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HomeMy WebLinkAboutFINAL_Signed_HOR_wo Attachments-Northampton_Compressor_Station Hearing Officer’s Report and Recommendations Northampton Compressor Station Public Hearing November 15, 2017 Garysburg Town Hall Garysburg, NC Public Comment Period: October 10, 2017 to November 20, 2017 Pertaining to Permit Application No. 6600169.15A and Draft Air Permit No. 10466R00 for: Northampton Compressor Station 718 Forest Road, Pleasant Hill, NC, Northampton County Facility ID No. 6600169 Fee Class: Small Hearing Officer Heather Sands, P. E. Permit Engineer Division of Air Quality, Central Office January 31, 2018 (This page is intentionally blank.) Hearing Officer’s Report – Northampton Compressor Station Public Hearing – November 15, 2017 Page 1 of 29 I. Background On September 17, 2015, the North Carolina Department of Environmental Quality (DEQ), Division of Air Quality (DAQ), Raleigh Regional Office (RRO) received an air quality permit application (App. No. 6600169.15A) from Atlantic Coast Pipeline LLC (ACP) to construct and operate the Northampton Compressor Station, a natural gas compressor station at 718 Forest Road, Pleasant Hill, NC, Northampton County. According to their permit application, ACP is planning to construct a natural gas compressor station consisting of natural gas-fired compressor turbines, emergency generators, storage tanks, and associated equipment. The Northampton Compressor Station will provide compression to support a pipeline capacity of 1.5 billion cubic feet of natural gas per day as a part of the Atlantic Coast Pipeline Project. The proposed compressor station will be subject to three federal New Source Performance Standard (NSPS) emission standards, issued under 40 CFR Part 60, Subparts JJJJ, KKKK and OOOOa and one federal National Emissions Standards for Hazardous Air Pollutants (NESHAP), issued under 40 CFR Part 63, Subpart ZZZZ. II. Air Quality Permit Application and Permit Review The DAQ’s mission is “to protect and improve the outdoor air quality of North Carolina.” To accomplish this mission, the DAQ requires industrial facilities to apply for and receive air quality permits, prior to construction and operation of the air pollution sources, to ensure compliance with all applicable federal and State air quality regulations. As such, ACP is required to apply for and receive an air quality permit prior to installing a new natural gas compressor station at 718 Forest Road, in Pleasant Hill, NC, Northampton County. On October 26, 2015, the application requesting an air quality permit for the Northampton Compressor Station site was deemed administratively complete by DAQ. The application was deemed administratively complete and contained the required fees and signatures of the responsible official, a Professional Engineer’s seal, and proof of submission to the Northampton County Manager for a zoning consistency determination. Charles McEachern, P.E., permit coordinator in DAQ’s RRO, reviewed the application submitted by ACP and determined that the facility could comply with all applicable federal and State air quality requirements provided that the specific conditions included in the draft air quality permit are met. Unless the public comments received during the public hearing revealed that the DAQ was in error in its evaluation of the proposed compressor station from an air quality standpoint, the Division is obligated to issue an air quality permit for the Northampton Compressor Station since all indications are that the proposed compressor station can comply with federal and State air quality. III. Notice of Public Hearing After receiving requests for a public hearing, Michael A. Abraczinskas, Director of DAQ, announced that a public hearing would be held in Garysburg, NC. On October 10, 2017, a notice of public hearing was posted on the DEQ website and in five newspapers: The Daily Record in Roanoke Rapids (Halifax County); Lake Gaston Gazette-Observer in Littleton (Halifax County); Roanoke-Chowan News-Herald in Ahoskie (Bertie County); Rocky Mount Telegram in Rocky Mount (Edgecombe County); and News & Observer in Raleigh (Wake County). A Facebook “boost advertisement” was also placed to bring increased visibility to a posting about the public hearing.1 The public hearing was held on November 15, 2017, at the Garysburg Town Hall in Garysburg, NC, and the public comment period was open from October 10 through November 20, 2017. Copies of the draft air quality permit and air permit review were also posted on the DEQ website for public review. Copies of the air quality permit application and related documents were available for public review in the DAQ’s RRO. IV. Overview of Public Comments Received From the numerous comments received during the public comment period, it is apparent that there is considerable concern about the potential impacts on health and property around the location of the proposed Northampton Compressor Station. At the public hearing on November 15, 2017, twenty-nine (29) 1 According to Facebook analytics, the ad reached 4,918 people and generated 460 clicks for additional information. Hearing Officer’s Report – Northampton Compressor Station Public Hearing – November 15, 2017 Page 2 of 29 individuals spoke and a majority was in opposition to the proposed compressor station (11 speakers supported the compressor station, 18 were opposed). Additionally, 3,731 written comments were received during the public comment period. There were 2,934 comments opposing the compressor station and/or pipeline. A total of 797 individuals commented that they supported the DAQ issuing the Northampton Compressor Station an air quality permit or that they support the Atlantic Coast Pipeline, in general. An additional 1,036 comments were received after the November 20, 2017, close of the comment period.2 Of these, 982 were in support of the compressor station and/or pipeline. There were 33 comments opposing the compressor station and 21 comments opposing the pipeline, in general. The late comments were reviewed and it was determined that they would not have an impact on the recommendations in this report. Therefore, those comments received on or after November 21, 2017, will not be further discussed in this report. All comments received during the public comment period, both oral and written, have been evaluated by the Hearing Officer and copies of all written comments are provided in the appendices of this report. Because of the number of comments received, it is neither practical nor efficient to separately address every individual comment in the Hearing Officer’s report. Instead, the comments are grouped below into broader subject categories to more efficiently and effectively address a variety of comments that will ultimately result in the same response. The following is a summary of common or relevant comments paraphrased to get the main points across without repeating the comment verbatim. (NOTE: Commenters are identified by last name. Those marked with a “*” are commenters that spoke at the November 15, 2017, public hearing. These commenters may or may not have also submitted written comments.) A. Comments Regarding Environmental Justice 1. Environmental Justice Review Comment: Several commenters (*Exum, *Taylor, *Grant, *Neal, *Bearden, *Winstead, *Burnette, *Faircloth, Geffner, Wood, Ambrose, Nyland (Lars), Nyland (Lauren), Manigrasso, Scott, Rodgers, Emanuel (Andrea), Wilson, Jenkins, Adams, *Vick, Girolami, Norris, Ellis, Wooten, Runkle, Richmond, Garbutt, Karasik, Weir, Reynolds, Osterbrink, Henderson/WeatherCenter, Form Letter No. 13 Comments, Form Letter No. 2 4 Comments) expressed concerns that an Environmental Justice (EJ) review had not been conducted for the location of the ACP in general and, specifically, the Northampton Compressor Station. In support of their comments, the following points were made: • The planned location for the pipeline, using eminent domain, will run through the mostly rural, low income, economically depressed communities and will disproportionately affect minorities. The community does not have the ability to resist the pipeline and their political power is weak compared to urban areas. • The census block where the compressor station is planned is 79 percent African American and 32 percent of the population is at or below the federal poverty line. These demographics exceed the State average. • DEQ is required by their Environmental Equity Policy and Title VI, the Civil Rights Act, to consider the environmental harm of the pipeline to minorities before approving a compressor station. While it was appreciated that a public hearing was held in Garysburg, more is required to comply with DAQ’s obligations under the Environmental Equity Policy and federal law. According to the Environmental Equity Policy, DAQ should also determine whether there are “special health risks based on the nature of the population” and “assess the cumulative effects of permitted facilities.” • A study called “Fumes Across the Fenceline” by the Clean Air Task Force and the NAACP discusses the environmental inequalities related to minorities and includes a case study of the ACP. According to the report, the overall cancer rate for Northampton County exceeds the State rate. 2 The late comments continue to be received in the email inbox, but for the purposes of this hearing report, this total number of late comments represents those comments received as of December 11, 2017. 3 See Attachment C.4 for the text of Form Letter No. 1. 4 See Attachment C.4 for the text of Form Letter No. 2. Hearing Officer’s Report – Northampton Compressor Station Public Hearing – November 15, 2017 Page 3 of 29 • A health assessment by the Northampton County Health Department shows that the community is unusually susceptible to additional health risks from pollution. The commenter stated that the report shows high rates of asthma and high blood pressure and that the leading causes of death are cancer, heart disease, and respiratory disease. The commenter further stated that these types of health issues would be made worse from the pollution caused by the compressor station. • A door to door survey was conducted in the community and many citizens had not received information about the pipeline. • The compressor station facilitates the development of the ACP and magnifies the pipeline’s significant impacts on communities of color along the route. • A rigorous EJ review was requested before granting the permit. Hearing Officer’s Response to These Comments Many of the comments (e.g., comments related to the route of the pipeline or the site of the compressor station) were not related to the draft air quality permit for the Northampton Compressor Station. These comments are outside the purview of this hearing report and will not be further addressed. However, the Hearing Officer has reviewed the draft air quality permit application and permit review to assess the Environmental Justice issues raised by the commenters with respect to the draft air quality permit. The Northampton Compressor Station is expected to be in compliance with the State and federal air regulations as required by the draft permit. The combustion turbines are subject to NSPS Subpart KKKK. Subpart KKKK has limits on nitrogen oxides (NOX), 25 parts per million by volume (ppmv) at 15 percent oxygen, and sulfur dioxide (SO2), 0.90 pounds per megawatt hour (lb/MWh), gross output or burn fuel which contains total potential sulfur emissions of 0.060 pounds SO2 per million British thermal units (lb/MMBtu), heat input. Subpart KKKK does not have limits for particulate matter (PM), volatile organic compounds (VOC) and carbon monoxide (CO). Due to the inherently low sulfur content of natural gas, no additional control was necessary for the SO2 limits in Subpart KKKK. According to the air permit application, the combustion turbines will be equipped with SoLoNOx dry low NOX combustor technology as well as add-on emission controls, including selective catalytic reduction (SCR) for NOX and an oxidation catalyst for CO and VOC. With the low NOX combustor technology and the proposed SCR, the outlet concentration of NOX is expected to be no more than 5 ppmv at 15 percent oxygen. This level of control is well below the NSPS limit of 25 ppmv at 15 percent oxygen. As stated above, the NSPS does not require the control of VOC and CO. ACP is voluntarily equipping the turbines with add-on controls to reduce VOC and CO emissions. Per vendor estimates, as documented in the application, the oxidation catalyst will reduce CO emissions to less than 5 ppmvd CO at 15 percent oxygen and will reduce VOC emissions (including formaldehyde) by 50 percent. These additional voluntary controls far exceed the federal requirements for gas turbines. Furthermore, even though a public hearing and public comment period are not required for an air quality permit issued under 15A NCAC 02Q .0300, DAQ has engaged the public in the Northampton County community by holding the public hearing on November 15, 2017, and soliciting comments on the draft permit. The DAQ worked with Northampton County to post fliers, make documents available at a public location, and provide a centrally located hearing space. Furthermore, the Department held several listening sessions during August in Nash, Northampton, and Robeson Counties. This outreach far exceeds the average public process for a draft air quality permit for a facility of this size. Therefore, potentially affected groups have had informed opportunities to participate in the process, consistent with the applicable case-specific aspects of DAQ’s Environmental Equity Policy and relevant air permitting statutes and rules. As part of the evaluation of the emissions profile of this facility, DAQ conducted a cumulative review of air quality surrounding the Northampton Compressor Station site. This analysis included a review of current ambient air quality data, air emissions by source category, wind data, satellite-derived air pollution data, Hearing Officer’s Report – Northampton Compressor Station Public Hearing – November 15, 2017 Page 4 of 29 demographic and socioeconomic data, and health study information. DAQ will compile the information reviewed in a separate document that will be part of the record. Additionally, in response to the comment in Section IV.I.3, below, the Hearing Officer has recommended that toxics modeling is likely to have been triggered for this facility and has requested that, if necessary, a modeling analysis be conducted to determine compliance with the Acceptable Ambient Levels (AALs) in 15A NCAC 02D .1104. It is expected, given the level of emissions projected to be emitted from this compressor station, that the analysis will demonstrate compliance with the AALs and will indicate that human health will be protected through the inhalation pathway. Therefore, pending the outcome of the modeling analysis, the Hearing Officer has determined that this permit action has met the requirements of the DEQ’s Environmental Equity policies with respect to the DAQ permitting process and no further action is recommended in terms of evaluating the current draft air quality permit with DEQ’s Environmental Equity policies. 