NOx RECLAIM

Working Group Meeting

April 29, 2015

4/29/2015 1

Agenda

• BARCT Analysis

– Analysis Summary

– Useful Life

– Emissions Reductions/Remaining Emissions

– Cumulative BARCT Cost Projections

• Shave Methodology & Estimation

• Shave Approaches Under Consideration Consideration

• Other Considerations

– Energy & Efficiency – AB32 Integration

– NSR RTC Holding Requirement

• Schedule/Next Meeting

4/29/2015 2
Overall BARCT Methodology

• Technical Feasibility

• Cost Effectiveness

– I tl ncremental C t os Eff ti ec veness B d eyon 2000/2005 2000/2005

BARCT

– Based on 2011 Activity Activity

– Set Cost Effectiveness threshold for individual pieces

of equipment at $50 000 ,

4/29/2015 3

BARCT Analysis Time Line

6/2013 9/2013 7/2014 4/2015

2 months

Survey

11 months

Staff’s BARCT Analysis

8 months

C lt t ’ A li & St ff’ R i Staff s BARCT Analysis

• Analyzed Survey Responses

• Researched Feasible BARCT

• Contacted Manufacturers for Costs

Consultants’ Analysis & Staff’s Review

• Space Assessments

• Consultants’ Independent Analyses

• Reviewed Consultants’ Analysis • Conducted Emission Reductions

and Cost Effectiveness Analyses

• 7 Working Group Meetings

• Several Meetings w Facilities

y

• 2 Working Group Meetings

• Several Meetings w Facilities

4/29/2015 4

Several Meetings w Facilities
Useful Life of Control Equipment

• SCAQMD Assessment of SCRs:  25 Years

• Existing Basin Refinery Refinery Profile Profile

– 27% Refinery Combustion Equipment Have SCRs >25 Years

– 36% Refinery Combustion Equipment Have SCRs 20‐25 Years

• Other Air Districts

— Bay Area: 20 Years for SCR in Rule Development

BACT Guidelines: Guidelines: 10 Yrs. Unless Shown to Be Different Different

e.g. Refinery’s SCR for Heaters Dated Back in 1984   

— Santa Barbara: 25 Years Supportable.  SCRs Installed in 1980‐90’s

— Florida: Florida: 20 – 25 Years BACT Analyses Analyses for SCR Permits Permits

• EPA OAQPS: 20 Years

• SCR Manufacturers: Manufacturers: 20‐25 Years

4/29/2015 5

Useful Life of SCAQMD NOx Control

Equipment

Rule Control Control Technology Technology 15 ≤ Yrs. 20 Yrs. 25 Yrs.

1121 Ultra Low NOx Burner X

1146.2 Ultra Low NOx Burner X

1147 Ultra Low NOx Burner X

1110.2 Biogas SCR X

1111 Ultra Low NOx Burner X

1146 SCR X

RECLAIM SCR, Scrubber X

1105.1 ESP X

1156 B h ag ouse X

4/29/2015 6
Emission Reductions Reductions & Remaining Remaining Emissions Emissions

Total 2011

Emissions 2000/2005   

2011

Emissions   

at

/

2015

2011

Emissions

at 2015

2023

Emission

Reductions

Beyond

2023

Emission at

2015

Units Emissions

(tpd) BARCT 2000/2005

BARCT      

(tpd)

BARCT at 2015

BARCT      

(tpd)       

Beyond

2000/2005

BARCT      

(tpd)

BARCT     

with GF = 1

(tpd)

FCCUs/CO Boilers 8 1.08 85% control 0.60 2 ppmv 0.17 0.43 0.17

b / 62.27 Turbines/Duct Burners 21 1.33 62.27

lbs/mmcft 4.86 2 ppmv 0.72 4.14 0.72

Coke Calciner 2 0.55 30 ppmv 0.25 5 ppmv 0.05 0.20 0.05

SRU/TG Incinerators 17 0.43 RV 0.43 2 ppmv (or

95% control) 0.11 0.32 0.11

Boilers/Heaters, > 110 mmbtu/hr 73 4.88 5 ppmv 0.82 2 ppmv 0.38 0.44 0.38

B/Heaters >40‐110 mmbtu/hr 69 2.00 25 ppmv 0.97 2 ppmv 0.45 0.52 0.45

B/Heaters, 20‐40 mmbtu/hr 52 0.45 9 ppmv 0.10 n/a 0.10 0.00 0.10

B/Heaters B/Heaters <20 mmbtu/hr 18 0 06 . 12 ppmv 0 02 . n/a 0 02 . 0 00 . 0 02 .

