EXHIBIT A for RFP. Navajo Nation Environmental Protection Agency Air Quality Control/Operating Permit Program. Scope of Work
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1 EXHIBIT A for RFP Navajo Nation Environmental Protection Agency Air Quality Control/Operating Permit Program Scope of Work Preparation of Part 71 Operating Permit Renewals for Two Power Plants Proposal Due: May 19,
2 Preparation of Part 71 Operating Permit Renewals for Two Coal- Fired Power Plants on the Navajo Nation A. Introduction The Operating Permit Program ( OPP ), a program under the Air and Toxics Department of the Navajo Nation Environmental Protection Agency ( NNEPA ), is issuing a Request for Proposals ( RFP ) from all qualified Air Permitting consulting firms to submit proposals for the preparation of Part 71 Operating Permits (Title V Permits) for the two power plants located on the Navajo Nation. The two power plants are: APS Four Corners Power Plant (FCPP) located near Fruitland, New Mexico and SRP Navajo Generating Station (NGS) located by Page, Arizona. Both power plants are issued permits by the Navajo Nation pursuant to an agreement between the power plants and the Navajo Nation and a delegation of authority to the Navajo Nation from the United States Environmental Protection Agency ( USEPA ). The scope of work for this project consists of the following tasks: (1) Review permit renewal applications submitted by the two power plants and determine completeness; request any additional information, as needed, from the facilities to complete the applications. (2) Develop the Statement of Basis ( SOB ) for each of the two power plants, prepare the initial draft permits, and submit the initial draft permits to OPP, USEPA, and others as needed for review. (3) Incorporate the comments received into the initial draft permits and prepare new drafts, submit the new drafts for review by all concerned, and solicit comments from the public pursuant to the federal operating permit regulations, 40 C.F.R. Part 71, and the Navajo Nation Operating Permit Regulations. (4) In consultation with OPP, incorporate changes in the draft permits in response to the comments received. (5) Address all communication, recordkeeping, reporting, evaluation, and deadline requirements as agreed upon with OPP. (6) Complete preparation of the finalized permits and submit the permits to OPP by the deadlines agreed upon with OPP. Due to the sensitivity of this project, OPP may require that the project be completed on an expedited schedule. For more details about the Request for Proposal ( RFP ), contact Tennille Begay at NAQCP/OPP Office, P.O. Box 529, Fort Defiance, (Rt. 12 North Bldg, # 2837) AZ 86504, (Tel.: ). An RFP package can be requested via at tbbegay@navajo-nsn.gov. One original and three copies of the technical proposal, along with a cost proposal in a separate envelope, are due at the NAQCP/OPP office by 5:00 P.M. on May 19, The award of the consultant will be made in accordance with the Navajo Business and Procurement Act, 12 N.N.C et seq.; the Navajo Nation Procurement Act, 12 N.N.C. 301 et seq.; the Navajo Nation Business Opportunity Act, 5 N.N.C. 201 et seq.; and other applicable statutory and regulatory requirements. B. Background The NNEPA is a Navajo Nation regulatory agency. The Navajo Nation is one of the largest Indian Nation in the United States and the first Indian Tribe to receive delegated authority from the USEPA for its Air Quality Permitting Program. NNEPA administers the OPP in compliance 2
3 with federal operating permit regulations codified in 40 C.F.R. Part 71, the Navajo Nation Operating Permit Regulations, and other environmental standards and regulations. NNEPA received delegation approval for OPP from USEPA Region IX on Oct. 13, 2004 and received a supplemental delegation specifically covering FCPP and NGS on March 21, This authority allows NNEPA to administer an air permitting program under the CAA. The Navajo Nation is the first tribe to be authorized to issue Clean Air Act ( CAA ) operating permits to facilities operating on tribal lands. The Operating Permit Program s goal is to ensure that air emissions from the thirteen major sources on the Navajo Nation (each by definition having the potential to emit pollutants over 100 tons per year) are regulated. These sources are required to obtain five-year operating permits that include emission limits and compliance measures, such as monitoring, record keeping, reporting and testing, and to maintain those limits in accordance with Navajo Nation Operating Permit Regulations, Navajo Nation Acid Rain Deposition Control Regulations, and all other applicable Navajo and federal regulations. C. Detailed Description of Project Tasks For this project, the selected consulting firm will perform the tasks described below but does not have to limit itself to these tasks. The CONSULTANT should consider the overall scope of this project in performing the task. The OPP