Workshop C Best Practices in Best Practices in Air P Air - - PDF document

Workshop C

Best Practices in Best Practices in Air P Air Permitting & Compliance rmitting & Compliance

Key Strat y Strategies f es for Expe r Expedit dited P d Permitting, Cor rmitting, Corporat

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e Audits and Insights on th dits and Insights on the Decision-Making Pr e Decision-Making Process

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to to D Dete termine W What T Type o

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Permit A Action t to T Take ke for a Ne r a New Pr w Project or Modification

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Wednesda dnesday, July 2 July 24, 20 , 2019 19 2:45 p.m. t 2:45 p.m. to 4:15 p.m. 4:15 p.m.

Biographical Information

Robert F. Hodanbosi, Chief, Ohio EPA, Division of Air Pollution Control Lazarus Government Center, 50 West Town Street, Columbus, OH 43215 614.644.2270 Fax: 614.644.3681 bob.hodanbosi@epa.state.oh.us Bob Hodanbosi became chief of the Division of Air Pollution Control (DAPC), Ohio Environmental Protection Agency (Ohio EPA) in September 1992. His current duties include being responsible for the air pollution control program for the state of Ohio and development of the programs needed to comply with the Clean Air Act Amendments. In 2004, Bob was selected to represent state permitting authorities on the Title V Permit Performance Task Force that was formed by the U.S. EPA's Clean Air Act Advisory Committee. Bob has also had the

• pportunity to testify at U.S. House and Senate committees on Clean Air Act implications for facilities in

Ohio. From May 1987 to September 1992, his position was assistant chief of DAPC and manager of the Air Quality Modeling and Planning Section, DAPC, Ohio EPA. From April 1978 to May 1987, as manager of the Air Quality Modeling and Planning Section, his main duties included: development of the technical support for air pollution control regulations for criteria air pollutants; atmospheric dispersion modeling; air quality designations under Section 107 of the Clean Air Act and, development of new source review

• procedures. Since the 1980's, Bob has represented Ohio EPA on the Ohio Coal Development Office,

Technical Advisory Committee. From January 1977 to April 1978, his position was supervisor of the Environmental Assessment Unit, DAPC, Ohio EPA. The main responsibilities of this position involved the supervising of all air quality evaluation and atmospheric dispersion modeling activities for DAPC. From June 1973 to December 1976, he held a position in the Northeast District Office/Engineering Services Section, DAPC, Ohio EPA. The main function of this position involved the engineering review of air pollution permit applications. Bob is a member of the American Institute of Chemical Engineers and Air & Waste Management Association, and is registered as a Professional Engineer in the state of Ohio. Bob has lectured extensively on topics relating to the requirements under the Clean Air Act and the controls needed to meet air quality standards. Bob received his Masters of Science degree in Chemical Engineering at the Cleveland State University in 1977, and a Bachelor in Chemical Engineering at the Cleveland State University in 1973. In addition, he completed post-graduate courses in fluid mechanics and turbulence at the Ohio State University. Adam Ward, Vice President Environmental Affairs, Sustainability and Energy Policy American Municipal Power, Inc., 1111 Schrock Rd. Ste. 100, Columbus, OH 43229-614.540.0946 award@amppartners.org

• Mr. Ward directs the Environmental Affairs, Sustainability and Economic Development efforts at

American Municipal Power, Inc. Tasked with maintaining regulatory compliance across AMP’s diverse generation fleet, his group handles all permitting, compliance measures, audits and interactions with both state and federal resource agencies. Adam spearheads the development and implementation of policies designed to minimize risks and maximize asset value. He also oversees AMP’s sustainability reporting and programs, which include a green power-purchasing program, carbon management program, REC certifications, and distributed energy resource assistance. Prior to AMP, Ward held various positions at Ohio EPA managing compliance, enforcement, permitting, and state implementation planning programs. Throughout his 22-year career, he has participated in countless improvement efforts focused on developing and implementing practical cost-conscious solutions to complicated regulatory challenges. Ward holds a bachelor’s degree from Bowling Green State University and a master’s degree from the University of Findlay.

