Project Planning and Air Permit Issues

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Project Planning and Air Permit Issues

  1. 1. Project Planning and Air Permit Issues ARIPPA Monthly Meeting July 27, 2010 John Egan & John Slade All4 Inc.
  2. 2. Agenda <ul><li>Introduction </li></ul><ul><li>Typical Projects </li></ul><ul><li>Air Permit Requirements </li></ul><ul><li>Current Air Happenings </li></ul><ul><li>Project Planning & New Source Review </li></ul><ul><li>Questions </li></ul>
  3. 3. Introduction <ul><li>About ALL4: </li></ul><ul><ul><li>Environmental consulting firm specializing in air quality – permitting, modeling, monitoring, climate change, etc. </li></ul></ul><ul><ul><li>Began operation in 2002 </li></ul></ul><ul><ul><li>Located in Kimberton, PA </li></ul></ul><ul><ul><li>Currently 30 employees </li></ul></ul><ul><ul><li>Pride ourselves on: </li></ul></ul><ul><ul><ul><li>Long-term client relationships </li></ul></ul></ul><ul><ul><ul><li>Commitment to employees </li></ul></ul></ul>
  4. 4. Introduction – cont’d <ul><li>About John Egan: </li></ul><ul><ul><li>Principal and partner in ALL4 </li></ul></ul><ul><ul><li>Began career w/DEP in 1974 in NCRO </li></ul></ul><ul><ul><li>Left DEP as Air Permit Chief in SERO in 1987 </li></ul></ul><ul><ul><li>Former consultant with: </li></ul></ul><ul><ul><ul><li>Roy F. Weston (1987 – 1998) </li></ul></ul></ul><ul><ul><ul><li>EarthRes Group (1998 – 2002) </li></ul></ul></ul>
  5. 5. Introduction – cont’d <ul><li>About John Slade: </li></ul><ul><ul><li>Senior Consultant with ALL4 since 2007 </li></ul></ul><ul><ul><li>Began career w/DEP in 1971 in NCRO </li></ul></ul><ul><ul><li>Served as NCRO Compliance Chief until 1986 </li></ul></ul><ul><ul><li>From 1986 to 1994 worked as a Section Chief in Air Quality Central Office </li></ul></ul><ul><ul><li>Served as Division of Air Permits Chief in DEP headquarters from 1994 through 2007 </li></ul></ul>
  6. 6. Typical Projects <ul><li>Improve efficiency </li></ul><ul><li>Increase capacity </li></ul><ul><li>Reduce downtime </li></ul><ul><li>Use alternate fuels </li></ul><ul><li>Replace equipment </li></ul><ul><li>Add emission controls </li></ul><ul><li>Others??? </li></ul>
  7. 7. Air Permit Requirements <ul><li>2 basic types of air permits: </li></ul><ul><ul><li>Construction permits </li></ul></ul><ul><ul><li>Operating permits </li></ul></ul><ul><li>New projects: </li></ul><ul><ul><li>Need to consider air permitting </li></ul></ul><ul><ul><li>Emphasis is typically on construction permits </li></ul></ul>
  8. 8. Air Permit Requirements – cont’d <ul><li>Pennsylvania: </li></ul><ul><ul><li>Construction permit = Plan Approval </li></ul></ul><ul><li>Plan Approval required to: </li></ul><ul><ul><li>Construct new source </li></ul></ul><ul><ul><li>Modify or reactivate existing source </li></ul></ul><ul><ul><li>Install air cleaning device </li></ul></ul>
  9. 9. Air Permit Requirements – cont’d <ul><li>Federal and state major New Source Review (NSR) air permits required for major sources and major modifications: </li></ul><ul><ul><li>Prevention of Significant Deterioration (PSD) for areas in attainment with NAAQS </li></ul></ul><ul><ul><li>Non-attainment New Source Review (NNSR) for NAAQS non-attainment areas </li></ul></ul>
