Page 1 of 32 Permit Issue Date: Region: Mooresville Regional Office County: Catawba NC Facility ID: 1800073 Inspector’s Name: Tonisha Dawson Date of Last Inspection: 06/03/2015 Compliance Code: 3 / Compliance - inspection Facility Data Permit Applicability (this application only) NORTH CAROLINA DIVISION OF AIR QUALITY Air Permit Review All applicable regulations subject to review SIP: NSPS: NESHAP: PSD: PSD Avoidance: NC Toxics: 112(r): Other: Applicant (Facility’s Name): Duke Energy Carolinas, LLC - Marshall Steam Station Facility Address: Duke Energy Carolinas, LLC - Marshall Steam Station 8320 East NC Hwy 150 Terrell, NC 28682 SIC: 4911 / Electric Services NAICS: 221112 / Fossil Fuel Electric Power Generation Facility Classification: Before: Title V After: Title V Fee Classification: Before: Title V After: Title V Application Data Facility Contact J LaSala Senior EHS Professional (828) 478-7820 8320 East NC Hwy 150 Terrell, NC 28682 Authorized Contact Rick Roper General Manager III (828) 478-7600 8320 East NC Hwy 150 Terrell, NC 28682 Technical Contact William Horton Lead Environmental Specialist (980) 373-3226 526 South Church Street Charlotte, NC 28202 Application Number: 1800073.13B, 14E, 15C, 16A and 16B Date Received: See chronology Application Type: Renewal Application Schedule: TV-Renewal/Modification Existing Permit Data Existing Permit Number: 03676/T53 Existing Permit Issue Date: 02/10/2017 Existing Permit Expiration Date: 01/31/2022 Total Actual emissions in TONS/YEAR: CY SO2 NOX VOC CO PM10 Total HAP Largest HAP 2014 5917.45 9917.04 100.94 2180.70 1004.30 99.98 84.76 [Hydrogen chloride (hydrochlori] 2013 4703.86 11854.28 89.99 1952.62 1201.47 105.27 86.10 [Hydrogen chloride (hydrochlori] 2012 4599.15 11027.63 105.42 2305.47 1070.66 141.29 116.74 [Hydrogen chloride (hydrochlori] 2011 3852.98 9086.27 132.55 2898.98 1809.95 179.07 147.14 [Hydrogen chloride (hydrochlori] 2010 3657.90 9608.90 145.52 3177.09 1295.51 192.06 160.65 [Hydrogen chloride (hydrochlori] Review Engineer: Joseph Voelker Review Engineer’s Signature: Date: Comments / Recommendations: Issue 03676/T54 Permit Issue Date: Permit Expiration Date: Page 2 of 32 Purpose of Application Duke Energy Carolinas, LLC - Marshall Steam Station (referred to as Duke or Duke Energy) operates four No.2 fuel oil / coal fired electric utility boilers. The purpose of this application(s) is to: Subject the modifications addressed in permit no. T49 to the TV permitting process. (application no. 13B) Renew the air permit as requested pursuant to application no. 14E Modify the Title IV Acid Rain permit pursuant to application no. 15C Renew the Title IV Acid Rain permit pursuant to application no. 16A Subject the modifications addressed in permit no. T51 to the TV permitting process. (application no. 16B) Address Applicability Determination no. 2953 - Request to burn coal contaminated by inadvertent spills Address Applicability Determination no. 2954 - Coal Pile Dust Suppressant Chronology The following is a chronology of important dates relating to the applications currently being addressed at this time. See Section III for the complete permitting history since last permit renewal. Date 10/02/2013 3/13/2014 07/30/2014 12/11/2014 2/27/2015 06/26/2015 7/14/2015 11/19/2015 2/1/2016 2/29/2016 05/31/2016 7/1/2016 7/27/2016 08/11/2016 10/11/2016 Description An application to incorporate the Condition 2.1.A.10 into the TV permit was received and assigned application no. 13B. This is the “second step” for the modifications of condition 2.1.A.10 incorporated into Permit No. T49. See Section III for full description of application. An application to add a portable hydrated lime dry sorbent injection system for SO3 control on Units 1 thru 4. and to add language to allow the use of PM CEMS for the Utility Mercury and Air Toxics Standards (MATS) Rule compliance was received and assigned application no. 14B. An application to renew the TV air permit was received and assigned application no. 14E. Application no. 14B was amended to remove the request to add a portable hydrated lime dry sorbent injection system for SO3 control on Units 1 thru 4. Application no. 14B was amended and assigned new application no. 15A. This application is being processed by Ed Martin in a separate permitting action. An application to modify the Title IV Acid Rain permit was received and assigned application no. 15C. An application to add Halide salt injection for the control of Hg for compliance with 40 CFR Part 63 Subpart UUUUU, “National Emission Standards for Hazardous Air Pollutants: Coal- and Oil-Fired Electric Utility Steam Generating Units” (MACT 5U) was received and assigned application no. 15D. This application is being processed by Ed Martin in a separate permitting action. An email was received requesting the removal of the CAIR requirements from the permit. An application to renew the Title IV Acid Rain permit was received and assigned application no. 16A. An addendum to application no. 15A was received. Ultimately, all requested items are addressed in the current permitting action. An application to incorporate the ES-U4ACIsilo and associated control device into the TV permit was received and assigned application no. 16B. This is the “second step” for the modifications incorporated into Permit No. T51. See Section III for full description of application. Applications assigned to Joe Voelker A request via email was sent to Bill Horton requesting information supporting the toxic air pollutant (TAP) modeling demonstration approved by the DAQ on 01/26/2011. Email response from Bill Horton stating please use the air toxics air dispersion modeling analysis and files we previously submitted for your evaluation of chromium VI (chromic acid) against the NC 24-hour AAL. Email received from Bill Horton requesting to minimize permit condition renumbering. Page 3 of 32 Date 11/7/2016 11/14/2016 11/21/2016 11/22/2016 12/13/2016 Description ADD INFO email sent to Bill Horton requesting the Permittee to review and justify any permit shield it wishes to keep in the revised permit. ADD INFO email sent to Bill Horton requesting the Permittee to review and update the CAM applicability analysis submitted with the renewal application (14E). CAM information requested on 11/14/2016 was received via email. An ADD INFO email was sent to Bill Horton stating that the removal of PSD avoidance condition 2.1.A.10 could not be removed based on the information available. A request was made for the Permittee to submit calculations/supporting information to justify the removal of the condition Information requested on 11/22/2016 was received via email. The calculations upon review show that the original installation of the selective catalytic reduction (SCR) would not have triggered PSD without the existence of the flue gas and flyash conditioning systems, which have been removed from the permit 12/19/2016 Information requested on 11/7/2016 received via email. 01/17/2017 Draft of permit was sent to Bill Horton 02/08/2017 Comments on draft permit were received via email from Bill Horton. 02/10/2017 Permit No. T53 issued in response to application nos. 15A and 15D, which were processed by Ed Martin. The draft permit sent on 01/17 and the comments received on that draft on 02/08 will combined into the permit issued on this date. The revised draft will be resent to the Permittee. 02/27/2017 A revised draft permit was sent to Bill Horton 03/15/2017 Bill Horton responded via email stating the revised draft is acceptable. MM/DD/YYYY Public Notice published on NCDENR DAQ website; concurrent public/EPA comment period begins MM/DD/YYYY Public comment period ends. No comments received. MM/DD/YYYY EPA comment period ends. No comments received. Permit History Since Last Renewal The following are all the permitting actions completed since the last permit renewal (permit no. T46, issued 09/07/2010). The descriptions contain excerpted language from the original permit reviews. Comments added by this review engineer are indicated in italics. Current outstanding applications are noted in Section II. Permit Issue Date Permit No. Application No. Application Type 09/07/2010 T46 Description: Permit Renewal .08A TV-Renewal Permit Issue Date Application No. Application Type Permit No. 09/14/2010 T47 .10A TV-minor Description: Duke Energy Carolinas, Inc. (“Duke Energy”) has requested to obtain a permit approval to conduct evaluations of mercury emissions control for Unit 4 boiler (ID No. ES-4) when spray-applying and injecting calcium dibromide and powdered activated carbon, respectively. This resulted in the addition of PSD and NSR avoidance conditions into the permit (conditions 2.1.A.14 and 15) and the addition of control devices for Unit 4 boiler: systems for spray-applying calcium dibromide (ID No. CD-U4CaBr2(Temp)) and powdered activated carbon (ID No. CD-U4ActC(Temp)). Also, a new generator (ID No. ES-37(EmGenLF)) was added, which required the submittal of a toxics demonstration by 09/29/2010. Page 4 of 32 Permit Issue Date Permit No. Application No. Application Type 08/26/2011 T48 0.11A TV-Sign–501(c)(2) Description: Duke Energy Carolinas is requesting a modification to the Marshall Steam Station’s current air permit to conduct a short-term trial test study to evaluate the effectiveness of liquid calcium di-bromide (sorbent) on the control of mercury emissions on Units 1 and 2. The study will be conducted over a two-week period where the calcium di-bromide (CaBr2) solution will be spray-applied to the coal going into the boilers at a rate ranging from 0.25 – 2.5 lbs/ton of coal. Approximately 30,000 lbs of liquid CaBr2 (53% solution by weight) will be spray-applied onto approximately 37,500 tons of coal. Mercury emissions before and after the test will be monitored using a speciated mercury CEM. This study is similar to a study on Marshall Unit 4 in the fall of 2010, where CaBr2 and powdered activated carbon were both used to determine the effects on mercury emissions; except powdered activated carbon is not being used for the Units 1 and 2 study. Even though, as shown below, emissions are expected to be well below PSD significance, Duke has requested (permanent) PSD and NSR avoidance conditions rather than a condition under 02D .0530(u) only requiring five years of reporting to determine if the change results in a significant PSD net emissions increase. At this time the change is for a short-term study and Duke states that if they pursue this sorbent injection long term, they would reapply and justify a change in the permit language based on data gathered during the trial test. If they do not pursue sorbent injection long-term, they could apply to have the PSD avoidance condition removed. This is a significant Title V permit modification pursuant to rule 15A NCAC 02Q .0501(c)(2). Duke must submit a Title V application for the changes made to permit Sections 2.1.A.16 and 2.1.A.17 on or before 12 months after commencing operation. The permit shield described in General Condition R does not apply to these changes. For Units 1 and 2, this resulted in PSD avoidance condition for PM/PM and NSR avoidance condition for PM 2.5 (conditions 2.1.A.16 and 17). This conditions have been subsequently removed from permit no. T51. As a result no “second step” application has been submitted. Permit Issue Date Permit No. Application No. Application Type 01/15/2013 T49 0.12B TV-Sign–501(c)(2) Description: Duke Energy Carolinas is requesting a modification to the Marshall Steam Station’s air permit to revise the PSD avoidance condition for sulfuric acid emissions in Section 2.1.A.10. This condition limits sulfuric acid emissions from Unit 3 to the PSD significance level of 7 tons per consecutive 12–month period. The condition was added to the permit in T41, issued February 1, 2007, when a SCR NOx control system was permitted for the Unit 3 boiler, as a result of the increase in sulfuric acid emissions resulting from the SCR. The avoidance condition required the coal sulfur dioxide content not to exceed 2.8 lb/mmBtu based on a 12-month rolling average. Duke is now requesting the condition be revised to increase the coal sulfur dioxide content not to exceed 4.0 lb/mmBtu to allow Duke the flexibility to burn higher sulfur coals. However, DAQ has determined that a better approach is to require the ammonia injection ash conditioning system to operate at all times when the sulfur trioxide flue gas conditioning system is in operation rather than the coal sulfur dioxide (SO2) limit. Duke is also requesting a change to the Unit 3 ammonia emission limit in Section 2.1.A.8.a. Duke was asked to address and provided GHG emission information as required by the GHG “Tailoring” rule and 40 CFR 70.5(c) for sources with Title V permits when they apply for, renew, or revise their permits now that GHGs are a regulated pollutant (see emissions information in email to Ed Martin from Bill Horton dated December 11, 2012). This is a significant Title V permit modification pursuant to rule 15A NCAC 02Q .0501(c)(2). Duke must submit a Title V application for the changes made to permit Section 2.1.A.10 on or before 12 months after commencing operation. The permit shield described in General Condition R does not apply to this change. The “second step” application has been submitted and is being processed as application no. 13B. Permit Issue Date Permit No. Application No. Application Type 04/19/2013 T50 .13A TV-Minor Page 5 of 32 Description: Duke Energy is requesting a permit modification to allow permanent use of various alkaline-based fuel additives (e.g. Coal Treat 300, 500 and 600) at a maximum rate of 7 pounds per ton of coal on an as-needed basis to reduce the formation of sulfur trioxide in the boiler which in turn reduces condensable particulate emissions in the form of sulfuric acid mist and also to reduce boiler slagging. Duke is testing these additives when burning various blends of Central and Northern Appalachian and Illinois Basis coals in preparation to meet the Utility MATS rule. They originally requested written approval to conduct temporary coal testing using the additives in a letter dated October 5, 2011, and were given approval to use the additives at Allen, Belews Creek, Cliffside and Marshall through the end of 2012 in DAQ’s letter dated November 8, 2011; and approval extending the test period through the end of 2013 was given in DAQ’s letter dated August 22, 2013. Duke submitted this application (1800073.13A) in April 2013for long-term use of the additives; however, processing the application was delayed due to workload and the permit could not be issued before the end of the extended test period (December 31, 2013) as Duke expected. Therefore, Duke requested another extension of the test period to allow further testing until the application could be processed to revise the permit permanently, and DAQ approved extending the testing through the end of 2014 in a letter dated December 18, 2013. This approval also included the use of trona, which had been approved through December 31, 2013 in an email dated August 26, 2013 (Ed Martin to Bill Horton, cc J. Evans and D. van der Vaart). The additives are drip- or spray-applied to the coal on the conveyor belts. No equipment or control devices require permitting. This is a minor permit modification pursuant to rule 15A NCAC 02Q .0515. The permit shield described in General Condition R does not apply to these changes. Public notice of the draft permit is not required. No new regulations apply for this change. This modification resulted in adding the footnote *** which addressed the use of alkaline-based fuel additive for Units 1-4 (with footnote ***). Permit Issue Date Permit No. Application No. Application Type 11/06/2014 T51 .14C TV-Sign–501(c)(2) Description: Duke Energy is requesting a permit modification to operate a brominated powered activated carbon injection (ACI) system on Unit 4 on a permanent basis for the purpose of reducing mercury emissions in preparation for compliance with the MATS rule. Duke was permitted in Permit T47 on September 14, 2010, to conduct a short-term evaluation of reducing mercury emissions on Unit 4 using both spray-applying calcium dibromide and injection of activated carbon on a temporary basis, for a total calcium dibromide use of 62,000 lbs. and total activated carbon use of 150, 000 lbs. This was placed in the permit at conditions 2.1.A.14 and 15 which are now being revised as discussed below. No new equipment was permitted at that time for the evaluation. The evaluation has been completed and provisions for calcium dibromide are no longer needed and this is being removed from the permit. This permit modification will add a 14’ diameter x 60’ high dry storage injection (DSI) ACI storage silo (ID No. ES-U4ACISilo) with a bin vent filter (ID No. CD-U4ACISiloBf). Duke was given approval to construct this equipment (Notice of Intent to Construct) on March 17, 2014, prior to receipt of the air permit as allowed by N.C.G.S. 143-215.108A(b). After the draft permit was sent to Duke for review on October 15, 2014, they requested the following additional changes be made: To remove burning of “off-specification oil” in Units 2 and 3 (in equipment description and state-only condition 2.1.A.8) and remove burning of waste tetra-ammonium or di-ammonium ethylene di-amine tetra-acetic acid (EDTA) boiler cleaning solution in Units 1, 2, 3 and 4 (in state-only conditions 2.1.A.8.d and 2.1.A.9) as Duke has discontinued burning these substances. Duke requested the 02D .1100 toxic limits for ammonia in Section 2.1.A.8 that were established through modeling for combustion of off-specification oil and waste EDTA boiler cleaning solution be retained (see Section V.C below) (ref. emails from Bill Horton to Ed Martin dated October 16, 21, 23 and 27, 2014). To remove spray applying calcium dibromide on the coal for Units 1 and 2 that was placed in the permit for a short-term trial for a mercury reduction evaluation that has now ended (in PSD avoidance condition 2.1.A.16 for PM/PM10 and NA NSR condition 2.1.A.17) (ref. emails from Bill Horton to Ed Martin dated October 16, 2014 and October 21, 2014). To delete insignificant activities I-25, I-28, I-34.1 and I-38 (ref. two emails from Bill Horton to Ed Martin dated October 21, 2014). Page 6 of 32 To request the state-only 02D .2500 mercury condition 2.1.A.13 be revised consistent with previous changes to the same condition for Cliffside Units 1-5 in Permit No. 04044T34, condition 2.1.A.8 (see Section V.B below) (ref. emails from Bill Horton to Ed Martin dated October 17, 2014 and October 21, 2014). This is a significant permit modification pursuant to rule 15A NCAC 02Q .0501(c)(2). The permit shield described in General Condition R does not apply to these changes. Public notice of the draft permit is not required at this time. The Permittee must file a Title V Air Quality Permit Application pursuant to 15A NCAC 02Q .0504 for these changes on or before 12 months after commencing operation in accordance with General Condition NN.1. Note that the avoidance conditions 2.1A.16 and 17, which were added in permit no T48 and triggered a significant permit application submittal requirement, were removed during this permitting action. Hence, the permit application submittal requirement included in permit no. T48 is no longer necessary. Also note that the Unit 4 control device ID No. CD-U4ActC (Temp) added in permit no. T47, was revised to just CD-U4ActC.) The “second step” application triggered by this modification has been submitted and is being processed as application no. 16B. Permit Issue Date Permit No. Application No. Application Type 12/15/2014 T52 .11B TV-Significant Description: This application is to renew the Title IV Acid Rain portion of the Title