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HomeMy WebLinkAboutDAQ-2024-0081241/23/24, 11:20 AM State of Utah Mail - Pioneer Investments-Phillips 66- RACT Analysis https://mail.google.com/mail/u/0/?ik=539c285453&view=pt&search=all&permmsgid=msg-f:1785304411268167894&simpl=msg-f:17853044112681678…1/1 Ana Williams <anawilliams@utah.gov> Pioneer Investments-Phillips 66- RACT Analysis Bosch, Morgan N <Morgan.N.Bosch@p66.com>Thu, Dec 14, 2023 at 5:09 PM To: "anawilliams@utah.gov" <anawilliams@utah.gov> Hi Ana, See the attached RACT Analysis for the Pioneer Investments' Phillips 66 North Salt Lake Pipeline and Distribution Terminal. Please let me know if you have any questions. Thank you, Morgan Bosch Environmental Specialist M: (+1) 406-850-5969 Northwest Region | 2626 Lilian Avenue | Billings, MT 59101 P66_RACT_Analysis_121423.pdf 3053K Morgan N. Bosch Environmental Specialist Phillips 66 Midstream Operations Phillips 66 Company 2626 Lillian Avenue Billings, MT 59101 Mobile: 406.850.5969 Office: 406.255.5711 E-mail: morgan.n.bosch@p66.com December 41, 2023 Ana Williams Air Quality Policy Section Utah Division of Air Quality Department of Environmental Quality anawilliams@utah.gov RE: AO DAQE-AN101330021-22, Pioneer Investments Corporation-Phillips 66 Company, North Salt Lake Products Terminal, Serious Ozone Nonattainment Area Designation- RACT Analysis Dear Ana Williams, Pioneer Investment Corporation- Phillips 66 Company (P66) is submitting this RACT analysis for the emission units at our North Salt Lake Pipeline Terminal (facility) located at 245 East 1100 North in Davis County. This RACT analysis discusses the information detailed in the letter from the Division of Air Quality regarding the Next Steps and RACT Requirements (attached). Please contact me at morgan.n.bosch@p66.com or (406) 850-5969 with any questions or if you require additional information. Sincerely, Morgan. N. Bosch Environmental Specialist Reasonably Available Control Technology Analysis North Salt Lake Products Terminal Pioneer Investments Corporation – Phillips 66 Corporation 245 East 1100 North North Salt Lake, Utah 84054 Prepared by: SLR International Corporation 1612 Specht Point Road, Suite 119, Fort Collins, Colorado, 80525 SLR Project No.: 118.01357.00013 Report Issue Date: December 14, 2023 Pioneer Investments Corporation – Phillips 66 Corporation Reasonably Available Control Technology Analysis Report Issue Date: December 14, 2023 SLR Project No.: 118.01357.00013 i Reasonably Available Control Technology Analysis North Salt Lake Products Terminal Prepared for: Pioneer Investments Corporation – Phillips 66 Corporation 245 East 1100 North North Salt Lake, Utah 84054 This document has been prepared by SLR International Corporation. The material and data in this report were prepared under the supervision and direction of the undersigned. SLR International Corporation Jamie Christopher Senior Principal Engineer Kenny Malmquist Senior Principal Engineer Pioneer Investments Corporation – Phillips 66 Corporation Reasonably Available Control Technology Analysis Report Issue Date: December 14, 2023 SLR Project No.: 118.01357.00013 ii Table of Contents 1.0 Introduction and Background ......................................................................................1-1 2.0 Facility Description .......................................................................................................2-1 3.0 Facility Baseline Actual Emissions and Current PTE .................................................3-1 4.0 RACT Methodology .......................................................................................................4-1 4.1 Top-Down RACT Analysis Approach ......................................................................4-1 4.1.1 Step 1: Identification of Available Control Technology Options .......................4-1 4.1.2 Step 2: Technical Feasibility of Control Options .............................................4-1 4.1.3 Step 3: Ranking of Technically Feasible Control Options ...............................4-2 4.1.4 Step 4: Energy, Environmental, and Economic Impacts .................................4-2 4.1.4.1 Cost Analysis Methodology ................................................................4-3 4.1.4.2 Capital Costs ......................................................................................4-4 4.1.4.3 Annualized Costs ...............................................................................4-4 4.1.4.4 Cost Effectiveness ..............................................................................4-5 4.1.5 Step 5: Select RACT ......................................................................................4-5 5.0 RACT Analysis NOx .......................................................................................................5-1 5.1 Diesel-Fired Emergency Engines NO x RACT Analysis............................................5-1 5.1.1 Step 1 – Identify all Reasonably Available NOx Control Technologies ............5-1 5.1.1.1 Federal O&M Practices ......................................................................5-2 5.1.1.2 Engine Design ....................................................................................5-2 5.1.1.3 Non-Selective Catalytic Reduction (NSCR) ........................................5-3 5.1.1.4 Selective Non-Catalytic Reduction (SNCR) ........................................5-3 5.1.1.5 Selective Catalytic Reduction (SCR)...................................................5-3 5.1.2 Step 2 & 3 - Technical Feasibility of NOx Controls ..........................................5-4 5.1.3 Step 4 – Evaluation of Feasible Control Options ............................................5-5 5.1.3.1 Selective Catalytic Reduction .............................................................5-5 5.1.4 Step 5 - CI-ICE NOx RACT Determination ......................................................5-5 6.0 RACT Analysis – VOCs .................................................................................................6-1 6.1 RACT for Loading Racks ........................................................................................6-1 6.2 RACT for Vertical Fixed Roof Storage Tanks ..........................................................6-3 6.2.1 Step 1 – Identify all Available VOC Control Technologies ..............................6-4 6.2.2 Step 2 – Technical Feasibility of VOC Control Technologies ..........................6-4 6.2.2.1 Closed Vent System/Vapor Recovery/Route to Control Device ..........6-4 6.2.2.2 Retrofitting VFRT with IFR ..................................................................6-4 Pioneer Investments Corporation – Phillips 66 Corporation Reasonably Available Control Technology Analysis Report Issue Date: December 14, 2023 SLR Project No.: 118.01357.00013 iii 6.2.2.3 Application of Tank Standards ............................................................6-5 6.2.3 Step 5 – RACT Selection ...............................................................................6-7 6.3 RACT for Internal Floating Roof Storage Tanks ......................................................6-7 6.3.1 Step 1 – Identify all Available VOC Control Technologies ..............................6-8 6.3.1.1 NSPS Subpart Kb ...............................................................................6-8 6.3.1.2 40 CFR Part 63 Subpart WW Controls ...............................................6-8 6.3.1.3 Installation of a Vapor Recovery System ............................................6-9 6.3.2 Step 2 - Technical Feasibility of Control Technologies ...................................6-9 6.3.3 Step 3 - Effectiveness of Feasible Control Technologies ................................6-9 6.3.4 Step 4 – Evaluation of Feasible Control Technologies ...................................6-9 6.3.5 Step 5 – RACT Selection ...............................................................................6-9 6.4 RACT for External Floating Roof Storage Tanks ...................................................6-10 6.4.1 Step 1 – Identify all Available VOC Control Technologies ............................6-10 6.4.2 Step 2 - Technical Feasibility of Control Technologies .................................6-10 6.4.3 Step 3 - Effectiveness of Feasible Control Technologies ..............................6-11 6.4.4 Step 4 – Evaluation of Feasible Control Technologies .................................6-11 6.4.5 Step 5 – RACT Selection .............................................................................6-11 6.5 RACT for Equipment Leaks ..................................................................................6-11 7.0 Summary of NOx and VOC RACT Analyses .................................................................7-1 Tables Table 2-1 Non-Tank Emission Sources Table 2-2 NSL Terminal Storage Tanks Table 3-1 P66 NSL Terminal Facility Emissions Table 3-2 P66 NSL Terminal Facility PTE Emissions by Sources Table 5-1 Technical Feasibility of Diesel-fired CI-ICE NOx Controls Table 6-1 Vertical Fixed Roof Tanks at NSL Terminal Table 6-2 Summary of NSPS Subpart Kb Applicability and Control Thresholds Table 6-3 Internal Floating Roof Tanks at NSL Terminal Table 6-4 External Floating Roof Tanks at NSL Terminal Table 7-1 Summary of RACT Determinations for Each Source Pioneer Investments Corporation – Phillips 66 Corporation Reasonably Available Control Technology Analysis Report Issue Date: December 14, 2023 SLR Project No.: 118.01357.00013 iv Appendices Appendix A 2017 Emission Inventory Pioneer Investments Corporation – Phillips 66 Corporation Reasonably Available Control Technology Analysis Report Issue Date: December 14, 2023 SLR Project No.: 118.01357.00013 1-1 1.0 Introduction and Background On May 31, 2023 the Utah Division of Air Quality (UDAQ) sent a letter to Pioneer Investments Corporation – Phillips 66 Corporation (Phillips 66) regarding the opportunity to provide a Reasonably Available Control Technology (RACT) analysis for sources of nitrogen oxides (NO x) and volatile organic compounds (VOCs) at the Phillips 66 North Salt Lake Products Terminal (NSL Terminal) in support of the Northern Wasatch Front (NWF) ozone nonattainment area (NAA) Serious State Implementation Plan (SIP). The NWF ozone NAA (includes all or part of Salt Lake, Davis, Weber, and Tooele counties) was recently reclassified to moderate status on November 7, 2022. The NWF ozone NAA is required to attain the ozone standard by August 3, 2024, for moderate classification. Recent monitoring data indicates the NWF ozone NAA will not attain the standard, hence will be reclassified to serious status in February of 2025. The reclassification to serious status will trigger new control strategy requirements for major sources in the NWF ozone NAA. The Clean Air Act (CAA), under Section 182(c) and (f) and more specifically the Ozone Implementation Rule in 83 FR 62998 requires State Implementation Plans (SIPs) for