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.

1. How Do I Get an Air Permit
in California?
A Practical Guide for Facility
Managers
March 11, 2014
James A. Westbrook
jwestbrook@bluescapeinc.com
858-774-2009 mobile

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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!

8. 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

9. 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

10. 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)

11. 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

12. 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

13. 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.

14. 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

15. Air Permit Application
Steps in California

16. 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
!!

17. Air
Permi3ng
Process
-­‐
Summary

18. 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

19. 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

20. 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

21. 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

22. 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.

23. 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
…..

24. 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

25. 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).

26. 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?

27. 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)

28. 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!

29. Contact
Informa-on
James
Westbrook
BlueScape
Environmental
Mobile:
858-­‐774-­‐2009
jwestbrook@bluescapeinc.com
www.bluescapeinc.com
Connect
with
me
on
Linkedin!
The
webinar
presenta<on
will
be
posted
on
Slideshare
and
YouTube
(search
for
BlueScape)