V permit. The Acid Rain Permit Application was received June 14, 2011. The Phase II NOx Compliance Plan was received June 27, 2011, and the Phase II NOx Averaging Plan was received December 23, 2011; both of which are part of the Acid Rain application. The effective dates for the Acid Rain requirements in the previous permit covered the five calendar-year period 2007-2011 and were different than the effective dates of the Title V permit itself. The Acid Rain requirements are now being renewed for a period matching the effective dates of the Title V permit and will expire on August, 2015 along with expiration of the Title V permit. This is in order to align the effective dates of the Acid Rain requirements with the effective dates of the Title V permit so that the Acid Rain requirements can, in the future, be renewed along with the Title V permit. Therefore, separate effective dates in the Acid Rain section are being removed. Duke will need to submit the next Acid Rain renewal application with the Title V permit renewal application and therefore this current Acid Rain renewal will cover a period of less than five years. The Acid Rain Permit Application, Phase II NOx Compliance Plan and Phase II NOx Averaging Plan will become part of the Title V permit (as attachments). These changes are significant permit modifications being made in accordance with 15A NCAC 02Q .0501(d)(1). Public notice of the draft permit is required at this time. Note that the Acid Rain permit is currently being revised and renewed as requested in applications 15C and 16A. Consolidated TV Permit Modification Applications A number of permit applications were consolidated into this renewal application (14E). Below is a description for each one. These applications are significant modifications that were incorporated into the air permit via the “two step procedure” but not subjected to public notice procedures. In general, the modifications addressed below will require no new regulatory applicability over that contained in the original permit review at the time they were incorporated into the air permit other than revising some regulatory authority references. See the Table of Changes for a complete listing of these changes, including administrative and minor corrections incorporated into the revised air permit. More substantive regulatory discussion will be included Section VIII of this review as necessary. Subject the modifications addressed in permit no. T49 to the TV permitting process. (application no. 13B) In application .06D, which resulted in the issuance of Permit no. T41 on 02/10/2007, Duke, along with other modifications, modified the control systems on the Unit 3 boiler by removing the selective non-catalytic reduction (SNCR) NOx reduction Page 7 of 32 system, installing a selective catalytic reduction (SCR) NOx reduction system and adding an anhydrous ammonia flue gas conditioning system. This resulted in the addition of a PSD avoidance condition addressing H2SO4 and lowering the allowable ammonia emission limit under the state enforceable only 02D .1100 permit condition from 8.875 to 0.534 lb/hr. In application no. 12B, which resulted in the issuance of Permit no. T49 on 01/15/2013 (see Section III), Duke requested modifying the 02D .1100 condition to replace the ammonia emission limit of 0.534 lb/hr with 8.869 lb/hr, which was a rate at which they had modeled to support compliance with the ammonia acceptable ambient level (AAL). Duke also requested to revise the monitoring associated with the H2SO4 PSD avoidance condition. As this revision was considered a significant modification and the application was processed in the “two step” fashion pursuant to 15A NCAC 02Q .0504, a follow-up application was required to process the modification via the TV permitting procedures. The Permittee submitted this follow-up application and it was received 10/10/2013 and assigned application no. 13B. Certain modifications addressed as part of permit application no. 15A On February 29, 2016, an email was received from Duke requesting some changes to the permit be handled as necessary via the active application no. 15A. Application no. 15A, which primarily deals with the incorporation of MATS requirements is being processed in a separate permitting action. Two the five requests are straightforward and to keep the focus of application no. 15A narrow, are being processed under this permitting action. These requests are as follows: 2) Removal of the Unit 3 503 and NH3 flue gas treatment systems (CD-12 and CD12B(NH3FGC) on Marshall Unit 3 and removal of avoidance condition 12.1 A. 10. The 503 FGT system was installed for intermittent operation as needed for certain coals. The system is no longer needed and has been rendered mechanically non-functional and tagged out. Likewise, the NH3 FGT system, also installed for intermittent use as needed, is not needed and has been rendered mechanically non-functional and tagged out. 3) Removal of anhydrous ammonia storage tanks (189 and I 89.1) from the insignificant activities list. These two tanks have been emptied and removed from the site. It was confirmed that although the ID Nos. referenced above were for Unit 4 (i.e., CD-12 and CD12B(NH3FGC), the intent was to remove the systems associated with Unit 3 (i.e., CD-8 and CD-8b(FGC)). Since these systems, which were also part of the reason for including the H2SO4 PSD avoidance condition at section 2.1 A.10, are being removed, there is no need to subject the modification addressed in Permit no. T41 to public notice and EPA review procedures. Instead of processing this request as part of application no. 15A, it will be addressed in this permit application. The Permittee supplied calculations on 12/16/2016 showing that without these conditioning systems the PSD avoidance condition is unnecessary. The condition will be removed from the revised permit as will the following control systems: One flue gas conditioning system consisting of an integral sulfur trioxide ash conditioner (ID No. CD-8) Anhydrous ammonia injection ash conditioning system (20 ppm maximum injection rate) (ID No. CD-8b(FGC) Implications of these changes with respect to the NC air toxics rules (02D .1100 and 02Q .0700) will be discussed elsewhere in this review document. Subject the modifications addressed in permit no. T51 to the TV permitting process. (application no. 16B) In application no. 14C, which resulted in the issuance of permit no. T51 on 11/06/2014, Duke, along with other modifications, requested to operate a brominated powered activated carbon injection (ACI) system on Unit 4, to revise the 15A NCAC 02D .2500: MERCURY RULES FOR ELECTRIC GENERATORS permit condition, and to remove the system for spray-applying calcium bromide on coal. As this revision was considered a significant modification and the application was processed in the “two step” fashion pursuant to 15A NCAC 02Q .0504, a follow-up application was required to process the modification via the TV permitting procedures. The Permittee submitted this follow-up application and it was received 05/31/2016 and assigned application no. 16B. The changes incorporated into permit no. T51 will, via the current permitting action, be subjected to the TV permitting procedures, which include a 30 -day public comment period and a 45- day EPA comment period. Since the modifications have been made consistent with the original application (14C), the original review document will simply be included as an attachment (Attachment A) to this review. No changes to the current permit are necessary Page 8 of 32 Acid Rain Permit Renewal and Modifications (application nos. 14E, 15C and 16A) Phase II Acid Rain Permit Renewal (2014) The existing Acid Rain permit includes an Acid Rain application dated June 10, 2011, a Phase II NOx Compliance Plan dated June 24, 2011 and a Phase II NOx Averaging Plan dated December 19, 2011. On July 30, 2014 the DAQ received a letter (processed as application no. 14E) stating the following: Please accept our application for renewal of the Marshall Steam Station Title V air permit. The current Title V permit expires on August 31, 2015. As information, there are pending applications to modify [permit no.] T50 at the time of this renewal application. We request that the Marshall renewal permit incorporate these previously requested updates: • Updated insignificant source list. • Federal renewal applications for Acid Rain (June 10/2011), Phase II NOx (June 24, 2011) and system-wide NOx Averaging Plan (December 19, 2011). We also request that Title V renewal, acid rain, and Phase II NOx renewal schedules have the same expiration dates. Thus, the intent of the Permittee was to not only the renew the TV permit but satisfy the Acid Rain permit renewal requirements as well. Phase II Acid Rain Permit Revised NOx Emission Limitations On June 26, 2015 the DAQ received a letter (processed as application no. 15C) stating the following: The Duke Energy Progress, Inc. and Duke Energy Carolinas, LLC facilities throughout North Carolina had been operating under a multi-state NOx Averaging Plan for compliance with the Phase II NOx emissions limitations under the Acid Rain Program. The averaging plan for Duke Energy Progress, Inc. expired in 2014. With the submission of the enclosed documents, we are respectfully requesting that the compliance approach be modified to account for an approach where all North Carolina facilities implement a state-wide emissions averaging plan. Emissions averaging plans for a single jurisdiction are required to be submitted prior to July 1, 2015. The letter included revised Acid Rain NOx Compliance Plan and Acid Rain NOx Averaging Plan forms. The existing acid rain permit includes Acid Rain NOx Compliance and Averaging Plans that cover many units in multiple states, including North Carolina, South Carolina, Indiana, and Kentucky. The revised averaging plan will consist of the following units with the following emission limitations and heat input limitations. The Btu-weighted annual emission rate will be calculated as follows: Page 9 of 32 The values chosen by Duke for Marshall in columns a, b and c were used to verify the Btu-weighted emission rates shown in the equation above (step 2 of the Acid Rain NOx Averaging Plan). This program is enforced by the USEPA and hence the details of the determination of the emission limits and heat input limitations included in the averaging plan are beyond the scope of this review. Note that pursuant to 40 CFR 76.11, (4) Each unit included in an averaging plan shall have a minimum allowable annual heat input value (mmBtu), if it has an alternative contemporaneous annual emission limitation more stringent than that unit's applicable emission limitation under §76.5, 76.6, or 76.7, and a maximum allowable annual heat input value, if it has an alternative contemporaneous annual emission limitation less stringent than that unit's applicable emission limitation under §76.5, 76.6, or 76.7. At Marshall, only Unit 3 has as an alternative contemporaneous annual emission limitation more stringent than its applicable emission limitation under §76.5, 76.6, or 76.7. The air permit will be revised as necessary to include the revised Acid Rain NOx Compliance and Averaging Plans effective as of calendar year 2015 (as stated in the revised plan). See Table of Changes for listing of all changes to the Acid Rain Permit (Permit section 2.4). Phase II Acid Rain Permit Renewal (2016) On February 1, 2016 the DAQ received a letter (processed as application no. 16A) stating the following: Please accept our applications for the renewal of the GG Allen and Marshall Station Acid Rain Permits, which were last updated June 10, 201 l. The applications have been signed and dated by the Acid Rain Alternate Designated Representative on file. Also enclosed are revised applications for GG Allen and Marshall Station Acid Rain NOx Compliance Plans and NOx Averaging Plans that were submitted to EPA-CAMD on June 23, 2015. These were also signed by the Alternate Designated Representative. We respectfully request that these updated applications be incorporated at the next opportunity into the Title V Air Permits and that the acid rain permits remain aligned with Title V permit dates. Note that: reference is made to the revised Acid Rain NOx Compliance Plans and NOx Averaging Plans submitted to the DAQ on June 26, 2015 (i.e., application no. 15C discussed above) a request the renew the Acid Rain permit was made although the Permittee had requested to renew it in the application no. 14E. As mentioned previously the facility has (and had) a number of permit applications active simultaneously. It appears with application no. 16A, the Permittee is ensuring the TV permit when revised will contain the latest relevant information and applications. The net effect of this is that the revised TV permit will include the revised Acid Rain NOx Compliance Plans and NOx Averaging Plans as well as the latest submitted TV renewal application as attachments. Page 10 of 32 Minor Modifications Since Last Renewal Minor modifications that have occurred since last permit issuance are discussed below, since the modifications that have occurred pursuant to these procedures will now be subjected to TV public notice and EPA review. In general, the modifications addressed below will require no new regulatory applicability over that contained in the original permit review at the time they were incorporated into the air permit other than revising some regulatory authority references. See the Table of Changes for a complete listing of these changes, including administrative and minor corrections incorporated into the revised air permit. More substantive regulatory discussion will be included Section V of this review as necessary. Subject minor modification application no. 10A to TV public notice /EPA review procedures Permit application no. 10A which resulted in the issuance of Permit no. T47, issued 09/14/2010, was processed as a minor modification pursuant to 15A NCAC 02Q.0515. See description of modification in Section III above. As minor modifications, changes to the permit are not covered by the permit shield pursuant to 15A NCAC 02Q .0512. Concurrent with the current permitting action, the modifications addressed in permit no. T47 will now be subjected to public and EPA review. Upon issuance, the modifications addressed in T47 will be covered under the permit shield. The review document for permit no. T47 will be included as an attachment (Attachment B) to this review. Note that some of the modifications undertaken in permit no. T47 were removed or modified in permit no. T51. See discussion in Section III above for the T51 modification, which was processed as a “two-step” significant modification pursuant to 15A NCAC 02Q .0504. Subject minor modification application no. 13A to TV public notice /EPA review procedures Permit application no. 13A which resulted in the issuance of Permit no. T50, issued 04/19/2013, was processed as a minor modification pursuant to 15A NCAC 02Q.0515. See description of modification in Section III above. As minor modifications, changes to the permit are not covered by the permit shield pursuant to 15A NCAC 02Q .0512. Concurrent with the current permitting action, the modifications addressed in permit no. T47 will now be subjected to public and EPA review. Upon issuance, the modifications addressed in T50 will be covered under the permit shield. The review document for permit no. T50 will be included as an attachment (Attachment C) to this review. Applicability Determinations The Permittee has requested the following applicability determinations. They are discussed individually below. Applicability Determination - Coal Pile Dust Suppressant On 02/29/2016, the DAQ received a letter which requested 5 items. Item 5 reads follows: 5 Request an off-permit applicability determination for addition of an eco-friendly additive to the coal pile at vendor recommended doses for voluntary mitigation of fugitive dust The letter included the following information: Page 11 of 32 Based on the submitted information it appears the only pollutant emitted or increasing as a result of this product would be CO2. Thus, this activity meets the definition of insignificant activities “because of size or production rate" pursuant to 15A NCAC 02Q .0503(8). For conservatism, assume the product had the density of water (7.45 lb/gallon) and was all carbon (12 lb/lbmol), the amount of CO2 (44 lb/lbmol) that could be generated would be Since this CO2 is generated by the combustion in the utility boilers, this proposed activity is a modification to an existing source. However, since the only increase in pollutants is associated with CO2 (CO2e), PSD would not apply regardless of the level of emissions consistent with 15A NCAC 02D. 0530(a). This dust suppressant will be combusted in the utility boilers, which are subject to MACT 5U and hence exempt from the NC air toxics rules (02D .1100 and 02Q .0700) pursuant to 15A NCAC 02Q .0702(a)(27)(B). This activity will simply be added to the insignificant activities list pursuant to 15A NCAC 02Q .0503(8). Page 12 of 32 Applicability Determination - Request to burn coal contaminated by inadvertent spills On January 11, 2016, the Mooresville Regional Office (MRO) received an email stating: Given the size of these boilers, the pollutants (including CO2) resulting from the combustion of 500 gallons of hydraulic/lubricating oil or antifreeze spilled onto coal over the course of the year would be minuscule. This oil will be combusted in the utility boilers, which are subject to MACT 5U and hence exempt from the NC air toxics rules (02D .1100 and 02Q .0700) pursuant to 15A NCAC 02Q .0702(a)(27(B). At the request of the Permittee and approved by the Permitting Section Chief, the following language will be added as a footnote to Section 1 of the permit for all four boilers: “Incidental spills of oil, antifreeze, etc. that might get on the coal from mobile equipment is allowed to be burned in these boilers.” Page 13 of 32 Regulatory Review With the exceptions presented below, all existing permit conditions upon review appear to be consistent with their underlying applicable regulations. See Section XIII. Changes Implemented in the Revised permit for a complete listing of all changes, including administrative and minor corrections. 