Bob Hodanbosi Chief, Division of Air Pollution Control Ohio EPA July 24, 2019

 Type of permit needed – if any  Major/Minor  NAAQS Status  Planning Ahead  Public Participation  Resources

 A corporate vice‐president comes to your facility to

announce that the company is investing several million dollars at the plant for increased production

 Being the facility EHS contact, you are given the

responsibility to obtain the “necessary approvals”

 What steps should you be taking? What questions

should you be asking?

 What kind of project is discussed – new source –

changes to existing equipment –production will increase, but will emissions?

 Develop plan on how to address regulatory

requirements/ including need for wastewater permit/ 401 permit, if needed

 Gather as much information on type and quantity of

air emissions – existing/future

 Find out projected construction schedule  Contact control equipment suppliers, if needed

 Determine if permit is needed and the type of

permit that may be most appropriate for your situation.

 Make sure exemptions, permit‐by‐rule and general

permits are reviewed

 Identify all activities, processes, and air contaminant

sources that are part of the project.

• Will emissions from related operations increase?
• Will any processes or equipment be shutdown?
• Will any equipment be substantially modified or

reconstructed?

• Is the project part of a larger project that will be

“phased” over time?

 Determine potential emissions and/or emission increases

from the project

 Critical step – calculate the emission levels from a project

for major New Source Review applicability – will determine what regulatory path must be taken for permit

 “Potential to emit” (PTE) means the maximum capacity

• f an emissions unit or stationary source to emit an air

pollutant under its physical and operational design

 Depending on PTE levels

• May trigger major new source review – Prevention of

Significant Deterioration/ Nonattainment NSR

• May need operating restrictions to become “synthetic

minor”

 Determine attainment status with National

Ambient Air Quality Standards (NAAQS) – for major NSR purposes

 Considering hiring outside consultant for

assistance on permit application – specifically ask what experience they have had in

• btaining major new source review permits

 Definitely look for outside assistance with air

quality modeling work

Pollutant Primary Source Attainment Status

Carbon Monoxide cars and trucks Attainment Nitrogen Oxides any type of combustion, utilities, industrial boilers, vehicles Attainment Lead individual industrial facilities Isolated measured violation and attainment/maintenance Sulfur Dioxide coal fired power plants Isolated nonattainment and attainment/maintenance Ozone sources of NOx and hydrocarbons, including cars, trucks, utility boilers, painting operations, refineries Columbus, Cincinnati, and Cleveland areas designated nonattainment, Columbus attaining (in process of redesignation) Particulate Matter coal fired boilers, cement plants, steel making operations Attainment/ Isolated maintenance

Sulfur Dioxide Nonattainment areas PM2.5 Nonattainment Area

 8‐hour standard – 0.70 ppm (avg.

• f 4th high over 3‐yrs)

 US EPA finalized non‐attainment

areas effective August 3, 2018

• Attainment demonstration due

August 3, 2020

• Ohio’s areas designated

marginal non‐attainment (attainment date‐ August 3, 2021)

 Columbus in process for

redesignation

Implementation Timeline

 Identify any existing air permits that may be

impacted by the project.

• May need a PTI/PTIO modification

 Identify any permit exemptions.  Identify any new emissions units that will need

air permits.

• Will the new emission units fall under the NSPS
• r NESHAPS?

 Look at general permit list

 General permits can reduce turnaround time  Source categories covered:

• ◾Aggregate Processing
• ◾Boilers
• ◾Diesel Engines (Compression Ignition Internal Combustion

Engine)

• ◾Digester Operations
• ◾Dry Cleaning Operation
• ◾Mineral Extraction
• ◾Miscellaneous Metal Parts and Products Coating Lines

 Source categories covered:

• ◾Natural Gas Compressor Stations (New)
• ◾Oil and Gas Well‐site Production Operations
• ◾Paved and Unpaved Roadways and Parking Areas
• ◾Paved Roadways and Parking Areas
• ◾Ready Mix Concrete Batch Plants
• ◾Storage Piles
• ◾Tub Grinder

 All of the GPs have “qualifying criteria” ‐ outlines

exactly the type of source that has the general permit issued.

 Need to review all of the terms and conditions to

ensure that the facility can operate within the developed terms and conditions

 GPs should be processed within 45 days from

submittal

 GP is voluntary – if operation cannot meet specified

conditions, then apply for the standard PTIO

 Steps to obtain an Ohio EPA air permit

• Contact the local air agency/district office to

discuss the proposed project and air contaminant sources.

