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BlueScape - What's New in New Source Review 2018? How to get your Air Permits this year! Webinar 020818

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This webinar by James Westbrook, President of BlueScape Environmental, provides a 2018 update on the federal and state New Source Review (NSR) permitting process. NSR is required for companies to expand operations by installing new or modified equipment that will cause air emission increases. As we enter 2018, regulatory and economic signals indicate that many US businesses are likely to expand this year. The risks and opportunities with NSR air permitting programs are explored in the webinar.

The webinar provides updates you will need to know to complete the New Source Review air permitting process for your operations. The webinar includes: important developments in 2017 and 2018 under the Trump Administration and at the EPA, a status overview of the NSR permitting process, discussion on Prevention of Significant Deterioration (PSD) permitting, and tips to navigate the net emissions review process to stay out of PSD permitting; an update on New Source Performance Standards (NSPS) and Maximum Achievable Technology (MACT) standards; updates from recent air quality modeling workshops; new information on Best Available Control Technology (BACT) review; and a special update on NSR permitting in three (3) areas of the US: the South Coast AQMD in California, in Texas, and in Massachusetts.

James Westbrook can be reached at jwestbrook@bluescapeinc.com or 877-486-9257. Please contact us for any questions or support you need to work with the air agencies to design effective NSR permits for your operations.

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BlueScape - What's New in New Source Review 2018? How to get your Air Permits this year! Webinar 020818

