1. PSD/Nonattainment Review You can do this! Marc Sturdivant Air Permits Division Texas Commission on Environmental Quality Environmental Trade Fair 2015

2. Getting Oriented

3. NAAQS  Criteria pollutants:  CO, NO X, SO 2, Ozone (NO X /VOC)  PM 10, PM 2.5, and Pb  Primary NAAQS:  Protect public health  Secondary NAAQS:  Protect public welfare

4. Important Terms  Attainment:  In compliance with NAAQS  Nonattainment:  Out of compliance with NAAQS

5. Lead Nonattainment Area DFW Ozone Nonattainment Area – 1997 Serious – 2008 Moderate Moderate PM 10 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

6. Minor & Major NSR State (Minor) NSR ------------------------  NSR permit  Standard permit  PBR  De minimis Federal (Major) NSR ----------------------- PSD Nonattainment Federal (Major) NSR ------------------------  PSD  Nonattainment

7. PSD Program

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

9. PSD Program Major Source Definition:  Named Source > 100 tpy (includes fugitives)  Un-named Source > 250 tpy

10. PSD Program Major Modification Significant Emission Rates for Criteria Pollutants: CO≥100tpy NO X ≥40tpy SO 2 ≥40tpy VOC≥40tpy PM≥25tpy PM 10 ≥15tpy PM 2.5 ≥10tpy Pb≥0.6tpy

11. 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........

12. PSD Program 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  PM 10, PM 2.5 include filterable and condensable

13. Nonattainment Program

14. Nonattainment Program Overview  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 NO X and VOC

15. 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 Major Mod. ≥ 25 TPY Current Nonattainment Areas

16. Nonattainment Program Ozone Review Requires:  Must be a major source or major modification for either NO X or VOC  NO X and VOC are evaluated independently  Application of LAER  Application of offsets

17. 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

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

19. PSD & Nonattainment Review  Is it possible to trigger both PSD and nonattainment for the same pollutant?  Yes, it is. NO X is an ozone precursor and has a NAAQS of its own.

20. New/Modified Equipment -Where is it located?  In an attainment or nonattainment area?  At an existing major source?

21. 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.

22. Example 1

23. Example 1 Info. Company A is a minor source in a severe nonattainment area. Current PTE = 20 tpy NO X Proposed PTE = 40 tpy NO X Major Source = 25 tpy NO X Current PTE=20 tpy NO x Proposed PTE=40 tpy NO x Major Source =25 tpy NO x

24. Example 1 Potential 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

25. 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.

26. Determine Emissions

27. Determine Emissions Steps  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.

28. Determine Emissions Project 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)

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

30. 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

31. Determine Emissions Baseline Timeline 2015 Jan 1, Application Submittal 2005201020112012201320142015 10-year window for selecting 24-month Baseline Actual Emission Rate

32. Determine Emissions Project 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)

33. Netting

34. Netting Netting 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

35. Netting Netting Significance Levels  PSD: same as PSD major modification significance levels  Nonattainment:  Serious & Severe: ≥ 5 tpy  Moderate: ≥ 40 tpy

36. Netting Why 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

37. Netting How 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)

38. Netting Contemporaneous Period/ The Netting Window Five years before start of construction to proposed start of operation

39. Netting Contemporaneous Period Example 20072008200920102011201220132014 Start of Construction Start of Operation

40. Netting Modifications Identified Within 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

41. Netting Creditable 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

42. Netting 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)

43. Netting 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)

44. Netting Determining 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)

45. Netting 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

46. Netting 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

47. Netting Netting Window Example 20072008200920102011201220132014 10 Years 2009 Project Baseline Actual Emissions

48. Netting 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 Project increase Emission increases Emission decreases Amount that exceeds zero Source-wide creditable contemporaneous (including the current project) Non-project source- wide creditable contemporaneous

49. Netting 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

50. More Examples

51. Example 2 Info. Company B is a major source in a severe nonattainment area. Current PTE = 50 tpy NO X Proposed PTE = 52 tpy NO X Baseline Actual = 48 tpy NO X Project Increase = 4 tpy NO X Current PTE=50 tpy NO x Proposed PTE=52 tpy NO x Baseline Actual=48 tpy NO x Project Increase = 4 tpy NO x

52. Example 2 Netting Required? Major Source; Severe 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 severe nonattainment area. Netting is not required.

53. Example 3 Info. Company C is a major source in a serious nonattainment area. Current PTE = 50 tpy NO X Proposed PTE = 60 tpy NO X Baseline Actual = 47 tpy NO X Project Increase = 13 tpy NO X (Proposed PTE minus Baseline Actual) Current PTE=50 tpy NO x Proposed PTE=60 tpy NO x Baseline Actual=47 tpy NO x Project Increase =13 tpy NO x (Proposed PTE - Baseline Actual)

54. Example 3 Netting Required? 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!

55. Example 3 Table 3F NO x

56. Example 3 Finding 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 increase 5 tons/yr (increase) 0.25 tons/yr (increase) 4.25 tons/yr (decrease) 14 tons/yr Current Project 11/2010 Project 10/2011 Project Total Increase

57. Example 3 Nonattainment 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.

58. Example 4 Info. Company D is a major source in an attainment area. Current PTE = 200 tpy NO X Proposed PTE = 210 tpy NO X Baseline Actual = 190 tpy NO X Project Increase = 20 tpy NO X Current PTE=200 tpy NO x Proposed PTE=210 tpy NO x Baseline Actual=190 tpy NO x Project Increase = 20 tpy NO x

59. Example 4 PSD Required? Major Source;Attainment Area; Current PTE = 200 tpy; Proposed PTE = 210 tpy; Baseline Actual = 190 tpy; Project Inc. = 20 tpy The project increase of 20 tpy does not exceed the major modification significance level of 40 tpy for NO X. Netting is not triggered. PSD review is not required.

60. Check Your Calculations!

61. Contact Info. Air Permits Division (512) 239-1250