Application for Prevention of Significant Deterioration Permit for the Desert Rock Energy Facility Prepared for: Steag Power, LLC Houston, TX Prepared by: ENSR Corporation February 2004 Desert Rock Energy Facility Application for Prevention of Significant Deterioration Permit Submitted to U. S. Environmental Protection Agency Air Division San Francisco, California Prepared for Steag Power, LLC Three Riverway Suite 1100 Houston, TX 77056 Prepared by ENSR International 1220 Avenida Acaso Camarillo, CA 93012 09417-360-0250 February 23, 2004 TABLE OF CONTENTS 1.0 INTRODUCTION ..................................................................................................................... 1-1 1.1 Project Overview............................................................................................................. 1-1 1.2 Facility Classification....................................................................................................... 1-2 1.2.1 Standard Industrial Classification (SIC) Code........................................................ 1-2 1.2.2 Air Quality Source Designation............................................................................. 1-2 1.3 Document Organization................................................................................................... 1-3 1.4 Applicant Information ...................................................................................................... 1-3 2.0 PROPOSED PROJECT........................................................................................................... 2-1 2.1 Project Location .............................................................................................................. 2-1 2.2 Project Combustion Technology Selection....................................................................... 2-2 2.3 Project Diagrams ............................................................................................................ 2-5 2.4 Process Equipment Description....................................................................................... 2-5 2.4.1 Coal Handling ...................................................................................................... 2-5 2.4.2 Pulverized Coal-fired Boilers ................................................................................ 2-9 2.4.3 Cooling Towers.................................................................................................. 2-10 2.4.4 Auxiliary Boilers ................................................................................................. 2-10 2.4.5 Emergency Diesel Generators and Firewater Pumps .......................................... 2-11 2.4.6 Fuel Oil Supply .................................................................................................. 2-11 2.4.7 Limestone Supply .............................................................................................. 2-11 2.4.8 Hydrated Lime and Activated Carbon Supply...................................................... 2-11 2.4.9 Anhydrous Ammonia Supply .............................................................................. 2-11 2.4.10 Ash Handling ..................................................................................................... 2-11 3.0 REGULATORY SETTING........................................................................................................ 3-1 3.1 Ambient Air Quality Standards and Current Attainment Status.......................................... 3-1 3.2 Prevention of Significant Deterioration (PSD) Requirements............................................. 3-3 3.2.1 Best Available Control Technology ....................................................................... 3-4 3.2.2 Air Quality Monitoring Requirements..................................................................... 3-5 3.2.3 Air Quality Impact Analysis................................................................................... 3-5 3.2.4 Additional Impacts Analyses................................................................................. 3-6 3.2.5 PSD Class I Area Analysis ................................................................................... 3-7 3.3 Good Engineering Practice Stack Height Analysis............................................................ 3-7 3.4 New Source Performance Standards............................................................................... 3-7 3.5 National Emissions Standards for Hazardous Air Pollutants ............................................. 3-8 3.6 Title V – Major Source Operating Permit.......................................................................... 3-8 3.7 Compliance Assurance Monitoring .................................................................................. 3-8 3.8 Acid Rain Provisions ....................................................................................................... 3-9 09417-360-250 i February, 2004 3.9 Risk Management Program............................................................................................. 3-9 4.0 CONTROL TECHNOLOGY EVALUATION .............................................................................. 4-1 4.1 Control Technology Overview.......................................................................................... 4-1 4.1.1 Lowest Achievable Emission Rate........................................................................ 4-1 4.1.2 Top-Down BACT.................................................................................................. 4-1 4.1.3 Previous BACT/LAER Determination for Pulverized Coal-fired Boilers................... 4-2 4.2 BACT for Nitrogen Oxides (NOx) ..................................................................................... 4-3 4.2.1 Pulverized Coal-fired Boilers ................................................................................ 4-3 4.2.2 Auxiliary Boilers ................................................................................................... 4-8 4.2.3 Emergency Diesel Engines .................................................................................. 4-8 4.3 BACT for Sulfur Dioxide .................................................................................................. 4-9 4.3.1 Pulverized Coal-fired Boilers ................................................................................ 4-9 4.3.2 Auxiliary Boilers ................................................................................................. 4-11 4.3.3 Emergency Diesel Engines ................................................................................ 4-12 4.4 BACT for Carbon Monoxide .......................................................................................... 4-12 4.4.1 Pulverized Coal-fired Boilers .............................................................................. 4-12 4.4.2 Auxiliary Boilers ................................................................................................. 4-15 4.4.3 Emergency Diesel Engines ................................................................................ 4-15 4.5 BACT for VOC .............................................................................................................. 4-15 4.5.1 Pulverized Coal-fired Boilers .............................................................................. 4-15 4.5.2 Auxiliary Boilers ................................................................................................. 4-17 4.5.3 Emergency Diesel Engines ................................................................................ 4-17 4.6 BACT for Particulate Matter and PM10............................................................................ 4-17 4.6.1 Pulverized Coal-fired Boilers .............................................................................. 4-17 4.6.2 Auxiliary Boilers ................................................................................................. 4-19 4.6.3 Emergency Diesel Engines ................................................................................ 4-20 4.6.4 Material Handling Sources ................................................................................. 4-20 4.7 BACT for Sulfuric Acid Mist ........................................................................................... 4-20 4.7.1 Pulverized Coal-fired Boilers .............................................................................. 4-20 4.7.2 Auxiliary Boilers and Diesel Generators .............................................................. 4-20 4.8 BACT for Hydrogen Fluoride ......................................................................................... 4-20 4.9 BACT for Lead.............................................................................................................. 4-21 4.10Summary of BACT Emission Levels .............................................................................. 4-21 4.11Maximum Achievable Control Technology (MACT) ........................................................ 4-22 5.0 PROJECT EMISSIONS ........................................................................................................... 5-1 5.1 Criteria Pollutant Emissions............................................................................................. 5-1 5.2 Startup and Shutdown Emissions .................................................................................... 5-2 5.3 Hazardous Air Pollutant Emissions .................................................................................