  10. 10. Current Air Happenings <ul><li>What’s hot? </li></ul><ul><ul><li>PSD/NNSR – new interpretations/guidance </li></ul></ul><ul><ul><li>NAAQS – new standards for NO 2 , SO 2 , PM 2.5 , Ozone </li></ul></ul><ul><ul><li>GHG – reporting rule and PSD tailoring rule </li></ul></ul><ul><ul><li>CATR – new federal rule to replace CAIR </li></ul></ul><ul><ul><li>Utility Boiler MACT </li></ul></ul><ul><ul><li>Agency staffing issues </li></ul></ul><ul><li>All can impact project planning… </li></ul>
  11. 11. PSD/NNSR <ul><li>NSR Reform Rule – December 2002: </li></ul><ul><ul><li>Changed applicability test for existing units – actual to projected actual vs. actual to potential </li></ul></ul><ul><ul><li>Demand growth exclusion for emissions the source could have accommodated </li></ul></ul><ul><ul><li>Fugitive emissions and project aggregation rules both stayed </li></ul></ul><ul><ul><li>Equipment Replacement Provision stayed indefinitely </li></ul></ul><ul><ul><li>Project netting and debottlenecking rules proposed/dropped </li></ul></ul>
  12. 12. New NAAQS <ul><li>PM 2.5 </li></ul><ul><ul><li>2006 standards: </li></ul></ul><ul><ul><ul><li>35 ug/m 3 24-hr avg. </li></ul></ul></ul><ul><ul><ul><li>15 ug/m 3 annual avg. </li></ul></ul></ul><ul><ul><li>New non-attainment areas </li></ul></ul><ul><ul><li>New NSR permitting requirements </li></ul></ul><ul><ul><li>Need to consider precursors – NO X , SO 2 </li></ul></ul><ul><ul><li>New test methods - need to include condensables </li></ul></ul>
  13. 13. New NAAQS <ul><li>NO 2 </li></ul><ul><ul><li>New 1-hr standard – 100 ppb </li></ul></ul><ul><ul><li>Very low standard </li></ul></ul><ul><ul><li>Will impact project planning & cost </li></ul></ul><ul><ul><li>Modeling may be required regardless of new projects </li></ul></ul><ul><ul><li>New non-attainment areas </li></ul></ul>
  14. 14. New NAAQS <ul><li>SO 2 </li></ul><ul><ul><li>New 1-hr standard – 75 ppb </li></ul></ul><ul><ul><li>New non-attainment areas </li></ul></ul><ul><ul><li>Very low standard </li></ul></ul><ul><ul><li>No grandfathering </li></ul></ul><ul><ul><li>Will impact project planning & cost </li></ul></ul><ul><ul><li>Modeling will be required regardless of new projects </li></ul></ul>
  15. 15. New NAAQS <ul><li>Ozone </li></ul><ul><ul><li>Proposed new 8-hr standard – 0.060 to 0.070 ppm </li></ul></ul><ul><ul><li>Due to be promulgated – 8/31/10 </li></ul></ul><ul><ul><li>Precursors NO X and VOC </li></ul></ul><ul><ul><li>New non-attainment areas </li></ul></ul><ul><ul><li>Will impact project planning & cost </li></ul></ul>
  16. 16. Climate Change <ul><li>New GHG reporting rule in place </li></ul><ul><li>Proposed PSD/Title V tailoring rule </li></ul><ul><ul><li>Step1 - Jan. through Jun. 2011 </li></ul></ul><ul><ul><ul><li>Projects subject to PSD for another pollutant w/GHG ≥ 75,000 tpy CO 2 e require BACT </li></ul></ul></ul><ul><ul><ul><li>Sources already subject to Title V </li></ul></ul></ul><ul><ul><li>Step 2 – July 2011 through June 2013 </li></ul></ul><ul><ul><ul><li>New sources ≥ 100,000 tpy and modifications ≥ 75,000 tpy subject to PSD </li></ul></ul></ul><ul><ul><ul><li>Sources ≥ 100,000 tpy CO 2 e subject to Title V </li></ul></ul></ul>
  17. 17. Clean Air Transport Rule <ul><li>CATR draft proposal issued July 6, 2010 </li></ul><ul><li>Intended to replace CAIR </li></ul><ul><li>31 states and D.C. subject to rule </li></ul><ul><li>Regulates SO 2 and NO X from EGUs </li></ul><ul><li>Comments due 60 days after publication in F.R. </li></ul>
