air quality minor source permitting multi-state comparison · 2021. 5. 10. · will backus ♦...
TRANSCRIPT
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Air Quality Minor Source Permitting Multi-State Comparison Dallas, TX ♦ December 3, 2013
Will Backus ♦ Consultant [email protected]
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Presentation Outline • Introduction to Minor Source Permitting • Methods and Assumptions • State Specific Requirements • Permitting Options Comparison • Timeline to Construct Comparison • Conclusions
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Trinity Consultants • Founded 1974 • 400 employees in over
35+ U.S. offices plus Canada, China, and Bahrain
• Regulatory compliance and environmental management services
• Focus in air permitting and regulatory compliance
• ISO 9001 quality program
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Trinity Locations
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Introduction (1 of 3) – Comparison Overview
• Air quality minor permits can vary significantly by state • Scope: Eleven state air quality minor source permitting
programs were compared using multiple metrics for upstream Oil and Gas (O&G) facilities
• Goal: Evaluate the differing state permitting programs for streamlining and efficiency opportunities for industry
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Introduction (2 of 3) – Minor Permits • Through the Clean Air Act (CAA) and EPA, authority for permitting O&G minor
sources is delegated to the states – State New Source Review (NSR) Permits are contained in the State Implementation Plan (SIP)
for projects which do not trigger major (federal) NSR review • Minor NSR permits apply to:
– Any new, relocated, modified, or reactivated source that is not otherwise exempt; or – Source emission increase greater than a certain threshold – Other factors including:
• Potential impact on nonattainment areas • Sources subject to any NSPS or NESHAP federal rule • Sources desiring a limit on “potential to emit”
• Generally, sources required to obtain a permit must do so prior to commencement of construction, modification, or operation
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Introduction (3 of 3) – Goal of Air Permitting
• Balance protection of the environment and human health with jobs-producing economic development
• Ensure that the public has an opportunity to – Be informed of important government actions – Comment/participate/influence in the important
areas • Do so thoughtfully and cost- and time-efficiently
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States Included in Review
StateOil
Production Rank (2012)
Gas Production
Rank (2011)Texas 1 1North Dakota 2 18Oklahoma 5 4New Mexico 6 7Louisiana 7 2Wyoming 8 3Colorado 9 5Montana 12 21Ohio 18 20Pennsylvannia 19 6West Virginia 22 10
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Assumptions (1 of 2)
• Focus on upstream, specifically production facilities
• Onshore facility • Facility emissions
typically range from <10 tpy to ~40 tpy for criteria pollutants
Picture Source: npr.org
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Assumptions (2 of 2)
• Typical Emission Sources at Production Facilities: – Compressor Engines – Storage Tanks – Pneumatic Controllers – Dehydrators – Flares – Equipment Leaks – Truck Loading
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Methods • Analysis metrics evaluated include:
– Construction & Operation Permitting Options
– Exemptions and De Minimis Thresholds
– Timeline to Construct – State O&G Rules and Requirements – Dispersion Modeling Requirements – Public Notice Requirements
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Common Permitting Pathways (1 of 6)
• There were 5 common permitting pathways that were analyzed: – Source and De Minimis Exemptions – Registration/ Notification – Permit by Rule (PBR) – General Permit (GP) – Source Specific State Minor Permit to Construct (PTC)/
Permit to Operate (PTO)
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Common Permitting Pathways (2 of 6)
• Source and De Minimis Exemptions – O&G minor source production facilities may be
categorically exempt or may fall below state De Minimis permitting thresholds
– Recommended that Facility document their exempt status, and in some cases, report exempt status to state authority
– Careful! Many state level exemptions may go away (especially considering emissions reported by the industry on January 13, 2014, states may seriously re-think exemptions)
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Common Permitting Pathways (3 of 6)
• Registration / Notification – One time submittal to the state agency – Registration programs allows a source to acknowledge