  1. 1. What’s New in New Source Review for 2018? How to get your Air Permits this year! February 8, 2018 James A. Westbrook jwestbrook@bluescapeinc.com 877-486-9257
  2. 2. Webinar Topics •  Snapshot – 2018 US Economic & Regulatory Landscape •  Federal Air Regulations and Policies –  New Source Review (NSR) Update –  Strategies to avoid Major Source NSR –  NSPS and NESHAP Update •  State and Local NSR Permitting Updates –  California / South Coast AQMD –  Gulf Coast / Texas –  Northeast US / Massachusetts •  Summary
  3. 3. About BlueScape •  Experience with New Source Review air permitting since 1997 •  Power generation, industrial cogen, LNG facilities, utilities, refinery, landfills, oil & gas processing, chemical plants, manufacturing •  National Experience: California to the East Coast •  Solve tough air permitting issues and get the permit: -  Develop permitting strategy, rapidly obtain permits -  Reduce impacts on operational flexibility -  Excel in technical analysis, emission controls and modeling -  Develop workable monitoring, recordkeeping and reporting -  Established agency relationships, lead negotiations
  4. 4. Snapshot - 2018 US Economic & Regulatory Landscape
  5. 5. Regulations Going Down Economic Indicators Going Up A good time for US businesses to expand ?
  6. 6. US Economic Landscape •  Markets on a tear(?) going into 2018 •  Low unemployment rates •  Interest rates near historical lows, but rising •  Tighter housing supply •  New Tax Plan •  Infrastructure Spending Plan coming
  7. 7. US Regulatory Landscape •  Trump Executive Order 13771, 1/30/17 –  Reduce two regulations for every new one •  Trump Memo on Permit Streamlining, 1/24/17 –  Streamlining Permitting and Reducing Regulatory Burdens for Domestic Manufacturing (Dept. Commerce, 10/6/17)1 •  Action plans pending in 2018 –  Pruitt memo on NSR Preconstruction Permitting Requirements, 12/7/171 •  Trump Executive Order 13783, 3/28/17 –  Review the Clean Power Plan –  EPA proposal to repeal the Clean Power Plan, 10/16/17 –  Final Report on Review of Agency Actions that Potentially Burden the Safe, Efficient Development of Domestic Energy Resources”1 •  Comprehensive NSR Reform – Convene a Task Force •  NAAQS Reform •  Evaluate effect of EPA regulations on employment •  Sector-based outreach program 1See webinar panel to download
  8. 8. US Regulatory Landscape (con’t) •  EPA Status: –  Back-to-Basics Agenda •  3 E’s - Environment, Economy, and Engagement –  Workforce Reduction; 47% eligible to retire in 5 years –  Unfriendly to Climate Change regulations and policies –  Unfriendly to Environmental Protection? •  Review of the Clean Air Act and New Source Performance Standards – Electric Power, Oil & Gas •  2015 Ozone Standard to 70 ppb – Designations 11/6/17 •  Round 3 Final Designations for SO2 Standard, 12/31/17
  9. 9. Federal New Source Review Permitting Update
  10. 10. POLL: Does your Company Plan to Expand Operations in 2018? •  Yes, major federal NSR permit review expected •  Yes, state or local minor source NSR permit review expected •  Yes, but expect to be exempt from NSR permit review •  No, my company is not planning to expand •  Does not apply to my company
  11. 11. Major Source New Source Review (NSR) Concepts •  Major Stationary “Source” –  Greater than 250 TPY PTE of criteria pollutants (100 TPY in 28 source categories) •  Attainment Area NSR – Prevention of Significant Deterioration (PSD) Permits –  Best Available Control Technology and Air Quality Modeling •  Modification to an Existing Major Source –  Physical change or change in method of operation at a major stationary source •  New, modified or “affected” units –  With net change in emissions exceeding the PSD Significant Emission Rates (SERs) –  Routine maintenance, changes in operating hours, alternative use of materials or fuels excluded from change in method of operation (unless a change in enforceable limit) •  Nonattainment Area NSR
  12. 12. Calculating Net Emission Increases for NSR Review •  Baseline-to-Future Actual Emission Increases – a gift of NSR Reform •  Tests for baseline-to-future emission increases: –  Actual-to-Potential-to-Emit (PTE) Test – only new emission units –  Actual-to-Projected-Future Actual-Emissions Test – only existing units –  Hybrid Test – new and existing units •  Projected Actual Emissions (PAE) –  Must consider relevant business information, projected activity, filings with agencies –  Can exclude emissions that “could have been accommodated” •  “Reasonable Possibility” Rule - > 50% SER
  13. 13. Pruitt Memo – Actual-to-Projected-Actual Test for Emissions Increase1 •  Enforcement proceedings – DTE Energy •  If the source owner or operator performs proper pre-project NSR analysis, and, •  Follows applicable recordkeeping and notification requirements: •  Obligations of regulations are met •  EPA will not substitute judgment by second- guessing the owner •  EPA will focus enforcement efforts only on whether actual emissions exceed thresholds •  In states with PSD delegation, state NSR regulations are governing law 1 12/7/17, see webinar panel to download
