State Registration Number K1271 Michigan Department of Environmental Quality Air Quality Division RENEWABLE OPERATING PERMIT STAFF REPORT ROP Number MI-ROP-K1271-2012 Henry Ford Hospital SRN: K1271 Located at 2799 W. Grand Boulevard, Detroit, Michigan 48202 Permit Number: MI-ROP-K1271-2012 Staff Report Date: March 26, 2012 This Staff Report is published in accordance with Sections 5506 and 5511 of Part 55, Air Pollution Control, of the Natural Resources and Environmental Protection Act, 1994 PA 451, as amended (Act 451). Specifically, Rule 214(1) requires that the Michigan Department of Environmental Quality (MDEQ), Air Quality Division (AQD), prepare a report that sets forth the factual basis for the terms and conditions of the Renewable Operating Permit (ROP). Page: 1 TABLE OF CONTENTS MARCH 26, 2012 STAFF REPORT 3 SEPTEMBER 5, 2012 STAFF REPORT ADDENDUM 7 NOVEMBER 20, 2012 STAFF REPORT ADDENDUM 13 Page 2 State Registration Number Michigan Department of Environmental Quality Air Quality Division RENEWABLE OPERATING PERMIT K1271 ROP Number MI-ROP-K1271-2012 MARCH 26, 2012 STAFF REPORT Purpose Major stationary sources of air pollutants, and some non-major sources, are required to obtain and operate in compliance with a ROP pursuant to Title V of the federal Clean Air Act of 1990 and Michigan’s Administrative Rules for air pollution control pursuant to Section 5506(1) of Act 451. Sources subject to the ROP program are defined by criteria in Rule 211(1). The ROP is intended to simplify and clarify a stationary source’s applicable requirements and compliance with them by consolidating all state and federal air quality requirements into one document. This report, as required by Rule 214(1), sets forth the applicable requirements and factual basis for the draft permit terms and conditions including citations of the underlying applicable requirements, an explanation of any equivalent requirements included in the draft permit pursuant to Rule 212(5), and any determination made pursuant to Rule 213(6)(a)(ii) regarding requirements that are not applicable to the stationary source. General Information Stationary Source Mailing Address: Source Registration Number (SRN): North American Industry Classification System (NAICS) Code: Number of Stationary Source Sections: Is Application for a Renewal or Initial Issuance? Application Number: Responsible Official: AQD Contact: Date Permit Application Received: Date Application Was Administratively Complete: Is Application Shield In Effect? Date Public Comment Begins: Deadline for Public Comment: Henry Ford Hospital 2799 W. Grand Boulevard Detroit, Michigan 48202 K1271 622110 1 Initial Issuance 200900082 Dan Murakami, Plant Operations Manager 313-916-2202 Terseer Hemben, Environmental Engineer 313-456-4677 05/27/2009 05/27/2009 Yes March 26, 2012 April 25, 2012 Page 3 Source Description The Henry Ford Hospital is located at 2799 West Grand Boulevard in the City of Detroit, Michigan. The facility operates diesel generators as emergency electrical power supply backup, 4 boilers and an ethylene oxide sterilizer for the hospital. The electric generators are reciprocating internal combustion engines with series of generators rated 300 KW to 2000 KW. The generators were initially exempt and limited to operate for 4 hours per month for testing and maintenance. The engines were subsequently permitted to operate in excess of the limited 4 hours per month, for emergencies only. The Hospital requested that the generators should be changed from emergency use only to include occasional power production during high demand periods to assist the power utility to meet their load obligations. In this respect, the Hospital applied for a Renewable Operating Permit to cover the emissions at the facility. The following table lists stationary source emission information as reported to the Michigan Air Emissions Reporting System in the 2010 submittal. TOTAL STATIONARY SOURCE EMISSIONS Pollutant Tons per Year Carbon Monoxide (CO) Lead (Pb) Nitrogen Oxides (NOx) Particulate Matter (PM) Sulfur Dioxide (SO2) Volatile Organic Compounds (VOCs) 15.85 0.00008 25.85 3.81 0.71 0.90 In addition to the pollutants listed above that have been reported in MAERS, the potential to emit of Greenhouse Gases in tons per year of CO2e is < 100,000. CO2e is a calculation of combined global warming potentials of six greenhouse gases (carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride. See Parts C and D in the draft ROP for summary tables of all processes at the stationary source that are subject to process-specific emission limits or standards. Regulatory Analysis The following is a general description and history of the source. Any determinations of regulatory non-applicability for this source are explained below in the Non-Applicable Requirement part of the Staff Report and identified in