Document ID: EPA-R02-OAR-2008-0004-0019
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2008-03-06T05:00Z

Technical Support Document

NOx RACT Source Specific SIP Revision – State of New Jersey

Trigen-Trenton Energy Co. L.P.

February 29, 2008

INTRODUCTION

Title I of the Clean Air Act Amendments of 1990 (Act or CAA) contains
many new and revised requirements for areas that have not attained the
national ambient air quality standards for ozone.  Section 182(f) of the
Act requires States to apply the same requirements to major stationary
sources of nitrogen dioxide (NOx) as defined by §§ 302 and 182(c),
(d), and (e) of the Act, as are applied to major stationary sources of
volatile organic compounds (VOC).  The new NOx requirements are
reasonable available control technology (RACT) and new source review for
major stationary sources in certain ozone nonattainment areas and
throughout any ozone transport region. 

On November 25, 1992, the Environmental Protection Agency (EPA)
published a NOx Supplement to the General Preamble (NOx Supplement) to
provide guidance on implementation of new provisions of the Act
concerning emissions of NOx.  57 Fed. Reg. 55620 (Nov. 25, 1992).  The
reader should refer to “The General Preamble for Implementation of
Title I of the Clean Air Act Amendments,” 57 Fed. Reg. 13498 (Apr. 16,
1992), and the NOx Supplement for a more detailed discussion of the
other NOx requirements.

This technical support document (TSD) deals primarily with the State of
New Jersey Department of Environmental Protection’s (NJDEP’s) State
Implementation Plan (SIP) revision to the ozone SIP.  This SIP was
submitted to address the NOx RACT requirements specific to the internal
combustion engines operated by Trigen-Trenton Energy Company L.P., in
Trenton, NJ.

CLEAN AIR ACT REQUIREMENTS FOR NOx RACT AND OZONE ATTAINMENT; AND NEW
JERSEY’S NOx RACT REGULATION

A.	NOx RACT and Due Dates

	

	Section 182(f) of the Act provides that SIP provisions required for
major stationary sources of VOC also apply to major stationary sources
of NOx.  Section 182(b)(2) of the Act requires States in which
nonattainment areas are classified as “moderate,” or a higher
classification, to submit RACT rules for major stationary sources of VOC
emissions by November 15, 1992.  Therefore, States must submit RACT
rules for major stationary sources of NOx emissions in moderate
nonattainment areas and nonattainment areas with a higher classification
by November 15, 1992, and must provide for the implementation of the
required measures as expeditiously as practicable, but no later than May
31, 1995.

Applicability of NOx RACT

Major sources of NOx are subject to the same requirements as major
sources of VOC compounds.  Thus, the NOx RACT provisions apply to major
sources of NOx in ozone nonattainment areas moderate or higher and
throughout an ozone transport region.

Section 184(b)(2) of the Act requires any source of VOC which emits or
had a potential to emit (PTE) of 50 tons per year (TPY) in ozone
transport regions to be subject to the same requirements that apply to
major sources in ozone areas classified as moderate, unless a portion of
the State has been excluded from the ozone transport region under CAA §
176(a)(2).  Thus, where a State is designated in its entirety as a
transport region, the State must adopt rules to apply provisions for
ozone to any source which emits or has a PTE of 50 TPY of VOC compounds
statewide.  The Northeastern portion of the United States has been
designated an ozone transport region.  Thus CAA § 184(b)(2) requires
that all areas in northeastern states designated as
attainment/unclassified, as well as all ozone nonattainment areas, must
meet RACT requirements for NOx.

Section 182(f) of the Act specifically provides that major stationary
sources of NOx are to be defined by § 302 of the Act.  Section 302(j)
of the Act provides that a major stationary source is one with a PTE of
100 TPY.  Because the CAA § 182(f) definition refers specifically to
the CAA § 302 definition, the specific 50 TPY requirement for VOC major
stationary sources in an ozone transport region is limited to VOC
sources.  Therefore in ozone transport regions, attainment/unclassified
areas as well as marginal and moderate ozone nonattainment areas, a
major stationary source for NOx is considered to be one which emits or
has the PTE of 100 TPY or more of NOx, and is subject to the
requirements of a moderate nonattainment area.  See NOx Supplement, 57
Fed. Reg. 55620 (Nov. 25, 1992).  NJDEP has defined a major stationary
source for NOx as a source which has the PTE of 25 TPY, the level set
for severe 1-hour ozone nonattainment areas. 