• Complete and submit a PTI/PTIO application ‐

When to submit application depends on scope of project

 Steps to obtain an Ohio EPA air permit

• Application is reviewed for completeness within 14

days – submit any missing information and/or documentation promptly.

• Local office determines if project/sources will

comply with applicable regulations, drafts permit terms and conditions

 Steps to obtain an Ohio EPA air permit:

• Local office sends permit recommendation to Ohio EPA

Central Office for review, approval, and issuance.

• Permit may be issued as draft (30‐day public comment

period) or as a final PTI/PTIO.

• Issuance of final PTI/PTIO allows you to begin

construction and start operation.

 The district office/local air agency will work with you to

meet your needed timeframe……..but need to be realistic

 Minor source – in most cases about 2 months  Synthetic minor – must be issued as draft – usually about 4

months after a completed application

 Major sources – we try for 6 months after complete

application– maybe longer depending on the complexity of permit

 For major sources a draft permit with 30 day public

comment period is needed.

 For a “synthetic minor” source ‐ a draft with 30 day

comment period is also needed.

 For “controversial” sources

 When Ohio EPA knows that there is significant

public interest and there will be several requests for a hearing – for example, any facility that is proposing to burn municipal solid waste in some way

 For other “controversial” sources  Hearing must be scheduled at least 30 days in

advance‐ so combined with draft can delay permit issuance

 Sometimes facility requests that the public hearing

be held at the beginning of comment period so as not to lose time.

 Call/email your permit contact at the district office/local air

agency about your project and permit plans.

 Identify project timeframes and permitting expectations with

local air agency and Ohio EPA in advance.

 Include supporting information for rule applicability decisions

• r emission estimates in the permit application.

 Ensure that the design and capacity of the equipment or

process you are planning to install accurately reflects what will be installed.

 Promptly answer follow‐up questions or requests for more

information from Ohio EPA.

 Monitor the progress of your permit application review.  Request to see drafted permit terms from the district

• ffice/local air agency before they are sent to Ohio EPA

Central Office for review and issuance.

 Submit comments during public comment period if a draft is

issued.

 Consider scheduling a public hearing for time‐sensitive

projects.

Communication!

 Contact Mike Hopkins or Bob Hodanbosi if you feel

that the permit is getting bogged down – we are here to help!

 Yes. Activities not associated with construction of

the new source.

 OAC Rule 3735‐31‐33  Activities that are not considered “construction”  Site preparation – knocking down old buildings,

putting in temporary roadways, temporary utilities, installing temporary storage for construction equipment, excavation for test borings

 Can I progress further on the source? Maybe – in isolated

situations

 OAC Rule 3735‐31‐33  Can do additional work with minor sources  Must be a true “minor” source  Additional activities can be completed, but sources must

not be operational before the permit is issued – for example, final wiring or plumbing is not connected, last piece of equipment on source is not put in place, etc.

 All work completed is at the company’s risk

 Construction Permits remain priority for agency  Ohio EPA specifically focused on resolving some of

the “older” permits

 Goal is to have no construction permits older than

180 days – have made progress but not yet reached goal

• Approximately 95% of permits issued in 180 days

 The permit workload is continually reviewed

• Permit applications may be assigned to a different district
• ffice or local air agency as needed.

 Continuing to utilize the rush list to help meet

company goals – lets us know your needs

 Company contacts Mike Hopkins (person in charge of

permitting) – ask to be put on rush list

 Makes sure staff are aware of the timing needs and

whether additional staff is needed for processing permit

 Helps ensure permit issuance meets company

requirements

 Can be paired with periodic biweekly calls to monitor

progress on permit review

 Contact district office or local air agency for

questions related to the permit

 If you need help completing the application and

are a small business, the Office of Compliance Assurance and Pollution Prevention can assist ‐ (800) 329‐7518

 Robert Hodanbosi, P.E.  Chief, Division of Air Pollution Control  Ohio EPA  50 West Town St. Suite 700  Columbus, Ohio 43215  614‐644‐2270  robert.hodanbosi@epa.ohio.gov  www.epa.ohio.gov

Ohio Permitting Workshop C. Best Practices in Air Permitting & Compliance

Adam Ward – VP Environmental Affairs, Sustainability and Energy Policy

July 24, 2019

Topics

• Context
• Permit issued. Now what?
• State/Federal Developments
• Climate
• Lessons and next steps

