On October 7, 2022, EPA finalized the reclassifications for the 2008 8-hour ozone NAAQS (2008 Ozone Standard) in the HGB and DFW NA areas (87 FR 60926). The reclassifications became effective on November 7, 2022.
The HGB NA area includes Harris, Chambers, Liberty, Montgomery, Waller, Fort Bend, Galveston, and Brazoria counties and the DFW NA area includes Dallas, Tarrant, Rockwall, Collin, Denton, Wise, Parker, Kaufman, Johnson, and Ellis counties. Both the HGB and DFW NA areas are reclassified from “Serious” to “Severe” NA areas with new attainment date of July 20, 2027.
There are significant ramifications of these reclassifications for the industrial facilities in the HGB and DFW NA areas, which will require thoughtful planning and actions for compliance. Here are some of the insights.
Implications:
The major implications of the reclassifications of nonattainment for HGB and DFW areas are:
- Lower “major” source threshold for VOC and NOX – The “major” source threshold is reduced from 50 tpy to 25 tpy of VOC or NOX, which are precursors of ozone. Sources with current PTE between 25 and 50 tpy VOC or NOX will therefore join the category of “major” sources. These new major sources will now have to meet Reasonably Available Control technologies (RACT) for VOC/NOX sources per timeline and requirements in the state SIP, submit an annual EI, and need to submit a major source operating (Title V) permit application to the TCEQ within 1-year of the effective date of the reclassification.
As part of Title V compliance, these new major sources will be required to comply with several permit conditions for testing, monitoring, inspection, reporting, and recordkeeping. A robust and functional environmental management framework must be developed and maintained to ensure regulatory compliance with the new Title V requirements.
- Increased emission offsets – For construction of new sources or modification of existing sources that trigger NNSR, the emission offsets ratio will be increased from 1.2 to 1.3, thus increasing the construction costs (especially if demand for emission offsets also increases). These projects will therefore be more expensive and refined emission calculations and/or additional controls may be prudent first steps to avoid triggering NNSR.
- More facilities will require “Netting” and “LAER” – The major modification threshold of 25 tpy (VOC or NOX) and netting threshold of 5 tpy (VOC or NOX) remain the same. The newly minted “major” sources will be required to perform “netting” exercises for new projects, if the project emissions of VOC or NOx are above the netting threshold of 5 tpy.
Netting exercises are typically complex and often data for past projects required for netting are unavailable. Prudent decisions will need to be made in these cases. If projects cannot be netted out of NNSR (25 tpy or more increase of VOC or NOx), these projects will be required to install more stringent and expensive LAER controls.
- Potential program revisions – As part of the SIP revisions to address the reclassification, TCEQ may also evaluate the MECT program (applies to certain NOX-generating sources), as well as other control strategies for VOC and NOX.
Planning:
The new major sources will have to submit a Title V permit application within 12 months of the effective date of the reclassification (i.e., by November 6, 2023). Before submitting the Title V permit application, EDGE recommends that sites take a hard look at their sitewide emissions and evaluate options for reducing the sitewide emissions below the reclassified major source thresholds. If feasible, this will maintain the site in minor source status and avoid additional requirements for major sources.
How EDGE Can Assist:
EDGE can help you in this endeavor by critically reviewing current operations, identifying areas for refining emission calculations, identifying feasible controls, and reviewing proposed project emissions. In case major source status cannot be avoided, EDGE can help your site prepare and submit the Title V permit application and develop a robust environmental management system for regulatory compliance with Title V permit conditions.
Acronyms: (order as it appears in text)
EPA: United States Environmental Protection Agency
NAAQS: National Ambient Air Quality Standard
HGB: Houston-Galveston-Brazoria
DFW: Dallas-Fort Worth
NA: nonattainment
FR: Federal Register
tpy: tons per year
VOC: volatile organic compounds
NOX: nitrogen oxides
TCEQ: Texas Commission on Environmental Quality
PTE: Potential to Emit
RACT: Reasonably Available Control Technology
SIP: State Implementation Plan
EI: Emission Inventory
NNSR: Nonattainment New Source Review
LAER: Lowest Available Emission Rate
MECT: Mass Emission Cap and Trade