Crash Course in PSD Permitting:
Key Concepts, Pitfalls, and Strategies
Midwest Environmental Compliance Conference
May 13,...
COMPANY HISTORY
• NAQS was established in 2003 in Lincoln, NE
• First clients were local municipal power plants
• 2005 - F...
ORGANIZATIONAL POSITION
• Our Vision: The preeminent leader in air quality, water
quality, risk management plans, and clim...
ORGANIZATIONAL POSITION
• Our Mission: Bridge the gap between industry and
regulators by engaging employees with undisputa...
SERVICES
• Permitting –
– Applications
– Strategies
– Draft Permits
– Permit Reviews
• Compliance Assistance
• Regulatory ...
SELECT CLIENTS
Partnering with a spectrum of clients
ranging from small municipalities to
Fortune 500 Companies
Cargill/Po...
New Source Review (NSR)
Key Concepts
New Source Review (NSR)
• New Source Review (NSR) is a preconstruction
permit program
– requires stationary sources of air...
New Source Review (NSR)
• What triggers NSR permitting?
– Construct a New “Major” stationary source
– Undertake a “Major M...
New Source Review (NSR)
• Definitions
–Major stationary source:
• One of 28 “listed” major source categories which emits,
...
New Source Review (NSR)
• Definitions
–Major modification:
• any physical change in or change in the method
of operation o...
PSD Permits
• Prevention of Significant Deterioration (PSD)
applies to new major sources or major
modifications at existin...
PSD Permits
• Requirements
– Installation of the Best Available Control
Technology (BACT)
– Air Quality NAAQS Modeling Ana...
Nonattainment NSR Permits
• For new major sources or major sources making a
major modification in a nonattainment area
• R...
Minor NSR Permits
• For projects at stationary sources that do not
require PSD or nonattainment NSR permits
• Minor NSR pe...
NSR Applicability
Physical or Operational
Change?
Proposed Project Emissions
Increase Significant?
Can Project Net Out of
...
STEP 1
Physical or Operational Change
• No definition in the rule
• Only a few exceptions in the rule
• Most useful and of...
Step 2
PSD Pollutant Tons per Year
PM10 15
SO2 40
NOx 40
VOC (Ozone) 40
CO 100
Lead 0.6
PM2.5 10
Attainment
Areas:
Signifi...
STEP 3
Netting
Can the project net out of NSR/PSD?
• Netting is the sum of all creditable,
contemporaneous increases and d...
Strategies
Strategies
• Avoid NSR/PSD Permitting
– Use an exemption
– Rely on netting calculations
– Take a limitation on the project...
Strategies
• Reasons to Avoid NSR/PSD Permitting
– Time Delays
• Modeling analysis
• Application preparation
• Issuance of...
Strategies
• Reasons to Avoid NSR/PSD Permitting
– Air Quality Monitoring (preconstruction) if your
current regulatory aut...
Strategies
• Reasons to Avoid NSR/PSD Permitting
– Impacts of Modeling Analysis
• Can change the project scope
• Proximity...
Strategies
• If Avoiding Major NSR Permitting, Beware of
Pitfalls
Pitfalls
Pitfalls
• The NSR Program is extremely complicated
– There are few exemptions
– The rule can be interpreted in new, more
...
Exemption Pitfalls
Pitfalls
• Using an Exemption to Avoid NSR Permitting
– Does not require performing complicated
calculations, but....
• De...
Pitfalls
• “Routine maintenance, repair, and
replacement” is one of the most common
exemptions
– What determines if a chan...
Pitfalls
– Nature – Will the project significantly enhance the
efficiency or capacity of the plant?
– Extent – Are there a...
Pitfalls
• Changes that could be considered a physical
or operational change and not “routine”
– Reducing downtime, changi...
Calculation Pitfalls
Pitfalls
• Using Netting Calculations to Avoid PSD
Permitting Must be Done Correctly
Pitfalls
• Define the Scope of the Project
– The project includes all activities that are
technically or economically depe...
Pitfalls
• Determine Project-Affected Emission Units
– Any new emission unit installed as part of the
project
– Any emissi...
