STATE OF MICHIGAN Rick Snyder, Governor DEPARTMENT OF ENVIRONMENTAL QUALITY AIR QUALITY DIVISION CONSTITUTION HALL ● 525 WEST ALLEGAN STREET ● P.O. BOX 30260 ● LANSING, MICHIGAN 48909-7760 www.michigan.gov/air PUBLIC PARTICIPATION DOCUMENTS For Frontier Kinross, LLC Kincheloe, Michigan PERMIT APPLICATION NUMBER 166-09A May 16, 2011 Frontier Kinross, LLC Permit No. 166-09A Page 1 May 16, 2011 FACT SHEET May 16, 2011 Purpose and Summary The Michigan Department of Environmental Quality (MDEQ), Air Quality Division (AQD), is proposing to act on Permit to Install (PTI) application No. 166-09A from Frontier Kinross, LLC (Frontier). The permit application is for the proposed installation and operation of a 40 million gallon per year wood-to-ethanol facility with a 535 MMBtu/hr bubbling fluidized bed biomass boiler to provide electricity, steam, and hot water for the facility. The proposed project is subject to permitting requirements of the Department’s Rules for Air Pollution Control. Prior to acting on this application, the AQD is holding a public comment period and a public hearing, if requested in writing, to allow all interested parties the opportunity to comment on the proposed PTI. All relevant information received during the comment period and hearing if held, will be considered by the decision maker prior to taking final action on the application. Background Information On September 15, 2010, after a public comment period and public hearing, the AQD approved Permit to Install No. 166-09 authorizing Frontier to install and operate a wood-to-ethanol facility to produce up to 42.5 million gallons per year of fuel grade ethanol (denatured with 5% gasoline). On April 18, 2011, Frontier submitted Permit to Install Application No. 166-09A for a variety of changes to the facility design, including replacing the six natural gas fired boilers with a single biomass boiler. The AQD reviewed Permit to Install Application No. 166-09A as a brand new facility rather than a modification of the currently permitted facility. Proposed Facility and Present Air Quality Frontier is proposing to receive whole logs and debark and chip them. The bark will be stored in a silo and either burned in the on-site boiler or sold as a product. Frontier is also proposing to receive wood chips. The wood chips will be stored in silos and mechanically conveyed to a pretreatment process to prepare them for fermentation. The treated feedstock will then be transferred to the fermentation system. The total wood throughput is expected to be 562,100 bone dry short tons per year. The product of the fermentation system will be distilled to separate the ethanol from most of the water and the residual solids. The distilled ethanol/water mixture will go through molecular sieves to produce pure ethanol, which will be mixed with a denaturant (gasoline or natural gasoline) to produce denatured ethanol (95% ethanol, 5% denaturant). There are six storage tanks; three 120,000 gallon tanks for pure ethanol, two 600,000 gallon tanks for denatured ethanol, and one 45,000 gallon tank for denaturant. The denatured ethanol will be loaded into tanker trucks or rail cars for shipment to the final customers. The proposed permit limits combined ethanol and denaturant throughput to 42.5 million gallons per year and limits denaturant throughput to 2.5 million gallons per year. The water and solids from the distillation process will be separated using centrifuges and a multi-effect evaporator train. The water from the evaporator will be treated in a methanator that will produce methane and biosolids, which will be burned in the on-site boiler. The centrifuged Frontier Kinross, LLC Permit No. 166-09A Page 2 May 16, 2011 solids, primarily lignin, will be transferred to the steam/hot water heated dryer where the water content will be reduced to approximately 50% moisture. The dried lignin will be stored in a silo and either burned in the on-site boiler or sold as a product. Frontier is proposing to generate electricity, steam, and hot water at the facility using a 535 MMBtu/hr bubbling fluidized bed boiler that will burn bark from the debarking process, lignin from the lignin dryer, methane from the methanator, and biomass from the methanator. The boiler will also use natural gas for start up. Sand, limestone, and ash associated with the boiler will be stored in silos. Ash will be loaded into trucks and transported off-site. Frontier is also proposing to use dry cooling at the facility. Therefore, there will be no air emissions from cooling towers. Frontier is proposing to have a 1,500 HP natural gas fired emergency generator and a 500 HP natural gas fired emergency firewater pump. The facility will be located in Chippewa County which is considered an attainment area for all criteria pollutants. Key Permit Review Issues Staff evaluated the proposed project to identify all state rules and federal regulations which are, or may be, applicable. The tables in Appendix 1 summarize these rules and regulations. Prevention