Vandenberg Air Force Base (AFB)

FPA Draft 2

italic - OGC Draft FPA outline, 6/96

underline - MOA between DoD and EPA, 11/95
times bold - Interim Agreement, 6/96

double underline - Berry XL Project final draft FPA

SMALL CAP - Maj. Smith draft FPA

normal - Cece draft

FINAL PROJECT AGREEMENT

VANDENBERG 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.

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 ENVVEST 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] which will be legally enforceable.

II. Description of the project

The 30th Space Wing at Vandenberg Air Force Base (. . . does what??). 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 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 emissions calculations, actual emissions at Vandenberg were determined to fall below 50% of the major source Title V thresholds for all pollutants except NOx. Because of ENVVEST and the environmental benefits that would be achieved by classifying Vandenberg as a nonmajor source, SBAPCD was willing to 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. In short, SBAPCD used its discretion and legal authority to designate Vandenberg as a nonmajor source pursuant to authority delegated under Title V, and Vandenberg committed to implement ENVVEST program emission reduction projects using currently identified Title V compliance funds.

A. 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 of DoD facilities that enter 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 __) I

n 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 _________. 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 amenities to be separated from the primary activities at the Base because of differing source industrial classification (SIC) codes. (See Attachment __)

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

C. 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.

D. Description of Stakeholder Involvement

E. Innovation/Multi-Media Pollution Prevention

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

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 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 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 ____. If, prior to expiration, additional pollution prevention opportunities are identified, the parties may opt to revise the emission reduction goals and extend the agreement

2. Modification 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. Force majeure (OPTIONAL AT REQUEST OF VANDENBERG)

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.

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.

5. Public participation

THE 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 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 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 PUBLIC LIBRARIES FOR TOWNS WITHIN 10 MILES OF 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 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 EXCEEDENCES 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 APCD

12. 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

SALLY G. SEYMOUR

Director, Office of Strategic Planning and Emerging IssuesUnited States Environmental Protection Agency, Region IX

______________________________________________________________

Signature Date

LOUIS D. VAN MULLEM,

Colonel, USAFChief, Environmental ManagementVandenberg Air Force Base

______________________________________________________________

Signature Date

DOUGLAS W. ALLARD

Air Pollution Control Officer Santa Barbara County Air Pollution Control District

Vandenberg Air Force Base (AFB)

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