air permits: requirement, compliance & best practices … · equipment rating/throughput...

AIR PERMITS: REQUIREMENT, COMPLIANCE & BEST PRACTICES FOR YOUR BUSINESS June 26, 2018

Dominique Zellmer Environmental Compliance Specialist Minneapolis, MN

MARSH & McLENNAN AGENCY LLC

Today’s Air Permit Discussion Agenda

• What is an air permit?

• Air Permit Regulations

• Air Permitting Process

• Air Permit Compliance

• Air Compliance Tools

• NEW! Recent EPA updates

1 June 26, 2018


What is an Air Permit?

• A legal document that describes how a facility is meeting federal and state air quality regulations.

• Contains legal conditions that are enforced by both the state and federal governments.

• An air emission permit contains information on all sources of air pollution at a facility.

2 June 26, 2018

https://www.google.com/url?sa=i&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwipl4zWoZjbAhWipFkKHVGcCHwQjRx6BAgBEAU&url=https://toledo.oh.gov/services/public-utilities/environmental-services/air/air-permitting/&psig=AOvVaw27hPyCevVM2ppOcPpBiGZE&ust=1527041597138194


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Who needs an air permit?

Emission Sources include products of combustion, organic compounds, dust, etc.

• Can be subject to federal, state and local regulations (typically identified in some type of air pollution permit)

Examples of common types of equipment and processes include:

• Fuel combustion (e.g., boilers, furnaces, curing ovens, stationary engines, etc.)

• Activities using solvent-containing materials (e.g., paints, degreasers, adhesives, fiberglass layup, etc.)

• Air pollution control equipment (fabric filters, dust collectors, paint spray booths, scrubbers etc.)

* Your facility could potentially be exempt from air permitting requirements depending on applicable regulations, equipment size and emissions levels.

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Air Permit Regulations

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NESHAP and MACT STANDARDS

• National Emission Standards for Hazardous Air Pollutants (NESHAP): Emission standards set by the United States Environmental Protection Agency (EPA). The standards are for air pollutants not covered by National Ambient Air Quality Standards (NAAQS), that may cause an increase in fatalities or in serious, irreversible, or incapacitating illness. – NESHAP List

• Maximum Achievable Control Technology (MACT) standards: The standards for a particular source category require the maximum degree of emission reduction that the EPA determines to be achievable. MACT requirements apply to major sources of HAPs or area sources of HAPs, and these standards are congressionally mandated

6 June 26, 2018

EPA logo via Twitter.com

https://www.epa.gov/stationary-sources-air-pollution/national-emission-standards-hazardous-air-pollutants-neshap-9


New Source Review - NSPS

• New Source Performance Standards (NSPS): The standards for new sources may be more stringent than that for existing facilities, on the principle that a new plant can be designed with the latest and most advanced control technologies

• NSR - Pollutants for which there are NAAQS are referred to as criteria pollutants

• Criteria pollutants all have human health-based or welfare-based standards that set the maximum concentrations that are allowed in the ambient air (i.e., the air that the general public is exposed to).

• Examples of criteria pollutants: NO, SO2, VOCs, PM, CO, and Pb

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New Source Review

Major or Federal NSR Permitting

Nonattainment permits

Prevention of Significant

Deterioration of Permits

Minor or State Permitting

Standard Permit or Permit by Rule

State Construction Permits

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Criteria Pollutants

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Brief overview of Air Permit Types

Federal Permits: In general, "federal" is the term used to name those permits required specifically by federal regulations. Required for larger emitters of air pollutants. – Individual Total Facility — Typically a facility requiring a federal-level

permit must apply for an individual permit, which is written specifically for the activities (emission units, controls, etc.) at the facility and includes only those requirements applicable to the facility.

– General —General manufacturing facilities vs. low-emitting facilities.

General permits are pre-written to cover a range of operating scenarios and applicable requirements, so they require less processing

10 June 26, 2018


Air Permit Types cont.