of Significant Deterioration (PSD) Regulations – The PSD major source threshold is 250 tons per year for each of the criteria pollutants unless the source is one of 28 source categories listed in the PSD regulations, then the PSD major source threshold is 100 tons per year. Frontier is not one of the 28 listed source categories and the criteria pollutant emission limits in the proposed permit are less than 250 tons per year. Therefore Frontier is a minor source and is not subject to PSD review. Table A summarizes the applicability of the PSD regulations to the criteria pollutants emitted from the proposed facility. Federal NSPS Regulations – New Source Performance Standards (NSPS) were established under Title 40 of the Code of Federal Regulations (40 CFR) Part 60. The proposed denaturant storage tank and denatured ethanol storage tanks are subject to the NSPS for Volatile Organic Liquid Storage Vessels, 40 CFR Part 60, Subpart Kb. The proposed boiler is subject to the NSPS for Industrial-Commercial-Institutional Steam Generating Units, 40 CFR Part 60, Subpart Db, which applies to boilers with heat inputs of more than 100 MMBtu/hr. The proposed natural gas fired emergency engines are subject to the NSPS for Stationary Spark Ignition Internal Combustion Engines, 40 CFR Part 40 Subpart JJJJ. The proposed facility is also subject to the NSPS for Volatile Organic Compound (VOC) emissions from leaks in equipment handling organic chemicals in 40 CFR Part 60, Subpart VVa for. Federal NESHAP Regulations - National Emission Standards for Hazardous Air Pollutants (NESHAP) were established under Section 112 of the Clean Air Act and are found at 40 CFR Part 61 or Part 63. NESHAPS can apply to major sources, area sources, or both. On February 21, 2011 EPA pre-published 40 CFR 63.7480, “National emission standards for hazardous air pollutants for new and existing industrial/commercial/institutional boilers and process heaters,” (Boiler MACT). Frontier is a new source under the Boiler MACT Frontier Kinross, LLC Permit No. 166-09A Page 3 May 16, 2011 (40 CFR Part 63 Subpart JJJJJJ) and the boiler will be subject to those standards upon startup. EPA has also published the NESHAP for Stationary Reciprocating Internal Combustion Engines, 40 CFR Part 63 Subpart ZZZZ (RICE MACT). The proposed natural gas fired emergency engines will be subject to the RICE MACT. Rule 224 TBACT Analysis – Rule 224 applies to new, or modified, emission units that emit a Toxic Air Contaminant (TAC) and which do not have a corresponding emission standard promulgated under Section 112 of the Clean Air Act or which emit TACs that are VOCs and are in compliance with Best Available Control Technology (BACT) requirements. TBACT does not apply to Frontier’s proposed boiler because Frontier is subject to the Boiler MACT. TBACT also does not apply to Frontier’s proposed emergency engines because Frontier is subject to the RICE MACT Each emission unit emitting VOCs is expected to be in compliance with Rule 702 BACT requirements. TBACT does not apply to emission units emitting VOCs. Rule 225 Toxics Analysis – Michigan’s Rules for Air Pollution Control require the ambient air concentration of TACs be compared against health-based screening levels. AQD staff reviewed Frontier’s air quality modeling and evaluation of TAC impacts. The review found that all TACs are either exempt from, or will comply with, the requirements of Rule 225. Rule 226(a) exempts TACs that have low emission rates and are neither carcinogens nor high concern TACs from the Rule 225 health-based screening level requirement. Table B lists those TACs that are “exempt” from Rule 225. Rule 227(1)(a) provides a simple method for demonstrating compliance with Rule 225 based on the TAC’s emission rate and health based screening level(s). Table C summarizes the results of the Rule 227(1)(a) Allowable Emission Rate analysis. For those TACs not meeting the Rule 226(a) exemption or the Rule 227(1)(a) Allowable Emission Rates, computer dispersion modeling was used to demonstrate compliance with Rule 225. Table D summarizes the results of the dispersion modeling analysis. In addition to the TACs in Tables B, C, and D, Frontier proposes to emit several TACs that do not have established screening levels. For each of these TACs, the AQD Toxics Unit evaluated the available toxicological information and the ambient impact from dispersion modeling and determined that the predicted ambient impacts will comply with Rule 225. Table E lists these TACs and their ambient impacts. Rule 702 VOC Emissions – This rule requires an evaluation of the following four items to determine what will result in the lowest maximum allowable emission rate of volatile organic compounds (VOC): a. BACT or a limit listed by the department on its own initiative b. New Source Performance Standards (NSPS) c. VOC emission rate specified in another permit d. VOC emission rate specified in the Part 6 rules for existing sources Frontier Kinross, LLC Permit No. 166-09A Page 