Vandenberg Air Force Base (AFB)

FPA Draft 1

BOLD CAPS and ~~strikeou~~t - Santa Barbara comments

underline and shadow - VAFB comments
double underline and ~~strikeout~~ - OGC comments

SMALL CAP ITALIC and shadow - OAQPS comments

italics - Region IX comments 9/23/96

bold small - to be discussed

FINAL PROJECT AGREEMENT

VANDENBERG AIR QUALITY ENVVEST INITIATIVE

I. Overview

A. Purpose of the ENVVEST program

This Agreement states the intention of the U.S. Environmental Protection Agency, Region IX, ("Region IX"), the 30th Space Wing at Vandenberg Air Force Base, CA ("Vandenberg"), and the Santa Barbara County Air Pollution Control District ("SBAPCD") to carry out a pilot project initiated under the ENVVEST Memorandum of Agreement, to test innovative approaches to environmental protection. ENVVEST is an initiative established by and for EPA and the Department of Defense ("DoD") to develop new approaches for meeting their respective responsibilities that achieve better overall environmental performance at lower cost than expected under existing regulatory approaches. ENVVEST is modeled after EPA's excellence in leadership ("Project XL") program and is often referred to as the military version of Project XL.

B. Purpose of this agreement

This Agreement is intended to be a joint statement of the parties' plans and intentions with regard to the Vandenberg Air Quality ENVVEST initiative project. It is intended to clearly state the plans of the various participants and to represent the firm commitment of each participant to carry out the project. The agreement is not, however, intended to create legal rights or obligations and is not a contract, or a regulatory action such as a permit or rule, although some provisions in this agreement will be implemented through a separate ~~[rule/permit]~~ RULES OR PERMITS OR PLANS which will be legally enforceable.

II. Description of the project

A. General project description

The 30th Space Wing at Vandenberg Air Force Base (. . . does what??)(need Monte's input). (Include information on the nature of the base and its activities, and the emissions they create.)

The situation that existed at Vandenberg prior to ENVVEST, which made the Base ripe for participation in the program, was the following: Vandenberg had been classified as a major source of criteria air pollutants based on "potential" emissions and was therefore subject to Title V of the Clean Air Act, a federal operating permit program; Vandenberg's "actual" air emissions were nearly 50% below the major source thresholds for Title V applicability; if actual emissions could be reduced to below 50% of the major source thresholds, Vandenberg would no longer be a major Title V source; Vandenberg had no funding allocated for voluntary emission reduction activities; and a substantial amount of funds were allocated to Vandenberg for Title V compliance.

Through ENVVEST regulatory reinvention, SBAPCD has demonstrated considerable flexibility by employing a variety of mechanisms to relieve Vandenberg of its obligation to comply with Title V. The main strategy invoked was to enable Vandenberg to comply with SBAPCD's Title V prohibitory rule, Rule 370 "Potential to Emit--Limitations for Part 70 Sources." Rule 370 allows sources with actual emissions less than 50% of the Title V major source thresholds to be designated as nonmajor by requiring such sources to keep records confirming nonmajor source status. Using status quo fenceline-to-fenceline stationary source emissions calculations, actual emissions at Vandenberg were determined to fall below 50% of the major source Title V thresholds for all pollutants except oxides of nitrogen (NOx). Because of ENVVEST and the environmental benefits that would be achieved by classifying Vandenberg as a nonmajor source, SBAPCD was willing to use an alternative approach to calculating ~~alter the way it normally calculates~~ emissions at DoD facilities. Using the regulatory flexibility described below in section A, the resulting NOx emissions were calculated to be less than 50 tons per year (major source threshold of 100 tons per year), thus qualifying Vandenberg for compliance with Rule 370.

Vandenberg, under this Agreement, has been given a compliance-driven means to fund permanent emission reduction activities that might alter its major source status beyond the pilot project period. During the pilot project period, all funding that was previously allocated for Title V compliance will be transferred to implement this final project agreement. The specific actions that will be taken by each party over the course of the project are described more fully below in section III. In short, SBAPCD used its discretion and legal authority to designate Vandenberg as a nonmajor source pursuant to authority delegated under Title V RULE 370, and Vandenberg committed to implement ENVVEST program emission reduction projects using currently identified DOD Title V compliance funds.