History of New Jersey’s NOx RACT Rule, Subchapter 19.  

NJDEP held public hearings on March 18 and 19, 1993, to hear public
comments on the proposed rule.  Following the public hearings and the
comment period, on November 15, 1993, New Jersey adopted Title 7,
Chapter 27, Subchapter 19, of the New Jersey Administrative Code
(Subchapter 19 or N.J.A.C. 7:27-19), entitled “Control and Prohibition
of Air Pollution from Oxides of Nitrogen.”  NJDEP submitted Subchapter
19 to EPA as a revision to the SIP on November 15, 1993.  EPA reviewed
the SIP revision and found it to be administratively and technically
complete by December 29, 1993.  On October 2, 1995, EPA proposed a full
approval of NJDEP’s Subchapter 19.  60 Fed. Reg. 51379 (Oct. 2, 1995).
 The public comment period ended November 1, 1995.  EPA did not receive
any comments on the proposed full approval.  However, during this public
comment period, discussions developed among regional EPA offices as to
the approvability of rules, such as NJDEP’s Subchapter 19, containing
generic or “process oriented” provisions establishing RACT
requirements for major sources of NOx and/or VOC emissions.  The
approvability issue related to Subchapter 19’s generic provision was
resolved and EPA approved Subchapter 19.  60 Fed. Reg. 51379 (Jan. 27,
1997) Subchapter 19 became effective on February 26, 1997.

On March 24, 1995, NJDEP adopted amendments to Subchapter 19.  NJDEP
submitted the amended Subchapter 19 to EPA as a SIP revision on June 21,
1996.  EPA found the SIP revision to be administratively and technically
complete by September 26, 1996.  On August 31, 1998, EPA proposed a full
approval of NJDEP’s Subchapter 19.  63 Fed. Reg. 46209 (Aug. 31,
1998).  The public comment period ended September 30, 1998.  EPA did not
receive any comments on the proposed full approval.  EPA approved
NJDEP’s amendments to Subchapter 19.  64 Fed. Reg. 14832 (Mar. 29,
1999).  The amendments became effective on April 28, 1999.

On July 1, 1996, NJDEP adopted additional amendments to Subchapter 19. 
NJDEP amended Subchapter 19 to make the regulation consistent with a new
program called the Open Market Emissions Trading (OMET) Program at
Subchapter 30.  On October 27, 1998, NJDEP submitted the amended
Subchapter 19 to EPA as part of the OMET Program SIP revision.  EPA
determined the submittal to be administratively and technically complete
on December 22, 1998.  On January 9, 2001, EPA proposed a conditional
approval of NJDEP’s OMET Program SIP revision, including the
corresponding amendments to Subchapter 19.  66 Fed. Reg. 1796 (Jan. 9,
2001).  The public comment period ended March 12, 2001.  Subsequently,
EPA and NJDEP identified a number of problems with the OMET program.  On
October 18, 2002, EPA announced it would cease processing the OMET
Program SIP revision and withdrew its proposed conditional approval.  67
Fed. Reg. 64347 (Oct. 18, 2002).  On February 25, 2004, NJDEP terminated
the OMET Program and repealed Subchapter 30 through rulemaking.  NJDEP
also amended Subchapter 19 on April 5, 2004 (effective date), to delete
those provisions related to the OMET Program, and to include new
provisions for sources that participated in the OMET Program to comply
with RACT.  In an April 26, 2004 letter, EPA notified NJDEP that new
provisions proposed in Subchapter 19 were not consistent with the ACT
and EPA’s RACT guidance and, therefore, were not approvable as a SIP
revision.  The corresponding OMET amendments to Subchapter 19 that dealt
with sources that availed themselves of the OMET Program were not
repealed.  Therefore, they are still part of the rules in Subchapter 19.
 NJDEP committed to delete the OMET provisions from Subchapter 19, and
related rules, in future rulemaking.  

It should be noted that, since the July 1, 1996 adoption, NJDEP adopted
administrative changes amendments to Subchapter 19 four additional times
without submitting the revised rule to EPA for approval as SIP
revisions.  The additional amendments include the following effective
dates:  May 4, 1998 (29 N.J.R. 3521(a); 30 N.J.R. 1563(b)); 
Administrative change on March 1, 1999 (31 N.J.R. 639); May 15, 2000 (31
N.J.R. 1671(a); 32 N.J.R. 1808(a)); April 5, 2004 (35 N.J.R. 3486(a); 36
N.J.R. 1791(a)); October 17, 2005 (36 N.J.R. 4228(a); 37 N.J.R.
3976(a)); and November 21, 2005 (36 N.J.R. 4607(a); 37 N.J.R. 4415(a)). 
NJDEP adopted additional amendments to Subchapter 19, effective October
17, 2005.  On July 31, 2007, EPA approved these amendments to Subchapter
19 as part of the SIP.

