.o.1rÉo slrto 3"al'L UNITED STATES ENVIRONMENTAL PROTECTION AGENCY , TYJ APR z0 REGION 2 290 BROADWAY NEW YORK, NY 10007-1866 201 ' Mr. Donald Spencer Regional Air Pollution Control Engineer New York State Department of Environmental Conservation, Region 4 1 130 North Westcott Road Schenectady, NY 123 06-20 1 4 RE: Draft title V Operating permit Modification for Global Companies LLCAlbany Terminal, located in Albany, New york Permit ID #: 4-0101-00112/00029 Dea¡ Mr. Spencer: The u.s. Environmental Protection Agency, Region 2 offrce has reviewed the New york state Department of Environmental conservation, Region 4 (NySDEC)'s draft title v operating permit modification (drafr permit) for Global Companies LLC_Albany Terminal (Global or facility) issued for public comment on January 29, 2Ol4,the permitting record for this draft permit, and additional information,-which was provided by your staff. Global is a stationary bulk petroleum storage and transfer terminal.ïhe prop_ose-d modification þroject) comprises of (l) reconfiguration of the existing Kenwood rail facility to allow for the off-loading ofheated petroleum products; (2) convJrsion of Tank 33 which, cunently stores distillate fuel, to volatile petioleum pròáuct (crude oil.. gasoline, ethanol) storage; (3) installation ofseven new bõilers thatwiu be uìilized to ilear viscous petroleum products; and (4) conversion ofrank I lg from volatile petroleum products to distillate fuel storage. EPA has the following comments on the d¡aft permit. we provide these comments to help ensure that the facility meets the federal clean Air Act (cAA) requirements, that the permit will provide necessary information so that the basis of the permìt decision is transparent and readily accessiblé to the public, and the permit record provides adequate support for the permit decision. 1, Background-Ambient Air Quality ánd Major Source Status currently, the area in which Global is located is designated as meeting the National Amtient Air Quality Standards QTIAAQS), which are promulgated tolrotect public health, for all criteria pollutants except for ozone. ozone is not emitteä directiy from stationary sourcesl ozone is formed by the precursor pollutants, nitrogen oxidãs (No*), and volatile organic compounds (voc), Thus, Nonattainment New s-ource Revièw "' regulations, in ozone nonattainment areas, apply to new major stationary sources (major source) of NO*. or VOC and to existing major sources of NO* or VOC making Olsnl lntemot AddresE (URL) . htþ;//www,epa.gov Rccyclrd/R.cycllbl. . P.lntåd wllh vagot blr Oll Bå..d lnkr on Rlcycled PrÞrr (Mtn¡mlm 5oy. po¡tconlu¡rêr contcnt) major modifications for these pollutants, NNSR permitting is intended to allow construction of new or modified sources of air pollution in these æeas while still making progress towa¡d cleaner air, and attaining the NAAQS. Whenever a new major soürce or à major modification at an existing major source is constructed, the source must apply for and obtain a NNSR permit that meets regulatory requirements including: (1) installation of the lowest achievable emission rate (LAER); (2) obtaining offsets, and (3) opportunity for public involvement. EPA approved New York's NNSR and PSDr regulations contained in 6 NYCRR, Pa¡t 231 (NYSDEC NNSR and PSD regulations) æ consistent with the requirements of 40 CFR 51.165, and 40 CFR 52.21, respectively. Under NYSDEC NNNSR regulations, facilities with a potential to emit (PTE) of 50 tons pet year (tpy) of VOC, and 100 py of NOx, which are located in marginal, modeiate ozone nonatt¿inment areas, or ozone. transport regions, are classified as major source relative to NNSR regulations. Based on the permitting record, Global has a PTE of VOC of 147 tpy, which is geater than the NYSDEC NNSR applicable tlueshold of 50 tpy. Thus, Global is a n¡rjor source for ozone relative to NNSR regulations. EPA notes that, we could not identiff any information in the permitting record, draft permit or draft permit review report regarding the facility PTE of NO* emissions. Furthermore, from ou¡ review, as of NYSDEC NNSR and PSD regulations, Global is a listed source category, "Petroleum storage and transfer units with a total storage capacity exceeding 300,000 barrcls". As such, the major source level is 100 tpy of a regulated pollutant (unless more stringent levels are required by State regulations)', and fugitive emissionsi æe considered in determining whether the sou¡ce is a major source and whether a modification to an existing sou¡ce is a major modification. For example, a PTE of 100 tpy of NO* would make Global a major source relative to, both, PSD and NNSR regulations. 