PSD/Nonattainment Review

You can do this!

Marc SturdivantAir Permits Division

Texas Commission on Environmental QualityEnvironmental Trade Fair 2015

Getting Oriented

NAAQS

Criteria pollutants:

CO, NOX, SO2, Ozone (NOX/VOC) PM10, PM2.5, and Pb

Primary NAAQS:

Protect public health

Secondary NAAQS:

Protect public welfare

Important Terms

Attainment:

In compliance with NAAQS

Nonattainment:

Out of compliance with NAAQS

LeadNonattainment

Area

DFW Ozone Nonattainment Area– 1997 Serious– 2008 Moderate

Moderate PM10 Nonattainment

Area

Wise

Wise County (DFW) – Ozone Nonattainment Area- 1997 Attainment- 2008 Moderate (Effective 7/20/12)

HGB Ozone Nonattainment Area– 1997 Severe– 2008 Marginal

Current Nonattainment Areas

Minor & Major NSRState (Minor)

NSR------------------------

NSR permit

Standard permit

PBR

De minimisFederal (Major) NSR

-----------------------

• PSD

• Nonattainment

Federal (Major) NSR

------------------------ PSD

Nonattainment

PSD Program

PSD Program Overview

New major sources

Major modifications of existing major sources

Criteria pollutants that are in attainment

Certain non-criteria pollutants

PSD Program Major Source

Definition:

Named Source > 100 tpy (includes fugitives)

Un-named Source > 250 tpy

PSD ProgramMajor Modification

Significant Emission Rates for Criteria Pollutants:

CO ≥ 100 tpyNOX ≥ 40 tpy

SO2 ≥ 40 tpy

VOC ≥ 40 tpyPM ≥ 25 tpyPM10 ≥ 15 tpy

PM2.5 ≥ 10 tpy

Pb ≥ 0.6 tpy

PSD ProgramMajor Modification

Significant Emission Rates for Non-Criteria Pollutants:

Fluorides ≥ 3 tpy

Sulfuric acid mist ≥ 7 tpy

Hydrogen sulfide ≥ 10 tpy

Total reduced sulfur ≥ 10 tpy

Plus others........

PSD ProgramReview 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 and condensable

Nonattainment Program

Nonattainment ProgramOverview

Applies only to pollutants for which the area is designated as nonattainment

New major sources

Major modifications of existing major sources

Most commonly encountered area – ozone:

Regulated through NOX and VOC

DFW - SeriousMajor Source ≥ 50

TPYMajor Mod. ≥ 25

TPY

Wise County (DFW) - Moderate

Major Source ≥ 100 TPYMajor Mod. ≥ 40 TPY

Wise

HGB - SevereMajor Source ≥ 25

TPYMajor Mod. ≥ 25

TPY

Current Nonattainment Areas

Current Nonattainment Areas

Nonattainment ProgramOzone 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 ProgramOffset:

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

The amount of offset depends on the nonattainment classification

DFW - SeriousMajor Source ≥ 50 TPYMajor Mod. ≥ 25 TPYOffset Ratio = 1.2 to 1

Wise

Wise County (DFW) - Moderate

Major Source ≥ 100 TPYMajor Mod. ≥ 40 TPYOffset Ratio = 1.15 to 1

HGB - SevereMajor Source ≥ 25 TPYMajor Mod. ≥ 25 TPYOffset Ratio = 1.3 to 1

Current Nonattainment Areas

Current Nonattainment Areas

PSD & Nonattainment Review

Is 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.

New/Modified Equipment-Where is it located?

In an attainment or nonattainment area?

At an existing major source?

New/Modified Equipment-Where is it located? At a grassroots or an existing minor

source?

If so, the potential project increase must be major by itself to trigger major NSR.

Example 1

Example 1Info.

Company A is a minor source in a severe nonattainment area. Current PTE = 20 tpy NOX

Proposed PTE = 40 tpy NOX

Major Source = 25 tpy NOX

Current PTE = 20 tpy NOx

Proposed PTE = 40 tpy NOx

Major Source = 25 tpy NOx

Example 1Potential Increase

Current PTE = 20 tpy Proposed PTE = 40 tpy Major Source = 25 tpy

40 tpy – 20 tpy = 20 tpy

The project is not a major source by itself or equal to 25 tpy for a severe nonattainment area.

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

severe nonattainment area).

(greater than or equal to 25 tpy for

Major Source = 25 tpy

Modified equipment at an existing major source?

To 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 pollutant.

Determine Emissions

Determine EmissionsSteps

Determine 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 Increase

Planned Emission Rate

(project increases only)

Project Emission Increase

Baseline Actuals (affected facilities)

Determine EmissionsPlanned Emission Rate

Either the...

Potential to emit, or

Projected actual emission rate

Determine EmissionsBaseline Actual Emission Rate

Emissions, in tons per year, actually emitted during a consecutive 24-month period out of...

The previous 10 years, or

The previous 5 years for electric utilities

Determine EmissionsBaseline Timeline

            

2015 Jan 1, Application Submittal

                          

                          

                   2005 2010 2011 2012 2013 2014 2015  

                  

 

10-year window for selecting24-month Baseline Actual Emission

Rate<----------------------------------------------------------------

----> 

 

   

                                   

Determine EmissionsProject Emission Increase

+ Planned Emission Rate (project increases only)

- Baseline Actuals (affected facilities)

= Project Emission Increase

Planned Emission Rate

(project increases only)

Project Emission Increase

Baseline Actuals (affected facilities)

Netting

NettingNetting Applicability

Required if the project increase equals or exceeds the netting significance level for the pollutant.