2. Environmental Justice Related to Tribal Governments Comment: Two commenters (*Neal, Hardy) had concerns that DAQ had not conducted an EJ review with respect to Tribal governments. In support of their comments, the following points were made: • The Northampton Compressor Station would be built on ancestral lands of the Haliwa-Saponi Indian Tribe and about 13 miles from the closest section of the Haliwa-Saponi State Designated Tribal Statistical Area. The environmental justice review should consider the effects the compressor station would have on human health of Tribal members. • It would be inappropriate for DAQ to issue a final permit without engaging in a meaningful government-to-government consultation with the Haliwa-Saponi Indian Tribe. Hearing Officer’s Response to These Comments On August 9, 2017, the DEQ met with the tribal governments across North Carolina, including those impacted by the compressor station and the pipeline in general which included the Haliwa-Saponi Tribe. Tribal Governments and the Indian Affairs Commission, especially the Haliwa-Saponi, have been included in Departmental communications regarding the ACP via email. DEQ has made many efforts to engage Tribal leaders and, as discussed in Section IV.A.1, above, this outreach far exceeds the average public process for an air quality permit for a facility of this size. Therefore, Tribes have had informed opportunities to participate in the process, consistent with the applicable case-specific aspects of the DEQ’s Environmental Equity Policy and relevant air permitting statutes and rules. As a result, the Hearing Officer has determined that this permit action has met the requirements of the DEQ Environmental Equity Policy with respect to the DAQ permitting process and no further action is recommended in terms of evaluating the current draft air quality permit with DEQ Environmental Equity Policies. B. Comments Concerning Dust and Odor Controls Comment: Some commenters (*Taylor, *Pair, Ambrose, *Neal, Ellis, Sheline) expressed concerns with the levels of dust and odor controls specified in the draft permit. In support of their comments, the following points were made: • There should be specific plans for dust and odor control instead of complaint driven requirements. The requirement for the facility to avoid causing “substantive complaints” or excessive odors or dust beyond the facility boundary is unenforceable. “Substantive complaints” is not defined in the draft permit. • The draft permit says that the facility “may” be required to submit a dust control plan. This should be a requirement. • There is no monitoring required. • The draft permit contains a requirement for control of odor, prohibiting the company from operating the facility “without implementing management practices or installing and operating odor control Hearing Officer’s Report – Northampton Compressor Station Public Hearing – November 15, 2017 Page 5 of 29 equipment sufficient to prevent odorous emissions from the facility from causing or contributing to objectionable odors beyond the facility’s boundary.” Nothing in the draft permit specifies how the facility will comply with this requirement. • The draft permit should be withdrawn and the Applicant should be required to demonstrate its management practices or control equipment that will prevent odorous emissions from the facility. Hearing Officer’s Response to These Comments The commenters’ claims that the odor and dust control requirement in the draft air quality permit are unenforceable are incorrect. Both of the permit conditions for odor and fugitive dust are standard conditions contained in most of the permits issued by the Division. In each case, the draft permit language notes the applicable standards with which compliance is required. The regulations go further to give the details on how the Division is required to operate and document complaints. In the case of odor, 15A NCAC 02D .1806(g) describes how a determination of whether a source or facility is causing or contributing to an objectionable odor is conducted and includes health problems associated with odors: (g) Determination of the existence of an objectionable odor. A source or facility is causing or contributing to an objectionable odor when: (1) A member of the Division staff determines by field investigation that an objectionable odor is present by taking into account nature, intensity, pervasiveness, duration, and source of the odor and other pertinent factors; (2) The source or facility emits known odor causing compounds such as ammonia, total volatile organics, hydrogen sulfide, or other sulfur compounds at levels that cause objectionable odors beyond the property line of that source or facility; or (3) The Division receives epidemiological studies associating health problems with odors from the source or facility or evidence of documented health problems associated with odors from the source or facility provided by the State Health Director. A facility that has been determined to be emitting an objectionable odor by the procedures described above will be required to implement maximum feasible controls (these controls are defined in 15A NCAC 02D .1807). The fugitive dust rule, 15A NCAC 02D .0540(a)(6) defines “substantive complaints” as “…complaints that are verified with physical evidence.” Paragraph (d) of that same rule defines the requirements of the facility once the Division has certified that a substantive complaint has been received: (d) If fugitive dust emissions from a facility required to comply with this Rule cause or contribute to substantive complaints, the owner or operator of the facility shall: (1) within 30 days upon receipt of written notification from the Director of a second substantive complaint in a 12-month period, submit to the Director a written report that includes the identification of the probable source(s) of the fugitive dust emissions causing complaints and what measures can be made to abate the fugitive emissions; (2) within 60 days of the initial report submitted under Subparagraph (1) of this Paragraph, submit to the Director a control plan as described in Paragraph (f) of this Rule; and (3) within 30 days after the Director approves the plan, be in compliance with the plan. The regulation specifies that the Director shall require a fugitive dust control plan if it is determined that there is sufficient environmental benefit to justify a fugitive dust control plan per the information in 15A NCAC 02D .0540(e). Based on the specifics provided in the underlying regulations, the Hearing Officer has determined that the draft air quality permit is sufficient to require compliance for each of these regulations and is not recommending any changes to the draft permit in response to these comments. C. Comments Concerning the Emissions Estimates Provided in the Permit Application Several commenters (Williams, Rodgers, Zeller, *Vick, *Neal, *Wagner) discussed the emissions estimates provided in the permit application. The following provides summaries of these comments, grouped by topic. Hearing Officer’s Report – Northampton Compressor Station Public Hearing – November 15, 2017 Page 6 of 29 1. The Compressor Station was Improperly Designated as a Minor Source Comment: The Northampton Compressor Station was improperly designated as a minor source. An analysis was provided showing potential to emit being significantly greater than major source thresholds. To determine the potential emissions from the turbines, the commenter used Environmental Protection Agency (EPA) emission factors published in AP-42 for natural gas-fired turbines and the maximum heat input at 100 percent load provided in the permit application. The compressor station should be deemed a major source and DEQ should take steps to correct this error before issuing the permit. The following additional information was provided in support of this comment: • Compressor stations emit huge amounts of air pollution. An example of emissions from a single compressor station investigated by BREDL was provided showing emissions much greater than those estimated in the permit application. • In support of the permit, emission estimates from the Northampton Compressor Station (21,700 horsepower (hp) compressors) were compared to a nearby, comparable facility (21,197 hp compressors). The Northampton Compressor Station NOX emissions of 19.6 tons per year (tpy) were shown to be significantly less than a station in Tennessee, which had NOX emissions of 62 tpy. Likewise, the Northampton Compressor Station CO emissions of 33 tpy were significantly less than the CO emissions of 68 tpy from the station in Tennessee. The decision to install add-on controls on the Northampton Compressor Station turbines was commended. Hearing Office Response to this Comment As stated in the comment summary, the emissions estimates provided by the commenters appear to indicate that emissions for the Northampton Compressor Station may be greater than major source thresholds. However, the commenters used emission factors for natural gas-fired combustion turbines from EPA’s AP-42. According to the permit application, ACP used manufacturer’s data to estimate potential emissions from the turbines. DAQ typically considers AP-42 emission factors to be used when no other data are available to estimate emissions and considers manufacturers data to be more accurate. Furthermore, according to the permit application, at low load and cold temperature extremes, the turbine system must be controlled differently resulting in higher emissions of NOX, CO, and VOC during these periods of time. Furthermore, ACP calculated potential emissions by conservatively calculating higher emissions during periods of sub-zero and low load conditions. Using emissions from another compressor station as a comparison to the Northampton Compressor Station does not necessarily demonstrate that the emissions have been underestimated (or overestimated). ACP is required to conduct performance testing to demonstrate that they will be in compliance with the air regulations and their permit (see Section IV.F.1, below, for more discussion on the testing requirements). Based on the emission calculations provided in the permit application, the Hearing Officer has determined that emissions were not underestimated as claimed by the commenters and recommends that no further action by DAQ is necessary in response to these comments. 2. Fugitive Emissions from Tanks Comment: DAQ did not consider the fugitive emissions from tanks, which underestimates the facility- wide emissions. Hearing Officer Response to This Comment Fugitive emissions from storage tanks include evaporative losses from filling and transfer operations as well as standing losses. ACP calculated emissions from the storage tank operation using accepted methods of calculating emissions from storage tanks. EPA’s TANKS program was used to estimate emissions from the waste oil tank. Evaporative losses from filling and transfer operations, or working losses, occur when vapors are displaced due to the emptying and filling of storage vessels. Standing, also known as breathing, losses are the release of gas associated with daily temperature fluctuations and other Hearing Officer’s Report – Northampton Compressor Station Public Hearing – November 15, 2017 Page 7 of 29 equilibrium effects. Emissions related to breathing losses occur when temperature variations in the tank’s location cause vapors in the tank to expand. The expansion of the gas raises the vapor pressure inside the tank, and that resulting pressure forces some of the built-up vapors out through the vent. The American Petroleum Industry’s (API) program entitled E&P Tanks was used to calculate emissions from the hydrocarbon liquids tank. E&P Tanks calculates emissions related to working and breathing losses using the same methods as the EPA TANKS program. The E&P Tanks program also estimates what is referred to as flash emissions. Flash emissions occur when a liquid with entrained gases is transferred from a vessel with higher pressure to a vessel with lower pressure, thus allowing entrained gases or a portion of the liquid to vaporize or flash. The hydrocarbon liquids tank accepts hydrocarbon liquids from the separator and according to the permit application, the Northampton Compressor Station separator pressure is 552 pounds per square inch gauge (psig). Because the storage tank emissions were estimated using accepted methods for calculating evaporative losses, or fugitive tank emissions, the Hearing Officer determined that fugitive emissions from the tanks were included in the facility-wide total VOC emissions. Therefore, the Hearing Officer recommends that no further action by DAQ is necessary in response to these comments. 