4 May 16, 2011 The Rule 702 evaluation determined that the following control and operational requirements meet Rule 702(a) for the associated equipment: Wet scrubber with sodium bilsulfite injection for the wood chip pretreatment, the yeast propagation tank, the fermentation tanks, the ethanol distillation and purification system, the centrifuges, and the evaporator train. Wet scrubber with sodium bilsulfite injection and an operating temperature of 185°F or less for the lignin dryer. A flare for loading tanker trucks and rail cars with ethanol. Only railcars dedicated to transporting ethanol can be loaded at the facility. Internal floating roofs for the ethanol storage tanks. Good combustion practices and a VOC emission limit of 0.010 lb/MMBTU for the boiler. Frontier must develop and implement a malfunction abatement plan. The Rule 702 evaluation determined that compliance with NSPS Kb, including installing internal floating roofs, meets Rule 702(b) for the denaturant and denatured ethanol storage tanks. Criteria Pollutants Modeling Analysis - Computer dispersion modeling was performed to predict the impacts of the criteria pollutant emissions. The emissions from the proposed facility were evaluated for compliance with the applicable National Ambient Air Quality Standards (NAAQS) and the applicable PSD increments. The NAAQS are intended to protect public health. The PSD increments are intended to allow industrial growth in an area, while ensuring that the area will continue to meet the NAAQS. The analysis demonstrated that the potential emissions will not exceed the NAAQS or PSD increments. Tables F, G, and H summarize the results of the criteria pollutant modeling. Key Aspects of Draft Permit Conditions Emission Limits – The draft permit conditions include a variety of emission limits. Criteria pollutants are limited to ensure the PSD increments and NAAQS will be met and that the facility will be a minor source under the PSD regulations. Acrolein emissions are limited to ensure compliance with Rule 225. Hazardous air pollutant emissions, including acetaldehyde and acrolein, are limited to ensure that the facility will be an “area source” of hazardous air pollutants (HAPs). Usage Limits – The natural gas heat input to the boiler is limited to 245 MMBtu/hr so that the boiler is not a PSD major source. The draft permit also limits the facility wide natural gas usage, the amount of lignin that can be produced, the ethanol and denaturant throughput, and the wood throughput. These limits are needed to make various emission limits enforceable. Process/Operational Restrictions – The draft permit limits several operational parameters of the proposed facility, including: Requiring the lignin dryer to operate at 185°F or less and limiting the moisture content of the lignin produced to not less than 30%. Wood chips cannot be pneumatically conveyed to the wood chip silos. The denaturant storage tank (Tank 6) must be equipped with a submerged fill pipe. Frontier Kinross, LLC Permit No. 166-09A Page 5 May 16, 2011 Only railcars that are dedicated to transporting ethanol, including denatured ethanol, can be loaded at the facility. The only fuels that can be burned in the boiler are natural gas, biogas, and biomass which is defined as bark, lignin, and biomass from the methanator. The emergency engines are limited to 100 operating hours each per year for maintenance and a total of 500 operating hours per engine per year for any reason. The draft permit requires Frontier to develop and implement a malfunction abatement plan, an odor management plant, a fugitive dust control plan, and a plan that describes how emissions will be minimized during all startups, shutdowns and malfunctions of the boiler. Federal Regulations –The proposed facility is subject to several New Source Performance Standard (NSPS). The NSPS for Volatile Organic Liquid Storage Vessels, at 40 CFR Part 60 Subpart Kb, will be met by equipping the denaturant storage tank and the denatured ethanol storage tanks with internal floating roofs. The NSPS for IndustrialCommercial-Institutional Steam Generating Units, at 40 CFR Part 60 Subpart Db, will be met by limiting the annual capacity factor of natural gas to 10% for the boiler, equipping the boiler with a continuous opacity monitoring system or bag leak detection system, and limiting the PM emission rate to 0.030 lb/MMBTU. The NSPS for Stationary Spark Ignition Internal Combustion Engines, at 40 CFR Part 40 Subpart JJJJ, will be met by meeting the VOC, CO, and NOx emission limits for the engines. The NSPS for VOC emissions from leaks in equipment handling organic chemicals, at 40 CFR Part 60 Subpart VVa, will be met by implementing leak detection and repair. The proposed boiler is subject to the National Emission Standards for Hazardous Air Pollutants (NESHAP) for Industrial, Commercial, and Institutional Boilers Area Sources, 40 CFR Part 63 Subpart JJJJJJ. Frontier will comply with the standard by limiting the visible emissions and PM emissions