General and Simple ACDPs as outlined for small business

Fees: Most large businesses will continue to be subject to either the Title V permit program (Title V fees are not affected by the proposed changes) or Standard ACDPs. Standard ACDP holders will be charged $7,680/year instead of the range of fees in the existing rules (approximately $1000 to $21,000/year). Other ACDP fees include Initial Permitting and Special Activity fees. Special Activity fees are currently charged for such things as permit modification and review of modeling analysis. These proposed Special Activity fees are similar in magnitude and nature as the existing rules. Overall LRAPA anticipates these proposed fee changes will be revenue neutral, although individual businesses may pay more or less then current fees

Reduced Time: The proposed changes will reduce the amount of time required and the cost to maintain a permit by reducing the time it takes to issue and renew permits and the need for permit modifications. This is primarily due to the use of generic Plant Site Emission Limits (PSELs) in place of source-specific ones, and the use of general permits for many source categories. Changing the trigger level for Prevention of Significant Deterioration (PSD) from the Significant Emission Rate (SER) to 100 or 250 tons per year will reduce the time consumed by triggering PSD when modeling indicates that no standards will be violated. An air quality analysis for increases in the PSEL above the SER will still require an air quality analysis even if PSD is not triggered. Reduced permit processing time will enable businesses to better meet market-timing needs

Triggering Applicable Requirements: The proposed changes could cause some sources to trigger or avoid triggering various applicable requirements. For example changes to unassigned emissions could cause a few sources to trigger New Source Review sooner, as compared to the current rules. Also, the proposed process to assess impacts due to ozone precursors potentially could require sources between 30 and 100 kilometers from a nonattainment or maintenance area to evaluate their impact on the area and mitigate the impact if it is significant (there are currently no ozone nonattainment or maintenance areas in Lane County). Procedures for combining and splitting sources could cause some sources to trigger or avoid triggering Title V or New Source Review rules

 Monitoring and Reporting Costs: The proposed changes could increase or decrease monitoring and reporting costs. For example the rolling 12 month PSEL limit in the permits will make it necessary to report compliance for 12 numbers in annual reports in place of one number for the calendar year. However, elimination of the short term PSEL (hourly or daily) will reduce the burden of monitoring and reporting compliance with these short term limits.

Emission Reduction Credits: The proposed changes could increase the value of certain emission reduction credits. For example emission reductions from shutdowns are proposed to be used just like over control reductions to offset emission increases for sources going through New Source Review. Banking can be used to extend the life of a shutdown credit just the same as other actual emission reductions. Under the current rules, emission reductions due to shutdowns may only be used as offsets during the two years following the reduction and may not be banked

Impact on small businesses (those with 50 or fewer employees) ORS 183.336

EPA determined that there would be no significant impact on small businesses when it exempted HFE-7300 from the definition of Volatile Organic Compounds.

LRAPA’s adoption of the exemption would likely reduce the regulatory burden and allow expanded use of a commercially valuable compound. This could provides a benefit to businesses (explain)

Most small businesses that already held air quality permits with LRAPA qualified for different permits under the proposed rules. These businesses previously paid annual permitting fees from $400 per year to $7,000 per year. Under the proposed rules, these businesses pay annual permitting fees from $360 per year to $3,840 per year. While some small businesses qualify for a permit of greater complexity and pay higher annual fees under the proposed rules (insert the number and fee range), most small businesses holding permits under the proposed rules pay about the same or less under the proposed rules.

Some of the impacts and benefits listed under Large Business may also pertain to some small businesses that have high emissions or are located in sensitive airsheds.

The proposal to exempt HFE-7300 from the definition of Volatile Organic Compounds will reduce the regulatory burden of tracking and limiting use of this chemical. Small businesses could also benefit from the opportunity to substitute HFE-7300 for substances that deplete the earth’s protective ozone layer and substances with high global warming potentials. In adopting this exemption, EPA determined the change would not negatively impact small businesses.

Facilities could benefit from revisions to the Kraft Pulp Mill Rules. Creating Basic Permit categories may allow small businesses to avoid additional permitting costs. The remaining proposals have either no fiscal impact or slightly reduce regulatory burdens

Documents relied on for fiscal and economic impact

[THIS INFORMATION MAY BE A SUBSET OF Rules affected, authorities, supporting documents ABOVE. DOCUMENT RELIED ON FOR THE FISCAL MUST BE DUPLICATED HERE TO MEET APA REQUIREMENTS. ]

Advisory committee

Andrea is guessing here and doesn’t see this stated, other than an advisory committee was used.

When LRAPA developed the proposed amendments, it consulted the Citizens Advisory Committee and made minor revisions to the draft amendments in response to committee comments.

The committee reviewed the information in this fiscal and economic impact statement. In compliance with ORS 183.333, LRAPA asked for the committee’s recommendations on:

•  Whether the proposed rules would have a fiscal impact,

•  The extent of the impact, and

•  Whether the proposed rules would have a significant impact on small businesses and compliance with ORS 183.540.

[ADD ANY SPECIFICS ABOUT THE COMMITTEE’S INVOLVEMENT WITH THE FISCAL AND ECONOMIC IMPACT STATEMENT] Enter text

DEQ considered the committee’s findings in light of events that have occurred since 2008, and DEQ did not see reason to convene an additional advisory committee to review for the proposed amendments.

Housing cost

To comply with ORS 183.534, DEQ determined the proposed rules would have no effect on the development cost of a 6,000-square-foot parcel and construction of a 1,200-square-foot detached, single-family dwelling on that parcel.

Federal relationship

"It is the policy of this state that agencies shall seek to retain and promote the unique identity of Oregon by considering local conditions when an agency adopts policies and rules. However, since there are many federal laws and regulations that apply to activities that are also regulated by the state, it is also the policy of this state that agencies attempt to adopt rules that correspond with equivalent federal laws and rules..."

