Michigan Department of Environmental Quality Air Quality Division State Registration Number N6009 RENEWABLE OPERATING PERMIT STAFF REPORT ROP Number MI-ROP-N6009-2012 Sauk Trail Hills Landfill, Inc. SRN: N6009 Located at 5011 S. Lilley Road, Wayne, Canton, Michigan 48188 Permit Number: MI-ROP-N6009-2012 Staff Report Date: April 23, 2012 This Staff Report is published in accordance with Sections 5506 and 5511 of Part 55, Air Pollution Control, of the Natural Resources and Environmental Protection Act, 1994 PA 451, as amended (Act 451). Specifically, Rule 214(1) requires that the Michigan Department of Environmental Quality (MDEQ), Air Quality Division (AQD), prepare a report that sets forth the factual basis for the terms and conditions of the Renewable Operating Permit (ROP). Page: 1 TABLE OF CONTENTS APRIL 23, 2012 STAFF REPORT 3 JUNE 5, 2012, STAFF REPORT ADDENDUM 8 Page: 2 Michigan Department of Environmental Quality Air Quality Division State Registration Number RENEWABLE OPERATING PERMIT N6009 ROP Number MI-ROP-N6009-2012 APRIL 23, 2012 STAFF REPORT Purpose Major stationary sources of air pollutants, and some non-major sources, are required to obtain and operate in compliance with a ROP pursuant to Title V of the federal Clean Air Act of 1990 and Michigan’s Administrative Rules for air pollution control pursuant to Section 5506(1) of Act 451. Sources subject to the ROP program are defined by criteria in Rule 211(1). The ROP is intended to simplify and clarify a stationary source’s applicable requirements and compliance with them by consolidating all state and federal air quality requirements into one document. This report, as required by Rule 214(1), sets forth the applicable requirements and factual basis for the draft permit terms and conditions including citations of the underlying applicable requirements, an explanation of any equivalent requirements included in the draft permit pursuant to Rule 212(5), and any determination made pursuant to Rule 213(6)(a)(ii) regarding requirements that are not applicable to the stationary source. General Information Stationary Source Mailing Address: Sauk Trail Development Landfill, Inc. 5011 S. Lilley Road Canton, Michigan 48188 N6009 562212 Source Registration Number (SRN): North American Industry Classification System (NAICS) Code: Number of Stationary Source Sections: Is Application for a Renewal or Initial Issuance? Application Number: Responsible Official: AQD Contact: Date Permit Application Received: Date Application Was Administratively Complete: Is Application Shield In Effect? Date Public Comment Begins: Deadline for Public Comment: 1 Renewal 201100076 Ralph Dach, General Manager 734-397-4523 Erik A. Gurshaw, Environmental Quality Analyst 313-456-4704 June 20, 2011 June 20, 2011 Yes April 23, 2012 May 23, 2012 Page: 3 Source Description Sauk Trail Hills (STH) Landfill is located just south of Michigan Avenue on Lilley Rd in the township of Canton, County of Wayne. Light to medium industrial areas are located along the northern and eastern property lines with some green space. The nearest residence is located approximately one-quarter mile north of the facility. A Conrail easement runs along the south boundary of the site. The landfill had 10.7 million tons of refuse in place through 2010 and will have 17.35 million tons in place when closed. The STH landfill is classified as a Type II sanitary landfill, which is a Municipal Solid Waste (MSW) landfill. A Type II landfill, according to Act 451, Part 115, Solid Waste Management, is: "A landfill which receives household waste, municipal solid waste incinerator ash or sewage sludge and which is not a land application unit, surface impoundment, injection well, or waste pile. A municipal solid waste landfill also may receive other types of solid waste, such as commercial waste, non-hazardous sludge, conditionally exempt small quantity generator waste, and industrial waste. Such a landfill may be publicly or privately owned." STH Landfill currently accepts sludge, asbestos containing wastes, fly ash, industrial waste, miscellaneous solids, along with municipal household waste. Natural biological processes occurring in landfills convert the waste into leachate and landfill gas. Initially, decomposition is aerobic until the oxygen supply is exhausted. Anaerobic decomposition of buried refuse produces most of the landfill gas. Landfill gas (LFG) consists mainly of methane, carbon dioxide, and non-methane organic compounds (NMOC). NMOC is the primary regulated air pollutant associated with landfill gas generation, which was promulgated as a regulated air pollutant under the New Source Performance Standard, Subpart WWW for MSW landfills (NSPS Subpart WWW). The LFG is collected at the STH Landfill by an active gas collection system. This system consists of horizontal and vertical extraction wells that are installed into the landfill refuse to apply vacuum and create a path for the migration of the LFG. The LFG migrates up through the wells and is combusted in one of two open flares installed in 2012. The open flares replaced a previously