2, Nonattainment New Source Regulations Applicability Analysis for the Proposed Modification Conducted by the Facility As discussed above, Global is a major NNSR source, and, therefore, the proposed project represents a modifrcation to an existing major source. From our review of the permitting record (Project Summary tâble)4, NYSDEC has determined that, since, the increase in actual emissions (project emissiôn potential) of the proposed modification of 39,59 þy of t 40 CFR 52.21 appli€s to new major stationary,sourc€s or major modification at existing major sourccs in attainm€nt afeas. 2 For example, based on NYSDEC NNS& the major facility th€shold for ozone nonattaiDment a¡eas could be as low as 25 çy ofVOC or NO". 3 ao crn s t.tos1a¡ (1) (ix),"Fugitive emissions means those emissions which could not ¡easonably pass th¡ough a stack, chim¡ey, vent o¡ other functionally equivalent opening." ' See Project Summary table in Attachment I of this letter. voc is less than the applicable modification does not constitute to LAER, and offsets, significant project th¡eshold of 40 þy, the proposed a major modification, and, thus, it would not te subject . we note that, for a modification with a project emission potential (calculated using projected actual emissions), which is less than the applicable signiircant project th¡eshold, the NYSDEC NNSR regulations, only requires that the facility maintains records related to the proposed modification. The draft permit contains such requirements for the proposed modification. However, as discussed below, thus far, it is unclàar to us whether the NNSR applicability analysis for this proposed moäification was conducted in accordance with the provisions of the NYSDEC NNSR regulations. a. Proiect Emission Potential Calculation Based on NYSDEC NNSR regulations, the project emission potential must consider onlv the proposed emissions .inc¡eases' . However, as shown in the project Summary appears that, in determining the project emission potential, the facility, contrary to thá NYSDEC NNSR provisions, has also considered decreases in emissions associated with the proposed modifìcation, not only emission increases. As shown in the project slry"*l-t4b,!", the project emission potential of 39.59 tpy was determined by excludins 4.27 Yac from the proposed project emíssíons potential íncreases or+r.úoìpy voõ ^tpy (43.83'tpy minus 4.27 tpy equals 39.59 tpy). tableJ From the facility's NNSR applicability analysisT, ¡he 4.27 tpy represent decreases in VOC emissions resulting from converting Tank I l8 from volatile petroleum products (e.g., gasoline) to distillate products. EPA notes that, the project emission potential determined by considering only the proposed emission increases, as required by the NYSDEC NNSR regulations, would be 43. 83 tpy VOC, which exceeds the significant project th¡eshold of 4b tpy. For a modification with a project emission potential, which equals or exceed iúe applicable significant project threshold, NYSDEc requires the facility to determine the iroposed modifìcation net emission increase (which is the sum ofpioject emission potôntial, increase and decreases in emissions in the contemporaneous periods, and àecreases from the proposed modification). Modification with net emission increases that equal or 5 o See 6-NYCRR.Part 231-4.1 (b) (40(D As shown_in the applicability analysis, the project increases in actual emissions of43.g3 þy voc was determined bæed on the diffsrence ben.veen the projected actual emissions of44.25 py and ihe baseline actual emissions of0.39 çy. Attacbment I of this letter see.6_l.IYcRR Pa¡t 231-4. (b)(13),conte porlneous: "... the period beginning five years prior to the scheduled commence constuction daþ ofthe new o¡ modified èmission iourcel and Ënding with the scheduled commence operation date... ' 8 See exceed the applicable significant net emissions increase th¡esholde are subject to NNSR regulations (i.e., LAER, offsets), In conclusion, we recommend that the facility should provide a discussion to clarify the calculation method that was used for determination ofthe project emission potential, and revise the NNSR applicability analysis, including the determination of the project emission potential, net emission increase. We note that, in the event, that the revised NNSR applicability analysis would reveal that the project is subject to NNSR