3. Accuracy of Emissions Provided in the Permit Application Comment: According to the revised permit application, total VOC emissions would be 21.2 tpy. In the initial application, total VOC emissions were estimated to be 41.1 tpy. DEQ should require additional verification of whether the previous number was more accurate. Hearing Officer Response to This Comment The Hearing Officer was not familiar with the differences between the two permit applications. The permit review engineer, Charles McEachern, P.E., was contacted to request additional information. In his email on December 8, 2017, Mr. McEachern provided the following information. As pointed out by the [commenter], the facility-wide VOC emissions between the two applications differ by about 20 tons per year. This is due to how the fugitive emissions from compressors are estimated for the insignificant emission source titled, “Piping Leaks,” ID No. I- Fug-02. In the first application, Table C-7 “Potential Emissions from Fugitive Leaks,” an emission factor of 5.71 lb/hr/source is shown for the compressor emissions. Although this emission factor is referenced to the “EPA Protocol for Equipment Leaks Emissions Estimates” (EPA-453/R-95-017, Table 2-4, page 2-15), it doesn’t actually appear anywhere in this document. The second application references the same EPA table but no longer separates compressors (which are not listed separately in this table anyway), instead, they are shown in the revised Table C-7 as being included under the “Others” emission factor of 8.80E-03 lb/hr/source. The EPA document has a footnote at the bottom of the table indicating this is the correct emission factor for use with many pieces of equipment, including compressors. After submission of the second application I noticed the EPA factors are in units of kg/hr/source, so the applicant submitted a revised and corrected Table C-7 by e-mail on August 7, 2017. To summarize, the first application shows I-Fug-02 VOC emission to be 20.0 tpy, the second shows it to be 0.40, and the final revision for the units correction shows it to be 0.776 tpy. The final version appears to be correct and the use of the emission factors appears correct. Following is a link to the EPA document if you need it: https://www3.epa.gov/ttnchie1/efdocs/equiplks.pdf Hearing Officer’s Report – Northampton Compressor Station Public Hearing – November 15, 2017 Page 8 of 29 Based on this information from the permit review engineer, the Hearing Officer has determined that the VOC emissions in the revised permit application are the more accurate value and recommends no further action by DAQ is necessary in response to this comment. 4. Emissions Profile Comment: The DEQ fact sheet for the Northampton compressor station gave the following emissions profile: According to the commenter, this profile provides a very poor indication of the extent of the emissions that will be released for several reasons: (1) the permitted pollutants are a very small subset of the toxic releases that will be emitted annually; (2) the “Expected Actual Emissions” are actually the best-case assumptions of what the compressor is likely to produce; and (3) the total tons per year – even if they are correct – mask the exposure to extremely high emissions that pipeline compressor stations give off during operation. Hearing Office Response to this Comment The commenter’s statement that the permitted pollutants are a small subset of the toxic releases that will be emitted annually is incorrect. VOC, TSP, PM10, and PM2.5 each represent a broad category of pollutants. For example, VOC has been defined by EPA to mean any compound of carbon, excluding carbon monoxide, carbon dioxide, carbonic acid, metallic carbides or carbonates, and ammonium carbonate, which participates in atmospheric photochemical reactions (40 CFR 51.100).5 As discussed in Section IV.F.1, below, ACP will be required to conduct performance tests for VOC emissions, which will demonstrate compliance with permit. The performance tests will be conducted in accordance with EPA test methods and the VOC emissions reported in the test results will represent the broad category of pollutants as defined by EPA. Furthermore, there appears to be confusion regarding the emissions in the table provided by the commenter. According to the permit review published with the public notice,6 the following table presenting emissions from the turbines is the correct version of the table referenced by the commenter: Pollutant Title V Emissions (no add-on control, 8760 hr/yr) from all 3 turbines, combined (tpy) Permit Potential/Expected Actual Emissions from all 3 turbines, combined (tpy) TSP 18.1 18.1 PM-10 18.1 18.1 PM-2.5 18.1 18.1 SO2 3.08 3.08 5 Refer to 40 CFR 51.100(s) for a full definition of VOC, including those compounds EPA has defined as not being included as VOC. 6 https://files.nc.gov/ncdeq/Energy%20Mineral%20and%20Land%20Resources/DEMLR/Atlantic-Coast- Pipeline/ACP%20Air%20Permit%20Draft%20Permit%20Review.pdf Hearing Officer’s Report – Northampton Compressor Station Public Hearing – November 15, 2017 Page 9 of 29 Pollutant Title V Emissions (no add-on control, 8760 hr/yr) from all 3 turbines, combined (tpy) Permit Potential/Expected Actual Emissions from all 3 turbines, combined (tpy) NOx 47.3 18.0 VOC 2.90 1.65 CO 64.2 28.6 Because the Northampton compressor station is a new source, the potential emissions are considered equal to the expected actual emissions for the purposes of determining major source status. As shown in the table, the first of the two columns of emissions represents uncontrolled emissions from the three turbines and the second column represents controlled turbine emissions, which are the maximum emissions estimated for the facility. As discussed above, ACP calculated emissions for the turbines (the largest source of emissions) using conservative assumptions. Therefore, the Hearing Officer has determined that the emission estimates were a good estimate of emissions being released by the turbines and recommends no further action by DAQ is necessary in response to this comment. 5. Draft Air Quality Permit Does Not Include Emissions of Several Compounds Comment: Many studies of compressor station emissions have shown a very wide range of serious air contaminants are released. For example, the independent lab results from air samples taken at Dish, Texas on September 15th, 2009 found a wide range of toxins. Of those that were found exceeding Texas’s Effect Screening Levels were: benzene dimethyl disulfide methyl ethyl disulphide ethyl-methylethyl disulfide trimethyl benzene diethyl benzene methyl-methylethyl benzene tetramethyl benzene naphthalene 1,2,4-trimethyl benzene m&p xylenes carbonyl sulfide carbon disulfide methyl pyridine dimethyl pyridine The DEQ air quality permit does not mention or give expected tons per year for any of these. Hearing Officer’s Response to this Comment The permit application for the Northampton Compressor Station did include emissions of many of these compounds (e.g., benzene, naphthalene, xylenes, etc.). These compounds are a subset of VOC emissions which are being controlled using the oxidation catalyst. It should be noted that not all natural gas composition is the same and will vary widely across regions. Additionally, the gas flowing through the pipeline in North Carolina will have been processed many times and the emissions profile should be much different than that of a Texas compressor station closer to the well. As such, the Hearing Officer recommends that it is not necessary for DAQ to take action in response to this comment. Hearing Officer’s Report – Northampton Compressor Station Public Hearing – November 15, 2017 Page 10 of 29 6. The Draft Air Quality Permit Does Not Address Increases in Fugitive Emissions Over Time Comment: Evidence from other compressor stations suggest that fugitive emissions will increase over time as machinery begins to wear. DEQ only gave the annual expected tons per year for the compressor station, and did not take into account aging equipment performance over time. This is especially significant when Duke Energy’s aging equipment is poorly maintained and not replaced as needed. Hearing Officer’s Response to These Comments Experiences at Duke Energy and their maintenance practices are not a reliable indicator that similar issues will occur at the Northampton Compressor Station. Regardless of individual experiences or documented environmental compliance issues at other facilities, the Northampton Compressor Station is its own entity. Furthermore, the compressor station is subject to NSPS Subpart OOOOa.7 Under Subpart OOOOa, ACP is required to comply with the fugitive emissions standards for methane and VOC. As such, the leak detection and repair (LDAR) standards under Subpart OOOOa should prevent increases in fugitive emissions over time. Therefore, the Hearing Officer recommends that it is not necessary to revise the permit in response to this comment. D. Comments Regarding Greenhouse Gas Emissions Several commenters (Emanuel (Andrea), Emanuel (Ryan), Wilson, Jenkins, Girolami, *Neal, *Taylor, Bissette, Ellis, Richmond, Stephenson, Ewing, Weir, Tatta, Sasser, Osterbrink, Form Letter No. 5 8 Comments) were concerned about the level of greenhouse gases (GHGs) being emitted by the compressor station. The following sections provide summaries of these comments, grouped by topic. 1. The Compressor Station was Incorrectly Designated as a Minor Source of Greenhouse Gas Emissions Comment: The amount of GHGs being created by the compressor station should require major source permit requirements. • The compressor station would be a major new source of GHG pollution, with nearly 130,000 tpy of carbon dioxide equivalent (CO2e), which is significantly over the 100,000 tpy threshold for major source review. • It is not clear from the draft permit whether DAQ considered additional methane emissions from leaks and blowdowns, which can be more frequent and less predictable than indicated in the application. The draft permit should be withdrawn and those additional methane emissions considered in the total CO2e calculations. Hearing Officer’s Response to this Comment Table C-9 of the permit application provides a summary of Project Potential Emissions. Included in the table are CO2e and methane emissions from blowdowns. As described in the text of the permit application, although ACP intends to minimize blowdown events, they occur sometimes for safety reasons and to ensure protection of the equipment. ACP also stated that although blowdowns typically occur once every five years, the emissions provided in the permit application were conservatively estimated to include one site-wide blowdown event per year. DAQ does not have any information to indicate that full-station blowdown events would occur more often than estimated by ACP. The Prevention of Significant Deterioration (PSD) regulations apply to new major stationary sources or existing major stationary sources that propose a major modification. A source is considered major if total facility emissions of any regulated pollutant (i.e., PM/PM10/PM2.5, NOX, SO2, VOC, CO) is greater than 7 It should be noted that On June 12, 2017, EPA proposed a stay of the fugitive emissions requirements under Subpart OOOOa [82 FR 27645]. On July 3, 2017, the U.S. Court of Appeals for the D.C. Circuit vacated EPA’s stay. EPA is considering its options in light of the Court’s opinion. On November 1, 2017, EPA issued a notice of data availability related to the June stay. No resolution has been met and as of the writing of this hearing report, the Subpart OOOOa requirements for fugitive emissions from compressor stations apply. 8 See Attachment C.6 for text of Form Letter No. 5. Hearing Officer’s Report – Northampton Compressor Station Public Hearing – November 15, 2017 Page 11 of 29 250 tpy, unless the source is one of 28 listed sources for which the major source threshold is 100 tpy. On June 23, 2014, the United States Supreme Court issued a decision addressing the application of stationary source permitting requirements to GHG emissions. In its decision, the Supreme Court ruled that the EPA may not consider GHGs as an air pollutant for the purposes of determining whether a source is a major source required to obtain a PSD permit. Subsequent to this decision, DAQ revised its applicability rules effective September 1, 2015, and 15A NCAC 02D .0544 specifically excludes facilities from the requirement to obtain a PSD permit based solely on its GHG potential. As shown in the response to comments in Section IV.C.4, the facility-wide emissions of PM/PM10/PM2.5, NOX, SO2, VOC, and CO are well below the 250 tpy major source threshold for PSD. The Hearing Officer has determined that the GHG emissions from the Northampton Compressor Station included blowdown events, and in light of the Court’s decision regarding PSD applicability determination with respect to GHG emissions, the compressor station was correctly designated as a minor source for PSD. The Hearing Officer recommends no further action by DAQ is necessary in response to this comment. 