Jul 29, 2008

Air Permit Status

Permit 0229-02-C is a Covered Source Permit, issued by the Clean Air Branch, State Dept of Health, transferred from Hilo Coast Power Company to Pacific Rim Energy Partners LLC on 7/19/2005; again transferred on 11/30/2007 to Ethanol Research Hawaii, LLC; and again transferred on 10/17/08 to Hu Honua LLC. The "covered source" is the Babcock & Wilcox steam boiler and diesel generator. The fuel covered is coal and diesel.

Any modification to the fuel type, including wood chips, requires a modification process with the Clean Air Branch. The process is a technical review against the federal and state emission guidelines. It is not a review of the merits of the project.

Process requires a 30 day public notice period for public comment. Notices are published in Honolulu and east and west Hawaii papers. There is no modification in process at this time. This information was given to me by Nolan Harrari, engineer supervisor on 7/29/08.

Obtaining a copy of the existing permit is underway.

3 comments:

Ed Johnston said...

We all must keep a look out for that notice in the newspapers.
It is an excellent opportunity for all of us, individually, to comment to a State agency.--Ed Johnston

Anonymous said...

I looked into our files on Pepeekeo, and spoke yesteday with Nolan Hirai, the permitting manager at the Hawaii Department of Health Clean Air Branch, and learned a couple of interesting things. I'll start off with the permit chronology:

An Initial permit was issued in 1999, to burn coal, #2 fuel oil, with emissions exceeding 95 tpy for NOx, PM10, CO, and SO2, permit number 0229-01-C. This initial CSP (title V) permit is effective for 5 years (until 2004). Apparently (I have not confirmed this yet), this facility also has a PSD permit (which means it is a major source of air pollution).

In 2000, a modification was issued to allow the addition of diesel engines, permit number 0229-02-C.

In 2003, the facility submitted an application (as it must do per title V regulations) to renew its CSP (title V permit). By submitting its application in a timely manner, the facility can operate under the existing permit until the CAB issues its renewal permit (this is called an application shield).

HDOH has not issued a renewal permit for the facility. So the application shield is still valid.

In 2008, Pepeekeo, Ethanol Research Hawaii LLC, submitted a renewal application for 0229-02-C, saying that their existing CSP will expire on April 1, 2009. Since they do not have a renewal permit (and Nolan has confirmed this), the application submitted in 2008 should not be processed as a renewal - but as a modification. Nolan already has flagged this issue - his office will not process the Ethanol Research as a renewal, but requires the facility to submit an application for a permit modification. This is where it gets interesting and tricky. Modifications can either be major or minor, depending on the magnitude of emissions. Based on Ethanol Research's potential to emit PSD regulated pollutants (NOx, SO2, PM10, VOC, CO), this facility is a major source of air pollution (it should get a PSD permit if it doesn't already have one), and any changes (like adding biomass to its list of allowed fuels) should trigger major PSD review if the change in emissions resulting from the modification exceeds a certain threshold.

So, the facility cannot burn biomass without getting a permit revision (unfortunately, they can burn coal or fuel oil, legally, because they still have their application shield - of course, coal and fuel oil are not renewable, so to qualify for the renewable tax credits they will have to burn biomass).

It appears HDOH will not do anything to revise their permit until they submit a complete application for a modification. It seems likely the consultants working for the facility will try and call this a minor modification by saying their baseline emissions should be based on emissions from when they historically had operated (and trying to show that their change in emissions is not significant, i.e, it does not trigger a major modification). The change in emissions will determine whether it is classified as major or minor, and that status will determine what they need to do in order to get the permit change through. A major modification will be more stringent, and require, among other things, air quality modeling and a health risk assessment.

Bottom line, they can operate as long as they are in compliance with the terms of the 1999 permit (amended in 2000) because they have the application shield. They cannot operate they way they want to (burning biofuels or biomass) because it is not allowed in that permit. They will need to clear the permit modification hurdle with HDOH (and EPA as the oversight agency) before they can do so.

I sent an email out to a couple of people I've met in EPA's Waste and Water divisions - I haven't heard back yet on who would be good contacts for you there. I'll let you know when I find out.

Please feel free to give me a call if you have questions or just want to talk this through. I'll be in the office for another 2-3 hours. Otherwise, I won't be in again until Monday.

I hope this is helpful,

Anita
415-972-3958

Elaine said...

5/28/09 11:10am: Nolan Harai, engineer at Clean Air Board, says Hu Honua has not submitted any application to modify permit.


Upcoming Meetings

  • HuHonua, 8/13/08
  • Jay Ignacio, Helco 8/14/08
  • Tues 8/5/08 7pm Susan's
  • Mayor Kim Thurs 7/31/2008 1:30 pm
  • Wed 7/16/08 7pm Susan's

About Me

Local environmental activist.