Recently, there were some significant developments for the 2008 and 2015 8-hour ozone NAAQS classifications for nonattainment areas in Texas. These developments will affect air permitting and compliance for many industrial sites located in these areas.
Background:
EPA is required to determine whether areas designated nonattainment for an ozone NAAQS attained the standard by the applicable attainment date. For areas that failed to attain [per CAA section 181(b)(2)], they must take certain steps to get back into attainment. Determination of attainment is based on the nonattainment area’s DV for a concentration-based standard, such as the ozone NAAQS. The 2008 and 2015 8-hour ozone standards’ DVs are 0.075 ppm (75 ppb) and 0.070 ppm (70 ppb), respectively, averaged over 3-years.
In Texas, the HGB area (Harris, Chambers, Liberty, Montgomery, Waller, Fort Bend, Galveston, and Brazoria counties), DFW area (Dallas, Tarrant, Rockwell, Collin, Denton, Wise, Parker, Kaufman, Johnson, and Ellis counties), and San Antonio are currently classified as follows:
2008 Ozone NAAQS Proposed Reclassifications:
On April 13, 2022, the EPA published in the Federal Register (FR Vol. 87 No. 71 21825) a final proposed determination that the HGB and DFW areas did not meet the 2008 8-hour ozone NAAQS of 75 ppb based on 2018-2020 ambient monitoring data. EPA also proposed to deny a 1-year extension of the attainment date requested by the TCEQ for the HGB area. The EPA proposal will receive comments for 60 days (until June 13, 2022) and there was a virtual public hearing on May 9, 2022. If these determinations are finalized after the public comment period (expected in July-August 2022), then the HGB and DFW areas will be bumped up from the current “Serious” to “Severe” nonattainment classification and the new attainment date will be no later than July 20, 2027. The reclassification will be effective after 6-months from the date of final determination published in the FR, which is expected to be in Q1 2023.
The major implications of this potential reclassification of nonattainment for HGB and DFW areas are:
- Lower “major” source threshold for VOC and NOX – The “major” source threshold will be reduced from the current 50 tpy to new 25 tpy. Sources with current PTE between 25-50 tpy VOC or NOX will now be newly minted “major” sources. These sources will have to meet RACT for VOC/NOX sources, submit an annual EI, and need to have a major source operating (Title V) permit within 1-year of the effective date of the reclassification.
- Emission offsets will be increased – 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). Note that the major modification threshold of 25 tpy and netting threshold of 5 tpy remain the same.
- Potential program revisions – As part of the SIP revisions to address the reclassification, TCEQ may also evaluate the MECT program as well as other control strategies for VOC and NOX.
What is interesting is that in denying HGB’s request for a 1-year extension of the attainment date for the 2008 8-hour ozone standard, EPA used EJ directives from the White House as one of the contributing factors. This is the first time EJ was used in this type of determination but may not be the last.
2015 Ozone NAAQS Proposed Reclassifications:
On April 13, 2022, EPA also published in the Federal Register (FR Vol. 87 No.71 21842) a final proposal that the HGB, DFW, and San Antonio areas did not attain the 2015 8-hour ozone NAAQS of 70 ppb and to reclassify these areas from current “Marginal” to “Moderate” nonattainment areas. Similar to the 2008 8-hour ozone NAAQS, this proposal will go through a 60-day comment period ending on June 13, 2022, and a virtual public hearing was held on May 9, 2022. If finalized, the reclassifications will be effective 6-months after the publication of final determinations in FR, expected in Q1 2023, with an attainment date of August 3, 2024. Interestingly, TCEQ submitted a petition and analysis to EPA suggesting that the San Antonio area did not meet attainment status because of contributions from international sources and should be exempted from reclassification, but this petition was denied by EPA in making this proposal.
For industrial sources in the HGB and DFW areas, the reclassification will not result in any additional permitting or compliance burden, because the more stringent requirements of the nonattainment classification of “Severe” under the 2008 ozone standard will prevail. For the San Antonio area, if the reclassification is finalized, the new requirements will be additional control technology in the form of RACT for existing major sources and an increase in emission offsets (from 1.1 to 1.15) for new construction and modifications.
Summary:
Many existing sources and new construction in the HGB, DFW, and San Antonio areas will face more stringent requirements for NOX and VOC control from Q1 2023 and beyond. Pending the finalization of the reclassifications, and for facilities with NOX/VOC PTE between 25-50 tpy, EDGE recommends that the sites take a hard look at their sitewide emissions and evaluate options for reducing the sitewide emissions below the new major source threshold, with the following steps:
(i) Review the current emission calculation methodologies for refinements; and
(ii) Review options for adding controls to the existing sources.
The objective will be to reduce the sitewide emissions below the new major source threshold of 25 tpy for NOX and VOC. All permit actions for the emission reductions must be submitted and be considered administratively complete prior to the effective date of the reclassification, so the time for planning is now. For major projects, EDGE recommends factoring in the additional cost for the higher emission offset purchases (more offsets and higher cost per offset).
EDGE will continue to monitor the developments and provide updates. If you have any question on how this reclassification may impact your sites and plans for future operations, please contact EDGE today.
Acronyms: (order as it appears in text)
EPA: United States Environmental Protection Agency
NAAQS: National Ambient Air Quality Standard
CAA: Clean Air Act
DV: design value
ppm: parts per million
ppb: parts per billion
HGB: Houston-Galveston-Brazoria
DFW: Dallas-Fort Worth
FR: Federal Register
TCEQ: Texas Commission on Environmental Quality
Q1: quarter 1
VOC: volatile organic compounds
NOX: nitrogen oxides
tpy: tons per year
PTE: Potential to Emit
RACT: Reasonably Available Control Technology
EI: Emission Inventory
NNSR: Nonattainment New Source Review
SIP: State Implementation Plan
MECT: Mass Emissions Cap and Trade
EJ: environmental justice