2. Concern with the Amount of Greenhouse Gas Emissions from the Compressor Station Comment: In support of their comments, the following points were made: • The Northampton Compressor Station will expose taxpayers in impacted communities to costly restoration that will follow future catastrophic climate events due to increased GHG emissions and pipeline leaks and explosions. DAQ should require the ACP to use a robust and continuous optical monitoring system for leak detection of methane along the pipeline, metering and compressor stations. Results should be reported to DEQ and the public. • Methane emissions from compressor blowdown events and pipeline leaks and explosions will increase the GHG emissions significantly. • The draft air quality permit is out of alignment with the Governor’s plan to combat climate change. • DEQ should weigh the full costs of expanding the pipeline on our climate. DAQ should limit and require control of GHG emissions according to State constitutional provisions. • The pipeline and compressor station will increase the concentration of methane in the atmosphere, which is 86 times more potent a GHG than carbon dioxide. Governor Cooper’s Administration and DEQ must enforce environmental regulations and laws to protect and preserve our environment. Stopping methane release is the single most effective thing any nation and State can do to delay temperature rise. • DAQ should ask the applicant to address how GHG emissions fit into North Carolina’s membership in the U.S. Climate Alliance. • Increased methane use would make the transition to renewable energy slower and more difficult because resources would be diverted to dealing with consequences of temperature rise from GHGs. Hearing Officer’s Response to These Comments Many of the comments (e.g., comments related to the leaks along the pipeline or the Governor’s plan to combat climate change) were not related to the draft air quality permit for the Northampton Compressor Station. These are outside the purview of this hearing report and will not be further addressed. One of the commenters made a statement that the Governor’s Administration and N.C. DEQ must enforce environmental regulations and laws to protect and preserve our environment. There are no specific GHG regulations that apply to the Northampton Compressor Station. To this point, ACP has followed the proper procedures for obtaining an air quality permit prior to constructing and operating the proposed compressor station. DAQ has reviewed ACP’s application to ensure that compliance with State and federal air regulations can be attained, and constructed a draft air quality permit that incorporates the applicable regulations. As such, DAQ is enforcing applicable environmental regulations and laws. Hearing Officer’s Report – Northampton Compressor Station Public Hearing – November 15, 2017 Page 12 of 29 The Northampton Compressor Station is also subject to two regulations that reduce GHG emissions. First, as discussed above, the compressor station is subject to and will be required to comply with NSPS under Subpart OOOOa. The fugitive emissions standards under Subpart OOOOa were developed to reduce methane and VOC emissions from natural gas transmission compressor stations. Under this requirement, ACP will be required to: • Develop and implement a leak monitoring plan. • Conduct a leaks survey using optical gas imaging to identify emissions of methane and VOCs (NOTE: EPA Method 21 is an alternative to optical gas imaging. Method 21 is an EPA method for determining VOC emissions from process equipment. The method is based on using a portable VOC monitoring instrument, such as an organic vapor analyzer.) • Conduct the initial survey within 60 days of the startup of the new compressor station. • Repeat monitoring quarterly following the initial survey. • Include the valves, connectors, pressure-relief devices, open-ended lines, flanges, compressors, and thief hatches on controlled storage tanks, among others in the quarterly survey. • Repair leaks found during the surveys. Natural gas facilities with actual annual GHG emissions over 25,000 metric tons CO2e are required to report GHG emissions from various processes within the facility under the Greenhouse Gas Reporting Rule under 40 CFR Part 98, Subpart W. In their permit application, ACP provided a compliance demonstration that includes Subpart W reporting, which is incorporated into the permit by reference.9 Based on review of the draft air quality permit and permit application and the applicable regulations, the Hearing Officer recommends that no further action is necessary in response to these comments. E. Draft Permit Language is Vague Comment: Six commenters (Emanuel (Andrea), Wilson, Jenkins, Girolami, *Taylor, Ellis, Sheline) described some of the language in the draft permit as being vague and permissive and they expressed their concern that it would invite conditions for the surrounding community to be exposed to toxins without holding ACP owners and operators accountable. In support of their comments, the following points were made: • As written, requirements are unclear due to the use of phrases such as “good pollution control practice,” “to the extent practical,” “within the limits of practicality,” and “substantive complaints.” These are not true parameters and would easily leave communities without recourse. The permit provisions must be clear, quantitative, and enforceable through monitoring requirements, equipment testing, and limits. • DEQ should develop unequivocal language that is enforceable, rendering ACP’s developers responsive to clear requirements such that they keep emissions below thresholds. Hearing Officer’s Response to These Comments Most of the phrases referred to by the commenters are directly quoted from federally approved NSPS and/or maximum achievable control technology (MACT) standards. These regulations have been through federal rulemaking processes and have been through notice and comment periods during which the rule language referred to by the commenters was retained. The term “substantive complaints” is defined in the fugitive dust regulation and has been defined (refer to Section IV.B, above, for additional information). Because 9 Although these compliance provisions are not specified in the draft air quality permit, the permit does contain the following statement which requires ACP to comply with the proposed provisions: The Permittee “is hereby authorized to construct and operate the air emissions sources and/or air cleaning devices and appurtenances described below…in accordance with the completed application 6600169.15A received January 13,2016 including any plans, specifications, previous applications, and other supporting data, all of which are filed with the Department of Environmental Quality, Division of Air Quality (DAQ) and are incorporated as part of this permit.” Hearing Officer’s Report – Northampton Compressor Station Public Hearing – November 15, 2017 Page 13 of 29 these phrases are directly quoted in the underlying regulations, the Hearing Officer recommends that no changes to the draft air quality permit language are necessary based on these comments. F. Comments Regarding the Stringency of Permit Requirements Several commenters (Adams, Girolami, Wooten, *Clark, *Winstead, *Burnette, *Taylor, Ellis, *Neal, Sheline, Garbutt, Emanuel (Ryan), Weir, Osterbrink) requested the draft permit be revised to include more stringent requirements for emission limitations, control requirements, testing, and monitoring. The following sections provide summaries of these comments, grouped by topic. 1. Emission Limitations, Monitoring and Testing Requirements Comment: In support of their comments, the following points were made: • DAQ should require ACP to perform continuous emission monitoring (CEM) at 60-foot high stacks on each compressor. • The draft permit’s requirements are weak for emission testing and controls. Emission testing for methane, formaldehyde and other VOCs and particulates should be continuous and tightly restricted. All emission and performance testing must be defined and not left to the operator’s discretion. Limits must be defined and backed up with frequent testing. • There are no monitoring requirements in the draft permit for VOCs or hazardous air pollutants (HAPs). According to the permit application, the compressor station would emit 21.2 tpy of VOC, and several different HAPs. • The draft permit does not include formaldehyde limits. • Formaldehyde is not okay to be emitted anywhere in NC. • The final permit should hold ACP to the best standard. Hearing Officer’s Response to These Comments Subpart KKKK allows sources to choose to install CEM systems (CEMS) as an alternative to annual performance testing. When not required by a regulation, CEMS would typically be expected to be installed when the margin of compliance is small and a source would want to closely monitor its emissions to ensure compliance with a standard. The turbines are subject to a 25-ppm NOX limit, and by installing SCR in combination with the SoLoNOx installed on each turbine, the maximum potential NOX emissions from the turbines are expected to be 5 ppmv (based on manufacturer’s specifications), which is 20 percent of the standard. Due to such a large margin of compliance, use of a CEMS is not warranted. DAQ has determined that requiring CEMs was not necessary to ensure compliance with the standards to which these units are subject. Although there are no regulatory testing or monitoring requirements for PM10/PM2.5, VOC, and CO, ACP has proposed ongoing compliance methods for PM10/PM2.5, VOC, and CO emissions from the turbines. In their permit application (which is incorporated into the draft permit by reference 10), ACP states they will conduct initial stack testing to determine PM10/PM2.5, VOC, and CO emission rates. Compliance with the potential to emit will be demonstrated on a 12-month rolling total basis for all three pollutants, as the following excerpt from the permit application shows: Compressor Turbines (CT-01 through CT-03) NOX: Annual stack testing (or semi-annual testing as allowed) will be completed to demonstrate compliance with the NSPS Subpart KKKK emissions limits (NO2 emissions). Compliance with the combustion turbines potential to emit will be demonstrated on a 12-month rolling total basis by the sum of the following emissions: 10 See Footnote 9. Hearing Officer’s Report – Northampton Compressor Station Public Hearing – November 15, 2017 Page 14 of 29 • Normal Operation: The average emission rate from the most recent stack test (pounds per hour, lb/hr) times the number of hours operating in SoLoNOx mode (mode indication provided and recorded by control logic on turbine). • Low Temperature(< 0° F) Operation: The proposed controlled emission rates (lb/hr) determined using the Solar provided emissions factor multiplied by the control efficiency of the SCR times the number of hours when inlet combustion air for turbine was measured to be below 0o F. • Startup and Shutdown Emissions(< 50% load): The Solar-provided emission rates divided by Solar-assumed duration for startups and shutdowns (1/6th of an hour each) times the number of hours operating in non-SoLoNOx mode (mode indication provided and recorded by control logic on the turbine). CO, VOC, PM10/PM2.5: Initial stack testing will be completed to determine PM10/PM2.5 emission rates (lb/MMBtu). Fuel firing will be tracked and used to calculate annual (rolling 12-month total) ton per year emissions. Initial stack testing will be competed to determine VOC and CO emission rates. Compliance with the combustion turbines potential to emit will be demonstrated on a 12-month rolling total basis by the sum of the following emissions: • Normal Operation: The average emission rate from the most recent stack test (lb/hour) times the number of hours operating in SoLoNOx mode (mode indication provided and recorded by control logic on turbine). • Low Temperature (< 0o F) Operation: The proposed controlled emission rates (lb/hr) determined using the Solar provided emissions factor multiplied by the control efficiency of the oxidation catalyst times the number of hours when inlet combustion air for turbine was measured to be below 0o F. • Startup and Shutdown Emissions (< 50% load): The Solar-provided emission rates divided by Solar-assumed duration for startups and shutdowns (1/6th of an hour each) times the number of hours operating in non-SoLoNOx mode (mode indication provided and recorded by control logic on the turbine). Greenhouse Gases: Total annual fuel volume will be tracked to determine total MMBtu of firing. This value times the EPA Mandatory Reporting Rule natural gas emission factor (40 CFR Part 98 Subpart C) times the Global Warming Potential (40 CFR Part 98 Subpart A) will be used to calculate ton per year CO2e emissions. Emergency Generator Records of the monthly emergency and non-emergency use will be maintained to confirm compliance with the annual limit for non-emergency operation. If a non-certified engine is installed or if a certified engine is installed but operated as non-certified an initial stack test and testing every 8760 operating hours or three years (whichever comes first) will be conducted. Other Combustion Sources If not otherwise specified above, the amount of fuel fired in units and/ or hours of operation will be tracked and multiplied by the appropriate emission factor to calculate emissions on an annual basis. Additionally, the draft air quality permit requires inspection and maintenance on the oxidation catalyst. The HAP emissions typically emitted from a compressor station are a subset of VOC, which will be reduced by the oxidation catalyst. Hearing Officer’s Report – Northampton Compressor Station Public Hearing – November 15, 2017 Page 15 of 29 In response to the comment in Section IV.I.3, below, the Hearing Officer has determined that toxics modeling is likely to have been triggered for this facility and has recommended that a modeling analysis be conducted to determine compliance with the AALs in 15A NCAC 02D .1104 for all toxic air pollutants (TAPs) that are emitted at a greater rate than the Toxic Air Pollutant Permitting Emission Rate (TPER) in 15A NCAC 02Q .0711. The modeling analysis will determine the need for TAP limits in the air quality permit. The proposed testing requirements and the large margin of compliance with the NOX requirements under Subpart KKKK indicate that ACP will be operating the sources at the Northampton Compressor Station to a greater standard than required by regulation. Therefore, pending the outcome of the modeling analysis with respect to TAP limits, the Hearing Officer recommends that no further action is required by DAQ in response to these comments. 