Flexible Air Permitting and EPA's Proposed Rule—Briefing Sessions for Performance Track Participants

Pilot Flexible Air Permit Profile

Source: DaimlerChrysler Corporation
Facility Type: Automobile Manufacturer
Location: Newark, Delaware

The Delaware Department of Natural Resources and Environmental Control (DNREC) worked with DaimlerChrysler to develop a flexible air permit that enabled the plant to make operational changes in a streamlined manner. The permit enabled the plant to compete for production opportunities within the company’s global network of manufacturing operations, including its selection as the site for future production of the Dodge Durango hybrid vehicle. By eliminating many potential air permitting delays to making operational changes, the flexible permit helped the plant to avoid closure, retaining hundreds of jobs. The flexible permit also ensured that all applicable regulatory requirements were addressed and facilitated changes made through the plant’s active pollution prevention program.

DaimlerChrysler’s Newark, Delaware automobile assembly plant received a flexible New Source Review air permit (Permit No. APC-95/0569) in September 1995, and a flexible title V air operating permit (Permit No. AQM-003/00128) in October 1999 which incorporated the former permit’s plant-wide applicability limits (PALs) and other flexibility provisions. The flexible permit allowed advance approval of specified changes and an expedited, 45-day review process for those changes not explicitly covered. This is compared with the typical 2-3 years associated with issuing a conventional title V air permit in Delaware.

Tools & Methods Used in the Pilot Permit

Alternative Operating Scenarios (AOS) and Advanced Approvals	Approvals for specified projects and categories of operational changes, including modifications to or construction of new vehicles assembly and coating process units and equipment.
Approved Replicable Methodologies (ARMs)	Replicable testing procedure for updating pollution control device parameters.
Plantwide emissions caps	Plant-wide applicability limits (PALs) for NOx (150.71 tons/year; 4.86 tons/day) and VOC (1,112.8 tons/year; 5.3 tons/day).
Pollution prevention (P2)	Enforceable P2 performance requirement for topcoat emissions and P2 reporting requirements.
Implementation logs	Log maintained to document changes in use of alternative operating scenarios.

Environmental Benefits and Pollution Prevention

Reduced allowable and actual air emissions. Newark’s plant-wide emissions caps were set lower than those that would have been required under conventional permitting. The VOC PAL, based on actual VOC emissions for 1990, was reduced partly to reflect the effect of industrial solvent cleaning rules adopted after 1990, to an annual limit of 1112.8 tons per year (tpy). Actual VOC emissions decreased from 1165 tpy in 1994 to 776 tpy in 2000, despite increases in production. NOx emissions were similarly reduced from 174 tpy in 1994 to 61 tpy in 2000.
Easier P2 implementation. Most emissions reductions have resulted from pollution prevention activities. The flexible permit encouraged pollution prevention initiatives, since the facility had strong incentives to maintain emissions levels well below the plant-wide limits to assure compliance and to create room for increased economic growth under the emissions cap. DaimlerChrysler’s P2 efforts include coating process modifications to reduce VOCs and hazardous air pollutants (HAPs). The facility predicted that the permit flexibility will enable the site to test new clearcoat paint applications and material technology which are expected to further lower VOC emissions.

Economic Competitiveness Benefits

Agile manufacturing. The Newark facility made over 90 changes in coating system components, coatings, cleaning activities, fuel fired sources, source locations, ventilation systems, and emissions control systems under the flexible permits between 1995 and 2000.
Job retention and plant competitiveness. The flexible permitting process was a major factor in DaimlerChrysler’s decision to invest $325 million and produce the Dodge Durango at the Newark site, helping to secure approximately 2,900 jobs at the plant. The facility is planning substantial model styling changes, which will require more agile equipment to paint contours appropriately. The flexible permit can allow such changes to proceed without case-by-case permitting delay, provided that the facility remains below its PALs. Air permitting flexibility also plays a factor in DaimlerChrysler’s business decisions over whether to pursue projects in the United States or in other nations.

Monitoring and Enforceability

Replicable monitoring and routine reporting. DaimlerChrysler tracked VOC emissions through mass-balance equations and EPA’s automotive protocol, accounting for pollution control equipment performance. The PAL permits require more frequent reporting (monthly), providing DNREC with more information on overall facility emissions, changes, and P2 activities than they receive under conventional permits. The flexible permit has also brought about automated NOx monitoring at the Newark facility.

Corporate and Government Efficiency

Compliance burden reduction. According DaimlerChrysler, the permits have saved approximately 510 staff hours associated with regulatory applicability assessment and permitting actions, and enabled the facility to remain on schedule for plant upgrades. The cost of facility downtime was reported to be as high as $1.8 million per hour, with one Major New Source Review netting process occupying 400 to 800 staff hours.
Paperwork and backlog reduction. DNREC officials indicated that the flexible permits have reduced the time and resources needed for case-by-case review of construction permitting applications.

Public Response

Conventional public comment process. The NSR and title V permits each went out for a standard public comment period, advertised as unique permits with flexible conditions. No public hearings were requested, and no public comments were received. Unrelated to the flexible permit, DaimlerChrysler personnel have worked to evaluate and address ongoing public interest in the Newark facility due to odor concerns. Response efforts included reformulating paint recipes and increasing stack heights.