regulations (i.e., LAER, offsets), NYSDEC would have to reopen the permit for public comment. b. Tank 33 Marine Loadine Operations of Crude Oil. and Boilers: Proiected Actual Emissions or Potential to Emit As indicated by the Project Summary table, the increases in actuâl VOC emissions for Tank 33 (Emission Unit: I -Tanks, Process CRl, Tank 33 storing crude oil), mæine loading operations of crude oil at dock (Emission Unit: 1-Rack 3, Process R3C), and for Boilers (Emission Unit: I-BOLR l) were calculated based on the projected actual emissions. However, from our conversation with you staff, it is our underst¿nding that the py of VOC values listed in the "Projected Actual Emissions" column of the Project Summary table represent the potential to emit ofthese emission sources, and not their projected actual emissions. Thus, clarifr whether the projected actual emissions or potential to emit was used for the calculation of increases in actual emissions resulting from Tank 33 and marine loading operations ofcrude oil activities. Additionally, in cæe the projected actual emissions were used (and not potential. to emit), please provide supporting information, assumptions, and calculations related to the projected actual emissions included in the application for these emission sources. Furthermore, since the boilers, are new emission. source, please clarify that VOC emission increases were bæed on their potential to emit. c, VOC Decreases in Actual Emission Tank i l8 As shown in the Project Summary table and applicability analysis (See Attachment I of this letter), the facility has claimed 4.27 tpy of VOC as decreases in actual emission from converting Tank 118 (which is part of the proposed modification) ftom gasoline to distillate products. It seems thal the 4.27 tpy is the difference between the baseline actual emissions (average over year 201 I and 2012) of 4.31 tpy and 0.037 tpy VOC, which represents the new PTE of Tank 1 I 8. However, from our review, it seems that the facility current title V permit does not contain any limitations on Tank I l8 VOC emission, throughput (i.e., gallons of gasoline 9 For instance, the applicable significant net emission increase th¡eshold for Global proposed modifìcation is 40 çy of VOC. sto¡ed per yea¡), oÌ monito,¡ing or recordkeeping requirements for the voc emissions or for the throughput. Thus, the iac'ity they derived the baseline actual VOC emissions for Ta¡rk I I é. shourdi;;ililü* d. Proiected pueitive Actual Emissions The facility should add¡ess emissions,'whico;n; o o 3. *ï?'i:ö::i åffitr Il;,:ï"0'.0 fugitive actuar Identify the sou¡ces associated with the projected fugitive actuar emissions. Provide a discussion clarifring how the projected fugitive actual emissions were derived. contemporaneous period-contemporaneous increases and decreases E-PA notes tåat, since the permitting record does not contain information rerated to the contemporaneous inireases and decreases at trre racility, have requested such information from Reeion 4 throret Neverrheress. as we unde¡stand from vour staff. tç frres r*rt¡ørmarion a¡e no longer wirh Region 4, æ these files are wirh the cåntr;i'oñ.d.r.TrÌ,us, we reconunend thãt the facility shourd.add¡ess the folrowing i"ró*"ii"","gääing the contemporaneous period, and contemporaneous increases uni¿.rr.*., álùJa.iiirv, l r i L #i'r;,20r4. "-[i¡;; J"*lrrat;t r I i I l Define the contemporaneous period for the proposed modification; the period shall be defined as.equi'eJ ty ãñïönn Ëiupart 231_4 (b) filjftoo'*tous I : P¡ovide detailed information ¡erated to the voc emissions increases and dec¡eases. including VOC fugitive emissio*, *f,i"t fru*-oJ.'urr.a ut tf," faci.lity and that. a¡e contemporaneous with the proposed modification. s".tr i"tå.."ti""'iül not be limited to, the emission unit, process, anã-ern'ill,on .o*"" number and the date of the occurrence of the increaseo, à..rr*á y", i, vóð ä;i ä: contemporaneous inc¡eases and decreases in emissiãns sho"rJá*ì".i"ä"äåi.ri"", resulting from sou¡ces, which a¡e.