We ll Discuss What are SSM Provisions? Regulatory Changes What can we do to protect ourselves?

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2 We ll Discuss What are SSM Provisions? Regulatory Changes SSM SIP Call SSM Guidance to States Title V Affirmative Defense What can we do to protect ourselves?

3 A Few Definitions SSM: Startup, Shutdown, Malfunction (of an emission unit) SIP: State Implementation Plan (air regulations) issued by state/local agency, requiring EPA approval SIP Call: A call by EPA for state agencies to revise and resubmit their SIP for approval

4 What Are SSM Provisions?

5 SSM Provisions (Affirmative Defense) Allow emissions in excess of permit limits during unit startups, shutdowns and malfunctions (SSM) with certain limitations Examples: CCDAQ AQR 25 Affirmative Defense for Excess Emissions Due to Malfunctions, Startup, and Shutdown NAC 445B.326 Operating Permits: Assertion of Emergency as Affirmative Defense to Action for Noncompliance Many were approved in State Implementation Plan submittals to EPA many years (even decades) ago Also found in Title V regulations

6 Regulatory Changes

7 Lawsuits and Petition More than a dozen lawsuits over the past few decades June 20, 2011: Sierra Club filed petition requesting that EPA: Revoke its prior approval of targeted state SSM rules; Issue a SIP Call requiring states to revise their rules and significantly limit the scope of the SSM provisions, and/or; Issue a Federal Implementation Plan (FIP) February 22, 2013: EPA proposed new SSM rule September 5, 2014: EPA issued supplemental proposal June 12, 2015: EPA issued final rule

8 SSM SIP Call Rule Recalls previously approved state air rules governing emissions associated with SSM events at regulated facilities in 36 states November 22, 2016: Deadline for affected states to revise their SIPs and submit to EPA for review and approval EPA also revised its policy of SSM provisions in general, providing guidance to the states

9 SSM SIP Call Rule (cont d) Requires states to revise SIPs such that all excess emissions from SSM events would be deemed violations of the Clean Air Act Included as violations are excess emissions that are unavoidable despite best operating practices and good air pollution control practices

10 SSM SIP Call Rule (cont d) EPA claims the following provisions are now illegal under the CAA Those allowing automatic exemptions Those allowing conditional exemptions Those allowing affirmative defenses Those allowing state enforcement discretion (in some cases)

11 SSM SIP Call Rule (cont d) EPA s criteria for state SIPs Alternate limits must apply only to specific, narrowly defined source categories Alternate limits are appropriate only when use of a control technology for that category is infeasible Frequency and duration of SSM must be minimized State must analyze the worst-case emission scenario The facility must take all possible steps to minimize the impact The facility must use good air pollution control practices The facility must document SSM events/emissions and compliance using proper logs

12 EPA s New SSM Policy Excerpts Emission limitation means a legally binding restriction on emissions from a source or source category, such as a numerical emission limitation, a numerical emission limitation with higher or lower levels applicable during specific modes of source operation, a specific technological control measure requirement, a work practice standard, or a combination of these things An emission limitation must be applicable to the source continuously CAA allows SIP provisions that include numerical limitations, specific technological control requirements and/or work practice requirements that limit emissions during startup and shutdown as components of a continuously applicable emission limitation

13 EPA s New SSM Policy Excerpts (cont d) Alternative emission limitation means an emission limitation that applies to a source during some but not all periods of normal operation (e.g., applies only during a specifically defined mode of operation such as startup or shutdown). An alternative emission limitation is a component of a continuously applicable SIP emission limitation, and it may take the form of a control measure such as a design, equipment, work practice or operational standard (whether or not numerical).

