Update on Michigan Air Pollution Control Rules and Policies MMEA Fall Conference October 4, 2017
Rhiana C. Dornbos, PE Project Engineer Air Quality Permitting and Compliance 517-702-2953 616-265-5755 rdornbos@nthconsultants.com 2
Agenda Michigan Rule Changes AQD Policy and Procedures Air Permitting Developments Ozone Nonattainment Designations Dispersion Modeling Regulatory Horizon 3
Michigan Rule Changes
Changes to Air Pollution Control Rules Effective December 20, 2016 Goals: Clarify Existing Rules Provide additional Exemptions Respond to Objections raised by U.S. EPA Updates to Michigan Air Pollution Control Rules Part 1 Part 2 Part 9 General Provisions Air Use Approval Emission Limitation and Prohibitions - Miscellaneous 5
Exemption Changes/Additions NEW Rule 281(k): Aqueous based parts washers (<5% VOCs) Rule 285 Meaningful Change Exemption additions Rule 290 Limited Emissions Exemption additions NEW Rule 291 De minimis Emissions Exemption Rule 278 reminder 6
Rule 285 Meaningful Change Relatively small changes in permitted process equipment Meaningful increase and Meaningful change defined Increase in PTE or hazard potential of 10% or greater Causes an exceedance of a permit limit Policy and Procedure No. AQD-25 Effective May 9, 2017 Seven-step process to evaluate meaningful change 7
Rule 290 Emission Units with Limited Emissions Based on Actual Emissions Additional thresholds incorporated (Rule 290(2)(a)(ii) CO 2 equivalent Mercury Lead Proper control equipment operation Temperature monitoring 8
Rule 291 Emission Units with de minimis emissions Based on Emission Unit Potential to Emit Criteria pollutants CO 2 equivalent Various TACs and non-tacs 9
Rule 291 Example Emergency Diesel RICE Generator 10
Rule 291 Example Emergency Diesel RICE Generator Step 1: Calculate Potential to Emit 11
Rule 291 Example Emergency Diesel RICE Generator Step 2: Compare to Rule 291 Thresholds Pollutant Rule 291 Threshold (tpy) RICE PTE (tpy) PTE within Rule 291 Threshold? CO 2 e 75,000 930 Yes CO 10 4 Yes NO x 10 7 Yes SO 2 10 0.01 Yes VOC 5 0.5 Yes PM 10 0.2 Yes PM 10 5 0.3 Yes PM 2.5 3 0.3 Yes Total TACs 5 <1 Yes Refer to R 336.1291 for complete criteria 12
Rule 291 Example Emergency Diesel RICE Generator Step 2: Compare to Rule 291 Thresholds Pollutant Category Rule 291 Threshold (tpy) RICE PTE (tpy) PTE of all TACs with SLs 0.04 µg/m 3 and <2 µg/m 3 0.12 0.002 PTE of all TACs with SLs 0.005 µg/m 3 and <0.04 µg/m 3 0.06 0 PTE of all TACs with SLs <0.005 µg/m 3 0.006 0.0004 Refer to R 336.1291 for complete criteria 13
Rule 291 Example Emergency Diesel RICE Generator Step 3: Rule 278a and 278 Include Project or activity Documentation of applicability Requirements under federal standards (NSPS, NESHAP) 14
RMRR Policy for LFG-to-Energy Facilities Policy and Procedure No. AQD-23 Effective June 10, 2016 Rule 285(2)(a)(vi) RMRR as part of a Normal maintenance program Overhaul and repair activities Repairing or replacing components Replacing an engine with a like-kind engine Documentation requirements for equipment NSPS and NESHAP may be affected 15
RMRR Policy for LFG-to-Energy Facilities Exception to Policy and Procedure AQD-23: Catastrophic events Engine failures 16
Exemptions 17
Permitting Changes/Additions Rule 201(4) Permit void if project has not commenced within 18 months Change in RO an off-permit change (Rule 215(5)) Life After ROP Updated (August 2017) Rule 208a rescinded Remove major source requirements based solely on GHGs 18
Permitting Changes/Additions Air Toxics Rule 232: Change to averaging time for certain ITSLs Many ITSLs updated from 8-hour to 24-hour (less stringent) Rule Applicability Citation Rule 224 T-BACT Rule 225 Does not apply to sources in compliance with Rule 702 New Exemption for certain clean-burning equipment New Exemption for certain clean-burning equipment Rule 224(2)(c) Rule 224(2)(d) Rule 226(e) 19