Relationship to federal requirements

As required under ORS 468A.327(1)(a) and OAR 340-011-0029(1)(a), LRAPA determined this rule proposal is “in addition to federal requirements.” There are no federal rules applicable to open burning. The LRAPA open burning rules are an element of the State Implementation Plan that is a federally approved and enforceable strategy outlining how Oregon will meet federal air quality standards

What alternatives did LRAPA consider, if any?

[DESCRIBE ANY ALTERNATIVES CONSIDERED AND WHY WE DID NOT PURSUE THEM] Enter text here

“It is the Commission's policy to coordinate the Department's programs, rules and actions that affect land use with local acknowledged plans to the fullest degree possible.”  

                              ORS 197.180, OAR 660-030

Land-use considerations

To determine whether the proposed rules involve programs or actions that are considered a land-use action, LRAPA considered:

▪  Statewide planning goals for specific references. Section III, subsection 2 of the DEQ State Agency Coordination Program document identifies the following statewide goal relating to DEQ's authority:

 Goal  Title

 5    Open Spaces, Scenic and Historic Areas, and Natural Resources

 6    Air, Water and Land Resources Quality

 11    Public Facilities and Services

 16    Estuarial resources

 19    Ocean Resources

▪  OAR 340-018-0030 for EQC rules on land-use coordination. Division 18 requires DEQ to determine whether proposed rules will significantly affect land use. If yes, how will DEQ:

◦  Comply with statewide land-use goals, and

◦  Ensure compatibility with acknowledged comprehensive plans, which DEQ most commonly achieves by requiring a Land Use Compatibility Statement.

▪  DEQ’s mandate to protect public health and safety and the environment.

▪  Whether DEQ is the primary authority that is responsible for land-use programs or actions in the proposed rules.

▪  Present or future land uses identified in acknowledged comprehensive plans.

Determination

LRAPA determined that the proposed rules identified under the 'Chapter 340 Action' section above and Title 47 do not affect existing rules, programs or activities that are considered land-use programs and actions in OAR 340-018-0030 or in the DEQ State Agency Coordination Program.

   The proposed rules are consistent with land use in applicable Lane County land use plans.

Stringency Review and Authorization

Stakeholder and public involvement

 Advisory committee

[SOME OF THIS INFORMATION WILL REPEAT THE Advisory Committee SUBSECTION OF THE Statement of Need and Economic Impact ABOVE. THOUGH THE TWO SECTIONS ARE NOT EXACT, MAKE SURE THEY DO NOT CAUSE AMBIGUITY. THE ADVISORY COMMITTEE INFORMATION IS IN THIS LOCATION TO PRESENT A COMPLETE PICTURE OF OUR PUBLIC INVOLVEMENT. THE INFORMATION IS IN THE Statement of Need and Economic Impact TO MEET APA REQUIREMENTS.]

LRAPA convened the [ENTER ADVISORY COMMITTTEE NAME] advisory committee on [DATE]. [DESCRIBE COMMITTEE CHARTER] Enter text here.

The ##-member committee included representatives from [GENERALLY DESCRIBE COMMITTEE MAKEUP.] The committee met ## times over ## months. The committee recommended that [SUMMARIZE RECOMMENDATION OR INVOLVEMENT AND LINK TO ANY FORMAL RECOMMENDATION.] The committee reviewed the fiscal impact statement, specifically impact on small businesses.

 EQC prior involvement

DEQ shares general rulemaking information with the EQC through the annual DEQ Rulemaking Plan review and monthly status report. DEQ and LRAPA did not share information with the EQC through the Director’s Dialogue or by an Information Item on the EQC agenda.

Public notice

The April 1, 2013 Oregon Bulletin will publish the Notice of Proposed Rulemaking with Hearing for this proposed rulemaking. LRAPA and DEQ Public outreach includes:

•  Posted notice on DEQ’s webpage http://www.deq.state.or.us/regulations/proposedrules.htm on Mar. 15, 2013.

•  E-mailed notice to:

•  Approximately #### interested parties through GovDelivery on mmm dd, yyyy.

•  #### stakeholders on the [LIST OTHER MAILING LIST].

•  ## key legislators required under ORS 183.335 on mmm dd, yyyy. Key legislators included:

◦  Name, Title, Committee

◦  Name, Title, Committee

◦  Name, Title, Committee

•  Members of the advisory committee on mmm dd, yyyy.

•  Mailed the notice by U.S. Postal Service to ## interested parties on mmm dd, yyyy.

•  Sent notice to EPA on mmm dd, yyyy. 

•  Other

Public hearings

LRAPA plans to hold one. The table(s) below includes information about how to participate in the public hearings.

Before taking public comment and according to Oregon Administrative Rule 137-001-0030, the presiding officer will provide a brief summary of the content of the notice given under Oregon Revised Statute 183.335 and respond to any questions about the rulemaking.

LRAPA will add the names, addresses and affiliations of all hearing attendees to the interested parties list for this rule if provided on a registration form or the attendee list. DEQ/LRAPA will consider all oral and written comments received at the hearings listed below before finalizing the proposed rules. All comments will be summarized and DEQ/LRAPA will respond to comments on the Environmental Quality Commission staff report.

Close of public comment period

The comment period will close on April 16, 2013 at 5 p.m.

DEQ will submit this proposal to the EQC to:

•  Amend Oregon Administrative Rules,

•  Approve LRAPA titles for inclusion into the Oregon Clean Air Act State Implementation Plan, and

•  Direct DEQ to submit to EPA as SIP Amendments.

If approved, DEQ will submit the required documentation to federal Environmental Protection Agency for approval as a revision to the plan.