Pitfalls
• When Establishing Baseline Actual Emissions
(BAE)
– Fugitive emissions must be included if the
emission unit is...
Pitfalls
• Establishing Baseline Actual Emissions (BAE)
– For existing units, not realizing
• Look-back period within 5 ye...
Pitfalls
• Establishing Projected Actual Emissions (PAE)
– Fugitive emissions must be included if the
emission unit is one...
Pitfalls
• Contemporaneous period is a moving target
since it is based on the date actual
construction begins
– Example: Y...
Pitfalls
• Facility must project post change actual annual
emissions for 5 years (10 years post change if
change increases...
Pitfalls and Consequences
NSR Violations
• Administrative penalties
– Up to $37,500 per day per violation up to $320,000
•...
Summary
Summary
• NSR/PSD Permitting is Very Complicated, Don’t
Be Afraid to Ask for Help!
• Work with a Firm that is Knowledgeabl...
Questions?
NAQS-Environmental Experts
Contact Piyush Srivastav at:
402-310-5321 (cell)
Piyush Srivastav
Piyush@naqs.com
402-489-1111 ...
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Srivastav, Piyush, NAQS Environmental Experts, Crash Course in PSD Permitting 2015 MECC KC

A presentation at the 2015 Midwest Environmental Compliance Conference, May 13-14, 2015, Overland Park, KS
Published on: Mar 3, 2016
Published in: Environment      
Source: www.slideshare.net


Transcripts - Srivastav, Piyush, NAQS Environmental Experts, Crash Course in PSD Permitting 2015 MECC KC

  • 1. Crash Course in PSD Permitting: Key Concepts, Pitfalls, and Strategies Midwest Environmental Compliance Conference May 13, 2015 Presented by Piyush Srivastav, President NAQS-Environmental Experts
  • 2. COMPANY HISTORY • NAQS was established in 2003 in Lincoln, NE • First clients were local municipal power plants • 2005 - First Fortune 500 Client • Emerged as a leader in air quality management consultancy services • By mid-2008, the majority of applications processed by the Nebraska Department of Environmental Quality (NDEQ) were submitted by NAQS • NAQS is growing to serve our expanding client base
  • 3. ORGANIZATIONAL POSITION • Our Vision: The preeminent leader in air quality, water quality, risk management plans, and climate change. • Our Purpose: Partner with clients to provide value added environmental solutions that ensure: – Regulatory Compliance – Increased Operational Flexibility – Successful Project Planning – Liability Identification, Reduction
  • 4. ORGANIZATIONAL POSITION • Our Mission: Bridge the gap between industry and regulators by engaging employees with undisputable expertise, excellent critical thinking abilities, and strong communication skills.
  • 5. SERVICES • Permitting – – Applications – Strategies – Draft Permits – Permit Reviews • Compliance Assistance • Regulatory Analysis • Emissions Inventories • Compliance Certifications • Deviation Reports • Stack Testing Assistance • Litigation Support • Training • Audits • Compliance Management • Executive Training • Risk Management Planning • GHG Inventories and Management • Strategic Project Planning • Dispersion Modeling
  • 6. SELECT CLIENTS Partnering with a spectrum of clients ranging from small municipalities to Fortune 500 Companies Cargill/Polyols ABENGOA BIOENERGY
  • 7. New Source Review (NSR) Key Concepts
  • 8. New Source Review (NSR) • New Source Review (NSR) is a preconstruction permit program – requires stationary sources of air pollution to get permits before construction can start • There are three types of NSR permitting 1. Prevention of Significant Deterioration (PSD) Permits 2. Nonattainment NSR (NANSR) Permits 3. Minor Source Permits
  • 9. New Source Review (NSR) • What triggers NSR permitting? – Construct a New “Major” stationary source – Undertake a “Major Modification” at an existing major stationary source
  • 10. New Source Review (NSR) • Definitions –Major stationary source: • One of 28 “listed” major source categories which emits, or has the potential to emit, 100 tons per year or more of any regulated NSR pollutant (including fugitive emissions) • Any stationary source (other than the listed 28) which emits, or has the potential to emit, 250 tons per year or more of a regulated NSR pollutant (excluding fugitive emissions)
  • 11. New Source Review (NSR) • Definitions –Major modification: • any physical change in or change in the method of operation of a major stationary source that would result in: – a significant emissions increase of a regulated NSR pollutant; and – a significant net emissions increase of that pollutant from the major stationary source
  • 12. PSD Permits • Prevention of Significant Deterioration (PSD) applies to new major sources or major modifications at existing sources for pollutants where the area the source is located is in attainment or unclassifiable with the National Ambient Air Quality Standards (NAAQS).
