### TECHNICAL SUPPORT DOCUMENT 30 TAC, Chapter 117 Control of Air Po llution from Nitrogen Compounds Lean - Burn Engines Fired on Biogas in the DFW Ozone Nonattainment Area 

### Rule Project No 2010 - 048 - 117 - EN EPA - R06 - OAR - 2011 - 0494 And 30 TAC, Chapter 117 Control of Air Pollution from Nitrogen Compounds Exemption of the Low Temperature Drying and Curing Ovens in the DFW Ozone Nonattainment Area 

### Rule Project No 2009 - 023 - 117 - EN EPA - R06 - OAR - 2011 - 0494Page 2 of 14 T h is Technical Support D ocument (TSD) is comprised of two separ ate sections 1 and 2
. Section 1 concerns our evaluation of Texas’ final rule adopted on April 20, 2011 as a revision to the Texas State Implementation Plan (SIP) c oncerning 30 TAC, Chapter 117 Control of Air Pollution from Nitrogen Compounds, Rule Project No 2010

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- EN. The submittal is determined to be administratively complete. See pages 1 through 4 of the completeness checklist prepared in conjunctio n with this rulemaking action. Section 2 of the TSD concerns the our evaluation of Texas’ final rule adopted on January 13, 2010 as a revision to the Texas State Implementation Plan (SIP) 30 TAC, Chapter 117 Control of Air Pollution from Nitrogen Compounds, Rule Project No Rule Project No 2009

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. See page s 5 through 8 of this TSD. No material i n either of t hese two SIP submittals was designated as Confidential Business Information. Section 1 - Lean - Burn Engi nes Fired on Biogas in the DFW Ozone Nonattainment A rea : We received this SIP submittal package, with a letter dated May 18, 2011, from TCEQ requesting approval of a revision to 30 TAC, Chapter 117, Subchapter D, Combustion Control at Minor Sources in Ozone Nonattainment Areas, Division 2, Dallas

- For t Worth (DFW) Eight

Hour Ozone N onattainment Area Minor Sources, S ection 117.2110(a)(1)(B)(ii)( I). Rule identifiers informati on is as follows: Rule Project No 2010

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- Burn Engines fired on biogas in the DFW area (Ameresco). Minor Source Rulemaking Amendment to: §117.2110 Date Adopted: April 20, 2011 Date Filed with the Secretary of State: April 22, 2011 Date Published in the Texas Register : May 6, 2011 Date Effective at State Level: May 15, 2011 TCEQ proposed this rule change following a petition from Ameresco of Texas. See 35 Texas Register 10162 published November 19, 2010. W e originally approved the revisions to 30 TAC,Page 3 of 14 Chapter 117 Control of Air Pollution from Nitrogen Compounds on December 3, 2008 at 73 FR 73562. The proposed text of the Section 11 7 .2110 reads:Page 4 of 14 §1l7.2110. Emission Specifications for Eight

- Hour Attainment D emonstration. (a) The owner or operator of any source subject to this division (relating to Dallas

- Fort Worth Eight

- Hour Ozone Nonattainment Area Minor Sources) shall not allow the discharge into the atmosphere emission of nitrogen oxides (NOx) in excess of the following emission specifications. (1) Emission specification for stationary. gas

- fired, reciprocating internal combustion engines are as follows: (A) rich

- burn engines: (i) fired on landfill gas, 0.60 grams per horse power hour (g/hp

- hr); and (ii) all other rich

- burn engines, 0.50 g/hp

- hr; and (B) lean

- burn engines: (i) placed into service before June I, 2007, that have not been modified, reconstructed. or relocated on or after June 1, 2007. 0.70 g/hp

- hr; and (ii ) placed into service, modified, reco nstructed, or relocated on or after June 1. 2007: (I) fired on landfill gas or other biogas 0.60 g /hp

