Prevention of Significant Deterioration/Nonattainment ReviewThe BasicsRichard (Rick) Goertz, P.E.Air Permits DivisionTexas Commission on Environmental QualityEnvironmental Trade Fair 2014

NAAQSCriteria pollutantsCO, NOX, SO2, Ozone (NOX/VOC)PM10, PM2.5, and PbPrimary NAAQSprotect public healthSecondary NAAQSprotect public welfareImportant TermsAttainmentIn compliance with NAAQSNonattainmentOut of compliance with NAAQSCurrent Nonattainment Areas

WiseHGB Ozone Nonattainment Area 1997 Severe 2008 MarginalDFW Ozone Nonattainment Area 1997 Serious 2008 ModerateLeadNonattainment AreaModerate PM10 Nonattainment AreaWise County (DFW) Ozone Nonattainment Area- 1997 Attainment- 2008 Moderate (Effective 7/20/12)Minor and Major NSR

Federal (Major) NSR-------------------PSDNonattainment

State (Minor) NSR------------------------NSR permitStandard permitPBRDe minimisFederal (Major) NSR-----------------------PSDNonattainmentPSD ProgramNew major sources Major modifications of existing major sourcesCriteria pollutants that are in attainmentCertain non-criteria pollutantsPSD ProgramMajor source definition:Named Source > 100 tpy (includes fugitives)Un-named Source > 250 tpyPSD ProgramMajor Modification Significant Emission Rates for Criteria Pollutants:CO100tpyNOX40tpySO240tpyVOC40tpyPM25tpyPM1015tpyPM2.510tpyPb0.6tpyPSD ProgramMajor Modification Significant Emission Rates for Non-Criteria Pollutants:Fluorides3 tpySulfuric acid mist7 tpyHydrogen sulfide10 tpyTotal reduced sulfur10 tpyPlus others........PSD ProgramPSD Review Requires...Major for one regulated pollutant, major for allApplication of BACTAir quality analysis (modeling)If within 100 km of a Class I area, inform FLMPM10, PM2.5 include filterable & condensableNonattainment ProgramApplies only to pollutants for which the area is designated as nonattainmentNew major sourcesMajor modifications of existing major sourcesMost commonly encountered area - ozoneregulated through NOX and VOCNonattainment Area Limits

DFW - SeriousMajor Source 50 TPYMajor Mod. 25 TPYWise County (DFW) - ModerateMajor Source 100 TPYMajor Mod. 40 TPYWiseHGB - SevereMajor Source 25 TPYMajor Mod. 25 TPYNonattainment ProgramNonattainment Review Requires (for ozone)...Must be a major source or major modification for either NOX or VOCNOX and VOC are evaluated independentlyApplication of LAERApplication of offsetsNonattainment ProgramOffset:An actual emission reduction, greater than or equal to the projects potential emission increaseThe amount of offset depends on the nonattainment classificationNonattainment Areas Offset Ratios

DFW - SeriousMajor Source 50 TPYMajor Mod. 25 TPYOffset Ratio = 1.2 to 1Wise County (DFW) - ModerateMajor Source 100 TPYMajor Mod. 40 TPYOffset Ratio = 1.15 to 1HGB - SevereMajor Source 25 TPYMajor Mod. 25 TPYOffset Ratio = 1.3 to 1WisePSD and Nonattainment ReviewIs it possible to trigger both PSD and nonattainment for the same pollutant?Yes, it is. NOX is an ozone precursor and has a NAAQS of its own.Location of New or Modified EquipmentWhere is the equipment located?In an attainment or nonattainment area?At a grassroots or an existing minor source?At an existing major source?Location of New or Modified EquipmentTo trigger major NSR at a grassroots or existing minor source, the potential project increase must be major in and of itself.Example 1Company B is a minor un-named source in a severe nonattainment area.Current PTE = 20 tpy NOXProposed PTE = 40 tpy NOXBaseline Actual = 25 tpy NOXCurrent PTE=20 tpy NOxProposed PTE=40 tpy NOxMajor Source =25 tpy NOxExample 1Current PTE = 20 tpy Proposed PTE = 40 tpy Major Source = 25 tpyThe project potential increase is:40 tpy 20 tpy = 20 tpyThe project is not a major source in and of itself {greater than or equal to 25 tpy for a severe nonattainment area}.Major NSR is not triggered, but minor NSR permitting requirements do apply.Location of New or Modified EquipmentTo trigger major NSR at an existing major source, the net project emission increase must be greater than or equal to the major modification significant emission rate for the pollutantDetermine EmissionsDetermine the project increase for each pollutant.Compare project increase to netting significance levels. If the increase is greater than the netting significance levels, netting is required.If net project increase exceeds significance levels, major NSR is triggered.Determine EmissionsProject Emission Increase+ Planned Emission Rate (project increases only)Baseline Actuals (affected facilities) = Project Emission IncreaseDetermine EmissionsPlanned Emission RateEither the...Potential to emit, orProjected actual emission rateDetermine EmissionsBaseline Actual Emission RateEmissions, in tons per year, actually emitted during a consecutive 24-month period out of...The previous 10 years, orThe previous 5 years for electric utilitiesDetermine Emissions 2014 Jan 1, Application Submittal200420092010201120122013201410-year window for selecting24-month Baseline Actual Emission Rate

Determine EmissionsNettingNetting is required if the project increase equals or exceeds the netting significance level for the pollutant.Planned Emission Rate minus Baseline Actual Netting Significance Level

Determine EmissionsNetting Significance LevelsPSD: same as PSD major modification significance levelsNonattainment:Serious & Severe: 5 tpyModerate: 40 tpyNETTING!