Subchapter 19.13

The Source-Specific SIP revision discussed in this technical support
document was submitted to EPA, pursuant to Subchapter 19.  Subchapter
19.13 establishes a procedure for a case-by-case determination of what
represents RACT for a particular facility, item of equipment or source
operation.  This procedure is applicable in two types of situations: 
(1) where a major NOx facility contains any source operation or item of
equipment not listed in Subchapter 19.2 with the potential to emit more
than 10 tons of NOx per year; or (2) where the owner or operator of a
source operation or item of equipment that is listed in Subchapter 19.2
seeks approval of an alternative maximum allowable emission rate.  

	In the first instance, for any source operation or item of equipment at
a major NOx facility, with the potential to emit 10 TPY or more of NOx,
not specifically regulated under Subchapter 19.2, the owner/operator
must submit a 'NOx Control Plan' to the NJDEP.  This NOx Control Plan is
to include a technical and economic feasibility evaluation of NOx
control technologies as well as a proposed NOx emission limit.

	In the second instance, those specific sources subject to NOx limits
under Subchapter 19 may apply for an alterative emissions limit.  In
this case, NOx RACT control measures may be deemed impractical due to
some physical constraints or the control measures may be incapable of
reducing the emissions to the limits required under Subchapter 19.  In
this situation, the NJDEP may establish an alternative maximum allowable
emission rate for the affected sources.

	For each of these situations, Subchapter 19.13 provides that NJDEP
establish emission limits based upon a RACT determination specific to
the facility in question.  The procedures for requesting that
determination, and the standards for review of the request, are the same
in each situation.

	The owner or operator of a facility for which a NOx control plan is
required must obtain approval of the plan, implement it by May 31, 1995,
and continue to comply with it thereafter.  The Act imposes this
deadline.  Implementing the plan includes obtaining the required permits
and certificates, installing the approved NOx control technology, and
complying with the emission limits approved in the plan.  An owner or
operator seeking approval of an alternative maximum allowable emission
rate must obtain approval before the source operation or item of
equipment in question becomes subject to the rate normally applicable
under Subchapter 19, in order to avoid incurring violations for
exceeding that normally applicable rate.

	Subchapter 19.13(h) provides that "any alternate emissions limit
pursuant to Subchapter 19.3(c) or NOx Control Plan pursuant to
Subchapter 19.3(b) approved by the NJDEP will be submitted as an
amendment to the SIP for ozone."  An alternate emissions limit or NOx
Control Plan would be first proposed and adopted in New Jersey and then,
as required by law, submitted to EPA for approval as a SIP revision.  

Enforceability of Subchapter 19

For sources not subject to specific emission limitations or work
practice standards, N.J.A.C. 7:27-19.13 provides a procedure and
schedule that must be followed in order to comply with the Subchapter. 
Noncompliance with this procedure would constitute a violation of
Subchapter 19, which would subject the source owner or operator to civil
and/or criminal penalties, as applicable.  EPA believes this is
sufficient to ensure that sources comply and should EPA have to take
enforcement action, it could use the same provisions to obtain
compliance.

EPA will process all source-specific SIP revisions submitted by NJDEP,
regardless of the status of EPA approval of Subchapter 19, provided that
NJDEP complies with the following:

- provide evidence that NJDEP has the necessary legal authority under
State law to approve and implement the compliance plan with reference to
appropriate State laws and regulations;

provide a description of the enforcement procedure NJDEP will use should
it discover a violation;

provide a description of the compliance strategy NJDEP will use to
ensure compliance; and

include a copy of any relevant permits which are contained in the
compliance plan.  For “grandfathered” sources, the compliance plan
must identify the applicable enforceable requirements or restrictions.

III.	EPA’S ANALYSIS OF STATE SUBMITTAL

(Note this Technical Support Document summarizes the state submission. 
The complete RACT analysis, related correspondence and SIP revision are
available for inspection and review at the EPA Regional Office and NJDEP
State Office.)