that it will comply with all federal and state requirements
• Must submit a short application prior to or following start-up – Cheapest “permitting” option due to short agency
processing times
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Common Permitting Pathways (4 of 6)
• Permit by Rule (PBR) – Facilities that will not make a significant contribution of air contaminants to
the atmosphere if operated or constructed with certain restrictions – Adopted by a state when there are a sufficient number of facilities with very
similar operations, emissions, and activities that are subject to the same standards, limitations, and operating and monitoring requirements
– Functions in place of a permit to construct so long as a source meets qualifying criteria, including emission limitations, conditions for operation and requirements for recordkeeping and reporting
– Does not expire as long as the air pollution source continually meets all of the qualifying criteria
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Common Permitting Pathways (5 of 6)
• General Permit (GP) – GP are similar to PBRs
• GPs are developed to streamline the permitting process for similar facilities
– Difference between GP and PBR • Recordkeeping and reporting requirements are lengthier for GP • A permit is issued which typically acts as both the construction
and operation permit • Source construction may commence upon receipt of the permit
application
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Common Permitting Pathways (6 of 6)
˃ Source Specific State Minor Permit to Construct (PTC) / Permit to Operate (PTO) – Source specific state minor New Source Review (NSR)
permits require full-blown permit application • Typically, generalized permit forms or streamlined
requirements are not included – Source/Facility construction may only commence once
permit is in hand
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State-Specific Permitting Overview
Picture Source: CNBC.com
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When Considering Permitting Thresholds…
• When determining emissions, you may take “credit” for emission reductions using a vapor recovery unit (VRU) or other device if it is inherent to the process
• Watch out! Each state varies in what is considered an “inherent process”
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Texas • Multiple permitting pathways • Permit application is dependent on
geography – Inside Barnett Shale vs. Outside the
Barnett Shale • PBR Thresholds:
– 250 tpy CO or NOX – 25 tpy VOC, SO2, or PM – 15 tpy PM10 – 10 tpy PM2.5
• Case-by-case permits for those that don’t meet Non-Rule Standard Permit or Standard Permit qualifying criteria
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Texas – Barnett Shale Permitting • PBR
– Must submit pre-construction notification – Must submit application 90 – 180 days after operation
depending on level of emissions • Non-Rule Standard Permit (SP)
– Must submit pre-construction notification through STEERS (online e-permitting system)
– Must submit application 90 days after operation – Application is almost identical to PBR – BACT
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Texas – Outside Barnett Shale Permitting
• PBR – Use individual PBRs for engines, flares, other O&G equipment – Sites can voluntarily submit Barnett Shale PBR application
• Standard Permit – Sites can voluntarily submit Barnett Shale Non-Rule Standard
Permit – Must evaluate additional emission limitations on speciated
VOCs for all units except those using natural gas (i.e., engines, heaters)
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Colorado • Standard NSR permits and emission reporting have source-specific
thresholds for attainment and non-attainment areas • Source-specific General Permits, including:
– GP01 for Storage tanks less than 40 tpy VOC – GP02 for RICE with less than 40 tpy NOX – GP07 for truck load out (proposed) – GP08 for condensate, crude oil and produced water; threshold linked
to NSPS OOOO (proposed) • Permit in hand prior to construction • Significant rulemaking proposed in February 2014 will affect
permitting of oil and gas sources
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Ohio • GP12 Finalized in February 2012. Notable
qualifying criteria: – Tank size thresholds – Toxic pollutant emission thresholds – HP restrictions on RICE – All RICE must meet NSPS JJJJ/NSPS IIII
requirements (even grandfathered engines) • BAT analysis required for every emission
unit regardless of permit type or PTE • Ohio EPA implemented expanded pre-
permit construction allowances for minor permits in 2006, allowing installation all the way up to final tie-ins