American Municipal Power (AMP)

• Non‐profit wholesale power supplier and services provider for 135

member municipal electric systems; members are units of local government

• Members located in 9 states – Ohio, Kentucky, Pennsylvania,

Michigan, Virginia, Maryland, Delaware, West Virginia, and Indiana – and represent more than 650,000 customers

• Formed in 1971
• Governed by a 21‐member Board of Trustees made up of member

system officials

• Headquartered in Columbus, Ohio, with 170+ total staff
• Total assets of more than $6.7 billion with a mix of generation

technologies; diverse resource portfolio

AMP - Generation Portfolio

HydroPower State Meldahl ‐‐105 MW Kentucky Greenup ‐‐ 34.1 MW share Ohio Belleville ‐‐ 42 MW West Virginia Willow Island ‐‐ 44 MW West Virginia Cannelton ‐‐ 88 MW Kentucky Smithland ‐‐ 76 MW Kentucky Member Units ‐‐ 61.8 MW Ohio, Michigan West Virginia, Virginia Fossil Fuel State Natural Gas ‐ Fremont NGCC ‐‐ 675 MW Ohio Coal – Prairie State ‐‐ 368 MW share Illinois Gas/Diesel – distributed gen. – 324+ MW Ohio

• 51 Diesel units at 13 sites
• 9 Combustion Turbines at 6 sites
• More units coming online

Other Generation State Solar Phase I – Napoleon Facility ‐‐ 3.54 MW Ohio Solar Phase II ‐‐ up to 80 MW (PPA) Multiple states Landfill Gas ‐‐ 64 MW (PPA) Ohio AMP Wind Farm ‐‐ 7.2 MW Ohio Blue Creek Wind Farm ‐‐ 52 MW (PPA) Ohio

Regulatory Oversight

Scope of regulatory reach at AMP:

• 67 permits across portfolio including 58 air

permits (TV, SM, minor)

• 190 regulated units (more coming)
• AMP provides contract environmental

services to numerous members

• Monitoring and advocacy of state and federal

agencies on behalf of members

Permit process

• Complete the application to the best of your

ability

• Ask for help if needed

– Consultants – Ohio Compliance Assistance Program

• Communicate with permit writer and make

yourself available

• Ask for a pre‐draft/issuance version of the

permit

– Review, speak up and ask questions

Permit issued. Now what?

• Real work begins
• Read your permit
• Does it align with your pre‐issuance review?
• Draft issuance is an opportunity
• Mistakes can be corrected
• Recognize when it will take effect (post‐

modification, immediately, post installation)

Permit issued. Now what?

• Operational restrictions, monitoring, recordkeeping,

reporting, testing

• Inform Corporate, Operations, Management, Budget

folks, etc. – Who does what? – Redundancy? – $ – Accountability?

• If staged installation/modification then identify

tracking so permit requirements are followed

Permit issued. Now what?

• Audits

– Internal audits are extremely valuable – Strategic plan for assets

• Scheduling Audits

– Have a plan (checklist, timing, process) – Be transparent PRIOR to initiating – Time it to minimize impact on Operations

• Report and follow through

Case Study #1 - Modifications

• Modify 17 permits statewide

– Multiple DO/LAA jurisdictions – Utilize new Engineering Guide #88 – Goal was uniformity in permits, enforceability, inspections, etc.

• Clear communication with OEPA CO‐DAPC

– Point person for internal coordination – We provided suggested permit terms

• Result: Successful issuance within deadlines

Case Study #2 – New Sources

• New nearly identical sources at three sites
• Environmental work included in purchase

contract

– All inclusive? – Detailed listing of obligations?