- hr; and (II) all other lean

- b urn engines, 0.50 g / hp

- hr. ( 2) The emission specification for stationary, dual

- fuel, reciprocating internal combustion engin es is 5.83 g/hp

- hr
. (3) Emission specificatio n for stationary, diesel, recipro cating internal combustion engines are as follows: (A) placed into service before March 1,2009, that have not been modified, reconstructed, or relocated on or a fter March 1, 2009 , the lower of 11.0 g / hp

- hr or the emission rate established by testing, monitoring, manufacturer's guarantee, or manufacturer's other data; and (B ) for engines not s u bject to s u bparagraph (A) of this paragraph: (i) with a horsepower (hp) rating of 50 hp o r greater, b u t less than 100 bp, that are installed, modified, reconstructed, or relocated on or after March I, 2009, 3.3 g / hp

- hr; (ii) with a horsepower rating of 100 hp or greater, b u t less than or equal to 750 hp, that are installed, modified, reconstru cted, or relocated on or after March I, 2009, 2.8 g / hp

- hr; and (iii) with a horsepower rating of 750 hp or greater that are installed, modified, reconstructed, or relocated on or after March I, 2009, 4.5 g / hp

- hr. (4) As an alternative to the emission speci fications in para graphs (1)

- (3) of this sub section for units with an annual capacity factor of 0.0383 or less, 0.060 pound per million British thermal units ( l b /MMBtu) [l b/ MMB t u ] heat input For units placed into service on or before December 31, 2000, th e annual capacity factor as of December 31, 2000, must be used to dete rmine eligibility for the alternative emission specification of this paragraph. For writs placed into service after December 31, 2000, a 12

- month rolling average must be used to dete rmin e the annual capacity factor.Page 5 of 14 As it can be seen section 117.211 0(a)(1)(B)(ii)(I) will now read : “ (I) fired on landfill gas or other biogas 0.60 g/hp

- hr;” The term “ or other biogas ” has been added to this subsection. In our comment letter dated Decembe r 16, 2010 we wrote: “Under the existing rules, the lean

- burn engines would be held to 0.50 g/hp

- hr NOx emission limits. Under the proposed rule, the engines would be limited to 0.60 g/hp

- hr of NOx. Under the proposed rules, you have projected that 0.02 tons per day more NOx emissions would be allowed compared to the existing NOx rules.”
I n their SIP narrative section titled “Evaluation” TCEQ wrote that a larger amount of NOx could otherwise result, if a likely alternative such as routing the gas to a fl are is utilized. Under this project the biogas will be used beneficially. Engines fired on landfill gas and other biogas can have technological feasibility issues with regard to the installation or employment of a NOx control catalyst due to presence of co ntaminants such as sulfur, chlorine, and silicon which can contribute to catalyst failure or deactivation in a matter of hours or days. By adopting this revision the emission specifications for this category of engines in the DFW area will become consiste nt with the emission specification for this category of engines operating in the Houston

Galveston

- Brazoria (HGB) 1997 8

- hour ozone nonattainment area. The revision will provide for consistency and operational flexibility for this category of engines opera ting in the DFW 1997 eight

- hour ozone nonattainment area. Furthermore, TCEQ is reporting in excess of 7 tpd of surplus NOx reductions ( under a conservative estimate scenario ) for the DFW area from its mobile sources (fleet turnover ) that would more than c ompensate the 0.02 tpd increase associated with th e biogas project. The fleet turnover surplus is documented in Table 4.3 of the DFW 1997 8

- Hour ozone nonattainment area plan TCEQ Project No. 2009

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- NR, that the State adopted on March 10, 2010. See T able 4.3 of that document below.Page 6 of 14 S ection 110( l ) analysis : In the 36 Tex as Reg ister 2856 issue dated May 10, 2011 TCEQ wrote “ The commission provides the following information to demonstrate why the adopted change to expand the emission specification in §117.2110(a)(1)(B)(ii)(I) will not negatively impact the status of the state's attainment with the 1997 eight

- hour ozone National Ambient Air Quality Standard (N AA QS), will not interfere with control measures, and will not prevent reasonable further pr ogress toward attainment of the ozone N AA QS. The commission acknowledges that the DFW area failed to attain the 1997 eight