2.1.A – Four coal/No. 2 fuel oil-fired electric utility boilers (ID Nos. ES-1 through ES-4) State Enforceable Only requirement 15A NCAC 02D .2500 Mercury Rules for Electric Generators This regulation expired on February 1, 2016 and hence reference to it will be removed from the revised permit. Mercury Emissions from these utility boilers are now regulated under 15A NCAC 02D .1111 Maximum Achievable Control Technology (MACT) as promulgated in the most current version of 40 CFR Part 63 Subpart UUUUU, “National Emission Standards for Hazardous Air Pollutants: Coal- and Oil-Fired Electric Utility Steam Generating Units” (MACT 5U). A number of the previous permitting actions including those consolidated into the renewal application have dealt with determining appropriate control strategies to comply with MACT 5U. Permit applications (application nos. 15A and 15D) have been submitted and were processed separately from this permitting action to include practically enforceable permit terms and conditions. Permit No. T54 was issued on 02/10/2017 and included the applicable requirements MACT 5U. Cross-State Air Pollution Rule (CSAPR) On July 6, 2011, the US Environmental Protection Agency (EPA) finalized the Cross-State Air Pollution Rule (CSAPR), requires states to reduce power plant emissions that contribute to ozone and/or fine particle pollution in other states. In a separate, but related, regulatory action, EPA finalized a supplemental rulemaking on December 15, 2011 to require five states Iowa, Michigan, Missouri, Oklahoma, and Wisconsin - to make summertime nitrogen oxides (NOX) reductions under the CSAPR ozone season control program. CSAPR requires a total of 28 states to reduce annual SO2 emissions, annual NOX emissions and/or ozone season NOX emissions to assist in attaining the 1997 ozone and fine particle and 2006 fine particle National Ambient Air Quality Standards (NAAQS). On February 7, 2012 and June 5, 2012, EPA issued two sets of minor adjustments to the CSAPR. The timing of CSAPR's implementation has been affected by a number of court actions. On December 30, 2011, CSAPR was stayed prior to implementation. On April 29, 2014, the U.S. Supreme Court issued an opinion reversing an August 21, 2012 D.C. Circuit decision that had vacated CSAPR. Following the remand of the case to the D.C. Circuit, EPA requested that the court lift the CSAPR stay and toll the CSAPR compliance deadlines by three years. On October 23, 2014, the D.C. Circuit granted EPA's request. Accordingly, CSAPR Phase 1 implementation occurred in 2015, with Phase 2 beginning in 2017. Under this rule, each of the units at this facility is considered a "large electric generating unit", per 40 CFR 52.34. This rule and all requirements thereof are considered Federally-enforceable only. Compliance will be determined by the US EPA, not the NC DAQ. A reference to this rule will be added to the permit as follows: Federally-Enforceable Only Cross State Air Pollution Rules (CSAPR) Permit Requirements For the four boilers (ID Nos. ES-1 thru ES-4), the Permittee shall comply with all applicable requirements of 40 CFR Part 97, Subpart AAAAA "TR NOx Annual Trading Program", Subpart BBBBB "TR NOx Ozone Season Trading Program", and Subpart CCCCC "TR SO2 Group 1 Trading Program". Clean Air Interstate Rule (CAIR) The Clean Air Interstate Rule (CAIR) addressed regional interstate transport of soot (fine particulate matter) and smog (ozone). CAIR required 28 eastern states to make reductions in SO2 and NOX emissions that contribute to fine particle and ozone pollution in downwind states. CAIR was replaced by the CSAPR, as of January 1, 2015. On February 1, 2016, the rules under 15A NCAC 02D .2400 which had implemented CAIR expired. Therefore, references to those rules have been removed from the permit. 2.1.B. Limestone Receiving, Transfer, Storage, and Processing Equipment: Page 14 of 32 15A NCAC 02D .0524: NSPS 40 CFR PART 60 SUBPART OOO NSPS Subpart OOO - Standards of Performance for Nonmetallic Mineral Processing Plants was substantially revised, affected as of April 28, 2009. The current permit condition addressing this regulation needs to be revised to address the changes in opacity requirements for building openings (excluding vents) at 40 CFR 60.672(e). Prior to April 28, 2009, the rule required: (e) If any transfer point on a conveyor belt or any other affected facility is enclosed in a building, then each enclosed affected facility must comply with the emission limits in paragraphs (b) and (c) of this section, or the building enclosing the affected facility or facilities must comply with the following emission limits: (1) No owner or operator shall cause to be discharged into the atmosphere from any building enclosing any transfer point on a conveyor belt or any other affected facility any visible fugitive emissions except emissions from a vent as defined in §60.671}. (e)(1) has been revised and currently reads: (1) Fugitive emissions from the building openings (except for vents as defined in §60.671) must not exceed 7 percent opacity; and Thus, if the Permittee chooses to comply with this option, the opacity limits for non-vent openings has been relaxed from 0 to 7%. Since this is a relaxation, there is no need to require testing to comply with this less stringent limit. The current permit already contains adequate monitoring, recordkeeping, and reporting (M/R/R) to ensure compliance with limit. No other changes to the NSPS OOO have implications with respect to the current equipment or permit condition. The permit will be revised accordingly. All changes to the permit condition are addressed in the Table of Changes. 2.1.C - One 1,000 HP, No. 2 fuel oil fired emergency use water pump (ID No. ES-26 (EQWP)) 15A NCAC 02D .1111: MAXIMUM ACHIEVABLE CONTROL TECHNOLOGY (MACT – 40 CFR PART 63 SUBPART ZZZZ) This engine was added to permit no. T29 issued February 5, 2004 as the result of application no .03B. The MACT ZZZZ permit condition was added to permit no. T41 issued February 01, 2007. The review for permit no. T41 stated the engine was constructed prior to December 19, 2002 and as such would be an existing source pursuant to 40 CFR 63.6590(a)(1). The Permittee has confirmed via email on 8/23/2016 however, that the manufacture date was sometime in 2005. Thus the engine was not constructed at the time it was permitted. Thus it is a “new stationary RICE” consistent with §63.6590(a)(2)(i). The Permit condition will be revised to be consistent with current DAQ permit conditions for this subcategory of engine. The only requirement for this engine is a notification requirement that was effectively met with the original permit application no. 03B. 2.1.H. One No. 2 fuel oil-fired emergency/blackout protection diesel generator (ID No. ES-35 (EmGen)) and one No. 2 fuel oil-fired diesel emergency air compressor (ID No. ES-36 (AC)) 15A NCAC 02D .1111: MAXIMUM ACHIEVABLE CONTROL TECHNOLOGY (MACT – 40 CFR PART 63 SUBPART ZZZZ) The MACT ZZZZ permit condition was added to permit no. T33 issued 12/03/2004. The review at that time stated these engines were “new stationary RICE.” The permit condition will be revised to be consistent with current DAQ permit conditions for this subcategory of engine. The only requirement for these engines is a notification requirement that was effectively met with the original permit application no. 04D. 2.1.J. One 100 kW No. 2 Fuel Oil-Fired Emergency Generator Located at Landfill (ID No. ES-37 (EmGenLF)) This source was added to the permit no T47 issued 09/14/2010. Page 15 of 32 15A NCAC 02D .0524: NEW SOURCE PERFORMANCE STANDARDS (40 CFR PART 60 SUBPART IIII) This condition will be revised to be consistent with current DAQ standards, to remove outdated requirements (e.g. fuel sulfur requirements prior to October 2010) and to account for the revisions to the rule since the original permit was issued, primarily addressing how the engine may be operated in non-emergency situations. Facility-wide considerations 15A NCAC 02D .1100 TOXIC AIR POLLUTANTS 15A NCAC 02Q. 0700 TOXIC AIR POLLUTANT PROCEDURES Pursuant to 15A NCAC 02Q. 0707 PREVIOUSLY PERMITTED FACILITIES: Any facility with a permit that contains a restriction based on the evaluation of a source exempted under Rule .0702 of this Section may request a permit modification to adjust the restriction by removing from consideration the portion of emissions resulting from the exempt source unless the Director determines that the removal of the exempt source will result in an acceptable ambient level in 15A NCAC 02D .1104 being exceeded. The Director shall modify the permit to remove the applicability of the air toxic rules to the exempt source. No fee shall be charged solely for such permit modification. Also, pursuant to the current 15A NCAC 02Q .0702 rule: (a) A permit to emit toxic air pollutants shall not be required under this Section for: *** (27) an air emission source that is any of the following: (A) subject to an applicable requirement under 40 CFR Part 61, as amended; (B) an affected source under 40 CFR Part 63, as amended; or (C) subject to a case-by-case MACT permit requirement issued by the Division pursuant to Paragraph (j) of 42 U.S.C. Section 7412, as amended; Requirements of the above sections of the air quality rules are implemented in the following conditions of the current air permit presented below in italics. Note that these current conditions specifically affect sources subject to a MACT (MACT 5Ufor the boilers and MACT ZZZZ for internal combustion engines) and thus meet the requirements of 02Q .0702(a)(27)(B). Thus a review will be conducted to determine if certain requirements under 02D .1100 and 02Q .0711 can be removed from the revised air permit. STATE ONLY REQUIREMENT 2.1.A.11. 15A NCAC 2Q .0309: TERMINATION, MODIFICATION, AND REVOCATION OF PERMITS for AVOIDANCE OF 15A NCAC 2Q .0705 APPLICABILITY a. b. Pursuant to 15A NCAC 2Q .0309 and in accordance with the approved application for compliance with air toxics requirements, the following permit limit shall not be exceeded: Emission Sources Toxic Air Pollutants Emission Limits Unit 1 Boiler (ID No. ES-1) Unit 2 Boiler (ID No. ES-2) Unit 3 Boiler (ID No. ES-3) Unit 4 Boiler (ID No. ES-4) Arsenic 0.8278 tons per year total Testing [15A NCAC 2Q .0508(f)] If emissions testing is required, the testing shall be performed in accordance with General Condition JJ. If the results of this test are above the limit given in Section 2.1.A.10.a above, the Permittee shall be deemed in noncompliance with 15A NCAC 02D .0705. Monitoring/Recordkeeping/Reporting [15A NCAC 2Q .0508(f)] c. No monitoring, recordkeeping, or reporting requirements shall be necessary Page 16 of 32 STATE ONLY REQUIREMENT 2.2.B.1. 15A NCAC 2Q .0309: TERMINATION, MODIFICATION, AND REVOCATION OF PERMITS for AVOIDANCE OF 15A NCAC 2Q .0705 APPLICABILITY a. The following table provides a summary of limits and standards for the facility: b. c. Regulated Pollutant Limits/Standards Applicable Regulation Arsenic 0.8288 tons/year 15A NCAC 2Q.0309 (2Q .0705 avoidance) Testing [15A NCAC 2Q .0508(f)] If emissions’ testing is required, the testing shall be performed in accordance with General Condition JJ. If the results of this test are above the limit given in Section 2.2 B.1.a above, the Permittee shall be deemed in noncompliance with 15A NCAC 02D .0705. Monitoring/Recordkeeping/Reporting [15A NCAC 2Q .0508(f)] No monitoring, recordkeeping, or reporting requirements shall be necessary. Sections 2.1 A.11 and 2.2 B.1 were added to permit no. T45, issued 10/16/2009 as the result of permit application .09B. Prior to that permitting action in 2008, the facility had submitted a facility-wide demonstration at the request of the DAQ. This demonstration included most combustion sources (some very small ones were not included) and coal and ash handling operations. The DAQ approved this modeling in a memo dated March 3, 2009. An excerpt from the modeling report submitted is provided as follows to explain the purpose: This modeling effort was performed in response to a request from NC DAQ as part of an ongoing initiative of the NC Environmental Management Commission to evaluate the need for regulating combustion sources which burn unadulterated fossil fuels, which are currently exempt from the NC TAPS rules. Based on screening modeling using the HEM-3 exposure risk model, the additional AERMOD modeling for the Facility was required by NC DAQ to determine whether the Facility should be subject to a Director’s Call as provided in the NC TAPS rules (15 NCAC 2Q.0712). Duke Energy was provided the opportunity to perform this modeling on its own in lieu of NC DAQ performing the modeling. The following table shows the results of the approved analysis. Page 17 of 32 Table 1. March 3, 2009 Memo The modeling showed arsenic impacts of 82.5% of the AAL. With the exception of Arsenic and Chromium (VI), all impacts were well below the AAL. As a result of this modeling analysis, the Permittee submitted application no. 09B. The following is an excerpt from the permit review: In order to avoid a Director’s Call, Duke Energy Carolinas, LLC – Marshall Steam Station requested an emissions limit that is equal to approximately 96% of the AAL for arsenic and conducted AEROMOD emissions modeling (revised modeling for arsenic received on May 30, 2009) to demonstrate compliance with the AALs for the emissions sources. Arsenic emissions from each unit shall not exceed 0.8672 tons per year and the facility-wide arsenic emissions are limited to 1.741 tons per year. Actual facility emissions of arsenic are expected to be approximately 0.05212 tons per year from each unit, or approximately 0.1038 tons per year facility-wide. This emissions rate is approximately 1/10th the permitted rate and therefore monitoring of arsenic will not be required at this time. In summary, source specific and facility wide emission limitations of Arsenic were placed into the air permit no. T45. It is unclear why Chromium VI was not a concern at this time. The referenced May 30, 2009 modeling was not available at the time of this review. In any case, the AAL for Arsenic was subsequently revised from 2.3 E-04 ug/m3 to 2.1 E-03 ug/m3 in 2014, hence an increase over-9-fold. Thus, the 2008 modeling impacts which resulted in an impact of 82% of the ALL would result in an impact of approximately 9% of the revised AAL. A review of the 2013 and 2014 emissions inventory data show (the latest approved inventory data) that the facility has reported emissions of arsenic 25 to 47% greater than the emissions modeled in the 2008 analysis but still well below the limits in current condition 2.1.A.11 and by extension 2.1.A.12. Thus if the facility was to remodel using the reported emission inventory data, it is reasonable to assume that the % of AAL impacts would increase on the order of 25 to 47% which would be on the order of 11 to 13% of the current arsenic AAL. It is reasonable to assume then that the emission of Arsenic would have to increase many-fold before ambient concentrations of Arsenic would approach the revised AAL. The issue of the emission inventory estimates of actual emissions exceeding the modeled emission rates is beyond the scope of this review. It appears the Permittee, when submitting emission inventory data, was using conservative emission factors to be consistent with other environmental reporting requirements. Because the permit did not contain TAP emission limitations specific to each boiler, the Permittee was not concerned with demonstrating compliance with such limits. The Permittee maintains that the potential emission rates used in all of the modeling discussed here are the best estimate of potential emissions. The Permittee is considering revision in its conservative emissions inventory reporting practices to avoid such confusion in the future. Based on the above discussion, it seems reasonable that the removal of the permit restrictions for Arsenic found at current permit conditions 2.1 A.11 and 2.2 B.1 will not result in a AAL in 15A NCAC 02D .1104 being exceeded. These conditions will be removed from the revised permit. Page 18 of 32 STATE ONLY REQUIREMENT 2.2.B.2. 15A NCAC 02Q .0709 DEMONSTRATIONS a. No later than September 29, 2010, the Permittee shall submit a modeling protocol to the NCDAQ for the purpose of demonstrating compliance with 15A NCAC 02D .1100. b. No later than 120 days following the date the NCDAQ approves the modeling protocol, the Permittee shall submit a complete permit application that includes a demonstration as required by 15A NCAC 02D .1100. All sources at the facility, excluding sources exempt from evaluation in 15A NCAC 02Q .0702, emitting these toxic air pollutants shall be included in the evaluation. Notwithstanding 15A NCAC 02Q .0702(a)(18), on and after July 10, 2010, an evaluation of a modification to a combustion source shall also include emissions from all permitted combustion sources as defined in 15A NCAC 02Q .0703. [15A NCAC 02Q .0706] This requirement was placed into permit no. T47, issued on 09/14/2010 as a result of permit application no. 10A. The trigger was the installation of a new 100 kW diesel-fired generator (ID No. ES-37(EmGenLF), which at that time was not exempt pursuant to 02Q .0702 and hence triggered a toxics review. A modeling demonstration was submitted, reviewed and approved by the DAQ via a memo dated January 26, 2011. The results were as follows: Table 2. January 26, 2011 Memo Maximum Impacts Duke Energy – Marshall – Catawba Co., NC Pollutant Averaging Period % of AAL 1,3-Butadiene Annual <1 % Acetaldehyde 1-hour <1 % Acrolein 1-hour 1% Benzene Annual 12 % Benzo(a)Pyrene Annual <1 % 1-hour 12 % Toluene 24-hour <1 % Formaldehyde 1-hour 3% 1-hour <1 % Xylenes 24-hour <1 % Note that this table represents TAPs which were expected to increase with the installation of the generator. The sources included in the modeling analysis summarized in Table 2 above included all combustion sources on site as well as gasoline dispensing operations but not the coal and ash handling operations that were included in the 2008 analysis summarized in Table 1 above. The gasoline dispensing operations were not included in the 2008 (Table 1) analysis. Upon review, the emission estimates in both analyses for the engines were based on AP-42 emission factors, which does not include emissions for metals (e.g., Arsenic Hg, Ni, and Cr(VI)). Typically, DAQ provided spreadsheets are used to estimate emissions from internal combustion engines. These spreadsheets are based on AP-42 emission factors for internal combustion (IC) engines, but also use metal TAP emission factors from AP-42 Chapter 1.3, “External Combustion Sources: Fuel Oil Combustion.” Duke failed to submit a permit application demonstrating compliance with 15A NCAC 02D .1100 pursuant to Section 2.2 B.2.b. Had a permit application been submitted, the modeled emission rates would have been reviewed and limits incorporated into the permit at that time. However, the NC air toxic rules have changed since then and, as discussed above, if a source is subject to a MACT standard, the 02D .1100 emission limitations can be removed from the permit if it would not pose an unacceptable risk by doing so. In the situation here, if no unacceptable risk is posed, 02D. 1100 emission limitations will not be added to the revised air permit. To determine if a remodeling analysis is necessary, the results of Table 2 (2010 analysis) will be reviewed in conjunction with the 2008 modeling analysis as discussed previously (Table 1). In Table 1, with the exception of Cr(VI), arsenic, beryllium and sulfuric acid, the modeling impacts as a percent of the applicable AALs are well under 1%. The modeled rates assumed 8760 hours of operation per year for all sources except for the emergency engines, and each source operating at its maximum hourly rate. However, as stated previously, metal TAP emission estimates were not included in the emission estimates for the internal combustion engines. A table was created (see Attachment D) that includes all the emission rates included in the 2008 as well as the 2010 analyses. Note that the largest TAP contributors, Page 19 of 32 the utility boilers, had the same TAP emission rates in both models. Using the DAQ spreadsheets, potential emissions of metal TAPs from all of the IC engines currently on site were calculated. The facility wide totals were then calculated for each TAP (column A of the attached spreadsheet). For comparison, a percent difference was calculated (column B) between these values and the largest previously modeled totals values in either the 2008 or 2010 analysis (column C). Negative percent differences can be interpreted to mean that the total amount of a particular TAP that had been modeled in 2008 or 2010 was larger than the overall potential to emit of the same TAP under the current permit. The opposite would be true for positive percent differences. Not surprisingly, these positive differences are associated with the metallic TAP emissions not included in the previous TAP analyses. However, the largest positive percent difference is 0.7%. This was for Beryllium, which was modeled in 2008 with a maximum impact of 1.2% of the AAL. Given the relatively small contributions from these internal combustion engines, it is not expected that their inclusion in a revised model would result in any AAL impacts being significantly different. Thus, the 2010 and 2008 modeling results are sufficient enough to make the statement that it is unlikely that exempting these sources from the requirements of 02D .1100 pursuant to 15A NCAC 02Q .0702 will pose an unacceptable risk to human health. These permit conditions will be removed from the revised air permit. Permit Shield Section 2.3 of the permit addresses permit shields for non-applicable regulations as allowed pursuant to 15A NCAC 02Q .0512. The current permit had a number of permit shields for the utility boilers (ID Nos. ES-1 through ES-4). Upon review a number of them appeared to no longer apply given the changes in the 02D .0900 VOC rules over the years, changes in attainment status of the county, etc. Section 2.3 was sent to the Permittee to re-justify the listed shielded regulations. As a result, a number of changes were made. Given that this section strictly addresses shields included at the request of the Permittee and not applicable requirements, no discussion will be made to justify any shields removed. The following table are the shields requested by the Permittee to be included in the revised permit along with their justification. A. The following requirements are not applicable to boilers (ID Nos. ES-1 through ES-4): 1. 