  14. 14. Strategies to Avoid PSD Construction Permit Review •  Selection of Baseline period •  Factor in “Demand Growth” – Production that could have been accommodated •  Take Credit in netting calculations •  Incorporate enforceable future emission reductions into your “Project” •  Track actual emission to baseline, if >50% PSD SER – 5 yrs for modified unit; 10 years for new unit
  15. 15. Best Available Control Technology Updates •  EPA RACT/BACT/LAER Clearinghouse (RBLC) •  State Air Agency BACT Clearinghouses •  Updates to the OAQPS Cost Control Manual – 7th Edition – Cost Estimation – VOC Controls: Condensers and Incinerators – NOx Controls: SNCR and SCR – Further updates to 2022
  16. 16. Air Quality Modeling Updates •  Guideline on Air Quality Models (40 CFR Part 51 App W) update in Feb … uh … May 2017 •  Regional, State, and Local Modeler’s Workshop – Sep 2017 –  www.cleanairinfo.com/ regionalstatelocalmodelingworkshop/archive/2017/ agenda.htm •  Tiered approach for modeling NO2 •  Draft Modeled Emission Rates for Precursors (MERPs) Guidance Document •  Draft PM2.5/Ozone SILs Guidance •  12th Conference on Air Quality Models in 2018
  17. 17. NSPS and MACT Update
  18. 18. New Source Performance Standards Update •  Oil & Gas Industry NSPS –  VOC and Methane Emissions –  Finalized June 2016 –  Two-year stay starting June 2, 2017 –  Nov. 1, 2017 – Notice of data availability •  Municipal Solid Waste Landfill NSPS – 90-day stay in May 2017 – Expired, 2016 rules still in effect
  19. 19. NESHAPs – Change to the Major Source Once in Always In (OIAI) Policy 1 •  Issued by EPA Jan. 25, 2018 •  Rescinds a May 1995 policy memo •  An enforceable permit limit can be used to reclassify a major HAP source to an area source •  Such reclassified area source is no longer subject to MACT or other major source requirements •  Revisit your Title V permit, take an emission limit 1 See webinar panel to download
  20. 20. State and Local NSR Permitting Updates
  21. 21. California – South Coast AQMD •  Reg. XIII – Stringent New Source Review -  Nonattainment pollutants; little change last 10 years -  BACT threshold 1 lb/day; offsets at 4 TPY -  Amended Rule 1325 for Federal PM2.5 NSR, Nov. 2016 -  BACT Guidelines undergoing revision •  Air Toxics New Source Review – Rule 1401 (Sep. 2017) -  Permit Application Package “N” •  Air Toxics Initiative – Amended and Proposed Rules -  1407, 1430, 1420, 1426, 1466, 1469 -  CARB AB 617 Community Risk Reduction; Toxics BARCT •  RECLAIM Program Sunset to Command & Control -  Will put NOx or SOx RECLAIM facilities under the Reg. XIII program -  37 RECLAIM facilities will start transition in 2018 -  Several Reg. XI Prohibitory Rule updates for NOx •  Relationship with EPA?
  22. 22. Texas – TCEQ NSR Permitting •  Tiered Air Permitting Program – PBR, Standard, NSR •  NSR Review – Major or minor case-by-case, Qualified, RAP •  ePermits -  All Permit-by-Rule and Standard Permit registrations online as of 2/1/18 (some exceptions) hwww.tceq.texas.gov/permitting/air/training/advancedairpermittingseminar.html •  Expanding the Readily Available Permit (RAP) Program for NSR -  www.tceq.texas.gov/permitting/air/guidance/newsourcereview/ra- permitting.html •  Qualified Facilities Guidance in early 2018 (minor sources) •  Update to Modeling & Effects Review Applicability (MERA) – early 2018 -  www.tceq.texas.gov/assets/public/permitting/air/Guidance/NewSourceReview/ mera.pdf (draft, Sep 2017) •  BACT / Air Quality Modeling •  Relationship with EPA?
  23. 23. Massachusetts NSR •  Tiered Air Permitting Program - Environmental Results Program - Limited Plan Approval, Major/Nonmajor Comprehensive Approval •  Nonmajor comprehensive approval – adding a 30- day comment period in early 2018 •  Latest BACT Guidance; 2011 www.mass.gov/files/documents/2016/08/oo/bactguid.pdf www.mass.gov/files/documents/2017/11/22/bactaltc_0.pdf •  Modeling guidance www.mass.gov/files/documents/2016/08/tz/modguid.pdf •  ePlace Portal •  Relationship with EPA? Chat with the Central Region Air Chief
  24. 24. Summary •  Conditions favorable for businesses to expand in 2018 •  EPA to reduce federal NSR permitting burden and streamline, but … –  Not currently relax Clean Air Act protections –  Shift more responsibility to project owners and delegated states for permit review •  Expect continued EPA action to reduce NSR permitting burden in 2018 –  “No second-guessing paradigm” –  NSR Reform Task Force –  Stayed regulations, guidance memos, etc •  Expect business as usual at the State agency level –  State NSR programs can be more stringent, conflicts? –  EPA intent to engage state agencies more cooperatively
  25. 25. Contact Information / Questions James Westbrook BlueScape Environmental 877-486-9257 jwestbrook@bluescapeinc.com www.bluescapeinc.com The webinar presentation will be posted on Slideshare and YouTube (search for BlueScape)

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