# - SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT



# BestA vailable Control Technology Guidelines PartA: Policy and Procedures

May 21,1999

Deputy Executive Officer Planning, Rule Development and Area Sources Jack P. Broadbent
Assistant Deputy Executive Officer Planning, Rule Development and Area Sources Elaine Chang, Dr. Ph. Planning and Rules Manager Planning, Rule Development and Area Sources Anupom Ganguli, Ph.D.



# .- Authors:

Reviewed By: Martin Kay, P.E. Tran Vo, P.E. Adewale Oshinuga Knut Beruldsen
Bill Wong Barbara Baird Air Quality Analysis and Compliance Supervisor Senior Air Quality Engineer Air Quality Engineer II Air Quality Engineer II Senior Deputy District Counsel District Counsel

# .- ..

CHAPTER 

### a- HOW ARE BACT AND T-BACT DETERMINEn? 

## The BACT

## i$ ·Commercially

### Available: At least 

### one vendor

### must offerthis equipmentfor regular 

### orfuI scale operation in the.JJnited 

### States. A performallce warranty or guaranty 

### mustbe available 

### wiIh the purdlase of

### the control techtdogy. as 

### weB as parts 

### service.

. 

### The 

### BACT

## Is Consistent

## with Clean Fuel Requirements:

.A 

### dean fuel is one that prodIlCeS air ellissiOIlS equivalent10 or Iowerthan 

### natInI gas 

### for 

## NOz. 

# so.. Roo. and 

### fine respilable partictiate 

### matter (PM,o). 

### Besides 

### nabI'afgaS. 

### other clean 

### fuels 

## are methanol, iquid peboteum 

### gas (LPG), and hydrogeL The burring of

### IancIIiI. cigeSte. refinefy and oIher

### by-product 

### gases is not subject 10 the 

### clean fuels requirement. 

### However. the c:ambusticn of

. these fuels 

### must ccmpIy will other

### ACiNJD rules, including 1he 

### sulfur CCldent of :.. thefuel

. The requirement of 

### a clean fuel is based 

### on eng.eetilg 

### feasNity. Engineeilg feasa>ily considers 100 avaiabiIily ofa dean 

### fuel and safety COlicems

. . 

### asSCJC:ialed with that fuel. 

### Some 

### state and local safety

### requilements limitthe types offuel which 

### can be 

### used fer**emerges~)'** staladby 

### purposes. Some fire departlTlents orfire malsha1s 

### do 

### not

## aIiaw the slDrage of

### LPG near ocx:upied buildings. Fie officials have, in 

### scme cases, vetoed 1he

### use Of meti.a.cl in hospitals Ifspecial handJilIg orsafety c:onsideratioilS preclude the use ofthe 

### clean fuel, 1heAQMD has 

### aBowed the 

### use offuel 

### ciI as a staadJy for fuel 

### in bailers and 

### heaters, and far emesgerpt stalldby gelaeialDiS. 

### The use**of·~** fuels must meet 1he requiremetlts ofAQMD rules limiting 

## Nez and sulfur

. emissions. 

### The 

### BACT

## Does NotResuit'ln 

## a SIgnificantImpact

## on other EnvironmentalMedia: The goal of 

### BACT is 

### to 

## nuine emissialS 

### and 

### to not baalSfer pclkltion

## from one.media 

### to anoIher. 

### BACT cancidaIes will be reviewed 

### to detetnilae the secorldalyenvironmental impacts, incIucing other mecia and 

### energy. that 

### may result 

### atthe time it is appied 

### to 

### an individual permit appIicatioiL All new teemoIogies 

### wi! be examined 

### for 

### these fadors-cxxasistelltwith the 

### current BACT 

### Guidelines and recogIlizilg USEPA's I'll3I 

### date for l.DwestAchievable 

### Enissiua I Rate (LAER).

. 