2. Emission Inventory Comment: The facility is only required to submit the inventory 90 days prior to expiration of the 5-year permit before renewal, which is five years after the facility would start operating. Emission inventories should be required monthly instead of once every five years. Hearing Officer’s Response to These Comments According to the requirements in 15A NCAC 02Q .0308, facilities of the size of the Northampton Compressor Station (i.e., non-Title V facilities) are required to apply for permit renewal every eight years and to submit an emissions inventory.11 DAQ has determined that the eight-year permit term for non-Title V facilities does not interfere with the State’s ability to attain air quality standards and reduces regulatory burden. Under Subpart KKKK, ACP will be required to submit “…a written report of the results of each performance test before the close of business on the 60th day…” following the completion of the annual NOX performance test. Furthermore, ACP will be required by the permit to keep records of emissions and report any changes in the information submitted in the application regarding facility emissions, changes that modify equipment or processes of permitted sources, or changes in quantity or quality of materials processed. New and increased emissions that would cause a violation of the permitted emissions limitations are specifically prohibited. The requirements in the draft air quality permit were written in compliance with DAQ air regulations and the Hearing Officer does not have information to indicate that a more frequent inventory would be warranted for this facility. As such, the Hearing Officer recommends that no further action by DAQ is necessary in response to this comment. 3. Testing for Emergency Engine Comment: In support of their comment, the following points were made: • There should be more air controls for compressor engines bigger than 500 horsepower; but the draft permit only requires inspections every three years after the initial testing the first year. • Initial testing is only required within the first year, then every three years thereafter. The facility will put more hazardous air pollutants, precursors of ozone (nitrogen oxides and VOCs), particulate matter, GHG emissions, and other pollutants into the air people breathe. • NOX and SO2 emissions are regulated in terms of the amount of pollutants released per million Btu input. That is the more heat used, the greater pollution allowed. 11The air quality permit renewal date in the draft permit was incorrect. Per 15A NCAC 02Q .0308(c), permit renewal for non-Title V facilities (and the emission inventory) is due 8 years after the date the final air quality permit is issued. Hearing Officer’s Report – Northampton Compressor Station Public Hearing – November 15, 2017 Page 16 of 29 Hearing Officer’s Response to These Comments The engine referred to by the commenter is not a compressor engine, it is an emergency engine designed to provide backup power when the primary source of power to the facility is unavailable. Furthermore, the commenters’ statement that subsequent testing is only required every three years after the initial performance test is incorrect. The engine is subject to Standards of Performance for Stationary Spark Ignition Combustion Engines under 40 CFR Part 60, Subpart JJJJ (Subpart JJJJ). After the initial performance test, Subpart JJJJ requires ACP to conduct periodic performance tests after 8,760 hours of engine operation. However, due to the infrequent use of engines installed for emergency purposes (based on EPA Guidance,12 the potential to emit from an emergency engine is calculated using 500 hours of operation per year), Subpart JJJJ requires a test at least once every three years. Furthermore, the draft air quality permit requirements (including the form of the emissions limitations) are in line with the Subpart JJJJ requirement and due to the inherently low emissions from a natural gas-fired engine, the Hearing Officer does not believe more stringent testing or a change in emission limits for this engine is warranted. No further action by DAQ is necessary in response to this comment. 4. Excess Emissions and Equipment Leaks Comment: In support of their comments, the following points were made: • The requirement in the draft permit for notification of excess emissions occurring for more than four hours is not good enough. Notification isn’t required until 9:00 the next business day and four hours of leaking would allow a tremendous amount of pollution into the air. Notification should be immediate and 100 percent reporting of leaks should be required. • Compressor station emissions vary during normal operation. Emissions tons per year are common and are the typical values used by DEQ; however, these do not capture the very high peak values that are experienced during blowdowns, accidental or planned pressure releases, equipment failures, valve leakage or other episodes that release sudden high levels of the toxins. • The handout provided by DAQ at the hearing contained a summary of emissions in tons per year. These values represent average values and that short-term spikes from blow-downs or accidents were more damaging to health. • Documented reports show that 60 percent of leaks and spills are reported by passersby. Automatic systems only detect leaks if the pressure drops more than two percent. The commenter stated that with billions of cubic feet of gas flowing through the pipeline, this is a lot of gas. • A leak at the existing compressor station in Pleasant Hill was observed. The event was described: the vapors were observed spreading across the street and a hissing sound could be heard indicating a leak. According to the commenter, the complaint was filed by citizens, not identified by the company. • There is no enforcement for failure to give 15 days’ notice to regional offices to observe testing. Hearing Officer’s Response to These Comments The four-hour notification requirement for excess emissions is in accordance with 15A NCAC 02D .0535. With respect to leaks, the Hearing Officer reviewed the Federal Energy Regulatory Commission (FERC) Environmental Impact Statement (EIS), in which ACP has committed to the following with respect to leak prevention: Standard operations at compressor stations include such activities as the calibration, maintenance, and inspection of equipment; the monitoring of pressure, temperature, and vibration data; and traditional landscape maintenance such as mowing and the application of 12 Memorandum from Sietz, J., Director, Office of Air Quality Planning and Standards, to Director, Air, Pesticides and Toxics Management Division, Regions I and IV, et. al. Calculating Potential to Emit (PTE) for Emergency Generators. September 6, 1995. https://www.epa.gov/sites/production/files/2015-08/documents/emgen.pdf Hearing Officer’s Report – Northampton Compressor Station Public Hearing – November 15, 2017 Page 17 of 29 fertilizer. Standard operations also include the periodic checking of safety and emergency equipment and cathodic protection systems. [ACP] would install a supervisory control and data acquisition system, commonly referred to as Supervisory Control and Data Acquisition (SCADA), on each pipeline system, which would continuously monitor gas pressure, temperature, and volume at specific locations along the pipeline. These systems would be continuously monitored from gas control centers. The systems would provide continuous information to the control center operators and have threshold and alarm values set such that warnings are provided to the operators if critical parameters are exceeded. In the event of a drop in pressure within a pipeline, the gas control center would be immediately alerted and could stop the gas flow to the problem area by selectively isolating sections of the pipeline via valves until inspections are completed to determine the cause of the problem and complete repairs. According to DAQ’s Compliance Monitoring Strategy,13 small facilities (such as the Northampton Compressor Station) will be inspected at least every two years. Should ACP fail to comply with any air quality regulations, DAQ should be able to identify the violations during the compliance inspections or through complaint investigations at the site. Nothing prevents DAQ from conducting more frequent inspections to better target facilities more likely to have emissions or compliance problems. If air quality violations, including failure to notify DAQ of excess emissions or upcoming testing, are discovered, DAQ has the enforcement authority to deal with those violations accordingly. The Hearing Officer believes that the procedures ACP has committed to having in place are above and beyond what is required by State and federal air regulations, and that DAQ’s own policies will protect the public from noncompliance; therefore, the Hearing Officer has determined that no further action by DAQ is recommended in response to these comments. As discussed in Section IV.I.3, below, the Hearing Officer has recommended an air toxics assessment and it is likely a modeling analysis will be conducted in accordance with 15A NCAC 02Q .0711 to demonstrate compliance with 15A NCAC 02D .1104. The Hearing Officer recommends that this modeling analysis be conducted such that the fugitive emissions occurring due to equipment leaks and blowdowns accurately represent the short-term nature of these types of emissions. 5. Visible Emissions Comment: Visual emissions in the draft permit are limited to an average of 20 percent opacity measured over a 6-minute period, but the monitoring is extremely subjective and infrequent, allowing for excess releases with no reporting. Hearing Officer’s Response to These Comments The visible emissions requirements under 15A NCAC 02D .0521 apply to fuel burning operations and industrial processes where an emission can reasonably be expected to occur. Visible emissions from natural gas-fired internal combustion sources, such as turbines and engines, are inherently low. Therefore, continuous compliance with this regulation is expected for these types of sources. More frequent monitoring of visible emissions from the turbines and engines would be excessively burdensome with no added benefit in reducing emissions. Therefore, the Hearing Officer has determined that the visible emissions requirement in the draft air quality permit is appropriate and recommends that no further action by DAQ is necessary in response to this comment. 13 https://files.nc.gov/ncdeq/Air%20Quality/enf/cms/cmsimplementation.pdf Hearing Officer’s Report – Northampton Compressor Station Public Hearing – November 15, 2017 Page 18 of 29 6. DAQ Should Require More Stringent Controls for the Compressor Station Comment: According to the draft air quality permit, the SCR will have a control efficiency of 80 percent for the Centaur 40 turbine, but would drop to 44 percent for the Centaur 50L and Taurus 70 turbines. ACP purports to use “best in class” controls, but this should not be confused with best available control technology (BACT). BACT refers to the best demonstrated control technology subject to economic and technical constraints, and was not required by DAQ. Had BACT been required, it is likely that the SCR for all three turbines would be approximately 80 percent and would improve local air quality. Requiring BACT may also have led to the identification of more efficient oxidation catalysts to control CO and formaldehyde. Although not required, DAQ should inquire about more stringent emissions controls for the compressor station. Hearing Officer’s Response to These Comments The Hearing Officer reviewed the permit application for the bases of the control efficiencies referenced by the commenter. ACP has voluntarily installed selective catalytic reduction (SCR) for additional NOX control and an oxidation catalyst for additional CO and VOC (including formaldehyde) control. These controls are not being installed to comply with an applicable regulation. According to the permit application, the SCR will reduce NOX emissions to an outlet concentration of 5 ppmv at 15 percent oxygen. The emission reductions referenced by the commenter were back-calculated using the uncontrolled concentration and the outlet concentration. When compared to the federal standard (Subpart KKKK), the turbines will be operating at 20 percent of the standard. The emission reduction for the oxidation catalyst was also back-calculated from the vendor estimate of 5 ppmvd CO at 15 percent oxygen and the uncontrolled CO concentration. Again, the control device for CO (which also controls VOC emissions) is being installed voluntarily. Furthermore, BACT is not required until PSD is triggered. Since the Northampton Compressor Station is a minor source for PSD purposes, requiring BACT is not warranted. Therefore, the Hearing Officer has determined that the level of control being achieved is more than sufficient to meet the applicable regulations and recommends that no further action by DAQ is necessary to respond to this comment. G. Comments Regarding Information Provided in the Permit Application Comment: Five commenters (Scott, Garbutt, Ambrose, Stephenson, Ewing) stated concern that the information provided by ACP in their permit application for the Northampton Compressor Station was incomplete and additional stations should be included. In support of their comments, the following points were made: • Because the compressor station will need to push gas a longer distance than most compressor stations, either the pressure at the station will need to be dangerously high or more compressor stations will be needed along the pipeline. • The possibility that additional compressor stations will need to be built means the draft air quality permit was issued for an incomplete application. • The permit application did not contain critical information needed to properly regulate the compressor station. • Based on recent news investigations, Duke Energy Progress has been reported to edit independent coal ash science reports from two UNCC professors. The data provided in the permit application cannot be trusted and must be reviewed and viewed with great skepticism. Hearing Officer’s Response to These Comments Regarding the accuracy of what is included in the permit applications, the application for this facility is signed by a responsible official. If found to be in error, the facility would find itself in a noncompliance situation with notices of violations and possible recommendations for enforcement being levied if applicable. Hearing Officer’s Report – Northampton Compressor Station Public Hearing – November 15, 2017 Page 19 of 29 The commenter’s statements are incorrect that the application is incomplete because future compressor stations will be necessary. If new stations were needed, each would have to go through an individual permitting process. Air quality permit applications are required for each individual facility. In this case both State and federal permitting/approvals are necessary for each individual facility. The permitting of future compressor stations is outside the purview of this hearing report and the Hearing Officer recommends that no further action by DAQ is necessary in response to these comments. H. Comments Regarding Ambient Air Monitoring and Regional Modeling Comment: Several commenters (*Vick, *Wagner, *Taylor, Adams, *Neal, Ambrose, Ellis, Wooten, Nyland (Lars), Nyland (Lauren), Manigrasso, Scott, Emanuel (Andrea), Richmond, Sheline, Garbutt, Form Letter No. 5 14 Comments) requested that DAQ conduct ambient air monitoring in the area surrounding the proposed compressor station and regional modeling (for several pollutants such as formaldehyde, dust, and odor), including impacts from sources of emissions nearby, including the existing Piedmont Natural Gas Compressor Station, the Georgia Pacific mill, a natural gas-fired power plant in Virginia, Enviva as well as the 37 permitted facilities in the county. The following sections provide summaries of these comments, grouped by topic. 