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Strategic Air Planning:Is the time for a PAL
here?
NCASI 2011 Northern Regional
Wausau, WI
May 19, 2011
John EganAll4 Inc.
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Agenda Mounting air pressures Mill needs and expectations Major new source review struggles Importance of strategic planning Considerations for an advantage
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Air Pressure NAAQS Boiler MACT/CISWI/NHSM Pulp & Paper MACT/Residual Risk GHG Regulation BART/Regional Haze Utility MACT/NSPS Multi-pollutant Rules Black Carbon More…
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Air Pressure Common theme:
For most facilities future emissions will decrease from historic actual levels as a result of new and developing air regulations and standards, regardless of growth in productivity.
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Mill Needs Ability to change
operations/equipment quickly and as needed
Long range targets for planning:• Internal -
production/energy/economics• External - rule driven costs to
comply Clarity in regulatory requirements
particularly for permitting
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New Source Review NSR reminder:
• Attainment Area = Prevention of Significant Deterioration (PSD), allowed to increase actual emissions but always a challenge
• Non-attainment Area = Non-attainment New Source Review (NNSR), project has to improve area air quality
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PSD Implementation Quick PSD implementation history for
mill changes:• Old/old way (pre-reform)• Old/new way (post-reform)• New/new way (current & post 1-hr
NAAQS)
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Old/Old PSD Pre-NSR reform:
• Actual-to-potential test• New limits to reduce PTE and avoid
PSD• BACT main driver if PSD triggered• Air modeling a challenge for some
pollutants but manageable• Implementation evolved over 25
years
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Old/New PSD Post-NSR reform:
• Actual-to-projected actual test• Better baseline/no new limits
(supposedly)• Required to track relative to
projections• Formal guidance evolved but limited• If PSD - BACT still a driver and air
modeling still a challenge for some
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New/New PSD Current & post 1-hr NAAQS:
• Still actual-to-projected actual test• Concern w/excluded emissions• How to handle project on project• Watch out for netting• If PSD - air modeling more critical
than BACT and can alter project design
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Future Planning Strategic planning for facility future
must consider implications of both new air rule applicability and air permitting implications:• New rules likely require facility
changes• No exemption for pollution control
projects• Permitting issues can impact
project design
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Future Planning Air issues must be integrated into
facility operations planning Result will be same old push/pull for
mill projects whether needed or required:• PSD applicability analysis• Potential impacts to project design,
cost, schedule• Confusion and frustration
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PAL Option “Plantwide Applicability Limitation”
(PAL) is an available regulatory option that can potentially ease air permitting PSD cycle
Federal PSD rule provides for PALs based on historic actual emissions
PALs are pollutant specific and could be a critical part of a Mill strategic plan
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PAL Advantages For a facility with a PAL permit that
maintains emissions below PAL, physical changes and changes in method of operation are not major modifications and do not require approval under PSD
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Why a PAL Now? PALs historically worked for relatively
simple industries with limited sources and where technology was driving emissions lower per unit of production
New air quality world we are in is forcing mills to realization that future emissions will be lower per unit of production driven by rules, standards, permitting, technology…
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Why a PAL Now? Must be able to track and report
emissions against PAL Historically mills saw too many
sources and not enough data to justify a PAL
Data and tools now available for demonstrating compliance due to other rule activities (e.g., ICR work)
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Establishing a PAL Same baseline actual emissions used
in PSD applicability assessment:• Adjust for current applicable
requirements• Add PSD significance threshold• Justify PAL and provide method of
compliance
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PAL Concerns PAL established for 10 year period PAL can be adjusted down to account
for new applicable requirements Getting out of a PAL can have serious
ramifications State/local air construction permits
may still be required
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PAL Planning Approach Develop historic mill-wide baseline
emission rates and potential PAL levels
Address potential NAAQS issues Consider new rules, mill operations
plans, potential energy efficiency improvements, new technologies, low hanging fruit for emissions reductions
Weigh value of PAL for each pollutant
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Final Thoughts For typical mill projects PSD is no
longer a consideration under a PAL For planning mill now has a clear
bright line it can manage operations to
Project timing may result in competitive advantage
Future second guessing by agency of PSD applicability decisions and potential enforcement issues off the table
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Questions?
All4 Inc.2393 Kimberton Road
P.O. Box 299Kimberton, PA 19442
610.933.5246 x14 and x20
www.all4inc.com