from the boiler. The proposed natural gas fired emergency engines are subject to the NESHAP for Stationary Reciprocating Internal Combustion Engines, 40 CFR Part 63 Subpart ZZZZ. Frontier will comply with the standard by complying with NSPS JJJJ. Emission Control Device Requirements – The draft permit includes several emission control device requirements to reduce the emissions from the facility: A wet scrubber with sodium bisulfite injection is required to reduce VOC, HAP, and TAC emissions from the wood chip pretreatment, the yeast propagation tank, the fermentation tanks, the ethanol distillation and purification system, the centrifuges, the evaporator train, and the lignin dryer. Internal floating roofs are required to reduce VOC and TAC emissions from the ethanol, denaturant, and denatured ethanol storage tanks. A flare is required to reduce VOC and TAC emissions from loading tanker trucks and rail cars with ethanol. Fabric filters are required to reduce particulate emissions from wood chipping, the bark hog, wood chip receiving, the sand silo, the limestone silo, the ash silo, and ash loadout. Lignin storage and loadout are required to be conducted inside enclosures to reduce particulate emissions. A selective non-catalytic reduction (SNCR) system is required to reduce nitrogen oxides (NOx) emissions from the boiler. A fabric filter is required to reduce particulate emissions from the boiler. Frontier Kinross, LLC Permit No. 166-09A Page 6 May 16, 2011 The fabric filter also reduces emissions of acid gases from the boiler, such as sulfur dioxide and hydrogen chloride, by capturing alkaline wood ash that helps to neutralize acid gas emissions. Combustion controls will be used on the boiler to minimize carbon monoxide (CO), VOC, and organic TAC and HAP emissions. Testing Requirements – The draft permit includes several emission testing requirements, including: VOC and acetaldehyde emissions from the equipment controlled by the wet scrubber. Acetaldehyde and acrolein emissions from the bark hog and wood chipping. PM, PM10, PM2.5, SO2, and VOC emissions from the boiler within 180 days of startup and every five years thereafter. CO emissions from the boiler unless a CO continuous emission monitor is installed. Repeat testing may be required depending on the initial test results. Acetaldehyde, acrolein, benzene, chlorine, formaldehyde, hydrogen chloride, methanol, methyl isobutyl ketone, n-hexane, and styrene emissions from the boiler. Repeat testing may be required depending on the initial test results. Monitoring Requirements – The draft permit includes several monitoring requirements, including: The wet scrubber water and sodium bisulfite flow rates. The lignin dryer operating temperature. The pressure drop of each fabric filter. Monthly visible emissions checks of the bark hog and wood chipping vent, wood chip receiving, each of the storage silos, ash loadout, and lignin loadout. Continuous Emission Rate Monitoring System (CERMS) for NOx and oxygen or carbon dioxide from the boiler. CERMS for CO from the boiler, unless Frontier elects to conduct stack testing for the CO emissions from the boiler. Install a continuous opacity monitoring system (COMS) or a bag leak detection system on the boiler. Conclusion Based on the analyses conducted to date, staff concludes that the proposed project would comply with all applicable state and federal air quality requirements. Staff also concludes that this project, as proposed, would not violate the federal National Ambient Air Quality Standards or the state and federal PSD increments. Based on these conclusions, staff has developed draft permit terms and conditions which would ensure that the proposed facility design and operation are enforceable and that sufficient monitoring, recordkeeping, and reporting would be performed by the applicant to determine compliance with these terms and conditions. If the permit application is deemed approvable, the delegated decision maker may determine a need for additional or revised conditions to address issues raised during the public participation process. If you would like additional information about this proposal, please contact Mr. Andrew Drury, AQD, at 517-335-3107. Frontier Kinross, LLC Permit No. 166-09A Table A - Applicability of PSD Regulations to Criteria Pollutants PSD Major PSD Total Facility Source Subject Significant Pollutant Emissions Threshold to PSD? Emission (tpy) (tpy) Rate (tpy Particulate Matter (PM) 90 tpy 250 No 25 PM less than or equal to 10 151.9 250 No 15 microns diameter (PM10) PM less than or equal 2.5 151.5 250 No 10 microns diameter (PM2.5) Sulfur Dioxide (SO2) 53.4 250 No 40 Carbon Monoxide (CO) 234 250 No 100 Oxides of Nitrogen (NO2) 218.6 250 No 40 Volatile Organic 83.2 250 No 40 Compounds (VOC) Lead** 0.048 0.6 No 0.6 * There are no PSD increments or NAAQS for PM or VOC ** Lead was evaluated as part of the toxic air contaminant review Page 7 May 16, 2011 Subject to Modeling? N/A* Yes Yes Yes Yes Yes N/A* No Table B - Toxic Air