### The BACT

## Is 

## RerlBble: AI techilOklgies must 

### -.xlSbate 

### a minimum of 

### 12 moldhs of perfOiii&1Ce In cad60ns that anirror real 

### wOrld appic:aliol L 

### This one year of data can be on

. pilot scale 

### systems on a sip 

## stream. orfull scale regular c:onUil8l'ciaJ operation. DtI'ing the 12 n'IOIlths of 

### operatioal, the teehalOlogy must demoIlStiate a 

### IeYeI of reJiabiIily CDllSistent

### with the basic operatiOlL The teetlnoIogy must 

### net contabJte to a significant 

### reductiOn in the avaiatldty ofthe basic equipment



# - 29 AUGUST 1995CHAPTER Sa HOW ARE BACT AND T-8ACT DETERMINED?


### The BACT

## is Achieved

## in Practice:

. AchieVed in practice 

### c:cntroJ teet

...tOIagy 

### may in operation 

### in the 

### United 

### States 

### orany

### Otherpart 

### ofthe world. 

### Sources for

### aetIieYed in practice 

### levels include

- the 

### CAPCOA BACT 

### CIeaIaaghouse and the 

### USEPA RACTJBACTJLAER

Clearinghouse. lAER deter.nilsations made by 

### local Disn:ts 

### in 

### California. and by States 

### and local 

### DistrictS throughclutthe 

### United 

### States. respectively, ate published 

### in**1hese'~** 

### Each permittillg ieam 

### oflie AQMD

### Will

# alSo**~their** 

## Scurces for achieved in 

### Ievets. The 

### Control tee:h1Ology

### must

### pass the othercriteria for COiII.telciaI avaiabi6ty; reiabiity other

### envirOlmentaJ in1p8Ct$. In 

### pcadice. most 

### BACT detem*IatiOnS 

### are based 

### on achieved in 

### practice

. considerations. Most 

### Ofthe 

### equipment identif.ed in the BACT Guidelines has

- been 

### in 

## safe. reliable operation in multiple 

### IIx:a£oIIS throughout the 

### South Coast Air 

### Basin. This equiJ)menthas 

### eiherbeen scuce tested 

### orobserved to 

### be effectiVe in COJ 

### molina poUution.

. 

### The**~ACT** 

## Is Technologically Feasible: TectIT.dagicaJ 

### feasNily enlbodies two c:onc:epIS. The 

### firSt is.the 

### transfer Of 

### proven 

### technologyfrom cne source 

### to another. 

### Sec:Cnd. it can 

### be a brand 

## new type of

### techilOlogywhich 

### has been detnorrstJatedttwugh pilot scale 

### orslip 

### stream appIieaIions and.is aIfered 

### as BACT wilt warraalties and guaJaJlte 

### es by the 

### maruacturer. '.

. The 

### baslSfer of

### teehacgy from one 

## soun:e to aslOtheris COJ1Im01JPfaCe. For

. exarnpJeo selective 

### catal)tic reduction (SCR) was initiaDy**~ated** 

### on

- boilers. 