- hour ozone N AA QS by the June 15, 2010, attainment deadline based on monitoring data; however, the adopted rule change will not advers ely affect the ability of the DFW area to attain the 1997 eight

- hour ozone N AA QS for the reasons discussed in this preamble. The requirement for reasonable notice and public hearing was satisfied through a public hearing scheduled for December 14, 2010, a nd the public comment period, held November 19, 2010, to December 20, 2010. The purpose of the hearing was to accept written and oral comments on the proposed rulemaking. A written comment was submitted by the EPA. The EPA stated their agreement w ith the c ommission's §11 0(1) determination that the proposed rulemaking will not interfere with attainment or maintenance of the 1997 eight

- hour ozone N AAQ S in the DFW area. On May 23, 2007, as part of the DFW attainment demonstration, the commission adopted a new Chapter 117, Subchapter D, Division 2 with new emission control requirements for minor industrial, commercial, or institutional sources of NO x in the DFW 1997Page 7 of 14 eight

- hour ozone nonattainment area. Subchapter D, Divi sion 2 requires owners or operators of mi nor sources of NOx in the DFW 1997 eight

- hour ozone nonattainment area to reduce NO x emissions from affected stationary internal combustion engines. A minor source of NO x in the DFW 1997 eight

- hour ozone nonattainment area is any stationary source, or grou p of sources located within a contiguous area and under common control that emits or has the potential to emit less than 50 tons per year of NOx. One source category newly regulated under Chapter 117 during the 2007 r ulemaking was lean

- bum engines at minor sources. The current applicable NO x emission specification in 117.2110(a)(1)(B)(ii)(II) for gas

- fired, lean

- bum engines using gaseous fuels other than landfill gas that are installed, modified, reconstructed, or relocated on or after June 1, 2007, is 0.50 g/hp

- hr. During the 2007 rulemaking, no landfill gas

- fired engines were identified in the emissions inventory in the counties impacted by the proposed r ule; however, the emission specification of 0.60 g/hp

- hr for gas

- fired engines fired on landfill gas es tablished by §117.2110(a)(1)(B)(ii)(I) is consistent with the emission specification for this category of
e ngines in the Houston

- Galveston

- Brazoria 1997 eight

- hour ozone nonattainment area. In the 2007 Chapter 117 rulemaking for the DFW1997 eight

- hour ozo ne attainment demonstration, no gas - fired engines fired on biogas or other non

- landfill gaseous fu els were re lied upon for creditable reductions for the SIP. Therefore, if the petitioner's proposed change is adopted, allowing the slightly higher emission s pecification of 0.60 g/hp

- hr on gas

- fired engines fired on other biogas fuels would not result in a loss of any SIP creditable reductions for the DFW 1997 eight

- hour ozone nonattain ment area. The adopted change is limited to a na rrow category of stationar y gas - fired engines with NO x controls that were not relied upon in the DFW 1997 eight

hour ozone attainment demonstration adopted in 2007, and the resulting change in future NO x emissions is negligible. Furthermore, if the rulemaking is not adopted and the petitioner is notPage 8 of 14 able to comply with the 0.50 g/hp

- hr emission limit or purchase credits to offset the surplus emissions, the petitioner may be forced to abandon the project. This outcome could actually
resu lt in a net NO x emissions increase that is more than the 0.02 tons per day increase anticipated if the r ule is adopted. If the company is forced to send the emission stream to a flare for destruction rather than use the stream as a fuel source in the engines, the total uncontrolled NO x emissions could exceed that of the controlled emissions under the proposed emission limit, because flares are exempt from NO x emission limits under Chapter 117. Based on these factors, the commission has determined that the adopted rule change will not negatively impact the status of the state's attainment demonstration for the 1997 eight

