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UNITE D STATE S ENVIRONMENTA L PROTECTIO N AGENCY REGIO N I J.P . KEMNEO YFEOERaU . 8UILOINQ , BOSTON , MASSACHUSETT S 02201-321 1 

## A-^o 

## 3 7 TX-c-H- 3

OPTION* . K*W» f t < T ' 0 ° l Jun e 29 , 199 4

Denni s Keschl , Director Bureauo f Ai r Quality Contro l Department of Environmenta l Protectio n Stat e House , statio nNo . 1 7 Augusta , Maine 04333-474 $ 

# I iiii i i , .3>,2l.|995

- 

# L . - - EFAA:;!tT;:.TT 

# eZ.! : /i*** * Dea r Mr . K e Thi s lette r i s i

nrespons e t o a Main e Department o f Environmenta l Protectio

n(DEP ) inquir

y date dJanuar

y 7 , 1994 . A s discussedin tha t inquiry , Louician a Pacifi c Corporatio n(LPC ) propose s t o instal l tw

o Regenerativ

e Therma l Oxidizer s (RTOs ) mandateda s par t of a 199 3 consen t deci.e e wit hEPA . Additionally , LP C propooc o to increas e th e productio

nrat e a

t th e facility

fro m it s mrrfinr . rat e of 40 0 ton e per da

y (TPD ) o

t waterboar

dco 5i e TPD . LP C i blocate

dinNe w Limerick , Main

e whichi s par t of th e ozone transpor t region . Th e centra l questio

ni s whethe r th

e N0 X emission s increase s tro m th e RTO s ar«

^ subjec t t o th

e nonattainment area ne w source revie

w (NSR ) requirements ; insummary , th

e RTO s wil l caus e a significant ne t emission s increas e of N0 „ an

dtherefore arc subjec t t o nonattainment area NSR . Therefore , I.P C mus t secure sufficien t emissio

nreduction s o t NO . t o offse t ch

e emissions increas e associate dwithth

e installatio

no f th e RTOe . Becaus e th e RTO s wil l substantially reduc e th

e VOC emissions an

dare require

db y a federa l consent decree , EP

A wil l not objec t i t DEP issue s LPC a licens e t o conotruc t before th e compan

y secure s th

e require

dN0 Xoffset s as lon ga s th e DE P incorporate s appropriat e provision s withi nthe license . Regardin

gth e LPC proposa l to increas e productionat th e facility , EP

A ha s determine

dthat thi s change i s als o subjec t t o th e nonattainment area NSRprovisions fo r NO X . ; • The followin

g paragraph s wil l further explai nth e EPA' 3 position . Backgroun

d- DEt' s Positio

n The DE P performe

dnet-.tin

gcalculations whichindicat e a tota l N0 K emission s increas e of 9 2 tun s per yea

r (TPY) , 6 0 TPYassociated wit hth

e RTOc an

d3 2 TP Yassociate

dwithth

e productionincrease .

MVNTC O C m a*e<;*i;i.t u rAfer aDEt

f contend s tha t Sinc e the installationo f the RTO s i a mandate d a s par t o f a federa l consen t decre e an d i s no t a voluntary modificatio n initiate d b yLPC , the associate d N0 Kemission s Shoul d b e waive d fro mthe NS Roffse t requircmente . Furthermore , the DE P contend s tha t i f the increas e i n N0 Aemission s fromth e RTO s i s discounted , the NO x "lncreas e associate d wit hthe productio nincreas e woul d no t b e significan t an d woul d no t qualif ya s a majo r modificationsubjec t t o the NS Rrequirements . Issue s Associate d wit hthe RTOa EPArecognize s tna t LPC' s installation o f the RTO s i s a requiremen t o f a federa l consen t decre e an d tha t th e projec t wil l provid e a n environmenta l benetit. 1 However , LP C canno t b e excuse d fromth e CleanAil ' Ac t requiremen t t o obtai nemieeio n offset s fo r oignificant.ne t emission increase s o f N0 K . Th e consen t decree , settling EPA' s enforcemen t actio nagains t LPC , doe s no t provid e a waive r fro mthe offse t requirement . Consequently , LP C mus t mee t the offse t requirement . EPArealize s tha t emissio n offBet 3 o f NO xar e no t r&adil y availabl e i n Maine . Therefore , t o expedit e th e installatio no f th e RTOs , EPAwoul d no t objec t i f the DE P issue e a licens e t o construc t befor e the compan ysecure s the require d N0 Xoffset s provide d tha t certai n provision s ar e containe d withi nLPC' s license . Specifically , the licens e mus t contai na nexplicit , enforceabl e conditio n otating tha t LP C mus t obtai nfederally