• Review and edit of air applications
• Ohio EPA patient and accommodating

Case Study Lessons

Ask contractors questions at proposal stage if including “environmental work” Contract scope should be specific Trust but verify Be clear and honest about timing needs with the Agency Look for voluntary limit citation [31‐05(F)] Communication with Agency is key

Guidance to help

Potential‐to‐Emit Engineering Guides #80, 86, 87, 89 Engineering Guide #88 MACT/GACT Office Memo: BAT Guidance for permits (incorporation of Senate Bill 265) Ohio Compliance Assistance Program Ohio EPA website with issued permits

Ohio EPA – Air Program

• Air permit program

(stable and predictable)

• Compliance/Enforcement program

(pragmatic and reasonable)

• Risk factors: Turnover, knowledge transfer, federal

unfunded mandates (i.e. funding to implement the ACE)

• eBusiness Center

Ohio EPA

• New Director

– Business relations – Strategic goal setting – Inspector Training Program (yr 3)

• Focus on consistency across state
• Expanding to Local Air Agencies

– eBusiness Center – Aware of inevitable turnover

Federal Activity

• Behind the scenes

Restructuring and attrition  Process adjustments  Fundamental policy change whiplash?

• Outward facing

 Few new rules  Few rule updates  Cooperative Federalism

Affordable Clean Energy (ACE) rule state plan submittal

Climate

• Increasing attention on climate/GHG emissions
• Broad direction in conversations and actions is

towards GHG reductions

Climate

• States, private industry, investors are driving

significant reductions in GHG emissions

• Natural gas/new energy economy driving coal plant

retirements

• Technology changes are rapidly reducing the cost

for renewables including wind, solar and battery sotrage.

Climate – States and Municipalities

• United States Climate Alliance

– 24 bipartisan governors committing their states to implement policies in pursuit of Paris Agreement of reducing GHG emissions by 26‐28% below 2005 levels by 2025

• Clean Energy Mandates

– Seven states (Hawaii, California, New Mexico, Nevada, Washington, New York, and Maine) – 100% carbon free energy mandates by 2050 or sooner

• C40 Cities/Cities Climate Challenge

– A network of 94 cities around the world (including 12 in the US) banding together to meet the goals of the Paris agreement – Cities Climate Challenge is a network of 25 US cities across the country pushing for a carbon neutral future – Cleveland 100% renewable pledge by 2050 – Cincinnati 100% renewable pledge by 2035

Climate - Markets and Insurance

• Shareholder activism, sustainable and “socially responsible” investing is driving

capital into new industries and divestment campaigns for high carbon intensive industries, i.e., pension funds, sovereign wealth funds, and university endowments

• Pressure is mounting on the Securities and Exchange Commission to require

publicly traded companies to disclose potential risks of a changing climate and regulatory risk exposure for carbon intensive industries

• Ratings Agency, Moody’s, is creating a scoring framework to assess individual

companies’ “carbon transition risk”, which may eventually impact credit ratings and interest rates

• Insurance actuaries are increasingly focusing on climate risks, which may impact

insurance affordability

Climate – Corporate Carbon Reduction Goals

• Nearly 50% of Fortune 500 companies set carbon reduction targets – some

are even forcing emissions reductions up and down their supply chains

• Some manufacturers and electric utilities have committed to procure or

produce 100% clean energy within the next three decades…or sooner

Make its new passenger car fleet carbon-neutral by 2039 Reduce supply chain carbon emissions by 1 gigaton between 2015-2030 Reduce absolute GHG emissions across all global owned and operated facilities by 50 percent from 2015 levels by the end of 2020 Use 100 percent renewable energy in all Nike owned and operated facilities globally by 2025 S

• urce 100 percent of electricity from

renewable resources, with an interim goal of 50 percent by 2025 Reduce GHG emissions 30 percent below 2017 levels by 2030 including supply chain

Power Company Goals

U.S. Generation by June 2022

Climate

• Environmental staff are well suited to track metrics,

goals, etc.

• Many already reporting GHG emissions
• Likely that you would be relied on as either an

expert, resource or assigned tasks

• Expand your knowledge if you may be impacted
• Stay plugged‐in to:

– Decision making at state/federal regulatory agencies – Climate/sustainability activities

Approach to Compliance

• Strive to operate in compliance at all times
• Value predictability and transparency
• Build trust and relationships with regulatory

agencies both at the state and federal level

Key Permit Lessons

• Decades of doing more with less means no shortage
• f challenges; turnover
• If you have questions, ask them
• Always be polite, persistent and organized
• When working with your consultants, be clear,

involved and granular when establishing expectations

• Attention to climate / energy is increasing
• Expand your knowledge if you may be impacted

For questions or further information: Adam Ward (c) 614.325.4662 (o) 614.540.0946 award@amppartners.org