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Pennsylvania • Exemption 38: Blanket exemption for drilling
phase/production sites replaced with a conditional exemption in 2013 – Limits on VOC emissions; control requirements – Annual Leak Detection and Repair (LDAR) provisions
• GP5 for Gas Production Facilities which do not fall within under the exemption qualifying criteria
• Best Available Technology (BAT) Requirements
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West Virginia • Construction permit required:
– 6 lb/hr or 10 tpy of any regulated air pollutant; or – 144 lb/day any regulated air pollutant; or – 5 tpy aggregated HAP; or – State toxic air pollutant thresholds tripped; or – Subject to NSPS or NESHAP
• G-70A for Natural Gas Wells released in October 2013 • BAT requirements
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Louisiana • Standard Oil and Gas Permit
– No longer issued – Existing standard permits are being converted to MSOG or site-specific minor source permit
• Minor Source Oil and Gas Permit (MSOG) – Questionnaire must be filled out to determine applicability; Emission thresholds including:
• 15 tpy PM10 • 20 tpy VOC
– Must convert to site-specific if no longer qualify for MSOG – Allows for facility modifications with notice if modified facility still covered under MSOG
• Site Specific Minor Source Permit – Regular LA minor source permit must be obtained if conditions of MSOG are not met – Not as flexible on modifications as MSOG
• Regulatory Permit for Emergency Engines – Current proposed rule to extend the regulatory permit to all engines – Must eventually be included in permit, but allows for quick approval for site-specific minor source permits and
Title V permits
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New Mexico
NOINo Permit Part 72 NSR PSD
<10 tpy
10-25 tpy
>25 tpy>10 lb/hr
NSPS, NESHAP
100/250 tpy
• Notice of Intent (NOI) for sources less than 25 tpy criteria (100 tpy VOC)
• Construction permit application for sources greater than 25 tpy criteria (no construction permit required for VOC sources less than 100 tpy)
• General Construction Permits (GCPs) or New Source Review Permits
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Oklahoma • Three oil and gas permitting alternatives exist
beyond a site-specific permit – General Permit for Oil & Gas Facilities – General Permit for Area Source & Small NSPS – Permit by Rule for Oil & Gas Facilities
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Oklahoma – GP for Oil & Gas Facilities • Actual and PTE (after control) < “Major” • Notice of Intent (NOI) to Construct
– Forms to describe equipment and emissions – Site diagram/ map – DEQ letter authorization via permit # 2013-xxxx-NOI
• NOI to Operate – Describe any changes from NOI to Construct – DEQ issues permit # 2013-xxxx-0
• Notice of Modification for any changes • Quarterly engine emissions test • Covers all Federal Subparts
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Oklahoma – General Permit for Area & Small NSPS
• Actual < 40 TPY and PTE (before control) < “Major” • Notice of Intent (NOI) to Construct
– Forms to describe equipment and emissions – Site diagram / map – DEQ letter authorization via Permit # 2013-xxxx-NOI
• Notice of Intent (NOI) to Operate – Describe any changes from NOI to Construct – DEQ issues Permit # 2013-xxxx-O
• Notice of Modification for any changes • NO quarterly engine emissions test • Covers all Federal Subparts
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Oklahoma – New PBR for Oil & Gas • Can cover all Federal NSPS and NESHAP Subparts • Allows taking limits to avoid NSPS or NESHAP requirements
(e.g., can certify <6 tpy VOC for a storage tank to not be subject to NSPS Subpart OOOO)
• PBR Registration Specifics: – NO Notice of modification for changes – NO emission calculations (but keep records) – NO plot plan, map, or flow diagram – NO quarterly engine emissions test – Reduced emission inventory schedule (every 3 or 6 years)
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Wyoming • Allows for startup or modification of upstream O&G facilities prior to
permitting provided certain emission control requirements are met. Does not apply to other facilities, where permit must be in hand.
• Presumptive Best Available Control Technology (PBACT) for new wellsites for tanks, dehydration units, pneumatics, and engines; standards are region specific (depending on basin) – PBACT requirements and guidance first published in 1999 – Sites with known emissions must obtain a pre-construction permit
• A complete permit application or waiver application must be filed within 60-90 days of date of first production (DOFP) depending on location; no de minimis thresholds.