1. Regional Modeling and Ambient Monitoring Comment: In support of their comments, the following points were made: • DAQ did not have any mobile monitoring sites near the compressor station and if monitoring to measure the spikes can’t be done, it shouldn’t happen. An example was provided of a Pennsylvania resident that was driven from their home due to short term spikes in emissions from a nearby compressor station. • Emissions of criteria air pollutants such as NOX and VOCs from the Northampton Compressor Station may cause future violations of the Clean Air Act National Ambient Air Quality Standards (NAAQS) in the Raleigh area. Current protocols used for assessing compliance with ambient air standards using annual averages, does not adequately determine the intensity, frequency or durations of the actual human exposures to the mixtures of toxic materials released regularly at pipeline compressor stations. Due to the low population density in Northampton County and surrounding counties, there aren’t nearby air quality monitoring stations. It was asked what the probability is for an exceedance of 70-ppb ozone standard due to the addition of the pipeline and the Northampton Compressor Turbines. DAQ should deploy a special purpose monitoring site or site a monitor from their rotating background monitoring network, to establish a baseline concentration data for SO2, PM2.5, PM10, NOX near the proposed compressor station, prior to the installation of the pipeline. • The community would be at added risk of air pollution from gas-fired combustion facilities that might tap into the pipeline in the future. DAQ has an “independent obligation” to limit the potential for adverse health effects from the proposed compressor station and DAQ should require monitoring of existing, nearby major sources of air pollution. Hearing Officer’s Response to These Comments The DAQ currently has a robust array of air monitoring equipment located throughout North Carolina. The quantity, type and location of every monitor is a collaborative effort between the EPA and DAQ. DAQ’s Ambient Air Quality Monitoring Network plan is updated and approved by EPA on an annual basis. The changes to the plan are subject to a public notice and comment period. A public notice was issued on May 26, 2017 announcing the opening of the comment period for the most recent changes to the monitoring network. Monitors are established based on numerous factors, including but not limited to, State and federal regulatory requirements and budget constraints. It is not within the purview of the 14 See Attachment C.6 for text of Form Letter No. 5. Hearing Officer’s Report – Northampton Compressor Station Public Hearing – November 15, 2017 Page 20 of 29 Hearing Officer to determine or recommend the location and operation of air monitoring equipment near the proposed compressor station facility. As discussed in response to the comment in Section IV.A.1, above, DAQ conducted a cumulative review of air quality in the area surrounding the Northampton Compressor Station site and will be compiled in a separate document that will be part of the record. Concerns that the national standards are not protective enough are also outside the context of this hearing report. The Clean Air Act requires EPA to evaluate the NAAQS at least every five years and to adjust these standards, as needed for the purpose of protecting human health. EPA consults the Clean Air Scientific Advisory Committee to determine the appropriate standard needed for each pollutant to protect the health of all citizens. North Carolina is currently in attainment for all pollutants as determined by State-wide ambient monitoring and as approved by the EPA. The Hearing Officer recommends that no further action by DAQ is necessary with regards to comments about the location of air monitoring equipment and NAAQS modeling. 2. Comments Regarding Modeling Analysis for Environmental Impact Statement • The modeling data supplied to the Federal Energy Regulatory Commission (FERC) was not submitted in the draft air quality permit application for the compressor station. • The NAAQS modeling was flawed in that it did not include background levels of air pollution in the community but instead from monitoring stations as far away as Roanoke, Charlottesville, and Harrisonburg, Virginia. Furthermore, background levels for HAPs or toxic air pollutants were not considered. New modeling should be performed that includes accurate information about the background sources of existing pollution in the relevant area. The nearest air quality monitoring stations are over 60 miles away from the proposed compressor station. • DAQ should require accurate modeling of the expected air pollution from the proposed compressor station. The ACP public permit findings do not disclose the full environmental risk and harm to communities. Hearing Officer’s Response to These Comments The Northampton Compressor Station has been determined to be a minor stationary source for the purposes of PSD and Title V. There are no regulatory requirements to conduct NAAQS modeling for a source of this size. It is beyond the purview of this hearing report to respond to comments on the merits of the modeling conducted for FERC. Therefore, the Hearing Officer recommends that no further action by DAQ is necessary in response to this comment. As discussed in response to the comment in Section IV.A.1, above, DAQ conducted a cumulative review of air quality in the area surrounding the Northampton Compressor Station site and will be compiled in a separate document that will be part of the record. 3. Chemical Transport Modeling Comment: DAQ should perform Chemical Transport Modeling to model ozone and atmospheric deposition of nitrate to determine the full impact of the pipeline on future NAAQS attainment and the health of impaired watersheds. DAQ should assess the inputs of atmospheric nitrogen deposition from the construction and operational phase of the pipeline to impaired watersheds. Hearing Officer’s Response to this Comment As stated above, the purpose of the public hearing was to receive comments assessing DAQ’s evaluation of the proposed compressor station from an air quality standpoint. There are currently no air quality regulations that would require this type of evaluation for the proposed compressor station. Chemical Transport Modeling to determine the full impact of the pipeline on future NAAQS attainment and the Hearing Officer’s Report – Northampton Compressor Station Public Hearing – November 15, 2017 Page 21 of 29 health of impaired watersheds is beyond the purview of this hearing report. Therefore, the Hearing Officer recommends that no further action by DAQ is necessary in response to this comment. 4. Concerns about Formaldehyde Modeling Regulations Comment: In support of their comments, the following points were made: • A personal monitor detected formaldehyde emissions near the existing compressor station in Pleasant Hill. The emissions in the permit application represent average emissions and short-term spikes in emissions should be considered. • Fluctuations in emission levels make it more difficult to assess potential health risks to individual residents, such as fugitive emissions from leaking equipment. Current air quality monitoring methods need to be revised to account for episodic air emissions and more advanced air quality modeling studies are needed. • The Department should ensure that the community is not going to be exposed to dangerous levels of formaldehyde, a “known carcinogen,” on an annual basis. Therefore, annual formaldehyde modeling should be considered given the other sources of formaldehyde near the proposed compressor station. • More recent investigations on formaldehyde near compressor stations are focused on the chemical reaction between methane and sunlight. While it is well known that stationary compressor station engines emit formaldehyde, it is less well known that formaldehyde may also be formed at these sites through this chemical reaction. • DAQ should report on the baseline sources of formaldehyde emissions in North Carolina, how these emission sources are distributed across the State, and how the pipeline will contribute to those emissions. DAQ should review and model their regulations after learning from the challenges faced by States who are having difficulty characterizing their regional air quality due to the presence of multiple complex emission sources. • The Ohio Department of Air Pollution Control (DAPC) is asking permittees to conduct formaldehyde monitoring whenever a project is expected to emit more than 1.0 tpy of formaldehyde and stipulates when the more sophisticated methods are to be used, the ambient modeling concentrations that must be met are 49 µg/m3 maximum 1-hour concentration and 0.8 µg/m3 on an annual basis. Maximum 1- hour concentration limits are more protective to local communities because short-term exposure is masked when annual averages are used. DAQ should require that ACP demonstrate that the NC and Federal Air Toxic Regulations are met using an optical formaldehyde monitor for continuous emission fenceline monitoring. DAQ is recommended to create permit guidelines for compressor stations that include guidelines for ambient monitoring and fenceline observed concentrations that must be met for both maximum 1-hour concentrations as well as annual concentrations. Hearing Officer’s Response to These Comments It is beyond the purview of this hearing report to make changes to the modeling regulations and these comments will not be directly addressed in this report. The DAQ air toxics rules are established to protect the ambient air levels at the fenceline for each TAP emitted from a facility. A toxics demonstration would be required for each pollutant for which the associated TPER was expected to be exceeded. The AALs, as well as the TPERs, are time dependent (i.e., based on exposure time) and were developed by the Science Advisory Board (SAB) to protect the health of those outside the fenceline. With respect to the commenters’ recommendation to use the Ohio DAPC guidelines, it should be noted that DAQ’s established AAL for formaldehyde is 0.15 µg/m3 for the one-hour standard. This is two orders of magnitude below the Ohio AAL. In response to the comment in Section IV.I.3, below, the Hearing Officer has recommended that ACP conduct an analysis to determine which TAPs (including formaldehyde) are projected to be emitted at rates greater than the associated TPERs and for those TAPs, demonstrate compliance with the associated AAL. Therefore, the Hearing Officer has determined that the process by which formaldehyde will be Hearing Officer’s Report – Northampton Compressor Station Public Hearing – November 15, 2017 Page 22 of 29 evaluated relative to the AALs will adequately protect those outside of the compressor station fenceline and, pending the outcome of the modeling analysis, does not recommend any further action by DAQ in response to this comment. I. Comments Regarding Toxic Air Pollutants Modeling Two commenters (*Neal, *Taylor) stated that DAQ incorrectly performed dispersion modeling for toxic air pollutant emissions from the proposed compressor station. The following sections provide summaries of these comments, grouped by topic. 1. Insignificant Activities Comment: The draft air quality permit would allow emissions of toxic pollutants, including formaldehyde and ammonia, from equipment that is associated with “insignificant activities” and thus claimed as “exempt.” DAQ did not perform the necessary analysis to see if these emissions would exceed health based safety standards when combined with other toxic emitters nearby. DAQ should rescind the draft air quality permit and require the ACP to obtain an air toxic permit that fully evaluates the public health risks. Hearing Officer’s Response to These Comments The commenter’s statement that the insignificant activities are claimed as being exempt from toxics modeling is incorrect. Only sources identified in 15A NCAC 02Q .0702(a)(1) through (a)(25) are exempt from toxics modeling. See the Hearing Officer’s response to the comment in Section IV.H.1 above for discussion on modeling of nearby sources. 