ozone NAAs classified as “Moderate” or higher to include requirements for existing major sources of ozone precursor pollutants (NO x or VOCs) to apply RACT. A major stationary source in a serious ozone NAA is defined as any stationary source that emits or has the potential to emit 50 tons per year (tpy) or more of NOx or VOCs. The UDAQ has identified the NSL Terminal as having the potential to emit 50 tpy or more of NO x and/or VOCs. The current Approval Order DAQE-AN1013330021-22 (April 20, 2022), limits NO x emissions to 11.9 tpy, and VOC emissions to 69.2 tpy. The NSL Terminal will be considered a major stationary source when the NWF ozone NAA is reclassified to Serious in February 2025. Therefore, according to the May 31, 2023, letter from UDAQ, Phillips 66 has two options: 1. Prepare and submit a RACT analysis for the emission units at the NSL Terminal by January 2, 2024; or 2. Prepare and submit a Notice of Intent (NOI) application to lower the potential to emit from the NSL Terminal to below 50 tpy for NO x and VOCs by July 31, 2023. Phillips 66 notified UDAQ they would be preparing a RACT analysis for the NSL Terminal. This document provides the results of the RACT analysis for NO x and VOC emissions from the NSL Terminal. Section 2 contains information describing the facility, site location, and existing equipment. Details of the baseline emissions used to conduct the analysis presented herein can be found in Section 3. Section 4 provides a discussion of RACT methodology. The NO x and VOC RACT analyses can be found in Sections 5 and 6. Section 7 provides a summary of the NO x and VOC RACT analyses determinations per emission unit/source. Pioneer Investments Corporation – Phillips 66 Corporation Reasonably Available Control Technology Analysis Report Issue Date: December 14, 2023 SLR Project No.: 118.01357.00013 2-1 2.0 Facility Description Phillips 66 owns and operates the NSL Terminal located in North Salt Lake, Utah (Davis County). The NSL Terminal is a fuel distribution tank farm that sends gasoline and distillate fuel through pipeline systems to Idaho and Nevada. The NSL Terminal also loads transport trucks for delivery of fuel to various gasoline and distillate fueling stations throughout the area. The NSL Terminal’s operating schedule is 24 hours per day, 7 days per week, 365 days per year (8,760 hours per year [hr/yr]). Emissions of concern at the facility are VOCs emitted primarily from product loading, storage tanks, and fugitive emissions from piping components. NO x emissions are also emitted from the flares controlling the loading operations, and from a diesel-fired emergency generator. The current Approval Order DAQE-AN1013330021-22, limits NO x emissions to 11.9 tpy, and VOC emissions to 69.2 tpy. The loading racks are limited to 14,500,000 barrels of gasoline throughput per 12-month period, and the storage tanks are limited to 20,430,000 barrels of gasoline and 12,021,782 barrels of distillate fuel throughput per 12-month period. The total of all gasoline loading racks at the NSL Terminal is an “affected facility” for purposes of Federal New Source Performance Standards (NSPS), 40 CFR Part 60, Subpart XX—Standards of Performance for Bulk Gasoline Terminals ("NSPS XX”). The affected facility is equipped with a vapor collection system designed to collect the total organic compound (TOC) vapors displaced from tank trucks during product loading and TOC emissions from loading operations are limited. For purposes of National Emission Standards for Hazardous Air Pollutants for Source Categories (NESHAP), 40 CFR Part 63, the NSL Terminal is an area source of hazardous air pollutants (HAP). The NSL Terminal is a Gasoline Bulk Terminal regulated by NESHAP Subpart BBBBBB ("NESHAP BBBBBB”). The NSL Terminal is subject to NESHAP BBBBBB emission limitations and work practice standards for reducing emissions from gasoline storage tanks, storage tanks, gasoline loading racks, vapor collection-equipped gasoline cargo tanks, and certain equipment components in vapor or liquid gasoline service. The emergency diesel-fired reciprocating internal combustion engine (RICE) is subject to work practice standards for stationary emergency compression ignition RICE located at an area source of HAP in Subpart ZZZZ—National Emissions Standards for Hazardous Air Pollutants for Stationary Reciprocating Internal Combustion Engines (“NESHAP ZZZZ”). Table 2-1 presents the primary sources of VOC and NO x emissions at the facility that are not tanks as well as associated controls and/or regulatory requirements. The flares controlling the loading racks account for 10.2 tpy of the total 11.9 tpy NO x emissions emitted at the facility. The emergency generator limited to 100 hr/yr annual operation makes up the remainder (1.7 tpy) of the total NOx emissions. Table 2-2 provides an inventory of the storage tanks by type, capacity, and product stored that are permitted to operate at the NSL Terminal. Pioneer Investments Corporation – Phillips 66 Corporation Reasonably Available Control Technology Analysis Report Issue Date: December 14, 2023 SLR Project No.: 118.01357.00013 2-2 Table 2-1 Non-Tank Emission Sources Emission Source Description Control/Regulatory Requirement Loading Rack 1 Three Station, Bottom Load Two John Zink Flares LHT-2-20-25-X-1/10-2/20-X LHT-3-24-25-3/10-1/10-X NSPS XX, NESHAP BBBBBB Loading Rack 2 Three Station, Bottom Load Fugitive Emissions Piping (connectors and flanges), valves, pumps, and compressors