Title V Air Operating Permits: what they mean for foundries.

Metalcasters need to check their state regulations to ensure they are complying with the Clean Air Act Amendments of 1990.

The Clean Air Act Amendments (CAAA) of 1990 imposed many new requirements on foundries and other industries. As part of this complex law, Congress mandated that the U.S. Environmental Protection Agency (EPA) establish an operating permit program for air emission sources nationwide.

Since Title V of the CAAA contains it, the requirement is commonly referred to as the Title V air operating permit program. Under Title V, the EPA established minimum requirements and standards for states to develop a specific Title V permit program.

Each state is required to submit its Title V regulations to the EPA for approval. After EPA approves a state's regulation, industrial and other emitters of air pollutants are required to apply for air operating permits for their facilities. The state agency reviews each permit application. After ensuring the applications meets all EPA and state regulations, the agency issues a Title V operating permit to the facility.

The permit is normally valid for five years. The Clean Air Act calls for severe civil and criminal penalties for operating a facility without a Title V permit or without a timely and complete permit application on file at the state agency.

Every state was required to submit its Title V program to the EPA by November 15, 1993, with approval expected within a year. However, many states did not submit complete programs by the due date.

Also, because of Title V's complex rules and requirements, the EPA has not completed its review of programs submitted by the states within the time frame anticipated by COngress in the CAAA. The result is that only a few states have received EPA approval of their Title V programs. However, several states (such as Wisconsin) have started accepting Title V applications in anticipation of receiving EPA approval soon.

Why Worry about Title V?

The consequences of not submitting a complete Title V application by the due date established by the state regulatory agency can be serious and should not be taken lightly by foundry management. A facility operating without a Title V permit or a timely and complete application on file with the state permitting agency would be operating illegally and in violation of federal and state laws and regulations.

The federal Clean Air Act and related state laws call for severe civil and criminal penalties for such violations, exposing responsible corporate officials personally to civil forfeitures and criminal prosecution.

For this reason, it is important for foundry management to be aware of the Title V program status in their states and to ensure a complete Title V application is submitted by the due date.

What Is Title V's Intent?

Under Title V, all major facilities nationwide would be issued a single document (the operating permit) containing all rules, regulations, emission limits and operational restrictions pertaining to air emissions that are already applicable to their operations. Title V is not intended to impose any additional requirements on industry other than the obligation to obtain the permit.

Currently, air permitting programs vary widely from state to state, from nonexistent to stringent. As a result, while a facility in one state may require no air permits, an identical facility in another state with a comprehensive permitting program may require multiple permits - both to construct and operate the facility.

Before Title V, however, even the most stringent state permitting programs did not meet the comprehensive coverage required by the Title V program. They had to be revised significantly to meet the new federal requirements.

Who Is Covered by Title V?

Under Title V, each facility that emits air pollutants falls into one of two categories: major source or minor source. Facilities classified as a major source are required to obtain a Title V operating permit. While the CAAA does not mandate minor sources to obtain Title V permits, some states also are including minor sources in the Title V permit program.

A major source is defined as a facility that has the potential to emit more than 100 tons a year of a criteria pollutant (for instance, particulates, volatile organic compounds (VOCs)). The annual limit can be lower than 100 tons, depending on the attainment status of the facility's area (see table).

Another criterion for determining if a facility is a major source is its potential to emit hazardous air pollutants (HAPs). HAPs comprise 189 substances - including benzene, formaldehyde and manganese - that are listed in the CAAA. Facilities emitting more than 10 tons per year of a single HAP or more than 25 tons annually of two or more HAPs are classified as major sources.

Facilities not meeting the definition of major source are classified as minor Sources.

What Is Potential to Emit?

Potential to emit is the facility's maximum capacity to emit air pollutants under a scenario in which each operation or process is operating at its maximum design capacity for 24 hours a day, 365 days a year.

Reductions from air pollution control equipment and limits on hours of operation or other operating restrictions can be applied when calculating the potential to emit. Such reductions are allowed to the extent they are federally enforceable requirements in the facility's existing permits, applicable state rules, consent order or other document. Based on this definition, the actual emissions for a facility are typically significantly lower than the potential to emit.

