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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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!

8. CASE STUDIES
1) N
New Bi
Biomass Pl t
Plant
2) Existing Power Plant Upgrade

9. 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 3 296,308
PSD Threshold (TPY): 250 250 250 250 250 75,000

10. 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

11. Power Plant Upgrade
• Design emissions:
NOx CO VOC PM2.5 SOx CO2e
Current 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

12. 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

13. Contact with Questions
James A. Westbrook
BlueScape, Inc.
858-695-9200 x201
or mobile 858-774-2009
jwestbrook@bluescapeinc.com
www.bluescapeinc.com

14. 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 www.bluescapeinc.com/about/index.html for more information.

15. Quick Poll
WHICH 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?