Illinois CHP/BCHP Environmental Permitting Guidebook VOLUME A: ROADMAPPING THE PERMITTING PROCESS

Transcription

1 Illinois CHP/BCHP Environmental Permitting Guidebook VOLUME A: ROADMAPPING THE PERMITTING PROCESS Prepared For: Illinois Department of Commerce and Community Affairs U.S. Department of Energy Chicago Regional Office University of Illinois at Chicago Energy Resources Center January 2003 (Version: 1/23/2003)

2 TABLE OF CONTENTS EXECUTIVE SUMMARY...4 A.1) INTRODUCTION TO VOLUME A...7 A.2) AIR PERMITTING...7 A.2.1) Construction Permitting... 8 A.2.1.1) Construction Permit Exemptions... 8 A.2.1.2) Construction Permit Basics... 9 A Construction Permit Flow Chart A.2.2) Operating Permitting A.2.3) Obtaining Emissions Data for Permitting Purposes A.2.4) CHP Permitting Examples A.2.5) Recent Air Permitting Case - The University of Illinois Campuses A.2.6) Air Permitting Forms A.2.7) Time Requirements for Air Permitting A.2.8) Air Permitting Fees Imposed by IEPA A.2.9) Recommendations for dealing with air permitting agencies A.3) WATER PERMITTING...30 A.4) OTHER REGULATORY REQUIREMENTS...32 A.4.1) Local Codes and Zoning A.4.2) OSHA Requirements A.4.3) Endangered Species, Wetland and Historic Preservation Program Requirements A.4.4) Illinois Department of Public Health Licensing Requirements A.5) STEP BY STEP TOWARDS SUCCESSFUL PERMITTING...37 A.6) EMERGING PERMITTING REGULATION/LEGISLATION

3 APPENDIX A: RELEVANT AIR PERMITTING EXEMPTIONS...41 APPENDIX B1: APC-200 PERMIT FORMS WITH INSTRUCTIONS...44 APPENDIX B2: APC-240 EMISSIONS INFORMATION FORM...51 APPENDIX C: CHP EMISSIONS CALCULATOR

4 Executive Summary The Illinois CHP/BCHP Environmental Permitting Guidebook is divided into two main volumes. Volume A - Roadmapping the Permitting Process details the current permitting process for CHP systems and provides tools in the form of an Emissions Calculator and a Step by Step Questionnaire to efficiently navigate the permitting process. Volume B - Permitting Issues (A Survey and Dialogue) identifies permitting issues as well as potential opportunities to streamline the permitting process based on a survey with 20 current CHP installations and feedback from CHP developers and the Illinois Environmental Protection Agency. Chronologically, the survey with current CHP installations was conducted first and the results from the survey shaped the approach of the roadmapping section of the guidebook. For example, the survey showed that most CHP facilities use natural gas or diesel engines, hence, the roadmapping section of the guidebook encompasses these technologies. Furthermore, nearly half of all facilities knowingly responded that they had to obtain a Clean Air Act Title V permit (called CAAPP in Illinois) and that they had to use an outside consultant for permitting purposes. Therefore a substantial effort was devoted to address air permitting issues in the guidebook. On the other hand, local building code and fire code compliance was not perceived as a major cost or effort component during the permitting process. As a result local building code and fire code compliance is not discussed in detail but helpful contact information is provided. Other key findings of the survey include the observation that time and cost estimates to permit facilities vary widely among the respondents. Wide variations were also observed with respect to the perceived ease/complexity of the permitting process. The purpose of the roadmapping section of this guidebook is to reduce some of the perceived complexities identified in the survey. As discussed above, many CHP projects have to assess air permitting/ registration requirements and how to match operational flexibility of a facility with potential permitting flexibilities. To provide guidance with this effort, a simple Emissions Calculator was developed, which provides an estimation of the expected emissions from a CHP facility for various operating scenarios. The use of the Emissions Calculator and several hypothetical air permitting examples are shown. Besides hypothetical examples, the recent air permitting approach for the University of Illinois cogeneration facilities at Chicago and Urbana-Chamapaign are discussed. Water permits, while not required for many CHP prime movers, are probably required for heat recovery and energy utilization equipment. The various types of water permits relevant for CHP systems are discussed in the guidebook. Air and water permitting, especially for facilities classified as a major emissions source or a facility in need of a NPDES water discharge permit, may constitute the critical elements of the timeline during the development of a CHP project. 1 In some cases the air 1 NPDES is an acronym for National Pollutant Discharge Elimination System 4

5 and water permitting process may take in excess of 6 months, so therefore should be started as soon as possible in the design process. Besides air and water permits, a CHP facility has to comply with local code/zoning and OSHA requirements. Detailed contact information sources to address these requirements are provided in the guidebook. Larger CHP projects could also be confronted with the requirements set by the endangered species, wetlands and historic preservation programs. Again a brief overview and contact information for the appropriate program agencies is provided. Also, certain business sectors will require more specialized permits. For example hospitals are required to obtain an Illinois Department of Public Health license. Since hospitals constitute an important market for CHP systems, contact information for this type of license is provided. Finally a questionnaire was developed to guide potential CHP candidates through the permitting process. This questionnaire, which is based on the above reviews of the various types of permits, helps CHP candidates to identify which permits are needed and where to get them. 5

6 DISCLAIMER This guidebook is intended for guidance only and may be impacted by changes in legislation, rules and regulations. Although this guidebook makes every effort to explain to users how to meet applicable compliance obligations, use of this guidebook does not constitute the rendering of legal advice. This document has been reviewed by outside reviewers. Diligent attention was given to assure that the information presented herein is accurate as of the date of publication; however, there is no guarantee, expressed or implied, that use of this guidebook will satisfy all regulatory requirements mandated by laws and their respective enforcement agencies. Reliance on information from this document is not usable as a defense in any enforcement action or litigation. 6

7 A.1) Introduction to Volume A This Guidebook Volume A details the various permitting and regulatory requirements for CHP facilities and provides tools in the form of an Emissions Calculator and a permitting questionnaire to efficiently navigate through the permitting process. The guidebook is limited to the most common types of CHP technologies including natural gas or fuel oil fired reciprocating engines, microturbines and combustion turbines. The guidebook does not cover non-commercially available technologies such as fuel cell based CHP systems. The Rolodex Symbol used throughout this guidebook indicates important phone numbers and websites, which contain additional information on the topic of a particular section. A.2) Air Permitting This section provides an overview of the types and principles of air permitting. Depending on size and location of the project, most new or modified CHP systems will have to obtain an air pollution control construction permit ( construction permit ) and an air pollution control operating permit ( operating permit ) from the Illinois EPA. A construction permit is required before the start of the construction of a CHP facility and an operating permit is required before commercial operation of the CHP facility can begin. The start-up, testing, and commissioning of the CHP facility is also covered by the construction permit. Due to the importance of air permitting this section will detail which types of permits exist and it will provide an introduction to air permitting terminology such as attainment/nonattainment areas, major/minor emission sources and netting. 7