enforceabl e offset s a s soon a s possible , bu t i nn o cas e late r tha n Decembe r 31 , 1995 . EPAreserve s the righ t t o enforc e agains t LP C i f the compan ydoe s no t obtai nth e require d offset s bythi s date . T

naddition , th e DE P mus t amend th e licens e t o includ e enforceabl e offse t provision s onc e LP C identifiee , quantifie s an

d cecure e thes e reductions . Productio

nIncreas e Issue s Th e DE P State d i nit s lette r that , i f the NO xemission s increas e associate d wit hth e operationo f the RTO s wa s waive d fromNS R offse t requirements , the productio n increas e propose d byLP C

1 Th e RTO s wil l substantiall yreduc e vo c emission s fromthe facility . Th e netting calculation s indicat e a creditabl e VO C emission s decrcao c o f onl y13.1 4 TPY . However , pleas e not e tha t sinc e th e source' s actua l emission s wer e wel l abov e the emission s currentl yallowe d i n LPC' s license , onlya emai l portion.o f the tota l VO C reductio n ar e creditable , EP Acalculate s a tota l VO C emission s reductio nO f 310. 4 TP Ybase d o n Lhe curren t actua l emission s a t 40 0 TP D productio nan d a reductio no f 418. 1 TP Y base d o n th e potentia l emission s a t 51 8 TP D production . (Se e environmenta l beneti t calculation contained i nth e Enclosure. )P. 4

u o cr r-i

woul d no t i nitsel f qualif ya s majo r modificatio nan d woul d no t b e oubjcc t to ' th e NG Rrequirements . LP C i s applying fo r the installatio n o f the RTO s along Mit ha productio nincreaoc . I n addition , th e netting calculation s incorporat e bot hth e RTO s an d the productio n increaoc . Therefore , the DE P shoul d no t view thes e separatel yfo r NSRapplicabilitypurposes . Furthermore , E P Areviewe d the -nettin g calculation s an

d ha s determine d tha t ther e wil l b e a significan t ne t emicoiono increas e o f N0 Xfrom th e productio nincrease . (See Enclosure. ) Therefore , th e productio n increas e i s subjec t t o the nuuattaiutueut are a NS R requirements . EPAcalculate d th e ne t emission s increas e o f N0 Xusing th e mos t recent , federall yenforceabl e N0 Xemission s allowe d i nLPC' s ai r emissio n license . Thi s i s becaus e the facility' s curren t actua l emission s ar e wel l above the facility' s licensed , federall y enforceabl e emissions . I f the curren t actua l emission s wer e used , th e netting calculation s woul d produc e a nartificiall ylow N0 Xemission s increao c and , consequently , reward th e facilit yfo r operating ou t o f compliance . Wit hregar d t o emissio n reduction credit s (i.e. , offsets) , EPA require s th e reduction s t o b e surplus , quantifiable , permanent , and federall yenforceabl e befor e a permi t t o construc t mayb e issued . I naddition , the offset s mus t b e i neffec t befor e the modifie d sourc e commence s operation . (See Lette r t o Denni s Kesch l date d Marc h1 , 1994. ) I f th e DE P decide s t o allocat e Burplu s emissio nreductio ncredit s fromit o enhance d inspectionan d maintenanc e (I/M ) programt o LP C fo r th e productio n increase , i t shoul d followth e criteri a outline d i n EPA' s Matc h1s t letter , wit hregard t o tedera i enforceability , EPAwil l no t objoc t i f the DE P issue s LPC' s permi t t o construc t prio r t o EP Aapprova l o f Maine' s enhance d I/M program tha t wil l geueiat e the offsetting N0 Xreductions , a s long a s LPC' s permi t contain s a federall yenforceabl e conditio ntha t expressl yprohibit s the commencemen t o f an yactua l operation s associate d wit hthe production increas e unti l EPA' S approva l O f Maine' s enhance d l/MSI P submitta l tha t wil l generat e th e offsets . I n addition , Main e shoul d follo wthe othe r reguirement s fo r issuing th e licens e an d quantifyin

