# NOx RECLAIM Working Group Meeting

April 29, 2015

1 4/29/2015



# Agenda

• BARCT Analysis

– Analysis Summary

– Useful Life

– Emissions Reductions/Remaining Emissions

l

– Cumu ative BARCT Cost Projections



## • Shave Methodology & Estimation

• Shave Approaches Consideration Under Consideration

• Other Considerations

– Energy & Efficiency – AB32 Integration

– NSR RTC Holding Requirement



## • Schedule/Next Meeting

4/29/2015 2

# Overall BARCT Methodology

• Technical Feasibilit y

• Cost Effectiveness

I tl t ti d 2000/2005

– ncremen t a l C os Eff ec veness B eyon 2000/2005

BARCT

Based Activity

– on 2011 Activity

– Set Cost Effectiveness threshold for individual pieces
of equipment 000 at $50

,

3 4/29/2015



# 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 C onsu lt an t s ’ A na l ys i s & St a ff’ s R ev i ew

• Space Assessments

• Consultants’ Independent Analyses

• Reviewed Consultants’ Anal y sis

• 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 Refinery Profile Basin Refinery 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: Unless to Be Different Guidelines: 10 Yrs

. Shown Different

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

— Santa Barbara: 25 Years Supportable. SCRs Installed in 1980

‐ 90’s

— Florida: 20

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



# • EPA OAQPS: 20 Years

• SCR Manufacturers:

‐ 25 Manufacturers: 20 Years

4/29/2015 5



# Useful Life of SCAQMD NOx Control Equipment

Rule Control Technology 15 20 25 Control Technology ≤ Yrs

. Yrs

. 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 X ag ouse

4/29/2015 6

# Emission Reductions Remaining Emissions Reductions & Remaining 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 Tur b ines / 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 <20 mmbtu / hr 18 0 06 12 ppmv 0 02 n/a 0 02 0 00 0 02 B/Heaters

. . . . .

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

4/29/2015 7



# 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) Em i ss i on 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 (non OCS) 14 1 43 61 45 lb/mmcf 1 24 2 ppm 0 21 1 04 1 10 0 23 Turbines

‐ . . lb/mmcf

. . . . . 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 CY 201 1. 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 CY 201 1. 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 800Million)

G T bi FCCU Gas Turbines + FCCUs + Coke Calciner

+ Boilers Heaters

5.7 tpd, $647 M

300 400 500vePWV($M G as T ur bi nes + FCCU s

+ Coke Calciner

4.8 tpd, $405 M

100 200 300Cumulativ

Gas Turbines

4.1 t p d

, $ 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 Furnace 4 8 7 6 Silicate Furnace

. .
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

# Sh M hdl d Ei i ave et o o l ogy an st mat i on

11 4/29/2015



# Shave Calculation

• Remaining Emissions in 2023

= (Refinery Remaining Emissions) + (Non

‐ Refinery Remaining Emissions Growth) x Growth)



# • RTC Reductions

S l C l l ti • amp e C a l cu l a ti on

• 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 Emissions Remaining Emissions from CPCC after BARCT adjustment with growth = 0.29 tpd

4/29/2015 13



# 2023 Remaining Emissions, con ’ Remaining Emissions, t

• Remaining Emissions Facilities since Remaining Emissions from New Facilities

2005 Amendments = 0.07 tpd

• 10% Adjustment Factor Applied Refinery Adjustment Applied to Refinery

, Non

‐ Refinery and New Facility Emissions Only

T l R ii ii • ota ema n ng E m ss ons i n 2023 a f ter 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 25Day)

10 18 17.69

8.81 15PD(TonsPerD

9.44 10

. 18 11.67

5 10TP

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 and Sample Calculation Reductions Calculation

• RTC Reductions

= Current RTC Holdings (26.5 tpd)

– (Remaining Emissions in 2023)

• Sample Calculation

RTC Rd i 26 5 11 67 14 83 d e uct ons =

. –

. =

. tp

• Across the Board Shave = 56% RTC Reduction

4/29/2015 16

# Shave Approaches Consideration Under Consideration

Refinery Non

‐ Refinery

#1 Across the 56% 56% Board Affects all facilities and investors 56% 56%

#2 Weighted by BARCT Reduction Contribution

A

ff

ects all f acilities 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

‐ ma j or re fi nery f ac iliti es
#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 h id i t er C ons id erat i ons

18 4/29/2015

# Energy Efficiency Projects

• Information Submitted from Refineries to CARB on
E i jt B fit

nergy Effi c ency P ro ec s w ith C o

‐ ene s NO x Reductions

0 7 d i j ld F •

. tp d NO x R e uct ons F or P ro ects C omp ete d rom
2007 Not Yet Included in Inventory Baseline

f f ? • Integration o Co

‐ Bene its

4/29/2015 19



# NSR RTC Holding Requirement Holding Requirement

• NSR Required RTC Holdings Holdings

– Holding purpose only, not usable to cover emissions

– Leasing Option

– Non

‐ tradable bank tradable RTC

4/29/2015 20

# Power Plants

‐ d f l Deman or A dd itiona l RTCs

F S U Eii

– requent tart

‐ p m ss ons d ue to renewa bl e

power considerations

F t t ifi ti t ti

– u ure e l ec t r ifi ca ti on i n th e t ranspor t a ti on sec t or

4/29/2015 21



# Next Ste p s

• 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@a q md. ov g (909) 396

‐ 3492

4/29/2015 23