bluescape how do i get an air permit in california? webinar 3-11-14
DESCRIPTION
This webinar was performed by James Westbrook, President of BlueScape Environmental to provide you with practical training from the viewpoint of a facility manager or project developer. For projects in California, you will learn how to assess whether a permit is required for new or modified equipment, to review the feasibility of meeting permitting requirements and rule conditions, to complete the steps for writing an application to obtain a permit, and to negotiate permit conditions with the air district. James can be reached at 877-486-9257. For a video presentation, visit BlueScape's YouTube channel at https://www.youtube.com/watch?v=v3TkjQnDCaA. Also see www.bluescapeinc.com.TRANSCRIPT
How Do I Get an Air Permit in California?
A Practical Guide for Facility Managers
March 11, 2014 James A. Westbrook
[email protected] 858-774-2009 mobile
Topics • What situa-ons trigger air permi3ng requirements?
• Is an air permit required? • Air permi3ng steps in California
– Preliminary design review and permit feasibility – Applica-on: fees, forms, rule review, New Source Review, special technical studies, etc.
– Applica-on submiGal process – Nego-a-ng a final permit to construct – From permit to construct to permit to operate
About the Presenter • Nearly 30 years experience with air permi3ng in
California, more than 100 projects • Power plants, industrial cogen, LNG facili-es, building
materials, aerospace, refineries, oil & gas processing • Na-onal Experience – California, Midwest & Gulf • Solve tough air permi3ng issues and get the permit:
-‐ Develop permi3ng strategy, quickly obtain permits -‐ Reduce impacts on opera-onal flexibility -‐ Excel in technical analysis tools, emission controls and modeling -‐ Develop workable monitoring, recordkeeping and repor-ng -‐ Established agency rela-onships, lead nego-a-ons
California Air Districts • 15 Air Basins • 35 Air Districts • Similar permit process • There are differences
between each district: – Fees – Forms: general, equipment-‐
specific – Applicable rules and
requirements – Emission factors
diesel engine
new coa-ng process
modified paint booth
loading opera-on
boiler
portable sprayer
portable concrete plant
cooling tower
chemical storage
baghouse
hospital
data center
oil drilling
refinery heater
Title V facility
heat trea-ng
merger
third-‐party
con-guous proper-es
Business and Regulatory Changes Can Trigger Air Permit Needs
BUSINESS CHANGES: • Change, expand or consolidate opera-ons
– New equipment – Modified equipment
• Physical modifica-on • Change in method of opera-on
– Change in equipment descrip-on, permit condi-ons • Upgrade, retrofit or replace equipment
– New or modified equipment – Change in permit condi-ons (not physically modified) – Emission reduc-ons, and apply for offsets
• Change of ownership, mergers, acquisi-on • Rental units, exemp-ons from Portable Registra-on REGULATORY CHANGES: • Comply with new emission control requirements • New Federal rule applicability
– Title V, NESHAP, NSPS
Why is an Air Permit Required?
South Coast AQMD Rule 201: A person shall not build, erect, install, alter or replace any equipment or agricultural permit unit, the use of which may cause the issuance of air contaminants or the use of which may eliminate, reduce or control the issuance of air contaminants without first obtaining wri:en authoriza<on for such construc<on from the Execu<ve Officer. Therefore, equipment: -‐ Has to cause, reduce or control issuance of air contaminants -‐ Has to be within jurisdic-on of the air district, generally a
sta-onary source (not portable or mobile) -‐ Not otherwise exempted from permit requirements Consequence of non-‐compliance: viola3ons, fines, even an order to shutdown!
Permit Review Approach • Iden-fy all equipment affected by changes • Establish permit ownership • Know ways equipment will be used, and alterna-ves • Will air emissions occur or be controlled? • Facility (major/minor) and equipment permit status • Sta-onary, portable or mobile?
– Consider portable or mobile source regula-ons • Take ac-on:
-‐ Document negligible emissions, or, -‐ Exempt it, contact district or memo to file -‐ Register as portable equipment, if applicable -‐ Permit it as sta-onary new or modified equipment
Air Permit Exemp-ons?1 Equipment Ra-ng /
Throughput Business Use Exempt from Air Permit?