LDAR AVO per NESHAP BBBBBB Emergency Generator 1,118 hp diesel-fired emergency stationary RICE Good operating practices, comply w/NESHAP ZZZZ, 100 hr/yr annual operation Pioneer Investments Corporation – Phillips 66 Corporation Reasonably Available Control Technology Analysis Report Issue Date: December 14, 2023 SLR Project No.: 118.01357.00013 2-3 Table 2-2 NSL Terminal Storage Tanks Tank Number Tank Type Year of Construction Nominal Capacity Product 201 External Floating Roof 1953 80,000 bbl Gasoline 204 Geodesic Dome Enclosed Floating Roof 1952 40,000 bbl Gasoline 211 External Floating Roof 1953 80,000 bbl Gasoline 214 External Floating Roof 1952 40,000 bbl Gasoline 221 External Floating Roof 1953 80,000 bbl Gasoline 225 Internal Floating Roof 1988 88,000 bbl Gasoline 228 Internal Floating Roof 2013 80,000 bbl Gasoline 202 Fixed Roof 1953 20,000 bbl Distillate 205 Fixed Roof 1953 30,000 bbl Distillate 206 Fixed Roof 1953 20,000 bbl Distillate/Renewable Diesel 215 Fixed Roof 1953 30,000 bbl Distillate 216 Fixed Roof 1953 20,000 bbl Distillate/Renewable Diesel 224 External Floating Roof 1953 20,000 bbl Distillate 227 Fixed Roof 2000 100,000 bbl Distillate 226 Internal Floating Roof 1992 9,400 bbl Transmix/Gasoline 212 Internal Floating Roof 1953 20,000 bbl Ethanol Pioneer Investments Corporation – Phillips 66 Corporation Reasonably Available Control Technology Analysis Report Issue Date: December 14, 2023 SLR Project No.: 118.01357.00013 3-1 3.0 Facility Baseline Actual Emissions and Current PTE The baseline and current potential to emit (PTE) from the P66 NSL Terminal processes and equipment are summarized in Table 3-1. The 2017 actual emissions were used as the baseline emissions. The current PTE values for P66 NSL Terminal were established by the most recent active Approval Order (AO) DAQE-AN101330021-22, issued April 20, 2022. Table 3-2 breaks the NOx and VOC PTE emissions out by source type. Table 3-1 P66 NSL Terminal Facility Emissions Pollutant 2017 Baseline Emissions Potential to Emit NOx 2.70 tpy 11.90 tpy VOC 56.0 tpy 69.75 tpy Table 3-2 P66 NSL Terminal Facility PTE Emissions by Sources Emission Source Description NOx (tpy)VOC (tpy) Loading Rack 1 Three Station, Bottom Load 10.17 25.4Loading Rack 2 Three Station, Bottom Load Fugitive Equipment Leaks --2.70 EGen 1,118 hp diesel-fired RICE 1.73 0.04 TNK 201 80,000 bbl Gasoline EFR Storage Tank --4.97 TNK 204 40,000 bbl Gasoline GD EFR Storage Tank --1.34 TNK 211 80,000 bbl Gasoline EFR Storage Tank --9.46 TNK 214 40,000 bbl Gasoline EFR Storage Tank --4.22 TNK 221 80,000 bbl Gasoline EFR Storage Tank --4.97 TNK 225 88,000 bbl Gasoline IFR Storage Tank --5.71 TNK 228 80,000 bbl Gasoline IFR Storage Tank --4.57 TNK 202 20,000 bbl Distillate FR Storage Tank --0.40 TNK 205 30,000 bbl Distillate FR Storage Tank --0.61 TNK 206 20,000 bbl Distillate FR Storage Tank --0.40 TNK 215 30,000 bbl Distillate FR Storage Tank --0.61 TNK 216 20,000 bbl Distillate FR Storage Tank --0.40 TNK 224 20,000 bbl Distillate EFR Storage Tank --0.08 TNK 227 100,000 bbl Distillate FR Storage Tank --2.03 TNK 226 9,400 bbl Transmix IFR Storage Tank --1.60 TNK 212 20,000 bbl Ethanol IFR Storage Tank --0.24 Total 11.9 69.75 Pioneer Investments Corporation – Phillips 66 Corporation Reasonably Available Control Technology Analysis Report Issue Date: December 14, 2023 SLR Project No.: 118.01357.00013 3-2 As discussed previously, the flares controlling the loading racks account for 10.2 tpy of the total 11.9 tpy NOx emissions emitted at the facility. Since these control devices meet NSPS XX and NESHAP BBBBBB standards, the NOx emissions from the flares controlling the Loading Racks will not be evaluated for RACT purposes, only the VOC emissions from the Loading Racks will be evaluated. The emergency generator limited to 100 hr/yr annual operation makes up the remainder (1.7 tpy) of the total NOx emissions. Pioneer Investments Corporation – Phillips 66 Corporation Reasonably Available Control Technology Analysis Report Issue Date: December 14, 2023 SLR Project No.: 118.01357.00013 4-1 4.0 RACT Methodology RACT is defined as devices, systems, process modifications, or other apparatus or techniques that are reasonably available taking into account social, environmental and economic impacts as well as the necessity of imposing such controls in order to attain and maintain a national ambient air quality standard. 4.1 Top-Down RACT Analysis Approach To conduct the RACT analysis, a top-down analysis was used to rank all control technologies. This approach, as outlined by the UDAQ1, consists of the following steps: 1. Identify All Reasonably Available Control Technologies 2. Eliminate Technically Infeasible Control Technologies 3. Rank Remaining Control Technologies Based on Capture and Control Efficiencies 4. Evaluate Remaining Control Technologies on Economic, Energy, and Environmental Feasibility 5. Select RACT. 4.1.1 Step 1: Identification of Available Control Technology Options The first step in a "top-down" RACT analysis is to identify all "available" control options. Available control options are those air pollution control technologies or techniques with a practical potential for application to the emissions unit and the regulated pollutant under evaluation. Air pollution control technologies and techniques include the application of production processes or available methods, systems, and techniques, including fuel cleaning or treatment or innovative fuel combustion techniques for control of the affected pollutant. The control alternatives must include not only existing controls for the source category in question, but also (through technology transfer) controls applied to similar source categories and gas streams, and innovative control technologies. Technologies required under lowest achievable emission rate (LAER) determinations are available for best available control technology (BACT) purposes but are inappropriate for RACT analyses purposes, but were still included as control alternatives, representing the top alternative. 