Other Major/Large Sources 5 0.11 RV 0.10 n/a 0.10 0.00 0.10

Other Process Units n/a 0.60 RV 0.60 n/a 0.60 0.00 0.60

Total 265 11.50 8.76 2.71 6.06 2.71

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Emission Reductions and Remaining Emissions i i

POWER PLANTS*

# of

Facilities

2012

Emissions

(tpd)

2000/2005 BARCT

2012 Emissions

at BARCT/BACT

(tpd)

2015 BARCT

2012

Emissions at

2015 BARCT

(tpd)

Emission

Reductions

Beyond 2005

BARCT (tpd)

Growth

Factor

2023

Emissions at

2015 BARCT

(tpd)

TOTAL 30 2.50 P/O or BACT level 2.35 No new BARCT 2.35 0 0.8683 2.04

# of Units

2011

Emissions

(tpd)

2000/2005 BARCT

2011 Emissions

at 2000/2005

BARCT (tpd)

2015 BARCT

2011

Emissions at

2015 BARCT

(tpd)

Emission

Reductions

Beyond 2005

BARCT (tpd)

Growth

Factor

2023

Emissions at

2015 BARCT

(tpd)

NON‐POWER PLANTS

Boilers 16 0.08 9‐12 ppm 0.07 No new BARCT 0.07 0 0.96 0.07

Heaters 3 0.01 60 ppm 0.01 No new BARCT 0.01 0 0.93 0.01

Furnaces >150 MMBTU/hr 2 0.49 45 ppm 0.70 9 ppm 0.14 0.56 0.93 0.13

Furnaces 10 0.31 45 ppm 0.31 No new BARCT 0.31 0 0.93 0.29

Glass Melting Furnaces 2 0.30 1.2 lb/ton 0.30 80% Reduction 0.06 0.24 1.18 0.07

Sodium Silicate Furnace 1 0.11 6.4 lb/ton 0.11 80% Reduction 0.02 0.09 1.21 0.02

Gas Turbines Turbines (non‐OCS) 14 1 43 . 61 45 . lb/mmcf lb/mmcf 1 24 . 2 ppm 0 21 . 1 04 . 1 10 . 0 23 .

Gas Turbines (OCS) 6 0.49 61.45 lb/mmcf 0.12 No new BARCT 0.12 0 1.46 0.18

ICEs (non‐OCS) 25 0.35 217.36 lb/mmcf 1.05 11 ppm 0.21 0.84 1.03 0.22

ICEs (OCS) 6 0.03 217.36 lb/mmcf 0.11 No new BARCT 0.11 0 1.46 0.16

Cement Kilns** 2 1.61 2.73 lb/ton 1.61 0.5 lb/ton 0.32 1.29 0.9 0.29

TOTAL 87 3 60 . 4 02 . 1 26 . 2 77 . 1 37 .

Other Sources*** 3.12 3.12 3.12 4.06

TOTAL NON‐REFINERY 9.22 9.49 6.73 2.77 7.47

*This includes all power plants in RECLAIM.  Calendar year 2012 AER reported fuel usage was used to calculate emissions at BARCT/BACT level.

**CPCC's emissions and emission reductions have NOT been included in the totals, this facility did not have any emissions in CY2011. CY2008 emissions were used to

4/29/2015 8

CPCC s emissions and emission reductions have NOT been included in the totals, this facility did not have any emissions in CY2011.  CY2008 emissions were used to

calculate the emission reductions.

***Includes Non‐Refinery, Non‐Power Plant Process Units in the Top 37 and all other sources

outside the Top 37.
BARCT Costs for Refinery Sector

800

BARCT in All 5 Categories

6.06 tpd NOx Reductions     $741 Million     $13 K per ton NOx Reduced

2017–2022 Implementation Synchronizing with Turnaround Schedule

600

700

800

Million)

G T bi FCCU

Gas Turbines + FCCUs + Coke Calciner

+ Boilers Heaters

5.7 tpd, $647 M

300

400

500

ve PWV ($

M

Gas Turbines + FCCUs

+ Coke Calciner

4.8 tpd, $405 M

100

200

300

Cumulati

v

Gas Turbines

4.1 tpd, $76 M

Gas Turbines + FCCUs

4.6 tpd, $339 M

0

4 4.5 5 5.5 6

Cumulative Emission Reductions (tpd)

p , $

4/29/2015 9

Average numbers are used in this graph to include all feasible control technologies and

reconcile estimates from various sources of information

Cost Effectiveness Summary

Source Category

Average DCF

Cost

Effectiveness

($/ton)

Average LCF

Cost

Effectiveness

($/ton) ($/ton)

Refinery Gas Turbines 1.9 3.3

Metal Heat Treating Furnaces >150MMBTU/hr 3.4 5.5

Sodium Silicate Silicate Furnace Furnace 4 8. 7 6.