8 Air Permitting Information In depth air permitting information is posted on the Illinois Environmental Protection Agency Website at 2 To Access Air Permitting Regulations Air Permitting is governed by Title 35 Subtitle B, Part 201 of the Illinois Administrative Code and can be accessed on the internet at A.2.1) Construction Permitting A.2.1.1) Construction Permit Exemptions The construction or modification of a CHP facility requires a construction permit unless the facility is exempt. Smaller CHP facilities may be exempt from obtaining a construction permit. Appendix A lists all potentially relevant exemptions specified in Title 35 Part 201 of the Illinois Administrative Code, which may apply to CHP systems. One of the potentially most important exemptions for CHP systems is detailed in Section i) and reads as follows: Any stationary internal combustion engine with a rated power output of less than 1118 kw (1500 horsepower), except that a permit shall be required for any stationary gas turbine engine with a rated heat input at peak load of 10.7 gigajoules/hr (10 mmbtu/hr) or more that is constructed, reconstructed or modified after October 3, 1977 and that is subject to requirements of 40 CFR 60, Subpart GG; 2 The IEPA website provided a lot of input for this guidebook. Any errors in applying the IEPA information to this guidebook are, of course, the responsibility of the author of this document. 8

9 This results in the general rule of thumb that CHP facilities below 1.1 MW in capacity may not need a construction permit. However, while this is a helpful first approximation, more detailed emissions analyses should always be undertaken. Furthermore, even if no state air pollution control permit is required, every CHP facility should be registered with the IEPA (see Section A.2.6 on how to register a CHP facility). Also, local codes by local environmental agencies may additionally require registration of a CHP facility with the respective local agency (see Section A.4.1). To contact the IEPA Bureau of Air s Permitting Section call (217) A.2.1.2) Construction Permit Basics Two of the key concepts of air permitting are that the requirements differ based on the geographic region where the project is located and also on the emission levels of each regulated pollutant. a) Geographic Location of the Project The Clean Air Act as amended in 1990 sets standards for the permissible levels of certain pollutants in the air on a pollutant by pollutant basis. Geographic regions where the level of such a pollutant is below the standard are called attainment areas for the specific pollutant; regions where the level of a pollutant is above the standard are called nonattainment areas for the specific pollutant. As a result, a certain region may be in attainment for one pollutant while being a designated non-attainment area for another pollutant. In Illinois certain areas are designated non-attainment for ground level ozone, which forms when sunlight combines with nitrogen oxides (NOx) and volatile organic material (VOMs) such as the chemicals released from gasoline, hairspray, charcoal lighter fluids and others. Other areas in Illinois are designated non-attainment for particulate matter (PM), which is a general term for solid particles or liquid droplets found in the air. These particles can be large enough to be seen as soot or smoke. The following areas are currently designated non-attainment areas for the ozone precursor VOM in Illinois: County/Township Cook DuPage Name of Area Chicago Non-Attainment Area Chicago Non-Attainment Area 9

10 Kane Lake Will McHenry Kendall OswegoTownship Grundy: Aux Sable Township Grundy: Goose Lake Township Chicago Non-Attainment Area Chicago Non-Attainment Area Chicago Non-Attainment Area Chicago Non-Attainment Area Chicago Non-Attainment Area Chicago Non-Attainment Area Chicago Non-Attainment Area The following areas are currently designated non-attainment areas for the ozone precursors VOM and NOx in Illinois: County Madison Monroe St. Clair Name of Area Metro-East Non-Attainment Area Metro-East Non-Attainment Area Metro-East Non-Attainment Area Furthermore the following areas are currently designated non-attainment for particulate matter (PM): McCook, Lake Calumet and Granit City. CHP facilities whose potential emissions would exceed certain thresholds (see Section b below) and which are installed in non-attainment areas have to obtain Non- Attainment New Source Review (Non-Attainment NSR) permits. Facilities that exceed a certain size (see Section b below) and that are installed in attainment areas obtain Prevention of Significant Deterioration (PSD) permits. Generally speaking Non- Attainment NSR rules have stricter requirements than PSD rules, which result in the following key differences in emissions control requirements for potential CHP projects: CHP projects subject to Nonattainment-NSR permits have to employ Lowest Achievable Emission Rate (LAER) technologies. This means that the CHP project has to utilize equipment, which achieves the most stringent emission limitations by such class or category of source regardless of cost. Equipment achieving LAER requirements only needs to be applied for emissions of pollutants subject to Nonattainment-NSR permits. CHP projects subject to PSD permits have to employ Best Available Control Technology (BACT). This means that the CHP project has to utilize the best technically feasible technology for emissions of pollutants subject to PSD taking into account energy, environmental, and economic impacts as well as costs. b) Emission Levels Depending on the amount of pollution emitted a project can be classified as a) a minor source, b) a new major source or c) a major modification at an existing major source. Only projects classified as a major source or a major modification have to obtain a PSD permit or a non-attainment NSR permit. A new major source refers to CHP projects 10

11 constructed on greenfield sites or at facilities which are not already classified as a major source. A major modification at an existing source refers to CHP projects constructed at sites which are already classified as a major source. The threshold levels, which determine whether or not a project constitutes a major source or a major modification depend on whether or not the project is located in an attainment or a non-attainment area. A CHP Project located in a non-attainment area will be classified as a major source for the nonattainment area pollutant(s) if its emissions levels for any pollutant exceed the following thresholds in tons per year (tpy): Pollutant by Non Attainment Area Non Attainment - Major Source Thresholds (tpy) PM - McCook, Lake Calumet, Granite City 100 VOM - Metro-East 100 NOx - Metro East 100 VOM - Chicago 25 Table A : Nonattainment Major Source Thresholds The EPA classifies Ozone, Particulate Matter and Carbon Monoxide nonattainment areas into five severity levels corresponding to different emission levels, which trigger a major source classification. For example, Chicago is currently classified as a severe non-attainment area for ozone, which means that new projects emitting 25 tons or more of VOM (a precursor to ozone) constitute a major source and require a Nonattainment-NSR permit. Metro East is currently classified as a marginal non-attainment area for ozone, which means that new projects emitting 100 tons of either VOM or NOx require a Nonattainment-NSR permit. A CHP Project located in a non-attainment area will be classified as a major modification at an existing major source if the facility is already classified as a major source for the nonattainment area pollutant(s) and if its emissions levels for the nonattainment area pollutant exceed the following thresholds: Pollutant by Non Attainment Area Non Attainment - Major Modification Thresholds (tpy) PM - McCook, Lake Calumet, Granite City 15 VOM - Metro-East 40 NOx - Metro East 40 VOM - Chicago 25 Table A : Nonattainment Major Modification Thresholds A CHP Project located in an attainment area will be classified as a major source if its emissions levels for any pollutant exceed the following thresholds: 11

12 Attainment Major Source Thresholds (tpy) 28 Categories of Source Individual Pollutant Other Categories of Source Table A : Attainment Major Source Thresholds As discussed above, the applicable permitting requirements depend primarily on the location of the project (attainment/non-attainment area) and on the size of the project (amount of emissions). However, the major source thresholds for projects located in an attainment area depend on a third factor: the type of facility ( Categories of Source ) in which the CHP project is being installed. 4 For 28 Categories of Source the major source threshold for any pollutant is 100 tons per year. For all other Categories of Source the emissions limit is 250 tons per year. A CHP Project located in an attainment area will be classified as a major modification at an existing major source if the facility is already classified as a major source and if its emissions levels for a pollutant exceed the following thresholds: Pollutant Attainment - Major Modification Thresholds (tpy) Ozone (VOM) 40 CO 100 PM 15 Sox 40 NOx 40 Table A : Attainment Major Modification Thresholds Note that the major modification thresholds in an attainment area do not depend on the Categories of Source (unlike the major source thresholds). 3 These 28 categories are: Fossil fuel-fired steam electric plants of more than 250 million British thermal units per hour heat input, coal cleaning plants (with thermal dryers), kraft pulp mills, portland cement plants, primary zinc smelters, iron and steel mill plants, primary aluminum ore reduction plants, primary copper smelters, municipal incinerators capable of charging more than 250 tons of refuse per day, hydrofluoric, sulfuric, and nitric acid plants, petroleum refineries, lime plants, phosphate rock processing plants, coke oven batteries, sulfur recovery plants, carbon black plants (furnace process), primary lead smelters, fuel conversion plants, sintering plants, secondary metal production plants, chemical process plants, fossil fuel boilers (or combinations thereof) totaling more than 250 million British thermal units per hour heat input, petroleum storage and transfer units with a total storage capacity exceeding 300,000 barrels, taconite ore processing plants, glass fiber processing plants, and charcoal production plants. 12