About NettingApplies to existing major sources onlyApplicability step to determine if major NSR has been triggeredEnsures smaller projects do not add up to be a major modificationAbout NettingConducted for each pollutant in which netting is triggeredAn evaluation of : The current project, plus Increases and decreases within the contemporaneous period (netting window)Contemporaneous PeriodNetting Window

Five years before start of construction to Proposed start of operationNettingContemporaneous PeriodNetting WindowModifications identified within the contemporaneous period may be based on:The date the modification was authorized, orThe date the change is operatedMust be used consistentlyIndicate which method is usedCreditable EmissionsOccurs during the contemporaneous periodCannot have been relied upon in issuing a major NSR permit for the sourceSources/activities authorized by the major NSR permit are not in operation when the current increase is authorizedRely on Emissions InventoryCreditable IncreasesThe new level of emissions exceeds the Baseline Actual Emission Rate(PTE Baseline = Increase)Does not include emission increases at facilities under a plant-wide applicability limit (PAL)Creditable DecreasesThe Baseline Actual Emission Rate exceeds the new level of emissionsEnforceable at and after the time that project modification begins to operate. (Must be enforceable and real before the unit starts operation)Determining Increases and DecreasesIncreases and decreases for each project within the contemporaneous period are determined 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 except for the current project)Baseline Actual Emission RateEmissions, in tons/year, actually emitted during a consecutive 24-month period out of the previous 10 years (previous 5 years for electric utilities) from the date the project is authorized or modifications are operatedUsing an Allowable to Allowable ComparisonSituation #1: the Baseline Actual > current PTESituation #2: a new facility is within two years of its initial start up dateNetting Window ExampleNet Emissions IncreaseProject increase+Non-project source-wide creditable contemporaneous emission increasesSource-wide creditable contemporaneous emission decreases (including the current project)The amount that exceeds zeroTriggering Major NSRCompare the net increases to the appropriate significant emission rateIf the increase is greater than or equal to the significant emission rate for the pollutant, major NSR is requiredTime for some examples!

Example 2Company C is a named major source in a severe nonattainment area.Current PTE = 50 tpy NOXProposed PTE = 52 tpy NOXBaseline Actual = 48 tpy NOXProject Increase = 4 tpy NOXCurrent PTE=50 tpy NOxProposed PTE=52 tpy NOxBaseline Actual=48 tpy NOxProject Increase =4 tpy NOxExample 2Major Source, Serious Nonattainment AreaCurrent PTE = 50 tpy Proposed PTE = 52 tpy Baseline Actual = 48 tpyProject Increase = 4 tpyThe project increase of 4 tpy does not exceed the netting significance level of 5 tpy for a serious nonattainment area.Netting is not required.

Example 3Company is a named major source in a serious nonattainment area.Current PTE = 50 tpy NOXProposed PTE = 60 tpy NOXBaseline Actual = 47 tpy NOXProject Increase = 13 tpy NOX(Proposed PTE-Baseline Actual)Current PTE= 50 tpy NOxProposed PTE= 60 tpy NOxBaseline Actual= 47 tpy NOxProject increase= 13 tpy NOx(Proposed PTE-Baseline Actual)Example 3Major Source, Serious Nonattainment AreaCurrent PTE = 50 tpy Proposed PTE = 60 tpy Baseline Actual = 47 tpyProject Increase = 13 tpyEmissions increase exceeds the netting significance level of 5 tpy.Netting is required!

Example 3Table 3F

NOxExample 3Finding Total IncreaseCurrent Project 13 tons/year increase11/2010 Project 5 tons/year increase10/2011 Project 0.25 tons/year increase- 4.25 tons/year decreaseTotal Increase: 14 tons/yearCurrent Project13 tons/year increase11/2010 Project 5 tons/year increase10/2011 Project 0.25 tons/year increase 4.25 tons/year decreaseTotal Increase: 14 tons/yearExample 3Nonattainment?The major modification significant emission rate for a severe nonattainment area is 25 tpy. Net project increase is 14 tpy.The project is not a major modification and major NSR (nonattainment review) is not required.

Check Your Calculations!

ContactsJOHNNY VERMILLION(512) 239-1292Or Rick Goertz(512) 239-5606Other3265.3103Other1776.3258Other1776.3258