Project Planning and Air Permit Issues

Project Planning and Project Planning and Air Permit IssuesAir Permit Issues

ARIPPA Monthly Meeting

July 27, 2010

John Egan & John SladeAll4 Inc.

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Agenda

Introduction Typical Projects Air Permit Requirements Current Air Happenings Project Planning & New Source

Review Questions

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Introduction About ALL4:

• Environmental consulting firm specializing in air quality – permitting, modeling, monitoring, climate change, etc.

• Began operation in 2002• Located in Kimberton, PA• Currently 30 employees• Pride ourselves on:

Long-term client relationships Commitment to employees

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Introduction – cont’d

About John Egan:• Principal and partner in ALL4• Began career w/DEP in 1974 in NCRO• Left DEP as Air Permit Chief in SERO in

1987• Former consultant with:

Roy F. Weston (1987 – 1998) EarthRes Group (1998 – 2002)

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Introduction – cont’d

About John Slade:• Senior Consultant with ALL4 since 2007• Began career w/DEP in 1971 in NCRO• Served as NCRO Compliance Chief until

1986• From 1986 to 1994 worked as a Section

Chief in Air Quality Central Office • Served as Division of Air Permits Chief in

DEP headquarters from 1994 through 2007

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Typical Projects

Improve efficiency Increase capacity Reduce downtime Use alternate fuels Replace equipment Add emission controls Others???

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Air Permit Requirements 2 basic types of air permits:

• Construction permits• Operating permits

New projects: • Need to consider air permitting• Emphasis is typically on construction

permits

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Air Permit Requirements – cont’d

Pennsylvania:• Construction permit = Plan Approval

Plan Approval required to:• Construct new source• Modify or reactivate existing source • Install air cleaning device

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Air Permit Requirements – cont’d

Federal and state major New Source Review (NSR) air permits required for major sources and major modifications:• Prevention of Significant Deterioration

(PSD) for areas in attainment with NAAQS

• Non-attainment New Source Review (NNSR) for NAAQS non-attainment areas

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Current Air Happenings What’s hot?

• PSD/NNSR – new interpretations/guidance

• NAAQS – new standards for NO2, SO2, PM2.5, Ozone

• GHG – reporting rule and PSD tailoring rule• CATR – new federal rule to replace CAIR• Utility Boiler MACT• Agency staffing issues

All can impact project planning…

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PSD/NNSR NSR Reform Rule – December 2002:

• Changed applicability test for existing units – actual to projected actual vs. actual to potential

• Demand growth exclusion for emissions the source could have accommodated

• Fugitive emissions and project aggregation rules both stayed

• Equipment Replacement Provision stayed indefinitely

• Project netting and debottlenecking rules proposed/dropped

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New NAAQS PM2.5

• 2006 standards: 35 ug/m3 24-hr avg. 15 ug/m3 annual avg.

• New non-attainment areas• New NSR permitting requirements

• Need to consider precursors – NOX, SO2

• New test methods - need to include condensables

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New NAAQS NO2

• New 1-hr standard – 100 ppb• Very low standard• Will impact project planning & cost• Modeling may be required

regardless of new projects• New non-attainment areas

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New NAAQS SO2

• New 1-hr standard – 75 ppb• New non-attainment areas• Very low standard• No grandfathering • Will impact project planning & cost• Modeling will be required regardless

of new projects

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New NAAQS Ozone

• Proposed new 8-hr standard – 0.060 to 0.070 ppm

• Due to be promulgated – 8/31/10

• Precursors NOX and VOC

• New non-attainment areas• Will impact project planning & cost

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Climate Change New GHG reporting rule in place Proposed PSD/Title V tailoring rule

• Step1 - Jan. through Jun. 2011 Projects subject to PSD for another pollutant

w/GHG ≥ 75,000 tpy CO2e require BACT Sources already subject to Title V

• Step 2 – July 2011 through June 2013 New sources ≥ 100,000 tpy and

modifications ≥ 75,000 tpy subject to PSD Sources ≥ 100,000 tpy CO2e subject to Title

V

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Clean Air Transport Rule

CATR draft proposal issued July 6, 2010

Intended to replace CAIR 31 states and D.C. subject to rule Regulates SO2 and NOX from EGUs Comments due 60 days after

publication in F.R.

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Utility Boiler MACT Coal and oil fired EGUs Considerable legal action ICR & testing via CAA 114 request –

2010 Use test data to develop MACT Floor Consent Decree

• Proposed MACT – March 16, 2011• Promulgated MACT – November 16, 2011

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Agency Staffing State air permit staffs are lean Much institutional knowledge loss in

last few years Rules are overly complicated and

reviewers are not experienced U.S. EPA is weighing in/second

guessing on many permit reviews Help as much as you can…

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Project Planning & NSR Understand/define your project:

•New equipment•Modified equipment•Affected equipment

U.S. EPA focus on production/throughput

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Project Planning & NSR – cont’d

Important questions to consider:• New fuels/raw materials?• Process or operational change?• Will emission rates change?• Is my emission data accurate?• Are we being too logical?

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Project Planning & NSR – cont’d

How to account for emissions changes:• Have to develop baseline emission rate

data for project• For new units must use potential to emit• For modified/affected units can use

future projected actual emissions• Consider demand growth exclusion

(carefully)• Remember short-term and long-term

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PSD vs. NNSR What’s the difference?

• Major source applicability thresholds• Major modification applicability thresholds• Varying applicability determination

procedures (e.g., aggregation, netting)• Control technology requirements (i.e.,

BACT vs. LAER)• Non-attainment offset requirements• Both are pre-construction permit

programs

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Permit Strategies Key steps for project planning:

• Developing an air permit strategy is a smart way to do business

• Air requirements need to be part of project planning from inception

• Strategy will impact project design, cost, and schedule

• More effort may be expended on strategy than on actual permitting

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Final Thoughts Consider air impacts from the beginning

of the project planning process Have a solid strategy ready when you

approach the agency Consider agency advice carefully Build time for air permitting into

schedule Plan for emission reductions Don’t get hung up on logic…

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Questions?

jegan@all4inc.com

All4 Inc.2393 Kimberton Road

P.O. Box 299Kimberton, PA 19442

610.933.5246 x14

www.all4inc.com