Major Source Thresholds for Title V

Attainment Status        Major Source Threshold(*)

All Areas                100 TPY of any single regulated pollutant
                         10 TPY of any single HAP
                         25 TPY of two or more HAPs

Serious Non-Attainment   50 TPY of VOCs(**)
                         50 TPY of NOx(**)
                         50 TPY of CO(***)
                         70 TPY of PM(****)

Severe Non-Attainment    25 TPY of VOCs(**)
                         25 TPY of NOx(**)
                         50 TPY of PM(****)

Extreme Non-Attainment   10 TPY of VOCs(**)
                         10 TPY of NOX (**)

* Individual states and local agencies may set lower thresholds
** For ozone nonattainment areas
*** For CO nonattainment areas
**** For PM-10 nonattainment areas

Impact on Foundries

Although the specific operational and regulatory framework varies significantly from foundry to foundry, early experience with Title V generally indicates most large and many medium-sized foundries are likely to be major sources. Therefore, they would be subject to Title V program requirements in their states.

Some small foundry operations also may be classified as major sources, depending on their location and operational factors. Air emissions exceeding the major source thresholds for particulates, VOCs and HAPs (such as benzene and formaldehyde) under a potential to emit scenario are the most common reasons for foundries being classified as major sources.

The only sure way to determine if a specific foundry facility is a major source is to develop an air emissions inventory. This identifies all emission units at the facility and quantifies the emissions of criteria pollutants and HAPs under a potential to emit scenario.

The air emissions inventory is a useful first step in addressing Title V requirements. If, based on the emissions inventory, the facility proves to be a minor source, the air emissions inventory would provide the documentation needed to demonstrate this to the regulatory agency (if necessary). If the facility is a major source, the air emissions inventory would serve as the basis for developing a Title V operating permit application or an application for a synthetic minor source.

RELATED ARTICLE: Title V at a Glance

* Title V is a nationwide air permitting program established by the EPA and implemented by each state under the requirements of the CAAA of 1990.

* Under Title V, each foundry must determine whether it is required to apply for a Title V permit. Generally, most large foundries, many medium-sized ones and some small foundries are likely to be covered by Title V.

* To continue to operate legally, foundries covered by Title V would be required to apply for an air operating permit from their state environmental regulatory agency by the applicable due date.

* Due dates for filing complete applications vary significantly from state to state, based on the status of review and approval of the state's Title V program by the EPA.

* It is important for foundry management to be aware of the status and requirements of their state's Title V program - especially the schedule for filing completed permit applications. Noncompliance with Title V provisions carries severe civil and criminal penalties and loss of ability to continue operations.

* Foundries should begin the process of verifying if they are covered by Title V as soon as possible. It can take several months to more than a year for generating, collecting and analyzing the relevant data and information for this determination and, if needed, the subsequent process of preparing a complete Title V application that provides a high degree of operational flexibility.

RELATED ARTICLE: Synthetic Minor Sources

If a foundry is determined to be a major source under Title V, it can legally avoid the need to apply for and obtain a Title V operating permit by becoming a synthetic minor source.

The facility achieves this by voluntarily agreeing to accept federally enforceable restrictions on its operations so that its "potential to emit" criteria pollutants (for example, particulates and VOCs) and HAPs (such as benzene and manganese) are reduced below the major source thresholds applicable to that foundry.

In effect, such a facility is creating or synthesizing a minor source out of what was originally a major source and, hence, the name "synthetic minor source." Examples of restrictions for a synthetic minor source include limits on hours of operation (for instance, maximum two shifts a day) and the operation's production rate (such as a maximum cupola melt rate of 150 tons daily), and limiting air emissions to a lower level than required (for example, providing 99.5% control of shakeout emissions).

A facility that wants to become a synthetic minor source should apply to its state agency for a permit or obtain some other acceptable legal document containing the applicable federally enforceable restrictions to limit its potential to emit.

Foundries pursuing this route should be aware that while they would avoid the Title V permitting requirements, they will still require a state permit and be subject to some record-keeping and reporting requirements imposed by the state. Also, their ability to expand their operations and hence respond to future marketplace changes may be limited or delayed until they obtain the required Title V permit.