Prevention of Significant Deterioration/Nonattain

ment ReviewThe Basics

Johnny Vermillion, P.E.Air Permits Division

Texas Commission on Environmental QualityEnvironmental Trade Fair 2012

Overview• NAAQS

• PSD

• Nonattainment

• Location of Equipment

• Netting

• Examples

TCEQMinor NSR

Chapter 106

Chapter 116

EPAMajor NSR

PSD

Nonattainment

SIPChapters

111112115117

EPA Control Rules

40 CFR60 - NSPS61 - NESHAP63 - NESHAP

(MACT

Standards)

TCEQ Health EffectsToxicology

Review

EPA Major NSRNAAQS

NAAQS• Primary NAAQS – protect public health

• Secondary NAAQS – protect public welfare

• Federal Clean Air Act – In compliance with NAAQS – attainment Out of compliance with NAAQS –

nonattainment

LeadNonattainment Area

Severe Ozone Nonattainment Area

Serious Ozone Nonattainment Area

Moderate PM10 Nonattainment

Area

PSD Program• New major sources

• Major modifications of existing major sources in attainment areas

• Criteria pollutants (pollutants with a NAAQS)

• Certain non-criteria pollutants

PSD ProgramMajor Source Definitions

• Named Source > 100 Tons/year (includes fugitive emissions)

• Un-named Source > 250 Tons/year

PSD Program Major Modification – Criteria Pollutants

CO > 100 Tons/yearNOX > 40 Tons/year

SO2 > 40 Tons/yearVOC > 40 Tons/yearPb > 0.6 Tons/yearPM > 25 Tons/yearPM10 > 15 Tons/yearPM2.5 > 10 Tons/year

PSD ProgramMajor Modification – Non-Criteria Pollutants

Fluorides > 3 Tons/yearSulfuric Acid Mist > 7 Tons/year

Hydrogen Sulfide > 10 Tons/year Total Reduced Sulfur > 10

Tons/yearPlus others........

PSD ProgramPSD Review Requires...

• Major for one regulated pollutant, major for all

• Application of BACT

• Air quality analysis (modeling)

• If within 100 km of a Class I Area, inform FLM

• PM10, PM2.5 include filterable & condensable

Nonattainment Program

• New major sources • Major modifications of existing major

sources in nonattainment areas• Most commonly encountered area -

ozone• Ozone regulated through NOX and VOC

Nonattainment ProgramWhat are the significant rates for a:

Major Source

&

Major Modification

It depends...

It depends...

...on the classification of the nonattainment area

DFW – Serious

Major Source ≥ 50 TPY Major Mod. ≥ 25 TPY

HGB – Severe

Major Source ≥ 25 TPYMajor Mod. ≥ 25 TPY

Nonattainment ProgramNonattainment Review Requires...

• Must be a major source or major modification for either NOX or VOC

• NOX and VOC are evaluated independently

• Application of LAER• Application of offsets

Nonattainment Program

What is an offset

Nonattainment ProgramOffset:

• An actual emission reduction, greater than or equal to the project’s emission increase

• The amount of offset depends...

Nonattainment ProgramOffset:

• An actual emission reduction, greater than or equal to the project’s emission increase

• The amount of offset depends... on the nonattainment classification

DFW – Serious

Major Source ≥ 50 TPY Major Mod. ≥ 25 TPY Offset Ratio = 1.2 to 1

HGB – Severe

Major Source ≥ 25 TPYMajor Mod. ≥ 25 TPYOffset Ratio = 1.3 to 1

Is it possible to.....

trigger both PSD and nonattainment, at the same time, for

the same pollutant?

Yes, yes it is !

For NOX...

Why?

Yes, yes it is !

For NOX...

Why?NOX is an ozone

precursor and has a NAAQS of its

own

Location of New or Modified Equipment

Is the equipment located:

In an attainment or nonattainment area?

At a grassroots or at an existing minor source?

At an existing major source?

To trigger major NSR, project must be a major source in and of itself

Location of New or Modified Equipment

Location of New or Modified Equipment

To trigger major NSR, the net emissions increase must be > major modification significant emission rate

Netting How do you know if a

modification is a “major modification” triggering major NSR?????

