Prevention of Significant Deterioration (PSD) Permitting. Scoping Meeting

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1 Prevention of Significant Deterioration (PSD) Permitting Scoping Meeting April 6, 2010 Dave Warner Director of Permit Services 1

2 Overview Prevention of Significant Deterioration (PSD) Permitting Program Options for Pursuing PSD Permitting Delegation Authority, SIP approval Issues to Consider Input from Industry and Stakeholders Next Steps 2

3 Federal Clean Air Act New Source Review (NSR) Nonattainment NSR applies to Major Sources in areas designated as nonattainment for NAAQS nonattainment pollutants such as ozone (NOx and VOC) Administered by SJVAPCD in District Rule 2201 Major Source defined in Rule 2201 PSD applies to Major Sources in areas designated as in attainment with National Ambient Air Quality Standards Attainment pollutants in SJVAPCD include CO, NO2, PM10, SO2, Pb Administered by EPA Region IX for SJV Air Basin 3

4 PSD Permitting Regulation Applies to New Major Sources 100 tons per year of any regulated NSR pollutant for 28 specific source categories Petroleum Refineries Municipal Incinerators more than 250 tons of refuse per day Chemical Processing Plants Petroleum Storage Glass Fiber Processing Plants Fossil Fuel Fired Steam Electric Plants, etc. 250 tons per year of any regulated NSR pollutant for any other source categories Codified in 40 CFR 52.21, , (b) 4

5 PSD Permitting Regulation Applies to modified Major Sources with a Significant Emissions Increase (pollutant in tons per year): Carbon Monoxide 100 Sulfur Dioxide 40 Nitrogen Oxides 40 Particulate Matter 25 PM10 15 Lead Compounds 0.6 Asbestos Fluorides 3 Sulfuric Acid Mist 7 Hydrogen Sulfide 10 Total Reduced Sulfur 10 (including H2S) Reduced Sulfur 10 Compounds (including H2S) And any net emissions increase within 10 km of a Class I area 5

6 6 Class I Areas within 100 km of SJV

7 PSD Permitting Regulation PSD requirements include but are not limited to: Installation of federal Best Available Control Technology (BACT); Conduct air quality monitoring and modeling analyses to ensure that a project s emissions will not cause or contribute to a violation of any NAAQS or maximum allowable pollutant increase (PSD increment); Analyze impacts to soil, vegetation and visibility Notification of Federal Land Manager of nearby Class I areas; and Undergo public comment and participation. 7

8 Current PSD Permitting EPA administers PSD program for Valley Sources Sources need to apply to EPA directly for PSD permit changes PSD requirements are added to Title V Permit by District 24 permitted PSD sources in the District 8

9 PSD Permitting Program EPA wants District to implement PSD permitting requirements EPA has insufficient regional permitting resources PSD permitting through EPA has been slow in some cases Future Greenhouse Gas PSD permitting will add to workload 9

10 PSD Program Options Continue with EPA issuing PSD permits Direct Delegation District requests authority from the EPA to administer the PSD program; administer the federal program verbatim without change. State Implementation Plan (SIP) District operates SIP-approved program by submitting for EPA approval into the SIP PSD rules that are at least as effective and stringent as the federal PSD program. 10

11 Direct Delegation PSD Delegation Agreement with EPA Requires adoption of a new District Rule (not SIP submitted) Delegation can be through general, or facility-specific, agreements District would implement PSD program (CFR 52.21) verbatim EPA continues administrative oversight Environmental Appeals Board (EAB) review is applicable 11

12 SIP-approved Rule Requires adoption of new District SIP Rule Rule must be equivalent to federal PSD program Submitted to EPA for SIP-approval All issues are handled within the District s administrative system (notification, appeals) EPA s EAB review is not applicable 12

13 Issues to Consider Under each option, existing applicability of PSD and its core requirements would not change No options prevent EPA enforcement action May be able to remove attainment pollutants from Rule 2201 Single agency air permitting would coordinate PSD (attainment) review with existing District ATC (non-attainment) review process Would eliminate conflicting permit conditions 13

14 Issues to Consider PSD permitting delays may be reduced with District implementing PSD District generally has better record for timely permit processing District may be more responsive to permittees issues, problems, timeframes Potential EAB delays avoided with SIPapproved PSD program (but not with direct delegation) 14

15 Issues to Consider Some major sources will like current ability to tell EPA that PSD doesn t apply to a project. However, if District is implementing PSD, and already has NSR application for a project, District will determine applicability. District will charge hourly PSD permitting fees to recover costs; EPA doesn t 15

16 Issues to Consider EPA proposed Greenhouse Gas Interpretive Ruling for permitting GHGs under Title V and PSD Proposed GHG Tailoring Rule Proposed PSD permitting at 25,000 tpy and significance Levels between 10,000 and 25,000 tpy EPA expected to issue tailoring rule soon Latest: earliest date for PSD permitting for GHG consideration is January 2, 2011, implementation will be phased w/ largest facilities first May create many more PSD sources and projects 16

17 Next Steps District is requesting comments from stakeholders on implementing the PSD program: Should we do it? If so, how? Direct Delegation? SIP-Approved Program? Specific Concerns? Comments due April 27,

18 Next Steps If we proceed Develop draft rule Workshops More opportunity for stakeholder input, suggestions Board adoption EPA approval needed before implementation (through SIPapproval or delegation agreement) 18

19 Written Comments David Warner Director of Permit Services San Joaquin Valley APCD 1990 E. Gettysburg Ave. Fresno, CA