g the reduction s outline d i n th e Marc h1s t letter .P. 5

1 1 P i V

I - '

Offse t Amoun t EP Anettin g calculation s indicat e th e installatio n o f th e RTO s an d th e productio n increas e wil l caus e a Significan t ne t emission s increas e o f 1S3. 6 TP YNO^ . Base d "o n th e offse t rati o o f 1.1 5 t o 1 applicabl e i n th e ozon e transpor t region , LP C shal l b e require d t o obtai n a tota l o f 176. 6 TP Yo f N0 Xemission s offsets. 2 (fle

e Enclosur e fo r EPA' s calculations. ) I f yo u o r you r otaf f hav e an yquestion s abou t ou r determinatio n i n thi s lette r o r th e associate d calculation s i n th e enclosure , pleas e contac t Bxenda n Mccahil l o f m ystar t a t (617 ) 565-3262 . Than k yo u fo r you r cooperation . Sincerely ,
Lind a M . Murphy , Direeto( J Air , Pesticide s an d Toxic s Managemen t Divisio n Enclosur e cc - Debra hRichar d Main e DE P Bryc e Sprou l - Main e DE P Joh n Chandle r - Main e DE P Mar c Con e - Main e DE P Pete r Chas e - Operation s Manager , LP C

7 Th e DE P aske d EP Ath e followin g question : I f Main e wer e t o pursu e an d obtai n a N0 Xwaive r fro mth e nonattainmen t are a NS K requirement s i n th e N0 Rattainmen t area s o f Main e locate d withi n th e OTR , coul d th e DE P "fre e up " previousl yallocate d N O offset s an d approv e the mfo r othe r uoc . EP Aha s determine d tha t i f Main e obtain s EP Aapprova l o f a N0 Awaive r fo r thes e areas , th e DE P coul d re-examin e th e ua e an d allocatio n O f thes e Offsets . (Pleas e note , however , tha t Main e coul d onl yreallocat e thos e emissio n reductio n credit s whic har e generate d afte r th e tim e o f EPA' s approva l o f th e N0 Xwaiver. )P. 6
idfc).' l /•• HIT . Ul 1

. 1

ENCLOSUR E NETTIN GCAIiCTTTATION S Allowable . Curren t and Potentia l Emiooio n Level s O n Novembe r 9, 1981 , th e DE P issue d a n ai z emission s licens e t o th e LP C whic hwa s amende d o n Decembe r 17 , 198 1 an d agai n o n Januax y27 , 1982 . Th e licens e authorize d LP C t o construc t an d operat e a 3 4 0 TP D wafcrboar d manufacturin g facilit yi n Ne w Limerick , Maine . O n Apri l 7 , 1988 , th e DE P grante d a licens e renewa l whic halauinclude d amendment s t o th e origina l constructio n licenses . Tabl e 1 show s th e NO Kan d VO C emissio n limit s fro mth e 198 8 license . Tahl e 1

Allowabl e Eiuibaiou Limit s a t 24 0 '1'ifU Dryer s Oi l Heater s Tota l NO . 7. .91 LB/H R