has a goal of issuing the permits to both FCPP and NGS by the end of the year therefore, it is important that the CONSULTANT work closely with OPP to address all pertinent activities. The CONSULTANT must be very familiar and experienced with USEPA s guidelines for preparing air permits and also understand the expectations of NNEPA. Communication with USEPA and state air districts will be most useful for a better understanding of the scope of the project. Also of importance is a working knowledge of the air quality concerns and issues in the Four Corners area, including familiarity with recent developments concerning existing and proposed power plants in the Four Corners region. Task 1: Review permit renewal applications submitted by the two power plants and determine completeness; request any additional information, as needed, from the two power plants to complete the applications To undertake activities under this task, the CONSULTANT will designate qualified individuals with experience in reviewing applications from power plants to undertake a detailed technical review of the permit applications. An initial administrative completeness review will be conducted by the CONSULTANT to verify that all required elements of the application are present. If the application requires additional information to determine completeness the Navajo Nation has the authority and is justified to request and receive any additional information, if needed, to determine the completeness of the applications to proceed with the drafting of the permits. The CONSULTANT will perform a detailed technical review of the permit applications to include, but not be limited to, the following tasks: a) identify any meaningful discrepancies in the application which could significantly affect air emissions or which could indicate meaningful 3
4 errors or omissions; b) evaluate applicant s assumptions and verify calculations and resultant air emissions for each type of significant equipment and process listed in the application. If potential emissions from otherwise insignificant activities would trigger additional requirements, they must also be included in the analysis. The CONSULTANT will verify if the emission factors or equations used to calculate air emissions from each source documented are reasonable and derived from USEPA data, performance test data or some other acceptable scientific basis. If significant errors are found in the applicants calculations the CONSULTANT will undertake recalculations and provide and discuss the results to the program. An analysis of the emissions of hazardous air pollutants will be also conducted in accordance with acceptable air toxics permitting procedures. All modeling analyses and other significant rulemaking determinations will be reviewed and verified. The CONSULTANT will review all applicable air quality requirements, including the Federal Implementation Plans (FIPs) for the power plants, and determine whether the plants will be in compliance with all of them. The CONSULTANT will document any information gathered from the power plants during this phase and share and discuss them with OPP. Task 2: 2a. Develop the Statement of Basis (SOB) for the two power plants and prepare the initial draft permits, submit initial draft permits to NNEPA, USEPA and others as needed for review, and receive comments The CONSULTANT will utilize the applications and any supplemental information gathered from the power plants as a roadmap to develop the SOB for each power plant. Once the SOBs are drafted the CONSULTANT will submit them to OPP for review and comments. At this point, modifications of the SOBs may be needed, which will be handled by the CONSULTANT. Once the SOBs have been reviewed and found acceptable, the CONSULTANT will proceed with initial drafting of the permits. The CONSULTANT will ensure that the draft permits incorporate adequate emission control technologies and monitoring requirements to achieve compliance with all applicable federal rules and regulations. The draft permits will be submitted to NNEPA, USEPA and others as needed for review. The CONSULTANT will coordinate with the program in reviewing and sorting through the comments. Once the comments from the reviewers are received by the CONSULTANT and the scope of these comments determined, the CONSULTANT will proceed to the next stage of the project. 2b. Incorporate the comments received into the initial draft permits to prepare new drafts, submit the new drafts for review by all concerned, and solicit comments from the public pursuant to the federal operating permit regulations, codified in 40 C.F.R. Part 71, and the Navajo Nation Operating Permit Regulations This task will involve the CONSULTANT reviewing with OPP staff (and others as determined by OPP) any comments received on the draft permits and, under the guidance of the program, incorporating needed changes and redrafting the permits. The redrafted permits will be submitted 4