### SCR technology 

### was then barlSfelTed 

### to ClIhet

### canibustion processes where the flue 

### gas c:crnpcsitioIl 

### was similar. 

### SUCh

### as gasturbines and 

### IC engines 

### (ICE). Techaology 

### trallSfe also 

### occurs frClma larger 

### source 

### to a . 

### .smaIter

## source. Afterburne:s 

### were iniIiaIIyproven 

## on large 

### spray booths. The 

### same tec:hnClIClgy 

### can be applied 

### on smaller spray booths. A 

### new tec::hI1Cfogy 

### can be feasible based 

### on a pilot scale 

### orslip stream testing of the equipment. 

### Lcw-NOx burners

# were OIigiImBy developed 

## on very sma! c:cmbustion deviCes. 

### This 1eCI'J1ClIogy successfully scaled 

### up and is

### now

### IJSeC# for larger heaters and boilers. 

### For 

### a

## new 1ectI1ClIagyto

### be 

### c:orlSidered tec:hnClIClgic: feasible based 

### on a pilct scale 

### demoIlStlaticxt. the piIct system would have 

### to mirror "'real 

### world"



### . condiIions and have.been 

### in operation for

### at least 

### a year. In addition, 

### a manurac:uerwould be required to have the 

### technology collrmescialy avaitabte. as 

### weB 

## as 

## Provide a warranty or guarantee with respect to its ooeraIion. 

### Tec:halClcgitaDy feasible 

### BACT must also be 

### c:csteffective. 

## ..-...,.

The BACT

## is Cost Effective: Cost effectiveness is a 

### consideration fortecta lClIogicallyfeasible BACT and for smaIJ business 

### BACT. 

### Prior1D listing in 

### 1he 

### 1995 BACT Guidetines 

### ora subsequent update. 

### any tedmoIogicaDy 

### feasible 

### BACT and 

### any smaD 

### busineSS BACT that has not already been achieved in practice based 

### on the 

### current

30 

## :1.38 AUGUST 1995 

# -

# - CHAPTER 8- HOW ARE BACT AND T-BACT DETERMINED?



### BACT Guideines. must pass the 

### cost 

### effectiveness test(S) 

### desClibed in t1e 

### next sec:ticX'&.**~<ads** 

### may also 

### use

## a cost 

### effeCtiveness analysis to 

### eIocLmentthat "specifIC 

### c:haIaeteristics 

### a BACT &sting 

### notfeasible for

### theirunique 

### appIica6a i 

### (see 

### Chapter

### 5 and the next section).


## COST EFFECTIVENESS METHODOLOGY There 

### are two sftzmfions 

### where AQMD 

### must

### cosasider cost 

### effectiveness:

• . R1je 1303(b) requires the

### AQMO to consider 

### costeffectiveness for 

## as BACT detemlii iatioIiS for 

### smaD busineSses

• The definition of BACT in Rule 1302(cI) requires 

### air pollution wnbols :. that are •....ted aaologicalyfeasible and 

### costdedife as CClnpaled to 

## rneaswes as IisIBd in the 

### AQMP 

### orrules adopted by the 

### Board.• AppIicaI

### ds may 

### also c:anduct

## a cost effecIiYeneSS evaluation 

### to support 1heir case for the special permit coslSidelalioiiS cisalSSed in Chapter

## s. What is 

## Cost EffectIveness? Cost effectiveness 

### is 

### measured in telms 

### ofccntroI costs (dollars) pertDn of 

### air emissioI tS 

### redilCed. If the cost 

### perten of emissioIlS reduced 

### is 

### less than the maximum r&qUired 

### control 

## costs. then 

### the wntroI method is 

### COIISidered to be cost effective.

. 

### ihereare 

### two types of

### cost effectiveness: average and malgi1l81. Average cost effedi¥eness COIISiders the differela in cost and emissioIlS between 8 proposed 

### BACT and 

### an UlICOI.bolled 

## case. On the other

## hand, maJgilal cost effec6:treness looks 

### at the 

### difference in 

### cast and ernissiOiIS betlIIeen the proposed 

### BACT and 

## a less stringenlleYel of 

### c:ontrol



## DiScounted cash Flow Method The discounted cash flow method (OCF) is used in these 

### 1995 Guidelines. This is also the 

### method used 

### irTthe 

### 1994 Air

### QualitY Managemer It

. Plan. The DCF method 

### catc:utates the 

### peseslt value ofthe control 

### costs over the 

### life Of 1he equipment by adding 1he capital 

### cost 1D the 

### present value 

## of-an annual 

### costs and other periodic costs overthe life 

### ofthe equipment. A real iJ ItefeSt 

### rate' offour percent. and a 1().yearequipment fife is used. The 

### cost effediYeness is determined by dividing the total presetltvalue ofthe c:cntroI '. 

### costs by the total emissiocl reductions in.tons overthe same 1D-yearequipment

. .

-The rea! interest rateisttle diffeseliee between martcetinlerest rates and nIation. wbichtypic:ally.renains

