The Ohio Environmental Protection Agency will eliminate individual air pollution permits for thousands of small Ohio businesses, as long as the emissions of those businesses fall below a certain level and meet other criteria.
The EPA will replace the individual permits with standards written into the law, a process called permit-by-rule. The permit-by-rule will apply only to specific categories of small businesses, such as print shops and gasoline stations.
The requirements of the permit-by-rule will be identical to those of the individual permits. The business cannot exceed specified emission limits and must follow a number of other rules specific to its industry.
An auto body refinishing shop, for example, could perform no more than 50 jobs a week or use no more than 3,000 gallons of coatings per year. The business will be required to notify the state of its intent to operate under the permit-by-rule. The business must maintain five years of test records and file annual reports, just as it does under an individual permit. Penalties for violation of the permit remain, as does the EPA’s enforcement ability.
Let’s take a look at how this rule change could affect one small business.
You want to locate your new print shop somewhere in the Cleveland area. Under the current system, you must apply for a one-time permit to install equipment, and after you install the equipment, you must apply for a renewable permit to operate (PTO) that equipment. (Currently, the PTO backlog in Ohio is approximately 20,000.) EPA staff reviews your application and writes an individual permit for your business.
The permit lists the printing processes allowed, such as lithographic, flexographic, screen, digital or letterpress. Companies using rotogravure or operations that require add-on air pollution control devices are not eligible for permit-by-rule. The permit lists the emission limits for the facility, recordkeeping and reporting obligations, and various notifications.
And even though your permit is nearly identical to the permit for the printing company across the street (or in Youngstown or Toledo), each permit application is reviewed, written and issued individually by staff at the Ohio EPA in Columbus. For perspective, there are approximately 2,800 such print operations throughout Ohio.
Under the new permit-by-rule provisions, you would simply look at the rule to determine the requirements that apply; there would be no paper permit. You would not have the expense associated with a permit application and would not have to wait months for a permit to be issued before installing equipment.
Everyone’s obligations would be the same, unlike today’s situation.
This rule change will strengthen the EPA’s ability to monitor the state’s largest polluters, cut red tape for thousands of small businesses, encourage economic development and still assure Ohioans that the air they breathe is clean and safe. Air quality is not sacrificed. In fact, the EPA staff will now be able to do more inspections of higher-priority facilities. The rule change brings Ohio into line with what most large industrial states require, which will help it compete for jobs and industry. There are 76,000 permitted emission units in Ohio, compared to just 7,000 in Michigan. Further, while Ohio issues approximately 1,100 installation permits per year, Illinois issues 550, Kentucky 267 and Minnesota just 100.
Ohio has recently lost approximately 200,000 manufacturing jobs. We have to become more competitive. Yesterday, Ohio was competing with Michigan and Kentucky for factories, jobs and economic development. Today, we’re competing with India and China.
The EPA’s rule change is just one step toward helping Ohio remain competitive in the 21st century.
WILLIAM D. HAYES is a partner in the Cincinnati office of Vorys, Sater, Seymour and Pease LLP, specializing in environmental issues with a focus on air quality. From 1986 to 1991, he served as chief counsel to the Ohio EPA for air pollution issues. Recently appointed by Gov. Bob Taft, he serves as chair of the Ohio Clean Air Act Small Business Assistance Advisory Committee. Reach him at (513) 723-4024 or [email protected].