Trigen-Trenton Energy Co. L.P. alternative NOx emission limit

Pursuant to Subchapter 19.3(h) “any alternate emissions limit pursuant
to section 19.3(c) or NOx Control Plan pursuant to section 19.3(b)
approved by the NJDEP will be submitted as an amendment to the SIP for
ozone.”  An alternate emissions limit or NOx Control Plan would be
first proposed in New Jersey as an amendment to the SIP and then
submitted to EPA, by law, as a SIP revision.  Similarly, Subchapter
19.21(f) requires NJDEP to submit repowering plans to EPA as a revision
to the SIP.  This technical support document discusses EPA’s analysis
of a single source-specific SIP revision.

In a letter dated August 7, 2007 to Regional Administrator Alan J.
Steinberg, NJDEP requested EPA’s approval of a revision to the NJ SIP
for ozone.  The request was for a NJ SIP revision for the Trigen-Trenton
Energy Co. L.P. (Trigen) facility located at 320 South Warren Street,
Trenton, Mercer County, New Jersey.  Trigen is a cogeneration facility
which produces electricity, hot water, and chilled water.  The facility
contains two stationary reciprocating internal combustion engines
(Cooper Bessimer Model: LSVB-20-GDT, 4 stoke), two heat recovery
boilers, and one backup diesel powered compressor.  The source-specific
SIP revision for Trigen was proposed by NJDEP on December 11, 2006
through public notice in The Times Newspaper, which is circulated in the
city of Trenton.  The public notice allowed 30 days for public comments
and the opportunity for a public hearing, offered upon written request. 
NJDEP did not receive any requests for a public hearing, therefore no
hearing was held.  EPA provided comments on the SIP revision prior to
adoption by NJDEP.  After reviewing and addressing EPA’s comments,
NJDEP adopted the source specific SIP revision on January 11, 2007.  As
part of the completeness review, EPA ensured that NJDEP complied with
the conditions discussed earlier in Section II.E. for source specific
SIP revisions.  This technical support document is the next step in
EPA’s rulemaking process.

NJDEP’s SIP revision consists of two attachments with multiple
enclosures.  Attachment 1 includes the following documents:

Enclosure 1: SIP Completeness Checklist

Enclosure 2: A copy of the Alternate Emission Limit approval document

Enclosure 3: Response to comments document

Enclosure 4: Statement of basis

Enclosure 5: A copy of the Public Notice and Opportunity for Public
Hearing

Enclosure 6: A copy of the Affidavit of Publication of Public Notice

Enclosure 7: A copy of the application package from the applicant and
other supporting documentation

Attachment 2 includes a copy of N.J.A.C. 7:27-19.1 et seq., Control and
Prohibition of Air Pollution from Oxides of Nitrogen, most recently
amended by New Jersey on November 21, 2005 and approved into the SIP by
EPA on July 31, 2007.  

The Trigen facility contains two engines and two boilers that exhaust
through a common stack which is monitored by Continuous Emission
Monitoring (CEM).  The individual emissions form the equipment cannot be
practically separated to directly determine the average g/bhp-hr
emissions between the two engines.  Therefore, compliance is
demonstrated by a comparison of total stack emissions to the sum of
NJDEP approved individual lb/hr permit limits for the applicable
operating scenario for each piece of equipment that is operating at any
time.

NJDEP had previously approved the existing alternative maximum NOx
emission limit (AEL) on November 4, 2005 based on information originally
supplied by Trigen in July 2004 and supplementary information was
submitted in October 2004 and February 2005.  The AEL approved on
November 4, 2005, allowed Trigen engines to emit 12.0 g/bhp-hr of NOx
during the operation of one or both of the engines on 100% low sulfur
distillate oil, without the other engine combusting dual fuel, for no
more than 1000 engine-hours per year.  The average emissions from both
engines, when one engine is operating on 100% distillate oil and the
other is operating dual fuel, is in compliance with the applicable NOx
RACT limit of 8.0 g/bhp-hr.  The engines utilize fuel injection
retardation and turbocharging to meet the NOx RACT limit.

As of March 7, 2007, the Trigen engines were required to comply with the
revised NOx RACT limit of 2.3 g/bhp-hr.  However, while combusting low
sulfur distillate oil, the engines will not meet either the NOx RACT
limit of 8.0 g/bhp-hr or 2.3 g/bhp-hr.  The only control measure
identified to allow the Trigen engines to comply with the RACT limit is
Selective Catalytic Reduction (SCR).  SCR was determined to be not
feasible both technologically and economically.  During periods of
natural gas curtailment, emergency, or when one engine is offline for
repair and maintenance, it may be necessary to operate one or both
engines on distillate oil.  Compliance with the NOx RACT limit of 2.3
g/bhp-hr cannot be achieved while combusting distillate oil. 