2. 3. 4. 5. 6. 7. 15A NCAC 02D .0537, “Control of Mercury Emissions,” is not applicable because it does not apply to fuel combustion. 15A NCAC 02D .0521(d), “Control of Visible Emissions,” visible emissions shall not exceed 20% opacity, is not applicable because these sources were manufactured as of July 1, 197l. 15A NCAC 02D .0607, “Large Wood and Wood-Fossil Fuel Combination Units”, does not apply as these sources do not combust wood and wood-fossil fuels. 15A NCAC 02D .1110, “National Emission Standards for Hazardous Air Pollutants” promulgated in 40 CFR Part 61, is not applicable because no NESHAP promulgated pursuant to 40 CFR Part 61 applies. 15A NCAC 02D .0900, “Volatile Organic Compounds” does not apply to these sources pursuant to 02D .0902(e), (f) or (g). 15A NCAC 02D .0903, Recordkeeping: Reporting: Monitoring does not apply to these sources because there are no rules applicable to these sources in 02D .0900. 15A NCAC 02D .0912, “General Provisions on Test Methods and Procedures,” is not applicable because there are no rules applicable to these sources in 02D .0900. B. The following requirements are not applicable to the storage tanks listed in the table below: Emission Source I.D. Emission Source Description I-8 500,000 gallon above ground main No. 2 fuel-oil storage tank and associated unloading stations, contract awarded on tank in 1973 500,000 gallon above ground main No. 2 fuel-oil storage tank and associated unloading stations, contract awarded on tank in 1973 30,000 gallon fuel oil storage tank at coal handling area I-9 500 gallon capacity lube oil storage tank at coal handling tractor shed I-9.1 750 gallon capacity lube oil storage tank at coal handling tractor shed I-9.2 1000 gallon capacity lube oil storage tank at coal handling tractor shed I-10 400 gallon storage tank for car dumper I-11 75 gallon storage tank for coal handling knuckle boom I-7 I-7.1 Page 20 of 32 Emission Source I.D. I-12 I-13 I-20 1. 2. 3. Emission Source Description 1000 gallon above ground gasoline storage tank and associated unloading station 550 gallon above ground gasoline storage tank and associated unloading station (Mosquito Control Facility) 10,000 gallon turbine oil storage tank used for maintenance on Unit 1 I-20.1 10,000 gallon turbine oil storage tank used for maintenance on Unit 2 I-21 I-84 I-85 I-93 I-127 I-129 12,000 gallon turbine oil storage tank used for maintenance on Units 3 & 4 1600 gallon above ground diesel fuel oil storage tank (Emergency Generator) 190 gallon above ground diesel fuel oil storage tank (Emer. Air Compressor) 220 gallon oil storage tank in Coal Handling Tractor Shed 100 gallon above ground diesel fuel oil storage tank (Emergency Quench Pump) 150 gallon above ground diesel fuel oil storage tank (Emergency Landfill Generator) 15A NCAC 02D .0900, “Volatile Organic Compounds”, does not apply to these sources as they meet none of the applicability requirements pursuant to 02D .0902 (b), (e), (f) or (g). 15A NCAC 02D .0903, Recordkeeping: Reporting: Monitoring does not apply to these sources because there are no rules applicable to these sources in 02D .0900. 15A NCAC 02D .0912, “General Provisions on Test Methods and Procedures,” is not applicable because there are no rules applicable to these sources in 02D .0900. NSPS, NESHAPS, PSD, Attainment Status, 112(r), and CAM NESHAPS and NSPS The subject facility is a major source of HAP emissions. The revised permit is up to date with all current applicable requirements except where discussed below. The utility boilers are subject to of 40 CFR Part 63 Subpart UUUUU, “National Emission Standards for Hazardous Air Pollutants: Coal- and Oil-Fired Electric Utility Steam Generating Units.” The current permit has a placeholder condition. Practically enforceable M/R/R conditions are being developed as a result of permit application no. 15D and will be incorporated into the TV permit at a later date. The boilers are not subject to any NSPS. All on site internal combustion engines are subject to 40 CFR 63, Subpart ZZZZ “National Emissions Standards for Hazardous Air Pollutants for Stationary Reciprocating Internal Combustion Engines. Engine (ID No. ES-37) is subject also subject to 40 CFR Part 60 Subpart IIII, Standards of Performance for Stationary Compression Ignition Internal Combustion Engines.” The limestone receiving, transfer, storage, and processing equipment is subject to 40 CFR Part 60 Subpart OOO - Standards of Performance for Nonmetallic Mineral Processing Plants. The four coal conveyors (ID Nos. ES-CCONV2, ES-CCONV6, ES-CCONV7 and ES-CCONV8) are subject to 40 CFR Part 60, Subpart Y - Standards of Performance for Coal Preparation and Processing Plants. All regulatory implications associated with this application are discussed in Section VIII. above. 112(r) The facility is below all 112(r) applicable thresholds. Attainment Status Currently, Catawba County is in attainment for all pollutants. CAM Page 21 of 32 The applicability of 15A NCAC 02D. 0614 Compliance Assurance Monitoring (CAM), which implements the federal rule at 40 CFR 64, was reviewed for all currently permitted sources. The Permittee supplied a CAM applicability discussion on the DAQ standard form E6 with the renewal application and revised via email on 11/21/2016 to account for One MS4 DSI ACI storage silo (ID No. ES-U4ACISilo) and associated ACI storage silo bin vent filter baghouse (ID No. CD-U4ACISiloBf). This equipment had been added to the permit since the renewal application was originally submitted. In general, all of the material handling sources are exempt from CAM by either; pre-controlled emissions being less that major thresholds, the “control devices” are considered inherent to the process and hence not subject to CAM, or no controls. All internal combustion engines are exempt from CAM as they are well below major source thresholds and have no control devices. The four utility boilers are subject to CAM for PM with respect to 15A NCAC 02D .0536: PARTICULATE EMISSIONS FROM ELECTRIC UTILITY BOILERS. The CAM plan was placed into the permit during the last permit renewal. No changes are necessary to this existing CAM plan. The utility boilers are not subject to CAM for any other pollutant since either no emission standard applies for the pollutant or no controls are used for compliance (i.e., CO, VOC) or it uses a continuous compliance method (i.e., NOx, SO2 CEMs,) or for HAPs, is subject to MACT 5U, which was promulgated after 1990, and hence exempt from CAM. PSD Catawba County is currently in attainment for all pollutants. The subject facility is a PSD major source. The permit contains one PSD avoidance condition at Section 2.1.A 14 for PM 10 and an NSR avoidance condition at Section 2.1 A.15 for PM 2.5. These conditions were added in permit no, T47 issued 09/24/2010 for the modification involving the addition of control devices for Unit 4 boiler: systems for spray-applying calcium dibromide (ID No. CD-U4CaBr2(Temp)) and powdered activated carbon (ID No. CD-U4ActC(Temp)). At that time Catawba County was in non-attainment for PM2.5. These conditions will remain in the revised air permit. A PSD avoidance condition for PM2.5 was added in permit no. T53 issued 02/10/2017 for the use of halide salt mercury fuel additives. It will also remain in the revised permit. Compliance History As excerpted from the compliance inspection report of June 03, 2015 by Tonisha Dawson from the MRO. Based on my observations during this inspection, this facility appeared to be in compliance with the applicable air quality regulations. The inspection report notes no violations in the previous five years. Changes Implemented in Revised Permit Existing Section Cover New Section Same ISA Same Description of Changes Revised header/footer, permit number dates etc. Removed paragraph addressing application submittal requirement pursuant to 15A NCAC 02Q .0504 for the air emission source(s) and associated air pollution control device(s) (ID Nos. ES-U4ACISilo and CD-U4ACISiloBf) and for the changes to Sections 2.1.A.14 and 15 for the activated carbon injection system Application was submitted and assigned application no. 16B I-8 – changed from 1000 to 30,000 gallon I-9, 9.1, 9.2 – changed from “fuel oil storage tanks, and associated unloading station” to “lube oil storage tanks, at coal handling tractor shed. Removed I-14 Removed I-54 Removed I-89, 89.1 Page 22 of 32 Existing Section New Section Description of Changes Removed I -92, I-94 Removed I-108 Removed I-132,133,134 and 135 Added activity I-136 – Coal pile dust suppressant I-7.1 - added the following language: (empty: permanently closed and tagged out in 2003 I-10 – revised descriptor to include lube oil Removed the following sources that are categorically exempt or do not emit a regulated pollutant: I-35, 35.1, 36, 37, 46, 60, 60.1, 90, 90.1, 90.2, 130, 131 Removed I-64 TOC Same Removed reference to: 2.5 Clean Air Interstate Rule (CAIR) Requirements ATTACHMENT Clean Air Interstate Rule Application dated June 25, 2007 Revised reference to the following attachments from Acid Rain Permit Application dated June 10, 2011 Phase II NOx Compliance Plan dated June 24, 2011 Phase II NOx Averaging Plan dated December 19, 2011 To Acid Rain Permit Application dated January 27, 2016 Phase II NOx Compliance Plan dated June 23, 2015 Phase II NOx Averaging Plan dated June 23, 2015 Section 1: Permitted equipment list Same Removed reference to CD-8 and CD-8b on Unit 3 Pursuant to request received on February 23, 2017, removed reference to CD2a from unit 1, CD-5a from unit 2 and CD-12B from Unit 4. Removed footnote (†) addressing application submittal requirement pursuant to 15A NCAC 02Q .0504 for the air emission source(s) and associated air pollution control device(s) (ID Nos. ES-U4ACISilo and CD-U4ACISiloBf). This application was received and assigned application no. 16B. Removed 15A NCAC 02Q .0515 minor modification footnote (**) for the injection of powdered activated carbon (ID No. CD-U4ActC), and installation of emergency generator (ID No. ES-37 (EmGenLF)) Removed 15A NCAC 02Q .0515 minor modification footnote (***) for the use of alkaline-based fuel additives in Units 1 through 4. All affected sources of MACT and NSPS standards had indicators placed (or corrected as necessary) next to their respective ID Nos. consistent with permitting policy Added the footnote to the four boilers – “** - Incidental spills of oil, antifreeze, etc. that might get on the coal from mobile equipment is allowed to be burned in these boilers”. The following footnote was removed: Alkaline-based fuel additive may be used on an as-needed basis not to exceed 7 pounds per ton of coal burned. Upon review of the original permit application for the additives (Permit no. T50), the Permittee would not be in violation of any applicable standard if it used more than 7 lb/ton of the additive. Consistent with permitted equipment descriptors that are not necessary for regulatory compliance, this usage rate will be memorialized in the equipment descriptor. The following footnote was removed: Fuel additives shall not contain any toxic air pollutants listed in 15A NCAC 02Q .0711. Page 23 of 32 Existing Section New Section Description of Changes The boilers are no longer subject to 15A NCAC 02 D.1100 pursuant to 15A NCAC 02Q .0702(a)(27)(B). see the permit review. In addition, the use of an additive that contained a TAP listed in 02Q .0711 would not necessarily imply a permit violation. Consistent with permitted equipment descriptors that are not necessary for regulatory compliance this type of material will be memorialized in the equipment descriptor. The following footnote was removed: Fuel additive products not equivalent to those specified in Application 1800073.13A are not allowed without permit modification. This condition is over-restrictive. All modifications are subject to permitting rules with some exceptions. Thus, the use of other products may meet such exception requirements. Global Same Updated regulation references from “2D” and “2Q” to “02D” and “02Q” to be consistent with regulation nomenclature. For all testing conditions, updated regulatory reference from 15A NCAC 02D .2601 to 02Q .0508(f). For all testing conditions, revised reference to “15A NCAC 02D .2601 and General Condition JJ” to just “General condition JJ”. Condition JJ addresses the requirements of 02D .2601. Revised all conditions as necessary to reference other paragraphs consistently according to current DAQ permitting policy Sections 2.1 B.2.c 2.1 B.3.g 2.1 E.2.c 2.1 F.2.d 2.1 G.2.c 2.1 I.2.c 2.1 K.2.c Section 2.1 A Same Removed the language “The Permittee shall establish “normal” for these sources in the first 30 days following the start-up of these sources”. The Permittee confirmed all of the affected source have completed start up and have established ‘normal” pursuant to the applicable requirement Same Applicable regulations table Same Removed notification of construction requirement for CD-8b. Notification was submitted via letter dated June 8, 2014. Removed notification of construction requirement for CD-U4ActC. Notification was submitted via letter dated May 12, 2016. Removed notification of construction requirement for alkaline-based fuel additive on Unit 3. Notification was submitted via letter dated April 9, 2014. Removed reference to CD-8 and CD-8b on Unit 3 at request of Permittee. “The system is no longer needed and has been rendered mechanically nonfunctional and tagged out.” Pursuant to request received on February 23, 2017, removed reference to CD2a from unit 1, CD-5a from unit 2 and CD-12B from Unit 4. In the applicable regulations table, removed reference to CAIR requirements and added reference to CSAPR requirements Removed reference to 15A NCAC 02D .1100 and 02Q .0309 state enforceable only air toxics conditions Removed reference to 15A NCAC 02D .2500 Removed reference to CAIR requirements for SO2 pursuant to 15A NCAC 02D .2400 (40 CFR 96) Added reference to CSAPR requirements for SO2 pursuant to 40 CFR 97. Removed reference to CAIR requirements for NOx pursuant to 15A NCAC 02D .2400 (40 CFR 96) Added reference to CSAPR requirements for NOx pursuant to 40 CFR 97. Page 24 of 32 Existing Section New Section Description of Changes Simplified the 02D .0521 Limit/standards description. The language is redundant with the language found in the permit condition. The intent of the table is for quick reference purposes only. 1 Same a. Same c Same 15A NCAC 02D .0519 condition Revised wording of condition to clarify the emission limits when burning single fuels and to align with existing rule language. No change in intent was made. Removed the following language: For monitoring purposes, the following emission limits will apply: i. When only coal is burned, the emission limit shall be 1.8 pounds per million Btu heat input. ii. When only oil is burned, the emission limit shall be 0.8 pounds per million Btu heat input. iii. When oil is burned other than for startup, the emission limit shall be 1.1 pounds per million Btu heat input corresponding to no more than 70 percent of total heat input being from oil. These values are actually emission limitations for the given fuel firing configuration which are not just for “monitoring purposes.” Thus, the language is also redundant given the revision to condition a. described above. No changes in intent were made. 7 Same b and c Same 8 (RESERVED) 8 10 10 (RESERVED) Removed 15A NCAC 02Q .0317 (PSD Avoidance) condition for H2SO4 which was associated with the now removed conditioning systems on Unit 3 (ID Nos. CD -8 and CD-8b). This condition is now a placeholder entitled RESERVED to preserve the existing permit condition numbering at the request of the Permittee. 11 11 (RESERVED) Removed State Enforceable Only 15A NCAC 02Q .0309 Arsenic Annual Emission Limit, consistent with current DAQ policy for sources subject to a MACT standard. See permit review for details. This condition is now a placeholder entitled RESERVED to preserve the existing permit condition numbering at the request of the Permittee. 12 Same In condition a, the descriptor that included “off-specification oil” was removed. The boilers have not been permitted to fire off-specification oil as of permit no. T51. Revised title of condition to reference the underlying applicable requirement for which CAM is being implemented (i.e., 15A NCAC 02D .0536). Corrected external reference from 2.1 A.4 e to 2.1 A.4.d in the indicator range discussion 13 13 (RESERVED) The condition addressing “15A NCAC 02D .2500 Mercury Rules for Electric Generators” was removed. This regulation expired on February 1, 2016. This condition is now a placeholder entitled RESERVED to preserve the existing permit condition numbering at the request of the Permittee. 15A NCAC 02D .0606 condition Added reference to Appendix P of Part 51 performance specifications to the PM and SO2 CEMS requirements This Section was a placeholder indicated as “reserved” It has been replaced with a CSAPR condition which is Federally Enforceable Only. Page 25 of 32 Existing Section New Section Description of Changes 14 Same 15A NCAC 02Q .0317 PSD Avoidance (15A NCAC 02D .0530) Condition a Same b Same c. Same d. Same 15 a Same Same b Same c Same d Same 16 Same various Same 2.1 B.3.d(A) Same 2.1 B.3.e Same Removed the following language: THIS CONDITION IS NOT SHIELDED PURSUANT TO 15A NCAC 02Q .0512(a). This condition was included as part of a minor modification in permit no. T47. It is now being subjected to public /EPA review and qualifies for a permit shield. See permit review for discussion. Revised regulatory reference from 15A NCAC 02D .0601 to 15A NCAC 02Q. 0508(f) consistent with current permitting policy Revised regulatory reference from 15A NCAC 02Q .0308 to 15A NCAC 02Q. 0508(f) Added non-compliance language consistent with current DAQ permitting policy Revised regulatory reference from 15A NCAC 02Q .0308 to 15A NCAC 02Q. 0508(f) Revised layout to be consistent with current permitting standards. No changes in intent were made. 15A NCAC 02Q .0317 NANSR Avoidance (15A NCAC 02D .0531) Condition Removed the following language: THIS CONDITION IS NOT SHIELDED PURSUANT TO 15A NCAC 02Q .0512(a). This condition was included as part of a minor modification in permit no. T47. It is now being subjected to public /EPA review and qualifies for a permit shield. See permit review for discussion. Revised regulatory reference from 15A NCAC 02D .0601 to 15A NCAC 02Q. 0508(f) consistent with current permitting policy Revised regulatory reference from 15A NCAC 02Q .0308 to 15A NCAC 02Q. 0508(f) Added non-compliance language consistent with current DAQ permitting policy Corrected reference from 2.1 A. 13.c. to 14.c. Revised regulatory reference from 15A NCAC 02Q .0308 to 15A NCAC 02Q. 0508(f) Corrected reference from 2.1 A.13.d to 14.d 15A NCAC 02D .1111: MAXIMUM ACHIEVABLE CONTROL TECHNOLOGY (40 CFR PART 63 SUBPART UUUUU) Condition Revised paragraph numbering to be consistent with current permitting policy. All non-compliance statement paragraphs were numbered. This section was revised pursuant to be consistent with the NSPS OOO, which was revised in 2009 after the previous permit renewal. With the exceptions of vents, opacity limits from building openings have been changed from 0 % to 7 % opacity. See review for details. Added standard non-compliance language to the TV testing requirement. 