State Permits

• Individual Total Facility — The individual total facility permit at the state level is very similar to the federal-level individual permit. However, at the state level, there are more alternatives to the individual permit available.

• Registration — For facilities with low actual emissions (i.e., what actually comes out the stack) versus their potential emissions

• Capped — The “capped emission permit” option is designed for noncomplex facilities that do not qualify for a registration permit and do require site-specific permit conditions.

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Air Permit Types cont.

• Environmental Management System (EMS) — An individually issued state permit option allows small and medium-sized air emission facilities that employ a qualifying (ISO 14001) EMS to operate under emission caps set typically set below 90 percent of federal thresholds.

• General — Similar to the federal general permits except that the PTE for these facilities are below the federal thresholds.

• Construction Vs. Operating Permits: – Many states offer individual “construction permits vs. a larger facility

wide “operating permit”.

12 June 26, 2018


State Permit Information

• Smaller permits generally do not expire.

• The EPA requires that Title V permits be renewed every five years. It can take anywhere from six months to a year or longer to issue individual total facility permits depending on the number of complicated issues involved

• New EPA guidance will allow mobility with certain air permits

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AIR PERMITTING PROCESS

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Air Permit Process Flow Chart

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Step 1 - Data Gathering •Review type of permit needed and business processes with client

•SDSs •Mfg specs on appropriate equipment

Step 2 - Build spreadsheet and Calculations •Use data and enter appropriate data using calculations spreadsheet

•Review calculations for PTE to determine permit viability.

Step 3 - Download forms and permit checklist •Fill out all appropriate forms and go back to data gathering if necessary according to form request.

•Use checklist to make sure all items are complete

Step 4 - Permit Submission •Print out multiple copies and make discs , upload documents for calculations spreadsheet

Time: Two weeks after all info is

received. Can be done congruently

with Step 2.

Time: Two weeks - Can be done

congruently with step 1. May require more time if permit is not

accepted by the State authority.

Time: One to two week if all

information is received timely

Time: One week Should review all

docs with consultant to

ensure grammatical correctness

Once Permit is submitted, the state may require many more steps to complete before the permit is approved. It may require us to go back to Steps 1&2. This process can take many weeks to complete so it is necessary to prepare.


What is “Potential to Emit” (PTE)

• PTE assumes 8,760 hours/year at max rated capacity except for operating hours restriction

• Criteria air pollutants, HAPs

• AP 42, manufactures data, stack testing, engineering judgement, material balance, etc.,

• Permit streamlining for emission limits

• State permitting limits

• Major Source Determination

• PTE calculation should be included in the final permit and summary of emission in Statement of Basis (SOB)

16 June 26, 2018


Air Permit Permitting FYI

• How does the state evaluate Air Permits? In general, the more significant the potential impact to air quality a permit or permit amendment has, the more detailed the involvement by Regulators.

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• Example: How does the MPCA prioritize its permitting effort?

o Construction permits Applications for permit amendments are put in a queue and worked on as staff become available. There is an expedited permit program where facilities pay to have staff work overtime to draft their permit.

o Total Facility Operating permits Includes reissuance of federal permits issued five or more years ago. These applications are worked on based on the priorities set by the AQ permit management.


Common Air Permit Exemptions

Equipment Rating/Throughput Business Use Exempt from Air Permits

Diesel Engine 100 hp, fixed Emergency Backup No, >50hp needs a permit

Air Compressor 75 hp, portable Construction 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 Coating 200 gallons/day Aerospace No

18 June 26, 2018

Note: Source-specific rules may apply even if permit exempt


What if you need to change, amend or upgrade your permit?

Registration Permit and Capped Permits preauthorize modifications, provided the modified facility still qualifies for the same permit.

To determine if its individual permit must be amended, the facility must: 1. calculate the PTE of the modification, 2. review the applicable state and federal rules and regulations, and 3. determine the applicable amendment type (if one is necessary).