  18. 18. Utility Boiler MACT <ul><li>Coal and oil fired EGUs </li></ul><ul><li>Considerable legal action </li></ul><ul><li>ICR & testing via CAA 114 request – 2010 </li></ul><ul><li>Use test data to develop MACT Floor </li></ul><ul><li>Consent Decree </li></ul><ul><ul><li>Proposed MACT – March 16, 2011 </li></ul></ul><ul><ul><li>Promulgated MACT – November 16, 2011 </li></ul></ul>
  19. 19. Agency Staffing <ul><li>State air permit staffs are lean </li></ul><ul><li>Much institutional knowledge loss in last few years </li></ul><ul><li>Rules are overly complicated and reviewers are not experienced </li></ul><ul><li>U.S. EPA is weighing in/second guessing on many permit reviews </li></ul><ul><li>Help as much as you can… </li></ul>
  20. 20. Project Planning & NSR <ul><li>Understand/define your project: </li></ul><ul><ul><li>New equipment </li></ul></ul><ul><ul><li>Modified equipment </li></ul></ul><ul><ul><li>Affected equipment </li></ul></ul><ul><li>U.S. EPA focus on production/throughput </li></ul>
  21. 21. Project Planning & NSR – cont’d <ul><li>Important questions to consider: </li></ul><ul><ul><li>New fuels/raw materials? </li></ul></ul><ul><ul><li>Process or operational change? </li></ul></ul><ul><ul><li>Will emission rates change? </li></ul></ul><ul><ul><li>Is my emission data accurate? </li></ul></ul><ul><ul><li>Are we being too logical? </li></ul></ul>
  22. 22. Project Planning & NSR – cont’d <ul><li>How to account for emissions changes: </li></ul><ul><ul><li>Have to develop baseline emission rate data for project </li></ul></ul><ul><ul><li>For new units must use potential to emit </li></ul></ul><ul><ul><li>For modified/affected units can use future projected actual emissions </li></ul></ul><ul><ul><li>Consider demand growth exclusion (carefully) </li></ul></ul><ul><ul><li>Remember short-term and long-term </li></ul></ul>
  23. 23. PSD vs. NNSR <ul><li>What’s the difference? </li></ul><ul><ul><li>Major source applicability thresholds </li></ul></ul><ul><ul><li>Major modification applicability thresholds </li></ul></ul><ul><ul><li>Varying applicability determination procedures (e.g., aggregation, netting) </li></ul></ul><ul><ul><li>Control technology requirements (i.e., BACT vs. LAER) </li></ul></ul><ul><ul><li>Non-attainment offset requirements </li></ul></ul><ul><ul><li>Both are pre-construction permit programs </li></ul></ul>
  24. 24. Permit Strategies <ul><li>Key steps for project planning: </li></ul><ul><ul><li>Developing an air permit strategy is a smart way to do business </li></ul></ul><ul><ul><li>Air requirements need to be part of project planning from inception </li></ul></ul><ul><ul><li>Strategy will impact project design, cost, and schedule </li></ul></ul><ul><ul><li>More effort may be expended on strategy than on actual permitting </li></ul></ul>
  25. 25. Final Thoughts <ul><li>Consider air impacts from the beginning of the project planning process </li></ul><ul><li>Have a solid strategy ready when you approach the agency </li></ul><ul><li>Consider agency advice carefully </li></ul><ul><li>Build time for air permitting into schedule </li></ul><ul><li>Plan for emission reductions </li></ul><ul><li>Don’t get hung up on logic… </li></ul>
  26. 26. Questions? [email_address] All4 Inc. 2393 Kimberton Road P.O. Box 299 Kimberton, PA 19442 610.933.5246 x14 www.all4inc.com

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