13 In addition to the above detailed pollutants, CHP facilities may also emit so called Hazardous Air Pollutants (HAPs). For a complete list of HAPs go to The major source threshold for HAPs is 10 tpy for any one HAP and 25 tpy for combined HAP. Among HAPs, formaldehyde may likely be emitted in significant amounts from CHP facilities. Large CHP facilities (>25 MW) with substantial energy sales (>33%) to other parties may additionally be subject to Acid Rain regulations. Since these conditions do not apply to the majority of CHP facilities Acid Rain regulation will not be discussed as part of this guidebook. A CHP project which is significant enough in size to trigger the need for a PSD permit or a Nonattainment-NSR permit (which means having to install BACT or LAER equipment) can avoid obtainment of these permits through a netting mechanism. Netting means that projects can claim credit for the actual emission reductions from emission sources replaced by the project or from other sources within the last 5 years. 4,5 This means a CHP project replacing a packaged boiler system could be eligible for emission credits from this replacement and avoid having to obtain a PSD or Nonattainment-NSR permit. Emissions credits are granted on a 1:1 ratio, meaning a project can claim one ton per year of credit for every ton per year of reduced emissions during the last 5 years. Projects proposed in severe or marginal non-attainment areas are required to provide a higher amount of offsets in order to avoid a Nonattainment-NSR permit. The higher offset ratio is 1.3:1 for severe non-attainment areas and 1.15:1 for marginal non-attainment areas in Illinois. For example, a CHP project replacing a packaged boiler system emitting 100 tons of VOM in a severe ozone non-attainment area can only claim credit for 77% (1:1.3) of the shut-down boiler emissions, in this case 77 tons for netting purposes. Besides netting, a project can reduce its emissions below PSD/Nonattainment-NSR permitting limits by installing effective pollution control equipment (e.g. lean premix technology for combustion turbines etc.) or by limiting the operation of the equipment. Limiting the operation means that a project can commit in the permit to a maximum of yearly operating hours, thus controlling the level of emissions. 6 In summary If a project is classified as minor source it has to obtain a minor construction permit, which is less complex than the major permit. A minor construction permit is needed if a) the project does not qualify for an exemption but its emissions levels are below PSD or non-attainment NSR thresholds, or b) netting reduces a project s emissions below PSD or non-attainment NSR thresholds, or c) committing in the permit to operating limits reduces a project s emissions below 4 This is called the contemporaneous period, which counts five years backwards from the day a complete application was received by the EPA. 5 The IEPA makes the final decision on which emissions reductions qualify for credits. 6 A project, which commits to operating limits in order to reduce its emissions below PSD/Nonattainment NSR permitting limits is often referred to as a synthetic minor source. 13

14 PSD or non-attainment NSR thresholds (in this case the project becomes a socalled synthetic minor source ), or d) more effective pollution control equipment reduces a project s emissions below PSD or non-attainment NSR thresholds. if a project is classified as a major source or a major modification and it is located in an attainment area, such as all of Illinois outside Chicago and Metro East, it has to obtain a PSD permit and utilize equipment with the Best Available Control Technology (BACT). These permit requirements may be avoided by netting the proposed CHP projects emissions with reductions from existing emission units, by taking operating limits or by installing more effective pollution control equipment. if a project is classified as a major source or a major modification at an existing source and it is located in a non-attainment area, such as for example the Chicago and Metro East ozone non-attainment areas, it has to obtain a Nonattainment NSR permit and utilize equipment which emits the Lowest Achievable Emission Rates (LAER). These permit requirements may be avoided by netting the proposed CHP projects emissions with emissions reductions from existing emission units, by taking operating limits or by installing more effective pollution control equipment. Higher offset requirements exist for CHP projects permitted in serious and severe non-attainment areas. 14

15 A Construction Permit Flow Chart The following flow chart summarizes the construction permitting process. The decisions in the flowchart are made on a per-pollutant basis. Note that permitting exemption may apply to your facility (see Section A.2.1.1). CHP Project Non- Attainment Area for Any Pollutant(s) No Yes Non-Attainment Existing Major Source No Yes Emissions Above Major Source Threshold UseTable A : Nonattainment Major Source Thresholds Use Table A : Nonattainment Major Emissions Above Major Modification Modification Significant Level Thresholds No Yes No Yes Limit Emissions (i.e limit operating hours, install control equipment) Limit Emissions (i.e limit operating hours, install control equipment) Yes No Yes No Minor Construction Permit Major Construction Permit for Nonattainment NSR - Employ LAER Technologies Minor Construction Permit Major Construction Permit for Nonattainment NSR - Employ LAER Technologies Other Attainment Pollutants Attainment Existing Major Source No Yes Emissions Above Major Source Threshold Use Table A : Attainment Major Source Thresholds Use Table A : Attainment Major Emissions Above Major Modification Modification Significant Level Thresholds No Yes No Yes Limit Emissions (i.e limit operating hours, install control equipment) Limit Emissions (i.e limit operating hours, install control equipment) Yes No Yes No Minor Construction Permit Major Construction Permit for PSD - Employ BACT Technologies Minor Construction Permit Major Construction Permit for PSD - Employ BACT Technologies 15

16 A.2.2) Operating Permitting In general, all facilities that needed a construction permit will also need an operating permit. For operating permits the same major new source thresholds and major modification thresholds as well as attainment/nonattainment area classifications apply as previously outlined for construction permits (see Section A.2.1.2).! CHP systems that are classified as a minor source can generally obtain an operating permit on a lifetime basis, meaning there are no renewal or reapplication requirements unless requested by IEPA for certain defined reasons.! CHP systems that are classified as a major source or as a major modification to an existing source need to obtain a CAAPP (Clean Air Act Permit Program) permit, which is detailed and complex in nature. The IEPA states that this type of permit will typically require professional assistance.! The CAAP permitting requirements can be avoided by obtaining a so-called FESOP permit (Federally Enforceable State Operating Permit), which is less complex in nature. CHP facilities classified as a major source or as a major modification to an existing source can obtain a FESOP permit by committing the facility to operating limits, which bring the emissions levels below the major source or major modification thresholds. Besides the commitment to operating limitations, the FESOP permitting process follows the minor source permitting process. Please refer to Section A.2.6 for information on which Form to submit to IEPA in order to obtain the required operating permit. A.2.3) Obtaining Emissions Data for Permitting Purposes As stated above, unless a project is exempt, the permit requirements for both construction and operating permits depend on the location and the emission level of the CHP project. Based on these criteria a project is either classified as a minor source, a major source, or a major modification at an existing major source. The construction permit and the operating permit require the permit applicant to provide emissions information about the CHP project. The IEPA generally relies on the emissions data provided by the applicant. If the emissions data provided by the applicant does not allow an accurate assessment of the CHP project s emissions then a CHP project may be improperly permitted, putting the project at risk for additional equipment costs and penalties. This may be revealed when the CHP project is built and the emissions are actually tested (for example in response to a complaint filed with IEPA). Therefore it is important to gain a good understanding of a CHP project s emissions prior to filling out the permit. Several sources of data exist which can be used to gain emissions information for the planned CHP project, all of which can be used for the permit application. The main data sources are: 16