2.1 C applicable regulations table 2.1 C.1 Same Same Simplified the 02D .0521 Limit/standards description. The language is redundant with the language found in the permit condition. The intent of the table is for quick reference purposes only. 02D .0516 condition Page 26 of 32 Existing Section New Section Description of Changes b c NA b simple renumbering added 15A NCAC 02Q .0508(f) regulatory reference Added standard TV testing condition pursuant to current TV permitting shell. 2.1 c.2. e same Corrected reference from Section 2.1 A.7.c to Section 2.1 A.7.d 2.1 C.3. Same 2.1 D. Same Revised MACT ZZZZ to be consistent with current DAQ conditions and memorialize initial notification. No changes in intent were made. Added State Enforceable Only requirement indicator to this condition 2.1.E. Same 2.1 E applicable regulations tables Sections 2.1 E, G, H, I J K 2.1 H.1 Same b c NA b simple renumbering added 15A NCAC 02Q .0508(f) regulatory reference Added standard TV testing condition pursuant to current TV permitting shell. 2.1 H.2.e Same Corrected reference from section 2.1 A.7.c to 2.1 A.7.d 2.1 H.3 Same 2.1. J.2 same 2.1 J.3. Same Revised MACT ZZZZ to be consistent with current DAQ conditions and memorialize initial notification. No changes in intent were made. Revised the NSPS Subpart IIII condition to removed outdated fuel sulfur requirements, account for changes in the rule that address how the engine may be operated in non-emergency situations Revised MACT ZZZZ to be consistent with current DAQ conditions. Section 2.1 K. Same 2.1 K.1 same b. Same Same c and e 2.1 K.2. Same b. Same c, d and e. same d. same 2.2 A.1 Same 2.2 B.1 NA Revised listing of equipment to clarify ES-FTLW1 and 2 (wet flyash loading equipment) have no PM controls; No changes are necessary to the M/R/R requirements. Simplified the 02D .0521 Limit/standards description. The language is redundant with the language found in the permit condition. The intent of the table is for quick reference purposes only. 02D .0516 condition Removed asterisked notification requirement. This requirement was met via notification letter dated July 14, 2015. 15A NCAC 02D .0515 condition Added standard shell testing requirement to be consistent with current TV permitting policy. Revised regulatory reference from 15A NCAC 02Q .0308 to 15A NCAC 02Q. 0508(f) 15A NCAC 02D .0521 condition Added standard shell testing requirement to be consistent with current TV permitting policy. Revised regulatory reference from 15A NCAC 02Q .0308 to 15A NCAC 02Q. 0508(f) Added non-compliance statement consistent with current DAQ permitting policy Added State enforceable only requirement indicator to this condition Removed the 15A NCAC 02Q .0309 State Enforceable Only avoidance limit for the applicability of 15A NCAC 02Q .0705. Rule 02Q.0705 was repealed May 1, 2014. In addition, the arsenic limit was based on the previous arsenic Page 27 of 32 Existing Section New Section Description of Changes AAL, which has been revised upward 9-fold. See permit review for discussion. Removed the State Enforceable Only 15A NCAC 02Q .0309 requirement to submit a toxics modeling demonstration. The Permittee has met this requirement. See review for discussion. The permit shield section was substantially revised. See review for discussion. Phase II Acid Rain Permit Requirements Added permit effective dates to be consistent with other NC Acid Rain permits Revised layout of Section B to remove redundant language; Changes include: SO2 allowance language and footnote were combine into a single table NOx limit language was combined to minimize redundancy. Each unit’s emission limits and heat input limits were combined into a table. Note unit 3 has a minimum heat input limit in contrast to the other units. Revised effect date from 2012 to 2015 as included in the revised NOx averaging plan. Since the plan does not have a termination date, no termination date was included in the revised permit condition. Removed language addressing multistate environmental programs approval. The revised averaging plan consists solely of units within North Carolina. Revised dates 2.2 B.2 NA Section 2.3 Same Section 2.4 Same B Same D Same Section 2.5, Conditions A, B C and D. NA Removed all CAIR permit requirements which included conditions addressing the following repealed regulations: 15A NCAC 02D .2403: NITROGEN OXIDE EMISSIONS 15A NCAC 02D .2405: NITROGEN OXIDE EMISSIONS DURING OZONE SEASON 15A NCAC 02D .2404: SULFUR DIOXIDE EMISSIONS General Conditions Same Revised General Conditions from version 3.6 to current version 4.0 Changes include: Updating regulation references from “2D” and “2Q” to “02D” and “02Q” to be consistent with regulation nomenclature. References to DENR were revised to DEQ Minor typographical corrections Page 28 of 32 Public Notice/EPA and Affected State(s) Review The changes addressed in the permit application will be addressed as a Title V major modification pursuant to 15A NCAC 02Q .0516. A notice of the DRAFT Title V Permit shall be made pursuant to 15A NCAC 02Q .0521. The notice will provide for a 30-day comment period, with an opportunity for a public hearing. Copies of the public notice shall be sent to persons on the Title V mailing list and EPA. Pursuant to 15A NCAC 02Q .0522, a copy of each permit application, each proposed permit and each final permit pursuant shall be provided to EPA. Also pursuant to 02Q .0522, a notice of the DRAFT Title V Permit shall be provided to each affected State at or before the time notice provided to the public under 02Q .0521 above. Recommendations It is recommended that permit no. 03676T54 be issued. Attachment A Region: Mooresville Regional Office County: Catawba NC Facility ID: 1800073 Inspector’s Name: Tonisha Dawson Date of Last Inspection: 06/23/2014 Compliance Code: 3 / Compliance - inspection Permit Applicability (this application only) NORTH CAROLINA DIVISION OF AIR QUALITY Air Permit Review Permit Issue Date: 11/06/2014 Facility Data SIP: 2D .0515, .0521 NSPS: NESHAP: PSD: PSD Avoidance: 2Q .0317 for PM-10 NC Toxics: 112(r): Other: 2Q .0317 NAA NSR Avoidance for PM-2.5 Applicant (Facility’s Name): Duke Energy Carolinas, LLC - Marshall Steam Station Facility Address: Duke Energy Carolinas, LLC - Marshall Steam Station 8320 East Highway 150 Terrell, NC 28682 SIC: 4911 / Electric Services NAICS: 221112 / Fossil Fuel Electric Power Generation Facility Classification: Before: Title V After: Title V Fee Classification: Before: Title V After: Title V Contact Data Facility Contact Authorized Contact George Tolbert EHS Professional (336) 623-0415 900 South Edgewood Road Eden, NC 27288 Brian Weisker General Manager (828) 478-7600 8320 East Highway 150 Terrell, NC 28682 Application Data Technical Contact William Horton Senior Environmental Specialist (980) 373-3226 526 South Church Street (EC13K) Charlotte, NC 28202 Application Number: 1800073.14C Date Received: 04/04/2014 Application Type: Modification Application Schedule: TV-Sign–501(c)(2) Existing Permit Data Existing Permit Number: 03676/T50 Existing Permit Issue Date: 03/05/2014 Existing Permit Expiration Date: 08/31/2015 Total Actual emissions in TONS/YEAR: CY SO2 NOX VOC CO PM10 Total HAP Largest HAP 2012 4599.15 11027.63 105.42 2305.47 1070.66 141.29 116.74 [Hydrogen chloride (hydrochlori] 2011 3852.98 9086.27 132.55 2898.98 1809.95 179.07 147.14 [Hydrogen chloride (hydrochlori] 2010 3657.90 9608.90 145.52 3177.09 1295.51 192.06 160.65 [Hydrogen chloride (hydrochlori] 2009 4570.86 9744.37 145.22 3175.69 1324.23 198.42 165.90 [Hydrogen chloride (hydrochlori] 2008 6174.76 13234.28 149.90 3237.13 7151.50 190.50 154.02 [Hydrogen chloride (hydrochlori] Review Engineer: Ed Martin Review Engineer’s Signature: Comments / Recommendations: Issue 03676/T51 Permit Issue Date: 11/06/2014 Permit Expiration Date: 08/31/2015 Date: 11/06/2014 1 I. Purpose of Application Duke Energy is requesting a permit modification to operate a brominated powered activated carbon injection (ACI) system on Unit 4 on a permanent basis for the purpose of reducing mercury emissions in preparation for compliance with the Utility Mercury and Air Toxics Standards (MATS) rule. Duke was permitted in Permit T47 on September 14, 2010, to conduct a short-term evaluation of reducing mercury emissions on Unit 4 using both spray-applying calcium dibromide and injection of activated carbon on a temporary basis, for a total calcium dibromide use of 62,000 lbs. and total activated carbon use of 150, 000 lbs. This was placed in the permit at conditions 2.1.A.14 and 15 which are now being revised as discussed below. No new equipment was permitted at that time for the evaluation. The evaluation has been completed and provisions for calcium dibromide are no longer needed and this is being removed from the permit. This permit modification will add a 14’ diameter x 60’ high dry storage injection (DSI) ACI storage silo (ID No. ES-U4ACISilo) with a bin vent filter (ID No. CD-U4ACISiloBf). Duke was given approval to construct this equipment (Notice of Intent to Construct) on March 17, 2014, prior to receipt of the air permit as allowed by N.C.G.S. 143-215.108A(b) (see Section V.A below). After the draft permit was sent to Duke for review on October 15, 2014, they requested the following additional changes be made: 1. To remove burning of “off-specification oil” in Units 2 and 3 (in equipment description and state-only condition 2.1.A.8) and remove burning of waste tetra-ammonium or di-ammonium ethylene di-amine tetra-acetic acid (EDTA) boiler cleaning solution in Units 1, 2, 3 and 4 (in state-only conditions 2.1.A.8.d and 2.1.A.9) as Duke has discontinued burning these substances. Duke requested the 2D .1100 toxic limits for ammonia in Section 2.1.A.8 that were established through modeling for combustion of off-specification oil and waste EDTA boiler cleaning solution be retained (see Section V.C below) (ref. emails from Bill Horton to Ed Martin dated October 16, 21, 23 and 27, 2014). 2. To remove spray applying calcium dibromide on the coal for Units 1 and 2 that was placed in the permit for a short-term trial for a mercury reduction evaluation that has now ended (in PSD avoidance condition 2.1.A.16 for PM/PM10 and NA NSR condition 2.1.A.17) (ref. emails from Bill Horton to Ed Martin dated October 16, 2014 and October 21, 2014). 3. To delete insignificant activities I-25, I-28, I-34.1 and I-38 (ref. two emails from Bill Horton to Ed Martin dated October 21, 2014). 4. To request the state-only 2D .2500 mercury condition 2.1.A.13 be revised consistent with previous changes to the same condition for Cliffside Units 1-5 in Permit No. 04044T34, condition 2.1.A.8 (see Section V.B below) (ref. emails from Bill Horton to Ed Martin dated October 17, 2014 and October 21, 2014). This is a significant permit modification pursuant to rule 15A NCAC 2Q .0501(c)(2). The permit shield described in General Condition R does not apply to these changes. Public notice of the draft permit is not required at this time. The Permittee must file a Title V Air Quality Permit Application pursuant to 15A NCAC 2Q .0504 for these changes on or before 12 months after commencing operation in accordance with General Condition NN.1. II. Permit Changes The following changes were made to the Duke Energy Carolinas LLC- Marshall Air Permit No. 03676T50: Page No. Section Change -- Cover Amended permit numbers and dates. -- Insignificant Activities List Removed sources I-25, I-28, I-34.1 and I-38. 2 3-4 4 Section 1, table of emission sources Removed “off-specification oil” from equipment description for Units 2 and 3. Removed Unit 4 control device: system for spray-applying calcium bromide on coal (ID No. CD-U4CaBr2(Temp)). Removed “(Temp)” from Unit 4 control device ID No. CD-U4ActC (Temp). 6 Added MS4 DSI ACI storage silo (ID No. ES-U4ACISilo) and ACI storage silo bin vent filter baghouse (ID No. CD-U4ACISiloBf). Removed spray-application of calcium bromide (ID No. CD-U4CaBr2(Temp)) from footnote **. Removed “(Temp)” from ID No. CD-U4ActC (Temp) from footnote **. 7 9 Section 2.1.A, equipment description 14 Section 2.1, regulation table Section 2.1.A.1.d Section 2.1.A.2.c Section 2.1.A.8 14 Section 2.1.A.9 17 Section 2.1.A.13 17-18 Section 2.1.A.14 and Section 2.1.A.15 Section 2.1.A.16 and Section 2.1.A.17 Section 2.1.K 9 10 18 35-36 III. Removed “off-specification oil” from equipment description for Units 2 and 3. Removed Unit 4 spray-application system for calcium bromide (ID No. CD-U4CaBr2(Temp)) from equipment description. Removed “(Temp)” from Unit 4 equipment description for powered activated carbon system ID No. CD-U4ActC(Temp). Removed reference to Section 2.1.A.16 for PM/PM10 and removed reference to Section 2.1.A.17 for PM2.5. Added to clarify that missing data shall be filled in accordance with 40 CFR Part 75 whenever the unit combusts any fuel. Added to clarify that missing data shall be filled in accordance with 40 CFR Part 75 whenever the unit combusts any fuel. Removed this condition for burning off-specification oil and waste tetra-ammonium or di-ammonium ethylene di-amine tetra-acetic acid (EDTA) boiler cleaning solution. Removed this condition for burning waste tetra-ammonium or di-ammonium ethylene di-amine tetra-acetic acid (EDTA) boiler cleaning solution. Revised mercury requirements. Revised these conditions to remove spray applying calcium dibromide and change the amount of amount of injected powered activated carbon from a total of 150,000 lbs to 9,000,000 lbs per year. Removed these conditions for spray-applying calcium dibromide on the coal. Added this section for the MS4 DSI ACI storage silo. Facility Description Duke Power’s Marshall Steam Station is an electric utility that generates electrical power. The Marshall Steam Station is permitted for four coal/No. 2 fuel oil-fired electric utility boilers (ID Nos. ES-1, ES-2, ES-3, ES-4) and various supporting equipment. IV. Summary of Changes to Emission Sources and Control Devices The equipment description changes for the above modifications are as follows (changes in bold): Emission Source ID No. Emission Source Description Control Device ID No. 3 Control Device Description Emission Source ID No. Control Device ID No. Control Device Description CD-U4CaBr2 (Temp) System for spray-applying calcium bromide on coal** CD-11c (U4SNCR) Selective non-catalytic reduction (SNCR) NOx reduction system* Emission Source Description CD-12 One No. 2 fuel oil/coal-fired electric utility boiler (7,110 million Btu per hour heat input) equipped with a low NOx concentric firing system, separated overfire air/lowered fired low-NOx technologies (SOFA/LOFIR), and alkaline-based fuel additive*** ES-4 CAM Unit 4 CD-12B (NH3FGC) Anhydrous ammonia injection ash conditioning system (20 ppm maximum injection rate)* CD-U4ActC (Temp) System for injecting powdered activated carbon** CD-13 (ESPnew) CD-U4 FGD ES-U4ACISilo† ** † V. MS4 DSI ACI storage silo (6000 cubic feet capacity) One flue gas conditioning system consisting of an integral sulfur trioxide ash conditioner* CD-U4ACISiloBf† One cold-side electrostatic (768,108 feet of plate area) precipitator Wet flue gas desulfurization system consisting of spray tower absorber (approximately 165 gal/min limestone slurry injection rate) ACI storage silo bin vent filter (259 square feet of filter area) The spray-application of calcium bromide (ID No. CD -U4CaBr2(Temp)), injection of powdered activated carbon (ID No. CD-U4ActC(Temp)), and installation of emergency generator (ID No. ES-37 (EmGenLF)) are listed as a minor modification per 15A NCAC 2Q .0515. The compliance certification as described in General Condition P is required. Unless otherwise notified by NC DAQ, the affected terms of this permit (excluding the permit shield as described General Condition R) for this source shall become final on November 13, 2010. Until this date, the affected permit terms herein reflect the proposed operating language that the Permittee shall operate this source under pursuant to 15A NCAC 2Q .0515(f). These emission source(s) and/or control device(s) (ID Nos. ES-U4ACISilo and CD-U4ACISiloBf) are listed as a 15A NCAC 2Q .0501(c)(2) modification. The Permittee shall file a Title V Air Quality Permit Application on or before 12 months after commencing operation in accordance with General Condition NN.1. The permit shield described in General Condition R does not apply and compliance certification as described in General Condition P is not required. Emission and Regulatory Evaluation Emissions from the ACI system result from injection of the powered activated carbon and from filling the ACI storage silo as follows: A. Emissions from Injection of Powered Activated Carbon The maximum annual activated carbon injection rate is 9,000,000 lb/yr. At the mean ESP collection efficiency of 99.5% over the period from 2004 to 2006, prior to installation of the FGD scrubber, which does not account for the additional particulate removal in the FGD scrubber, the potential PM emission rate at 8760 hours per year operation is: Annual PM emission rate: (9,000,000 lb/yr) (1-0.995) / (2000 lb/ton) = 22.5 tpy Using the particle distribution information Duke submitted with the application for bromated powered activated carbon from Calgon (most conservative worst case among the supply vendors), shows PM-10 to be 59% of total PM and PM-2.5 to be 17% of total PM. Therefore PM-10 and PM-2.5 emissions are: 4 Annual PM-10 emission rate: Annual PM-2.5 emission rate: PM annual emission rate x 0.59 = (22.5 tpy) (0.59) = 13.28 tpy PM annual emission rate x 0.17 = (22.5 tpy) (0.17) = 3.83 tpy Emissions from Filling Storage Silo The bagfilter is designed for a manufacturer’s guaranteed outlet grain loading of 0.005 grains/ft3at a maximum air flow rate of 1000 cfm. The resulting emissions are: (1000 ft3/min) (0.005 gr PM/ft3) (1 lb/7000 gr PM) (60 min/hr) (8760 hr/yr) / (2000 lb/ton) = 0.19 tpy of PM/PM-10/PM-2.5 The total emissions for the ACI system from injection of the powered activated carbon and from filling the storage silo are: Total annual PM emissions: Total annual PM-10 emissions: Total annual PM-2.5 emissions: 22.5 tpy + 0.19 tpy = 22.69 tpy 13.28 tpy + 0.19 tpy = 13.47 tpy 3.83 tpy + 0.19 tpy = 4.02 tpy < PSD/NSR threshold of 25 tpy < PSD/NSR threshold of 15 tpy < PSD/NSR threshold of 10 tpy 2Q .0317 to avoid applicability of 2D .0530 and 2D .0531 The above emission rates are below the PSD and NA NSR thresholds and therefore the existing avoidance conditions 2.1.A.14 (to avoid applicability of PSD) and 2.1.A.15 (to avoid applicability of NA NSR) are being revised to allow a powdered activated carbon injection rate not to exceed 9,000,000 lbs per year. Monitoring and recordkeeping is required of the amount of powered activated carbon injected monthly. The Permittee shall submit a semi-annual summary report of monitoring and recordkeeping activities containing the monthly amount of powdered activated carbon injected in the Unit 4 boiler for the previous 17 months. The emissions must be calculated for each of the 12-month periods over the previous 17 months. Using the “streamlining” clause in Part 70, the Permittee will be required to comply with the monitoring, recordkeeping and reporting requirements of PM-10 under the PSD avoidance condition to demonstrate compliance with the requirement for PM-2.5 under NA NSR. Compliance with the monitoring, recordkeeping and reporting requirements under PSD avoidance shall be deemed as complying with the monitoring requirement for NA NSR avoidance condition. There are no actual changes to the NA NSR avoidance condition 2.1.A.15, since it relies on the PSD avoidance condition 2.1.A.14; however, for that reason both conditions are not shielded pursuant to 2Q .0512(a). Note, in the application Duke requested removal of condition 2.1.A.15, saying Catawba Co is not currently designated as non-attainment for PM-2.5. However, the county is still non-attainment and EPA plans to promulgate final PM-2.5 designations in December of 2014 (according to http://www.ncair.org/planning/pm2dot5/EPA_PM25_Resp_08192014.pdf). Therefore 2.1.A.15 cannot be removed yet. NSPS Applicability This modification is not a modification under NSPS, since the primary function of the ACI system is the reduction of air pollutants and is therefore exempted in accordance with 40 CFR 60.14(e)(5). The ACI system is subject to the following regulations: One MS4 DSI ACI storage silo (ID No. ES-U4ACISilo) and associated ACI storage silo bin vent filter baghouse (ID No. CD-U4ACISiloBf) 1. 