Page 1 of 1 Erik Hendrickson - FNSR for MSS language • From: Sean O'Brien To: Capobianco, Tara; Hendrickson, Erik; Hughes, Richard Date: Subject: 2/5/2010 4:06 PM FNSR for MSS language Forgot lowed this to the team Here is the language from the technical deficiency letters the chemical section was using: I~ " I It is not sufficient to say that the emissions are not new to avoid a federal new source review (NSR). You may treat the authorization of maintenance, start-up, and shutdown (MSS) at your site as a project and determine federal NSR applicability as follows: A. The project emission increase may be assumed to be zero for each facility that you can verify existed before the federal NSR program (approximately 1975) and has not been modified since that time so that MSS emissions would not have increased. B. For facilities that do not meet that criterion, baseline emissions may be determined using compliant MSS emissions demonstrated through Title 30 Texas Administrative Code 101 (30 TAC Chapter 101) and reported in a timely manner in the emissions inventory. These emissions must also be reduced by what is determined to BACT in this permit review. C. If the project emission increase is significant, contemporaneous period netting for the site must be submitted. Note that the project emission increase must consist of all MSS emissions for which you are seeking authorization at the site (not just what emissions are in this permit application). In addition, if your site is located in an ozone nonattainment area, the major modification threshold should be based on the previous classification under the one hour ozone standard (HGB - severe, BPA-serious, DFW - serious) using our current rules in 30 TAC Chapter 116. We will consider other approaches on a case by case basis. A full retrospective analysis is always an option for determining federal NSR applicability but this demonstration must not only focus on past changes in MSS emissions but on the impact they would have had on federal applicability for all projects completed since that time. I I =0" I file:IIC:\ WINDOWS\Temp\XPgrpwise\4B6C41FFTNRDOM30AQPO 100 168686511AD7... 2/5/2010 Agenda for 2/10/10 meeting with TCEO regarding MSS Permitting Issues Introductions and description of purpose of larger MSS Permitting Group MSS Permitting Group's development of table containing MSS activities at group members' sites, and whether each activity is authorized by PBR or under de minimis provision in 116.119 MSS Permitting Issues Calculation of MSS emissions when there are no CEMS or emissions factors Required incorporation of MSS authorized by PBR 106.263 into permit? How to address exceedances of opacity limits in Chapter 111 during startup or shutdown Applicability of public notice and comment requirements, including possible contested case hearing How permit will address MSS emissions that are> or < current emissions limits Federal NSR applicability How SB 7 permits will address MSS emissions How to demonstrate compliance with MSS emissions limits What steps will TCEO take to ensure consistency between permit engineers Date for next meeting MSS Permitting Group's and TCEO staff's action items for next meeting =~ Page 1 of 1 Erik Hendrickson - Utility MSS Group Questions 77WifiiilW From: To: Date: Subject: cc: [ I II 11 Prot bUW ULMbJiii !Tf ~[/ Erik Hendrickson Hagood, Steven 3/11/2010 12:27 PM Utility MSS Group Questions Capobianco, Tara; Hughes, Richard; O'Brien, Sean We met with the utility MSS group last month and during the course of the meeting several issues arose that will require management input. The issues are identified below. Our next utility MSS group meeting is scheduled for March 23, 2010. Hopefully, we can provide some feedback on the issues identified below at the March meeting. If necessary, we can also meet internally and hash-out some of the details associated with each topic. Thanks. Erik, xl095 Rulemaking to Change Opacity Requirements in 30 TAC 111 In the kick-off meeting with the utility MSS group, there was some discussion that TXOGA was considering petitioning the Commission to change the opacity requirements in Chapter 111. The utility group has discussed that option with TXOGA and TXOGA seemed to think there was another option. The question the utility MSS group posed to us was, would the ED consider initiating the rule change without a petition, since the MSS issue crossed multiple industries? The attorney for the MSS group eventually wanted to talk to Richard about this issue. SB 7 Permits What requirements should go into SB7 permits? SB7 emission units pre-dated state