Prevention of Significant Deterioration/Nonattainment Review The Basics

1. Prevention of Significant Deterioration/Nonattainment ReviewThe Basics Richard (Rick) Goertz, P.E. Air Permits Division Texas Commission on Environmental Quality Environmental Trade Fair 2014

2. NAAQS • Criteria pollutants • CO, NOX, SO2, Ozone (NOX/VOC) • PM10, PM2.5, and Pb • Primary NAAQS • protect public health • Secondary NAAQS • protect public welfare

3. Important Terms • Attainment • In compliance with NAAQS • Nonattainment • Out of compliance with NAAQS

4. Current Nonattainment Areas Lead Nonattainment Area DFW Ozone Nonattainment Area – 1997 Serious – 2008 Moderate • Wise County (DFW) – Ozone Nonattainment Area - 1997 Attainment • - 2008 Moderate • (Effective 7/20/12) Wise Moderate PM10 Nonattainment Area • HGB • Ozone Nonattainment Area • – 1997 Severe • – 2008 Marginal

5. Minor and Major NSR Federal (Major) NSR ------------------- • PSD • Nonattainment State (Minor) NSR ------------------------ • NSR permit • Standard permit • PBR • De minimis Federal (Major) NSR ----------------------- • PSD • Nonattainment

6. PSD Program • New major sources • Major modifications of existing major sources • Criteria pollutants that are in attainment • Certain non-criteria pollutants

7. PSD Program • Major source definition: • Named Source > 100 tpy (includes fugitives) • Un-named Source > 250 tpy

8. PSD Program Major Modification Significant Emission Rates for Criteria Pollutants: CO≥100 tpy NOX ≥ 40 tpy SO2 ≥ 40 tpy VOC ≥ 40 tpy PM ≥ 25 tpy PM10 ≥ 15 tpy PM2.5 ≥ 10 tpy Pb ≥ 0.6 tpy

9. PSD Program Major 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........

10. 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

11. Nonattainment Program • 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

12. Nonattainment Area Limits DFW - Serious Major Source ≥ 50 TPY Major Mod. ≥ 25 TPY • Wise County (DFW) - Moderate Major Source ≥ 100 TPY Major Mod. ≥ 40TPY Wise • HGB - Severe • Major Source ≥ 25 TPY • Major Mod. ≥ 25 TPY

13. Nonattainment ProgramNonattainment Review Requires (for ozone)... • 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

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

15. Nonattainment Areas Offset Ratios DFW - Serious Major Source ≥ 50 TPY Major Mod. ≥ 25 TPY • Offset Ratio = 1.2 to 1 • Wise County (DFW) - Moderate Major Source ≥ 100 TPY Major Mod. ≥ 40TPY Offset Ratio = 1.15 to 1 Wise • HGB - Severe • Major Source ≥ 25 TPY • Major Mod. ≥ 25 TPY • Offset Ratio = 1.3 to 1

16. PSD and 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.

17. Location of New or Modified Equipment • Where is the equipment located? • In an attainment or nonattainment area? • At a grassroots or an existing minor source? • At an existing major source?

18. Location of New or Modified Equipment • To trigger major NSR at a grassroots or existing minor source, the potential project increase must be major in and of itself.

19. Example 1 Company B is a minor un-named source in a severe nonattainment area. • Current PTE = 20 tpy NOX • Proposed PTE = 40 tpy NOX • Baseline Actual = 25 tpy NOX Current PTE = 20 tpy NOx Proposed PTE = 40 tpy NOx Major Source =25 tpy NOx

20. Example 1 Current PTE = 20 tpy Proposed PTE = 40 tpy Major Source = 25 tpy The project potential increase is: 40 tpy – 20 tpy = 20 tpy The 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.

21. Location of New or Modified Equipment • 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

22. Determine Emissions • 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.

23. Determine EmissionsProject Emission Increase + Planned Emission Rate (project increases only) • Baseline Actuals (affected facilities) = Project Emission Increase

24. Determine EmissionsPlanned Emission Rate • Either the... • Potential to emit, or • Projected actual emission rate

25. 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

26. Determine Emissions

27. Determine EmissionsNetting Netting 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

28. Determine EmissionsNetting Significance Levels • PSD: same as PSD major modification significance levels • Nonattainment: • Serious & Severe: ≥ 5 tpy • Moderate: ≥ 40 tpy

29. NETTING!

30. About Netting • 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

31. About Netting • 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)

32. Contemporaneous PeriodNetting Window Five years before start of construction to Proposed start of operation

33. NettingContemporaneous Period

34. Netting Window • Modifications identified within the contemporaneous period 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

35. Creditable Emissions • Occurs 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

36. Creditable 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)

37. Creditable 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)

38. Determining Increases and Decreases • Increases 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)

39. Baseline 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

40. Using 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

41. Netting Window Example

42. Net 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

43. Triggering 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

44. Time for some examples!

45. Example 2 Company C is a named 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

46. Example 2 The project increase of 4 tpy does not exceed the netting significance level of 5 tpy for a serious nonattainment area. Netting is not required. Major Source, Serious Nonattainment Area Current PTE = 50 tpy Proposed PTE = 52 tpy Baseline Actual = 48 tpy Project Increase = 4 tpy

47. Example 3 Company is a named 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-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)

48. Example 3 Emissions increase exceeds the netting significance level of 5 tpy. Netting is required! Major Source, Serious Nonattainment Area Current PTE = 50 tpy Proposed PTE = 60 tpy Baseline Actual = 47 tpy Project Increase = 13 tpy

49. Example 3Table 3F NOx

50. Example 3Finding Total Increase Current Project 13 tons/year increase 11/2010 Project 5 tons/year increase 10/2011 Project 0.25 tons/year increase - 4.25 tons/year decrease Total Increase: 14 tons/year • Current Project 13 tons/year increase • 11/2010 Project 5 tons/year increase • 10/2011 Project 0.25 tons/year increase • 4.25 tons/year decrease • Total Increase: 14 tons/year