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Regulatory Update
New Source Review Permitting Case Studies & Regulatory Updates
August 26, 2009ARIPPA Technical Symposium
trinityconsultants.com
Agenda PM2.5 NSR
Review of PM2.5 NAAQS and key elements of the Final PM2.5 NSR Rule
Update on Condensables Measurement
Three Case Studies in Permitting PM2.5 Projects
CAIR Update Proposed NO2 NAAQS Revision
© 2009, Trinity Consultants, All rights reserved.
PM2.5 Particles
“Primary” particles: Emitted directly into the air as a solid or
liquid particle Examples: elemental carbon from diesel
engines or fire activities, condensable organic particles from gasoline engines
“Secondary” particles: Form in the atmosphere as a result various
chemical reactions involving gas phase precursors
PM2.5 Precursors: SO2, NOx, VOCs and ammonia.
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PM2.5 NAAQS Annual average: 15 μg/m3
3-yr average of annual mean, averaged spatially
Remand issued by U.S. Court of Appeals in Feb. 2009
24-hour average: 35 μg/m3* 3-yr average of 98th percentile at
each monitor
* 24-Hours Standard was originally 65 ug/m3 (in 1997) – revised standard promulgated on 12/18/06.
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PM2.5 Nonattainment in Pennsylvania (1997 Standard)
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Region 3 Final 24-Hour PM2.5 Nonattainment Areas (2006 Standard)
Counties previously considered attainment: Lehigh Northampton
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http://www.epa.gov/pmdesignations/2006standards/final/region3.htm
PM2.5 Nonattainment Timeline
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Table in part from http://www.epa.gov/oar/particlepollution/naaqsrev2006.html
New Source Review 101 Federal pre-construction air permitting program
designed to: Ensure ambient air quality standards
continue to be met in “clean air” (attainment) areas Prevention of Significant Deterioration
(PSD) Ensure state-of-the-art pollution controls are
installed on new or existing facilities undergoing major modifications Nonattainment New Source Review
(NA NSR)
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PM2.5 Implementation Rule
Federal Register Notice May 16, 2008 (effective July 15, 2008)
Finalized NSR Provisions Applicability of NSR to PM2.5 Precursors Major Source Thresholds Significant Emission Rates Offset Ratios for PM2.5
Interpollutant Trading for Offsets Note: Rule did not address PSD modeling
requirements.© 2009, Trinity Consultants, All rights reserved.
PM2.5 Implementation Rule Treatment of PM2.5 Precursors
SO2 – “Mandatory Precursor” NOx – “Presumptive Precursor”
Unless a state can demonstrate that NOx is not a significant contributor to PM2.5 formation
VOCs and NH3 – “Candidate Precursors” Not precursors, unless a state demonstrates
that they are a significant contributor to PM2.5 formation
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Implementation Timing in PA PSD
PM2.5 Implementation went into effect July 15, 2008 since delegated program
Complete (“in the pipeline”) PSD permit applications can continue to rely on 1997 transitional guidance However, EPA has currently stayed this
provision (until 9/1/09 or longer). Recent EPA Orders necessitate case-by-case application of surrogate policy.
© 2009, Trinity Consultants, All rights reserved.
Implementation Timing in PA NA NSR
According to PA DEP, NA NSR SIP (Chapter 127) does not apply to PM2.5 nonattainment (follow Appendix S) NOx is not treated as precursor for time
being Provides for 10 year lookback in
determining past actual emissions for netting
Draft PM2.5 implementation proposal in review process
DEP does not have plans to add VOC or NH3 as PM2.5 precursor. Nor do they expect to rebut NOx as a PM2.5 precursor
© 2009, Trinity Consultants, All rights reserved.
Status of PM2.5 Rule Implementation in PA
Once Chapter 127 is updated for PM2.5.... 5 year baseline actual emissions period
(except with DEP approval) will apply (vs. 10 year baseline period in Federal rules)
De minimis increase calculation (10-yr contemporaneous period computation) in §127.203 may apply
© 2009, Trinity Consultants, All rights reserved.