and federal permitting requirements to apply BACT and their operations are limited by a cap and trade program. Do we want to establish allowable emission rates for MSS in the SB7 permits and would these emissions be considered " ... an increase in the allowable emissions ... " for the purposes of382.056(g)? F. Y.I. 382.056(g) says: "The commission may not seek further comment or hold a public hearing under the procedures provided by Subsections (i) - (n) in response to a request for a public hearing on an amendment, modification, or renewal that would not result in an increase in allowable emissions and would not result in the emission of an air contaminant not previously emitted." Federal Applicabilitt The utility MSS group is preparing a white paper to address federal applicability. Part of the analysis will look at baseline emissions and what should be included and what case history exists with WEPCO claims over the years. The agency has provided guidance over the past years saying that MSS emissions may be defined as the project and that if no MSS emission were reported in the EI, the baseline emissions would be zero. The project emissions would then be compared to the significance levels to determine if federal permitting has been triggered. The problem with this approach is that federal rules define baseline emissions to include the emission tmit's normal operating emissions and SSM emissions. EPA has offered a comment on Kurt's Valero project (RTC currently on Steve's desk) asking for justification for excluding the unit's routine emissions from the baseline emissions. Do we want to modify our guidance related to defining MSS as a stand alone project for the purposes of federal applicability for utilities? file:IIC:\ WINDOWSITemp\XPgrpwise\4B98E1961NRDOM30AQP01 00168686511B08... 3/1112010 From: To: Date: Subject: cc: I Steven Hagood Hagle, Steve; Sadlier, Jayme; Wilson, Mik.e 3/22/20102:18 PM Utility MSS Issues Hendrickson, Erik Steve, I originally sent this on 3/12 for your review. We are meeting with the utility folks to discuss MSS tomorrow at 1 :00 and we really need your input on the following issues. Can you please look over these issues and give us some feedback. Steven Steve, Erik put together the following utility MSS issues. We need to get feedback from YOli on direction before the next utility MSS group meeting, which is scheduled for March 23, 2010. We would like to provide feedback on these issues at the upcoming meeting. Ifnecessary, we can also meet internally and hash-out some of the details associated with each topic. Let us know if we need to schedule a meeting with Rosa Thanks. •*•• *•••••• ** ••••••••••••••• *•• *•••••••••••••••••••••••••••••••••••••••••••••• *•• *•• **** ••••••••••••••••• *••••••••••• **. Rulemakingto Change Opacity R~uirements in 30 TAC III In the kick-oITmeeting with the utility MSS group, there was some discussion that TXOGA was conSidering petitioning the Commission to change the opacity requirements in Chapter 111. The utility group has discussed tbat option with TXOGA and TXOGA seemed to think there was another option. The question the utility MSS group posed to us WIlS, would the ED consider initiating the rule change without a petition, since the MSS issue crossed multiple industries? The attorney for the MSS group eventually wanted to talk to Richard about this issue. SB 7 Permits What requirefnents should go into SB7 permits? SB7 emission units pre-dated state and fedeml permitting requirements to apply BACT and their operations are limited by a cap aud trade program. Do we want to establish allowable emission rates for MSS in the SB7 permits and would these emissions be considered " ... an increase in the allowable emissions ... " for the purposes of382.056(g)? . F.Y.l. 382.056(g) says: "The commission may not seek further comment or hold a public hearing under the procedures provided by Subsections (i) ~ (n) in response to a request for a public hearing on an amendment, modification, or renewal that would not result in an increase in allowable emissions Ann would not result in the emission of an air contaminant not previously emitted." Federal Applic.,ability The utility MSS group is preparing 11 white paper to address federal applicability. Part of the analysis will look at baseline emissions and what should be included and what case history exists with WEPCO claims over the years. The agency has provided guidance over the past years saying that MSS emissions may be defined as the project and that if no MSS emission were reported in the EI, the baseline emissions would be zero. The project emissions would then be compared to the signHioance levels to determine if federal permitting has been triggered. The problem with this approach is that federal rules defme baseline emissions to include the emission unit's normal operating emissions and SSM emissions. EPA has offered a comment on Kurt's Valero project (RTC currently on Steve's desk) asking for justification for excluding the unit's routine emissions from the baseline emissions. Do we want to modify our guidance related to defining MSS as a stand alone project for the purposes of federal applicability for utilities? file:IIC:\ WINDOWS\Temp\XPgrpwise\4BA nC18TNRDOM30AQPOl 00 168686511 B 14... 