Diesel engine 100 hp, fixed Emergency backup
No, >50 hp needs a permit
Air compressor 75 hp, portable Construc-on Yes, if registered portable
Boiler 1.5 MMBtu/hr Process heat Yes, but must register
Storage Tank 500 gal capacity Diesel storage Yes
Storage Tank 10,000 gal capacity Gasoline storage
No
Baghouse 2,000 cfm Machining Yes, if low VOC materials
Spray Coa-ng 200 gallons/day Aerospace No 1South Coast AQMD Rule 219
Note: Source-‐specific rules may apply even if permit-‐exempt
New Source Review • Emission increases from new or modified equipment,
exceeding applicability thresholds • Modified – physical modifica-on or change in method of
opera-on – Throughput change without changing a permit limit does not count
• In California, generally for non-‐aGainment area pollutants – Ozone precursors (NOx, VOC), PM10, PM2.5
• Major source facili-es, special requirements • Unit or Project Based • NSR Requirements:
– Evalua-on under CEQA (project) – Review of impacts on nearby schools (project) – Best available control technology (unit or project) – Emission Offsets (unit or project) – Modeling for ambient air quality standards (project) – Health Risk Assessment screening for air toxics (unit or project)
Example Permit Situa-ons -‐ Test 1. Install 3 new boilers x 1.5 MMBtu/hr each 2. Rent backup portable diesel engine for 90
days, un-l electrical upgrades complete 3. Mobile gasoline fueling opera-on, 500 gal on a diesel pickup truck 4. 1,000 gallon closed hydrochloric acid tank,
vented during filling 5. Replace 10 boilers with a 4 MW gas
turbine, decrease in all emissions
Opera-ng w/o a Permit? • What if I find I am opera-ng without a permit? • Document why and how you learned about it – you will need
these details! • Consult an aGorney familiar with air districts about poten-al
legal ac-on against your company, and disclosure needs • File an applica-on with the air district as soon as possible
– Depending on aGorney recommenda-on, work out with air district – File forms and pay fees as soon as possible when known – Amnesty may be possible with higher fee payment – Air district might allow a Compliance Agreement
• Breakdown? – Has to meet breakdowns rule, unforeseen, no-ce required
• Variance to con-nue opera-ng? – You must show good cause, beyond control and not gran-ng
variance is taking of property
Example – Opera-ng without a Permit ABC Energy acquires a cogen facility with four gas engines from ZYX Energy, located at a large industrial host facility. ABC does a scheduled portable analyzer reading and finds that NOx emissions are exceeding the 9 ppm permit and rule limit. ABC consults past records from ZYX, and finds that records exist of similar exceedances that were never shown or reported to the air district. Each -me before a reading or source test, emissions were “dialed in” and new official readings taken. Upon inves-ga-on ABC finds that there is a problem with the air/fuel ra-o controller on the older three-‐way catalyst control system. A consultant anonymously calls the air district and learns that this is a common problem, with NOVs and heavy fines recently issued to several companies. ABC wants to keep opera<ng un<l a fix can be done, what should ABC Energy do next? ABC Energy knows that a fix means replacing the air/fuel ra-o controller. This equipment is part of the emissions control system, and named on the permit; this requires a permit applica-on. A breakdown cannot be claimed, as this is a known and ongoing condi-on that has not been reported. A variance allowing con-nued opera-on could be possible while a fix is made, but ABC should have a problem making the findings given the problem was not fixed by ZYX when first known. AGempts to cover up the problem could be seen as willing intent to violate the rules. In consulta-on with an aGorney, ABC’s best op-on is likely to file an applica-on to replace the air/fuel ra-o controller and perform a new source test as soon as possible. ABC Energy should nego-ate a work-‐out with air district staff to con-nue opera-ng, paying higher permit fees to mi-gate any excess emissions with more frequent portable analyzer readings. However, full shutdown may be required un-l the situa-on is fixed.
Recommenda-ons • Keep an accurate equipment inventory and log
books • Periodically audit facility equipment & permits, for
changes in rules or exemp-ons • Establish a management of change policy, to
evaluate changes for business ac-ons • Maintain a working rela-onship with agency staff • Hire experienced consultants and aGorneys
– Project permit design, avoiding opera-onal issues – Address issues before changes are made – Correc-ve ac-on, if out of compliance with permit and rule
requirements
Air Permit Application Steps in California
What are your Permi3ng Objec-ves? • Get the permit, move project development
forward – Quick, smooth, hassle-‐free process
• Save money on equipment and emission controls • Avoid mistakes in equipment selec-on • Minimize regulatory limita-ons and constraints • Maximize opera-onal flexibility • Get ahead of changing, stricter requirements • Allow for future plant expansion if needed An air permit is a cri3cal piece of business insurance !!