existing enclosed flare which was installed in 1998. A temporary open flare was installed in 2011 as an emergency replacement when the existing enclosed flare failed. A performance test was performed on this emergency open flare on September 28, 2011. Two new open flares were installed in 2012 to replace the emergency open flare. The emergency open flare installed in 2011 was then removed. Performance testing on the two open flares was conducted on February 14, 2012. Other equipment present at the facility includes a 318,000-gallon leachate holding tank, a 720 gallon used oil storage tank, two diesel fuel storage tanks each with 1,000 gallons capacity, four identical heating furnaces rated at 80,400 BTU per hour, a 250 gallon used antifreeze storage tank, and three 500 gallon product oil storage tanks. New Source Performance Standards (NSPS), Standards of Performance for MSW Landfills, codified at 40 CFR Part 60 Subpart WWW, are applicable to MSW landfills, which have a permitted capacity of greater than 2.5 million megagrams (or 2.5 million cubic meters) and a construction, reconstruction or modification date after May 30, 1991. STH Landfill began accepting solid waste in 1975. In 1993, the facility received a new permit that expanded the design capacity to greater than 2.5 million cubic meters. Consequently, STH is subject to the standards of 40 CFR 60 Subpart WWW and the provisions of R336.1210. Page: 4 STH Landfill submitted an initial NMOC emission report to the Division on June 10, 1996. The facility submitted a gas collection plan in March 1997. The gas collection and control system was installed and became operational in 1998. Canton Renewables (CR), LLC was issued Permit-To-Install (PTI) Number 98-11 for a high BTU landfill gas compression and treatment facility as STH Landfill. CR, LLC is leasing a parcel of land from STH Landfill to operate this facility. This facility will process LFG generated at STH Landfill and convert it into pipeline quality natural gas. The processed natural gas will be sent to a natural gas pipeline in the area. CR, LLC and STH Landfill have a contractual agreement in which STH Landfill provides LFG to CR’s, LLC high BTU landfill gas processing facility. The contractual and spatial relationship between the two facilities establishes STH Landfill as the controlling entity of the partnership. Therefore, the two facilities are considered to be one stationary source under the definition of stationary source in Michigan Air Pollution Rule 336.1119(r). Based on an agreement between the AQD, STH Landfill, and CR, LLC, the two facilities will be issued two separate ROPs. CR, LLC applied for a modification to PTI Number 98-11 on January 13, 2012, for the addition of a 4200 scfm open flare which will be used to control gas processed by the high BTU facility that does not meet federal pipeline gas specifications. Once PTI Number 98-11 is modified, CR, LLC will apply for an initial ROP for the high BTU gas processing facility. The following table lists stationary source emission information as reported to the Michigan Air Emissions Reporting System (MAERS) in the 2010 submittal. TOTAL STATIONARY SOURCE EMISSIONS Pollutant Carbon Monoxide (CO) Lead (Pb) Nitrogen Oxides (NOx) Particulate Matter (PM) Sulfur Dioxide (SO2) Volatile Organic Compounds (VOCs) Individual Hazardous Air Pollutants (HAPs) ** NMOC (surrogate for HAP per 40 CFR §63.19) Total Hazardous Air Pollutants (HAPs) **As listed pursuant to Section 112(b) of the federal Clean Air Act. Tons per Year 41 NA 24.6 30.2 2.4 14.5 35.1 35.1 In addition to the pollutants listed above that have been reported in MAERS, the potential to emit of Greenhouse Gases in tons per year of CO2e is less than 100,000 tons. CO2e is a calculation of the combined global warming potentials of six Greenhouse Gases (carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride). See Parts C and D in the draft ROP for summary tables of all processes at the stationary source that are subject to process-specific emission limits or standards. Regulatory Analysis The following is a general description and history of the source. Any determinations of regulatory nonapplicability for this source are explained below in the Non-Applicable Requirement part of the Staff Report and identified in Part E of the ROP. Wayne County is currently designated by the U.S. Environmental Protection Agency (USEPA) as a nonattainment area with respect to the PM 2.5 standard. Wayne County is currently designated as attainment/unclassified for all other criteria pollutants. Page: 5 The stationary source is subject to 40 CFR Part 70 because 40 CFR §60.752(c) requires all landfills subject to 40 CFR Part 60 Subpart WWW, with capacities greater than 2.5 million megagrams to apply for a Title V permit. Landfills which have the potential to emit greater than 50 megagrams of NMOC per year are required to install a gas collection and control system. The stationary source is not currently subject to Prevention of Significant Deterioration (PSD) of Title 40 of the Code of Federal Regulations, §52.21, because its potential