12.7 4 TP Y 1.9 7 LB/H R 8.6 3 TP Y 4.0 0 LB/H R 21.3 7 TP Y VO C 7 . 2PiT.R/H R

31.8 8 TP Y 4.9 2 LB/H R 21 . b bTP Y 12.2 0 LD/H R

53.4 3 TP Y
A s indicate d i n a DE P memorandumdate d Marc h30 , 1994 , LP C proteste d th e productio n limi t o f 24 0 TPD . Throug ha stat e enforcemen t action, 3 LP C in allowe d t o operat e a t a productio n rat e o f 40 0 TP D a a luii ya s th e particulat e matte r emission s limi t o f th e 190 0 licens e renewa l wer e me t byLPC . Th e DE P indicate d tha t th e facilit yi s i n complianc e wit hthi s requirement . I n a lette r date d Marc h17 , 1994 , th e DE P supplie d EP Ath e actua l emissions ? rate s fo r N O an d VOC s a t a productio n rat e o f 40 0 TPD . Thes e rate s ar e show n i n tabl e 2 . Tabl e 2 Actua l Emissio n Rate s a t 40 0 TP D
NO . Dryer s

8. 8 LB/H R 38; 5 TP Y Pres s Vent s

0. 0 LB/II

R 0 TP Y Oi l Heater s

9.7 0 LB/H R 42. 5 TP Y Tota l

18. 5 LB/H R 81. 0 IT Y VO C 50.6 7 LB/H R

222 TP Y 27.0 0 LB/H R

118.3 0 TP Y 0.7 5 LB/H R

3. 3 TP Y 78. 4 LB/H R

343. 6 TP Y

Not e tha t thi a consen t decre e i s no t federall y enforceable .P. 7 idB. / iv. / y / i 11 :

Durin g 1991-1992 , EP Afoun d severa l LP C facilitie s acros s th e countr yincludin g th e facilit ya t Ne wliimerick t o b e i n violatio n o f variou o SI P requirement s regardin g VO C emissions . A S par t o f th e settlement , I.P C agree d t o th e installatio n an d operatio n o f th e RTO s a t th e LP C facilit yi n Ne wLimeric k b yMarc h1 , 1995 . TiP C i s als o plannin g durin g thi s tim e perio d t o increas e productio n fro mth e actua l rat e o f 40 0 TP D t o a potentia l o f 51 8 TPD . Tabl e 3 give s th e potentia l emissio n rate s a t 51 8 TP D withou t RTOs . Tabl e 4 give s th e potentia l emission u rate s a t 51 8 TP D wit hth e RTOs . Tabl e 3

Potentia l Emissio n Rate s a t 51 8 TP D withou t RTO s
NO . Dryer s

11.6 6 LB/H R 52.0 0 Tr Y Pres s Vent e

0 LB/H K 0 TP Y O i lHeater s

14.6 1 l.K/H R 64.0 0TPY Tota l

26. 5 LB/H R llb. UTP Y VO C 65. 6 LB/H R

287. 0 TP Y 34.9 5 LB/H K

153.1 0 TP Y 2.5 5 LB/H R

11.2 0 TP Y 103. 1 LB/H R

451. 3 TP Y Tabl e 4 Potentia l Emissio n Rate s a t 51 8 TP D wit hRTO s NO . 18.5 6 LB/H R

81.3 0 TP Y 6.7 8 LB/H R

29.7 0 TP Y 14.6 1 LB/H R

64.0 0 TP Y 39.9 5 LB/H R

175.0 0 TP Y VO C 3.2 8 LB/H R

14.3 6 TP Y 1.7 5 LB/H R

7.6 7TPY 2.5 S LD/II R

11.2 0TPY 7.5 6 LB/H R

33.2 0 TP Y Nettin g Calculation s A s define d i n Paragrap h2 , Sectio n III.B. 4 o f th e EPA' s "Ne w Sourc e Worksho p Manual" , fo r a n existin g unit , actua l emission s jus t prio r t o eithe r a physica l o r operationa l chang e ar e base d o n th e lowe r o f th e actua l o r allowabl e emission s levelo . LPC' s mos t recent , fedeiall yenforceabl e allowabl e emission s level s ar e lowe r tha n th e curren t actua l emission s levels . Nettin g calculation s usin g th e correc t nettin g criteri a ar e show n below :P. 8

o o C P n r-i

t. r .