B. Conformance to ENVVEST criteria

A. 1. Regulatory Flexibility

In order to designate Vandenberg as a nonmajor source, SBAPCD adopted an amendment to Rule 1301, "Part 70 Operating Permits," to exclude nonroad Tactical Support Equipment and selected Infrastructure and Building Maintenance equipment from the applicability determination for Title V permitting at a DoD facility that enters into an ENVVEST final project agreement and submits and has approved by the Control Officer of SBAPCD a plan that achieves at least 10 tons per year or more of ozone precursor emissions reductions. Rule 1301 also requires that the plan be made federally enforceable by EPA. (See Attachment __)

In addition, the Air Pollution Control Officer for SBAPCD exercised his discretion to designate certain groups of emission units to be separate and distinct stationary sources for the purposes of Title V only. These units include residential units and personnel related amenities. This discretion was consistent with EPA's August 2, 1996 policy entitled, "Major Source Determinations for Military Installations under the Air Toxics, New Source Review, and Title V Operating Permit Programs of the Clean Air Act (Act)," which allows personnel related amenities and residential housing to be separated from the primary activities at the Base because of differing source industrial classification (SIC) codes. (See Attachment __)

B. 2. Environmental Results

Upon being designated a nonmajor source, Vandenberg redirected all remaining Fiscal Year 1996 Title V compliance funds to implement ENVVEST Program emission reduction projects. The projected Fiscal Year 1997 commitment is $465,000 for follow-on projects. Additional funding for the Fiscal years of 1997 through 2001 will be At this time Vandenberg has requested through the normal budgeting process funds for the following periods for Title V compliance purposes:

FY'97 $465,000

FY'98 $ FY'99

$ FY'00 $

FY'01 $

All funding commitments by Vandenberg shall be in accordance with the Anti Deficiency Act (31 U.S.C. '1341). Emission reduction projects shall be funded from the funds estimated to be available in the totals identified above. Costs attributable to complying with SBAPCD Rule 370 will not be supported from those funds. All parties agree that administrative costs should be minimized to enhance the benefits of pursuing the ENVVEST initiative.

The minimum requirement under Rule 1301 is that annual ozone precursor emissions shall be reduced by a total of 10 tons by August 15 November 30, 2002.

C. 3. Cost Savings and Paperwork Reduction Vandenberg expects to realize cost savings and paperwork reduction by delaying, and potentially removing itself from, the requirements and associated costs of preparing a Title V permit application and complying with a Title V permit.

Administrative and enforcement costs incurred by SBAPCD for the development and implementation of this ENVVEST initiative will be documented and made available to the public. Costs that qualify as "reimbursable costs" under District Rule 210.I.C. will be accounted for separately and will be reimbursed by Vandenberg from the funds noted above.

D. 4. Description of Stakeholder Involvement (need Terry's input)

(OGC Comment -- "This is an IMPORTANT item. I am not at all sure that the series of public meetings elsewhere in the document meets EPA's idea of stakeholder involvement. All other XL projects have a specific, dedicated stakeholder group that works with the facility.")

E. 5. Innovation/Multi-Media Pollution Prevention (need Monte's input)

F. 6. Transferability and Feasibility (need Monte's input)

Vandenberg will document and report separately all costs related to administering and executing the FPA. This will assist in determining portability of the program to other DoD installations and for applicability of any lessons learned for private industry.

(Include an evaluation component; e.g., a report that discusses whether or not the pilot project is a success.)

7. Monitoring, reporting and evaluation

8. Worker Safety and Environmental Justice

The Vandenberg ENVVEST initiative does not create worker safety hazards or any disproportionately high and adverse human health or environmental effects on minority populations and low-income populations

.III. Implementation

To implement the project, the parties intend to take the following steps:

A. Vandenberg will develop and implement a three phase emissions reduction program. Phase I will focus on emission reductions from boilers, Phase II from internal combustion engines, and Phase III from solvent and coating applications. Each phase will begin with a feasibility study drafted by Vandenberg and reviewed by SBAPCD, Region IX, and the public. A primary objective of the feasibility studies will be to determine where and how Vandenberg can achieve the greatest amount of emission reductions in a cost effective manner. (How and when will specific activities be selected? Where does the contractor fit in?) A plan outlining the emission reduction goals and monitoring, testing, and certification performance protocols will be submitted to SBAPCD for approval pursuant to Rule 1301.