14 EPA s New SSM Policy Excerpts (cont d) Numerical vs Non-Numerical Limits: In cases in which measurement of emissions during startup and/or shutdown is not reasonably feasible, it may be appropriate for an emission limitation to include as a component a control for startup and/or shutdown periods other than a numerically expressed emission limitation." In practice, it may be that numerical emission limitations are the most appropriate from a regulatory perspective (e.g., to be legally and practically enforceable) and thus the emission limitation would need to be established in this form to meet CAA requirements. If a non-numerical requirement does not itself (or in combination with other components of the emission limitation) limit the quantity, rate or concentration of air pollutants on a continuous basis, then the nonnumerical standard (or overarching requirement) does not meet the statutory definition of an emission limitation

15 Final SSM SIP Call (cont d) Final rule, list of EPA s final actions for all affected states, fact sheet, etc: missions.html

16 Title V Affirmative Defense June 14, 2016: EPA proposed to remove the affirmative defense from Title V Proposed Rule: 14/html/ htm Quote from Proposed Rule (Some EPA Humor): The absence of an affirmative defense provision in a source's title V permit does not mean that all exceedances of emission limitations in a title V permit will automatically be subject to enforcement... all parties with authority to bring an enforcement action to enforce title V permit provisions (i.e., the state, the EPA, or any parties who qualify under the citizen suit provision ) have enforcement discretion that they may exercise as they deem appropriate...

17 Title V Emergency Provision - 40 CFR 70.6(g) (1) Definition. An emergency means any situation arising from sudden and reasonably unforeseeable events beyond the control of the source and that causes the source to exceed a technology-based emission limitation under the permit (2) Effect of an emergency. An emergency constitutes an affirmative defense to an action brought for noncompliance with such technology-based emission limitations if the conditions of paragraph (g)(3) of this section are met. (3) The affirmative defense of emergency shall be demonstrated through properly signed, contemporaneous operating logs, or other relevant evidence that: (i) An emergency occurred and that the permittee can identify the cause(s) (ii) The permitted facility was at the time being properly operated (iii) During the period of the emergency the permittee took all reasonable steps to minimize levels of emissions that exceeded the emission standards and (iv) The permittee submitted notice of the emergency to the permitting authority within 2 working days of the time when emission limitations were exceeded due to the emergency

18 What Can We Do To Protect Ourselves?

19 Response to SSM SIP Call Suggest talking to your regulators What is EPA telling them? How are they planning to address this? Will their rules change? When? Will your permits require revision? When? How? You may want to consider how you would prefer to modify your air permit

20 NV Energy s Approach If there will be no affirmative defense, how can we protect ourselves from all scenarios? Answer: permit the scenarios to the extent possible Permitting malfunctions can actually reduce emissions by avoiding higher shutdown and restart emissions NVE assembled a team of environmental and generation personnel to study and determine our SSM approach

21 NV Energy s Approach (cont d) Met with local agency Proposed: Permitting alternate emission limitations for SSM Having only non-numerical emission limitations for PM 10 /PM 2.5 and VOC during SSM Agency suggested: Create a malfunction plan outside permit Evaluate non-cems SSM impact on emission inventory Determined to: Develop alternate emission limitations for: Startup/Shutdown Malfunction Testing/Tuning Standardize to the extent possible

22 Researched How was each unit permitted? Original permit application First permit s technical support document Were startup/shutdown emissions considered originally? Were startup/shutdown emissions included in original PTE? Do OEMs have emission estimates for non-cems parameters? What are historical CEMS emissions?

23 Evaluated Is it better to limit emissions per event or per hour? Should we have varying numerical limits for different events? What should the value of the numerical limits be? What pollutants can t demonstrate compliance with a numerical limit during SSM? What non-numerical limitations can we apply? How do we calculate non-cems SSM emissions for annual reporting? Do we need notification requirements for malfunctions and testing/tuning? How much is enough?

24 Potential SSM Emission Limitations Potential Limitation Pollutant Impacted NO x CO SO 2 PM 10/2.5 VOC The Permittee shall, under all conditions, operate the source in a manner consistent with good air pollution control practice for minimizing emissions as required by 40 CFR X X X X X Proper maintenance of inlet air filters per manufacturer's recommendations X Fuel type use limitation (Pipeline Natural Gas) X X X X X Limitation on duration of SSM events X X X X X Limitation on malfunction events per year X X X X X Limitation on testing/tuning minutes per year X X X X X Numerical emission limitation during SSM operation X X X Annual emission limitation X X X X X Hourly heat input limitation X X X X X

25 This Will Change Our Operations We are working with Generation personnel to evaluate operations in various scenarios Generation personnel are working towards standardizing operators responses, especially during startup and shutdown Operator training will be required, especially for malfunction response

26 The Goal NVE will submit permit applications to add SSM emission limitations Generation will develop streamlined guidance for operators

27 Discussion/Questions