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Intel

Final Project Agreement -- Terms and Conditions of the FPA

  1. AIR EMISSIONS Intel will comply with all applicable federal, state and Maricopa County air emissions requirements as set forth in the air permit, a copy of which is included in Attachment 2 (to be issued at a later date by Maricopa County Environmental Services Deptartment) to this Agreement. Under the air permit, Intel is required to limit its emissions of criteria and hazardous air pollutants from the Ocotillo Site to levels that are below specified Plant Site Emissions Limits ("PSELs"). The air permit provides operational flexibility to Intel through the pre-approval of certain activities, including changes in equipment and processes that are needed in advanced semiconductor manufacturing and the potential construction of new facilities at the Site 1, provided that air emissions remain below the PSELs and all other air permit conditions are satisfied. In addition, as part of this FPA, Intel commits to undertake additional voluntary initiatives to limit air emissions and to analyze the potential impacts of air emissions from the Ocotillo Site.

    1 The types of new facilities that can be built on the Site under the preapproval procedure of the air permit are limited to semiconductor operations.

    1. Plant Site Emissions Limits
    2. The air permit establishes PSELs for emissions of volatile organic compounds ("VOCs"), oxides of nitrogen ("NOx"), carbon monoxide ("CO"), particulate matter of 10 microns or smaller ("PM10"), sulfur dioxide ("SO2"), combined organic hazardous air pollutants ("HAPs")2 , combined inorganic HAPs and phosphine (also an inorganic HAP). In particular:

      • The PSEL for VOC emissions for the Ocotillo Site is 40 tons per year.
      • The PSEL for NOx emissions for the Ocotillo Site is 49 tons per year.
      • The PSEL for CO emissions for the Ocotillo Site is 49 tons per year.
      • The PSEL for PM10 emissions for the Ocotillo Site is 5 tons per year.
      • The PSEL for SO2 emissions for the Ocotillo Site is 5 tons per year.
      • The PSEL for aggregate combined organic HAP emissions for the Ocotillo Site is 10 tons per year.
      • The PSEL for aggregate combined inorganic HAP emissions for the Ocotillo Site is 10 tons per year.
      • The PSEL for phosphine emissions for the Ocotillo Site is 5 tons per year. Phosphine emissions also shall be included in the aggregate combined inorganic HAP emissions PSEL.

      These PSELs establish enforceable limits on emissions of VOCs, NOx, CO, PM10, SO2, organic HAPs, inorganic HAPs and phosphine from the Ocotillo site. Under the air permit, Intel is required to comply with these PSELs even if it makes process or equipment changes or constructs new facilities at the Ocotillo Site. The PSELs are set at levels that are below the current threshold for major sources of VOCs, NOx, CO, PM10, SO2 and HAPs under the federal Clean Air Act and Maricopa County Pollution Control Regulations. The PSELs will remain below the major source thresholds even if the Maricopa County area is reclassified to serious nonattainment for ozone.

      2 HAPs are defined in this FPA, and in the air permit, as the hazardous air pollutants that are identified in Section 112(b) of the federal Clean Air Act, as amended.

    3. Operational Flexibility; Preapproval Of Modifications
    4. The air permit allows for operational flexibility through the pre-approval of certain activities, including changes in equipment and processes that are needed in advanced semiconductor manufacturing and the potential construction of new facilities at the Site, provided that air emissions remain below the PSELs and all other permit conditions are satisfied. Intel will include a list of all significant changes made at the Ocotillo Site in the reports discussed in Section II(A)(4) below.

    5. Additional Protective Measures
      1. Air Quality Evaluation
      2. To provide additional assurance that the PSELs for HAPs are sufficiently protective of human health, Intel, in consultation with EPA, ADEQ and MCESD, determined through screen modeling that the July 15, 1992 1-hour, 24-hour, or annual (if available) Arizona Ambient Air Quality Guidelines ("AAAQGs") will not be exceeded at the property line for any HAP listed in attachment 3 of this FPA if that HAP is emitted at its PSEL. The modeling is based on the conservative assumption that each chemical could be emitted at a constant level of 10 tons per year (or 5 tons per year in the case of phosphine), even though the PSELs limit aggregate emissions from all inorganic HAPs at 10 tons per year, and all organic HAPs at 10 tons per year. In addition to HAPs, Intel has performed screen modeling for a number of additional chemicals identified in attachment 3 of this FPA. An explanation of the screen modeling that has been completed for these chemicals is also provided in Attachment 3 to this FPA.

