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Implications of Proposed Ozone Standards in Southeast Missouri (SEM) SMRPC Meeting, Perryville, MO April 24, 2015 Joletta Golik

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Page 1: Implications of Proposed Ozone Standards in Southeast Missouri (SEM) SMRPC Meeting, Perryville, MO April 24, 2015 Joletta Golik

Implications of Proposed Ozone Standards in Southeast Missouri

(SEM)SMRPC Meeting, Perryville, MO

April 24, 2015

Joletta Golik

Page 2: Implications of Proposed Ozone Standards in Southeast Missouri (SEM) SMRPC Meeting, Perryville, MO April 24, 2015 Joletta Golik

Overview

˃ Proposed O3 NAAQS

˃ Implication of Proposed O3 NAAQS˃ Nonattainment Permitting

Page 3: Implications of Proposed Ozone Standards in Southeast Missouri (SEM) SMRPC Meeting, Perryville, MO April 24, 2015 Joletta Golik

Proposed Ozone NAAQS

Page 4: Implications of Proposed Ozone Standards in Southeast Missouri (SEM) SMRPC Meeting, Perryville, MO April 24, 2015 Joletta Golik

EPA’s Proposed November 25, 2014 Rule˃ Propose to lower the primary and secondary

NAAQS to within the range of 65 to 70 ppb˃ Add an Appendix U to 40 CFR Part 50 detailing

data selection, handling, and reporting requirements for ozone NAAQS – For MDNR

˃ Revise ambient monitoring requirements for ozone monitoring

˃ Add a grandfathering provision to PSD permitting program exempting pending permits from the revised ozone NAAQS when they are fully promulgated

Page 5: Implications of Proposed Ozone Standards in Southeast Missouri (SEM) SMRPC Meeting, Perryville, MO April 24, 2015 Joletta Golik

Proposed Revisions to Ozone NAAQS

˃ Proposed grandfathering provision for pending PSD permits˃ Timing is critical here˃ More

˃ Change the Air Quality Index so that the primary NAAQS equals 100 on the index

Page 6: Implications of Proposed Ozone Standards in Southeast Missouri (SEM) SMRPC Meeting, Perryville, MO April 24, 2015 Joletta Golik

Proposed O3 NAAQS SEM Attainment Status

˃ Based on 2012-2014 monitoring data, counties in southeast Missouri maybe designated as nonattainment areas

˃ Nonattainment classification depends on final O3 standards Marginal Moderate

Page 7: Implications of Proposed Ozone Standards in Southeast Missouri (SEM) SMRPC Meeting, Perryville, MO April 24, 2015 Joletta Golik

What are the Implications of an Area Being Declared Nonattainment?

Page 8: Implications of Proposed Ozone Standards in Southeast Missouri (SEM) SMRPC Meeting, Perryville, MO April 24, 2015 Joletta Golik

Definition of Major Source˃ The definition of a “major stationary source”

changes depending on the classification of the nonattainment area – in the case of the example provided for an ozone nonattainment area 100 tpy – marginal or moderate nonattainment for

ozone 50 tpy – serious nonattainment for ozone 25 tpy – severe nonattainment for ozone 10 tpy – extreme nonattainment for ozone Classification dependent on the level of the monitored

design value of the area over the standard “major stationary source” applies to both New Source

Review (NSR) and Title V connotations

http://www.epa.gov/oaqps001/greenbk/define.html

Page 9: Implications of Proposed Ozone Standards in Southeast Missouri (SEM) SMRPC Meeting, Perryville, MO April 24, 2015 Joletta Golik

Key Requirements

1. Lowest Achievable Emission Rate (LAER)

2. Obtain emissions offsets

3. Alternatives Analysis Sites, sizes, production

processes, and environmental control techniques

4. All major sources in state must be in compliance with all applicable emission limitations and standards

PSD NA-NSR*1. Control Device Review

(BACT)2. Air Quality Review

NAAQS analysis PSD increment analysis

4. Class I Areas5. Additional Impacts

Analysis Growth Visibility Soils, Vegetation,

Animals

* Federal NA-NSR program is presented. State NA-NSR programs are established in state SIPs and may contain major differences. It is important to review state NA-NSR program!

Page 10: Implications of Proposed Ozone Standards in Southeast Missouri (SEM) SMRPC Meeting, Perryville, MO April 24, 2015 Joletta Golik

The Takeaways!

˃ Nonattainment Designation More stringent state regulations likely for major sources NSR/Title V Major source threshold lower in

nonattainment areas Nonattainment New Source Review permitting can be

challenging Nonattainment designations tend to impact industrial

growth in the designated nonattainment area ♦ A new source wishing to construct a facility within a nonattainment

area with a potential to emit of 80 tpy of NOX and 70 tpy of VOC would be required to undergo nonattainment NSR for NOX and VOC. Outside of this nonattainment area, the site would be a true minor source of emissions.