  • 13. PSD Permits • Requirements – Installation of the Best Available Control Technology (BACT) – Air Quality NAAQS Modeling Analysis – Air Quality Increment Analysis – Additional Impacts Analysis – Public Involvement
  • 14. Nonattainment NSR Permits • For new major sources or major sources making a major modification in a nonattainment area • Requirements – Installation of Lowest Achievable Emission Rate (LAER) – Emission Offsets (reduce emissions or buy credits) – Air Quality NAAQS Modeling Analysis – Air Quality Increment Analysis – Additional Impacts Analysis – Opportunity for Public Involvement
  • 15. Minor NSR Permits • For projects at stationary sources that do not require PSD or nonattainment NSR permits • Minor NSR permits often contain permit conditions to limit the sources emissions to avoid PSD or nonattainment NSR – Make sure the facility can live with the permit conditions
  • 16. NSR Applicability Physical or Operational Change? Proposed Project Emissions Increase Significant? Can Project Net Out of Major NSR? YES YES NO NO YES STEP 1 STEP 2 STEP 3 NO No Modification Project Not Major Project Not Major SUBJECT TO MAJOR NSR
  • 17. STEP 1 Physical or Operational Change • No definition in the rule • Only a few exceptions in the rule • Most useful and often used exceptions are: – Routine maintenance, repair and replacement – Use of alternate fuel or raw material, if capable of accommodating prior to 1/6/75 or allowed by PSD permit – Increasing operating hours or production rate (unless restricted by permit); cannot be the result of a physical or operational change
  • 18. Step 2 PSD Pollutant Tons per Year PM10 15 SO2 40 NOx 40 VOC (Ozone) 40 CO 100 Lead 0.6 PM2.5 10 Attainment Areas: Significant increases in PSD pollutants are specified in the rule Significant Increase
  • 19. STEP 3 Netting Can the project net out of NSR/PSD? • Netting is the sum of all creditable, contemporaneous increases and decreases at the source • If net emissions increase is not significant, the project is not major • If net emissions increase is significant, the project is major
  • 20. Strategies
  • 21. Strategies • Avoid NSR/PSD Permitting – Use an exemption – Rely on netting calculations – Take a limitation on the project, so that it is not significant • Obtain an NSR/PSD Permit
  • 22. Strategies • Reasons to Avoid NSR/PSD Permitting – Time Delays • Modeling analysis • Application preparation • Issuance of permit – Additional Expense • Application Preparation • BACT must be installed, if cost effective – “Cost-effectiveness” is a subjective term
  • 23. Strategies • Reasons to Avoid NSR/PSD Permitting – Air Quality Monitoring (preconstruction) if your current regulatory authority doesn’t allow waiver
  • 24. Strategies • Reasons to Avoid NSR/PSD Permitting – Impacts of Modeling Analysis • Can change the project scope • Proximity to Class I or Class II areas (Visibility Impacts) • Can be time consuming
  • 25. Strategies • If Avoiding Major NSR Permitting, Beware of Pitfalls
  • 26. Pitfalls
  • 27. Pitfalls • The NSR Program is extremely complicated – There are few exemptions – The rule can be interpreted in new, more restrictive ways and is sometimes applied retroactively – The significant increase thresholds are low and easy to exceed
  • 28. Exemption Pitfalls
  • 29. Pitfalls • Using an Exemption to Avoid NSR Permitting – Does not require performing complicated calculations, but.... • Determining whether or not the exemption applies can be tricky • New interpretations of exemptions can be applied retroactively
  • 30. Pitfalls • “Routine maintenance, repair, and replacement” is one of the most common exemptions – What determines if a change is routine? • The nature, extent, frequency, purpose, cost of work, etc. • There is no regulatory definition of “routine”
  • 31. Pitfalls – Nature – Will the project significantly enhance the efficiency or capacity of the plant? – Extent – Are there a number of major components being repaired/replaced? – Frequency – Are the components being repaired/replaced original? How often is this change made in their lifetimes? How often is the change made to similar components? Routine for industry? – Purpose – Will the project extend the life of the plant? – Cost – Is the fixed capital cost, plus maintenance and repair, greater than 20% of the replacement value?