Part E of the ROP. The stationary source is located in Wayne County, which is currently designated by the U.S. Environmental Protection Agency (USEPA) as attainment/unclassified for all criteria pollutants. The stationary source is subject to Title 40 of the Code of Federal Regulations (CFR), Part 70, because the potential to emit all criteria pollutants exceeds 100 tons per year. The potential to emit Greenhouse Gases is 100,000 tons per year or more calculated as carbon dioxide equivalents (CO2e) and 100 tons per year or more on mass basis. No emissions units at the stationary source are currently subject to the Prevention of Significant Deterioration (PSD) regulations of Page 4 Part 18, Prevention of Significant Deterioration of Air Quality of Act 451, because at the time of New Source Review permitting the potential to emit of carbon monoxide was less than 100 tons per year At this time, there are no GHG applicable requirements to include in the ROP. The mandatory Greenhouse Gas reporting Rule under CFR 98 is not an ROP applicable requirement and is not included in the ROP. No emission units are subject to the federal Compliance Assurance Monitoring rule under 40 CFR, Part 64, because all emission units at the stationary source either do not have a control device or those with a control device do not have potential pre-control emissions over the major source thresholds. Please refer to Parts B, C and D in the draft ROP for detailed regulatory citations for the stationary source. Part A contains regulatory citations for general conditions. Source-wide Permit to Install (PTI) Rule 214a requires the issuance of a Source-wide PTI within the ROP for conditions established pursuant to Rule 201. All terms and conditions that were initially established in a PTI are identified with a footnote designation in the integrated ROP/PTI document. Streamlined/Subsumed Requirements This permit does not include any streamlined/subsumed requirements pursuant to Rules 213(2) and 213(6). Non-applicable Requirements Part E of the draft ROP lists requirements that are not applicable to this source as determined by the AQD, if any were proposed in the application. These determinations are incorporated into the permit shield provision set forth in Part A (General Conditions 26 through 29) of the draft ROP pursuant to Rule 213(6)(a)(ii). Processes in Application Not Identified in Draft ROP The following table lists processes that were included in the ROP application as exempt devices under Rule 212(4). These processes are not subject to any process-specific emission limits or standards in any applicable requirement. Exempt Emission Unit ID EUE&RGEN5 EUWCLINICGEN6 EUWCLINCGEN7 Description of Exempt Emission Unit 150 KW outside Emergency generator for E & R, aka Engine 8 620 KW emergency generator in West Clinic, east side, aka engine 6 620 KW emergency generator in Page 5 Rule 212(4) Exemption R 336.1212(f) Rule 201 Exemption Rule 285(g) R 336.1212(f) Rule 285(g) R 336.1212(f) Rule 285(g) Exempt Emission Unit ID EUSOLVDIST Description of Exempt Emission Unit West Clinic, west side, aka engine 7 Solvent distillation unit with batch capacity much less than 20 gallons Rule 212(4) Exemption Rule 201 Exemption R 336.1212(f) Rule 285(g) Draft ROP Terms/Conditions Not Agreed to by Applicant This permit does not contain any terms and/or conditions that the AQD and the applicant did not agree upon pursuant to Rule 214(2 Compliance Status The AQD finds that the stationary source is expected to be in compliance with all applicable requirements as of the effective date of this ROP. Action taken by the DEQ The AQD proposes to approve this permit. A final decision on the ROP will not be made until the public and affected states have had an opportunity to comment on the AQD’s proposed action and draft permit. In addition, the U.S. Environmental Protection Agency (USEPA) is allowed up to 45 days to review the draft permit and related material. The AQD is not required to accept recommendations that are not based on applicable requirements. The delegated decision maker for the AQD is Teresa Seidel, Field Operations Supervisor. The final determination for ROP approval/disapproval will be based on the contents of the permit application, a judgment that the stationary source will be able to comply with applicable emission limits and other terms and conditions, and resolution of any objections by the USEPA. Page 6 State Registration Number K1271 Michigan Department of Environmental Quality Air Quality Division RENEWABLE OPERATING PERMIT SEPTEMBER 5, 2012 STAFF REPORT ADDENDUM ROP Number MI-ROP-K1271-2012 Purpose A Staff Report dated March 26, 2012, was developed in order to set forth the applicable requirements and factual basis for the draft Renewable Operating Permit (ROP) terms and conditions as required by R 336.1214(1). The