Air Permi3ng Process -‐ Summary
Air Permi3ng Process in California • Permit feasibility review • Pre-‐applica-on Mee-ng with Agency
– Hear what they want, tell ‘em what you want – Find out about and file for Expedited Permi3ng
• Complete Applica-on Package SubmiGal – Fees – Cover LeGer – Forms – general, equipment-‐specific – Technical Report – emissions, BACT, applicable rules – Air Quality Impact Analysis – Equipment Specifica-ons – Manufacturer Guarantees – Site plans and area maps
• Applica-on SubmiGal Mee-ng • Agency Completeness Determina-on Period • Agency Applica-on Review Period • Nego-ate Permit to Construct (or Authority to Construct) • Convert Permit to Construct to Permit to Operate
Planning & Feasibility Analysis • Plan early at the drawing board • Technical Issues review – “fatal-‐flaw” analysis • Data development – project design, vendors, geography • Issues List:
– Best Available Control Technology (BACT), by unit – Prohibitory Rules – exemp-ons, limits, monitoring, recordkeeping and
repor-ng requirements – Startup and Shutdown Emissions, Varying Condi-ons – Emission Offsets, by facility / project – Title V and PSD permi3ng, by facility / project – Air Quality Impacts by project
• Ambient Standards • Health Risk Assessment
– Poten-al to develop Emission Credits for sale • Community Support and Involvement • How feasible is this project, what must happen? • Develop a Permi3ng Strategy and Workplan
Applicability Thresholds • Emissions calcula-ons are used to determine applicability of the following: – New Source Review
• Best Available Control Technology (BACT) • Emission Offsets • Public No-ce • Health Risk Assessment (HRA) • Daily Emission Limits • Monitoring, Recordkeeping, Repor-ng
– Federal Emission Standards, Title V and PSD – Air Quality Impact Assessment (AQIA) – Poten-al Emission Reduc-on Credits to bank
Threshold differences among Districts:
District: BACT Title V (Major Source)
South Coast AQMD None; must use BACT (policy is 1.0 lb/day)
10 tons/yr NOx or VOC; 100 tons/yr SOx;
50 tons/yr CO/yr; and 70 tons/yr PM10 per facility
Bay Area AQMD 10 lb/day NOx, CO, POC, NPOC, SO2 or PM10
100 tons/yr NOx, SOx, Pb, VOC, CO, or PM10 per
facility
San Diego APCD 10 lb/day NOx, VOC, SOx or PM10
100 tons/yr NOx, CO, VOC, SOx or PM10 per facility
San Joaquin Valley APCD None; must use BACT
10 tons NOx or VOC/yr; 100 tons CO/yr;
and 70 tons/year PM10 or SOx per facility
Rule Review • Your rule review may include but is not limited to the
applicability determina-on of the following rules: – California Environmental Quality Act (CEQA) – New Source Review (NSR) – New Source Performance Standards (NSPS) – Na-onal Emission Standards for Hazardous Air Pollutants
(NESHAP) – Airborne Toxic Control Measure (ATCM) – Preven-on of Significant Deteriora-on (PSD)
• We suggest looking at prior permit evalua-ons from your air district to determine the basic content and structure of your rule review sec-on.
Air District Rule Structure (South Coast AQMD)
I. General Provision II. Permits III. Fees, Including Permi3ng Fees in Tables IV. Prohibi3ons …. IX. Standards of Performance for New Sta-onary Sources (Federal NSPS) X. Na-onal Emission Standards for Hazardous Air Pollutants (Federal
NESHAPS) XI. Source Specific Standards …. XIII. New Source Review XIV. Toxics and Other Non-‐Criteria Pollutants XVII. Preven-on of Significant Deteriora-on (Federal Major Source PSD) XX. Regional Clean Air Incen3ves Market (RECLAIM) ….. XX. Title V Permits (Federal Opera3ng Permits) XXI. Acid Rain Permit Program …..
Air Quality Impact Analysis • Na-onal and state ambient air quality standards – NO2, PM10, PM2.5, SO2, CO and VOC (ozone)
• Health Risk Assessment (HRA) for Air Toxics – Cancer risk: 1 in one million to 10 in one million cases
– Noncancer chronic or acute risk • Agency will run an independent analysis • Must show compliance to get the permit
Health Risk Modeling Requirements • Obtain modeling guidance from your Air District • Define your area as either urban or rural using your guidance • Define your source(s) as point, area, and/or volume sources • Source parameters: exhaust release height, stack diameter, exhaust
temperature, exhaust flow rate, etc. • Nearby Building Dimensions: height, width, length and base
eleva-on • Iden-fy sensi-ve receptors within your modeling area • Imported files:
– Meteorological Data: Obtained from your Air District – Terrain Data: Can be obtained using WebGIS – Base Map (Op-onal): can be purchased through an aerial or satellite imaging
company
• Use the results from your model to calculate the maximum excess cancer risk from your project sta-onary source(s).
Permit Review and Nego-a-on • Carefully review and meet with the agency
– Much can be nego-ated to allow flexibility
• Public Review and Comment period, if applicable – add 30-‐45 days
• Final permit issuance for construc-on • 1-‐2 years to complete project construc-on • Do I need the ATC permit before I can start any construc-on?
Permit Opera-ons – from ATC/PTC to PTO
• Start opera-ons and show compliance – With the permit and applicable rules and regula-ons
• Monitoring, recordkeeping, and repor-ng procedures – in place, track, track!
• No-fica-ons and protocols to agency • Emissions source tes-ng • Agency ini-al inspec-on – show all permit condi-ons are met
• Upon compliance, permit to operate (PTO)
Summary -‐ Air Permi3ng • Establish a permit management program
– Inventory equipment, track changes, record determina-ons
• Understand the air permi3ng steps • Get the right resources to help you through challenging parts of air permi3ng: – Designing a project to meet your objec-ves – Technical studies, emissions, BACT, modeling – Nego-a-ng permit condi-ons with the agency
• If you need it, go get the Air Permit!
Contact Informa-on
James Westbrook BlueScape Environmental Mobile: 858-‐774-‐2009
[email protected] www.bluescapeinc.com
Connect with me on Linkedin!
The webinar presenta<on will be posted on Slideshare and YouTube (search for BlueScape)