Futur e Potentia l Emissio n Leve l 51 0 TP D Wit hRT O Dxyer s (1 ) NO . 18.5 6 T.R/H

R VO C 3.2 8 LB/H R Oi l Heater s (2 ) NO x14.6 1 LB/H R VO C 2.5 5 LB/H R Pres s Vent s (2 ) NO . C.7 6 LB/H R Lowe r o f Existin g Actua l o r Allowabl e

2.9 1 LB/H R 7.2 8 LB/H R

1.9 7 LB/H R 0.7 5 LB/H R

0.0 0 LB/h K = Ne t Emission s

15.6 5 LB/H R(68.5 4 TPY ) •4.0 0 LB/H R(-17.5 2 TPY )

12.6 4 LB/H R 1.8 0 LB/IIR (55.3 6 TPY )

(4.3 8 TPY )

6.7 8 LB/H R(29.6 9 TPY ) (1 ) Base d o n th e license d leve l (54 0 TPD ) (2 ) VO C emission s base d o n curxen t actua l leve l (i n compliance) . N O base d o n license d level . (3 ) Th e pres s vent s shoul d hav e bee n addresse d i n th e origina l permi t bu t wer e not . Withou t thi s information , I t woul d b e complicate d t o calculat e th e lowe r o f actua l o r allowabl e VO C emissions . Sinc e th e vo c emission s calculation s di d no t effec t th e concluoion s presente d i n thi s letter , the ywer e no t include d here . Tota l Ne t Emission s Increas e

N 0 K VO C Dryer s 68.5 4 TP Y+ -17 . 5 2 TP Y1

- Heater s 55.3 6 TP Y+ 4.3 8 TP Y+ Vent s

29.6 9 O.OU TP Y TP Y Ne t Emission s

153.5 9 TP Y -13.1 4 TP Y
Base d upo n th e revise d calculations , DEP* 8 assertio n tha t th e propose d LP C productio n increao c woul d generat e 3 2 TP Yo f additiona l NO xappear s t o b e incorrect . Aquic k estimat e indicate s tha t b ysubtractin g th e NO xemission s increas e du e t o th e RTO s fro mth e revise d tota l ne t emission s -increase , th e N O emission s increas e fro mth e productio n increas e woul d b e 94. 6 TP Y (153. 6 TP Y- 50. 0 TrY * - 94 . C TPY) . Thi s indicate s tha t i f th e

* Th o 5 9 TP YN O increas e wa s calculate d b ysubtractin g th e potentia l emission s leve l a t 51 8 TP D withou t RT O fro mth e potentia l emission s leve l a t 51 8 wit hKT U(1/4.9 6 TP Y- 115.9 1 TP Y= ^ 9 TPY ) . Al l emission s lcvcl 3 wer e obtaine d fro mth e LP C BAC T analysi s fo r th e Ne wLimeric k facilit ydate d Augus t 31 , 1992 . 3P. 9

U O c r i-

i

f- r* NO emission s increas e associate d wit hthe RTO s wa s exclude d from NSR , th e propose d productio nrat e increas e woul d itsel f b e a majo r modificatio n subjec t t o the N3 Rrequirements . Environmenta l Benefi t Sinc e th e RTO s onl yprovid e a creditahl e ne t emission , decreas e o f 13.1 4 TP Yfo r VOC s a s oppose d t o a 15 3 TP Yincreas e i nNO , they d o no t appea r t o provid e a. substantia l ne t environmenta l benefit . However , mos t o f the reduction s achieved ar e no t creditabl e becaus e a sourc e canno t tak e credi t for operating ou t O f compliance . A s show n below , the tota l reduction s o f VOC s emission s achieve d b ythe RTO S i s considerable . Sl O TP D 40 0 TP D Tota l Reductio n wit hRTO s (Actual ) 33. 2 TP Y- 343. 6 TP Y= -310. 4 TP YVO C 51 8 TP D bi bTP D wit hRTO o withou t RTO s 33. 2 TP Y- 451. 3 TP Y= -418. 1 TP YVO C Thes e number s indicat e tha t the RTO s provid e a substantia l environmenta l benefit .