to emit of each criteria pollutant is less than 100 tons per year. However, modifications at this stationary source may be subject to PSD regulations. The stationary source is subject to the New Source Performance Standards for MSW Landfills promulgated in Title 40 of the Code of Federal Regulations, Part 60, Subparts A and WWW. The stationary source is subject to the Maximum Achievable Control Technology Standards for MSW landfills promulgated in Title 40 of the Code of Federal Regulations, Part 63, Subparts A and AAAA. The stationary source is subject to the National Emission Standard for Hazardous Air Pollutants for asbestos promulgated in Title 40 of the Code of Federal Regulations, Part 61, Subparts A and M. The monitoring conditions contained in the ROP are necessary to demonstrate compliance with all applicable requirements and are consistent with the DEQ's "Procedure for Evaluating Periodic Monitoring Submittals." The stationary source is not subject to the federal Compliance Assurance Monitoring (CAM) rule under Title 40 of the Code of Federal Regulations, Part 64, because the emission limitations or standards for municipal solid waste landfills are covered by 40 CFR Part 60 Subpart WWW and 40 CFR Part 63 Subpart AAAA. Thus, STH Landfill, Inc. is exempt from CAM requirements. Please refer to Parts B, C and D in the draft ROP for detailed regulatory citations for the stationary source. Part A contains regulatory citations for general conditions. Source-wide Permit to Install (PTI) Rule 214a requires the issuance of a Source-wide PTI within the ROP for conditions established pursuant to Rule 201. All terms and conditions that were initially established in a PTI are identified with a footnote designation in the integrated ROP/PTI document. PTIs issued after the effective date of ROP No. MI-ROP-N6009-2007 are identified in Appendix 6 of the ROP. Streamlined/Subsumed Requirements This permit does not include any streamlined/subsumed requirements pursuant to Rules 213(2) and 213(6). Non-applicable Requirements Part E of the draft ROP lists requirements that are not applicable to this source as determined by the AQD, if any were proposed in the application. These determinations are incorporated into the permit shield provision set forth in Part A (General Conditions 26 through 29) of the draft ROP pursuant to Rule 213(6)(a)(ii). Page: 6 Processes in Application Not Identified in Draft ROP The following table lists processes that were included in the ROP application as exempt devices under Rule 212(4). These processes are not subject to any process-specific emission limits or standards in any applicable requirement. Exempt Emission Unit ID DVHEATER-BLDG Description of Exempt Emission Unit Four identical heating furnaces rated at 80,400 BTU per hour. Rule 212(4) Exemption R 336.1212(4)(b) Rule 201 Exemption R 336.1282(b) Draft ROP Terms/Conditions Not Agreed to by Applicant This permit does not contain any terms and/or conditions that the AQD and the applicant did not agree upon pursuant to Rule 214(2). Compliance Status The AQD finds that the stationary source is expected to be in compliance with all applicable requirements as of the effective date of this ROP. Action taken by the DEQ The AQD proposes to approve this permit. A final decision on the ROP will not be made until the public and affected states have had an opportunity to comment on the AQD’s proposed action and draft permit. In addition, the U.S. Environmental Protection Agency (USEPA) is allowed up to 45 days to review the draft permit and related material. The AQD is not required to accept recommendations that are not based on applicable requirements. The delegated decision maker for the AQD is Wilhemina McLemore, Detroit District Supervisor. The final determination for ROP approval/disapproval will be based on the contents of the permit application, a judgment that the stationary source will be able to comply with applicable emission limits and other terms and conditions, and resolution of any objections by the USEPA. Page: 7 Michigan Department of Environmental Quality Air Quality Division State Registration Number RENEWABLE OPERATING PERMIT ROP Number N6009 JUNE 5, 2012, STAFF REPORT ADDENDUM MI-ROP-N6009-2012 Purpose A Staff Report dated April 23, 2012, was developed in order to set forth the applicable requirements and factual basis for the draft Renewable Operating Permit (ROP) terms and conditions as required by R 336.1214(1). The purpose of this Staff Report Addendum is to summarize any significant comments received on the draft ROP during the 30-day public comment period as described in R 336.1214(3). In addition, this addendum describes any changes to the draft ROP resulting from these pertinent comments. General Information Responsible Official: AQD Contact: Mr. Robert Dach, General Manager 734-397-4523 Mr. Erik Gurshaw, Environmental Quality Analyst 313-456-4704 Summary of Pertinent Comments No pertinent comments were received during the 30-day public comment period. Changes to the April 23, 2012, Draft ROP No changes were made to the draft ROP. Page: 8