  • 32. Pitfalls • Changes that could be considered a physical or operational change and not “routine” – Reducing downtime, changing catalysts, etc.
  • 33. Calculation Pitfalls
  • 34. Pitfalls • Using Netting Calculations to Avoid PSD Permitting Must be Done Correctly
  • 35. Pitfalls • Define the Scope of the Project – The project includes all activities that are technically or economically dependent on each other – All activities that are part of a single project must be evaluated together
  • 36. Pitfalls • Determine Project-Affected Emission Units – Any new emission unit installed as part of the project – Any emission unit modified as part of the project – Any emission unit that, due to the project, experiences: • An increase in production or feed rate, a change in fuel or raw material, etc.
  • 37. Pitfalls • When Establishing Baseline Actual Emissions (BAE) – Fugitive emissions must be included if the emission unit is one of the 28 listed source categories – For emission units affected by the project that have existed for less than two years, BAE = Potential to emit (PTE)
  • 38. Pitfalls • Establishing Baseline Actual Emissions (BAE) – For existing units, not realizing • Look-back period within 5 year period for electric utility steam generating units (unless another period more representative of normal operations) • Look-back period is unknown and a moving target • The BAE must be decreased because of non-compliant emissions or regulatory changes • For a given pollutant, the same baseline period must be used for all effected emission units – Different baseline period can be used for different pollutants
  • 39. Pitfalls • Establishing Projected Actual Emissions (PAE) – Fugitive emissions must be included if the emission unit is one of the 28 listed source categories – Emissions from startups, shutdowns, and malfunctions must be included
  • 40. Pitfalls • Contemporaneous period is a moving target since it is based on the date actual construction begins – Example: You have an emissions decrease that is four years old at the time the application is submitted. If it takes more than a year to issue the permit, that decrease can no longer be used
  • 41. Pitfalls • Facility must project post change actual annual emissions for 5 years (10 years post change if change increases unit’s PTE or capacity) • Overestimating demand growth emissions when making use of demand growth exclusion • Facility must maintain records of actual annual emissions for 5 or 10 years, and report to regulatory authority if projection is exceeded
  • 42. Pitfalls and Consequences NSR Violations • Administrative penalties – Up to $37,500 per day per violation up to $320,000 • Civil penalties – Up to $37,500 per day per violation for up to 5 years, or over $68 million dollars in total – Injunctive relief: retroactive PSD permit with current BACT • No statute of limitations • No “safe harbor”, even with State agency approval • Criminal penalties – Usually reserved for the most serious violations, those that are willful, or knowingly committed – Individual liability – A court conviction can result in fines or imprisonment
  • 43. Summary
  • 44. Summary • NSR/PSD Permitting is Very Complicated, Don’t Be Afraid to Ask for Help! • Work with a Firm that is Knowledgeable and Has Experience – focus on people • Evaluate the Project • Develop a Strategy • Be Aware of Pitfalls • Obtain or Avoid a Permit • Maintain Proper Documentation
  • 45. Questions?
  • 46. NAQS-Environmental Experts Contact Piyush Srivastav at: 402-310-5321 (cell) Piyush Srivastav Piyush@naqs.com 402-489-1111 (office) 402-310-5321 (cell)

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