What about Condensables? As per the 05/16/08 final rule, condensables
(CPM) need not be considered in setting emission limits and determining NSR applicability for PM, PM10, and PM2.5 until the earlier of
Date EPA comes up with an acceptable test method January 1, 2011
States have discretion/primacy on CPM inclusion (EPA Region 3 strongly encouraging states to include CPM limits during transition period)
PA DEP has issued permits with CPM limits
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Status of PM2.5 Test Methods March 25, 2009 EPA proposed new test
methods for filterable PM10 and PM2.5, as well as condensable PM (74 FR 12970) Proposed Method 201A
OTM 27 – Cascade Impactor (Gravimetric) Method Proposed Method 202
OTM 28 – Dry Impinger Method http://earth1.epa.gov/ttn/emc/proposed.html
Major concern with EPA’s proposal to shorten/abandon the original transition period (January 1, 2011)
© 2009, Trinity Consultants, All rights reserved.
Case Studies Case Study 1: Major New Source in
PM2.5 Attainment County Case Study 2: Major New Source in
PM2.5 Nonattainment County Case Study 3: Major Modification to
Existing Major Source in PM2.5 Nonattainment County
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Is the facility a new or existing major source? Attainment areas
100 tpy for PSD “listed” source categories 250 tpy for all other source categories
Nonattainment areas 100 tpy direct PM2.5 emissions for NA NSR
If new source is major (PTE>MST) PSD and/or NA NSR apply.
If new source is not major (PTE<MST) NSR does not apply.
If existing major source...
Major Source Thresholds
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Modifications to Existing Source Step 1 – Does project result in a project increase greater
than the significant emission rates (SERs)? Step 2 – Is net emissions change greater than the SERs? SERs triggering PSD for PM2.5 at existing major sources
Net change includes contemporaneous changes (5 years prior to start of construction and ending with start of operation)
According to EPA, if the PSD significance level is exceeded for a precursor, but not for direct PM2.5, then PSD review is triggered for the precursor but not for PM2.5.
© 2009, Trinity Consultants, All rights reserved.
TPY
PM2.5 10
SO2 40
VOCs, NOx 40**if state IDs as
precursor
Condensables PA DEP has not been requiring inclusion of
condensables into netting equations at this time (other states may ask for CPM emissions to be quantified).
Be prepared to quantify PM2.5 filterable and condensable (consider proactive testing)
Fugitive emissions For now, all sources must include fugitives in
netting Awaiting EPA reconsideration on whether fugitives
are to be excluded from non “listed” sources Ensure data is available to accurately quantify
fugitive emissions (i.e., vehicle mileage for fugitive road emissions)
Are Condensables and Fugitives Considered?
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Case Study Example 1 A new “listed” source is to be located in a
PM2.5 attainment area and has the potential to emit 300 tpy PM2.5, 300 tpy of NOx and 50 tpy of SO2. Would this project be subject to NA NSR and PSD?
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Case Study Example 1
Step 1: Is the planned source a new “major source”?
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Potential Emissions
(tpy)
Threshold (tpy)
Major?
PM2.5 300 100 Yes
SO2 50 100 No
NOx 300 100 Yes
Case Study Example 1 Applicability Determination:
PSD applies for both PM2.5 and NOx since the project will be a new major source.
PSD does not apply for SO2 since the project is not major for that pollutant
NA NSR does not apply to PM2.5 or SO2 since located in an attainment area.
Note that since the project is in PA, and thus the OTR, NOx would also be subject to NA NSR as an ozone precursor. NA NSR requirements discussed later.
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Best Available Control Technology Analysis
(BACT)
Class I Areas
Additional Impacts Analysis
Preconstruction Monitoring Requirement
Air Quality Analysis (NAAQS, PSD Increment)
Requirements Under PSD
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Background data For NAAQS analysis, background added to modeled
concentration; typically one value for the entire year States set background concentrations for modeling based on
local monitoring data or will require sites to install and operate onsite monitor
Actual “background monitor” concentrations are well over half the standard in many cases
Example, Centre County annual avg. PM2.5 for 2008 is 11.7 ug/m3 versus NAAQS of 15 ug/m3
Results in limited margin for expansions involving plant PM2.5 emissions in attainment areas
Secondary transformations EPA not requiring modeling at this time (models not
available) Fugitive sources (i.e., roads, piles, material transfers)
Modeling fugitives can be extremely time and resource consuming
Regional Inventory modeling
Concerns Regarding PSD Modeling
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Case Study Example 2 The same source as in Example 1 (potential to
emit 300 tpy PM2.5, 300 tpy of NOx and 50 tpy of SO2) is to be built in a nonattainment area for PM2.5.