3/22/2010 Page 1 of 1 Erik Hendrickson - Re: MSS Utility Group Mtg in Room 212W Bldg C iZZ2 J I ~I i " From: "Eckberg, Craig" To: "'ehendric@tceq.state.tx.us'" Date: Subject: cC: 3/22/2010 4: 15 PM Re: MSS Utility Group Mtgin Room 212W Bldg C "'RHughes@tceq.state.tx.us'" , "'SHAGOOD@tceq.state.tx.us'" , "'SObrien@tceq.state.tx.us'" , "'TCAPOBIA@tceq.state.tx.us'" Thanks Erik - we'll plan to arrive at or about 1pm. Below is a proposed agenda: 1. a. b. c. d. MSS permitting issues Federal NSR applicability How to address exceedances of 111.111 opacity limit, and possibly of 111.153 PM limit, during startups; How to address MSS emissions in SB 7 permits . Public notice and comment/contested case hearing requirements applicability 2. a. b. 3. MSS Permitting Group's and TCEQ staff's action items for next meeting Group's table of types of maintenance activities and permit authorization for them Possible methods for determining MSS emissions where there are no CEMS or emissions factors Schedule next meeting Craig From: Erik Hendrickson To: Eckberg, Craig Cc: Richard Hughes ; Steven Hagood ; Sean O'Brien ; Tara Capobianco Sent: Mon Mar 22 17:08:48 2010 Subject: MSS Utility Group Mtg in Room 212W Bldg C The MSS Utility Group meeting will be held Tuesday 3/23/2010 in Building C, Room 212W, which is the same location where the previously meeting was held. Erik, (512) 239-1095 file:IIC:\ WINDOWS\Temp\XPgrpwisc\4BA797 Al TNRDOM30AQPOl 00168686511B 15... 3/22/2010 = ::::: From: To: Date: Subject: "Eckberg, Craig" "Hendrickson (Business Fax), Erik" 5/25/2010 11 :45 AM 5/25 MSS workgroup meeting today Hi Erik - hope all is well, the proposed agenda for this afternoon's meeting is below, when convenient, pis let me know what meeting room has been reserved. We'll likely need most of the meeting time to review our work on item 1(b). Tks., Craig Agenda for 5/25/10 meeting of MSS Penmitting Group and TCEQ 1. MSS permitting issues to be discussed at teday's meeting a. Whether obtaining a CO emissions limit in a permit that is higher than the CO emissions limit in Chapter 117 satisfies an executive director-approved alternative case specific specification under Chapter 117, and If not, what supplemental filings would be necessary b. MSS Permitting Group's table of types of maintenance activities, calculated emissions from them, and possible permit authorizations for them 2. MSS permitting issues to be discussed at future MSS Permitting GroupfTCEQ staff meetings a. Which maintenance activities can be authorized as inherently low emlttrng (ILE) activities, as de minimis activities, 01' under PBR b. How to address exceedances of 111.111 opacity limit and 111.153 PM limit during MSS c. d. MSS permit template and high-level outline Impacts review,fo'r MSS emissions ..... )t':J2Jl...Y' e. Federal NSR applicability f·. 3. t'W- i-.~·,""-I'\.>'""'~ PUblic notice and comment/contested case hearing requirements applicability Next meeting _ :s~,t--I...- z.q.lt- II, Gl-U ' scheduling LV.-I/ C ... J·' fl.-<... ii ' " Jj r.e.-~ ",- •.,{, 00 Q':L... '~jl"v'" wi~'- (' /..."'-.' ,,<•. l ... " "-', 'i? ''''":,,,.... +.~ ri \ " t... \l.S. frlt't,r 1"~'Y' . r'{lj°z " Page1] Page 1 of I Erik Hendrickson - maintenance activities table and emissions calculations spreadsheet7 Electric Generating Facilities - au """ "Eckberg, Craig" Erik Hendrickson 6/11/20102:41 PM maintenance activities table and emissions calculations spreadsheet- Electric Generating Facilities CC: 'Paul Coon' , '''brian.caldronia@luminant.comlll , "Steinhauser, Bill" , '"kpgaus@aep.comlll , "Little,Lindsay" , "Carmine, Ben" Attachments: AUSTIN 1-#601425-v26_ll_l1_maintenance_activities_emissions_calculations.xLS; AUSTIN_I-#601096v3-6 _11_10_maintenance_ activites_table.xLS From: To: Date: Subject: Hi Erik - as we discussed during the May 25 meeting of the Electric Generating Facility MSS Permitting Group and TCEQ staff, attached are the draft maintenance