4.1.2 Step 2: Technical Feasibility of Control Options In the second step, the technical feasibility of each control option identified in step one is evaluated with respect to source-specific factors. A demonstration of technical infeasibility must be clearly documented and show, based on physical, chemical, and engineering principles, that technical difficulties would preclude the successful use of the control option on the emissions unit under review. Technically infeasible control options are then eliminated from further consideration in the 1 https://deq.utah.gov/air-quality/reasonably-available-control-technology-ract-process-moderate-area-ozone-sip Pioneer Investments Corporation – Phillips 66 Corporation Reasonably Available Control Technology Analysis Report Issue Date: December 14, 2023 SLR Project No.: 118.01357.00013 4-2 RACT analysis. For example, in some cases the level of control in a permit is not achieved in practice (e.g., a source has received a permit, but the project was canceled, or every operating source at the permitted level has been physically unable to achieve compliance with the limit). If supporting documentation has been provided which shows why such limits are not technically feasible, then the level of control (but not necessarily the technology) may be eliminated from further consideration. 4.1.3 Step 3: Ranking of Technically Feasible Control Options In step 3, all remaining control alternatives not eliminated in step 2 are ranked and then listed in order of over-all control effectiveness for the pollutant under review, with the most effective control alternative at the top. Rankings are based on the level of emission control expressed as emissions per unit of production, emissions per unit of energy used, the concentration of a pollutant emitted from the source, control efficiency, or a similar measure. The control effectiveness listed will be representative of the level of emission control which can be achieved by the control technology at the operating conditions of the emission unit being reviewed. If the most effective control technology is selected as RACT, then Step 4 need not be completed. 4.1.4 Step 4: Energy, Environmental, and Economic Impacts After the identification of available and technically feasible control technology options, the energy, environmental, and economic impacts are considered to arrive at the final level of control. The analysis presents the associated impacts of the most stringent control option in the listing. Both beneficial and adverse impacts are discussed and quantified where possible. In general, the RACT analysis focuses on the direct impact of the control alternative. The analysis must consider whether impacts of unregulated air pollutants or non-air impacts such as liquid, solid, or hazardous waste disposal impacts would justify selection of an alternative control option. If there are no outstanding issues regarding collateral environmental impacts, the analysis is ended, and the results proposed as RACT. In the event that the top candidate is shown to be inappropriate, due to energy, environmental, or economic impacts, then the next most stringent alternative in the listing becomes the new control candidate and is similarly evaluated. This process continues until the technology under consideration cannot be eliminated by any source-specific environmental, energy, or economic impacts which demonstrate that the alternative is inappropriate as RACT. The most effective control option not eliminated is proposed as RACT for the pollutant and emission unit under review. In no case can a RACT determination be proposed that would exceed an applicable NSPS or National Emission Standard for Hazardous Air Pollutants (NESHAPS) emission limit (40 CFR Parts 60 and 61). The energy impact analysis considers whether use of an emission control technology results in any significant or unusual energy penalties or benefits. Energy use may be evaluated on an energy used per unit of production basis; energy used per ton of pollutant controlled or total annual energy use. Energy impacts may consider whether use of an emission control technology will have an adverse impact on local energy supplies due to increased fuel consumption or the loss of fuel production or power generation. The energy impact analysis estimates the direct energy Pioneer Investments Corporation – Phillips 66 Corporation Reasonably Available Control Technology Analysis Report Issue Date: December 14, 2023 SLR Project No.: 118.01357.00013 4-3 impacts of the control alternatives in units of energy consumption (Btu, kW-hr, barrels of oil, tons of coal, etc). Electrical, steam, fuel, and other utility requirements are quantified. In addition, some of the potential control options may generate hazardous waste, in such an instance the hazardous waste disposal cost would be debited to the net control cost. The economic impact analysis involves