Would this project be subject to NA NSR and PSD?
© 2009, Trinity Consultants, All rights reserved.
Case Study Example 2
Step 1: Is the planned source a new “major source”?
Same as before...
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Potential Emissions
(tpy)
Threshold (tpy)
Major?
PM2.5 300 100 Yes
SO2 50 100 No
NOx 300 100 Yes
Case Study Example 2 Applicability Determination: NA NSR applies for PM2.5 since the project is major in a
nonattainment area. NA NSR (and PSD) does not apply to SO2 since the source
is not major for SO2 (precursors are treated independently similar to ozone nonattainment).
PSD applies for NOx since the project is major and since NOx is not a PM2.5 precursor under Appendix S (current applicable NA NSR regulation).
Note that since the project is in the OTR, NOx would be subject to NA NSR as an ozone precursor.
Once PA adopts its PM2.5 NA NSR SIP revisions, NOx would also be regulated as PM2.5 precursor (offset locale would be most notable difference)
© 2009, Trinity Consultants, All rights reserved.
Lowest Achievable Emission Rate Lowest achievable emission rate of a similar source
anywhere in the country. Difficult to determine and potentially expensive to
meet LAER Alternative Sites Analysis Obtain Offsets
Generally, offsets must be obtained from same nonattainment area (unless study proves emissions contribute to another nonattainment area)
Offset availability can be substantial permitting hurdle.
Requirements Under NA NSR
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Nonattainment Areas: Interpollutant Trading EPA allows regional or statewide
interpollutant trading of PM2.5 and its precursors Permit-by-permit trading prohibited Suggested trading ratios – states may use
or develop their own: 200 tons NOX per ton of primary PM2.5, and vice
versa (Eastern US) 40 tons SO2 per ton of primary PM2.5, and vice
versa First example of interpollutant trading
(SO2 for PM2.5) approved in PA in May 2009
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Case Study Example 3 An existing major source of PM2.5, NOx and SOx in a PM2.5
nonattainment area proposes to modify one of its boilers. The largest amount of emissions (24-month average) reported in the past 10 year period and the new potential to emit for the boiler as are follows:
Is the project subject to PSD and/or NA NSR?
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PollutantHistorical
(tpy)
Potential Emission
s(tpy)
PM2.5 10 21
SO2 75 200
NOx 125 200
Case Study Example 3 Step 1: Is the project significant?
© 2009, Trinity Consultants, All rights reserved.
Pollutant
Historical(tpy)
Potential
Emissions
(tpy)
Project Increase (tpy)
SER (tpy)
Above SER/
Trigger Netting
?
PM2.5 10 21 11 10 Yes
SO2 75 200 125 40 Yes
NOx 125 200 75 40 Yes
Case Study Example 3 In the past year, the facility also
decommissioned a small emergency generator with actual emissions decreases of 2 tpy of PM2.5, 5 tpy of SO2 and 10 tpy of NOx. This is the only project in the past 5 years. Does the project trigger PSD and/or NA NSR requirements?
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Case Study Example 3 Step 2 – Is there a net emission increase? The decommissioning of the emergency generator falls
within the contemporaneous period (i.e., it occurred less than 5 years from the start of construction on the project) and as such it is a contemporaneous change.
© 2009, Trinity Consultants, All rights reserved.
Pollutant
Project Increase
(tpy)SER (tpy)
Trigger Netting
?
Contemp.Changes (tpy)
Net Emissions Change
(tpy)
Above SER?
PM2.5 11 10 Yes -2 9 No
SO2 125 40 Yes -5 120 Yes
NOx 75 40 Yes -10 65 Yes
Case Study Example 3 Applicability Determination:
Not subject to NA NSR for PM2.5 since the project is not a major modification in a nonattainment area (PSD does not apply either).
Since PA DEP is following Appendix S for PM2.5, de minimis netting under Chapter 127 is not required.