15A NCAC 2D .0515: PARTICULATES FROM MISCELLANEOUS INDUSTRIAL PROCESSES Emissions of particulate matter from these sources shall not exceed an allowable emission rate as calculated by the following equation: [15A NCAC 2D .0515(a)] 5 E = 4.10 x P 0.67 for P 30 tons/hr, or E = 55.0 x P 0.11 - 40 for P > 30 tons/hr where: E = allowable emission rate in pounds per hour P = process weight in tons per hour Monitoring/Recordkeeping Requirements To ensure that optimum control efficiency of particulate matter is maintained by the bagfilter, inspections and any required maintenance will be performed as recommended by the manufacturer. If manufacturer’s recommendations are not available, as a minimum, inspections will include annual internal inspections of the bagfilter to ensure structural integrity and monthly visual (external) inspections of the system ductwork and material collection unit for leaks. The Permittee shall keep records of the following: (A) (B) the results of each inspection, and any maintenance performed on the bagfilter. Reporting Requirements The Permittee will submit the results of any maintenance performed on the bagfilters within 30 days of a written request by DAQ. A summary report of monitoring and recordkeeping shall be submitted by January 30 and July 30 of each year. 2. 15A NCAC 2D .0521: CONTROL OF VISIBLE EMISSIONS Visible emissions from this source shall not be more than 20 percent opacity (except during startups, shutdowns, and malfunctions) when averaged over a six-minute period. However, six-minute averaging periods may exceed 20 percent not more than once in any hour and not more than four times in any 24-hour period. In no event shall the six-minute average exceed 87 percent opacity. Monitoring/Recordkeeping Requirements One visual observation monthly of the emission point shall be performed for any visible emissions above normal operating conditions. The results of the observations shall be recorded. Reporting Requirements A summary report of the visual observations shall be submitted by January 30 and July 30 of each year. Note, during permit renewal, Duke should address the requirements of CAM related to the ACI system. modification. B. Revisions to 2D .2500 Mercury Rules for Electric Generators (condition 2.1.A.12) Duke is requesting that this condition be revised consistent with changes to the Cliffside permit (04044T34). This is necessary due to vacatur and repeal of the Clean Air Mercury Rule, 40 CFR Part 60, Subpart HHHH (CAMR) effective April 16, 2012. The Cliffside permit was the first utility permit to be revised for these changes. Portions of 2D .2500 relied heavily on the CAMR requirements and were rendered unworkable on April 16, 2012. However, as determined by the Attorney General’s Office (memorandum dated April 24, 2012), certain portions of this rule are severable from CAMR and remain applicable as mercury emission requirements. Therefore, the permit is being revised consistent with the Attorney General’s memorandum to remove the CAMR requirements and modified to include only the applicable portions of the following state-only 2D .2500 sections: 6 The following part of 15A NCAC 2D .2500(a): “Purpose. The purpose of this Section is to control mercury emissions from coal-fired electric steam generating Hg units[.]” 15A NCAC 2D .2501(e) 15A NCAC 2D .2509(b) through (e) 15A NCAC 2D .2511(a) through (f) C. Duke has requested (see emails referenced in Section I above) the burning of “off-specification oil” in Units 2 and 3 and burning of waste EDTA boiler cleaning solution in Units 1, 2, 3 and 4 be removed from Section 2.1.A.8 since Duke has discontinued burning these substances. These are the only substances referenced in Section 2.1.A.8 for the toxic limits listed. However, Duke requested the toxic limits (shown below) for ammonia in this section be retained since they were established through modeling for combustion of off-specification oil and waste EDTA boiler cleaning solution as well as for other reasons including the anhydrous ammonia injection flue gas treatment conditioning system and SCR ammonia slip. Emission Source(s) Unit No. 1 Unit No. 2 Unit No. 3 Unit No. 4 Toxic Air Pollutant(s) Ammonia Ammonia Ammonia Ammonia Emission Limit(s) 16.364 pounds per hour 16.366 pounds per hour 8.869 pounds per hour 8.867 pounds per hour Since the condition does not reference the reasons for the ammonia limits other than burning of off-specification oil and EDTA, Duke was informed (and agreed) that the limits would need to be removed from the permit but that the modeled rates were still valid without requiring new modeling. In any event, when the MATS rule (Utility MACT Subpart UUUUU) becomes effective (on April 16, 2015 for existing EGUs), the boilers will not be subject to NC toxics but will need to be evaluated for presenting an unacceptable risk to human health. Note, Duke has discontinued burning any waste oil whether it’s off-specification oil or on-specification oil at Marshall. VI. Other Requirements PE Seal A PE seal is not required since the bagfilter (ID No. U4ACISiloBf) flow rate is less than 10,000 acfm in accordance with 2Q .0112. Zoning A letter was included with the application from the Catawba County Department of Planning, Parks & Development stating their office received the application and had been given the opportunity for review. Fee Classification The facility fee classification before and after this modification will remain as “Title V”. VII. Recommendations The draft permit was sent to Bill Horton at Duke on October 15, 2014 for review. Duke’s comments were incorporated as shown herein as requested in emails from Bill Horton to Ed Martin dated October 16, 17 and 21, 2014. The permit was also sent to Tonisha Dawson at MRO and to SSCB for comment on October 15, 2014. No comments were received from MRO or SSCB. Issuance is recommended. 7 Attachment B Region: Mooresville Regional Office County: Catawba NC Facility ID: 1800073 Inspector’s Name: Tonisha Dawson Date of Last Inspection: 06/29/2009 Compliance Code: 3 / Compliance - inspection NORTH CAROLINA DIVISION OF AIR QUALITY Air Permit Review Permit Issue Date: September 14, 2010 Facility Data Permit Applicability (this application only) Applicant (Facility’s Name): Duke Energy Carolinas, LLC - Marshall Steam Station Facility Address: Duke Energy Carolinas, LLC - Marshall Steam Station 8320 East Highway 150 Terrell, NC 28682 SIP: 2D .0521 NSPS: IIII NESHAP: ZZZZ PSD: PSD Avoidance: PM10 NC Toxics: 112(r): Other: NAA NSR Avoidance for PM2.5 SIC: 4911 / Electric Services NAICS: 221112 / Fossil Fuel Electric Power Generation Facility Classification: Before: Title V After: Title V Fee Classification: Before: Title V After: Title V Contact Data Facility Contact Authorized Contact Application Data Technical Contact Application Number: 1800073.10A Date Received: 06/21/2010 Donna Burrell Stephen Immel William Horton Application Type: Modification Principle EHS Regional Manager Senior Environmental Application Schedule: TV-Minor Professional (828) 478-7600 Specialist Existing Permit Data (828) 478-7820 8320 East Highway 150 (980) 373-3226 Existing Permit Number: 03676/T46 8320 East Highway 150 Terrell, NC 28682 526 South Church Street Existing Permit Issue Date: 9/7/2010 Terrell, NC 28682 Charlotte, NC 28202 Existing Permit Expiration Date: 8/31/2015 Review Engineer: Rahul Thaker Comments / Recommendations: Issue 03676/T47 Review Engineer’s Signature: Date: September 14, 2010 Permit Issue Date: 9/14/2010 Permit Expiration Date: 8/31/2015 1. Purpose of Application Duke Energy Carolinas, Inc. (“Duke Energy”) has requested to obtain a permit approval to conduct evaluations of mercury emissions control for Unit 4 boiler (ID No. ES-4) when spray-applying and injecting calcium dibromide and powdered activated carbon, respectively. 2. Facility Description The Marshall Steam Station is an electric power plant. 3. Application Chronology Refer to “Events Update” screen in the I-BEAM. 4. Statement of Compliance 1 The Responsible Official has certified compliance with all applicable requirements in Form E5 of the application. The inspection report for the last visit to the facility (08/26/2009) includes, “Based on my (Tonisha Dawson) observations, this facility appeared to be in compliance with the applicable air quality regulations at the time of the inspection.” 5. Permit Modification/Changes 5.1 To conduct evaluations of mercury emissions control for Unit 4 boiler (ID No. ES-4) when spray-applying and injecting calcium dibromide and powdered activated carbon, respectively. In preparation for any future regulations requiring control of mercury emissions from electric generating units (EGU), Duke Energy has planned for two separate mercury control evaluation studies on this boiler. The first study will focus on the effectiveness of liquid calcium dibromide (CaBr 2) on the oxidation of mercury and its capture by the downstream control equipment; ESP and wet FGD. This study will be conducted by EPRI during the first two weeks of November 2010. The second study will be an evaluation of the effectiveness of powdered activated carbon (PAC) in controlling emissions of mercury. This study will be conducted by ADA during the last two weeks of November 2010. Spray-applying of Calcium Dibromide (CaBr2) [ID No. CD-U4CaBr2 (Temp)] During the first 4-5 days of the study, liquid 53% (by weight) CaBr 2 will be spray-applied onto the coal feeder just above the pulverizer-mills at an application rate ranging from 0.25 to 2.5 lb CaBr 2 per ton of coal. During this first week, optimum injection rate of this sorbent is identified. In the second week, this optimum rate of application will be continued for application. During the study, the contractor plans to apply approximately 62,000 lbs of CaBr 2 on 28,500 tons of coal. Mercury emissions before and after the study will be monitored using speciated mercury CEM. During the combustion, vapor phase mercury in the coal can form HgBr and HgBr 2, which will adhere to the flyash. It will be captured by the ESP with additional control provided by FGD. The calcium can reform as CaSO4, CaO2, CaCO3, etc. The above compounds add to the particulate emissions. Based upon the usage of 62,000 lbs of CaBr 2 and 57,000,000 lbs of coal during the study, and the fly ash content of 11%w and the PM emission rate of 0.03 lb/million Btu (both from recent particulate emission test on Unit 4 boiler), the amount of PM emissions attributable to this study will be approximately 0.0002 lb/million Btu. Thus, based upon the maximum heat input rate of 7,110 million Btu/hr for the boiler, the PM emission rate attributable to the study for two weeks (325 hours) time period can be approximately 0.23 tons/yr or 0.21 tons/yr PM10 (assuming 90% of PM is PM10). Finally, based upon 8,760 hours of operation, the potential PM emission rate can be estimated as 6.3 tons/yr or 5.67 tons/yr PM10. Injection of Powdered Activated Carbon (PAC) [CD-U4ActC (Temp)] During the first week, non-brominated and brominated PAC will be injected downstream of the air preheater at varying rates ranging from 300 to 1,000 lbs/hr. Also, the application rate corresponding to optimum mercury control will be identified. In the second week, this optimum application rate will be continued for application. The contractor will use about 150,000 lbs of PAC. Based upon 150,000 lbs of PAC usage during the study, and PM control of 98.5% with ESP and 50% with FGD, the amount of PM10 attributable to study will be approximately 0.563 tons/yr. For 300 lbs/hr of PAC usage, PM control of 98.5% with ESP and 50% with FGD, maximum heat input rate of 7,110 million Btu/hr for the boiler, and the 8,760 hours of operation, the potential PM emissions attributable to the PAC injection can be estimated as approximately 9.96 tons/yr PM or 8.87 tons/yr PM10. 2 Similarly for 1,000 lbs/hr of usage of PAC, the potential PM emissions can be as high as 32.85 tons/yr or 29.57 tons/yr PM10 (6.75 lbs/hr). This equals the PM10 emission rate of 0.00095 lb/million Btu. Thus, the potential PM emissions from the applications of these sorbents (calcium bromide and powdered activated carbon) for controlling mercury emissions will be as follows: 16.2 tons/yr to 39.2 tons/yr PM, 14.5 tons/yr to 35.2 tons/yr PM10. In addition, it is assumed that PM2.5 emissions are the same as PM10 emissions, thus the potential PM2.5 emissions will also be between 14.5 tons/yr to 35.2 tons/yr PM10. Therefore, a permit limit is needed to avoid PSD for both PM and PM10. In addition, because the County of Catawba is in non-attainment (NA) of PM2.5 NAAQS, a limit is also required under NA NSR for PM2.5 emissions. The following includes monitoring approach for both avoidance stipulations: 2Q .0317 to avoid applicability of 2D .0530 The amounts of spray-applying calcium dibromide and injecting powdered activated carbon in Unit 4 boiler (ID No. ES-4) during the mercury control evaluation studies shall not exceed 62,000 lbs and 150,000 lbs, respectively. The Permittee shall be deemed in noncompliance with 15A NCAC 2D .0530 if the amounts of spray-applying calcium dibromide and injecting powdered activated carbon in Unit 4 boiler (ID No. ES-4) are not monitored or the amounts of spray-applying calcium dibromide and injecting powdered activated carbon in Unit 4 boiler (ID No. ES-4) exceed the respective amounts included above. The Permittee shall submit a summary report acceptable to the Regional Air Quality Supervisor of monitoring and recordkeeping activities, postmarked on or before 30 days from the completion of mercury control evaluation studies. The report shall contain the following: The amounts of spray-applying calcium dibromide and injecting powdered activated carbon in Unit 4 boiler for the mercury control evaluation studies. 2Q .0317 to avoid applicability of 2D .0531 Using the “streamlining” clause in Part 70, the Permittee will be required to comply with the monitoring (including record keeping and reporting) requirements of PM10 under PSD avoidance stipulation to demonstrate compliance with the requirement for PM2.5 under NA NSR, and no additional monitoring requirements shall apply. Compliance with the monitoring requirement under PSD avoidance shall be deemed as complying with the monitoring requirement for NA NSR avoidance condition. Similarly, reporting requirement under PSD avoidance shall be sufficient for satisfying reporting requirement in NA NSR avoidance stipulation. 2D .0536 The only other applicability, which needs to be addressed, is the compliance with the existing SIP standard of 0.18 lb/million Btu under 2D .0536. Based on the recent particulate emission test showing emission rate of 0.03 lb/million Btu, the PM emissions after this modification can be estimated as follows: (0.03 + 0.002 + 0.00095) lb/million Btu = 0.0329 lb/million Btu, which is less than the SIP limit of 0.18 lb/million Btu. Hence, the compliance is expected for this SIP standard. 5.2 To install 100 kW diesel-fired emergency generator (157 HP engine output) at landfill (ID No. ES-37 (EmGenLF)). For the proposed 100 kW diesel-fired emergency generator (157 HP engine output), based upon 500 hours of operation, the potential uncontrolled emissions of each criteria pollutant are less than 5 tons/yr and potential uncontrolled emissions of each hazardous air pollutants are less than 1,000 lbs/yr. Thus, DAQ may deem this source “insignificant activity because of category” under the provision of 2Q .0503(8) and hence, can list accordingly as an attachment to the revised permit. But, DAQ will not be able to classify this emission source as insignificant activity under 2Q .0503(8) and will permit it with specific conditions. See Section 7 for details. 3 The applicable requirements for the proposed generator are 2D .0521, .0524, .1111, and 2Q .0700. 15A NCAC 2D .0521 "Control of Visible Emissions" For sources manufactured after July 1, 1971, visible emissions shall not be more than 20 percent opacity when averaged over a six-minute period. However, except for sources required to install COMs, six-minute averaging periods may exceed 20 percent opacity if: (1) No six-minute period exceeds 87 percent opacity; (2) No more than one six-minute period exceeds 20 percent opacity in any hour; and (3) No more than four six-minute periods exceed 20 percent opacity in any 24-hour period. The proposed generator is subject to 20 percent opacity limit. The compliance with this requirement will be verified after their commencement of operation. 