Planned Emission Rate minus Baseline Actual ≥ Netting Significance Level

Planned Emission

Rate(increases only)

>Baseline Actual

Netting Significance

Level

NettingNetting Significance Levels PSD: same as PSD major modification

significance levels

Nonattainment:

Serious & Severe: ≥ 5 tpy

Moderate: ≥ 40 tpy

NettingWhy do we do it?

Applies to existing major sources only

Applicability step to determine if major NSR has been triggered

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

NettingHow to do it

Conducted for each pollutant in which netting is triggered

An evaluation of:

The current project, plus

Increases and decreases within the contemporaneous period (netting window)

NettingContemporaneous Period/ The Netting Window

Five years before start of construction to proposed start of operation

NettingContemporaneous Period Example

            

                      

           

2007 2008 2009 2010 2011 2012 2013 2014

Start of Construction

Start of Operation

NettingModifications IdentifiedWithin the Window May be based on:

The date the modification was authorized, or

The date the change is operated

Must be used consistently

Indicate which method is used

NettingCreditable Emissions

Occur during the contemporaneous period

Cannot have been relied upon in issuing a major NSR permit for the source

Sources/activities authorized by the major NSR permit are not in operation when the current increase is authorized

Rely on Emissions Inventory

NettingCreditable Increases

The 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)

NettingCreditable Decreases

The Baseline Actual Emission Rate exceeds the new level of emissions

Enforceable at and after the time that project modification begins to operate (must be enforceable and real before the unit starts operation)

NettingDetermining Increases and Decreases...

...for each project within the contemporaneous window are based on a comparison of:

Baseline Actual Emission Rate and

The PTE of that project (projected actuals are not used in this step except for the current project)

NettingBaseline Actual Emission Rate

Emissions, 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 operated

NettingUsing an Allowable to Allowable Comparison

Situation #1: the Baseline Actual > Current PTE

Situation #2: a new facility is within two years of its initial start-up date

NettingNetting Window Example

            

                      

           

2007 2008 2009 2010 2011 2012 2013 2014

10 Years

2009 ProjectBaseline Actual

Emissions

NettingNet Emissions Increase

Project increase

+ Non-project source-wide creditable contemporaneous emission increases

- Source-wide creditable contemporaneous emission decreases (including the current project)=

The amount that exceeds zero

Project increase

Emission increase

s

Emission decrease

s

Amount that

exceeds zero

Source-wide creditable contemporaneous

(including the current project)

Non-project source-wide creditable

contemporaneous

NettingTriggering Major NSR

Compare the net increases to the appropriate significant emission rate

If the increase is greater than or equal to the significant emission rate for the pollutant, major NSR is required

More Examples

Example 2Info.

Company B is a major source in a severe nonattainment area.

Current PTE = 50 tpy NOX

Proposed PTE = 52 tpy NOX

Baseline Actual = 48 tpy NOX

Project Increase = 4 tpy NOX

Current PTE = 50 tpy NOx

Proposed PTE = 52 tpy NOx

Baseline Actual= 48 tpy NOx

Project Increase = 4 tpy NOx

Example 2Netting Required?Major Source; Severe Nonattainment Area; Current PTE = 50

tpy;

Proposed PTE = 52 tpy; Baseline Actual = 48 tpy; Project Increase

= 4 tpyThe project increase of 4 tpy does not exceed the netting significance level of 5 tpy for a severe nonattainment area.

Netting is not required.

Example 3Info.

Company C is a major source in a serious nonattainment area.Current PTE = 50 tpy NOX

Proposed PTE = 60 tpy NOX

Baseline Actual = 47 tpy NOX

Project Increase = 13 tpy NOX

(Proposed PTE minus Baseline Actual)

Current PTE = 50 tpy NOx

Proposed PTE = 60 tpy NOx

Baseline Actual= 47 tpy NOx

Project Increase = 13 tpy NOx

(Proposed PTE - Baseline Actual)

Example 3Netting Required?

Major Source; Serious Nonattainment Area; Current PTE = 50

tpy;

Proposed PTE = 60 tpy; Baseline Actual = 47 tpy; Project Increase

= 13 tpyEmissions increase exceeds the netting significance level of 5 tpy.

Netting is required!

Example 3Table 3F

NOx

Example 3Finding Total Increase

Current Project 13 tons/year increase plus

11/2010 Project 5 tons/year plus

10/2011 Project 0.25 tons/year minus

4.25 tons/year

Total Increase: 14 tons/year

13 tons/yr increas

e

5tons/yr

(increase)

0.25 tons/yr

(increase)

4.25 tons/yr

(decrease)

14 tons/yr

Current Project

11/2010Project

10/2011Project

Total Increas

e

Example 3Nonattainment Review? The major modification significant emission rate

for a serious nonattainment area is 25 tpy.

Total increase (from previous slide) is 14 tpy.

Since 14 tpy is less than the major modification significant emission rate of 25 tpy, the project is not a “major modification” and

major NSR (nonattainment review) is not required.

Example 4Info.

Company D is a major source in an attainment area.

Current PTE = 200 tpy NOX

Proposed PTE = 210 tpy NOX

Baseline Actual = 190 tpy NOX

Project Increase = 20 tpy NOX

Current PTE = 200 tpy NOx

Proposed PTE = 210 tpy NOx

Baseline Actual= 190 tpy NOx

Project Increase = 20 tpy NOx

Example 4PSD Required?Major Source; Attainment Area; Current PTE = 200 tpy;

Proposed PTE = 210 tpy; Baseline Actual = 190 tpy; Project Inc. =

20 tpyThe project increase of 20 tpy does not exceed the major modification significance level of 40 tpy for NOX.

Netting is not triggered.

PSD review is not required.

Check Your Calculations!

Contact Info.

Air Permits Division(512) 239-1250