5 to NNEPA, USEPA, and others as directed by OPP. The program will be issuing public notices regarding the draft permits and arranging for public hearings. The CONSULTANT will be responsible for providing engineering support throughout the public comment process and at the public hearings. The CONSULTANT will be required to provide written responses to questions or comments raised during the public comment period. Public comment period requirements will be followed. 2c. In consultation with OPP, incorporate changes in the draft permits in response to comments received Under this task, the CONSULTANT will summarize the comments received, discuss them with OPP and others as needed, and draft responses to all significant comments. Development of the Response to Comments document might require discussion with individuals identified by OPP. If comments received require contacting one or both of the facilities for clarification purposes, the CONSULTANT will receive assistance from OPP in doing so. All technical and operational issues will be addressed directly with the power plants. Legal issues should be referred to OPP. Updates and communication on related environmental issues may be shared with the Navajo Nation Oversight Committee as well as NNEPA s legal counsel. The CONSULTANT shall receive guidance from the program in responding to public comments that deviate from the specific elements sought for comment. Task 3: Address communication, recordkeeping, reporting, evaluation, and deadline requirements as agreed upon with OPP This task involves the preparation and establishment of communication, record-keeping and reporting requirements in compliance with standards to be identified by OPP. Communication may be electronic, by phone, or by mail. Express mail or personal delivery of documents and information may be required. Site visits and visits with the OPP staff may be required. Once the CONSULTANT is selected there will be a kickoff meeting as well as follow-up meetings with OPP. The CONSULTANT will participate in and provide minutes summarizing conference calls scheduled by OPP. Task 4: Complete preparation of the finalized permits and submit the permits to the program using deadline dates agreed upon with OPP The success of this project will be defined by the accomplishment of the main goal of the project, namely the preparation of the finalized permits to be issued to the two power plants. The final permit will include all of the following: (A) Enforceable permit conditions containing all elements required to be included in the permit. There must be specific conditions, including all applicable emission limits/standards and operating limitations necessary to ensure compliance with all applicable federal and tribal air quality requirements along with associated monitoring/record keeping, reporting, and testing requirements. The permit conditions must list 5
6 the source of all requirements and identify which of these conditions are federally enforceable and which are locally enforceable. (B) An applicability analysis on why potentially applicable requirements were not included in the permit conditions. (C) An explanation of the engineering analysis performed on the permit application. This should include a listing of all significant assumptions as well as sample calculations. (D) A comments section listing meaningful information relevant to the processing of the application. Four copies of the finalized permits will be submitted to NNEPA along with an electronic copy. A close out report will to be required to determine the completion of this project. In accomplishing the goals of the project in a timely and effective manner, the CONSULTANT will establish a procedure to evaluate the performance and measure the success of various tasks described above. The CONSULTANT will also initiate corrective measures, in consultation with OPP. The corrective actions may involve situations when a particular task is running behind schedule for unforeseen reasons. A Project Evaluation and Review Technique (PERT) method may be utilized for evaluating progress along with a timeline. Periodic meetings and reporting will assess the short-term as well the long-term success of the project activities. Periodic updates on the project activities and recommended corrective actions will be required to discuss the project s success and failures. Based on these reports, recommended corrective actions will be implemented in a timely manner and the performance measurement method will be updated. The CONSULTANT will submit written reports about the progress of the project and submit relevant information, as needed, to OPP on a monthly and quarterly basis. Periodic meetings and/or conference calls will be arranged, as appropriate, during the course of the project. OPP will evaluate the progress of the tasks under the project and provide input to guide the CONSULTANT. 6
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