purpose of this Staff Report Addendum is to summarize any significant comments received on the draft ROP during the 30-day public comment period as described in R 336.1214(3). In addition, this addendum describes any changes to the draft ROP resulting from these pertinent comments. General Information Responsible Official: AQD Contact: Dan Murakami, Plant Operations Manager 313-916-2202 Terseer Hemben, Environmental Engineer 313-456-4677 Summary of Pertinent Comments The Michigan Department of Environmental Quality (MDEQ), Air Quality Division (AQD) received the following comments from the Environmental Protection Agency during the public comment period from March 26, 2012 to April 25, 2012. EPA Comment 1: Conditions 1.1, 1.2, and 1.3 for Emission Unit EUENGINE 12a, located on page 14 of the draft permit, establish the emission limits required for a 2,000 kW, 20 MMBtu/hr. diesel-fired generator. These conditions come from PTI 186-06B via Subpart IIII of 40 CFR 60 Condition IX.l of PTI 186-06B for EUENGINE12a, included in this draft permit as Condition IX.l for EUENGINE12a on page 16, states that "the permittee shall comply with all applicable requirements of [40 CFR 60 Subpart IIII]". 40 CFR § 60.4205 refer to Table 1 to Subpart IIII of 40 C.F.R. 60 which contains the applicable emission limits for this engine, including an emission limit for hydrocarbons (HC) of 1.3 g/kW-hr. However, the limit for HC emissions is not included in this permit. Please either add the HC limit of 1.3 g/kW-hr to this permit or provide an explanation why this limit is not applicable to EUENGINE12a. AQD Response 1: AQD agrees and has added the HC limit in Condition I.4 on page 14. Page: 7 EPA Comment 2: Conditions 1.1, 1.2, and 1.3 for EUENGINE12a refer to conditions IL3 and II.4 for monitoring and testing. However, these conditions do not seem to exist in this draft permit. If conditions II.3 or II.4 are included as conditions within another part of the permit, such as a flexible group that includes EUENGINE12a as a member unit, then the permit should reflect that location in the permit when the reference is established. However, if the reference to conditions II.3 and IL4 is to a requirement for another unit or flexible group for which EUENGINE12a is not a member then the requirements should Be repeated for EUENGINE12a specifically. Please either update both references to existing conditions that provides for sufficient monitoring, reporting, and recordkeeping of the emission limits or add conditions for monitoring and testing sufficient to ensure compliance with the limits in Conditions I.1, I.2, and I.3. AQD Response 2: AQD agrees and has updated the references listed on page 14. EPA Comment 3: Condition II.2 for EUWPAVGEN8, located on page 20 of the draft permit, limits the amount of distillate oil used in the West Pavilion Emergency Generator to 58,000 gallons of distillate oil per rolling 12-month period. Special Condition (SC) 5 of PTI 355-97 establishes the limit at 58,500 gallons of distillate oil per rolling 12-month period. Please either update the permit to read 58,500 gallons as opposed to 58,000 gallons or provide an explanation why the limit changed. AQD Response 3: AQD agrees and has revised Condition II.2 to reflect this change. EPA Comment 4: Condition I for EUBUNITGEN, located on page 22 of the draft permit, establishes emission limits for the B unit-HFHS No. 9 emergency generator. The permit refers to General Condition (GC) 12 of the permit as the method for testing and monitoring compliance with these limits. GC 12 says that the permittee shall not emit air contaminants in quantities that impact human health, safety, and enjoyment of life and property. As written, GC 12 does not seem to provide for sufficient monitoring or testing to show compliance with the emission limits. Please either add sufficient monitoring, testing, and recordkeeping so that compliance with the emission limits can be enforced practically, provide a reference to an appropriate specific permit condition that can be used to ensure continuous compliance with the emission limits, or provide an explanation why the current monitoring, testing, and recordkeeping requirements in the draft permit are sufficient to ensure continuous compliance with these limits. AQD Response 4: AQD agrees and has replaced GC 12 with GC 13 on page 22. In addition, references to monitoring/recordkeeping conditions were added. EPA Comment 5: Condition II.2 for EUBUNITGEN, located on page 22 of the draft permit, states that the sulfur content of the fuel used in this emergency generator shall not exceed 15 ppm. The permit does not contain monitoring, testing, or recordkeeping to ensure compliance with the sulfur content limit. The permit should at least include keeping records of the sulfur content in the fuel as per SC 3 of PTI 307-99. Please