activities authorization table that we discussed at that· meeting, and a spreadsheet that contains the calculations and methodologies for estimate the emissions for the maintenance activities for which the Group has calculated emissions. Please note that the table and spreadsheet are still in draft form and are being submitted for discussion 'purposes only. As you review the attached documents, please note the following: - The emissions calculations appear in the spreadsheet in the same order that they appear in the table.' If you want to know how the emissions in the table for a maintenance activity were calculated, you can find out by· opening the page of the spreadsheetthat applies to that activity. - The following words or terms used in the table have the following m e a n i n g s : , - "ILE" means that the Group believes that the activity (or part of the activity, in some cases) isacandidate to be authorized in the permit as an inherently low emitting (ILE) activity. - "116.119(a)(1)" means that the Group believes that the activity is covered by an existing de minimis List entry. - "Proposed De Minimis" means that the activity does not appear to be covered by an existing de minimis List entry, but the Group believes that it would be appropriate to revise an existing De Minimis List entry, or add a new De Minimis List entry, to cover the activity, as is discussed in the "Notes" column of the table. t. I l =1 We would appreciate TCEQ's technical peer review of the information (including the description, the emissions (where applicable), potential authorization) for each activity in the attached table and spreadsheet (except for the activities at the end of the table that contain the word "permit" only in the "Potential Authorization" column). We'll plan to discuss your preliminary review and comments at our June 29 meeting. Please let me or Keith Courtney know if you have any questions about the information in the attached table or spreadsheet. Thanks again for your assistance on this effort! Craig Craig Eckberg NRG Texas Power LLC Manager, Air Resources 1301 McKinney, Suite 2300 Houston, TX 77010 713-795-6208 0 713-795-7431 f 281-850-6925 c file://C:IWINDOWSITempIXPgrpwiseI4C 124B I OTNRDOM30AQPO 10016868651IB9D... 611512010 .. ;.' 7128110 DRAFT Agenda for 7129/10 meeting ofMSS Permitting Group and TCEQ 1. MSS permitting issues to be discussed at today's meeting a. Finalization of maintenance activities authorization table and emissions calculations spreadsheets for use by permit engmeers b. Status of revised draft letter regarding MSS emissions from gas-fired SB 7-permitted facilities c. Draft MSS model permit conditions for electric generation sites d. Impacts review for MSS emissions (e.g., N02 NAAQS) . . . . ,___~~'.;'.(I~~~.::-.:::'::~='=:,:~==..:...-.:~~:::=-~=:~. .-:::.:::=.~-==...::::.::::=:::_ 2. 3. "'~~';~:,::::::::zn~;;r.;~w.Ji;~~:;Sii;0E,:;r:::'l,Y~~f~~;::;'5~;;;;::':1;'::::': MSS permitting issues to DeuiSCussed at future MSS Permitting Group/TCEQ staff meetings a. Federal NSR applicability b. Public notice and commentlconte~ted requirements applicability c. I-low to address exceedances of 111.111 opacity limit and 111.153 PM limit during MSS Next meeting scheduling AUSTIN_I\604717v3 46794-1 07128/2010 case hearing Page 1 of 1 Erik Hendrickson - Draft Letter to Utilities on MSS I ,\ ~; iI From: Erik Hendrickson To: Harrison, Booker Date: Subject: 8/5/2010 4:35 PM Draft Letter to Utilities on MSS cc: Hagood, steven Attachments: SB 7 MSS letter august 4.doc Steven asked me to send you a copy of a letter we are planning to send to permit holders of SB 7 permits. Steve Hagle has seen the attached letter, but we wanted to let Legal take a last look before we sent the letter out. Please let us know if you have any comments. Thanks. Erik, x1095 I I I file:/IC:\ WINDOWS\Temp\XPgrpwise\4C5AE855TNRDOM30AQPO 100 168686511 BFA... 8/512010 5 tt V,L·.) ",-S ; 5(' 7 (111 s I", H~_ CI...