15A NCAC 2D .0524 "New Source Performance Standards" Applicability EPA has promulgated NSPS Subpart IIII "Standards of Performance for Stationary Compression Ignition Internal Combustion Engine" in 71 FR 39154 on July 11, 2006. This NSPS became effective on September 11, 2006. The affected source under the NSPS is each stationary compression ignition (CI) internal combustion engine (ICE) [CI ICE], whose construction, modification or reconstruction commenced after July 11, 2005. The date of construction is the date the engine is ordered by the owner or operator. Owners and operators of stationary CI ICE that commence construction after July 11, 2005 where the stationary CI is manufactured after April 1, 2006 and is not a fire pump engine, is subject to the requirements of this NSPS as per §60.4200(a)(2). The proposed emergency generator’s electric output capacity is 100 kW. It will be driven by CI ICE to produce power for emergency use only. This generator will commence construction after July 11, 2005 and the engine will have a manufacturing date after April 1, 2006. Hence, the proposed generator is subject to the requirements of the NSPS Subpart IIII. Emissions Standards In accordance with §60.4205(b) and §60.4202(a)(2), the following emissions standards shall apply for this generator: AFFECTED SOURCE POLLUTANT emergency generator (ID No. ES-37 (EmGenLF)) nitrogen oxides + VOCs EMISSION LIMIT (g/hp-hr) 4.0 carbon monoxide 5.0 PM 0.30 Monitoring/Recordkeeping/Reporting For operation after October 1, 2007, the engine must use diesel fuel with a sulfur content of less than 500 ppm. For operation after October 1, 2010, the engine must use diesel fuel with sulfur content of less than 15 ppm. [§60.4207, and 40CFR80.510(a) and (b)] 4 The engine must be equipped with a non-resettable hour meter prior to startup, for an engine that is to be classified as emergency use. [§60.4209(a)] If the emergency generator is equipped with diesel particulate filter to comply with the above emission standards, the Permittee shall install backpressure monitor on diesel particulate filter that notifies the Permittee when the high backpressure limit of the engine is approached. [§60.4209(b)] The owner/operator must operate and maintain the engine in accordance with the manufacturer’s written instructions. The owner or operator may only change those engine settings that are permitted by the manufacturer. [§60.4211(a)] The owner or operator of an engine for 2007 or later must comply by assuring that the engine purchased is certified to meet the applicable emissions standards and must install and configure the engine according to the manufacturers specifications. [§60.4211(c)] An emergency engine may be operated for maintenance and readiness checks for up to 100 hours per year. Operation during an actual emergency is not subject to a limit on hours. [§60.4211(e)] No initial notification is required for an emergency use engine. However, the owner or operator must keep records of all the operation of the engine in emergency and non-emergency service that are recorded through the non-resettable hour meter, unless the engine is shown to meet the standards applicable to non-emergency use engines. [§60.4214(b)] If the emergency stationary CI ICE of emergency generator is equipped with diesel particulate filter, the Permittee shall keep records of any corrective action taken after the backpressure monitor has notified the Permittee that the high backpressure limit of the engine is approached. [§60.4214(c)] 15A NCAC 2D .1111 "Maximum Achievable Control Technology" Applicability EPA has promulgated MACT Subpart ZZZZ “National Emission Standards for Hazardous Air Pollutants for Reciprocating Internal Combustion Engines (RICE MACT)” in 69 FR 33506 on June 15, 2004 with an effective date of August 16, 2004. This MACT was last time revised at 75 FR 9674 on March 3, 2010. The MACT applies to RICE located at a major or an area source of HAP emissions with a site-rating of less, equal to or greater 500 BHP. A stationary RICE with a site-rating of equal to or less than 500 HP located at a major source of HAP is defined as “new” if you commenced construction of the stationary RICE on or after June 12, 2006. The proposed RICE has a site-rating of 157 HP and it will be constructed after June 12, 2006 at a “major” source of HAP. Hence, this generator is deemed “new” affected source at a “major” source under this Subpart. Hence, it will be required to demonstrate compliance with the MACT upon startup. If the “new” emergency use stationary RICE located at a “major” source is subject to NSPS Subpart IIII requirements, then the RICE must meet the requirements of MACT Subpart ZZZZ by meeting all applicable requirements under NSPS Subpart IIII. No further requirements shall apply to such engines under MACT Subpart ZZZZ. Refer to §63.6590(c). 15A NCAC 2Q .0700 “Toxic Air Pollutant Procedures” See Section 7 for details. 5.3 Others 5 The proposed temporary air compressor, identified as ES-38 (TempAC), is to be brought on site by ADA (contractor) to support its mercury emissions testing in November 2010. Thus, ADA provides contractual service to Duke Energy Marshall Steam Station. The compressor is in total control of the contractor and thus it is not considered part of the Marshall Steam Station facility. Therefore, the compressor is not required to be evaluated for any air permitting (including determination of any insignificant activity) for the Marshall Steam Station permit, in accordance with the DAQ memo of 10/15/2007 (Keith Overcash to Preston Howard). However, the contractor (ADA) needs to evaluate whether any air permit is needed under its name for this equipment before the PAC study commences and its compliance with various requirements. In brief, this source will not appear in the Marshall Steam Station permit in any form. 6. NSPS, NESHAPS, PSD, Attainment Status, 112(r), and CAM NSPS The proposed sorbent injection systems for control of mercury emissions from Unit 4 boiler are deemed “system or device whose primary function is the reduction of air pollutants”, thus they are NOT considered “modification” under Part 60 (NSPS). Refer to §60.14(e)(5). NESHAP/MACT Not applicable to the proposed modification. EPA is to promulgate a 112(d) MACT in future. At that time, the applicability for the MACT needs to be evaluated for all electric generating units (EGUs) at the facility. For the proposed 157 HP diesel -fired emergency generator identified as ES-37 (EmGenLF), it is subject to RICE MACT. Please see the complete details on this issue in Section 5.2 above. Attainment Status and PSD Catawba County is in attainment of all NAAQS except for PM2.5 NAAQS. PSD program applies for all attainment pollutants and non-attainment new source review (NAA NSR) applies for PM2.5 and its precursors (SO 2 and NOx in NC) in this county. Please refer to Section 5.1 for complete details on PSD and NAA NSR. 112(r) This facility is subject to Section 112(r) of the Clean Air Act requirements. CAM The analysis on applicability of CAM requirement is not required for the proposed sorbent injection systems, because this application is processed using the “minor modification” provisions, and not under the “significant modification” or the “renewal” procedures. 7. Facility Wide Air Toxics The current permit includes applicable requirements in 2D .1100, and 2Q .0711 and .0317 (2Q .0705 avoidance). The current air permit stipulation in Section 2.2 B.1. includes facility wide emission limit for arsenic to avoid air toxics review in 2Q .0705. In addition, the facility (all existing EGUs) has been modeled as per 2D .1100 for emissions of ammonia, cadmium, and nickel, as per the current permit stipulation Section 2.1 A. 10.a. NC's state enforceable only requirements in 2Q .0700 has recently been revised effective July 10, 2010, with respect to new and modified combustion sources. In particular, if the “modification” provision in 2Q .0703 is triggered for any air toxics listed in 2Q .0711, then the facility must evaluate the emissions for that pollutant from the modified Unit (Unit 4 boiler), all permitted 6 combustion sources, all permitted non-combustion sources, and all insignificant activities (all activities listed to the cover letter to the permit and any new activity included in this application) emitting the same pollutant. As stated above, the CaBr2 is spray-applied onto the coal being conveyed on the coal feeder (located just above the pulverizers). The company contends that the MSDS for CaBr2 does not list any pollutant regulated in NC’s air toxics program nor does it indicate any that would be emitted as a consequence of the combustion. But, the MSDS for this sorbent on page 3 indicates that “thermal decomposition products may include toxic and corrosive fumes of hydrogen bromide and/or bromine”. Bromine is a regulated pollutant under 2Q .0700. In addition, the spray-applied coal is combusted (at high temperatures) in the boiler, so the possibility of thermal decomposition of the sorbent, and thus, formation/emission of bromine must need to be addressed. Upon DAQ’s comment, the company has investigated this issue and offered the following rebuttal (in double quotes): “...After combustion at > 500 °C, bromine will leave the WFGD as bromide...Thus, most of the bromine added to the coal as CaBr2 is leaving a limestone-based WFGD once again as CaBr2 with its off-water. Only a very small amount is emitted at the stack as HBr (< 1 mg HBr / dscm), but not as bromine.” “Halogen measurement methods (M26) are not sensitive enough to detect the levels of concentration you (Bill H.) cited for NC requirements. Any halogen emitted at the stack is likely to be HBr and not Br2, and HBr will be below detection limits. The practical detection limit for bromides at the stack using M26 is ~0.04 ppm. At the detection limit, it would be very difficult to determine what the accurate speciation may be. The NC TPER level for bromine of 0.054 lb/hr is about 0.003 ppm for Marshall [Unit 4] (assume 700 MWe), well below the 0.04 ppm detection limit for bromides via M26. In addition, two EPRI reports (not yet published) support this statement and show bromides at the stack to be below detection limits by all practical purposes. These reports have not been officially published and are confidential at this time.” After reviewing the above information, DAQ concludes that the formation/emission of bromine (Br2) is not expected at the stack conditions and thus, “modification” provision in 2Q .0700 is not triggered. Thus, NC air toxics requirements do not apply to the proposed project involving CaBr 2 spray-application. For PAC, the company states that the associated MSDSs do not list any air toxics. It adds that while the MSDSs indicate that thermal composition (burning) may produce formaldehyde, the PAC is not burned; therefore there is no release of formaldehydes or ethylene. In addition, it stated that although the PAC could be injected either before or after the air preheater, it intends to inject the PAC after the air preheater (approximate temperature 290 oF), and there would no combustion in this ductwork. DAQ believes that the injection of PAC in the ductwork after the air preheater is not expected to create emissions of formaldehyde, and therefore, it concludes that NC air toxics regulation does not apply to the mercury control study involving PAC injection. Finally, regarding the construction and operation of a new emergency generator (100 kW) to be located at the Marshall facility landfill, as stated above, the facility has been modeled for emissions of ammonia, cadmium, and nickel, as per the current permit stipulation Section 2.1 A. 10.a. Based on the rule revisions as discussed above, the facility now must make an evaluation of all NC regulated toxics expected from this generator, and all permitted sources (combustion and non-combustion) and all insignificant activities, if emitting the same pollutants emitted by the new generator. As per the current DAQ policy, the permit applications received by DAQ prior to air toxics rule revisions effective date of July 10, 2010 will be processed and the permit revisions will be issued with compliance schedules using the provision in 2Q .0709 “Demonstrations”. In brief, the compliance schedule will include requirements of submittal of modeling protocol and the complete permit 7 application including facility-wide evaluation of air toxic emissions. This permit revision for Marshall Steam station will include such compliance schedule. 8. Facility Emissions Review The following is an emission summary for the facility wide emissions. Actual emissions are 2009 actual emissions as included in the I-BEAM. The estimate for potential emissions is not available. Pollutant Actual Emissions tons/yr PM PM-10 PM-2.5 SO2 NOx CO VOC Single HAP (HCl) Aggregate HAP 1,386 1,324 1,230 4,571 9,744 3,176 145 166 198 9. Stipulation Review The following describes the changes to be performed to the current permit 03676T46: Old Page No. (03676T46) New Page No. (03676T47) Condition No. 4 4 Section 1 Table 7 7 Section 2.1A. 9 9 Section 2.1 A. Table - 20 Section 2.1 A.14. and 15. - 35 Section 2.1 J. - 39 Section 2.2.B.2. Changes Include control devices for Unit 4 boiler: systems for spray-applying calcium dibromide (ID No. CDU4CaBr2(Temp)) and powdered activated carbon (ID No. CD-U4ActC(Temp)). Also, include new generator (ID No. ES-37(EmGenLF)). Revise the source descriptor for Unit 4 boiler to include the following control devices: systems for spray-applying calcium dibromide (ID No. CD-U4CaBr2(Temp)) and powdered activated carbon (ID No. CD-U4ActC(Temp)). Revise the Table to include the applicability for 2Q .0317 for both PSD avoidance for PM/PM10 and NA NSR Avoidance for PM2.5. Include these new requirements under 2Q .0317 for both PSD avoidance for PM/PM10 and NA NSR Avoidance for PM2.5. Include all applicable requirements for this new generator (ID No. ES-37(EmGenLF)). Include the new requirement for facility-wide air toxic demonstration under 2Q .0709. 10. Conclusions, Comments, and Recommendations PE seal is not required for the proposed sorbent injection systems because these are trial studies. If the permit is issued for the permanent systems, PE seal will be required. 8 Local zoning consistency is not required for the proposed sorbent injection systems, because they are to be located at a facility, which is not a “new facility” nor the facility can be deemed “an expansion of an existing facility”. The draft permit was sent to MRO for review and comments on September 3, 2010. The regional office did not review the draft permit. The draft permit was sent to the Permittee for review on September 3, 2010. The company commented on September 8th the monitoring requirements under both PSD and NA NSR avoidance, and the compliance schedule with respect to air toxics. The specific company comments and the DAQ response are as follows: Company Comment 1: “The wording for the PSD avoidance condition differs in the draft permit from what is discussed in the permit review document. The permit review says PM emissions "attributable to" bromide and carbon addition shall be less than 15 tons (for PSD) and 10 tons (for non-attainment NSR). The draft permit says PM emissions "when" adding bromide and carbon shall be less than 10 and 15 tons. The difference in this wording is that "when" implies that the total includes existing ash emissions as well as any new bromide or carbon emissions. "Attributed to" makes it clear that we will only count the new emissions.” DAQ Response: Agreed. This change will be performed. Company Comment 2: “The calculations above are incomplete. The calculation above yields a lb/hr emission rate not a tons/yr estimate. Hours of operation when injecting the product must be factored into the calculation. We do not understand where the 0.00095 lb/mmBtu factor is derived for activated carbon, based on the calculations we submitted. Again, the study is a short-term, 2 week study where PSD thresholds cannot be exceeded. We are not seeking permit conditions for a permanent arrangement as the scope could change based on the study findings. As such monthly records requirements and semi-annual reporting seems very odd. Why not simply state that we must keep records and submit a single report at the end of the study to document the PSD thresholds were not exceeded.” DAQ Response: The equations to calculate PM10 or PM2.5 emissions will be removed. Nevertheless, the 0.00095 lb/million Btu emission rate due to injection of PAC is derived as follows: 7.5 lbs/hr controlled emission rate x 0.9 (90 % of PM is PM10 and PM2.5 is 100% of PM10) / 7,110 million Btu/hr As discussed in the permit application, the use of 62,000 lbs of CaBr2 and 150,000 lbs of PAC during the mercury control evaluation studies can result in approximately 0.77 tons of PM10 emissions, less than the significant threshold of 15 tons/yr. Because, the emissions of PM10 during the evaluation studies are not expected to reach this threshold level, DAQ will require monitoring for the use of both CaBr 2 and PAC, and it will not require monitoring for emissions of PM10. Finally, the Permittee will be required to keep records for the amounts of the usage of these sorbents and will also be required to report the same within 30 days of the completion of the studies. Company Comment 3: “We do not understand the inclusion of this condition as written. The NC Air Toxics provision says that we must submit a protocol to do air toxics modeling for all combustion sources within 15 days of DAQ issuing the permit. That makes little sense since we just completed a full air toxics modeling demonstration for the facility 9 in January 2009, including emissions from existing diesel engines for any pollutant that exceeded the TPER. There were no issues identified relative to the air toxics associated with diesel engines. No additional pollutants are emitted that will exceed TPER as a result of this 1 new small new engine. Other than arsenic and chromium (which are not associated with diesel engines), all pollutants modeled were found to be at less than 2% of the AALs. The new diesel engine will emit insignificant additional quantities of these modeled pollutants. “We respectfully request this issue get additional review by the DAQ Permits Section Management. Couldn’t DAQ help expedite the toxics review by allowing us to use the previous 2009 model as a sufficient to demonstration of compliance, for the addition of one small diesel engine given we have submitted a recent model showing the facility is nowhere near the AALs. The small diesel emergency engine would not be a significant contribution to facility-wide air toxics to call the recent modeling demonstration into question. Does the Permits Section not have authority/discretion to require an updated toxics modeling analysis periodically when there have been noteworthy changes at a facility. If DAQ disagrees, at a minimum we request more time than 15 days following permit issuance to submit a modeling protocol. This is clearly not enough time and would require preparation of a protocol well before the permit is final. Thirty days should be quick enough. Likewise, 90 days is more reasonable for submittal of the toxics modeling analysis.” DAQ Response: DAQ will include 15 days from the date the revised permit is issued to require submitting the modeling protocol and 120 days for submittal of air toxic evaluation from the date the protocol is approved. This engineer recommends issuing the revised permit. 