In order to comply with the revised RACT limit, Trigen has proposed to
install “Clean Burn” technology on the engines.  Trigen has
certified that after installing Clean Burn technology, the engines will
be in compliance with the revised RACT limit of 2.3 g/bhp-hr while
burning dual fuel.  However, the engines must combust 100% low sulfur
distillate oil during periods of startup, shutdown, injector clean out,
and major component break-in.  The AEL requested by Trigen and approved
by NJDEP allows operation with distillate oil when the combustion of
dual fuel is not possible, such as during natural gas curtailment,
emergencies, repair, maintenance, startup, shutdown, injector clean out
and major component break in.  NJDEP has approved the AEL under the
condition that combustion of 100% distillate oil is limited to 200 hours
per year per engine.

Trigen evaluated several control technologies to reduce NOx emissions
during operation.  Control technologies that were found to be
technically feasible were:

Fuel Injection Retardation

Turbocharging/Aftercooling

Trigen is currently employing fuel injection retardation on both engines
and can not benefit from any adjustment in this regard. 
Turbocharging/Aftercooling technology has already been employed at the
facility.  SCR was also evaluated as a method of NOx control.  NJDEP’s
review of the information found that SCR would be the only technically
feasible control technology, but Trigen determined that SCR would be
technically infeasible due to issues with increases in back pressure
beyond equipment limitations.  There are also physical limitations to
SCR, as space is an issue within the facility. Trigen provided an
updated cost effectiveness of SCR of $23,500/ton of NOx removed,
rendering it economically infeasible.  

	There were no reasonably available NOx control technologies identified
to reduce NOx emissions during periods when 100% distillate oil is
combusted.  NJDEP has approved an AEL to allow Trigen to use 100%
distillate oil for 200 hours per year per engine during startup,
shutdown, injector cleanout, major component break-in and during
emergencies.  Each startup and shutdown period is limited to 15 minutes.
 Trigen also may not operate more than one engine on 100% distillate oil
at any time, except during times of natural gas curtailment or
emergency.

	NJDEP’s January 11, 2007 Conditions of Approval for Trigen specify
the NOx emissions limits, combustion process adjustment, additional
emission testing and monitoring, recordkeeping and reporting
requirements.  These permit conditions are consitent with the NOx RACT
requirements specified in Subchapter 19.  Continued compliance will be
determined by NJDEP’s review of Trigen’s records and other source
data.  EPA reviewed Trigen’s application and NJDEP’s source-specific
SIP revision for completeness and approvability.  EPA agrees with the
technical and economic feasibility demonstration and the proposed
alternative maximum allowable NOx emission limit of 12.0 g/bhp-hr for
operating using 100% distillate oil only under specified conditions. 
EPA agrees with the use of Clean Burn technology to meet the RACT limit
of 2.3 g/bhp-hr while operating with dual fuel.  

	EPA provided comments regarding the Trigen AEL to NJDEP in May 2005 and
January 2007.  EPA requested documentation for the basis for the AEL and
an updated cost analysis for installing and operating SCR.  NJDEP
provided a basis for the 12.0 g/bhp-hr AEL by providing stack test data
while operating with 100% distillate oil.  NJDEP provided an updated
cost analysis for SCR reflecting the current NJ RACT emission limit of
2.3g/brhp-hr in its SIP revision.

APPOVABILITY RECOMMENDATION: Full Approval

	

 	The EPA defines RACT as the lowest emission limitation that a
particular source is capable of meeting by the application of control
technology that is reasonably available considering technological and
economic feasibility.  44 Fed. Reg. 53762 (Sept. 17, 1979).

 	On April 30, 2004, EPA published 40 C.F.R. § 50.9(b), inter alia, in
which it revoked the 1-Hour ozone NAAQS and provided June 15, 2004 as
the effective date of the 8-Hour ozone NAAQS.  69 Fed. Reg. 23951 (Apr.
30, 2004).  EPA stated in the preamble to that rulemaking:  “All areas
designated nonattainment for the 8-Hour ozone NAAQS and designated
nonattainment for the 1-Hour ozone NAAQS at the time of designation for
the 8-Hour NAAQS remain subject to control measures that applied by
virtue of the area’s classification for the 1-Hour NAAQS.”  69 Fed.
Reg. 23972 

(Apr. 30, 2004).