Contaminants Meeting the Rule 226(a) Exemption From Rule 225 Toxic Air Contaminant CAS Toxic Air Contaminant CAS 1,1-dichloroethane 75-34-3 cymene-p 99-87-6 1,2,3-trimethylbenzene 526-73-8 Cyclopentane 287-92-3 1,2,4-trimethylbenzene 95-63-6 di-n-butyl phthalate 84-74-2 1,1,1-trichloroethane 71-55-6 Diethylphthalate 84-66-2 1,2 dichloropropane (propylene dichloride) 78-87-5 dimethyl sulfide 75-18-3 1,3,5-trimethylbenzene 108-67-8 Fluoranthene 206-44-0 2-chlorophenol 95-57-8 Hexanal 66-25-1 2-methylnaphthalene 91-57-6 Isobutyraldehyde 78-84-2 2,2,4-trimethylpentane 540-84-1 methyl ethyl ketone 78-93-3 2,4-dinitrophenol 51-28-5 Methylcyclohexane 108-87-2 2,5-dimethyl benzaldehyde 5779-94-2 Molybdenum 7439-98-7 Acenaphthene 83-32-9 4-nitrophenol 100-02-7 Acenaphthylene 208-96-8 Nonane 111-84-2 Acetone 67-64-1 Octane 111-65-9 Acetophenone 98-86-2 Phenanthrene 85-01-8 alpha-pinene 80-56-8 Phosphorus 7723-14-0 Anthracene 120-12-7 Propionaldehyde 123-38-6 Biphenyl 92-52-4 Pyrene 129-0-0 bis(2-chloroisopropyl) ether 108-60-1 Silver 7440-22-4 butylbenzylphthalate 85-68-7 p-tolualdehyde 104-87-0 Butyraldehyde 123-72-8 Toluene 108-88-3 carbon disulfide 75-15-0 trichlorofluoromethane 75-69-4 Chlorobenzene 108-90-7 Valeraldehyde 110-62-3 Chloroethane 75-00-3 Vanadium 7440-62-2 Copper 7440-50-8 Xylene 1330-20-7 Frontier Kinross, LLC Permit No. 166-09A Page 8 May 16, 2011 Table C - Toxic Air Contaminant Allowable Emission Rates From Rule 227(1)(a) Allowable Frontier Percent of Averaging TAC Emission Rate Emission Rate Allowable Time (lb/ Avg. Time) (lb/ Avg. Time) Emission Rate (%) 1 hour 0.0108 0.00068 6.3 1,1,2,2-tetrachloroethane Month 0.8 0.51 63 1 hour 0.0324 0.00051 1.6 1,1,2-trichloroethane Month 2.4 0.38 16 1 hour 0.108 0.000422 <1 1,3-dichloropropene 24 hour 2.4 0.01 4 Month 8 0.31 4 1 hour 0.1 0.00805 8 Barium 8 hour 0.1 0.0644 64 1 hour 0.162 0.000476 <1 Benzaldehyde Month 16 0.354 2.2 1 hour 22.4 0.881 4 Beta-pinene 8 hour 22.4 7.1 31 1 hour 0.108 2.64 x 10-5 <1 Bis(2-ethylhexyl)phthalate Month 8 0.02 <1 1 hour 0.486 0.00813 1.7 Bromomethane Month 36 6 17 1 hour 476 0.523 <1 n-Butane 8 hour 476 4 <1 1 hour 0.216 0.00101 <1 Carbazole Month 16 0.751 4.7 1 hour 0.216 0.00828 3.8 Chloroform Month 16 6.16 39 1 hour 0.1 0.00857 8.6 Chromium (III) 8 hour 0.1 0.07 69 1 hour 0.004 0.000299 7.5 Cobalt 8 hour 0.004 0.0024 60 1 hour 0.0756 0.000294 <1 Dichlorobenzene 24 hour 36 0.00706 <1 Month 5.6 0.219 3.9 1 hour 380 14.9 3.9 Ethanol 8 hour 380 119 31 1 hour 1.62 0.0178 1 Ethylbenzene 24 hour 120 0.427 <1 Month 120 13.24 11 1 hour 7 0.193 2.8 Fluorene 24 hour 16.8 4.63 28 1 hour 35 0.7621.03 2.2 Hexane 24 hour 84 18 22 1 hour 2.1 0.59 28 Hydrogen Chloride Month 800 442 55 1 hour 0.25 0.0084 3.4 Methyl Bromide 24 hour 0.6 0.02 34 Frontier Kinross, LLC Permit No. 166-09A TAC Methyl Chloride Methyl Isobutyl Ketone Methanol Methylene Chloride Pentane Pentachlorophenol Perchloroethylene Phenol Selenium Tin Trichloroethylene 2,4,6-trichlorophenol Total PAH* Page 9 May 16, 2011 Averaging Time 1 hour 24 hour Month 1 hour 24-hour 1 hour 1 hour Month 1 hour 8 hour 1 hour 24 hour Month 1 hour Month 1 hour 1 hour 8 hour 1 hour 8 hour 1 hour Month 1 hour Month 1 hour Month Allowable Emission Rate (lb/ Avg. Time) 0.864 10.8 64 150 360 3.25 1.08 80 354 354 0.00486 2.4 0.36 0.918 68 0.6 0.04 0.04 0.4 0.4 0.324 24 0.162 12 0.00027 0.02 Frontier Emission Rate (lb/ Avg. Time) 0.00644 0.15 4.79 0.238 5.71 1.69 0.0816 60.7 0.679 5 1.43 x 10-5 0.000343 0.011 0.0107 7.96 0.16 8.58 x 10-5 0.00069 0.000258 0.00206 0.00842 6.26 6.14 x 10-6 0.00457 6.48 x 10-6 0.00482 Percent of Allowable Emission Rate (%) <1 1.4 7.5 <1 1.6 52 7.6 76 <1 1.5 <1 <1 3 1.2 12 27 <1 1.7 <1 <1 2.6 26 <1 <1 2.4 24 * Total polycyclic aromatic hydrocarbon (PAH) weighted as Benzo(a)pyrene, including the following compounds: Benz(a)anthracene, Benzo(a)pyrene, Benzo(b)fluoranthene, Benzo(k)fluoranthene, Chrysene, Dibenzo(a,h)anthracene, Indeno(1,2,3cd)pyrene Frontier Kinross, LLC Permit No. 166-09A Page 10 May 16, 2011 Table D - Toxic Air Contaminant Impacts From Dispersion Modeling Frontier Percent of Averaging ITSL IRSL SRSL TAC Impact Screening Time (µg/m3) (µg/m3) (µg/m3) (µg/m3) Level (%) 1,3-butadiene 24-hr 2 0.26 13% 1,3-butadiene Annua; 0.03 0.0052 17% Acetaldehyde 24-hr 9 1.3 15 Acetaldehyde Annual 0.5 0.086 17 Acrolein 1-hr 5 2.3 45 Acrolein Annual 0.02 0.0185 93 Ammonia 24-hr 100 0.3 <1 Antimony 24-hr 0.2 0.0006 <1 Arsenic Annual 0.0002 0.000013 6.7 Benzene 24-hr 30 0.41 1.4 Benzene Annual 0.1 0.017 17 -6 Beryllium 24-hr 0.02 2.7 x 10 <1 Beryllium Annual 0.0004 2.45 x 10-7 <1 Cadmium Annual 0.0006 4.24 x 10-6 <1 Carbon Tetrachloride Annual 0.17 0.0073 4.3 Chlorine 24-hr 0.3 0.017 5.8 Chromium (VI) 24-hr 0.1 0.0016 <1 Chromium (VI) Annual 0.000083 0.0000026 3.1 Cumene Annual 0.1 6.97 x 10-5 <1 2,4-dinitrotoluene Annual 0.009 3.59 x 10-6 <1 Ethylene Dichloride Annual 0.04 6.06 x 10-5 <1 Formaldehyde Annual 0.08 0.043 53 Gasoline Annual 20 6.22 31 Hexachlorobenzene Annual 0.002 3.93 x 10-6 <1 Isopropanol 