17 a) Manufacturers Spec Sheets. Manufacturers of CHP equipment can provide information about the emissions of the equipment model. b) Engineering/Site Specific Modeling. Since the emissions of commonly used electric generating equipment varies with altitude and ambient temperature, even more accurate emissions data will combine manufacturer data with these geographic factors of the project. c) In some instances emission measurements of the actual equipment is available. (For example if used equipment is being purchased or re-commissioned or if the manufacturer performs emissions measurements on the actual equipment) d) Emissions Estimations based on AP-42 Emissions Factors. The U.S. Environmental Protection Agency has compiled emissions factors, which represent the typical emissions of general classes of equipment. For example, one set of factors represents the emissions for each pollutant from stationary gas turbines with no emissions controls installed, another set of factors represents emissions from gasoline engines less than 600 hp. Since the AP-42 factors represent typical emissions from different manufacturers, different models, and different geographic locations, these factors are not as accurate as actual emissions measurements, engineering models or manufacturer s spec sheets. Nevertheless, actual measurements, spec sheets or engineering models may not be available early in the project phase. Therefore the Midwest CHP Application Center has developed an emissions calculator based on AP-42 factors which allows one to gain a first understanding of a project s emissions. While these calculations can be used for the permit application, backup of these calculations with data from other sources is certainly advised and increases the accuracy of the provided data. Instructions on how to download the calculator from the Midwest CHP Application Center s website and how to use this tool can be found in Appendix C. 17

18 A.2.4) CHP Permitting Examples This section illustrates the permitting concepts described above with several hypothetical permitting examples. Emissions data used in these examples was estimated with the Midwest CHP Application Center s Emissions Calculator (see Appendix C for Calculator manual and explanation of Calculator print-outs used in this section). As discussed above, other sources can be used to estimate the emissions from a potential CHP project including manufacturer s spec sheets, modeling or actual emissions measurements. Example 1: CHP System with Minor Source Permit Requirement In this example a new office building is being constructed in Springfield, Illinois (an attainment area) with a CHP facility powered by a 1.5 MW natural gas fired engine. The following considerations determine the facility s construction permit requirements.! The CHP facility will not qualify for an exemption since the capacity is in excess of the exemption threshold of approximately 1.1 MW or 1500 hp (see Appendix A).! Since this is a new building and not a major modification to an existing building which was previously classified as a major source, it needs to be determined whether or not the project by itself constitutes a major source. Permitting in this case does not need to address other emission units since it is an office and not a manufacturing facility, which would have other emission units that would have to be considered.! Refer to Table A : Attainment Major Source Threholds. Since Office Buildings is not one of the 28 Categories of Source listed in footnote #4 to the table, then it is classified as Other Categories of Source and has a major source threshold of 250 tpy for pollutants such as PM, SOx, NOx, VOM, and CO.! Since natural gas fired engines may emit formaldehyde, a hazardous air pollutant (HAP), we must also check this pollutant against the major source threshold of 10 tpy.! To estimate the levels of pollution from this CHP plant, we utilized the CHP Emissions Calculator (see Appendix C) and obtained the following printout for this CHP operation of 8760 hours per year.! The Emissions Calculator automatically calculates the estimated emission levels both on the left and right side of the print-out. The left side of the print-out provides the threshold levels for major modifications and major new sources in attainment areas and the right side of the print-out provides the threshold levels for major modifications and major new sources in nonattainment areas. 18

19 ! The printout shows that the estimated emissions (green shaded area) are below the PSD Major Source Threshold for attainment areas (left side of the print-out) for every pollutant, including formaldehyde. Natural Gas Fired Engine CHP Operation Per Year (hr): 8,760 Fuel Input (MMBtu/hr): Attainment Non-Attainment Emissions Non-Attainment Nonattainment Factor* (lbs/mmbt PSD Major Modification PSD Major Source Emissions Factor* NSR Major Modification NSR Major Source u Fuel Significant Level Thresholds (lbs/mmbtu Emissions Significant Level Thresholds Pollutant Input) Emissions (tpy) (tpy) (tpy) Pollutant Fuel Input) (tpy) (tpy) (tpy) PM ** PM - McCook, Lake Calument,Granite City S0x ** VOM - Metro East N0x ** NOx - Metro East VOM ** VOM - Chicago CO ** Formaldehyde ** Emissions Factors exclude 28 Categories of Source *Emissions Factors for Four Stroke Lean Burn Engines - Uncontrolled Emissions *Emissions Factors for Four Stroke Lean Burn Engines - Uncontrolled Emissions! Therefore, the facility should submit the emissions estimates to IEPA with it clearly stating how the estimates were derived. The facility should request a classification as a minor source. The forms to apply for a construction permit are discussed in Section A.2.6 of this guidebook. Example 2: CHP System Avoiding Nonattainment-NSR Permitting Requirements by Installing Control Equipment or Committing to Operating Limitations In this example, a new paper mill with an 8 MW natural gas fired combustion turbine CHP facility is being constructed in the Metro-East non-attainment area. (Section A lists all areas currently classified as non-attainment in Illinois including Metro-East s nonattainment status for VOM and NOx). The following considerations determine the facility s construction permit requirements.! This 8 MW natural gas fired turbine has a rated heat input of 90 MMBtu/hr which is well above the 10 MMBtu/hr rated heat input limit that would qualify the facility for an exemption (see Appendix A).! Since this is a new paper mill and not a major modification to an existing paper mill which was previously classified as a major source, it needs to be determined 19

20 whether or not the project by itself constitutes a major source.! Refer to Table A : Nonatttainment Major Source Thresholds. Metro-East is currently nonattainment for VOM and NOx with major source threshold levels of 100 tpy.! To estimate the levels of pollution from this CHP plant, we utilized the Emissions Calculator (see Appendix C) and obtained the following printout for this CHP facility operating at 8760 hours/year. Natural Gas Fired Turbine CHP Operation Per Year (hr): 8,760 Fuel Input (MMBtu/hr): Attainment Non-Attainment Emissions Non-Attainment Nonattainment Factor* (lbs/mmbt PSD Major Modification PSD Major Source Emissions Factor* NSR Major Modification NSR Major Source u Fuel Significant Level Thresholds (lbs/mmbtu Emissions Significant Level Thresholds Pollutant Input) Emissions (tpy) (tpy) (tpy) Pollutant Fuel Input) (tpy) (tpy) (tpy) Uncontrolled Emissions: Uncontrolled Emissions: PM ** PM - McCook, Lake Calument,Granite City S0x ** VOM - Metro East N0x ** NOx - Metro East VOM ** VOM - Chicago CO ** Formaldehyde With Water-Steam Injection: With Water-Steam Injection: N0x ** NOx - Metro East CO ** With Lean-Premix: With Lean-Premix: N0x ** NOx - Metro East CO ** ** Emissions Factors exclude 28 Categories of Source *Emissions Factors for Stationary Gas Turbines - Uncontrolled Emissions *Emissions Factors for Stationary Gas Turbines - Uncontrolled Emissions! The printout shows that the estimates for uncontrolled emissions of VOM (0.83 tpy) are below the major source threshold of 100 tpy. However, the uncontrolled emissions of NOx ( tpy) exceeds the major source threshold of 100 tpy.! The printout also shows that if Water-Steam Injection (51.25 tpy) or Lean-Premix technology (39.03 tpy) are utilized to control emissions, then the estimated NOx levels are well below the major source threshold.! Therefore the facility could submit the appropriate forms (see Section A.2.6 of this guidebook) requesting a classification as a minor source if the facility installs either of the NOx control equipment.! Rerunning the Emission Calculator for the facility, but limiting the operating hours to 6000 hours/year results in the estimated NOx levels (86.4 tpy) being below the major source threshold of 100 tpy. 20