        Intel also is required by its air permit to undertake a screen modeling analysis in connection with the utilization of a new chemical that generates air emissions for which an AAAQG has been established, but which has not been subject to the screen modeling described above. That is, Intel will apply the conservative assumption that the new chemical will be emitted at a constant rate of 10 tons per year, or at a rate that corresponds to the expected emissions level for that chemical, and then utilize screen modeling to evaluate whether the AAAQG would be exceeded under such circumstances. Intel will limit annual emissions of any such chemical to below the appropriate AAAQG as predicted by the screen model3 at the property line.

        3 If application of a screen modeling analysis indicates a potential for exceeding the relevant AAAQG, the permit allows Intel to use a more refined, EPA-approved analysis. The permit requires that any additional modeling or analysis must be undertaken in consultation with, and with the approval of, ADEQ and MCESD. The permit also requires that such modeling shall take into account any changes in relevant parameters that may have occurred due to activities at the Site.

        Finally, under this FPA, Intel also commits to undertake a special analysis for other new chemical substances that are introduced to the Site in the future which generate air emissions and have not already been evaluated under the air permit, or under the AAAQG screen modeling procedure set forth above, and which present potential concerns to human health or the environment. In such a case, Intel agrees to consult with MCESD and the Arizona Department of Health Services to determine if emissions from such a chemical may pose a concern based on screen modeling of potential property line concentrations. Intel will use its best efforts to initiate consultations as early as practicable before the new chemical substance is used in production quantities at the Site. If it is determined that an emissions limit at the property line is necessary to protect human health, Intel will limit its annual emissions below the limit which is identified.

        In addition to these commitments to model the impact on the community of air emissions at the property line, Intel also will evaluate maximum on-site (i.e., inside-the-property line) modeled ambient air concentrations of certain chemicals that generate air emissions to ensure employee safety and the safety of individuals that may visit the Site. Specifically, Intel commits to evaluate maximum on-site modeled concentrations of all chemicals used at the Ocotillo Site which have been modeled under the air permit, to assess the potential for exposure to employees and visitors on the property at the 1-hour AAAQG exposure level for such chemicals. If Intel's inside-the-property line screen model analysis indicates a potential for exceeding the relevant AAAQG for a particular chemical used on-site, Intel may conduct a more refined, EPA-approved analysis. Any additional modeling or analysis will be undertaken in consultation with, and the approval of, EPA, ADEQ and MCESD. If In tel declines to perform this additional analysis, or if such analysis confirms the results of the screen modeling, Intel commits to limit its emissions of that chemical below the level that would not exceed the 1-hour AAAQG at the point of maximum concentration within the property line.

      3. Air Emissions Management
      4. The air permit for the Ocotillo Site does not restrict Intel to its current level of production activity and provides pre-approval for changes and construction that may increase production, provided Intel's air emissions remain below the PSELs and all other permit conditions are satisfied. Under the FPA, however, Intel commits that it will not increase the level of its emissions beyond the levels proportional to increases in production activities. To demonstrate this commitment, Intel agrees to develop a production based performance standard by January 1, 1997. The production based performance standard will measure pounds of total VOCs and aggregate HAPs emitted per standardized unit of production. Intel will include in its annual air emissions reports the total VOC and aggregate HAP emissions per unit of production at the Ocotillo Site. This measurement will allow the public to verify that any increase in VOC and HAP emissions at the Ocotillo Site is the result of increased production activities and no t a consequence of decreased environmental control.

    6. Reporting Of Air Emissions
    7. Compliance with the PSELs will be verified through periodic emissions reporting. This reporting, which satisfies all MCESD reporting requirements, has been incorporated into the integrated reporting form for the Ocotillo Site (see Section II(G)). The emissions reporting requirements include:

      • Quarterly reporting of actual air emissions of all pollutants that are subject to a PSEL or for which specific limits have been identified under the procedures described above. The emissions calculations will be based on mass balance and emissions factor calculations, as described more fully in the air permit;

      • Annual summary of actual aggregate emissions of all pollutants for which a PSEL exists;

      • Annual summary of known actual emissions of individual HAPs emitted above 1,000 pounds per year, and a listing of any known individual HAPs that were emitted in quantities less than 1,000 pounds per year; and

      • Annual reporting of VOC and HAP emissions per unit of production.

      The quarterly and annual reporting requirements on air emissions are based on 12-month rolling averages, which indicate the actual emissions of regulated pollutants for the preceding 12 months. Such periodic reporting will allow the public to verify on an ongoing basis that Intel has fully complied with the PSELs in the air permit. In addition, Intel will disclose on an annual basis its total VOC and aggregate HAP emissions per unit of production at the Ocotillo Site.


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