assessing the costs associated with installation and operation of each RACT alternative. Examples of costs that are included are: 1) capital and interest charges, 2) engineering and installation costs, 3) operating and maintenance labor and materials, 4) energy costs, 5) waste disposal costs, and 6) lost revenue due to equipment downtime. Credit for tax incentives, product recovery costs, and by-product sales generated from the use of control systems are included where applicable. As a guide in determining excessive control costs, alternative control systems are compared in terms of certain cost effectiveness ratios. Such ratios include the following:  Cost per unit of pollution removed (for example, dollars per ton);  Unit production costs (for example, costs per unit of product); and  Cost per dollar of total sales. The determination of what is economically feasible is a subjective, case-by-case assessment by the regulatory agency. The objective is to establish an acceptable level of cost impact. As such, the cost impact (dollars per tpy) of emissions reduced determined to be economically feasible can simply be the value that another similar process operation agreed to spend. Details on the cost estimating procedures utilized are outlined below. 4.1.4.1 Cost Analysis Methodology The basis for comparison in the economic analysis of the control scenarios is the cost effectiveness; that is, the value obtained by dividing the total net annualized cost by the tons of pollutant removed per year for each control technique. Annualized costs include the annualized capital cost plus the financial requirements to operate the control system on an annual basis, including operating and maintenance labor, and such maintenance costs as replacement parts, overhead, raw materials, and utilities. Capital costs include both the direct cost of the control equipment and all necessary auxiliaries as well as both the direct and indirect costs to install the equipment. Direct installation costs include costs for foundations, erection, electrical, piping, insulation, painting, site preparation, and buildings. Indirect installation costs include costs for engineering and supervision, construction expenses, start-up costs and contingencies. To accurately estimate the total annualized cost of a particular control technology, a conceptual design must be developed in sufficient detail to quantify all the direct capital and operating costs. All costs are then expressed as an annualized cost as well as calculated cost-effectiveness values. This approach of amortizing the investment into equal end-of-year annual costs is termed the Equivalent Uniform Annual Cost (EUAC) (Grant, Ireson and Leavenworth 1990). It is very useful when comparing the costs of two or more alternative control systems and is the U.S. EPA- recommended method of estimating control costs. The EUAC costs and estimating methodology used in this report are directed toward a "study" estimate of ±30 percent accuracy that is described in the U.S. EPA's OAQPS Control Cost Manual (USEPA 2002/2019b). According to the Chemical Pioneer Investments Corporation – Phillips 66 Corporation Reasonably Available Control Technology Analysis Report Issue Date: December 14, 2023 SLR Project No.: 118.01357.00013 4-4 Engineer's Handbook (Perry and Chilton 2008), a study estimate is "...used to estimate the economic feasibility of a project before expending significant funds for piloting, marketing, land surveys, and acquisition... [however] it can be prepared at relatively low cost with minimum data." Capital and annual cost estimating methodology is described below. 4.1.4.2 Capital Costs Several methods with varying degrees of accuracy are available for estimating capital costs of pollutant control devices. Cost estimating techniques range from the simple "survey method" whereby the total installed costs are equated to a basic operating parameter (e.g., gas flow rate) to detailed cost estimates based on preliminary designs, systems drawings, and contractor quotes. Survey method cost algorithms are derived from industry surveys of overall capital costs of installed equipment and represent the average cost of many installations. Since there are no provisions that permit normalization of the many site-specific parameters which affect both equipment and installation costs, survey methods provide accuracies, at best, on the order of +50 percent to -30 percent (Vatavuk and Neveril 1980). Detailed cost estimates on the other hand, including obtaining detailed vendor quotations against detailed engineering bid packages, will provide better accuracies that are commensurate to the level of design detail obtained and included in the bid package (i.e. 15/30/60/90/100% level). Each higher level of design will require substantially more engineering work to develop with the cost rising accordingly. Detailed designs are not generally obtained for BACT analyses due to the substantial costs occurred and the speculative nature of the project. Generally, the approach taken in a BACT analysis is to obtain vendor-supplied control equipment cost estimates for similar facilities and apply a factored approach for estimating ancillary equipment and installation costs to obtain reasonably accurate installed capital costs for controls. 