24-hr 220 0.15 <1 -4 Lead* 24-hr 1.5 8.64 x 10 <1 Manganese Annual 0.0042 0.00018 <1 Mercury** 24-hr 0.3 5.17 x 10-5 <1 Naphthalene 24-hr 3 0.074 2.5 Naphthalene Annual 0.08 0.015 18 Nickel Annual 0.0042 0.0003 7 Styrene 24-hr 1000 0.08 <1 Styrene Annual 1.7 0.007 <1 Thallium 24-hr 0.2 0.0001 <1 Total Dioxin/Furans and Annual 2.3 x 10-8 7.5 x 10-9 33 Dioxin like PCBs as 2,3,7,8-TCDD Total PCBs Annual 0.002 9.11 x 10-8 <1 Vinyl Chloride 24-hr 100 0.015 <1 Vinyl Chloride Annual 0.11 0.003 2.7 * The lead impact on a 24 hour averaging time was compared to the quarterly NAAQs. Given the low lead emission rate and low impact, further evaluation of the lead emissions in not warranted. ** The mercury impact was compared to the inhalation based screening level. Mercury emissions from the source are also less than five pounds per year. Emissions at this rate are not expected to present concerns calling for an enhanced review. Frontier Kinross, LLC Permit No. 166-09A Page 11 May 16, 2011 Table E - Toxic Air Contaminants With Acceptable Impacts Toxic Air Contaminant CAS Acceptable Impact (µg/m3) 1,2-dibromoethylene 540-49-8 6.53 x 10-4 2-chloronapthalene 91-58-7 2.67 x 10-8 4,6-dinitro-2-methylphenol 534-52-1 7.99 x 10-6 Alpha-terpineol 10482-56-1 5.24 x 10-5 Benzoic acid 65-85-0 4.43 x 10-4 Crotonaldehyde 123-73-9 1.15 x 10-4 Iron 15438-31-0 1.10 x 10-2 2-monochlorobiphenyl 2051-60-7 2.42 x 10-9 2-nitrophenol 88-75-5 3.00 x 10-6 Perylene 198-55-0 1.08 x 10-8 Potassium 7440-09-7 2.15 x 10-3 Sodium 7440-23-5 4.00 x 10-3 Strontium 7440-24-6 1.16 x 10-4 Titanium 7440-32-6 4.64 x 10-6 o-Tolualdehyde 529-20-4 8.35 x 10-5 Yttrium 7440-65-5 3.48 x 10-6 Zinc 7440-66-6 1.30 x 10-4 Pollutant PM2.5 PM2.5 PM10 PM10 SO2 SO2 SO2 SO2 NO2 NO2 CO CO Pollutant PM10 PM10 NO2 Table F - Preliminary Modeling Impacts PSD Significant Predicted Impact Averaging Time Level (µg/m3) (µg/m3) 24-hr 1.2 14.27 Annual 0.3 0.73 24-hr 5 30.1 Annual 1 2.18 1-hour 7.9 4.39 3-hr 25 3.67 24-hr 5 1.23 Annual 1 0.13 1-hr 5 126.38 Annual 1 2.25 1-hr 2,000 252.74 8-hr 500 137.54 Additional Modeling? Yes Yes Yes Yes No No No No Yes Yes No No Table G - PSD Increment Analysis PSD Increment Predicted Impact Averaging Time (µg/m3) (µg/m3) Annual 17 2.18 24-hr 30 19.44 Annual 25 1.69 Percent of Increment (%) 12.81 64.8 6.74 Frontier Kinross, LLC Permit No. 166-09A Page 12 May 16, 2011 Table H - National Ambient Air Quality Standards (NAAQS) Analysis Predicted Impact NAAQS Percent of Pollutant Averaging Time plus Background 3 (µg/m ) NAAQS (%) (µg/m3) PM10 Annual 50 19.18 38 PM10 24-hr 150 50.42 34 PM2.5 Annual 15 8.06 54 PM2.5 24-hr 35 33.24 95 NO2 Annual 100 11.99 12 NO2 1-hr 188 167.61 89 Frontier Kinross, LLC Permit No. 166-09A Page 13 May 16, 2011 Appendix 1 STATE AIR REGULATIONS State Rule R 336.1201 R 336.1205 R 336.1224 R 336.1225 to R 336.1232 R 336.1279 to R 336.1290 R 336.1299(2)(b) R 336.1301 R 336.1331 R 336.1370 R 336.1401 and R 336.1402 R 336.1601 to R 336.1651 R 336.1702 R 336.1801 R 336.1901 Description of State Air Regulations Requires an Air Use Permit for new or modified equipment that emits, or could emit, an air pollutant or contaminant. However, there are other rules that allow smaller emission sources to be installed without a permit (see Rules 336.1279 through 336.1290 below). Rule 336.1201 also states that the Department can add conditions to a permit to assure the air laws are met. Outlines the permit conditions that are required by the federal Prevention of Significant Deterioration (PSD) Regulations and/or Section 112 of the Clean Air Act. Also, the same types of conditions are added to their permit when a plant is limiting their air emissions to legally avoid these federal requirements. (See the Federal Regulations table for more details on PSD.) New or modified equipment that emits toxic air contaminants must use the Best Available Control Technology for Toxics (T-BACT). The T-BACT review determines what control technology must be applied to the equipment. A T-BACT review considers energy needs, environmental and economic impacts, and other costs. T-BACT may include a change in the raw materials used, the design of the process, or add-on air pollution control equipment. This rule also includes a list of instances where other regulations apply and T-BACT is not required. The ambient air concentration of each toxic air contaminant emitted from the project must not exceed health-based screening levels. Initial Risk Screening Levels (IRSL) apply to cancer-causing effects of air contaminants and Initial Threshold Screening Levels (ITSL) apply to non-cancer effects of air contaminants. These screening levels, designed to protect public health and the environment, are developed by Air Quality Division toxicologists following methods in the rules and U.S. EPA risk assessment guidance. These rules list equipment to processes that have very low emissions and do not need to get an Air Use permit. However, these sources must meet all requirements identified in the specific rule