either add sufficient monitoring, testing, and recordkeeping requirements to ensure compliance with the sulfur content limit in the fuel or explain why the Page 8 current monitoring, testing, and recordkeeping requirements in the draft permit are sufficient to ensure compliance with this limit. AQD Response 5: AQD agrees and has added Condition VI.1 on page 23. EPA Comment 6: PTI 287-01 establishes emission and material usage limits for EUCLVBOILER of 7.15 tpy and 143 MMCF of natural gas, both calculated as a 12-month rolling sum, respectively. Neither limit is included on page 24 of the draft permit. Additionally, page 13 of the draft permit states that EUCLVBOILER meets current exemption requirements. Please clarify the exemption for which EUCLVBOILER qualifies. If necessary, the conditions for EUCLVBOILER to qualify for the exemption should also be included in the permit. Also, please either add the emission and material usage limits as listed in PTI 287-01 along with sufficient monitoring and testing to ensure compliance or explain why these limits are no longer required. AQD Response 6: AQD agrees and included the limits from PTI-287-01 on pages 24 and 25. In addition, the exemption reference was deleted from the Emission Unit Summary Table on page 13. EPA Comment 7: Condition I.I for FGPEAKSHAVERS, located on page 28 of the draft permit, establishes a Nitrogen Oxides emission limit of 13.5 tpy for member units of this flexible group. Condition III.1 for FGPEAKSHAVERS establishes an operational restriction of 1,500 hours per 12-month rolling time period as established at the end of each calendar month. Currently, the draft permit does not require the permittee to track the number of hours the units are operated. Please either add sufficient monitoring and testing to ensure continuous compliance with these limits or explain why the monitoring and testing is sufficient to ensure continuous compliance with the operating limit. AQD Response 7: AQD agrees and has added Condition VI.1 on page 29. EPA Comment 8: PTI 279-07 is included in the permit record for Henry Ford Hospital. However, this PTI is not listed in the table under Appendix 6 on page 43 of the draft permit. Please ensure that the requirements from PTI 279-07 are added to the draft permit or explain why the conditions established in PTI 279-07 no longer apply to the source. AQD Response 8: PTI 279-07 was not included in Appendix 6 or in the draft permit because the equipment has been removed from the facility. EPA Comment 9: The following minor typographical errors were found while reviewing the permit: a. Condition III.2 of EUTOSTER1, located on page 18 of the draft permit, should begin as "The permittee shall not operate [...]". b. The word "e" should be "be" in the second sentence of Condition VII.3 for EUTOSTER1, EUWPAVGEN8, EUBUNITGEN, and FGENGINES. Page 9 c. Condition I.1 for FGENGINES, located on page 30 of the draft permit, refers to SC 1.2 for monitoring/testing method. This condition does not exist within this permit. d. Conditions III.4, III.5, and III.6 for FGENGINES9-10-11, located on page 32 of the draft permit, should refer to EUENGINE9, EUENGINE10, and EUENGINE11, respectively. e. Condition VI.l for FGENGINES9-10-11, located on page 33 of the draft permit, the hour meter should be "with a non-resettable" as opposed to "with-resettable". f. Condition II.3 for FGBOILERS, located on page 38 of the draft permit, should limit natural gas usage to 1,515,480,000 cubic feet per year as opposed to 1,515,480,000 gallons per year of fuel oil per PTI 186-06B. g. The third line of the table on page 43 of the draft permit should refer to PTI 355- 97 instead of 355-98. AQD Response 9: AQD agrees and has corrected the typographical errors. The Michigan Department of Environmental Quality received the following comments from Henry Ford Hospital (HFH) during the company’s review of the proposed changes to the ROP: HFH Company Comment #1: The facility operates diesel generators as emergency electrical power supply backup, 3 boilers (Change to “4” boilers) and an ethylene oxide sanitary system (change “sanitary system” to “sterilizer”) for the hospital. AQD Response 1: AQD agrees and has changed the number and verbiage. HFH Company Comment #2 In the remainder of that paragraph, we would not suggest replacing the original language in the Staff report: “The generators were initially exempt and limited to operate for 4 hours per month for testing and maintenance. The engines were subsequently permitted to operate in excess of the limited 4 hours per month, for emergencies only. The Hospital requested that the generators should be changed from emergency use only to include occasional power production during high demand periods to assist the power utility to meet their load obligations. In this respect, the Hospital applied