• Waivers: – For small/insignificant sources of emissions (small engines, pumps, production
sites with low total emissions)
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Montana • Any project which has the potential to emit more than 25 tpy of any
pollutant must obtain an air quality permit prior to construction • Registration program for production facilities (adopted in 2006)
– Registration application must be submitted no later than 60 days after DOFP
– PBACT including VOC control requirements for any unit with a potential to emit of 15 tpy or more; avoided prescriptive control requirements to allow flexibility in control options
– LDAR and additional recordkeeping requirements
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North Dakota • State and Industry worked together to create Bakken-
specific guidance in May 2011 – Objective is to help ensure production facilities comply
with VOC emission regulations – Perform emission calculations, and within 60 days, install
additional controls as required – Submit a registration packet within 90 days of the DOFP – Registration package includes one form, gas analysis, and
summary pages for the North Dakota Department of Health Guidance Workbook
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Summary of Alternative Permitting Pathways
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Timeline to Construct • Important variable in any project involving air
permitting – Trinity examined possible permitting pathways for
O&G production facilities in each state in the study – Relied on previous Trinity permitting experience in
each state – The Timeline to Construct was plotted for every state
based on the two most likely permitting pathways in that state
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Timeline to Construct
Reg.
PBR (Option1)
Exempt
Reg.
GP
Reg.
PBR
Waiver
GP
GP
GP
GP (Option 2)
GP
PTC
PTC
GP
GP
PTC
PTC
PTC
PTC
0 30 60 90 120 150 180 210
ND
OK
PA
MT
LA
NM
TX
WY
WV
OH
CO
Timeline to Construct based on Permit Options
Permit Option 2 (Days) Permit Option 1 (Days)
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Permit Application Requirements: Modeling
• Modeling is typically a rare requirement since many upstream facilities are largely VOC emissions only
• Two most common pathways to dispersion modeling at production facilities are:
– Emergency generator emissions – Toxics modeling (H2S)
• TX: SCREEN3 modeling for engines (NO2) • OH: Significant Emission Rates (SERs) including
for toxics • CO, NM may require modeling for NSR permit
applications • WY may require modeling on larger case-by-
case projects
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Permit Application Requirements: State BAT or BACT
• Best Available (Control) Technology Requirements can be an added step in the permitting process, or may be a presumptive step in order to begin well production
• BAT: Found in WV, PA, OH rules • Presumption BACT (PBACT): Found in
WY, MT, ND
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Permit Application Requirements: Public Notice
• For permitting actions that trigger public review, a 30 day review and comment period is typical
• States in review where public notice is typically required for O&G production facilities include: • WV, OH, NM, LA
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Conclusions (1 of 2)
• Many states are adopting streamlined permitting approaches for O&G production facilities in response to increased O&G production and federal requirements – Many states are in the process or will likely update rules in response to NSPS
OOOO/ NESHAP HH/HHH • Well registration programs combine sufficient guidelines with an industry
friendly permitting process • Regional similarities (EPA Regions/ Basin Regions)
– WY, MT, ND (Region 8) require PBACT and well registration or a waiver/permit application
– PA, WV (Region 3), OH (Region 5) require BAT and have General Permits for production facilities
– NM, TX, OK, LA (Region 6) do not show as many major similarities • However, Permit by Rule and General Permits are the norm
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Conclusions (2 of 2)
• Tier 1 – “High likelihood of a quick permitting process, registration, or exemption”
• Tier 2 – “In many cases a production facility will fall under a streamlined permit’s qualifying criteria”
• Tier 3 – “Higher likelihood of full permit application along with less construction allowances prior to receiving permit”
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Further Research Topics • Update state permitting comparison after
responses to NSPS OOOO • Include other O&G upstream facility types
(compressing, gathering, etc.) • Include permitting information on additional
states (CA, AK, etc.)
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Questions?