PSD Background Presentation May 3 rd 2011 John Holmes 1
Prevention of Significant Deterioration (PSD): Overview Federal preconstruction permitting applies to new major stationary sources and major modifications at existing major sources Preconstruction NSR permitting: Prevention of Significant Deterioration (PSD) in attainment areas Different NSR requirements in nonattainment areas 2
PSD Program: Overview (cont d) PSD applies on a pollutant specific basis, depending on local air quality status and the levels of emissions of pollutants covered by PSD. 3
Key Requirements of PSD Permitting Best Available Control Technology (BACT) Air quality impacts: NAAQS and PSD increments Impacts on Class I areas Impacts on soils, vegetation and visibility Public comment Issuance before construction can begin 4
PSD Regulations and Guidance Federal Regulations: 40 CFR 51.166 40 CFR 52.21 State versions of the rules may vary. EPA Guidance: Draft 1990 New Source Review Workshop Manual http://www.epa.gov/ttn/nsr/gen/wkshpman.pdf Determining PSD applicability Determining BACT Dated but consistent with agency position on many aspects of PSD permitting 5
PSD Regulations and Guidance (cont d) Guidance (cont d): Case specific determinations and policy guidance at agency websites http://www.epa.gov/region07/air/policy/search.html http://www.epa.gov/nsr/guidance.html Environmental Appeals Board decisions http://yosemite.epa.gov/oa/eab_web_docket.nsf/psd+permit+appeals+( CAA)?OpenView Prevention of Significant Deterioration and Title V Permitting Guidance for Greenhouse Gases http://www.epa.gov/nsr/index.html 6
Regulated NSR Pollutants Certain requirements for criteria pollutants covered by NAAQS: PM 10, PM 2.5 and precursors CO SO 2 VOCs and NO x, as precursors for ozone NO 2 Lead 7
Regulated NSR Pollutants (cont d) Pollutants without NAAQS: GHGs Total PM Fluorides Sulfuric acid mist Reduced sulfur compounds Metals Acid gases MSW landfill emissions MWC organics Ozone-Depleting Substances 8
PSD Applicability: Defining the Source Stationary source is any building, structure, facility or installation All pollutant-emitting activities: Same industrial grouping Contiguous or adjacent properties Common ownership or control Defining modification All units with physical or operational change No artificial separation of a project Few exclusions Routine maintenance repair or replacement Increases in hours of operation 9
PSD Major Source Thresholds Major source thresholds depend on the nature of the source Potential to emit of 100 TPY or greater, if source is in 28 source categories Include fugitive emissions All other sources, PTE of 250 TPY or greater Exclude fugitive emissions (new sources only) Include fugitive emissions (modifications) Additional GHG thresholds (to be discussed later) 10
28 Source Categories Subject to the 100 TPY Threshold Coal cleaning plants (with thermal dryers) Kraft pulp mills Portland cement plants Primary zinc smelters Iron and steel mills Primary aluminum ore reduction plants Primary copper smelters Municipal incinerators (capable of charging more than 250 tons refuse/day) Hydrofluoric acid plants Sulfuric acid plants 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 boiler or combination of boilers (total over 250 MMBTU/hr) Petroleum storage and transfer units (with a total storage capacity exceeding 300,000 barrels) Taconite ore processing plants Glass fiber procession plants Charcoal production plants Fossil fuel fired steam electric plants (total over 250 MMBTU/hr) 11
Determining PSD Applicability for New Stationary Sources Define the source Define applicability emission thresholds for the major source Assess local NAAQS attainment status Define project emissions (potential to emit) Determine if source is major Determine pollutant(s) subject to PSD review 12
Determining PSD Applicability for Modifications at Existing Stationary Sources Determine if the source is major under PSD Identify all units or activities with a physical change or change in method of operation Determine if there is a "significant net contemporaneous emissions increase" for any PSD pollutant When assessing emissions increases, consider the indirect impact of debottlenecking and include quantifiable fugitive emissions 13
Determining PSD Applicability for Modifications at Existing Stationary Sources (cont d) Significant Emission Rates: CO: 100 TPY NOx: 40 TPY SO2: 40 TPY PM: 25 TPY PM 10 : 15 TPY PM 2.5 : 10 TPY of direct PM 2.5 emissions; 40 TPY of SO2; 40 TPY of NO x (unless demonstrated not be a PM 2.5 precursor) Ozone: 40 TPY of VOCs or NO x Lead: 0.6 TPY Fluorides: 3 TPY Sulfuric acid mist: 7 TPY Hydrogen Sulfide (H 2 S): 10 TPY Total reduced sulfur or reduced sulfur compounds (including H 2 S): 10 TPY Ozone Depletion Substances (ODS): 0 TPY GHGs: 0 TPY on mass basis (applicability test for GHGs includes an additional emissions threshold of 75,000 TPY on a CO 2 e basis) MWC organics: 3.5x10-6 TPY MWC metals: 15 TPY MWC acid gases: 40 TPY MSW landfill NMOC: 50 TPY 14