10 Attachment C Region: Mooresville Regional Office County: Catawba NC Facility ID: 1800073 Inspector’s Name: Tonisha Dawson Date of Last Inspection: 07/31/2013 Compliance Code: 3 / Compliance - inspection Permit Applicability (this application only) NORTH CAROLINA DIVISION OF AIR QUALITY Air Permit Review Permit Issue Date: 03/05/2014 Facility Data Applicant (Facility’s Name): Duke Energy Carolinas, LLC - Marshall Steam Station SIP: NSPS: NESHAP: PSD: PSD Avoidance: NC Toxics: 112(r): Other: Facility Address: Duke Energy Carolinas, LLC - Marshall Steam Station 8320 East Highway 150 Terrell, NC 28682 SIC: 4911 / Electric Services NAICS: 221112 / Fossil Fuel Electric Power Generation Facility Classification: Before: Title V After: Title V Fee Classification: Before: Title V After: Title V Contact Data Facility Contact Authorized Contact George Tolbert EHS Professional (336) 623-0415 900 South Edgewood Road Eden, NC 27288 Brian Weisker General Manager (828) 478-7600 8320 East Highway 150 Terrell, NC 28682 Application Data Technical Contact William Horton Senior Environmental Specialist (980) 373-3226 526 South Church Street (EC13K) Charlotte, NC 28202 Application Number: 1800073.13A Date Received: 04/19/2013 Application Type: Modification Application Schedule: TV-Minor Existing Permit Data Existing Permit Number: 03676/T49 Existing Permit Issue Date: 01/15/2013 Existing Permit Expiration Date: 08/31/2015 Total Actual emissions in TONS/YEAR: CY SO2 NOX VOC CO PM10 Total HAP Largest HAP 2012 4599.15 11027.63 105.42 2305.47 1070.66 141.29 116.7382 [Hydrogen chloride (hydrochlori] 2011 3852.98 9086.27 132.55 2898.98 1809.95 179.07 147.1396 [Hydrogen chloride (hydrochlori] 2010 3657.90 9608.90 145.52 3177.09 1295.51 192.06 160.6485 [Hydrogen chloride (hydrochlori] 2009 4570.86 9744.37 145.22 3175.69 1324.23 198.42 165.9019 [Hydrogen chloride (hydrochlori] 2008 6174.76 13234.28 149.90 3237.13 7151.50 190.50 154.0190 [Hydrogen chloride (hydrochlori] Review Engineer: Ed Martin Review Engineer’s Signature: Comments / Recommendations: Issue 03676/T50 Permit Issue Date: 03/05/2014 Permit Expiration Date: 08/31/2015 Date: 03/05/2014 1 I. Purpose of Application: Duke Energy is requesting a permit modification to allow permanent use of various alkaline-based fuel additives (e.g. Coal Treat 300, 500 and 600) at a maximum rate of 7 pounds per ton of coal on an as-needed basis to reduce the formation of sulfur trioxide in the boiler which in turn reduces condensable particulate emissions in the form of sulfuric acid mist and also to reduce boiler slagging. Duke is testing these additives when burning various blends of Central and Northern Appalachian and Illinois Basis coals in preparation to meet the Utility MATS rule. They originally requested written approval to conduct temporary coal testing using the additives in a letter dated October 5, 2011, and were given approval to use the additives at Allen, Belews Creek, Cliffside and Marshall through the end of 2012 in DAQ’s letter dated November 8, 2011; and approval extending the test period through the end of 2013 was given in DAQ’s letter dated August 22, 2013. Duke submitted this application (1800073.13A) in April 2013for long-term use of the additives; however, processing the application was delayed due to workload and the permit could not be issued before the end of the extended test period (December 31, 2013) as Duke expected. Therefore, Duke requested another extension of the test period to allow further testing until the application could be processed to revise the permit permanently, and DAQ approved extending the testing through the end of 2014 in a letter dated December 18, 2013. This approval also included the use of trona, which had been approved through December 31, 2013 in an email dated August 26, 2013 (Ed Martin to Bill Horton, cc J. Evans and D. van der Vaart). The additives are drip- or spray-applied to the coal on the conveyor belts. No equipment or control devices require permitting. These additives have been approved for use on other facilities as follows: Duke’s Roxboro Plant was initially given email approval in June 2009 to conduct a trial injection of Mg(OH)2 (magnesium hydroxide or milk of magnesia) as a fuel additive and was permitted to use Mg(OH)2 in September 2010. Later in February 2011, approval was given by letter to use more generic alkaline-based fuel additive products (CoalTreat 300, 500, 600) deemed equivalent to Mg(OH)2, and the use of the more generic additive was recently added to the Roxboro permit (Permit No. 01001T48, issued February 7, 2014). Duke’s Mayo Plant was permitted in December 2010 to use some of the same additives as Duke is now requesting to use. Edgecombe Genco’s Plant was given approval in March 2010 to conduct a trial using magnesium hydroxide slag modifier (Coal Treat 300). This is a minor permit modification pursuant to rule 15A NCAC 2Q .0515. The permit shield described in General Condition R does not apply to these changes. Public notice of the draft permit is not required. No new regulations apply for this change. II. Permit Changes: The following changes were made to the Duke Energy Carolinas LLC- Marshall Air Permit No. 03676T49: Page No. Cover 3-6 Section 7 -Section 1, table of emission sources Section 2.1.A 50-58 Section 3 Change Amended permit numbers and dates. Added the use of alkaline-based fuel additive for Units 1-4 (with footnote ***). Added the use of alkaline-based fuel additive to equipment description for Units 1-4. Updated General Provisions with the most recent revision (version 3.6). 2 III. Facility Description Duke Power’s Marshall Steam Station is an electric utility that generates electrical power. The Marshall Steam Station is permitted for four coal/No. 2 fuel oil-fired electric utility boilers (ID Nos. ES-1, ES-2, ES3, ES-4) and various supporting equipment. IV. Summary of Changes to Emission Sources and Control Devices The equipment description changes for the above modifications are as follows (changes in bold): Page No. Emission Source ID No. Emission Source Description 7, 43, 48 CD-1c (U1SNCR) ES-1 CAM One No. 2 fuel oil/coal-fired electric utility boiler (4,230 million Btu per hour heat input) equipped with a low NOx concentric firing system, separated overfire air/lowered fired low-NOx technologies (SOFA/LOFIR), and alkaline-based fuel additive*** Unit 1 7, 44, 48 One No. 2 fuel oil/off-specification oil/coal-fired electric utility boiler (4,230 million Btu per hour heat input) equipped with a low NOx concentric firing system, separated overfire air/lowered fired low-NOx technologies (SOFA/LOFIR), and alkaline-based fuel additive*** Unit 2 ES-3 CAM One No. 2 fuel oil/off-specification oil/coal-fired electric utility boiler 3 Control Device Description Selective non-catalytic reduction (SNCR) NOx reduction system* CD-2 One flue gas conditioning system consisting of an integral sulfur trioxide ash conditioner* CD-2a Anhydrous ammonia injection ash conditioning system (20 ppm maximum injection rate)* CD-3 One cold-side electrostatic precipitator (267,720 square feet of plate area) CD-U1/2 FGD Wet flue gas desulfurization system consisting of spray tower absorber (approximately 165 gal/min limestone slurry injection rate) CD-4c (U2SNCR) ES-2 CAM 7, 45, 48 Control Device ID No. Selective non-catalytic reduction (SNCR) NOx reduction system* CD-5 One flue gas conditioning system consisting of an integral sulfur trioxide ash conditioner* CD-5a Anhydrous ammonia injection ash conditioning system (20 ppm maximum injection rate)* CD-6 One cold-side electrostatic precipitator (267,720 square feet of plate area) CD-U1/2 FGD Wet flue gas desulfurization system consisting of spray tower absorber (approximately 165 gal/min limestone slurry injection rate) CD-7c (SCR) Selective catalytic reduction (SCR) NOx reduction system* Emission Source ID No. Page No. Emission Source Description (7,110 million Btu per hour heat input) equipped with a low NOx concentric firing system, separated overfire air/lowered fired low-NOx technologies (SOFA/LOFIR), and alkaline-based fuel additive*** Control Device ID No. CD-8 One flue gas conditioning system consisting of an integral sulfur trioxide ash conditioner* CD-8b (FGC) Anhydrous ammonia injection ash conditioning system (20 ppm maximum injection rate)* CD-9 (ESPnew) One cold-side electrostatic precipitator (768,108 square feet of plate area) CD-U3 FGD Wet flue gas desulfurization system consisting of spray tower absorber (approximately 165 gal/min limestone slurry injection rate) System for spray-applying calcium bromide on coal** Unit 3 7, 46, 48 CDU4CaBr2 (Temp) CD-11c (U4SNCR) ES-4 CAM One No. 2 fuel oil/coal-fired electric utility boiler (7,110 million Btu per hour heat input) equipped with a low NOx concentric firing system, separated overfire air/lowered fired low-NOx technologies (SOFA/LOFIR), and alkaline-based fuel additive*** Control Device Description CD-12 Selective non-catalytic reduction (SNCR) NOx reduction system* One flue gas conditioning system consisting of an integral sulfur trioxide ash conditioner* CD-12B (NH3FGC) Anhydrous ammonia injection ash conditioning system (20 ppm maximum injection rate)* CD-U4ActC (Temp) System for injecting powdered activated carbon** CD-13 (ESPnew) One cold-side electrostatic precipitator (768,108 feet of plate area) CD-U4 FGD Wet flue gas desulfurization system consisting of spray tower absorber (approximately 165 gal/min limestone slurry injection rate) Unit 4 *** Alkaline-based fuel additive may be used on an as-needed basis not to exceed 7 pounds per ton of coal burned. Fuel additives shall not contain any toxic air pollutants listed in 15A NCAC 2Q .0711. Fuel additive products not equivalent to those specified in Application 1800073.13A are not allowed without permit modification. The use of alkaline-based fuel additive is listed as a minor modification per 15A NCAC 2Q .0515. The compliance certification as described in General Condition P is required. Unless otherwise notified by NC DAQ, the affected terms of this permit (excluding the permit shield as described General Condition R) for this source shall become final on May 4, 2014. Until this date, the affected permit terms herein reflect the proposed operating language that the Permittee shall operate this source under pursuant to 15A NCAC 2Q .0515(f). V. Emission and Regulatory Evaluation Duke has stated in the original October 5, 2011 request to use the additives and in an email from Bill Horton dated February 10, 2014, that the use of the additives does not result in a physical change or change 4 in the method of operation since the boilers had the ability to accommodate coal with sorbents/anti-slag additives before January 6, 1975. DAQ concludes that, based on Duke’s statement, neither PSD nor NSPS regulations apply as discussed below: PSD Applicability Under PSD regulation §51.166(b)(2)(i), a major modification means “ any physical change in or change in the method of operation of a major stationary source that would result in significant emissions increase.” Provision §51.166(b)(2)(iii)(e)(1) allows an exemption such that a physical change or change in the method of operation shall not include the use of an alternative fuel or raw material by a stationary source which the source was capable of accommodating before January 6, 1975. Therefore, this exemption applies and the use of the additives is not a major modification under PSD. Even though Duke states the change is not a physical change or change in the method of operation, they have provided conservative calculations that show emissions of filterable PM increase somewhat due to the addition of the additive, but emissions of condensable PM (H 2SO4) decrease to more than offset the filterable PM increase, resulting in an overall reduction of total PM. NSPS Applicability Under NSPS regulation §60.14(a), “… any physical or operational change to an existing facility which results in an increase in the emission rate to the atmosphere of any pollutant to which a standard applies shall be considered a modification.” However, under §60.14(e)(4), if the facility was designed to accommodate an alternate fuel or raw material under the facility’s construction specifications prior to the date of any applicable NSPS standard, it shall not considered to be a modification under NSPS. Therefore, this exemption applies and the use of the additives is not considered a modification under NSPS. VI. Other Requirements PE Seal A PE seal is not required since the application does not involve control systems in accordance with 2Q .0112. Zoning A zoning consistency is not required since there is no expansion of the facility. Fee Classification The facility fee classification before and after this modification will remain as “Title V”. VII. Recommendations Issuance is recommended. The draft permit was sent to Bill Horton at Duke on February 17, 2014 for review. Duke had one comment to include the use of the additives in the Section 2.1.A equipment description in addition to having it in the Section 1 table. This was done. The permit was also sent to Tonisha Dawson at MRO for comment on February 19, 2014. No comments were received from MRO. 5 Attachment D ATTACHMENT D 2D .1100 TAP Emissions Review engine emission factors engine horsepower small <600 engine emission factors NG emission factors large >600 hr/yr Ammonia Hydrazine Hydrochloric Acid Hydrofluoric Acid Sulfuric Acid Arsenic Unlisted Compounds (ASC-Other) Beryllium Metal (Unreacted) Cadmium Metal (Unreacted) Chromium VI Manganese Unl. Compounds (MNC-Other) Mercury Vapor Nickel Metal Acetaldehyde Acrolein Benzene Benzyl chloride Di[Bis](2-Ethylhexyl)phthalate Carbon disulfide Chlorobenzene Chloroform Cresol (p-) Ethylene Dibromide (Dibromoethane (1,2-) Dichlorobenzene (1,3-) Dichlorobenzene (1,4-) Hexane (n-) Xylene (m/p) Methyl chloroform Methylene chloride Methyl isobutyl ketone Phenol Styrene Toluene Trichlorofluoromethane Vinyl chloride Xylene (o-) Dioxin and Dioxin-like Compounds Benzo(a)pyrene Methyl ethyl ketone formaldehyde (lb/HP-hr) (lb/HP-hr) NA NA NA NA NA 0.000000028 0.000000021 0.000000021 0.000000021 0.000000042 0.000000021 0.000000021 5.37E-06 6.48E-07 6.53E-06 NA NA NA NA NA 0.000000028 0.000000021 0.000000021 0.000000021 0.000000042 0.000000021 0.000000021 1.76E-07 5.52E-08 5.43E-06 2.86E-06 1.97E-06 2.00E-06 1.35E-06 1.32E-09 8.26E-06 5.52E-07 lb/mmBtu 8.36E-03 Coal Unit 1 Combustion Emission Factor Unit 2 Unit 3 Unit 4 Emergency Emergency Emergency Water Pump Generator Air (ES-26) (ES-35) Compressor (ES-36) Coal Storage Ash Storage and Handling and Handling both models both models both models both models 2008 model 2008 model 2008 model 2008 model mmBtu/hr mmBtu/hr mmBtu/hr mmBtu/hr 0.1327 4230 4230 7110 7110 500 8760 8760 8760 8760 lb/yr Test Data Test Data Test Data Test Data EPRI Test Data Test Data Test Data Test Data / EPA Test Data Test Data Test Data 5.55E-01 EPRI EPRI EPRI EPRI EPRI EPRI EPRI EPRI EPRI EPRI EPRI EPRI EPRI EPRI EPRI EPRI EPRI EPRI EPRI EPRI EPRI EPRI EPRI EPRI EPRI EPRI na lb/yr lb/yr lb/yr lb/yr 137.8 0.0 3082.96 296.25 33,104.6 36.59 1.16 5.51 2.29 40.19 24.45 105.13 110.9 65.9 135.2 9.7 124.8 38.1 5.5 27.7 38.1 90.1 34.7 38.1 17.0 28.4 21.1 124.8 79.7 114.4 24.3 58.9 30.2 25.31 15.3 0.254 0.1 107.5 137.8 0.0 3082.96 296.25 33,104.6 36.59 1.16 5.51 2.29 40.19 24.45 105.13 110.9 65.9 135.2 9.7 124.8 38.1 5.5 27.7 38.1 90.1 34.7 38.1 17.0 28.4 21.1 124.8 79.7 114.4 24.3 58.9 30.2 25.31 15.3 0.254 0.1 107.5 231.1 0.0 5182.00 497.96 85,622.2 61.51 1.94 9.26 3.85 67.56 41.10 176.71 186.5 110.7 227.3 16.3 209.8 64.1 9.3 46.6 64.1 151.5 58.3 64.1 28.6 47.8 35.5 209.8 134.0 192.3 40.8 99.1 50.7 42.54 25.6 0.427 0.1 180.6 231.1 0.0 5182.00 497.96 85,622.2 61.51 1.94 9.26 3.85 67.56 41.10 176.71 186.5 110.7 227.3 16.3 209.8 64.1 9.3 46.6 64.1 151.5 58.3 64.1 28.6 47.8 35.5 209.8 134.0 192.3 40.8 99.1 50.7 42.54 25.6 0.427 0.1 180.6 0.02 0.01 0.54 0.05 0.02 1.55 0.28 0.03 0.34 2008 model New Em. Emergency Emergency Emergency Diesel Gen. Water Pump Generator Air (ES-37) (ES-26) (ES-35) Compressor (ES-36) steam jenny (I-74) 2010 model 2010 model 2010 model 2010 model 2010 model 4.04E-01 2.44E-02 4.91E-01 8.82E-02 2.76E-02 2.72E+00 2.51E-01 7.85E-02 7.74E+00 1.41E+00 8.50E-02 1.71E+00 0.00E+00 0.00E+00 5.62E-03 1.501E-01 6.755E-01 1.924E+00 5.237E-01 2.865E-03 6.76E-01 1.92E+00 5.24E-01 2.86E-03 na lb/yr lb/yr 0.08 0.02 0.00 0.02 0.26 0.00 0.15 2.66 0.74 0.06 0.83 8.86 0.03 5.06 0.20 0.56 0.15 7.20E-03 0.14 0.38 0.10 1.50E-01 6.76E-01 1.92E+00 5.24E-01 2.86E-03 0.00 0.00 0.00 4.95E-05 0.00E+00 0.00E+00 1.73E-04 0.00E+00 0.00 0.00 0.00 6.21E-01 2.76E-01 7.86E-01 2.17E+00 8.67E-01 ATTACHMENT D 2D .1100 TAP Emissions Review column C LP Portable Generator (I106) 2010 model Gasoline Gasoline Tank & Tank & Dispensing (I- Dispensing (I12) 13) 2010 model Facility Total Facility Total largest (either (2008 analysis) (2010 analysis) 2008 or 2010) 2010 model 9.72E+00 9.04E+00 2.26E+00 0.00E+00 0.00E+00 4.89E+00 0.00E+00 0.00E+00 2.59E+00 3.115E-01 1.484E+00 7.871E-01 3.12E-01 1.48E+00 7.87E-01 3.12E-01 1.48E+00 7.87E-01 6.60E-06 0.00E+00 0.00E+00 6.42E+01 0.00E+00 0.00E+00 737.80 0.00 16529.92 1588.42 237453.60 198.94 6.96 29.60 13.13 224.62 131.13 568.89 595.15 353.26 727.43 52.00 669.20 204.40 29.60 148.60 204.40 483.20 186.00 204.40 91.20 152.40 113.20 669.20 427.40 613.40 130.20 316.91 161.80 135.70 82.42 1.36 0.40 576.20 0.00 737.80 0.00 16529.92 1588.42 237453.60 196.20 6.20 29.54 12.28 215.50 131.10 563.68 606.67 362.46 747.40 52.00 669.20 204.40 29.60 148.60 204.40 483.20 186.00 204.40 91.20 158.26 113.20 669.20 427.40 613.40 130.20 321.72 161.80 135.70 87.66 1.36 0.40 576.20 68.89 737.80 0.00 16529.92 1588.42 237453.60 198.94 6.96 29.60 13.13 224.62 131.13 568.89 606.67 362.46 747.40 52.00 669.20 204.40 29.60 148.60 204.40 483.20 186.00 204.40 91.20 158.26 113.20 669.20 427.40 613.40 130.20 321.72 161.80 135.70 87.66 1.36 0.40 576.20 68.89 Column A difference %difference 2008-2010 2008-2010 0.00 0.00 0.00 0.00 0.00 2.74 0.76 0.06 0.85 9.12 0.03 5.21 11.52 9.20 19.97 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5.86 0.00 0.00 0.00 0.00 0.00 4.81 0.00 0.00 5.24 0.00 0.00 0.00 68.89 0.00 #DIV/0! 0.00 0.00 0.00 1.38 10.92 0.20 6.47 4.06 0.02 0.92 1.94 2.60 2.75 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.84 0.00 0.00 0.00 0.00 0.00 1.52 0.00 0.00 6.36 0.00 0.06 0.00 #DIV/0! New Em. Diesel Gen. (ES-37) Emergency Water Pump (ES-26) Emergency Generator (ES-35) Emergency Air Compressor (ES-36) steam jenny (I-74) calculated calculated calculated calculated calculated 100kW= 134 HP hp hp hp LP Portable Generator (I106) Facility Total (CALCULATED) under current permit scenario and policy Column B difference (current - max of 2008 or 2010) % difference = (current 2008)/2008 calculated 0.1327 mmBtu/hr=52 hp small large large small small 134 1000 2848 525 10 small 52 500 500 500 500 500 500 lb/yr lb/yr lb/yr lb/yr lb/yr lb/yr lb/yr diff % diff lb/day lb/hr 0 0 0 0 0 1.88E-03 1.41E-03 1.41E-03 1.41E-03 2.81E-03 1.41E-03 1.41E-03 3.60E-01 4.34E-02 4.38E-01 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1.92E-01 0 0 1.34E-01 0 8.82E-05 0 0.55342 0 0 0 0 0 1.40E-02 1.05E-02 1.05E-02 1.05E-02 2.10E-02 1.05E-02 1.05E-02 8.80E-02 2.76E-02 2.72E+00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 9.85E-01 0 0 6.75E-01 0 0 0 0.276 0 0 0 0 0 3.99E-02 2.99E-02 2.99E-02 2.99E-02 5.98E-02 2.99E-02 2.99E-02 2.51E-01 7.86E-02 7.73E+00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2.81E+00 0 0 1.92E+00 0 0 0 0.786048 0 0 0 0 0 7.35E-03 5.51E-03 5.51E-03 5.51E-03 1.10E-02 5.51E-03 5.51E-03 1.41E+00 1.70E-01 1.71E+00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 7.52E-01 0 0 5.24E-01 0 3.45E-04 0 2.16825 0 0 0 0 0 1.40E-04 1.05E-04 1.05E-04 1.05E-04 2.10E-04 1.05E-04 1.05E-04 2.68E-02 3.24E-03 3.27E-02 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1.43E-02 0 0 9.98E-03 0 6.58E-06 0 0.0413 0 0 0 0 0 7.28E-04 5.46E-04 5.46E-04 5.46E-04 1.09E-03 5.46E-04 5.46E-04 1.40E-01 1.68E-02 1.70E-01 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 7.44E-02 0 0 5.19E-02 0 3.42E-05 0 0.21476 737.80 0.00 16529.92 1588.42 237453.60 199.00 7.01 29.65 13.18 224.72 131.18 568.94 597.07 353.54 745.28 52.00 669.20 204.40 29.60 148.60 204.40 483.20 186.00 204.40 91.20 154.67 113.20 669.20 427.40 613.40 130.20 323.09 161.80 135.70 87.39 1.36 0.40 576.20 4.04 0.00 0.00 0.00 0.00 0.00 0.06 0.05 0.05 0.05 0.10 0.05 0.05 9.60 8.92 2.12 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.59 0.00 0.00 0.00 0.00 0.00 1.38 0.00 0.00 0.27 0.00 0.00 0.00 64.85 0.000 #DIV/0! 0.000 0.000 0.000 0.032 0.685 0.162 0.364 0.043 0.037 0.008 -1.607 -2.523 -0.284 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 -2.319 0.000 0.000 0.000 0.000 0.000 0.426 0.000 0.000 -0.310 0.000 0.061 0.000 -1605.216 2.021 0.000 45.287 4.352 650.558 0.545 0.019 0.081 0.036 0.616 0.359 1.559 1.636 0.969 2.042 0.142 1.833 0.560 0.081 0.407 0.560 1.324 0.510 0.560 0.250 0.424 0.310 1.833 1.171 1.681 0.357 0.885 0.443 0.372 0.239 0.004 0.001 1.579 0.011 0.084 0.000 1.887 0.181 27.107 0.023 0.001 0.003 0.002 0.026 0.015 0.065 0.068 0.040 0.085 0.006 0.076 0.023 0.003 0.017 0.023 0.055 0.021 0.023 0.010 0.018 0.013 0.076 0.049 0.070 0.015 0.037 0.018 0.015 0.010 0.000 0.000 0.066 0.000
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