1. Greenhouse Gas Permitting Sean O’Brien Air Permits Division Texas Commission on Environmental Quality Advanced Air Permitting Seminar 2015

2. General Topics Administrative Expectations Technical Expectations Implementation & Integration Contact Information & Questions

3. Administrative Expectations Greenhouse Gas Permitting Technical Expectations Implementation & Integration Contact Information & Questions Administrative Expectations The Do’s and Don’ts

4. Greenhouse Gas Permitting Administrative Expectations The Do’s -  Submit non-GHG and GHG applications at the same time: Separate – two PI-1s; or Consolidated – one PI-1  Resubmit if change method

5. Greenhouse Gas Permitting Administrative Expectations The Don’ts -  Don’t submit a minor amendment for: A stand-alone GHG permit; or The GHG portion of consolidated permit  No minor revisions of GHG permits  Don’t send fee for GHG permit actions

6. Greenhouse Gas Permitting Implementation & Integration Contact Information & Questions Technical Expectations How to Make Your Life Easier

7. Greenhouse Gas Permitting Technical Expectations Consider GHGs as a Pollutant -  One of several permitted pollutants  Same importance as NO x, VOC, etc.  Will be permitted with PSD program

8. Greenhouse Gas Permitting Technical Expectations Two Ways to Handle GHGs - 1.Separate Application 2.Consolidated Application

9. Greenhouse Gas Permitting Technical Expectations Separate GHG Application -  Two complete applications required: Don’t cross-reference other application No impacts review or discussion needed  Update both applications in the same e-mail or physical mail

10. Greenhouse Gas Permitting Technical Expectations Consolidated GHG Application -  No change in most of application: Add GHG BACT analysis and calculations Use only one BACT process  No impacts review or discussion needed

11. Greenhouse Gas Permitting Technical Expectations BACT and GHG -  Concept questions  Example  Example questions

12. Greenhouse Gas Permitting Technical Expectations BACT and GHG -  Is the process different for GHG? For example, the use of Carbon Capture and Sequestration (CCS)  What is the BACT determination? A numerical emission limitation, or if infeasible..... A work practice

13. Greenhouse Gas Permitting Technical Expectations BACT Example (Non-GHG) -  Combined cycle (CC) power plant  Fires natural gas  What is BACT for NO X ?

14. Greenhouse Gas Permitting Technical Expectations BACT Example (Non-GHG) - How should the application address BACT?  Numerical limit – 2 ppm NO X  Based on control device or technique – SCR  No prescribed design or operation of the unit (unless a work practice is BACT)

15. Greenhouse Gas Permitting Technical Expectations BACT Example - Do not propose design and work practices with a numerical BACT.  SCR with four catalyst beds using a zeolite catalyst  One bed will be replaced every year  Ammonia grid design

16. Greenhouse Gas Permitting Technical Expectations BACT Example (GHG) -  CC power plant  Fires natural gas  What is BACT for CO 2e ?

17. Greenhouse Gas Permitting Technical Expectations BACT Example (GHG) -  What controls are technically feasible/ economically reasonable?  Can a meaningful numerical limit be set for the turbine?

18. Greenhouse Gas Permitting Technical Expectations BACT Example (GHG) -  CCS is not cost effective and may be technically infeasible for full control of the stack  Efficiency requirements are possible and a numerical limit can be set

19. Greenhouse Gas Permitting Technical Expectations BACT Example (GHG) -  Example of BACT for CC power plant: Turbine ModelGross Heat Rate (Btu/kWh) Output Specific CO 2 Emission Rate (lb CO 2 /MWh) Mitsubishi Heavy Industries (MHI) J 7,882937  Both fuel usage and electrical generation can be measured

20. Greenhouse Gas Permitting Technical Expectations BACT Example (GHG) - Other facilities may express efficiency in different forms.  Exhaust stack temperature  Fuel usage per unit of product

21. Greenhouse Gas Permitting Technical Expectations BACT Example Summary - Numerical limits speak for themselves.

22. Implementation and Integration Greenhouse Gas Permitting Contact Information & Questions Issuance Updates GHGs Non-GHGs Implementation & Integration Issuance Updates GHGs Non- GHGs

23. Greenhouse Gas Permitting Implementation & Integration Issuance of Permits – Order Major NSR permitting actions for non-GHG and GHG may be issued out of sync.  Case-by-case basis

24. Greenhouse Gas Permitting Implementation & Integration Issuance of Permits – Timeframe Start of Construction deadline based on last permit issued.  Void process still exists  Issuance timeframes are important

25. Greenhouse Gas Permitting Implementation & Integration Updates to Non-GHG Permits - Non-GHG permit must always be accurate.  Amend or alter as needed  No change from past NSR permitting

26. Greenhouse Gas Permitting Implementation & Integration Updates to GHG Permits - GHG permit cannot use minor NSR mechanisms.  Updates will be allowed  Guidance is being developed  Must be part of a non-GHG action that is approved with or before the update

27. Greenhouse Gas Permitting Implementation & Integration Updates to EPA-Issued GHG Permits -  EPA will rescind if needed (contact EPA)  Updates/major mods through TCEQ  EPA-issued permits receive TCEQ permit numbers

28. Greenhouse Gas Permitting Implementation & Integration Current Issues -  When BACT is not a number: Numerical limit vs. work practice Work practices can be subjective  Fugitive monitoring for methane  Consistency with non-GHG permit  Updates and existing BACT

29. Greenhouse Gas Permitting Implementation & Integration Moving Forward -  Streamlining and standardizing permit conditions  Documenting more Tier 1 BACT determinations  Working with EPA on TCEQ issued draft permits

30. Contact Information and Questions Greenhouse Gas Permitting Contact Information & Questions

31. Greenhouse Gas Permitting Contact Information & Questions Contacts - Technical Contact: Sean O’Brien (512) 239-1137 Sean.Obrien@tceq.texas.gov Implementation Contact: Tasha Burns (512) 239-5868 Tasha.Burns@tceq.texas.gov

32. Greenhouse Gas Permitting Contact Information & Questions Questions?