New Exemption from Air Toxics Requirements Applicability Criteria Effective Dates Emission Units Fuels NEW Air Toxics Exemption (Rule 224 and 226) Effective December 20, 2016 Engines, turbines, boilers/process heaters Natural Gas, Diesel fuel, or Biodiesel Variance: Suspension of Enforcement of Rule 225 Extended until June 12, 2018 Fuel burning equipment Natural Gas Capacity 100 MMBtu/hr 50,000 cf/hr Stack Requirements Building Setback Requirement 1.5 x building height Vertical, unobstructed 100 feet from property line 1.5 x building height Vertical, unobstructed None 20
Air Permitting Developments
MDEQ Responding to Recent U.S. EPA Comments The use of Test Protocol The lack of Reference Test Methods Practical Enforceability of Permit Limits 22
Permit Language Revisions Recent changes and updates to Permit language: No longer using Test Protocol High level citation of reference test method Enhanced language for monitoring and recordkeeping 23
Removal of Test Protocol Change applied to: ROP Applications and Renewals New Installations or Modifications (NSR) Administrative changes/corrections opening a permit 24
Replacement of Test Protocol Averaging Time specified in place of Test Protocol 25
Permit Implications How is Averaging Time selected? Michigan Air Pollution Control Rule 205(1)(a): The time period shall be set in accordance with the applicable requirements 26
Permit Implications What are the applicable requirements? NAAQS or PSD Increment Air Toxics Health-Based Screening Level Opt-out Limit BACT Federal Standard (NSPS or NESHAP) What is my unit s operational variation? What does future compliance look like? 27
Reference Test Method Citation 28
Planning for Permit Changes Emission Estimates Compliance Methodology (Test Method) Operational Flexibility Discussion and Review Time Consider Permit Cleanup Options if available 29
Ozone Nonattainment Designations
Ozone (O 3 ) Formation 31
Air Quality Designations for Ozone October 1, 2015 Ozone NAAQS revised to 70 ppb (8-hour) EPA designations due October 1, 2017 June 6, 2017 Deadline extended one year due to insufficient information August 2, 2017 Extension withdrawn October 1, 2017 back on? 32
Air Quality Designations for Ozone MDEQ Designation Recommendations (October 2016) Recommended nonattainment: West Michigan: Allegan, Berrien, Muskegon Southeast Michigan: Livingston, Macomb, Monroe, Oakland, St. Clair, Washtenaw, and Wayne U.P.: Schoolcraft County (tentative) 120 day letter Final Implementation Rule 33
Designated Areas Not Attaining Ozone Standard Non-Attainment NSR Permitting Emission reduction Offsets LAER Alternative site analysis Sources in compliance Public involvement Challenges Standard very low Background impacts Transport Offsets 34
Dispersion Modeling
Policy and Procedure AQD-022 Effective March 3, 1015 Dispersion modeling Options to meet Stack Height Requirements Allowable emission rate of new or modified emission units Challenges Ongoing Reductions in emissions (net benefit) not recognized Qualitative option Short-term standards 36
Appendix W to 40 CFR Part 51 Guideline on Air Quality Models Revisions finalized October 20, 2016 Federal Register January 17, 2017 Effective date deferred to May 22, 2017 37
Secondary Formation Ozone: NO x and VOC Secondary PM 2.5 : NO x and SO 2 Two-tiered demonstration approach (New Appendix W) Tier 1: Use of relationships between emissions and ambient impacts (from existing models) Tier 2: Sophisticated case-specific Chemical Transport Modeling 38
Secondary Formation Challenges Tier 1: MERPs : Modeled Emission Rates for Precursors Guidance from EPA is still DRAFT Marquette, Montcalm, and Macomb EPA suggests use of SIL as Critical Air Quality Threshold Primary PM 2.5 may exceed the SIL without considering secondary formation of PM 2.5 Ozone precursor thresholds Approved Modeling Protocol for PSD Projects 39
Regulatory Horizon
Regulatory Horizon in Air Quality Modeling Guidance Ozone Nonattainment Designations CSAPR Clean Power Plan NSPS Subpart TTTT 41
Future Changes/Modifications Peakers not a Listed Source Category New Sources have 250 tpy (PSD) Aggregation Consideration Changes to Major Sources A2A Analysis for Applicability Actual-to-Projected Actual Past Actuals may be Low Future Projected Emissions based on Business Plan THANK YOU 42