4.1.4.3 Annualized Costs Annualized costs are comprised of the direct operating costs of materials and labor for maintenance, operation, supervision and utilities and waste disposal, and the indirect operating charges, including plant overhead, general and administrative, and capital charges. These generalized factors may in some cases be modified to provide more accurate, site-specific values. Utility costs for the control device and auxiliary equipment are based on the total annual consumption, unit costs, and vendor estimates. Indirect operating costs include the cost of plant overhead, general and administrative (G&A), and capital charges. G&A is a direct function of the total capital cost. Overhead is a function of both labor (payroll and plant) and project capital cost. The capital recovery cost, or capital charge, is based on the operational life of the system, interest and capital depreciation rates, and total capital cost. These charges are based on the capital recovery factor (CRF) defined as: CRF = i (1 +i)n / [(1 + i)n - 1] where: i = the annual interest rate; and n = equipment life (years). Pioneer Investments Corporation – Phillips 66 Corporation Reasonably Available Control Technology Analysis Report Issue Date: December 14, 2023 SLR Project No.: 118.01357.00013 4-5 The basis for comparing the economic impacts of control scenarios is cost effectiveness. This value is defined as the total net annualized cost of control, divided by the actual tons of pollutant removed per year, for each control technique. Annualized costs include the capital cost plus the financial requirements to operate the control system on an annual basis, including operating and maintenance labor, replacement parts, overhead, raw materials, waste disposal and utilities. Capital costs include both the direct and indirect costs of installing the equipment. Direct installation costs include the costs for foundations, erection, electrical, piping, insulation, painting, site preparation, and buildings. Indirect installation costs include costs for engineering and supervision, construction expenses, startup costs and contingencies. 4.1.4.4 Cost Effectiveness The economic impact incurred using each control alternative is measured by that alternative's cost effectiveness. Cost effectiveness is the value obtained (in dollars per ton of pollutant removed) by dividing the total annualized cost by the annual tons of pollutant controlled. Cost effectiveness values provide a means to compare the economic feasibility of various control alternatives. Although there is no single dollar per ton value which can be used to determine whether or not a RACT alternative is economically viable, these values can be compared to other determinations for similar sources or controls as a guide in the RACT selection. 4.1.5 Step 5: Select RACT In Step 5 of the RACT analysis, the most effective control option not eliminated in Step 4, based on adverse energy, economic or environmental impact is selected as RACT. Pioneer Investments Corporation – Phillips 66 Corporation Reasonably Available Control Technology Analysis Report Issue Date: December 14, 2023 SLR Project No.: 118.01357.00013 5-1 5.0 RACT Analysis NOx As discussed previously, the flares controlling Loading Rack 1 and Loading Rack 2 account for 10.2 tpy of the total 11.9 tpy NOx emissions emitted at the facility. The flares and associated vapor collection system were installed to control the VOC vapors from the loading racks. The vapor collection and flares meet NSPS XX and NESHAP BBBBBB standards. As such, the NO x emissions from the flares controlling the Loading Racks will not be evaluated for RACT purposes, only the VOC emissions from the Loading Racks will be evaluated further (see Chapter 6). The emergency generator limited to 100 hr/yr annual operation makes up the remainder (1.7 tpy) of the total NOx emissions. 5.1 Diesel-Fired Emergency Engines NOx RACT Analysis The P66 NSL Terminal operates one (1) diesel-fired compression ignition internal combustion engine (CI-ICE) rated at 1,118 bhp. The engine is classified as an emergency engine for purposes of compliance with NESHAP ZZZZ. Per §63.6640(f), the engine is limited to operation during non- emergency scenarios for up to 100 hr/yr (for maintenance and readiness testing purposes). Furthermore, any operation other than emergency operation, maintenance and testing, and operation in non-emergency situations for 50 hours per year, as described in 63.6640(f)(1) – (f)(4), is prohibited. Diesel engines are classified as compression ignition (CI) internal combustion engines. In diesel engines, air is drawn into a cylinder as the piston creates space for it by moving away from the intake valve. The piston’s subsequent upward swing then compresses the air, heating it at the same time. Next, fuel is injected under high pressure as the piston approaches the top of its compression stroke, igniting spontaneously as it contacts the heated air. The hot combustion gases expand, driving the piston downward. During its return swing, the piston pushes spent gases from the cylinder, and the cycle begins again with an intake of fresh air. NOx are the gaseous nitrogen compounds created during combustion. NOx describes two main types of nitrogen compounds, NO and NO2. The formation of NOx during combustion occurs by two separate reaction mechanisms. The two mechanisms of formation are referred to as fuel NO x and thermal NOx. Thermal NOx is created from the reaction between N2 and O2 supplied from the combustion air. Fuel NOx is created from the reaction between organic nitrogen compounds within the fuel and O2 present in the air. Diesel fuel typically contains little to no fuel bound nitrogen. Thermal NOx is therefore the major contributor to the overall NOx emissions from an internal combustion engine. CO and NOx are inversely related and therefore a decrease in CO emissions will result in an increase in NOx formation, and vice versa. Therefore, the emission limits for CO and NOx must be balanced appropriately. 