2. Ammonia Modeling Comment: DAQ determined that an air toxics permit was not needed for the facility’s ammonia emissions. Ammonia emissions require air toxics permit and air dispersion modeling for the following reasons: o The facility ammonia emissions were compared to the TPER for facilities “where all emission release points are unobstructed and vertically oriented,” pursuant to 15A NCAC 02Q .0711(b). Diagrams were not included in the application that would show the emissions points from storage tanks, but these emission points are likely to be obstructed or non-vertically oriented. Therefore, DAQ cannot assume that emissions points from storage tanks are vertically oriented or unobstructed. Thus, the facility should have been subject to the 15A NCAC 02Q.0711(a) regulations, for “…any facility where one or more emission release points are obstructed or non- vertically oriented….” The compressor stations’ projected emissions of 2.83 pounds per hour of ammonia, are greater than 0.68 lb/hr TPER under subsection (a). o If DAQ determines that emissions release sources are unobstructed and vertically oriented, the emissions from the three turbines (2.83 lb/hr) are 0.01 lb/hr below the TPER for ammonia (2.84 lb/hr) for a source subject to 15A NCAC 02Q.0711(b). When a source is so close to the limit, and given the real-world uncertainty of actual emissions, including any possible fugitive ammonia emissions from the storage tank, DAQ should have required an air toxics permit for ammonia. Hearing Officer’s Response to These Comments The commenter stated when conducting the toxics analysis to determine which pollutants were being emitted at a rate higher than the TPER contained in 15A NCAC 02Q .0711, ACP should have used the table in 02Q .0711(a) for “facilities where one or more emission release points are obstructed or non- vertically oriented” because storage vessels typically have non-vertical or obstructed release points. The permit engineer, Charles McEachern, P.E., contacted ACP to request clarification on the release points from the storage tanks. In a November 30, 2017, email response, ACP provided the following information on the tanks: Hearing Officer’s Report – Northampton Compressor Station Public Hearing – November 15, 2017 Page 23 of 29 “TK-1 (Pipeline Liquids Storage Tank aka Hydrocarbon Tank) will receive and store pipeline liquids captured by the station’s separators and filter-separators. The emissions associated with the operation of this Hydrocarbon storage tank are estimated using E&P Tanks to ensure capture of any flash emissions (which the EPA TANKS program cannot estimate). We conservatively estimated that this storage tank will complete five (5) turnovers per year. The tank normal vent is vertical. TK-2 (Accumulator Tank) receives liquids from the compressor building and auxiliary building floor drains. The emissions associated with the operation of this Accumulator waste tank were calculated using EPA’s TANKS program. The tank normal vent is vertical. TK-3 (Aqueous Ammonia Storage Tank) will have no emissions during normal operation.” In addition, ACP provided diagrams for the three tanks, which show that the two tanks have vertical emission release points and that the ammonia tank is a pressure tank.15 Based on the information provided by the applicant, DAQ determined that it was appropriate to compare facility-wide emissions to the TPERs table in 15A NCAC 02Q .0711(b). The commenter also stated that that the compressor station’s actual operation emissions could exceed the TPER because the potential ammonia emissions for the compressor station are close to the TPER in 15A NCAC 02Q .0711(b) and therefore a permit limit is required. The TPERs apply to actual emissions, but because the Northampton Compressor Station is a new facility, the emissions used for the TPER analysis represent maximum potential emissions. However, to address this concern, the Hearing Officer recommends that a TPER table be added to the draft air quality permit for the TAPs evaluated. The emission rates in TPER table would not be emission limits, but would be levels for which, if exceeded, action would be needed. 3. Use of Exemption 15A NCAC 02Q .0702(25) Comment: DAQ incorrectly applied 15A NCAC 02Q .0702(25), which exempts from the requirement to obtain an air quality permit, “natural gas and propane fired combustion sources with an aggregate allowable heat input value less than 450 million Btu per hour that are the only source of benzene at the facility.” In its revised application, ACP reported that the only source of benzene would be from natural gas combustion from turbines. However, the ACP permit application reveals that there is at least one additional source of benzene emissions at the facility. According to Attachment C of the amended application, the hydrocarbon waste storage tank (ID No. I-TK-1)16 is listed as a source of TAPs. Removing the exemption for the compressor turbines means that the facility-wide benzene emissions are greater than the TPER for benzene and an air toxics permit should have been required for the facility. Hearing Officer’s Response to These Comments The Hearing Officer has reviewed the permit application and agrees that the hydrocarbon waste storage tank (ID No. I-TK-1) is likely a source of benzene emissions because the program output presented in the application shows that benzene is expected to be present in the hydrocarbon liquid. As discussed in the response to the comment in Section IV.C.2, above, the hydrocarbon waste storage tank, which accepts hydrocarbon liquids from the separator, is a source of what is referred to as flash emissions. Flash emissions occur when the liquid from this high-pressure separator (according to the permit application, the separator pressure is 552 pounds per square inch gauge (psig)) are transferred to an atmospheric tank. Whe n it enters the tank, the volatile compounds dissolved in the liquid are quickly released (i.e., flashed). The relationship between emissions and throughput is linear. Therefore, due to the very low throughput 15 The email and attachments can be found in Attachment E of this hearing report. 16 NOTE: The commenter incorrectly identified the hydrocarbon waste storage tank as ID No. I-TK-2 in their comment letter. The ID number for the waste oil tank is I-TK-2. Hearing Officer’s Report – Northampton Compressor Station Public Hearing – November 15, 2017 Page 24 of 29 of hydrocarbon liquids projected to be stored in the tank, the API’s E&P Tanks Program output reported benzene emissions of 0.000 lb/hr. It is likely that if the program reported emissions using scientific notation, rather than three decimal places, some benzene emissions would be present. Therefore, the Hearing Officer believes that if the program were run using a higher throughput, the program output would report benzene emissions greater than zero. As a result, the Hearing Officer has determined that the exemption in 15A NCAC 02Q .0702 does not apply because the combustion sources (i.e., turbines, engines, and boilers) are not the only source of benzene at the proposed compressor station. As such, the Hearing Officer recommends that ACP conduct an analysis to determine whether any of the TAPs (including benzene) emitted from the compressor station are greater than the TPERs in 15A NCAC 02Q .0711 and if so, conduct a modeling analysis to determine compliance with the AALs in 15A NCAC 02D .1104. Pending the outcome of the toxics analysis, the Hearing Officer recommends that the air quality permit be modified as required. J. Comments Regarding Health and Well-Being of the Surrounding Communities Comment: Several commenters (*Exum, *Murphy, *Clark, *Ethridge, *Vick, *Bearden, *Wagner, Scott, *Neal, Bissette, Wooten, Richmond, Sheline, Wood, Vanderbush, Stephenson, Ewing, Weir, Reynolds, Osterbrink, Henderson/WeatherCenter, Harris, Form Letter 1 17 Comments, Form Letter 2 18 Comments) expressed their concern for the health and well-being of the residents of the communities in and around the proposed compressor station due to the increase in toxic emissions. In support of their comments, the following points were made: • Reports document that health problems, such as breathing problems, COPD, cancers, birth defects, skin irritations, result from the VOC being emitted from the compressor station. One commenter stated their opposition to any increase in emissions. The commenter indicated that they preferred zero emissions and that solar, wind and battery storage should be used instead. The commenter stressed their belief that fossil fuels should be phased out and that we should not be increasing capacity. • An October 2017 study by the Southwest Pennsylvania Environmental Health Project indicates that every compressor station releases large volumes of chemicals into the air. The air impacts the entire state. • A report compiled by the NC NAACP says the overall cancer rate in the county is higher now than the State average, with 517 cases per 100,000 people, compared to 489 cases per 100,000 people across the state. Lung and bronchial cancers occur at a rate of 81 cases per 100,000 people in the county, while the State average is 70 cases. • What is the impact of pollution from the compressor station on children and on the earth. The commenter stated that injection of chemicals into the earth to extract the natural gas was harmful. • Studies showed that, due to air pollution, people living near compressor stations have benzene in their blood and in their urine in higher concentrations than those that do not live near compressor stations. • A study connected to pipelines stated that “exposure to air pollution is known to cause a vast array of health problems…” and the study found that there was an increase in bone fractures due to particulate emissions. • People living downwind of the compressor station and the pipeline are inhaling toxic fumes that are released or leaked. They may not even be aware of the poor air quality conditions if they can’t smell noxious or acrid odors. Repeated exposure to high, short-term doses of toxic gases puts individuals with compromised lung function at greater risk. • The compressor station threatens the health of the surrounding community and requires additional scrutiny. Pollution from this facility would likely lead to adverse health effects to the surrounding population. In its Environmental Impact Statement (EIS) for the pipeline, the FERC recognized the 17 See Attachment C.4 for the text of Form Letter No. 1. 18 See Attachment C.4 for the text of Form Letter No. 2. Hearing Officer’s Report – Northampton Compressor Station Public Hearing – November 15, 2017 Page 25 of 29 health risks from pollution from the ACP’s compressor stations. The studies cited by the FERC found elevated concentrations of dangerous pollutants from samples collected near compressor stations. These include VOC, fine particulate matter, and gaseous radon. • ACP has been inadequate in supplying data on projected impacts from the proposed compressor station and have not proven they have taken the necessary steps and precautions to safely and efficiently install a pipeline. • DAQ should conduct a proximity analysis and demographic analysis to determine the special health risks associated with the population in this community. • NOX and VOC will contribute to formation of elevated nitrogen oxide and ozone levels that will adversely affect public health. • Mental health issues from the compressor station are often overlooked. Stress over health impacts to family members or themselves, rapid change to the surrounding area, increased noise and increased traffic all contribute. Hearing Officer’s Response to These Comments The State and federal air regulations that apply are designed to safeguard the public from adverse health effects from this facility. In addition to the State and federal air regulations, as stated above, ACP will voluntarily be putting into place additional requirements for testing, monitoring, and control. The siting of the facility has undergone local zoning review for proper siting of the facility. The draft permit was written such that compliance with the permit will also mean compliance with all State and federal air quality regulations. It is beyond the purview of this hearing report to evaluate the facility siting and existing air quality regulations. Furthermore, because ACP is voluntarily reducing emissions to levels well below the emission standards, the Hearing Office recommends that no further action by DAQ is necessary in response to these comments. K. General Comments Not Directly Related to the Expressed Intent of the Public Hearing. Several commenters submitted emails and spoke at the public hearing to express their opposition for various aspects of the pipeline project as a whole and did not address specific concerns with the current draft air quality permit or the permitting process involved in drafting the permit. Although these comments are not directly related to the draft air quality permit for the Northampton Compressor Station, they reveal the passion many in the general public feel about issues related to the proposed compressor station and the ACP Project in general. All comments were reviewed to determine whether they would impact the draft air quality permit and are summarized below. 