*These items should all be done before starting construction on the modification because some amendment types require that the permit amendment be issued before construction commences on the modification *This Comment is important. The state can stop or not approve all changes that did not follow correct procedure

19 June 26, 2018


What if you need to change, amend or upgrade your permit?

The permit amendment types are differentiated based on threshold levels of emissions and/or the applicability of certain Federal programs.

The types of amendments are: – Administrative – Contravening – Permit terms – Minor – Moderate – Major

(Major amendments must be placed on public notice, take six months or more to issue, and generally involve the consideration of Federal programs and other changes that have the potential to significantly affect air quality)

20 June 26, 2018


Flowchart for Emission Change Amendments of your Permit

Insignificant Modifications: NOx – 2.28 lbs/hr SO2 – 2.28 lbs/hr VOC – 2.28 lbs/hr PM10 – 0.855 lbs/hr CO – 5.7 lbs/hr Lead – 0.025 lbs/hr

NO

YES If your not violating permit terms, the permit modification is a insignificant modification

Minor Modification: NOx – 9.13 lbs/hr SO2 – 9.13 lbs/hr VOC – 9.13 lbs/hr PM10 – 3.42 lbs/hr CO – 22.8 lbs/hr Lead – 0.11 lbs/hr

Assuming no Title I requirements (NESHAP, NSPS, NSR) or permit changes, facility would apply for a minor permit amendment

Major Modification: Applicable to:

• NSPS • NESHAP • NSR

Changing permit terms Change recordkeeping Change reporting

NO

YES

YES A major modification is required. This requires a 30 day state review and up to 45 day EPA review. A fast permit is about four months

21 June 26, 2018


Air Permitting Amendment Triggers

Business Changes:

• Change, expand or consolidate operations • New Equipment • Modified Equipment

• Physical modification • Change in method of operation

• Change in equipment description, permit conditions

• Upgrade, retrofit or replace equipment • New or modified equipment • Change in permit conditions (not

physically modified) • Emission reductions, apply for

offsets • Change in ownership, mergers,

acquisitions

Regulatory Changes

• New regulations, such as emission control requirements

• Revised existing regulations • New Federal rule applicability –

Title V, NESHAP and NSPS • Enforcement

22 June 26, 2018


AIR PERMIT COMPLIANCE

23 June 26, 2018


Basic Air Permit Requirements

• KNOW and understand your permit – have a copy on hand and READ it.

• Make sure you understand the requirements: If there are maintenance or general compliance requirements, document them.

• Make notes and put requirements including testing, recordkeeping, documentation & necessary actions -- Make a calendar – Set reminders – Work with consultant to create tools that work

for you

• Communicate with your employees!

Staff should know why they are doing actions on permitted emission units. Sometimes there are confusion with air permitting terms like “emission unit” and “control equipment”. Review these with applicability staff AND back-ups.

24 June 26, 2018


Monitoring, Recordkeeping requirements

• It’s important to track the monitoring and recordkeeping requirements. ALL permit types have some requirements an it is up to the facility to ensure they comply

• Develop an electronic records and document repository

• Document ALL maintenance activities, even visual checks. These activities are commonly completed but not well documented. If you have a PM system, use it to track activities or keep physical inspection logs. Keep copies of all documentation in your air permit compliance folders to easily access during inspections

25 June 26, 2018


Control Equipment

Air pollution control equipment or “control equipment” is used to regulate or negate various system emissions. It can be found in a wide range of manufacturing, processing, research and production facilities.

Examples: Thermal oxidizers, catalytic oxidizers, wet scrubbers, baghouses

• Must be operated within the manufacturers specs

• Facility must maintain an inventory list of spare parts for each control equipment, and all spare parts required to be on-site

• All staff must be trained appropriately on operation and how to respond to malfunctions (booth operations and maintenance) on an annual basis. DOCUMENT this training.

