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

2. NAAQS Criteria pollutants Primary NAAQS Secondary NAAQS
CO, NOX, SO2, Ozone (NOX/VOC)
PM10, PM2.5, and Pb
Primary NAAQS
protect public health
Secondary NAAQS
protect public welfare
CO = carbon monoxide
NOX = oxides of nitrogen
SO2 = sulfur dioxide
VOC = volatile organic compound
PM10 = particulate matter less than or equal to 10 microns in diameter
PM2.5 = particulate matter less than or equal to 2.5 microns in diameter
Pb = lead
NAAQS = National Ambient Air Quality Standards

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

4. Current Nonattainment Areas
Wise
HGB
Ozone Nonattainment Area
– 1997 Severe
– 2008 Marginal
DFW Ozone Nonattainment Area
– 1997 Serious
– 2008 Moderate
Lead
Nonattainment Area
Moderate PM10 Nonattainment Area
Wise County (DFW) – Ozone Nonattainment Area
Attainment
Moderate
(Effective 7/20/12)
As of July 20, 2012, Texas has:
18 ozone nonattainment counties
Two ozone nonattainment areas: Houston/Galveston/Brazoria (HGB) and Dallas/Fort Worth (DFW). The DFW area has Wise County with a different nonattainment classification
A portion of El Paso County designated as nonattainment for PM10
A portion of Collin County designated as nonattainment for lead
The regulated ozone precursors are NOX and VOCs.

5. ------------------------
Minor and Major NSR
State (Minor) NSR
NSR permit
Standard permit
PBR
De minimis
Federal (Major) NSR
PSD
Nonattainment
Federal (Major) NSR
PSD
Nonattainment
NSR = New Source Review
PBR = permit by rule
PSD = Prevention of Significant Deterioration

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 > tpy
Named Source – Emissions greater than or equal to 100 tons/year (includes fugitive emissions)
Un-named Source – Emissions greater than or equal to 250 tons/year

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
Major modification – criteria pollutant emissions greater than or equal to:
Carbon monoxide (CO) tons/year
Nitrogen oxides (NOX) tons/year
Sulfur dioxide (SO2) tons/year
Volatile organic compounds (VOCs) tons/year
Particulate matter (PM) tons/year
PM less than or equal to 10 microns in diameter (PM10) 15 tons/year
PM less than or equal to 2.5 microns in diameter (PM2.5) 10 tons/year
Lead (Pb) tons/year

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
Major modification – non-criteria pollutant emissions greater than or equal to:
Fluorides 3 tons/year
Sulfuric Acid Mist 7 tons/year
Hydrogen Sulfide 10 tons/year
Total Reduced Sulfur 10 tons/year
Plus others

10. 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
BACT = best available control technology
km = kilometers
FLM = Federal Land Manager

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. ≥ 40 TPY
Wise
HGB - Severe
Major Source ≥ 25 TPY
Nonattainment Area Limits
As of July 20, 2012, the major source and major modification significant emission rates are:
DFW: Major source if emissions are greater than or equal to 50 tons/year. Major modification if emissions are greater than or equal to 25 tons/year.
Wise County (DFW): Major source if emissions are greater than or equal to 100 tons/year. Major modification if emissions are greater than or equal to 40 tons/year.
HGB: Major source if emissions are greater than or equal to 25 tons/year. Major modification if emissions are greater than or equal to 25 tons/year.

13. Nonattainment Program Nonattainment 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
LAER – lowest achievable emission rate

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. ≥ 40 TPY
Offset Ratio = to 1
HGB - Severe
Major Source ≥ 25 TPY
Offset Ratio = 1.3 to 1
Wise
Nonattainment Areas Offset Ratios
As of July 20, 2012, the major source and major modification significant emission rates are:
DFW: Major source if emissions are greater than or equal to 50 tons/year. Major modification if emissions are greater than or equal to 25 tons/year.
Wise County (DFW): Major source if emissions are greater than or equal to 100 tons/year. Major modification if emissions are greater than or equal to 40 tons/year.
HGB: Major source if emissions are greater than or equal to 25 tons/year. Major modification if emissions are greater than or equal to 25 tons/year.
The offset ratios are:
DFW: 1.2 to 1
Wise County (DFW): to 1
HGB: 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.
If new or modified equipment is located at a grassroots site or at an existing minor source, the potential project increase must be a major source (potential to emit [PTE] increase greater than or equal to 100 or 250 tons/year) 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
PTE = potential to emit

20. Current PTE = 20 tpy Proposed PTE = 40 tpy Major Source = 25 tpy
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.
Current PTE = 20 tpy, Proposed PTE = 40 tpy
Major source definition for NOX in a severe nonattainment area = 25 tpy

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
If new or modified equipment is located at an existing major source, the net emissions increase from the project must be greater than or equal to the applicable major modification significant emission rate.

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.
Netting significance levels can be found on Slide 28.

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

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

25. Determine Emissions Baseline 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
2014 Jan 1, Application Submittal
2004
2009
2010
2011
2012
2013
2014
10-year window for selecting
24-month Baseline Actual Emission Rate
< >

27. Determine Emissions Netting
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
Netting significance levels can be found on Slide 28.

28. Determine Emissions Netting 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 Period Netting Window
Five years before start of construction to Proposed start of operation
Contemporaneous period (netting window):
From five years before start of construction to the proposed start of operation.
If the sum of the projects within the period is greater than or equal to the major modification significant emission rate, major NSR is triggered.

33. Netting Contemporaneous Period
The contemporaneous period runs from five years prior to the start of construction out through the start of operation.

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
An increase or decrease in emissions is “creditable” only if the following conditions are met:
It occurs during the contemporaneous period.
It has not been relied on in issuing a major NSR permit for the source, and the sources/activities authorized by the major NSR permit are not in operation when the current increase is authorized.
Reliance on Emissions Inventory

36. (PTE – Baseline = Increase)
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
Determination of increase or decrease within the contemporaneous period: increase or decrease is a comparison of the Baseline Actual Emission Rate for that project and that project’s potential to emit (PTE).

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
Major Source, Serious Nonattainment Area
Current PTE = 50 tpy Proposed PTE = 52 tpy Baseline Actual = 48 tpy
Project Increase = 4 tpy
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.
Current PTE = 50 tpy, Proposed PTE = 52 tpy, Baseline Actual = 48 tpy
Project Increase = 48 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
Major Source, Serious Nonattainment Area
Current PTE = 50 tpy Proposed PTE = 60 tpy Baseline Actual = 47 tpy
Project Increase = 13 tpy
Emissions increase exceeds the netting significance level of 5 tpy. Netting is required!
Current PTE = 50 tpy, Proposed PTE = 60 tpy, Baseline Actual = 47 tpy
Project Increase = 13 tpy

49. Example 3 Table 3F
NOx

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

51. Example 3 Nonattainment?
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.

52. Check Your Calculations!

53. Contacts JOHNNY VERMILLION (512) 239-1292 Or Rick Goertz
(512)