1. Comments Related to the Northampton Compressor Station Comment: Several commenters (*Hutchby, Ambrose, Rodgers, Adams, Bissette, Sheline, Stephenson, Ewing, Henderson/WeatherCenter, Harris, Form Letter No. 2 19 Comments) expressed concern with the noise pollution created by the compressor station. o Sound waves are carried through the air and the air permit does not address excessive noise. o According to a study conducted by the University of Maryland, noise from these compressor stations can be heard from up to a mile away. o Even if the average noise level is within the federal limit, the fact that it is incessant, and that it can exceed those levels during blowdowns and other operational excursions, only adds to the stresses that would be faced by residents within a few miles of the facility. o Hearing aids cost $2,000/ear and people with no insurance cannot afford them. According to the commenter, the two 22,000 horsepower engines would cause excessive noise. o By regulations the noise level of a compression stations should not exceed an average day-night sound level of 55 decibels at the nearest noise sensitive area. There is documentation that at 19 See Attachment C.4 for the text of Form Letter No. 2. Hearing Officer’s Report – Northampton Compressor Station Public Hearing – November 15, 2017 Page 26 of 29 certain times and under certain conditions this limit is exceeded, sometimes to 100 decibels. In any case there is an unnatural noise that disrupts lives of residence and animals in the area. Negative health effects include severe headache, sleep disturbances, depression, tiredness, anxiety to name a few. Hearing Officer’s Response to These Comments While the comments received were thoughtful and worth considering in the proper forum, these comments received are not directly related to the Northampton Compressor Station air quality permit application or the air quality permitting process. As such, these comments fall outside the purview of this hearing report and are therefore not directly addressed. However, it should be noted that the consultant for ACP on the permit application spoke during the public hearing and indicated that the Environmental Impact Statement prepared for the Federal Energy Regulatory Commission (FERC) included a noise assessment. The Hearing Officer reviewed this document, in which ACP states the following: “Our noise evaluations incorporate noise level reductions from the companies’ proposed mitigation measures. Noise controls for the compressor buildings include acoustical specifications for wall, roof, and entry door materials; prohibition of windows or skylights; and acoustical specifications for the ventilation system. [ACP] would implement noise mitigation measures for the proposed and modified compressor stations. These measures include, but are not limited to: • exhaust silencers; • air intake cleaner/silencers and air intake duct acoustic insulation; • noise attenuating materials for wall, roof, and doors of compressor buildings; • lubrication oil cooler maximum noise level of 50 dBA at 50 feet; • ventilation air inlet and discharge mufflers; • acoustical insulation for aboveground piping; and • unit blowdown silencers (60 dBA at 50 feet).” Comment: Fifty-five commenters submitted letters via email to express their opposition to the Northampton Compressor Station in general. Outside of the concerns raised in the previous sections above, these commenters did not provide additional information. These commenters are identified and their full comments are included in Attachment C.3. Hearing Officer’s Response to These Comments While these comments are related to the Northampton Compressor Station, they have been addressed in the sections above and will not be addressed here. 2. Comments Expressing Opposition to the Atlantic Coast Pipeline Project • Comment: Several commenters (*Exum, *Joyner, *Ethridge, *Faircloth, *Cook, Nyland (Lars), Nyland (Lauren), Manigrasso, Raines) referred to the claims that there would be additional jobs created by the project. o The claim of increases in jobs for residents are not believable. o Temporary jobs may be created but not permanent jobs and that people will not move to the area to work because of the toxic air pollution and danger. o Jobs are available now but people are not taking them. o The jobs created by the pipeline would not last after the pipeline was built. o The jobs created would only be for highly educated people and not people that did not have college degrees. o Jobs created will be filled by people profiting by the project. Hearing Officer’s Report – Northampton Compressor Station Public Hearing – November 15, 2017 Page 27 of 29 • Comment: Many commenters (*Taylor, *Faircloth, *Murphy, Nyland (Lars), Nyland (Lauren), Manigrasso, Adams, Bissette, Sheline, Garbutt, Raines, Tatta, Sasser) stated that the pipeline is not necessary. o Natural gas from the ACP is not necessary for economic development and will increase electric utility costs in affected counties in Virginia and North Carolina. o Energy use in North Carolina is flat and the additional energy provided by the pipeline natural gas is not needed. o Sun, wind, and battery storage could supply 100 percent of North Carolina’s electricity needs and will allow the country to transition away from petroleum to electric vehicles. o Incorrect and outdated assumptions about the costs, benefits and public necessity of building the Atlantic Coast Pipeline may lock us into a costly and dangerous future. o The pipeline will create future threats that will make it more likely that the pipeline will be damaged by storms, flooding, and other climate catastrophes. DEQ should require a Hazard Assessment Plan and provide a full report to the public for comment. o DEQ should perform a baseline study using camera traps to document pre-existing number and varieties of birds, amphibians, and mammals and ensure their protection along the length of the pipeline. o There have been documented studies and reports published that states the pipelines currently in place are sufficient to meet the current and future needs. A study (Sept 12, 2016) by Synapes Energy Economics, Inc. found that “given existing pipeline capacity, exiting natural gas storage, the expected reversal of the direction of flow on the existing Transco pipeline, and the expected upgrade of the existing Columbia pipeline, the supply capacity of the Virginia-Carolinas region’s existing nature gas infrastructure is MORE than sufficient to meet expected future peak demands. • Comment: Many commenters (*Taylor, *Grant, *Pair, *Joyner, Geffner, Ambrose, Bennett/Owens, Raines, Tatta, Sasser) were concerned about the blast zone and pipeline safety. 20 o The proximity of their residences to the blast zone was of concern. Reference was made to the 2010 pipeline explosion in California as proof that the pipelines are dangerous. o The streets that were within the blast zone were identified. o Concern was expressed that people living within or close to a blast zone might not be aware. o Concern was expressed regarding compressor station accidents and news reports of explosions and fires at compressor stations. o Is adequate funding for local emergency response staff to handle and contain explosions? o The ACP crosses more than 1300 parcels of land and an explosion would endanger homes and families as well as farm animals and pets. o One commenter asked what measures would be put in place to prevent leaks or explosions. • Comment: Some commenters (*Pair, *Joyner, *Winstead) questioned who would benefit from the pipeline. o No one working for Dominion lives near a compressor station and that only Duke and Dominion and those associated with them benefit from this pipeline. o Only investors will benefit from the pipeline, not the impacted community. o The pipeline company will make billions of dollars but who pays for injuries? • Comment: Some commenters (*Winstead, Ambrose, Girolami) expressed their distrust of Dominion and energy corporations in general, as well as EPA. o Concern was expressed that Dominion would eventually extend the pipeline into South Carolina. How will Dominion Energy’s plans to extend the ACP pipeline into South Carolina (for the LNG export market?) alter the design requirements for this permit? o The amount of gas being promised to North Carolina would eventually go to South Carolina and be sold at an liquified natural gas (LNG) plant in Georgia. 20 The “blast zone” is the area that would be impacted should the pipeline explode. Hearing Officer’s Report – Northampton Compressor Station Public Hearing – November 15, 2017 Page 28 of 29 o Ads for the proposed ACP claim a need for the pipeline and benefits to NC’s economy that do not ring true to affected property owners. Eminent domain is a real issue–threatening the property rights of long-time landowners–and is considered as a taking of land. o In March of 2017, EPA Administrator Scott Pruitt announced a withdrawal of its Information Collection Request from the oil and gas sector to respond to the EPA survey of methane pollution from existing sources to identify sources of methane emissions and develop and apply standards. In the prevailing political climate, any federal studies to identify and correct air emission regulatory gaps and strengthen enforcement are not likely. o ACP appears to fail to acknowledge the broad scope of impacts that would result from the proposed pipeline. • Comment: Several commenters (Nyland (Lars), Nyland (Lauren), Manigrasso, *Joyner, Raines, Reynolds, Tatta, Sasser) expressed concern with the impact of the pipeline on their property. o The proposed pipeline will damage farmland now and into the future. Farmers with pipelines on their property note that the yield has decreased. • Comment: Six hundred and six (606) commenters submitted letters via email to express their opposition to the Atlantic Coast Pipeline project in general. In addition to those concerns raised in the previous bulleted comments, these commenters cited various reasons for their opposition, including, but not limited to: a need to transition away from fossil fuels and toward renewable energy, health effects of residents along the pipeline, impact on tourism in the State, and mental health effects of the pipeline. These comments are included in Attachment C.6. Hearing Officer’s Response to These Comments While the comments received were thoughtful and worth considering in the proper forum, these comments received are not directly related to the Northampton Compressor Station air quality permit application or the air quality permitting process. As such, these comments fall outside the purview of this hearing report and are therefore not directly addressed. L. Comments Expressing Support for the Atlantic Coast Pipeline and the Northampton Compressor Station Several commenters (*Brown, *Betts, *Hughes, *Heaton, *Hoque, *Glover (Catherine), *Greene, *Warner, *Worsinger, *Glover (Matt), *Ausby, True, Williams, Form Letter Nos. 6 through 11 21 Comments) expressed their support for the pipeline project and the location of the compressor station. In support of their comments, the following points were made: • The site has an unusually large buffer (6,100 feet from the nearest commercial structure, and 7,000 feet from the nearest residence) to minimize impacts. • Companies are considering locations in Northampton County but need access to the gas the pipeline will provide. This will create jobs. • The pipeline and compressor station have been designed to very exacting standards (lowest emitting compressors, additional controls) and will be monitored continuously (via air and foot patrol). o The station will use a turbine design that includes SoLoNOx technology to minimize NOX emissions. o Further reductions will be achieved by a selective catalytic reduction system. o The NOX emission rate represents the lowest permitted level for turbines currently in compression service. o Oxidation catalysts will be installed to reduce VOC (including HAPs) and CO emissions. • The commenter also stated that existing station in the Pleasant Hill community have operated for decades without incident, other than occasional mercaptan odor. • Dominion is very safety conscious. Employees will be highly trained and certified by various industries. 21 See Attachment C.7 for text of Form Letters Nos. 6 through 11. . Ambient air quality modeling and noise impacts were conducted for the FERC report. . Pipeline transport of natural gas is safer than rail or truck transport. 2.5 million miles of pipeline in the United States and incidents are very rare. . Proposed operation of the pipeline and its compressor stations are part of Duke and Dominion's plans to shut down seven coal-fired power plants and install thousands of megawatts of solar power, backed by additional gas-fired generation. . The pipeline provides urgently needed infrasbucture that will bring lower-cost energy supplies and new economic development. Hearin Officer's Res onse to These Comments These coiiunents are helpful to provide additional infomiation regardmg the Northampton Compressor Station along with background information used in the development of the pennit application. The mfonnation provided in these comments was reviewed by the Hearing Officer and when verified independently by information available, it was used in responses elsewhere in this report and will not be further addressed. V. Conclusions and Recommendations ACP has provided all data necessary to show that the proposed compressor station can meet the applicable State and federal air quality regulations. After considering all the public comments related to the issue of whether or not the DAQ should issue an air quality permit to ACP to allow the constmction and operation of a natural gas compressor station at 718 Forest Road, Pleasant Hill, Northampton County, NC, the following recommendations are made: . ACP should conduct an analysis to determine whether any of the TAPs emitted from the compressor station are greater than the TPERs in 15A NCAC 02Q .0711 and if so, conduct a modeling analysis to determine compliance with the AALs in 15A NCAC 02D .1104. Once the analysis is submitted, DAQ will review the analysis to determine that the modeling was conducted using EPA modeling guidance and that the emissions used in the analysis adequately represent short-term and annual emissions. It is expected that the modeling analysis will show that even under worst-case operation conditions, the proposed plant would meet all ambient air emission standards for toxic air pollutants. The draft permit should be modified to include TAP emission limits based on the emission rate used in the modeling analysis. . DAQ should include in the final air quality permit, a table ofTPERs for all TAPs for which an analysis was conducted and it was detennined that facility-wide emissions were below the TPER. If the modeling analysis demonstrates compliance with the AALs, it is the recommendation of the Hearing Officer that the Air Permit 10466ROO be issued. Heather P. Sands, P.E., Hearing Officer 3J ^0;< Date Hearing Officer's Report - Northampton Compressor Station Public Hearing - November 15,2017 Page 29 of 29 (This page is intentionally blank.)