Ethanol Summit

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Ethanol Summit

• Clark Smith
• Nebraska Department of Environmental Quality
• Air Quality Permitting Section
• clark.smith_at_ndeq.state.ne.us

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Discussion Topics

• Construction Permit Triggers
• Commence Construction

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Construction Permit Triggers

• When is a construction permit required?
• When a source constructs, modifies, or
  reconstructs an emissions unit, and
• The change in emissions exceeds the thresholds in
  Chapter 17 and/or Chapter 19
• OR
• When the existing permit is worded such that the
  source cannot make the change they want

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Construction Permit Triggers

• Construction installation of a new emissions
  unit or source
• Modification any physical change in, or change
  in method of operation, of an affected facility
  which increase the amount of any air pollutant
  (some exclusions)
• Reconstruction a situation where the fixed
  capital cost of the new components exceed 50 of
  the fixed capital cost of a comparable entirely
  new facility or source

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Construction Permit Triggers

• Does the project increase potential emissions in
  levels that exceed thresholds in Chapter 17
  and/or Chapter 19?
• Does existing permit allow the change?
• How is permit worded?
• Any conditions that prohibit making the change?

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Construction Permit Triggers

• Source wants to change solvents. New solvent
  contains VOCs in amounts that exceed the CP
  thresholds CAS for the solvent not on HAP list.
• Will this be a physical change or change in the
  method of operation?

Answer YES, A Change in Method of Operation
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Construction Permit Triggers

• Source wants to change solvents. New solvent
  contains VOCs in amounts that exceed the CP
  thresholds CAS for the solvent not on HAP list.
• Does this change require a permit?

Answer YES, Based on the information given, a
permit is needed.
WHY The potential emissions due to the change
exceed the construction permit thresholds in
Chapter 17 and/or Chapter 19.
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Construction Permit Triggers

• NOWSource has permit that requires all emissions
  from solvent operations be sent to and controlled
  by a thermal oxidizer. The controlled emissions
  (using the control efficiency of the thermal
  oxidizer for VOC) are less than CP thresholds.
• Does this change require a permit?

Answer MAYBE, for VOC a permit is not required,
but is CAS for a solvent sufficient in
determining if HAPs are contained in the solvent
NO, if one or more of the components of the
solvent is a HAP, you will have to evaluate the
change in emissions for HAP.
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Construction Permit Triggers

• Ethanol plant wants to install 4th fermentation
  tank and connect it to existing scrubber.
  Uncontrolled emissions are greater than the CP
  thresholds, controlled emissions are less than
  the CP thresholds.
• Will this be a physical change or change in the
  method of operation?

Answer YES, A Physical Change

• Does this change require a permit?

Answer MAYBE,
You need to read your permit.
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Construction Permit Triggers

• Permit has enforceable requirement all emissions
  from fermentation must be routed to and
  controlled by a scrubber.
• If this was the only condition associated with
  the fermentation tanks, a permit would not be
  required because the controlled emission rate
  could be used in determining the increase in
  emissions.

• Another condition states that the source is
  permitted to construct three fermentation tanks.
• Is a construction permit required?

Answer YES, A permit is needed to construct the
fourth fermentation tank.
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Construction Permit Triggers

• Key items to consider
• Will this change be considered a physical change
  or change in method of operation?
• Will there be a change in emissions?
• Which regulations am I subject to (Federal or
  State)?
• How is my permit worded?
• Did I look at all of my permit conditions?

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Commence Construction

• Title 129 and all construction permits require a
  source to commence construction within 18
  months of permit issuance.
• What does it take to commence construction?
• Owner or operator has all necessary
  preconstruction approvals (i.e. obtained proper
  permits) and either has
• Begun, or caused to begin, a continuous program
  of physical on-site construction of the source
• Entered into binding agreements or contractual
  obligations which cannot be cancelled or modified
  without substantial loss to the owner or operator

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Commence Construction

• Begun, or caused to begin a continuous program of
  physical on-site construction refers to
  construction activities that are permanent in
  nature
• Footings and Foundations
• Underground Utilities to serve an Emissions Unit

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Commence Construction

• Entering into binding agreements with substantial
  losses
• The agreements and/or contracts must be in
  relationship to the physical on-site activities
  (contract to build, contract for equipment)
• EPA guidance suggests that the loss be in the
  range of 10 of the overall cost of the project.

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Commence Construction

• Revised General Condition I.(F) in Construction
  Permits
• The date construction, reconstruction or
  modification commenced as defined in Chapter 1,
  Section 031. Notification shall be postmarked no
  later than 30 days after such date and include a
  summary description of whether the requirement
  was met through
• (a) Initiating physical on-site construction
  activities of a permanent nature that meet the
  definition of begin actual construction, or
• (b) Entering into binding agreements or
  contractual obligations. If this option is
  used, the notice shall also include a brief
  summary of each binding agreement or contractual
  obligation entered into, the date of the
  agreement or contract, and why it cannot be
  cancelled or modified without substantial loss
  to the owner or operator.

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Any Questions?
Thank You! Clark Smith NDEQ Air
Division clark.smith_at_ndeq.state.ne.us