Page 11: Implications of Proposed Ozone Standards in Southeast Missouri (SEM) SMRPC Meeting, Perryville, MO April 24, 2015 Joletta Golik

Implications of Proposed Ozone NAAQS

Page 12: Implications of Proposed Ozone Standards in Southeast Missouri (SEM) SMRPC Meeting, Perryville, MO April 24, 2015 Joletta Golik

2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036

Attainment Year - All NAA

10/1/2037Attainment Year - Serious NAA10/1/2026

Attainment Year - Moderate NAA10/1/2023

Attainment Plans10/1/2020

Attainment Year - Marginal NAA10/1/2020

SIP Infrastructure Setup10/1/2018

EPA Finalize Area Designations10/1/2017

State and Tribe Recommendation for Area Designations10/1/2016

Final NAAQS Rule10/1/2015

Proposed Rule11/25/2014

Non Attainment New Source Review

PSD – Grandfathered or Complicated

PSD – 2008 NAAQS

Proposed Rule Timeline

Page 13: Implications of Proposed Ozone Standards in Southeast Missouri (SEM) SMRPC Meeting, Perryville, MO April 24, 2015 Joletta Golik

PSD Review before October 2015

˃ Required when Project VOC emissions > 100 tpy

And\Or Project NOX emissions > 100 tpy

˃ Quantitative Demonstration˃ Qualitative Demonstration

Page 14: Implications of Proposed Ozone Standards in Southeast Missouri (SEM) SMRPC Meeting, Perryville, MO April 24, 2015 Joletta Golik

PSD Review after October 2015 before October 2017 (1 of 2)

˃ PSD Grandfathering - PSD permit application “in the pipeline” &

“meeting certain criteria” would be only required to consider its impact on 2008 NAAQS

No clear “criteria” provided by EPA, instead seeking public comments on appropriate criteria for grandfathering

˃ Till then Qualitative Analysis Quantitative Analysis

Page 15: Implications of Proposed Ozone Standards in Southeast Missouri (SEM) SMRPC Meeting, Perryville, MO April 24, 2015 Joletta Golik

PSD Review after October 2015 before October 2017 (2 of 2)

˃ Main Purpose of the Analysis To demonstrate net improvement

increase in the overall air quality in the area

Analysis of project’s potential impact on the overall air quality in the area

Comparison of project impact to screening thresholds\ de-minimis values

Page 16: Implications of Proposed Ozone Standards in Southeast Missouri (SEM) SMRPC Meeting, Perryville, MO April 24, 2015 Joletta Golik

Non Attainment New Source Review after October 2017

˃ No Ozone Impact Analysis required˃ Must procure\make available

emission offsets for precursor emissions (VOC & NOX) to improve air quality

˃ May have to show improvement in air quality using quantitative assessment

Page 17: Implications of Proposed Ozone Standards in Southeast Missouri (SEM) SMRPC Meeting, Perryville, MO April 24, 2015 Joletta Golik

Other Nonattainment Area Implications (1 of 2)˃ Nonattainment New Source Review (NANSR)

Permitting Applicable to new major sources or major modifications

in nonattainment areas Functionally similar to PSD permitting in some aspects.

However, more challenging requirements including but not limited to;♦ LAER♦ Emissions Offsets

Unlike PSD, NNSR is evaluated solely on a pollutant-by-pollutant basis for source classification and review of modifications♦ Major for one regulated NSR pollutant does not make a source

major for all♦ Exceeding major source threshold (MST) does not reduce threshold

for other pollutants to Significant Emission Rate (SER)http://www.epa.gov/nsr/naa.html

Page 18: Implications of Proposed Ozone Standards in Southeast Missouri (SEM) SMRPC Meeting, Perryville, MO April 24, 2015 Joletta Golik

Other Nonattainment Area Implications (2 of 2)˃ Nonattainment New Source Review (NANSR)

Permitting LAER – Lowest Achievable Emission Rate

♦ The most stringent emission limitation contained in the implementation plan of any State for such class or category of source; or

♦ The most stringent emission limitation achieved in practice by such class or category of source.

♦ LAER is not a technology but an emission rate that can be achieved by any/all of add-on control technology, process changes or changes in raw materials or it can be a work practice

Emission Offsets♦ “Obtained” (through purchase!) from existing sources located within the

same nonattainment area region which must offset the emissions increase from the new or modified source and provided a net air quality benefit.

♦ Offsets obtained from Emission Reduction Credits (ERCs). Credits, in tpy, obtained at an offset ratio (i.e. 1.3 to 1) to provide a net air quality benefit.

http://www.epa.gov/nsr/naa.html

Page 19: Implications of Proposed Ozone Standards in Southeast Missouri (SEM) SMRPC Meeting, Perryville, MO April 24, 2015 Joletta Golik

Lowest Achievable Emission Rate (LAER)˃ No allowance for economic analysis˃ Costs associated with installing and operating the

controls for LAER can be significant “without consideration of cost”

˃ Might require additional monitoring requirements “Continuous Emissions Monitors (CEMS)” Combustion temperature, pressure drop, etc

˃ These devices can have excessive repair and maintenance (due to excessive plugging and corrosion)

˃ Analyze and submit quarterly data quality reports˃ Increased operational cost to demonstrate

compliance

Page 20: Implications of Proposed Ozone Standards in Southeast Missouri (SEM) SMRPC Meeting, Perryville, MO April 24, 2015 Joletta Golik

Example LAER Determinations˃ Source

http://cfpub.epa.gov/RBLC/

Source Pollutant LAER ControlHeaters/Boilers NOX Ultra Low-NOx Burner

Gas Turbine NOX Selective Catalytic ReductionPaint Spray Booth VOC Carbon Adsorber

Tanks VOC Proper design and operation of tanks (0.76 lbs/hr)

Diesel Engines NOX

Design and limiting non-emergency operations to only

100 hr/yr each.