26 June 26, 2018


Control Equipment Cont. • Inspection frequencies: A very common regulatory rule is to inspect

control equipment to ensure it is operating within appropriate specifications.

– Daily: check and record monitoring equipment (pressure gauges)

– Monthly: Inspect components subject to wear or plugging (bearings,

belts, hoses, fans, nozzles, ducts)

– Quarterly: Inspect all other components (structural, housing, hoods)

– Annually: Thoroughly inspect control equipment

- Everything!

- Calibrate all monitoring equipment

- Records of fan rotation speed and face velocity of each hood

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Air Permit Compliance Tools

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Managing Environmental Records

Example Records to keep: • All Inspection Reports • Maintenance Records (if inspections occurred, document!) • Log books • Lab/test reports (all reports and

the associated documentation should be kept on-site)

• Training records (whether control equipment or personnel training )

• Monitoring records • Report repositories • Processed manifests • Manufacturer’s Specs • Procedures (SOPS or Recordkeeping)

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List out Compliance Requirements:

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Total facility compliance Tracking tool example:

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Example: Air Permit Compliance Calendar:

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Inspection Tracking:

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Managing Environmental Records Cont.

Common Issues: • Unable to locate where the records are kept /

Records in multiple locations = Have all records in one file and digital

• Multiple sources of similar data/Conflicting records = Understand the information you are reporting and tracking

• Who is owning your information? = Ensure your records are not disorganized, incomplete or inaccurate

34 June 26, 2018


Managing Environmental Records Cont.

• All Records should be kept for at least 5 years (digital is acceptable)

• Records of all inspections of Control Equipment

• Records of report submittals

• Records are required for all potential modifications, even if air permit amendment is not required (PTE calculations)

35 June 26, 2018


Reporting Required

• Air Emissions Inventory

• HAPS report –Legacy

• Air Emissions Fees

• Semi-annual deviations report

• Notification of shutdowns (only if increased emissions or ASAP if accident)

• Breakdown notification – 24 hours advance breakdown over an hour resulting in increased emissions

• Notifications of deviations – ASAP/2 days, only if deviations that threaten human life or environment

36 June 26, 2018


Air Permit Inspections!

• Don’t be surprised…they happen.

• May/may not be announced

• Be open and honest

• Show inspector:

– Emissions units

– Control equipment

– Recordkeeping

-- Maintenance

37 June 26, 2018


Common Air Pollution Violations

• Installing and operating equipment without obtaining proper permits.

• Not maintaining records required by permits. – Recordkeeping issues – Missing records – Incomplete records

• Exceeding permit limits. • Not maintaining air pollution control equipment. • Unaware of regulatory change and impact • Misinterpreting a requirement of a complex regulation • Not completing a regulatory task on time • Submitting regulatory report with incorrect data • Missing a reporting deadline • Permit Expiration

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Enforcement: • What are the risks? What is the impact of polluted air emissions?

• What happens if you find you may be in violation? – How do you k now? Self-disclosure – Triage the issue, get lots of help before you do Anything – The clock is ticking on disclosure and time matters

• What happens if the agency finds the violation? – Notice to Comply/Notice of Violation/Administrative Penalty

order/Stipulation agreement – Fix-it ticket, “to-do letter”, civil penalties and fines, finally, criminal charges – Process restrictions or emission controls

• Process to Cure rule violations – Breakdown reporting – Variance or Amnesty (process and state specific) – Order of abatement – Shutdown equipment

39 June 26, 2018


What’s NEW? EPA Guidance

• EPA withdraws “once in always in” policy for major sources under Clean Air Act: EPA News Release

• Memo:

40 June 26, 2018

https://www.epa.gov/newsreleases/reducing-regulatory-burdens-epa-withdraws-once-always-policy-major-sources-under-clean

Questions?

Thank you!

[email protected]

www.marshmma.com/offerings/risk-management/mma-environmental

mailto:[email protected]

https://www.marshmma.com/offerings/risk-management/mma-environmental

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