EPA Tailoring Rule Permit Strategies 07/29/10

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Information about EPA Tailoring Rule Permit Strategies 07/29/10

Published on June 2, 2011

Author: BlueScape



EPA Tailoring Rule Permit Strategies James A. Westbrook July 29, 2010

GHG Tailoring Rule Permit Strategies• Do anything now? YES!• PSD P Permitting i i Avoid PSD PSD permit i process it in PSD process planned• Titl V P Title Permitting itti Avoid Title V Can’t avoid - understand requirements

PSD Permitting Summary• New Source Review permitting program• Attainment Areas• Major Stationary Sources• Dispersion modeling and BACT requirements• NSR Reform, more flexibility• New ambient standards, 1-hour NO2, PM2.5 permitting

PSD Thresholds• Not currently a PSD Major Stationary Source New or modified stationary source Criteria pollutants only - 250 tons/year, 100 tons/year for specific categories GHG only – 75,000 ton/year increase if criteria p y y pollutant triggers PSD (by 1/2/11), 100,000 / 75,000 tons/year (by 7/1/11)• PSD Major Stationary Sources New or modified units Significant emissions i Si ifi t i i increase GHG with criteria pollutants – 75,000 tons/year increase if criteria pollutant emissions significant (by 1/2/11), 75,000 tons/year increase GHG alone (by 7/1/11) t / i l (b

How to Deal with PSD and GHG?• PSD for criteria pollutant or GHG? PSD for criteria pollutants pulls in GHG 1/2/11 GHG alone can go into PSD 7/1/11• Biggest issues Delays, uncertainty, BACT expense D l i• Options: Avoid PSD for criteria pollutants or just GHG (GHG below pollutants, 75,000 tons/year, but 50,000 tons/year better) Can’t avoid PSD o PSD permit in process, time i running out quick! it i ti is i t i k! o PSD process planned, put GHG in, carefully plan equipment purchases

Title V Summary• Operating Permit Program• Not to be confused with a PSD major source• New Title V facilities, major sources: 100 tons/year criteria pollutant threshold Lower criteria pollutants thresholds in serious to extreme nonattainment areas GHG, current Title V – applicable 1/2/11 GHG, new Title V facilities, 100,000 tons/year by 7/1/11• Title V application process New facilities, 6 months from starting operation facilities Existing facilities, submit Title V forms with new units, amendments

How to Deal with Title V and GHG?• Trigger dates depend on status • Facilities never subject to Title V j • Existing Title V facilities• Biggest issues a l t of work, MRR consistency, monitoring, h dli lot f k i t it i handling deviation reporting• Options: Avoid Title V for criteria pollutants, or just GHG Can’t avoid Title V o Include GHG in new applications submitted now o GHG will need to be included in Title V amendments• Existing Title V – you (probably) have some time!

CASE STUDIES1) N New Bi Biomass Pl t Plant2) Existing Power Plant Upgrade

NEW BIOMASS PLANT • New source • 23 MWe 320 MMBtu/hr boiler MWe, • BACT for NOx and PM • Design D i emissions: i i NOx CO VOC PM SOx CO2e Emission Factor (lb/MMBtu): 0.2 0.1 0.05 0.01 0.002 95.9 Emissions (TPY): 280 140 70 14 3 296,308PSD Threshold (TPY): 250 250 250 250 250 75,000

POWER PLANT UPGRADE• Major PSD and Title V source currently• Replace three existing gas turbines: 150 MWe turbines, 450 MWe total Replace with 250 MWe units phased units, 750 MWe total in future• Modification - Emissions increases from 2YR baseline to future potential-to-emit• Application submitted in July 2010 pp y• BACT for NOx, VOC, CO and SOx• Application does not include GHG

Power Plant Upgrade • Design emissions: NOx CO VOC PM2.5 SOx CO2eCurrent GT Emission Factor (lb/MWh): 0.2 0.8 0.1 0.03 0.001 1400 Future GT Emission Factor (lb/MWh): 0 08 0.08 0.15 0 15 0.03 0 03 0.02 0 02 0.0008 0 0008 850 2-Yr Baseline (TPY): 270 1,080 135 41 1 1,890,000 Future PTE (TPY): 263 493 99 66 3 2,792,250 Emissions Increase (TPY): -7 -587 -36 25 2 902,250 PSD Threshold (TPY): 40 100 40 10 40 75,000

Summary• Develop a permit strategy now to deal with GHG in permits• PSD permitting Avoiding PSD may be your best option Current PSD wrap it up before 1/1/10 to avoid GHG BACT review i Need to do a PSD permit, plan for GHG emissions now in your application (ala Russell City Energy)• Title V permitting Avoid Title V if you can If no way to avoid, understand new requirements avoid• Stay on top of the changing New Source Review landscape

Contact with Questions James A. Westbrook BlueScape, Inc. 858-695-9200 x201 or mobile

About BlueScape• National NSR and PSD experience Experiences with PSD, major manufacturing facilities and refineries Nonattainment NSR for power plants PSD avoidance strategies• AERMOD and CALPUFF dispersion modeling for PSD permit applications• Title V permit applications• Strategic Permit Planning and Execution to move business forward See for more information.

Quick PollWHICH ONE APPLIES?Q1) Currently in a PSD p ) y permit p process?Q2) Need to start a PSD permit process in the next year?Q3) Plan to stay out of PSD?

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