*r*pt rrÀ*-pîtriiiing unaer the NysDEc regulations. #ï:di:* äirrià;r:ç;;; we note that the Global title v air permit has been modiñed fìve times since 20r r. Thus, we ¡ecommend that the description section or trr" p..rii ue ¡evised to include a summary of the changes addressed by eå"t onr oi tt J "ïtìåTiiäiilo¿i¡"ution" I l 4. Erempt Combustion Sources'Emission Estimates From ou¡ review of the permining record, there are at least eight combustion sou¡ces consisting of em"rg.n.y generators, stationary or portable intemal combustion engines, The facility and fumices, whici aré eiempt from permitting under NYSDEC regulations. sorüces: should add¡eis the following information regarding the exempt combustion . clarify whether the emissions resulting from determination of the PTE for the facility. e Provide an estimate of these sources potential to emit (þy) of NOx, VOC' CO' PM, PMro, PMz.s, SQ, and Greenhouse gases (GHG) emissions' 5. Fugitive Emissions Sources a. Emittinq Sowces (ProcessesÌ-Described in the draft þermit these sources were included in the as sou¡'ces of fugitive emissions we recommend that the facility should demonstrate that the facility PTE of I 47 tpy of. VOC and 23.75 tpy of hazædous air pollutants (HAP) includes the fugitive VOC and HAP emissions (ipy) resulting from the emitting sources (i.e', processes), whic! æe described in tfre àiáft permit ás sou¡ces of fugitive emissions. Such demonstration shall include: (l) an estimaie of the PTE of VOC and HAP from each process; (2) emission factors, assumptions, and methodology used to derive the PTE; and (3) briefly identify the activities leading to the fugitive emissions occunences, Additionally, we recommend that NYSDEC should revise the draft permit,. to make sure that it incluâes the following information for each process: (l) Type of fugitive pollutants resulting from each process; (2) Method for monitoring the annual fugitive emissions. (é.g., by calculations), including the emission factors, and assumptions from eaõh process -by the facility; (3) Recordkeeping and reporting requirements; (4) Specific to be used mitigation measures and work practices designated to prevent and minimize the occùence of fugitive emissions ensure; and (5) Detection measures and control plan. b. Sources of Fueitive Dust Emissions We recommend that the facility should (1) Identiff the fugitive dust emissions sou¡ces at the facilig; (2) Estimate the PTE of PM, PM1e, and PMz s; and (3) indicate the emission factors, assunptions, and methodology used to derive the PTE, for each source' Additionally, we recommend that NYSDEC should revise the draft permitty: (1) identifying the sowces of fugitive dust emissions; (2) including the type ofirgitive pollutants resulting ftom each sou¡ce; (3) Indicating the monitoring method for the 'annual fugitive emissions (e.g., by calculations), including the emission factors, and assumptions to be used bv , (4) recordkeeping and reporting requirements; and (5) specific mitigation measu¡es ^g:j]ir, and work practices'oesignated to prevent . and minimize the occunence of firgitive .mir.ionì .i'-.Çä¿ ".^.. t ¿ult .ont 6. oi ;ü"' Vapor Combustion Units-NOx, CO, pM, pM¡¡, pM2¡, SO2, and GHG Emissions From ou¡ review ofthe oermìtting record, current an<' draft permit, it is uncleæ whether No", co, pM, pM,o, pMz.s, íoz, wrrictr are resulting fiom the (l) combustion of the vapor emisrion. ttiuiiesult prtrot"um products) bv the .,," vapor combustion units (vCU)ued by the facitity; *à fzl ,¡. .å.u"lrìä"-"iäi, auxiliary frrel required for the vcu, rn o.¿o to r,iriJiìimbustíon have been considered in estimaring the pr' of this fac'ity. Thus, ihe i*iìäy .t *r¿ the following: "¿dress P¡ovide a discussion clæifting whether the NO,, CO, pM, pMro, pMz.s, SOz, and GHG emissions resulting frorñ th. uupor .orUuitioi'units (Êom combustion of vaoor emissions and auxiliarv firer), truu" u".n *tiÀ.tìrg *ic'õ'.ri.ìiåïs, Åiäî" the ¡ ¡ "onri¿.i.i'i" ttääiff;il:' P¡ovide estimates of pr' for each_of the above-mentioned po'utants, as well as the emission factors, assumprio¡s, and method"l";i;r;ì" derive rhe pTE. EpA recommends that, at least, the emission fu.to.riio, ñõ, ar,¿ CO emùsiol-.e*tt¡nn from the cqmbustion of vapor emisrion. sttouiJ ue as milrigrams per lite-r of product treated ( mg/l), and, if possible, ,ã "ì-pr.rr.aby the U. ã"*rìlt*¿ VCU manufacturer(i. e., John Zinc). Additionally, in the event that any of the gæoline vapor collection and control systems at Global are employing combustion fo, tf,.".ont àioiriä ä rhe No", co;ÞM: Þi4;;'i;ü; 7. Storage Tanks Enissions ;¡õ;; il-cHä #,::ï","#li:i1f :iH[îîJ,::"'" we note that, while, the drafr permit rists at least I l storage tanks, it appeæs that the draft permit conrains no conditions limiting the t"*r; .rni*i"iï. ttpy vöðää tty tgsl tþustrput (i'e., galrons ofiroduct pe. "l vö. öinr.quentlv, ít is uncrear to us. whether the rac'itv pr' or r4zrpv of vo c HîË-i,i.l"äåä,,åö;ìä HAPs emissions resulting from the storage tanJ