B. SBAPCD will submit to Region IX for approval into the Santa Barbara portion of the California State Implementation Plan (SIP) the relevant portions of Rule 1301 designed to implement the ENVVEST Program as well as Vandenberg's approved emission reductions plan required under Rule 1301.

C. Region IX will propose to approve Rule 370 "Potential to Emit -- Limitations for Part 70 Sources," which allows sources with actual emissions less than 50% of the Title V major source thresholds to be designated as nonmajor sources; the relevant portions of Rule 1301 designed to implement the ENVVEST Program; and Vandenberg's approved emission reductions plan required under Rule 1301, as an amendment to the California SIP. A copy of these documents are contained in Attachment __. Region IX will propose to approve the above revisions to the SIP as a direct final action.

IV. Administration of the Agreement

1. Duration and termination/renewal of agreement

This agreement will expire on November 30, 2002. If, prior to expiration, additional pollution prevention opportunities are identified, the parties may opt to revise the emission reduction goals and extend the agreement.

(To be discussed -- FPA termination. Vandenberg proposes to include termination procedures for voluntary reasons, inadequate emission reductions, applicability of title V, and change in local air pollution control authority. This FPA draft includes termination procures if there is a bump-up. Given that the FPA is not a legally binding document, is it necessary for additional termination procedures? What is the effect of a termination on Rule 1301?)

2. ~~Modification of agreement~~Events preventing implementation of agreement

If at any time during implementation of a Final Project Agreement Vandenberg reasonably determines and Region IX and SBAPCD concur that any requirement of such Agreement cannot be met due to circumstances beyond Vandenberg's control (including, but not limited to, materially changed site conditions that could not reasonably have been anticipated, or the significant failure of an innovative technology) Region IX, SBAPCD, and Vandenberg will attempt to negotiate mutually acceptable changes to the Final Project Agreement.

3. Redesignation contingency plan

In the event EPA redesignates the Air Pollution Control District wherein Vandenberg is located as "serious" nonattainment for the ozone national ambient air quality standard (NAAQS) during the term of this agreement, the parties will have one year from the date of such designation to evaluate the effects. At the conclusion of this one year period, the parties will have agreed to a legally supportable plan for the continuation of the ENVVEST program or Vandenberg will submit a Title V permit application.

The basis for the one year period is that SBAPCD Rule 1301 and 40 CFR part 70 require major stationary sources to submit a title V permit application within one year of becoming subject to title V. Vandenberg, while not considered a major stationary source pursuant to this agreement, will likely become major as a result of a redesignation, thus becoming subject to title V.

(To be discussed -- partial benefits if early termination. If ENVVEST is discontinued as a result of a redesignation, then? ... environmental benefits? ... funding for environmental reduction projects?)

~~3. Force majeure (OPTIONAL AT REQUEST OF VANDENBERG)~~

~~(Covered by "2" above "Events preventing implementation of agreement.")~~

4. Dispute resolution (OPTIONAL) If there is a disagreement between any party over the implementation of this final project agreement, representatives of the three agencies will meet to discuss and attempt to resolve the dispute. (SANTA BARBARA PREFERRED OPTION)

Any dispute that arises with respect to the meaning, application, implementation, interpretation, amendment, termination or modification of the FPA, or with respect to Vandenberg's implementation of the FPA, the resolution of which is not expressly provided for in the FPA, will in the first instance, be the subject of informal negotiations, except with respect to Section IV.7. To initiate informal negotiations, any party which believes it has a dispute with any other party will simultaneously notify all of the parties, in writing, setting forth the matter(s) in dispute. If the dispute cannot be resolved by the parties within thirty-five (35) days of receipt of such notice, then one or both the parties may invoke non-binding mediation by setting forth the nature of the dispute, with a proposal for its resolution, in a letter and submit it to (the EPA Region IX Administrator; a three person dispute resolution committee consisting of ___; or other???) requesting an informal mediation meeting. Any option, verbal or written, expressed by (Regional Administrator/DRC)will be non-binding. (OGC working on model language that is similar to this version.)