21 Natural Gas Fired Turbine CHP Operation Per Year (hr): 6,000 Fuel Input (MMBtu/hr): Attainment Non-Attainment Emissions Non-Attainment Nonattainment Factor* (lbs/mmbt PSD Major Modification PSD Major Source Emissions Factor* NSR Major Modification NSR Major Source u Fuel Significant Level Thresholds (lbs/mmbtu Emissions Significant Level Thresholds Pollutant Input) Emissions (tpy) (tpy) (tpy) Pollutant Fuel Input) (tpy) (tpy) (tpy) Uncontrolled Emissions: Uncontrolled Emissions: PM ** PM - McCook, Lake Calument,Granite City S0x ** VOM - Metro East N0x ** NOx - Metro East VOM ** VOM - Chicago CO ** Formaldehyde With Water-Steam Injection: With Water-Steam Injection: N0x ** NOx - Metro East CO ** With Lean-Premix: With Lean-Premix: N0x ** NOx - Metro East CO ** ** Emissions Factors exclude 28 Categories of Source *Emissions Factors for Stationary Gas Turbines - Uncontrolled Emissions *Emissions Factors for Stationary Gas Turbines - Uncontrolled Emissions! Normally, the EPA is looking for the estimated emission levels resulting from reduced operating hours to be in excess of 20% below the major source threshold. This provides a reasonable error band around the estimate. If the error band is not deemed reasonable (less than 20% below the major source threshold in this case) the EPA may require public notice of the permit application, which includes a public hearing to obtain comments. This may result in a lengthy process, thus delaying the permitting process.! Further reducing the operating hours could result in a reasonable and acceptable error band, thus avoiding the public notice process and allowing IEPA to classify the CHP facility as a synthetic minor source and avoiding the nonattainment- NSR permitting process. Example 3: CHP System with PSD Permit Requirements In this example an automotive assembly facility wants to add a CHP system with a 4000 hp diesel engine to the existing power plant. The company intends to run the facility only during peak operations, which corresponds to approximately 3400 hours per year. The assembly facility is located in Decatur, Illinois, which is in attainment for all pollutants. The following considerations determine the facility s construction air permit requirements. 21

22 ! The CHP facility will not qualify for an exemption since the capacity is in excess of the exemption threshold of 1500 hp (see Appendix A).! Since the power plant is already classified as a major source it needs to be determined whether or not the addition of the CHP facility constitutes a major modification at an existing major source.! Refer to Table A : Attainment Major Modification Thresholds. As can be seen the emissions thresholds at which an addition of a CHP facility to an existing major source will be classified as a major modification are 40 tpy for VOM, SOx and NOx, 100 tpy for CO, and 15 tpy for PM.! To estimate the emissions from this CHP plant, we utilized the Emissions Calculator (see Appendix C) and obtained the following printout for this CHP facility operating at 3400 hours/year. Diesel Recip Engine >= 600 hp CHP Operation Per Year (hr): 3,400 Engine Output (hp): Attainment Non-Attainment PSD Major Modification Significant Level (tpy) PSD Major Source Thresholds (tpy) Non-Attainment NSR Major Modification Nonattainment NSR Major Source Emissions Factor* Emissions Factor* Emissions Significant Level Thresholds Pollutant (lb/hp*hr) Emissions (tpy) Pollutant (lb/hp*hr) (tpy) (tpy) (tpy) Uncontrolled Emissions Uncontrolled Emissions PM ** PM - McCook, Lake Calument,Granite City S0x ** VOM - Metro East N0x ** NOx - Metro East VOM ** VOM - Chicago CO ** Controlled Emissions Controlled Emissions NOx ** NOx - Metro East ** Emissions Factors exclude 28 Categories of Source *Emissions Factors for Large Stationary Diesel Engines - Uncontrolled Emissions *Emissions Factors for Large Stationary Diesel Engines - Uncontrolled Emissions! As can be seen the estimated emissions for SOx (55.01 tpy) exceed the attainment area limit for major modifications (40 tpy) and the estimated emissions for NOx (163.2) likewise exceed the major modification significant level (40 tpy).! Therefore the emissions calculation indicate that this facility constitutes a major modification at an existing major source. Due to the location in an attainment area, the facility will need to obtain a PSD Permit.! Therefore, the facility should submit the emissions estimates to IEPA with it clearly stating how the estimates were derived. The facility should request a classification as a major modification at an existing major source. The forms to 22

23 apply for a construction air permit are discussed in Section A.2.6 of this guidebook. A.2.5) Recent Air Permitting Case - The University of Illinois Campuses Last year the University of Illinois at Chicago commenced operation of a new cogeneration facility located at its West Side Compus. The cogeneration plant at this facility has an installed capacity of 36 MW and consists of 3 natural gas fired reciprocating engines and three natural gas fired combustion turbines with heat recovery for heating and cooling of the campus facilities. Air permitting was outsourced to Stanley Consultants. The West Side Campus cogeneration plant was permitted as an addition of a minor source to an existing major source by netting emissions increases from the turbines with emissions decreases from replacement of old existing boilers at the site. The air permitting process for this facility took about 6 months to complete with a total estimated cost (including time/labor) of $10,000. The University of Illinois is also currently constructing a cogeneration facility at its Urbana-Champaign Campus. This facility has an installed capacity of 57 MW and is expected to start commercial operation by spring The facility was also able to be permitted as a minor source by taking modest operation limits and installing low NOx burners on existing gas/oil fired boilers to reduce overall emissions at the site. Actual permitting records, including the final permits issued for the above University of Illinois CHP facilities, are posted on the EPA Region 5 database. To view air permit records for Illinois facilities... visit the EPA Region 5 Air Permit Database at R5/permits/ilonline.htm. 23

24 A.2.6) Air Permitting Forms Based on the emissions data obtained from the manufacturer, AP-42 factors, the Emissions Calculator (which is based on AP-42 factors), or other sources, the permit applicant in its application recommends to IEPA that the project qualifies as a minor source, a major source or a major modification to an existing major source. Depending on the applicant s recommendation, the following forms should be utilized. Construction Permit Forms If the project is considered a major modification to an existing source, then the permit applicant generally has to fill out a CAAPP Permit Form 199-CAAPP prior to construction. A copy of Form 199-CAAPP can be downloaded at Projects, which are considered exempt, should be registered with the IEPA. This is not a requirement but a request by IEPA. Registration of the facility should include a letter to the IEPA stating the name and address of the project, the type of electric generation equipment installed, and readily available emissions data from manufacturer spec. sheets. All other projects fill out a State of Illinois Air Pollution Control Permit Form APC-200 to start the permitting process. A copy of Form APC-200 and instructions can be found in Appendix B1. Emissions information required by APC-200 for CHP systems should be provided using Form APC-240, which can be found in Appendix B2. The forms can also be downloaded at Operating Permit Forms If the project is a major modification to an existing source, then the permit applicant generally has to fill out a CAAPP Operating Permit Form 200-CAAPP. A copy of Form 200-CAAPP can be downloaded at All other sources, including sources requesting a FESOP permit start the operating permitting process by filling out the State of Illinois Air Pollution Control Permit Form APC-200. FESOP applicants additionally have to create and attach a table detailing the calculations that show how reduced operating limits result in emissions below the major source or major modification thresholds. 24

