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2018-101 DEC Emissions OverviewDate: August 10, 2018 Report No. 2018-101 INFORMAL STAFF REPORT TO MAYOR AND CITY COUNCIL SUBJECT: The purpose of this report is to provide the City Council with additional information regarding the estimated annual emissions of the Denton Energy Center (DEC) as well as background information on the public health basis of the Texas Commission of Environmental Quality’s (TCEQ) Standard Air Permit process. BACKGROUND: During the June 26, 2018 Council meeting, there were questions asked regarding the DEC’s annual maximum runtime and the public health basis for the TCEQ’s Standard Air Permit allowable emissions. Additionally, a request was made for information about the DEC’s Nitrogen Oxides (NOx), Volatile Organic Compounds (VOC) and Carbon Monoxide (CO) emissions in relation to the yearly emissions estimated for the Dallas - Fort Worth (DFW) 10 county non-attainment area. This report provides a detailed explanation of the factors that dictate the DEC’s runtime, an explanation of the TCEQ’s implementation of the Clean Air Act. A table summarizing and DEC’s emission output to the yearly DFW emissions total is included in this report. DISCUSSION: Congress created the EPA and passed the Clean Air Act (CAA) in 1970. The fundamental goal of the CAA was to improve human health and the environment by reducing air pollutions. The CAA required the EPA to set National Ambient Air Quality Standards (40 CFR part 50) for pollutants considered harmful to public health and the environment. The EPA has granted authority to the TCEQ to carry out the requirements of the CAA in Texas. The DEC operates under a Standard Air Permit that was approved and issued by the TCEQ. The permit lists 7 pollutants along with the maximum authorized emission tonnage that can be emited per year. The table below is an excerpt from the permit: Emission Point No. Source Name Pollutant Authorized Emissions lbs/hr TPY* EP-1 - EP-12 Site Wide Annual Emissions Volital Organic Compounds (VOC) - 48.6 Nitrous Oxides (NOx) - 33.8 Cabon Monoxide (CO) - 96.5 Paticulate Matter less than 10 microns (PM10) - 70 Paticulate Matter less than 2.5 microns (PM2.5) - 70 Sulfur Dioxide (SO2) - 1.75 Ammonia Slip (NH3) - 60.9 *TPY stands for tons per year Date: August 10, 2018 Report No. 2018-101 Permit compliance requires the DEC to generate less than the allowable emissions tonnage shown above. Based on current ERCOT market conditions, the upper operational window of the DEC is approximately 2800 hours per year. This would generate approximately 78% of the allowable tonnage of NOx. The other 6 pollutants would all be under 28% of the allowable TCEQ permit approved tonnages. If ERCOT market conditions changed, the DEC could operate upwards of 5000 hours per year and fully maintain compliance with the TCEQ Air Permit values for all 7 noted quantities (estimate based on 275 total plant starts per year). TCEQ conducted health impact studies, air quality analysis, and dispersion modeling prior to making Standard Air Permits available for electric generating units, such as the DEC. In May 2007, the TCEQ published the ‘Amended Air Quality Standard Permit for Electric Generating Units.’ This document states “Additionally, state and federal permits for combustion units at power plants ranging from 50 to 2000 MW have been reviewed and modeling has shown that even much larger units meet all National Ambient Air Quality Standards (NAAQS) and state standards.” In summary, the TCEQ went through a protectiveness review for the DEC’s standard air permit and determined that the National Ambient Air Quality Standards would be maintained with the issuance of the permit. To meet the request for DEC’s emission output in comparison to DFW estimated emissions, staff performed a simple percentage calculation comparing the Denton Energy Center (DEC) emissions in TPY as estimated by an emissions model (number of start/stops and runtime) for the DEC, to the emissions in the DFW 10 county non-attainment area. The information is summarized in the following table. DFW estimated TPY* DEC TPY** % DEC to DFW NOx 108,306 26 0.024 VOC 152,840 13 0.009 CO 635,665 26 0.004 *Estimated 2017 10 county Dallas-Fort Worth Areas Summary of Anthropogenic Emissions – Presented by Chris Kite, Texas Commission on Environmental Quality, Air Quality Division, at the NCTCOG November 6, 2015 ** Estimated DEC emissions based on 2800 hours of DEC plant operation, 180 cold starts, 25 warm start, and 50 hot starts. Black and Veatch presented lower quantites during June 26, 2018 City Council presentation due to fewer cold starts. Date: August 10, 2018 Report No. 2018-101 Please do not hesitate to contact me if you have any further questions about the operation and associated emissions of the DEC or the approved State of Texas TCEQ permit. STAFF CONTACT: George F. Morrow, DME General Manager (940) 349-8487 George.Morrow@cityofdenton.com