NA NSR (LAER, offsets) does apply to SO2 since the source is a major modification for SO2 and SO2 is a precursor. The project is also subject to PSD for SO2.
PSD applies for NOx since it is a significant emissions increase but NA NSR does not apply since NOx is not a PM2.5 precursor under Appendix S.
In PA, NOx would trigger NA NSR review as an ozone precursor.
© 2009, Trinity Consultants, All rights reserved.
PM2.5 Strategy – Thinking Ahead
Gain a better understanding of PM2.5 emissions, including condensables, for inventory purposes
Consider proactive stack testing (OTM 28) Ensure inventories are complete as they are relied upon in
netting analyses File ERC applications for PM2.5, SO2, and NOx (trading
is more stringent than OTR) Make sure that any PM2.5 limits are clearly specified
as excluding condensables or condensables are properly accounted for in the limitation
Stay tuned for other rulings that may impact state-level implementation of PM2.5 (CAIR, Revised NAAQS, etc.)
© 2009, Trinity Consultants, All rights reserved.
CAIR
Clean Air Interstate Rule (CAIR) January 2004 – EPA proposes the Interstate Air
Quality Rule (IAQR) May 12, 2005 – EPA issues CAIR
Covers 28 eastern states and the District of Columbia
Requires states to submit SIPs for significant SO2 and NOx reductions from electric generating units
April 28, 2006 – EPA publishes CAIR FIPs with federal requirements to be followed until replaced by an approved SIP 40 CFR 75 Acid Rain Program and NOx SIP Call
monitoring requirements
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CAIR Vacatur (1 of 2) July 11, 2008 – after numerous legal
challenges, the CAIR Rule vacated and remanded to EPA
“Because we find more than several fatal flaws in the rule and the Environmental Protection Agency (“EPA”) adopted the rule as one, integral action, we vacate the rule in its entirety and remand to EPA to promulgate a rule that is consistent with this opinion.”
December 23, 2008 – D.C. Court decides to remand, rather than vacate CAIR, thus leaving CAIR (as well as CAIR FIPs) in place until EPA issues a new rule to address the concerns in the July 2008 decision
EPA expects development of new rule could take approximately 2 years
© 2009, Trinity Consultants, All rights reserved.
CAIR Vacatur (2 of 2) May 6, 2009 – EPA proposes stay of CAIR
and CAIR FIP for the state of Minnesota MN argued that EPA overstated its emissions
and incorrectly included MN in the CAIR rule when it should not have
CAIR remains in place in its final form (no provisions were modified by the court) until EPA develops the replacement rule
The original CAIR deadlines are still in effect
EPA has converted NOx budget allowances into CAIR ozone season accounts (NOx budget accounts are “inactive”)
© 2009, Trinity Consultants, All rights reserved.
Revised NO2 NAAQS
Sources of NOx Pollution
Source: EPA Office of Air Quality Planning and Standards (http://www.epa.gov/air/nitrogenoxides/actions.html )
Current Annual Average Standard = 53 ppb (100 µg/m3)
Proposed revisions published in Federal Register on July 15, 2009
Proposed New 1-Hour Standard = 80 – 100 ppb EPA seeking comment on alternative levels of the
standard - from levels down to 65 ppb and up to 150 ppb
EPA seeking comment on an alternative approach to supplement the current annual standard with a community-wide 1-hr standard of 50 – 75 ppb
EPA is proposing to retain the current annual standard EPA is proposing no changes to the secondary standard
under this review Comments due by September 15, 2009
Public hearings in Arlington, VA and LA in August
Proposed Revisions to NO2 NAAQS
Sources with a modeled impact > ~5 µg/m3 will likely have trouble meeting the 1-hr standard as proposed.
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1-Hour NO2 Standard Implementation
January 2010 – EPA issues final standard January 2011 – States submit designation
recommendations to EPA January 2012 – EPA designates most areas
“unclassifiable” (because near-road monitors not in place)
January 2013 – New near-road monitors in place January 2015 – Next NO2 NAAQS review January 2017 – Non-attainment redesignations January 2022 – Attainment date
© 2009, Trinity Consultants, All rights reserved.
Questions?Ian Donaldson
([email protected])MD Office: 240-379-7490 x106
Wendy Merz([email protected])
PA Office: 610-777-0350