- hour ozone N AA QS, will not interfere with control measures, and will not prevent reasonable further progress toward attainment of the ozone N AA QS. ” The graph below illustrates this comp arison.Page 9 of 14 For these reasons we find the rule revision acceptable for approvability purposes and believe this revision will not be in conflict with Section 110(l) of the Act, and will not interfere with the attainment or maintenance of the NAAQS. Therefor e, we find that the revision meets the applicable requirements of the CAA and EPA air quality regulations. Section 2 - Exemption of the Low Temperature Drying and Curing Ovens in the DFW Ozone Nonattainment Area: As stated earlier, s ection 2 of the TSD con cerns our evaluation of Texas’ final rule adopted on January 13, 2010 as a revision to the Texas State Implementation Plan (SIP) concerning 30 TAC, Chapter 117 Control of Air Pollution from Nitrogen Compounds, Rule Project No Rule Project No 2009

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. We received this SIP submittal package, with a letter dated February 2, 2010, from TCEQ requesting approval of a revision to 30 TAC, Chapter 117, Subchapter B, Combustion Control at Major Industrial, Commercial, and Institutional Sources in Ozone Nonat tainment Areas; Division 4, Dallas

- Fort Worth Eight

- Hour Ozone Nonattainment Area Major Sources , S ection 117.403(a)(12). The submittal is determined to be administratively complete. See pages 5 through 8 of the completeness checklist prepared in conjunct ion with this rulemaking action. Rule identifiers information is as follows: Rule Project No. 2009

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- EN Exemption of Low Temperature Drying and Curing Ovens in the DFW Ozone Nonattainment Area Amendments to: §117.403 Date Adopted: January 13, 201 0 Date Filed with the Secretary of State: January 15, 2010 Date Published in the Texas Register : January 29, 2010 Date Effective: February 4, 2010Page 10 of 14 TCEQ proposed t his rule change following a petition from Elk Corporation of Texas
. See 34 Texas Register 5976 published August 28, 2009
. We originally approved the revisions to 30 TAC, Chapter 117 Control of Air Pollution from Nitrogen Compounds on December 3, 2008 at 73 FR 73562. We received a SIP submittal package, with a letter dated May 18, 2011, from TCEQ requesting approval of a revision to 30 TAC, Chapter 117, Subchapter B, Combustion Control at Major Industrial, Commercial, and Institutional Sources in Ozone Nonattainment Areas; Division 4, Dallas

- Fort Worth Eight

- Hour Ozone Nonattainment Area Major Sources , S ection 117.403(a)(12). The proposed text of the Section 117.403(a)(12) reads: §1l7.403. Exemptions. (a) Units exempted from the provisio n s of th is division (relating to Dallas

- Fort Worth Eight

Hour Ozone Nonattainment Area Major Sources), exce pt as specified in §§117.440(i), 117.445( f )(4) and(9), 117.450, and 117.454 of this title (relating to Continuous Demonstration of Compliance; Notification, Recordkeeping, and Reporting Requirements; Initial Control Plan Procedures; and Final Control Plan Procedures, for Attainment Demonstration Emission Specifications), include t h e following: (1)

- (11) (No change.) (12) low

- temperature drying and curing ovens used in mineral wool

- type fiberglass manufacturing and wet

- laid, non

- woven fiber mat manufacturi ng in which nitrogen

containing resins , o r other [ bound chemical ] additives are used; (13)

- (16) (No change.) (b)

- (c) (No change.)
That revision to Chapter 117, Subchapter B, Division 4 requires owners or operators of major Industrial, Commercial, and Institutional ( ICI ) s ources of NOx in the DFW 1997 eight

- hour ozone nonattainment area to reduce NOx emissions from a wide variety of stationary sources. One source category was curing and drying ovens used in mineral wool

- type fiberglass manufacturing o perations. The December 3, 2008 rulemaking action approved into the Texas SIP addition of a new provision under section 117.403(a)(12) to exempt curing ovens used inPage 11 of 14 mineral wool

- type fiberglass manufacturing in which nitrogen

- bound chemical additives ar e used
. D ue to technical feasibility issues associated with controlling NOx emissions from ovens particularly when wet