25 All required permitting forms are available on the IEPA website. Air Permitting Forms can be downloaded from the Illinois Environmental Protection Agency s website at: All permit applications require a site plot, a flow diagram and an emissions summary. The following sketch is an example of a site plot for a CHP facility. CHP Site Plot Lincoln School Residential Area 950' Distance 400' Distance Source Boundaries Engine # 1 Stack A Engine # 2 Stack B Vent 500' Distance Memorial Hospital Note that all site plots should show the location of the buildings where the generation equipment is being installed, all stacks and vents, the source boundaries (for CHP facilities generally the combined generator/stack area) and the distance from the source boundaries to the nearest residences, lodgings, schools, hospitals, nursing homes, commercial and manufacturing establishments, and known ambient air monitoring sites within one quarter mile of the source. 25

26 The following sketch is an example of a flow diagram for a CHP facility: Flow Diagram Electricity/Steam Out Emissions Fuel In Combustion Turbine SCR -Pollution Control Stack All flow diagrams should include the emission sources (for example the generation equipment), the pollution control equipment and the exhaust points and the process flow/connections between these systems. Emission information for CHP equipment provided to the IEPA should follow form APC-240 (see Appendix B2). The print-out from the Emissions Calculator could be used to either complete APC-240 or to submit the emissions information alternatively in tabulated form. 26

27 A.2.7) Time Requirements for Air Permitting Depending on the permitting requirements, IEPA may by law take the following processing time after receipt of the initial filing of a complete application: A CHP project where the emissions are well within the minor source emission limits (i.e. it is clearly not a major Source or a major modification to an existing major source for any pollutant) will require at least 3 months of processing time by IEPA for the construction permit. A CHP project where the emissions are close to the major source thresholds or the major modification thresholds, longer processing times with a minimum of 6 months will be required by the IEPA. If a project s emissions are higher than 80% of the major source or major modification threshold limits then the IEPA may determine that public notice is necessary. This could prolong the permitting process substantially since this process includes an additional 45 day comment period. A CHP project, where the emissions are definitely above the threshold for a major source or a major modification will take at least 12 months to permit. It should be noted that these are approximate time requirements; actual time requirements may vary substantially. In a survey conducted as part of this guidebook one facility reported a two year permitting process. However, the mean permitting requirement for all facilities surveyed was 5.5 months. 27

28 A.2.8) Air Permitting Fees Imposed by IEPA There are no fees associated with the construction permitting process administered by IEPA. However, yearly fees are imposed by IEPA for operating permits depending whether or not the facility operates under a CAAP permit or a State Operating Permit (see Section A.2.2.). The yearly fee is calculated based on the total combined project emissions of NOx, SOx, PM, VOM, and Hazardous Air Pollutants (in tons per year). CO emissions are excluded from the calculation of fees. The fee schedule is as follows: Project Total Emissions in tons per year Yearly State Operating Permit Fees < 25 $ $1,000 $1,000 > 100 $13.50 per ton up to a maximum of $2,500. Yearly CAAP Operating Permit Fees $13.50 per ton up to a maximum of $100,000. A Fee Determination Form for CAAP permits (Form 292-CAAP) can be downloaded from the Illinois Environmental Protection Agency s website at: A.2.9) Recommendations for dealing with air permitting agencies As outlined above the permitting requirements differ from project to project depending on size, location, current and past emissions history of the site and other factors. The time it takes to permit a project can range from 90 days to 6 months, and sometimes even longer. 7 The Council of Industrial Boiler Owners has issued recommendations, which should help to shorten the permitting process. 8 These are as follows: Visit the permitting authority at an early stage in the planning process to identify contacts and establish lines of communications. Determine what permits are required and which forms must be completed by talking to the regulatory authority. 7 See Survey in Part B of this handbook 8 Reference: M. R. Barr, What 15,000+ Permits and Permit Modifications Have Taught Us, presented at the CIBO NOx Control XIV Conference, San Diego, California, March 13,

29 Cooperate with permitting authorities. Cooperation is the key to a permitting process that meets all requirements and satisfies the needs of owners, operators, regulators, and the public. Know the project details and technical plans so that visits to the permitting authority are as productive as possible. Do not hide design details. Keep discussions with regulators technical in nature. Do not let personalities interfere with negotiations. Anticipate emissions as accurately as possible. Know when and how to ask for help interpreting laws and regulations that appear to be confusing or conflicting. Be honest, accurate, and complete when asking questions, submitting applications, and reporting emissions data to regulatory authorities. Recognize that local and state regulatory authorities may be understaffed for the existing workload and that obtaining a permit may be a long, tedious, and iterative technical process. Review permits previously issued by the regulatory authority for other facilities with similar design and emission requirements. Understanding the terms and conditions of these permits and being aware of the basis on which permitting decisions were made can help in the development of a permitting strategy that will be successful. Perform realistic cost estimates, and conduct meaningful cost-benefit analyses. Involve attorneys in technical discussions with the regulatory authority only when necessary. Their presence may hinder or impede the exchange of communication about technical issues. Recognize that the permitting authority has wide interpretive latitude. Present feasible, technical options for reducing emissions when proposed plans are unacceptable. Track the permitting process. Do not turn the permitting process over to a third party and then assume negotiation will proceed smoothly and without delay. Establish clear exits from a project when it is apparent that the permitting process will not be successful. Formulate a plan with the regulatory authorities, and stay focused on achieving the required milestones. Be open and objective with regulators and the public. Do not withhold information or be confrontational. Understand the position of the regulatory authority, and only focus on issues that pertain to the permitting process. Negotiate permit terms and conditions. Reserve appeals for situations that are considered totally unacceptable or unrealistic. Persevere, but do not allow time to pass without action. Time wasted due to delays is usually not recovered. 29

30 A.3) Water Permitting CHP systems, which discharge any type of waste water, will need to obtain the appropriate type of waste water permit. The Illinois Environmental Protection Agency s Water s Permit Section can help with any question regarding the correct type of permits. For Water Permitting Questions call the Illinois Environmental Protection Agency s Water s Permit Section at (217) There are three types of water permits relevant to those CHP installations, which discharge any type of waste water. National Pollutant Discharge Elimination System (NPDES) Permit CHP systems, which discharge water to the surface of the earth (including ground on your property) need an NPDES permit. NPDES permitting is a federal program, which is administered by the Illinois Environmental Protection Agency. Facilities which need an NPDES permit should apply for this type of permit 180 days before the intended commencement of operation. CHP systems, which are added to existing facilities with an NPDES permit will have to be added to the existing NPDES permit as a modification. Note that there are no exemptions to this type of permit, i.e. there is no minimum level of discharge that would not require a permit. Illinois State Permit CHP systems, which discharge water to a sanitary sewer system need an Illinois State permit, which is also administered by the Illinois Environmental Protection Agency. CHP systems added to an existing facility with an Illinois State Permit will trigger a modification of the existing Illinois State Permit. Stormwater Permit A new construction of a CHP facility, which disturbs more than 5 acres of land will need a Stormwater Permit, which is part of the federal NPDES program. Following construction, the facility will need either an Illinois State Permit or a NPDES Permit depending if the discharge of the water is to the surface or the sewer system (see above). Starting 2003 the Stormwater Permit requirements will be more stringent and the 5 acres trigger will be revised down to 1 acre. 30