5. Public participation T

he parties will sponsor public meetings, beginning in November 1997, and semiannually thereafter to brief interested members of the public on the progress being made toward meeting the ENVVEST goals. The meetings shall inform the public of the steps taken to reduce pollution and include information on proposed steps to meet the goals of the FPA and solicit comment from the public on the progress made towards meeting the goals of the agreement or any other matter relevant to the execution of the agreement. These meetings will be held in a location in Santa Barbara County, not on Vandenberg, that is accessible to the public and at a time and place agreed to by the parties to this agreement.

6. Public records and information

Vandenberg will issue, beginning on January 1, 1997, and every three months semiannually thereafter until completion of the agreement, progress reports which document progress toward goals established by this agreement. The reports will document equipment changes and replacements, process changes and other relevant facts which support any assertions of actual pollution emission reductions. The reports will be provided to SBAPCD, Region IX, and any interested party that requests such reports. In addition, Vandenberg shall maintain the reports in local public libraries in Santa Barbara City, and in the Lompoc public libraries for towns within 10 miles of library near Vandenberg Air Force Base.

7. Enforcement measures

While this agreement is not legally binding, the requirements of SBAPCD Rule 370 "Potential to Emit--Limitations for Part 70 Sources"; SBAPCD Rule 1301 "Part 70 Operating Permits," definition of "Stationary Source"; and Vandenberg's emission reduction plan approved by SBAPCD are binding and legally enforceable by the District. Upon EPA approval of these requirements into the SIP, they will also be enforceable by EPA and citizens under the Clean Air Act. District and federal enforceability of the above provisions will remain in effect until such provisions are modified or rescinded by SBAPCD and approved by EPA. (See Attachment __) As a practical matter, these enforcement measures make Vandenberg accountable for achieving the emission reductions set out in the plan submitted pursuant to Rule 1301 and provide the District, EPA, and citizens with enforcement authority if such reductions are not achieved. All local, state, and federal regulations and policies governing enforcement of Vandenberg will remain effective and be fully enforceable.

8. Periodic Review and evaluation activities Each party to this agreement will review this agreement, beginning with the issuance of the report specified in section IV.6. above, annually. The assessment shall include whether the goals of the agreement with respect to pollution emission reductions have occurred.

9. Reservation of rights for agencies to act in cases of imminent hazard or unanticipated threats, or to exercise any authorities not specifically affected by the agreement or its implementing mechanisms, including criminal enforcement authorities. (IS THIS MANDATORY?? OZONE EXCEEDANCES WOULD NOT CAUSE AN IMMINENT THREAT.)

10. Severability (OPTIONAL--Discuss severability if agreement is modified.) Should any term or provision of the FPA be modified or withdrawn, to any extent, such modification or withdrawal shall not affect any other term or provision of the FPA.

11. Means of giving notice When giving notice with regard to FPA modification or termination, the parties will contact the FPA signatories in writing. Informal communication may be given by phone or in writing to the following contact persons:

Karl Kneeling, (805) 734-8232 (x-63072) Vandenberg AFB

Sara Segal, (415) 744-1569 EPA Region IX

Terry Dressler, (805) 961-8929 Santa Barbara APCD12.

Contact points and signatories This agreement is effective upon the date of the last signature by the parties and will remain effective until ____ unless amended by mutual consent or terminated by any party.

______________________________________________________________

Signature Date

FELICIA MARCUS

Regional Administrator United States Environmental Protection Agency, Region X

______________________________________________________________

Signature Date

LOUIS D. VAN MULLEM,

Colonel, USAFChief, Environmental ManagementVandenberg Air Force Base

______________________________________________________________

Signature Date

DOUGLAS W. ALLARD

Air Pollution Control Office

rSanta Barbara County Air Pollution Control District

Vandenberg Air Force Base (AFB)

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