Prevention of Significant Deterioration/Nonattainment Review The Basics

1. Prevention of Significant Deterioration/Nonattainment ReviewThe Basics Johnny Vermillion, P.E. Air Permits Division Texas Commission on Environmental Quality Environmental Trade Fair 2012

2. Overview • NAAQS • PSD • Nonattainment • Location of Equipment • Netting • Examples

3. EPA Major NSR PSD Nonattainment TCEQ Minor NSR Chapter 106 Chapter 116

4. EPA Control Rules 40 CFR 60 - NSPS 61 - NESHAP - NESHAP (MACT Standards) SIP Chapters 111 112 115 117

5. TCEQ Health Effects Toxicology Review EPA Major NSR NAAQS

6. 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

7. Lead Nonattainment Area Serious Ozone Nonattainment Area Moderate PM10 Nonattainment Area Severe Ozone Nonattainment Area

8. PSD Program • New major sources • Major modifications of existing major sources in attainment areas • Criteria pollutants (pollutants with a NAAQS) • Certain non-criteria pollutants

9. PSD Program Major Source Definitions • Named Source > 100 Tons/year (includes fugitive emissions) • Un-named Source > 250 Tons/year

10. PSD Program Major Modification – Criteria Pollutants CO > 100 Tons/year NOX> 40 Tons/year SO2 > 40 Tons/year VOC > 40 Tons/year Pb> 0.6 Tons/year PM> 25 Tons/year PM10 > 15 Tons/year PM2.5 > 10 Tons/year

11. PSD Program Major Modification – Non-Criteria Pollutants Fluorides > 3 Tons/year Sulfuric Acid Mist > 7 Tons/year Hydrogen Sulfide > 10 Tons/year Total Reduced Sulfur > 10 Tons/year Plus others........

12. PSD Program PSD 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

13. 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

14. Nonattainment Program What are the significant rates for a: Major Source & Major Modification

15. It depends...

16. It depends... ...on the classification of the nonattainment area

17. DFW – Serious Major Source ≥ 50 TPY Major Mod. ≥ 25 TPY HGB – Severe Major Source ≥ 25 TPY Major Mod. ≥ 25 TPY

18. Nonattainment Program Nonattainment 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

19. Nonattainment Program What is an offset

20. Nonattainment Program Offset: • An actual emission reduction, greater than or equal to the project’s emission increase • The amount of offset depends...

21. Nonattainment Program Offset: • An actual emission reduction, greater than or equal to the project’s emission increase • The amount of offset depends... on the nonattainment classification

22. DFW – Serious Major Source ≥ 50 TPY Major Mod. ≥ 25 TPY Offset Ratio = 1.2 to 1 HGB – Severe Major Source ≥ 25 TPY Major Mod. ≥ 25 TPY Offset Ratio = 1.3 to 1

23. Is it possible to..... trigger both PSD and nonattainment, at the same time, for the same pollutant?

24. Yes, yes it is ! For NOX... Why?

25. Yes, yes it is ! For NOX... Why? NOX is an ozone precursor and has a NAAQS of its own

27. 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?

28. Location of New or Modified Equipment To trigger major NSR, project must be a major source in and of itself

29. Location of New or Modified Equipment To trigger major NSR, the net emissions increase must be > major modification significant emission rate

30. Netting How do you know if a modification is a “major modification” triggering major NSR????? You conduct a “netting” exercise

31. 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)

32. 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

33. 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)

34. Netting Definitions BaselineActual Emission Rate--

35. Netting Definitions Planned Emission Rate-- • Either the Potential to Emit (PTE) or • A Projected Actual Emission Rate

36. Netting Definitions Netting Significance Levels-- • PSD: > the same value used for the major modification significant emission rate • Serious & Severe Nonattainment Areas: > 5 Tons/year

37. 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)

38. Netting Contemporaneous Period (netting window)-- From 5 years before start of construction to the proposed start of operation If the sum of the projects within the period > the significant emission rate, major NSR is triggered

39. Netting Contemporaneous Period--

40. 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)

41. 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

42. Netting

43. Is Baseline Actual Emission Rate and the actual emission rate... the same thing?

44. 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)

45. Time to put everything together

46. Example 1 Company 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

47. Example 1 The 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

48. Example 2 Company is a named major source, in an attainment area Current PTE = 200 Tons/year NOx Proposed PTE = 210 Tons/year NOx Baseline Actual = 190 Tons/year NOx

49. Example 2 What 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

50. Example 3 Company is a named major source, in a severe nonattainment area Current PTE = 50 Tons/year NOx Proposed PTE = 70 Tons/year NOx Baseline Actual = 40 Tons/year NOx