31 Water Permitting Forms can be downloaded from the Illinois Environmental Protection Agency Website at 31

32 A.4) Other Regulatory Requirements A.4.1) Local Codes and Zoning CHP systems also have to comply with local codes and zoning requirements, which differ from jurisdiction to jurisdiction. Local codes and zoning ordinances generally specify the noise levels allowed for CHP systems, the fire safety requirements, the construction and building standards, and the land use restrictions. The Municipal Code Corporation provides the texts of complete codes (including zoning codes) free of charge for many jurisdictions at its website. The following codes for Illinois jurisdictions are available online through the Municipal Code Corporation: Aurora, Beardstown, Calumet City, Carol Stream, Champaign Code of Ordinances, Chicago, Chicago Ridge, Chillicothe, Cicero, De Kalb, Galesburg, Godfrey, Hanover Park, Hoffman Estates, Lebanon, Libertyville, Loves Park, Montgomery, Neoga, New Lenox, Niles, Norridge, Northbrook, Oregon, Pana, Peoria, Plainfield, Pontiac, Rock Falls, Rockford, Rolling Meadows, Roselle, Salem, Skokie, South Holland, Springfield, Thornton, Urbana, Vernon Hills, Waukegan, West Chicago, Westmont, Zion. Texts of Local Codes and including Zoning Requirements... Municipal Code Corporation P.O. Box 2235 Tallahassee, FL The Interstate Publishing Company provides another source of information on local codes. Codes information for all jurisdictions within Cook, DuPage, Lake, McHenry, Kane, Kankakee and Will county are available through Interstate Publishing Companies. The following jurisdiction outside these counties are also covered: Alton, Belleville, Belvidere, Bloomington, Cahokia, Carbondale, Centralia, Charleston, Collinsville, Danville, DeKalb, Decatur, East Moline, East Peoria, East St. Louis, Edwardsville, Freeport, Galesburg, Godfrey, Jacksonville, Lincoln, Machesney Park, Macomb, Marion, Matoon, Moline, Morton, Mount Vernon, Normal, O Fallon, Pekin, Peoria, Quincy, Rantoul, Rock Island, Springfield, Sterling, Urbana. The code directory compiled by Interstate Publishing Company provides the name and contact information of relevant code departments and inspectors for a jurisdiction. The price for the directory is $

33 Additional Information Regarding Local Codes and Zoning... Interstate Publishing P.O. Box 339 Crete, IL Ph: (708) Fax: (708) A.4.2) OSHA Requirements The installation and operation of a CHP facility has to be in compliance with the rules established as a result of the Occupational Safety and Health Act. Unlike other states, which modified the federal standards, Illinois has not established a separate state plan. Hence CHP facilities in Illinois comply with the federal Occupational Safety and Health Standards. Particularly applicable to CHP systems are section 1910 Subpart S Electrical, which contains requirements for wiring of electrical equipment, required workspace around equipment, employee safety training etc. The regulations can be accessed via the internet. Accessing OSHA Standards on the web... &p_part_number=1910&p_text_version=false 33

34 For specific questions regarding OSHA Standards contact the OSHA Consultation service through the Illinois Department of Commerce & Community Affairs. lllinois OSHA Consultation... Illinois Onsite Consultation Industrial Service Division Department of Commerce & Community Affairs State of Illinois Center, Suite West Randolph Street Chicago, IL Phone: (312) A.4.3) Endangered Species, Wetland and Historic Preservation Program Requirements CHP systems added to an existing industrial or commercial facility will most likely not be confronted with the requirements of the Endangered Species, Wetlands and Historic Preservation Programs. However these programs may apply to larger scale CHP systems, which are being developed on greenfield sites and in many cases require zoning changes. The Endangered Species Program, for example, requires units of local government to consult with the Department of Natural Resources for any land use change. However, many units of local government in turn reverse the burden and require developers directly to seek consultation for endangered species program requirements. The Endangered Species Program is administered by the Illinois Department of Natural Resources, the Wetlands Program by the US Army Corps of Engineers and the Historic Preservation Program by the Illinois Historic Preservation Agency. Endangered Species Consultation... Illinois Department of Natural Resources One Natural Resources Way Springfield, Illinois Phone: (217)

35 Wetlands Consultation... US Army Corps of Engineers, Chicago District: 111 N. Canal Chicago, IL Phone: (312) For other Army Corps of Engineers Districts in Illinois go to: Historic Preservation Consultation... Illinois Historic Preservation Agency 500 East Madison Street Springfield, IL Phone: (217) A.4.4) Illinois Department of Public Health Licensing Requirements Depending on the specific application or industrial sector, a CHP facility may encounter other licensing or permitting requirements, especially if part of the CHP equipment qualifies as emergency equipment. As such the Illinois Department of Public Health (IDPH) has licensing requirements for electric equipment installed at hospitals. The licensing requirements are governed by the Licensure Act. To Access the IDPH Requirements for electric equipment... Go to the IDPH website at: 35

36 To contact the IDPH on licensing requirements... Call: (217)

37 A.5) Step by Step towards Successful Permitting Asking the right questions is the first step in navigating through the permitting process. As a prospective CHP candidate, fill out the following questionnaire using the information and additional contact leads provided in the guidebook. The questionnaire was designed to guide a prospective CHP candidate in the right direction towards successful permitting. In order to fill out the questionnaire you should have a basic idea of the type and capacity of the technology which you intend to install at your facility, including the type of the waste heat utilization equipment. Does my CHP facility qualify for an air permitting exemption based on its relatively small capacity size? If Yes contact the IEPA to Register the facility. If No go to the next question. If my facility does not qualify for an air permitting exemption, would my facility s emissions be below the level at which the project would need a PSD Permit or a Nonattainment-NSR Permit? Use the Emissions Calculator or other sources to estimate the answer this question taking into account all possible emissions decreases at the source where the facility would be located. If Yes contact the IEPA for a Minor Source Permit. If No go to next the next question. My facility needs a PSD Permit or a Nonattainment-NSR Permit, is it possible to take limits on the operation of the project? Use the Emissions Calculator or other sources to estimate the possible emissions reductions from your type of facility by taking operating limits. If Yes contact the IEPA to permit the facility as a Synthetic Minor Source and obtain a FESOP operating permit. If No obtain a PSD or Nonattainment-NSR permit as required. Consider engaging the help of a professional air permitting consultant.. Does the CHP equipment discharge any type of waste water at an existing facility? Remember that not only your prime mover may discharge water, but also the waste heat energy utilization equipment such as heat recovery boilers or refrigeration equipment. If Yes you will need a waste water permit. Go to the next question to determine the correct type of permit needed. If No you do not need a waste water permit. 37