and other rules that apply. Adopts by reference the provisions of 40 CFR 63.40 to 63.44 (2002) and 40 CFR 63.50 to 63.56 (2002), the federal hazardous air pollutant regulations governing constructed or reconstructed major sources. Limits how air emissions are allowed to look at the end of a stack. The color and intensity of the color of the emissions is called opacity. The particulate emission limits for certain sources are listed. These limits apply to both new and existing equipment. Material collected by air pollution control equipment, such as dust, must be disposed of in a manner, which does not cause more air emissions. Limit the sulfur dioxide emissions from power plants and other fuel burning equipment. Volatile organic compounds (VOCs) are a group of chemicals found in such things as paint solvents, degreasing materials, and gasoline. VOCs contribute to the formation of smog. The rules set VOC limits or work practice standards for existing equipment. The limits are based upon Reasonably Available Control Technology (RACT). RACT is required for all equipment listed in Rules 336.1601 through 336.1651. New equipment that emits VOCs is required to install the Best Available Control Technology (BACT). The technology is reviewed on a case-by-case basis. The VOC limits and/or work practice standards set for a particular piece of new equipment cannot be less restrictive than the Reasonably Available Control Technology limits for existing equipment outlined in Rules 336.1601 through 336.1651. Nitrogen oxide emission limits for larger boilers and stationary internal combustion engines are listed. Prohibits the emission of an air contaminant in quantities that cause injurious effects to human health and welfare, or prevent the comfortable enjoyment of life and property. As an example, a violation may be cited if excessive amounts of odor emissions were found to be preventing residents from enjoying outdoor activities. Frontier Kinross, LLC Permit No. 166-09A Page 14 May 16, 2011 STATE AIR REGULATIONS State Rule R 336.1910 R 336.1911 R 336.1912 R 336.2001 to R 336.2060 R 336.2501 to R 336.2514 R 336.2801 to R 336.2804 Prevention of Significant Deterioration (PSD) Regulations Best Available Control Technology (BACT) R 336.2901 to R 336.2903 and R 336.2908 Description of State Air Regulations Air pollution control equipment must be installed, maintained, and operated properly. When requested by the Department, a facility must develop and submit a malfunction abatement plan (MAP). This plan is to prevent, detect, and correct malfunctions and equipment failures. A facility is required to notify the Department if a condition arises which causes emissions that exceed the allowable emission rate in a rule and/or permit. Allow the Department to request that a facility test its emissions and to approve the protocol used for these tests. Regulates mercury emissions from any stationary coal-fired electric generating unit (EGU) serving a generator with a nameplate capacity of more than 25 megawatts producing electricity for sale. The program begins January 1, 2015 and contains provisions for existing and new EGUs. Mercury program eligibility provisions and prohibitions, demonstration plans, testing, monitoring, record keeping, and reporting are all part of the rule. The PSD rules allow the installation and operation of large, new sources and the modification of existing large sources in areas that are meeting the National Ambient Air Quality Standards (NAAQS). The regulations define what is considered a large or significant source, or modification. In order to assure that the area will continue to meet the NAAQS, the permit applicant must demonstrate that it is installing the BACT. By law, BACT must consider the economic, environmental, and energy impacts of each installation on a case-by-case basis. As a result, BACT can be different for similar facilities. In its permit application, the applicant identifies all air pollution control options available, the feasibility of these options, the effectiveness of each option, and why the option proposed represents BACT. As part of its evaluation, the Air Quality Division verifies the applicant’s determination and reviews BACT determinations made for similar facilities in Michigan and throughout the nation. Applies to new “major stationary sources” and “major modifications” as defined in R 336.2901. These rules contain the permitting requirements for sources located in nonattainment areas that have the potential to emit large amounts of air pollutants. To help the area meet the NAAQS, the applicant must install equipment that achieves the Lowest Achievable Emission Rate (LAER). LAER is the lowest emission rate required by a federal rule, state rule, or by a previously issued construction permit. The applicant must also provide emission offsets, which means the applicant must remove more pollutants from the air than the proposed equipment will emit. This can be done by reducing emissions at other existing facilities. As