Page 21: Implications of Proposed Ozone Standards in Southeast Missouri (SEM) SMRPC Meeting, Perryville, MO April 24, 2015 Joletta Golik

Emission Offsets

˃ These are emission reduction credits

˃ A facility in serious NAA for O3 with a PTE of VOC for 50 tpy may be required to obtain 60 tpy of VOC emission reduction credits (60/50 = 1.2)

Nonattainment Classification

Major Source Threshold (tons/year)

Offset Ratio

Marginal 100 1.1 - 1Moderate 100 1.15 - 1

Serious 50 1.2 - 1Severe 25 1.3 - 1

Extreme 10 1.5 - 1

Page 22: Implications of Proposed Ozone Standards in Southeast Missouri (SEM) SMRPC Meeting, Perryville, MO April 24, 2015 Joletta Golik

Emission Reduction Credits

˃ Emission reduction credits (ERCs) must be: Real Permanent Quantifiable Enforceable Surplus

˃ Emission reduction credits must have occurred within ten years of application for the proposed project

˃ From the same nonattainment areas (unless otherwise approved)

˃ Generally the same pollutant credits are valid (unless a precursor or the SIP allows for inter-pollutant offsets

Page 23: Implications of Proposed Ozone Standards in Southeast Missouri (SEM) SMRPC Meeting, Perryville, MO April 24, 2015 Joletta Golik

Impact on Title V Permitting˃ Previous minor sources could

become major Title V sources depending on designation

˃ Title V facilities in NAA require Additional compliance assurance

and periodic monitoring Source testing, monitoring,

recordkeeping and reporting˃ Understanding applicable

emission standards, operation practices, monitoring/testing, recordkeeping and reporting requirements

˃ Develop a system for tracking and reporting compliance

Nonattainment Classification

Major Source

Threshold for NOX

(tpy)

Major Source

Threshold for VOC

(tpy)

Marginal 100 100Moderate 100 100

Serious 50 50Severe 25 25

Extreme 10 10

Page 24: Implications of Proposed Ozone Standards in Southeast Missouri (SEM) SMRPC Meeting, Perryville, MO April 24, 2015 Joletta Golik

Impact on Title V facilities – Examples of CAM

Control Technology Pollutant Example CAM Strategy Frequency Recording

Method

Fabric Filter Baghouse PM Pressure drop

across the device Each batch Datalogger or logbook

Flare CO Visual presence of flame

Twice per shift Logbook

Carbon Adsorption System VOCs Time since last

generation Continuous Strip chart

Page 25: Implications of Proposed Ozone Standards in Southeast Missouri (SEM) SMRPC Meeting, Perryville, MO April 24, 2015 Joletta Golik

Things To Do for Industry˃ Calculate current site wide PTE to see the impact

on any potential projects˃ Permitting Strategy

Apply for PSD permits as soon as possible Understand redesignation with regard to RACT, NSR

permitting and Title V permitting and begin to plan accordingly

˃ Reduce emissions of precursors for O3 (i.e., NOX and VOC)

˃ Understand ozone trends in your area˃ NAA Preparation – Quantitative net air quality

benefit analysis

Page 26: Implications of Proposed Ozone Standards in Southeast Missouri (SEM) SMRPC Meeting, Perryville, MO April 24, 2015 Joletta Golik

Potential Impacts˃ Business and economic business development concerns˃ Direct and indirect costs to both public and businesses˃ More stringent and expensive control equipment

Burners, boilers and heavy engines Painting, coating and solvent uses

˃ Vehicle inspection program˃ Reduced speed limits on highways and expressways˃ May impact energy costs from power plants due to

control devices installed on their end˃ A public education campaign about ozone˃ Cost of establishing SIP˃ Cost of Transport Conformity

Page 27: Implications of Proposed Ozone Standards in Southeast Missouri (SEM) SMRPC Meeting, Perryville, MO April 24, 2015 Joletta Golik

Things To Do for Community to Reduce O3 Emissions in Summer

˃ Keep vehicle tires properly inflated as under inflated tires increase gasoline consumption

˃ Carpooling, public transportation, bike or walk

˃ No overfilling of gasoline by stopping at first click when filling up gas tanks

˃ Not use gas-powered lawn mowers on hot, sunny days

˃ Conserve energy by turning off lights and appliances when not in use

http://blogs.mo.gov/env/2011/08/02/help-fight-ozone-this-summer/

Page 28: Implications of Proposed Ozone Standards in Southeast Missouri (SEM) SMRPC Meeting, Perryville, MO April 24, 2015 Joletta Golik

Questions?

Joletta [email protected]

Phone: 636-530-4600