38 Does the CHP equipment discharge water to the surface of the earth, i.e. to the surface ground or a stream at an existing facility? If Yes contact the IEPA Water s Permit Section to obtain a NPDES Permit or a modification to your current NPDES permit. If No go to the next question. Does the CHP system discharge water to the sanitary sewer system? If Yes contact the IEPA Water s Permit Section to obtain an Illinois State Water Permit or a modification to your current Illinois State Permit. If No go to the next question. Is your CHP facility a new construction that disturbs more than 5 acres of land (more than 1 acre starting 2003)? If Yes contact the IEPA Water s Permit Section to obtain a Stormwater Permit. If No you do not need a Stormwater Permit. Does my CHP facility have to comply with local code/zoning requirements? Yes Contact the local code representatives using the contact information provided in this guidelbook. Does my facility have to comply with OSHA requirements? Yes Contact the Illinois OSHA Consultation Office using the contact information provided in this guidelbook Is your CHP facility a new construction that disturbs the current land use, wetlands or historic preservation? If Yes contact the Illinois Department of Natural Resources for an Endangered Species Consultation, the US Army Corps of Engineers for wetlands program requirements and the Illinois Historic Preservation Agency for historic preservation requirements. If No you do not need any of the above. 38

39 Is the CHP facility installed at a hospital? If Yes contact the Illinois Department of Public Health for an IDPH License. If No you do not need an IDPH License. 39

40 A.6) Emerging Permitting Regulation/Legislation There are two areas of emerging permitting regulation/legislation, which may impact current permitting practices in Illinois: the addition of an eight-hour ozone standard and a new NOx emissions trading system. The National Ambient Air Quality Standards (NAAQS) specify the measurement methodologies, which the state s have to employ in order to assess the pollution level in an area. Currently, the NAAQS for ozone is 0.12 ppm. Attainment with this standard requires a state to monitor ozone concentrations on an hourly basis. The hourly average must be below 0.12 ppm with only one exceedance allowed per calendar year. The NAAQS ozone standard is being revised by adding an eight-hour standard of 0.08 ppm. Attainment of the eight-hour standard requires that the average annual fourth highest daily maximum eight-hour average ozone concentration over a three-year period be below 0.08 ppm. The eight-hour standard may be in place by December The nonattainment area of Chicago and Metro East will likely retain the non-attainment status once the eight-hour standard is in place. It is unlikely that other areas of Illinois will also be designated as non-attainment areas, however, the final impact of the changes remains uncertain at this point. The Federal Clean Air Act requires each State to submit a State Implementation Plan (SIP), which details how each particular state attempts to reduce emissions in areas, which fail to achieve National Ambient Air Quality Standards (i.e. non-attainment areas). In 1999 Illinois submitted a revised State Implementation Plan to U.S. EPA, which was designed to bring the Chicago area into attainment for ozone. A key element of the plan was the implementation of a trading system for NOx (an ozone compound) emitting sources. The NOx trading system will apply to electric generating facilities greater than 25 MW and to industrial boiler facilities greater than 250 MMBTU fuel input. The continuous emission monitoring requirement of the program is anticipated to start in June 2003 and the program is anticipated to start on May 31, This program will not change the PSD Major Modification or the Nonattainment NSR Major Modification significant levels. CHP units that meet or exceed the size limits of this program will be required to participate. 40

41 Appendix A: Relevant Air Permitting Exemptions 41

42 No permit is required for the following classes of equipment: a) Air contaminant detectors or recorders, combustion controllers or combustion shutoffs; b) Air conditioning or ventilating equipment not designed to remove air contaminants generated by or released from associated equipment; c) Each fuel burning emission unit for indirect systems and for heating and reheating furnace systems used exclusively for residential, or commercial establishments using gas and/or fuel oil exclusively with a design heat input capacity of less than 14.6 MW (50 mmbtu/hr), except that a permit shall be required for any such emission unit with a design heat input capacity of at least 10 mmbtu/hr that was constructed, reconstructed or modified after June 9, 1989 and that is subject to 40 CFR 60, Subpart D; d) Each fuel burning emission unit other than those listed in subsection (c) of this Section for direct systems used for comfort heating purposes and indirect heating systems with a design heat input capacity of less than 2930 kw (10 mmbtu/hr); e) Internal combustion engines or boilers (including the fuel system) of motor vehicles, locomotives, air craft, watercraft, lift trucks and other vehicles powered by non-road engines; g) Coating operations located at a source using not in excess of 18,925 l (5,000 gal) of coating (including thinner) per year; h) Any emission unit acquired exclusively for domestic use, except that a permit shall be required for any incinerator and for any fuel combustion emission unit using solid fuel with a design heat input capacity of 14.6 MW (50 mmbtu/hr) or more; i) Any stationary internal combustion engine with a rated power output of less than 1118 kw (1500 horsepower), except that a permit shall be required for any stationary gas turbine engine with a rated heat input at peak load of 10.7 gigajoules/hr (10 mmbtu/hr) or more that is constructed, reconstructed or modified after October 3, 1977 and that is subject to requirements of 40 CFR 60, Subpart GG; l) Storage tanks for liquids for retail dispensing except for storage tanks that are subject to the requirements of 35 Ill. Adm. Code (a)(2), (a)(2) or (a)(2); n) Storage tanks of: 1) Organic liquids with a capacity of less than 37,850 l (10,000 gal), provided the storage tank is not used to store any material listed as a hazardous air pollutant pursuant to Section 112(b) of the Clean Air Act, and provided the storage tank is not subject to the requirements of 35 Ill. Adm. Code (a)(2), (a)(2) or (a)(2); 42

43 2) Any size containing exclusively soaps, detergents, surfactants, waxes, glycerin, vegetable oils, greases, animal fats, sweetener, corn syrup, aqueous salt solutions or aqueous caustic solutions, provided an organic solvent has not been mixed with such materials; or 3) Any size containing virgin or re-refined distillate oil, hydrocarbon condensate from natural gas pipeline or storage systems, lubricating oil or residual fuel oils. o) Threaded pipe connections, vessel manways, flanges, valves, pump seals, pressure relief valves, pressure relief devices and pumps; p) Sampling connections used exclusively to withdraw materials for testing and analyses; q) All storage tanks of Illinois crude oil with capacity of less than 151,400 l (40,000 gal) located on oil field sites; r) All organic material-water single or multiple compartment effluent water separator facilities for Illinois crude oil of vapor pressure of less than 34.5 kpa absolute (5 psia); dd) Furnaces used for melting metals, other than beryllium, with a brim full capacity of less than 450 cubic inches by volume; ee) Equipment used for the melting or application of less than 22,767 kg/yr (50,000 lbs/yr) of wax to which no organic solvent has been added; ff) Equipment used for filling drums, pails or other packaging containers, excluding aerosol cans, with soaps, detergents, surfactants, lubricating oils, waxes, vegetable oils, greases, animal fats, glycerin, sweeteners, corn syrup, aqueous salt solutions or aqueous caustic solutions, provided an organic solvent has not been mixed with such materials; ii) Die casting machines where a metal or plastic is formed under pressure in a die located at a source with a throughput of less than 2,000,000 lbs of metal or plastic per year, in the aggregate, from all die casting machines; jj) Air pollution control devices used exclusively with other equipment that is exempt from permitting, as provided in this Section; ss) Refrigeration systems, including storage tanks used in refrigeration systems, but excluding any combustion equipment associated with such systems; tt) Activities associated with the construction, on-site repair, maintenance or dismantlement of buildings, utility lines, pipelines, wells, excavations, earthworks and other structures that do not constitute emission units; uu) Piping and storage systems for natural gas, propane and liquefied petroleum gas; 43

44 Appendix B1: APC-200 Permit Forms with Instructions 44

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