for a Renewable Operating Permit to cover the emissions at the facility.” with the following: “All of the generators are "emergency generators" installed to provide backup power in case the electrical grid is down. In addition, generators have been permitted to include occasional power production during high demand periods to assist the power utility to meet their load obligations.” AQD Response 2: AQD held a phone meeting with HFH representative seeking clarification on the comment. HFH representative rescinded the recommendation stating the comment was an oversight, and was withdrawn. HFH Company Comment #3 to the ROP: In the attached Draft ROP, on page 27, boilers 4, 5 and 6 are listed under FGENGINES; they should be removed from this list. Page 10 AQD Response 3: AQD agrees and the correction was made to the boilers FG classification list. HFH Company Comment #4 Just above this, under FGENGINES9-10-11, the description should be three outside generators (not necessarily the IPD generator, the two other generators have different names.) AQD Response 4: AQD agrees and the correction was made to the generators’ description. HFH Company Comment #5 On page 44, the B unit generator is in the ROP, and is not NA. NA should be replaced with EUBUNITGEN AQD Response 5 AQD agrees and the correction was made to the Emission Unit assignment status. Changes to the March 26, 2012 Draft ROP During the AQD review, the following changes were made to the draft ROP. Throughout the document, the AQD corrected typographical errors in Emission Unit and Flexible Group IDs related to the proposed ROP. Changes to draft ROP based on EPA comments: On page 14, added the limit of HC emissions 1.3 kg/kW-hr as Condition I.4 and added references to monitoring/recordkeeping conditions. On page 14, removed conditions II.3 and II.4, and added conditions II.1 and II.2. The references were updated. On page 18, corrected typographic error by deleting “change” from the Condition III.2 of EUTOSTER1. On page 19, corrected typographic error by inserting letter “b” to read “be” in Condition VII.3. On page 20, corrected the typographic error in Condition II.2 by replacing 58,000 gallons with 58,500 gallons. On page 22, II.1, II.2, III.1, III.2, VI.1 as testing/monitoring/recordkeeping requirements in support of GC 13 in Condition I. On page 23, added a monitoring/recordkeeping requirement, Condition VI.1, for compliance assurance. On page 24, added the emission and material usage limits along with sufficient monitoring and testing to ensure compliance. On page 29, added a monitoring/recordkeeping requirement, Condition VI.1, pertaining to the hours of operation to ensure compliance with limits. Page 11 On page 30, the reference to SC I.2 was deleted. On page 33, corrected conditions III.4, III.5, and III.6 by removing the extra spaces and letters in the emission unit names. On page 34, corrected phrase “with resettable” to “with a non-resettable”. On page 39, corrected limits units to 1,515,480,000 cubic feet per year of natural gas. On page 44, corrected permit listing to PTI 355-97 in Appendix 6. Changes to draft ROP based on HFH Company’s Comments: During the AQD review, the following changes were made to the proposed ROP: Within the Source Description text, (a) corrected the number of boilers from “3” to “4” boilers, and (b) corrected verbiage from “sanitary system” to “sterilizer”. The language in the remainder of the paragraph remained unchanged consistent with the HFH’s request. On page 27 of the ROP, corrected boilers 4, 5, and 6 listing under FGENGINES by removing them from the FGENGINES list. On page 27, of the ROP, corrected the description of the FGENGINES9-10-11 to “three outside emergency generators”. On page 44 of the ROP, corrected the B unit generator emission unit from “NA” to EUBUNITGEN. Page 12 Michigan Department of Environmental Quality Air Quality Division State Registration Number RENEWABLE OPERATING PERMIT ROP Number K1271 NOVEMBER 20, 2012 STAFF REPORT ADDENDUM MI-ROP-K1271-2012 Purpose A Staff Report dated March 26, 2012, was developed in order to set forth the applicable requirements and factual basis for the draft Renewable Operating Permit (ROP) terms and conditions as required by R 336.1214(1). The purpose of this Staff Report Addendum is to summarize any significant comments received on the draft ROP during the 45-day EPA comment period as described in R 336.1214(3). In addition, this addendum describes any changes to the proposed ROP resulting from these pertinent comments. General Information Responsible Official: AQD Contact: Dan Murakami, Plant Operations Manager 313-916-2202 Terseer Hemben, Environmental Engineer 313-456-4677 Summary of Pertinent Comments No pertinent comments were received during the 45-day EPA comment period. Page 13
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