COllStasltatfcur 

### percem.



# - 31 A..,.O**~~** AUGUST 1995CHAPTER 

## a. HOW ARE BACT AND T·BACT DETERMINED? 

## _Top Down Cost**Method~logy** The-AQMD 

## uses the 

### tap down appoac:tl for evaluating 

### cost effectiveness. This 

### means that the 

### best

### cantra method, with the highest 

### enissicn 

### redtlCtion. is first analyzed. If it is 

### not costeffective, then the secalld-best control method is 

## evaIuatBd for cost effectiveness. The 

### process 

### continues unfiI a COl Ibol method is flUId to
- be 

## c:cst-effedive. Average 

### cost effeci4eneSS wi! be 

### used by AQMD staff 

### to 

### set a new BACT level for an equipment**ca~CNy** thathad no previous BACT requirement. Average 

### costeffectiveness 

### must also be-used by 

### an appicatlt

### to support their

### case for the special permit cansiderations ciSCtlSsed in ChapterS. except for case disalSSed in 

### the next section. - - , AQUD staff

### wiII8Iaaiyze for boIh 

### maJg6 

### aaJ and a.:erage cost effectiveuess 

### :. a _ysis 

### when setting 

## a more sbiagent BACT

## I8YeI for 

### an equipment 

### categoay 1hat already has a BACT requirement. The 

### neW BACT must be 

### cost effective 

### based·on 

### boll analyses. Agam. onlytech 

### eotog':alyfeasible BACT and smaI business BACT 

### are required be analyzed for 

### cost effediveness. 

## Cost Effectiveness for**M~iflcation** 

## of 

## Existing Equipment 

## that Has 

## EmIssion Controls



# . - 

### . As 

### ciscussed in the Spedaf 

### PeJI.ilting 

### COl asideratiatS section 

### in Chapter

### $, an 

# aPPticalt is aIowed 

### to demolistlale, for BACT

### determiJla~tS 

## 1hiIt haVe not 

## been ac:hiewoed in practice and 

### ewe not coratailled in any SIP for

# amocific:ation. 

### that the 

# BAc:rr is 

### not costeffective. Ifthe 

### existi Ig already has eulissiai, COIIb

### oIs. then magi

### IIaI 

### c:ost etIectiYeness will be 

### used. with the existing level of cardrOI as a 

### bade. This means 1hatthe etilission 

### redtlCtion used in the 

### cost effectiveness evaluation would be based 

### an the 

### diffetesace betvJeen the maximum emissions 

### with BACT and the 

### maximum ernissioItS 

### with the 

### eJCistiJ

### 19 level of emission 

### contrcIs. The c:on1to1 

### costwiJ be arry new 

### cost of complying with 

### BACT. Ifthe 

### cost 

### perton exceeds the 

### maximum. Ira

### ghaal, cost effec:tiIeness criteria, then that BACT level wiB not be required. 

## Maximum 

## Cost Effectiveness 

## Values The BACT 

### maxinaum cost effectiveness values have been 

### revised based 

### on the natural break ofthe 1994 AQMP 

### c:ontroI 

## measures and adopted AQMO niles'. There 

### are 

### two sets of values: 

### one for large 

### businesseS and aJlOtherfor smaD 

### businesSes that is 

### 25 pelt:ent less, 

### The 

### JowervaJues for small 

### businesses accountfor 

### the higher

### cost of borrowing money 

### for small busineSSeS 

### versus large businesses.. The vaiues wiD be updated again after the 1997 AQMP is adcpled. The BACT maximum cost effectiveneSS vatues. shown in Tabte 4, 

### are based on a DCF analysis with a 4% real interest rate. 

# .........

32 AUGUST 1995

# - ..

CHAPTER 8. MOW ARE BACT AND T.BACT DETERMINED?

. Table4 

### Maximum Cost Effectiveness Criteria

Pollutant



### ROO 

## NOX SOx PM,o 

### CO 

### Maximum $ 

### perTon 18,000 17.000 9.000 4.000

350 

### SmaD Business 

### Maximum $ 

### per

### Ton 13,500 

### 12.750 6,750 3,000 263
Whenever a maJginaJ cost effediveness analysis is 

### done. the maximum 

### cost aitetia wiD be three times the amounts in Table 4 aboYe.. 

### There 

### are no cost criteria for 

### Ieacl. BACT fer lead 

### is eiIher BACT 

### for 

### PM,o 

### or c:ompliallce with Rule 

### 1420. 

### whichever is more stringent. There

# are no cost criteria for haIogeJaaled hydrocaJboias. allBllOi Jia, hydrcgen 

### fluoride. hydlogai chlcride 

### or hydrogen suffide. 

### BACT for 

### sources that emit 

### hatcges aated hydrocarboIlS 

### are based 

### on achieved in 

### padice criteria. 

### Costs 

### to 

### Include in a Cost Effectiveness AnalysIs All 

### reasonable. rea! and legitimate 

### costs 'A'i1J 

### be 

### included in 

### a cost 

### effectiveness analysis. 

### Cost effectiveness evaluations considerboth capital and opetatiJIg

. 

### costs. Capital cost includes 

### not only 

### the price of

### the the 

### cost for shippiag, engineering and inStaUation. Operating 

### or annual costs include expenditures associated with utifities. labor and replacernent 

### costs. Finally, a credit is given if any of the materials 

### or energy created by the process result in 

### a positive cash fIovt. 

### These 

### cost items are 

### shOwn in Table 5. Methodologies for

. detem Iii 

### Ii

## as these values 

### are given in 

### documents prepaed by USEPA through their Office ofAir QuaIiy 

### PIai.

## mag andSta

# _cis COAOPS Control Cost 

## Manual 4th 

### Edition. USEPA4SOJ3.90-006 and Supplements). The cost of land 

### wiD 

### not be cansidered 

### bPcarse 1) add-on control equipment usually takes up very IitIIe 

### space, 2) add-on control equipment 

### does not usually require the pu1 dldSe of

### addiIionaIland. and 3) land is non-depredable 

### and has value 

### at the end ofthe project. 

### In additioI1. 1he 

### cost of COldJoBing secondary

. emissions and c:ross-media 

### polutanls caused bythe primary BACT n!quirement can be 

### induded in 

### any required cost effectiveness 

### evaluation of

### the primary BACT requirement.

.

33 AUGUST 1995