-(..'5f.. II ehendric@tceq.state.tx.us" 3/9/2011 7:26 AM 1109Is179-187.pdf Erik - attached is a Texas Register notice that you may find interesting "The commission does not intend the total emission Increases for each pollutant category defined in the rule to include: 1.) consolidation or incorporation of any previously authorized facility or activity (PBR, standard permits, existing facility permits, etc.); 2.) changes to permitted allowable emission rates when those changes are exclusively due to changes to standardized emission factors; or 3.) actual existing emissions due to routine maintenance, start-up, or shutdowns at permitted facilities, where those emissions were not previously listed on a Maximum Allowable Emiss10n Rate Table (MAERT)." Section 55.201 (i) : (i) Applications for which there is no right to a contested case hearing include: (1) a minor amendment or minor modification of a permit under Chapter 305, Subchapter 0 of this title (relating to Amendments, Renewals, Transfers, Corrections, Revocation, and Suspension of Permits); (2) a Class 1 or Class 2 modification of a permit under Chapter 305, Subchapter 0 of this title; (3) any aIr permit application for the following: (A) Initial issuance of a voluntary emission reduction permit or an electric generating facility permit; (8) permits issued under Chapter 122 of this title (relating to Federal Operating Permits Program); or (C) amendment, modification, or renewal of an air application that would not result in an increase in allowable emissions and would not result in the emission of an air contaminant not previously emitted. Confidentiality Notice: This email message, including any attachments, contains or may contain confidential information Intended only for the addressee. If you are not an intended recipient of this message, be advised that any reading, dissemination, forwarding, printing, copying or other use of this message or its attachments Is strictly prOhibited .. lf you have received this message in error, please notify the sender immediately by reply message and delete this email message and ~ny attachments from your system. f =1 I =~ i Bryan W. Shaw, Ph.D., Chairman Buddy Garcia, Commissioner ""earlos Rubinstein, Commissioner Mark R. Vickery, P.G., Executive Director TEXAS COMMISSION ON ENVIRONMENTAL QUALITY Protecting Texas by Reducing and Preventing Pollution ROName ROAddress DRAFT Date Re: Maintenance, Startup, and Shutdown Permitting Requirements for Natural Gas-Fired Electric Generating Facilities under Senate Bill 7 Dear RO Name: The purpose of this letter is to inform you that natural gas-fired electric generating facilities authorized pursuant to Senate Bill 7 of the 76th Texas Legislature, 1999, are not required to submit applications for planned maintenance, startup, and shutdown (MSS) activities in accordance with Title 30 Texas Administrative Code §101.222(h). The Texas Commission on Environmental Quality (TCEQ) has determined that natural gas- . fired electric generating facilities authorized under Senate Bill 7 do not require.' applications to authorize planned MSS, because those emissions are already authorized,. Texas Clean Air Act, Texas Health and Safety Code §382.05185, specifies an electric generating facility is considered permitted with respect to all air contaminants, if the facility is a natural gas-fired electric generating facility that has applied for or obtained a permit under Texas Utilities Code §39.264, or an electric generating facility exempted from permitting under Texas Utilities Code §39.264(d). The TCEQ interprets §3 82.05185 to apply to normal operations as well as planned MSS activities. Further, Texas Utilities Code§39.264 applies to electric generating facilities existing on January 1, 1999, that are not subject to the requirement to obtain a permit under Texas Health and Safety Code §382.0518(g). The TCEQ notes that these facilities must have begtm construction on or before August 30, 1971, which predates the requirement to obtain a Prevention of Significant Deterioration (PSD) permit, August 7, 1977. Because these facilities predate PSD requirements and the requirement to obtain a permit under the Texas Health and Safety Code §382.0518, they are not subject to best available control teclmology as long as the facilities have not been modified. The TCEQ concludes that emissions from planned MSS activities from natural gas ..fired electric generating facilities under Senate Bill 7 do not require additional authorization, as long as the facilities have not undergone a major modification, as defined in Title 40 Code of Federal Regulations §52.21. DRAFT ...• Bryan W. Shaw, Ph.D., Chairman Duddy Garcia, Commissioner Carlos Rubinstein, Commissioner Mark R. Vickery, P.G., Executive Director TEXAS COMMISSION ON ENVIRONMENTAL QUALITY Protecting Texas by Reducing and Preventing Pollution -DRAfT If you need further infom1ation or have any questions, please contact Mr. Erik Hendrickson, P.E. at (512) 239-1095 or write to the TCEQ, Office of Permitting and Registration, Air Permits Division, MC-163, P.O. Box 13087, Austin, Texas 78711-3087. Sincerely, DRAfl Steve Hagle, P .E., Director Air Pennits Division Office of Pennitting and Registratioli Texas Commission on Enviromnental Quality DRAfT