part of its evaluation, the AQD verifies that no other similar equipment throughout the nation is required to meet a lower emission rate and verifies that proposed emission offsets are permanent and enforceable. FEDERAL AIR REGULATIONS Citation Section 109 of the Clean Air Act – National Ambient Air Quality Standards (NAAQS) Description of Federal Air Regulations or Requirements The United States Environmental Protection Agency has set maximum permissible levels for seven pollutants. These NAAQS are designed to protect the public health of everyone, including the most susceptible individuals, children, the elderly, and those with chronic respiratory ailments. The seven pollutants, called the criteria pollutants, are carbon monoxide, lead, nitrogen dioxide, ozone, particulate matter less than 10 microns (PM10), particulate matter less than 2.5 microns (PM2.5), and sulfur dioxide. Portions of Michigan are currently non-attainment for either ozone or PM2.5. Further, in Michigan, State Rules 336.1225 to 336.1232 are used to ensure the public health is protected from other compounds. Frontier Kinross, LLC Permit No. 166-09A Page 15 May 16, 2011 FEDERAL AIR REGULATIONS Citation 40 CFR 51 Appendix S Emission Offset Interpretive Ruling 40 CFR 52.21 – Prevention of Significant Deterioration (PSD) Regulations Best Available Control Technology (BACT) 40 CFR 60 – New Source Performance Standards (NSPS) 40 CFR 63 – National Emissions Standards for Hazardous Air Pollutants (NESHAP) Description of Federal Air Regulations or Requirements Appendix S applies during the interim period between nonattainment designation and EPA approval of a SIP that satisfies nonattainment requirements specified in Part D of the Clean Air Act. Appendix S would apply in nonattainment areas where either no nonattainment permit rules apply or where the existing state rules are less stringent than Appendix S. The PSD regulations allow the installation and operation of large, new sources and the modification of existing large sources in areas that are meeting the NAAQS. The regulations define what is considered a large or significant source, or modification. In order to assure that the area will continue to meet the NAAQS, the permit applicant must demonstrate that it is installing BACT. By law, BACT must consider the economic, environmental, and energy impacts of each installation on a case-by-case basis. As a result, BACT can be different for similar facilities. In its permit application, the applicant identifies all air pollution control options available, the feasibility of these options, the effectiveness of each option, and why the option proposed represents BACT. As part of its evaluation, the Air Quality Division verifies the applicant’s determination and reviews BACT determinations made for similar facilities in Michigan and throughout the nation. The United States Environmental Protection Agency has set national standards for specific sources of pollutants. These New Source Performance Standards (NSPS) apply to new or modified equipment in a particular industrial category. These NSPS set emission limits or work practice standards for over 60 categories of sources. The United States Environmental Protection Agency has set national standards for specific sources of pollutants. The National Emissions Standards for Hazardous Air Pollutants (NESHAP) (a.k.a. Maximum Achievable Control Technology (MACT) standards) apply to equipment in a particular industrial category. These NESHAPs set emission limits or work practice standards for over 100 categories of sources. Section 112 of the Clean Air Act In the Clean Air Act, Congress listed 189 compounds as Hazardous Air Pollutants (HAPS). For facilities which emit, or could emit, HAPS above a certain level, one of the following two requirements must be met: Maximum Achievable Control Technology (MACT) 1) The United States Environmental Protection Agency has established standards for specific types of sources. These Maximum Achievable Control Technology (MACT) standards are based upon the best-demonstrated control technology or practices found in similar sources. Section 112g 2) For sources where a MACT standard has not been established, the level of control technology required is determined on a case-by-case basis. Notes: An “Air Use Permit,” sometimes called a “Permit to Install,” provides permission to emit air contaminants up to certain specified levels. These levels are set by state and federal law, and are set to protect health and welfare. By staying within the levels set by the permit, a facility is operating lawfully, and public health and air quality are protected. The Air Quality Division does not have the authority to regulate noise, local zoning, property values, offsite truck traffic, or lighting. These tables list the most frequently applied state and federal regulations. Not all regulations listed may be applicable in each case. Please refer to the draft permit conditions provided to determine which regulations apply.