Determining PSD Applicability for Modifications of Existing Major Sources Two-Step Process: Step 1: Is modification a significant emissions increase? Adding up increases by unit For new units, use the Potential to Emit (PTE) For modified units, difference between baseline actual vs. future actual emissions (or PTE) No project netting, do not include units with emission decreases If total below significance level, PSD does not apply 15
Determining PSD Applicability for Modifications of Existing Major Sources Step 2: Is modification a significant net emissions increase? Sum increases and decreases Include both the increases and the decreases of the modification and Include creditable increases and decreases during the contemporaneous period. Creditable decreases must be based on actual-to- potential test Creditable increases and decreases must be practically enforceable. Contemporaneous period usually begins 5 years prior to construction 16
Determining PSD Applicability for Modifications of Existing Major Sources (cont d) "Actual-to-projected actual" emissions test: Baseline actual emissions: Any consecutive 24-month period in prior 10 years (5 years for electric utility) New unit baseline emissions are zero Projected actual emissions: Maximum annual emissions in the next 5 years (10 years if increase in design capacity or PTE). Excludes any increase that is unrelated to the project and could be accommodated in baseline period, including demand growth. Can use actual-to-potential comparison instead 17
Issues with Projected Actual Emissions Inclusion of controls that are not required in a permit Future maximum operation Demand growth exclusion 18
Determining PSD Applicability for Modifications of Existing Minor Sources PSD can be triggered at a minor source if modification is major by itself Netting is not allowed at a minor source 19
Plantwide Applicability Limits (PALs) Mechanism to avoid NSR/PSD in future for an existing source. Plantwide emission limit which is pollutant specific Created in a formal permitting process. So long as total emissions after any modification are below the PAL, PSD not triggered. PAL level is baseline actual emissions plus significant emission rate. GHG PAL would be mass based and significant emission rate is zero. Effective for 10 years. 20
Legal Ways to Avoid PSD Change the scope of the project to limit emissions increase Take enforceable limits on emissions Add more controls Carry out contemporaneous reductions 21
PSD Permitting for Sources of GHGs Under EPA rulemaking, GHGs are a single air pollutant defined as the aggregate group of the following six gases: Carbon dioxide (CO 2 ) Methane (CH 4 ) Nitrous oxide (N 2 0) Sulfur hexafluoride (SF 6 ) Hydrofluorocarbons (HFCs) Perflurocarbons (PFCs) 22
CO 2 Equivalency CO 2 equivalent (CO 2 e) aggregate emissions of GHGs based on relative global warming potential (GWP) CO 2 e = Sum of [(mass of the GHG) x (its GWP)] Current GWPs: CO 2 : 1 CH 4 : 21 N 2 0: 310 SF 6 : 23,900 HFCs: 140 to over 11,700 PFCs: 5,210 to 9,200 (Ratios may be revised. Set in Table A-1 of the GHG reporting rule. Subpart A of 40 CFR Part 98.) 23
Introduction to PSD GHG Applicability There are calculations and thresholds for both CO 2 e and mass. CO 2 e sum used to determine if emissions are subject to the PSD regulations Mass based sum used to determine if major source or major modification 24
PSD Applicability Criteria for New Sources of GHGs On or after July 1, 2011: Source is otherwise subject to PSD for another pollutant and GHG PTE is: Equal to or greater than 75,000 TPY CO 2 e, and Greater than 0 TPY mass basis OR Source has GHG PTE equal to or greater than: 100,000 TPY CO 2 e and 100/250 TPY mass basis 25
PSD Applicability Criteria for Modified Sources of GHGs Step 1 (January 2, 2011 to June 30, 2011) Modification is otherwise subject to PSD for another regulated NSR pollutant, and GHG emissions increase and net emissions increase are: Equal to or greater than 75,000 TPY CO 2 e, and Greater than -0- TPY mass basis 26
PSD Applicability Criteria for Modified Sources of GHGs Step 2 (On or after July 1, 2011) Modification is subject to PSD under Step 1 of the Tailoring Rule OR BOTH Source PTE for GHGs is equal to or greater than: 100,000 TPY CO 2 e and 100/250 TPY mass basis Modification GHG emissions increase and net emissions increase: Equal to or greater than 75,000 TPY CO 2 e, and Greater than -0- TPY mass basis OR Modification alone has GHG emissions equal to or greater than 100,000 TPY CO 2 e, and 100/250 TPY mass basis 27
Four Applicability Conditions for Modifications of Major Sources For a modification, four conditions must exist in order to trigger PSD: 1. CO 2 e emissions increase equals or exceeds 75,000 TPY CO 2 e 2. Net emissions increase of CO 2 e equals or exceeds 75,000 TPY 3. GHG mass emissions increase exceeds -0- TPY 4. Net emissions increase of GHGs (on a mass basis) over the contemporaneous period exceeds -0- TPY 28
Determining GHG Emissions Determine sum of the 6 GHG pollutants on mass basis Determine sum of 6 GHG pollutants on CO 2 e basis All emissions of GHGs: Includes wastewater Beyond the reporting rule No consideration of offsite emissions impacts for applicability Use best available data. Traditional data quality hierarchy: Performance tests on similar units; Mass balances; Vendor data and guarantees; Test data from EPA; AP-42 factors; Factors from literature 29