Glass Melting Furnaces 4.9 7.7

Non‐Refinery ICEs 6 9.6

Cement 8.2 13.1

FCCUs 10.5 18

Non‐Refinery Gas Turbines 20.3 32.5

Coke Calciner 23 38

Refinery Boilers/Heaters 28 45

SRU/TG 34 56

Average 13.2 21.5

4/29/2015 10
Shave M hdl et o ology and Ei i st mation

4/29/2015 11

Shave Calculation

• Remaining Emissions in 2023

= (Refinery Remaining Emissions) + (Non‐Refinery

Remaining Emissions x Growth) Growth)

• RTC Reductions

• S l amp e C l l ti Calculation

• Proposed Shave Alternatives

4/29/2015 12
2023 Remaining Emissions

• Remaining Emissions in 2023

= (Refinery Remaining Emissions) + (Non‐Refinery

Remaining Emissions x Growth)

= 2.71 + 7.47 = 10.18 tpd

• Remaining Emissions from Shutdown Glass

Facilities = 0.10 tpd after BARCT adjustment

• Remaining Remaining Emissions Emissions from CPCC after BARCT

adjustment with growth = 0.29 tpd

4/29/2015 13

2023 Remaining Remaining Emissions, Emissions, con t’

• Remaining Remaining Emissions Emissions from New Facilities Facilities since

2005 Amendments = 0.07 tpd

• 10% Adjustment Adjustment Factor Applied Applied to Refinery Refinery,

Non‐Refinery and New Facility Emissions Only

• T l ota R ii ema n ng Eii m ss ons in 2023 after 10%

Adjustment Factor

– 11.67 tpd

4/29/2015 14
Comparison of NOx RECLAIM Emission Levels Relative

to Total Allocation

26.5

25

30

to Total Allocation

20.72

18.25 14.83

8.81

20

25

Day)

10 18

17.69

8.81

15

PD (Tons Per

D

9.44

10.18

11.67

5

10 TP 0

Allocation 2011 Emissions* 2011 Emissions at

2000/2005

2011 Emissions at

2015 BARCT

2023 Emissions at

2015 BARCT

2023 Proposed

Emission Target

2023 Industry

Proposed Target

4/29/2015 15

2000/2005

BARCT

2015 BARCT 2015 BARCT Emission Target

w/10% Margin

Proposed Target

*Includes 2012 Power Plant Calculated Emissions

RTC Reductions Reductions and Sample Calculation Calculation

• RTC Reductions

= Current RTC Holdings (26.5 tpd)

– (Remaining Emissions in 2023)

• Sample Calculation

RTC Rd i e uct ons = 26 5. – 11 67 . = 14 83 . tpd

• Across the Board Shave = 56% RTC Reduction

4/29/2015 16
Shave Approaches Under Consideration Consideration

Refinery Non‐Refinery

#1 Across the Board 56% 56%

Affects all facilities and investors

56% 56%

#2 Weighted by BARCT Reduction Contribution

Affects all facilities and investors

75% 36%

ff f

#3 Hybrid of #1 and #2:  BARCT reductions applied to

adjusted initial allocation; C&C equivalent adjustment

across the board

67% 44%

Affects all facilities and investors

#4 Shave applied to top 90% of emitter’s RTC holdings

33 facilities, plus investors as 1 company

25 j fi f iliti

72% 72%

non‐major refinery facilities

#5 Shave applied to top 90% of RTC holders

63 facilities, plus investors as 1 company

55 non‐major refinery facilities

62% 62%

55 non‐major refinery facilities

4/29/2015 17

O ht er C id i onsiderations

4/29/2015 18
Energy Efficiency Projects  

• Information Submitted from Refineries to CARB on

Energy Effi i c ency Pjt ro ec s with Co‐B fit ene s NOx

Reductions

• 0 7. tpd NOx Rd i e uct ons For P j ro ects C ld omp eted From

2007 Not Yet Included  in Inventory Baseline

• Integration of Co‐Benef ? its

4/29/2015 19

NSR RTC Holding Holding Requirement Requirement

• NSR Required RTC Holdings Holdings

– Holding purpose only, not usable to cover

emissions

– Leasing Option

– Non‐tradable tradable RTC bank

4/29/2015 20
Power Plants‐

Demand for Add l itional RTCs

– Frequent Start‐Up Eii m ss ons due to renewable

power considerations

– F t u ure el t ifi ti ectrification in the t t ti ransportation sector

4/29/2015 21

Next Steps

• Notice of Public Workshop – April 30 2015

• Public Workshop – May 2015

• Continued Working Group Meetings Meetings

• Stationary Source Committee Meeting – May and

June 2015

• Rule Adoption – July ‐ August 2015

4/29/2015 22
Contact

Gary Quinn, P.E. ‐ gquinn@aqmd.gov

( ) 909 396‐3121

Refineries

Minh Pham, P E. . ‐ mpham@aqmd gov mpham@aqmd.gov

(909) 396‐2613

Non‐Refineries

Kevin Orellana ‐ korellana@aq g md. ov

(909) 396‐3492

4/29/2015 23