- laid nitrogen containing resins are used TCEQ was petitioned by a fiberglass manufacturer . The petitioner commented that addition of ni trogen
- bound chemical additives in its operation contributes to the creation of non

- combustion

- related thermal NOx that cannot be controlled using the control techn ologies State ha d identified as appropriate for curing ovens utilized in mineral wool

- type f iberglass manufacturing operations. The amount of NO x emitted from curing ovens of this type is estimated to be a small contribution to the total NO X emissions from this industry. As a result of granting the petition, approximately 0.1 tons per day (tpd) of NOx emission reductions will need to be replaced in the 2007 DFW 1997 8

- hour ozone attainment demonstration SIP. TCEQ is of the position that the 0.1 tpd of NOx reduction can be substituted with 0.1 tpd of NOx from surplus fleet turnover reductions an d TCEQ plans to reflect this emission credit change in the State’s Discrete Emissions Reduction Credits (DERC) limit determination for 2010, consistent with 30 TAC §101.379(1)(2)(A), accordingly.Page 12 of 14 Section 110(l) analysis : I n the 35 Texas Register 649 1 i ssue dated January 29, 2010 TCEQ wrote “The commission provides the following information to clarify why the adopted change to expand the exemption in §117.403(a)(12) will not negatively impact the status of the state's attainment with the ozone National A mbient Air Quality Standard (NAAQS). The requirement for reasonable notice and public hearing was satisfied through a public hearing held on September 17, 2009, and the public comment period, held from August 28, 2009, to September 28, 2009. The purpose of the hearing was to accept written and oral comments on the proposed rulemaking. A written comment was submitted by the EPA. The EPA stated that it Will provide comment on the commissions' §110(1) demonstration in its comment letter pertaining to the propo sed DFW Reasonably Available Control Technology Update, 30Texas Administrative Code Chapter 117 Rule RevisionPage 13 of 14 Noninterference Demonstration, And Attainment Demonstration Contingency Plan State Implementation Plan Revision. The EPA issued draft g uidance on June 8, 2005, titled "Demonstrating Noninterference Under Section 110(1) of the Clean Air Act When Revising a State Implementation Plan." The Guidance states on page six that "areas have two options available to demonstrate noninterference for the affecte d pollutant(s)." This preamble provides details of the identified existing measures that the commission will use to establish compliance with option one of the EPA’s guidance: substitution of one measure by another with equivalent or greater emissions redu ction in air quality benefits.” To reiterate importance of proper accounting of SIP credits EPA in its August 8, 2011 comment letter from Mr. Guy Donaldson of Air Planning Section to Ms. Charlotte Horn of TCEQ’s Texas R egister Team asked TCEQ to acc ount fo r and reflect the 0.12 tpd NOx emissions increases (0.02 tpd due to the Rule Project No. 2010

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- hour ozone nonattainment
area. See page 9 of th e August 8, 2011 EPA’s comment letter
. As sta ted before, TCEQ is reporting in excess of 7 tpd of surplus NOx reductions ( under a conservative estimate scenario ) for the DFW area from its mobile sources (fleet turnover ) that would more than compensate the 0 .1 tpd increase associated with th e low temperature drying
oven rule project
. We believe that by substituting the 0.1 tpd of NOx from the surplus fleet turnover emissions reductions the S tate is, adequately, demonstrating the “non

- interference” with the ma intenance and attainment of NAAQS under section 110(l) of the Act. See the combined graph below for illustration comparison purposes. Therefore, State’s submittal meets the applicable requirements of the CAA and EPA air quality regulations.Page 14 of 14 We have re viewed State’s submittal and agree with their reasoning to grant the petition, and thus revising section 117.403(a)(12). The above graph compares the NOx emissions increases associated with these two rule revisions (0.02 tpd due to the Rule Project No. 201 0

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. Conclusion : Both revisions to 30 TAC Chapter 117, the February 2, 2010 submittal described in s ection 2 of th is TSD; and the May 18, 2011 submittal described in s ection 1 of th is TSD , should be approved as revisions to the Texas SIP.