You conduct a “netting” exercise

Netting• An “applicability step” to determine

if major NSR has been triggered

• An evaluation of : The current project, plus All creditable increases and decreases

within the contemporaneous period (netting window)

Netting• Is conducted on a pollutant-by-

pollutant basis

• Ensures smaller projects do not add up to be a major modification

• For NOX, it’s possible to trigger netting for both PSD and nonattainment

Netting Definitions

Baseline Actual Emission Rate--• Emissions, in Tons/year, actually

emitted during a consecutive 24-month period out of...The previous 10 years or

The previous 5 years (for electric utilities)

Netting DefinitionsBaseline Actual Emission Rate--

Netting Definitions

Planned Emission Rate--

• Either the Potential to Emit (PTE) or

• A Projected Actual Emission Rate

Netting Definitions

Netting Significance Levels--

• PSD: > the same value used for the major modification significant emission rate

• Serious & Severe Nonattainment Areas: > 5 Tons/year

Is “Netting” Triggered?

If the Baseline Actual Emission Rate of new or modified equipment, compared to the Planned Emission Rate, is > the netting significance level...

• Netting is required

(Evaluate increases only, no decreases in this step)

Netting

From 5 years before start of construction to the proposed start of operation

Contemporaneous Period (netting window)--

If the sum of the projects within the period > the significant emission rate, major NSR is triggered

NettingContemporaneous Period--

Netting• Increases and decreases within the

contemporaneous period are based on a comparison of the following: Baseline Actual Emission Rate and

The PTE of that project (projected actuals are not used in this step)

Netting• What do you do with the netting

results? Compare them to the appropriate

significant emission rate• If the netting value equals or exceeds

the significant emission rate.... Major NSR is required

Netting

Is Baseline Actual Emission Rate and the actual emission rate...

the same thing?

No, no they aren’t!Baseline Actual Emission Rate: Highest consecutive 24-month period out of the last ten years (five years for utilities)Actual Emission Rate: 24-months immediately before the change (used in modeling)

Time to put everything together

Example 1Company is a minor un-named

source, in an attainment area

Current PTE = 70 Tons/year SO2

Proposed PTE = 130 Tons/year SO2

Baseline Actual = 70 Tons/year SO2

Example 1The project increase is:130 Tons/year – 70 Tons/year = 60 Tons/year

The project is at a minor source and is not a major source in and of itself

Major NSR is not triggered but minor NSR permitting requirements do apply

Current PTE = 200 Tons/year NOx

Proposed PTE = 210 Tons/year NOx

Baseline Actual = 190 Tons/year NOx

Example 2Company is a named major source,

in an attainment area

Example 2What is the project increase? 210 Tons/year – 190 Tons/year = 20 Tons/year

The project is at a major source; however, the emissions increase is less than the netting significance level of 40 Tons/year

Is Major NSR triggered?Major NSR is not triggered but minor NSR

permitting requirements do apply

Current PTE = 50 Tons/year NOx

Proposed PTE = 70 Tons/year NOx

Baseline Actual = 40 Tons/year NOx

Example 3Company is a named major source,

in a severe nonattainment area

Example 3What is the project increase? 70 Tons/year – 40 Tons/year = 30

Tons/year

The project is a named major source in a severe nonattainment area, the emission increase exceeds 5 Tons/year

Is netting required?Yes, the project increase exceeds the

netting significance level of 5 Tons/year

Example 3Netting Evaluation

Includes the current project, and all creditable increases and decreases within the contemporaneous period

Example 3Netting Evaluation

30 + 10 + 20 + 5 = 65 Tons/year NOx increase

Current project: 30 Tons/year

11/2009 project: 10 Tons/year increase10/2010 project: 20 Tons/year increase12/2011 project: 5 Tons/year increase

Example 3Additional Review

The major modification significant emission rate for a severe nonattainment area is 25 Tons/year

The project is a “major modification” and major NSR (nonattainment review) is required

Now what ?????The company must apply LAER and provide

offsets at a 1.3:1 ratio

Is a netting analysis potentially required for all

sources?

No, no it’s not

• Only “net” at existing major sources

• There is NO netting at minor sources

Thank You

Air Permits Division(512) 239-1250