5.1.1 Step 1 – Identify all Reasonably Available NOx Control Technologies Available NOx control technologies evaluated for the existing emergency CI-ICE are summarized below. Each technology can be classified as either a combustion control technique aimed at reducing the formation of NOx or flue gas controls that reduce the NOx present in the exhaust gases after formation. Pioneer Investments Corporation – Phillips 66 Corporation Reasonably Available Control Technology Analysis Report Issue Date: December 14, 2023 SLR Project No.: 118.01357.00013 5-2  Operation and maintenance (O&M) practices required by Federal NESHAP standards  Engine Design (fuel injection timing retard / turbocharged / aftercooling);  Non-Selective Catalytic Reduction (NSCR);  Selective Non-Catalytic Reduction (SNCR); and  Selective Catalytic Reduction (SCR). 5.1.1.1 Federal O&M Practices The following work practices are required by NESHAP ZZZZ for stationary emergency RICE located at an area source:  At all times operate and maintain any affected source, including associated air pollution control equipment and monitoring equipment, in a manner consistent with safety and good air pollution control practices for minimizing emissions;  Operate and maintain the stationary RICE and after-treatment control device (if any) according to the manufacturer's emission-related written instructions or develop your own maintenance plan which must provide to the extent practicable for the maintenance and operation of the engine in a manner consistent with good air pollution control practice for minimizing emissions;  Minimize the engine's time spent at idle and minimize the engine's startup time at startup to a period needed for appropriate and safe loading of the engine, not to exceed 30 minutes;  Change oil and filter every 500 hours of operation or annually, whichever comes first;  Inspect air cleaner every 1,000 hours of operation or annually, whichever comes first, and replace as necessary; and  Inspect all hoses and belts every 500 hours of operation or annually, whichever comes first, and replace as necessary. 5.1.1.2 Engine Design NOx reductions associated with engine design include fuel injection timing retard and turbocharged aftercooling. Fuel injection timing retard within a combustion engine affects the formation of NO x. When the ignition timing is advanced, the ignition occurs earlier in the power cycle and results in peak combustion. Peak combustion is a result of the maximum pressure and temperature within the combustion chamber. The high pressure and temperature in the combustion chamber causes an increase in NOx formation. Conversely, when the injection timing is retarded, the ignition occurs later in the power cycle, resulting in lower NO x emissions. Injection timing retardation may reduce NO x formation by 20 to 30 percent on average. The NO x emissions are reduced by decreasing the operating pressure, temperature, and residence time within the combustion chamber. Injection timing retardation is capable of reducing NO x emissions without adversely affecting performance such as decreased power output, increased exhaust Pioneer Investments Corporation – Phillips 66 Corporation Reasonably Available Control Technology Analysis Report Issue Date: December 14, 2023 SLR Project No.: 118.01357.00013 5-3 temperatures, misfiring, and elevated opacity during engine startup. The engine manufacturer should recommend the degree of injection timing retardation based on tests of similar size and type engines. Injection timing is a technically feasible and demonstrated NO x control technology for a diesel-fired CI-ICE. Aftercooling is a technology to lower the intake charge air temperature thereby lowering peak cylinder temperatures and NO x formation. 5.1.1.3 Non-Selective Catalytic Reduction (NSCR) Non-Selective Catalytic Reduction (NSCR) uses a three-way catalyst to promote the reduction of NOx to nitrogen and water. NSCR is applicable only to rich burn engines (i.e., those with exhaust oxygen concentration below about 1 percent). NSCR, in addition to the catalyst and catalyst housing, requires an oxygen sensor and air-fuel ratio controller to maintain an appropriate air to fuel ratio. Some ammonia can be produced particularly as the catalyst ages. The simplified reactions governing NSCR are as follows: 2N2COCOxNO 2NO2H2COHCxNO The exhaust passes over the catalyst, usually a noble metal (platinum, rhodium or palladium) which reduces the reactants to N 2, CO2, and H2O. Typical exhaust temperatures for effective removal of NOx are 800-1,200 degrees Fahrenheit (°F). 5.1.1.4 Selective Non-Catalytic Reduction (SNCR) SNCR is applicable to lean burn diesel engines. SNCR involves injecting ammonia or urea into regions of the exhaust with temperatures greater than 1,400-1,500°F. The nitrogen oxides in the exhaust are reduced to nitrogen and water vapor. 5.1.1.5 Selective Catalytic Reduction (SCR) SCR is applicable to lean burn diesel engines and is a post-combustion gas treatment technique for the reduction of NO and NO2 in the exhaust stream to molecular nitrogen, water, and oxygen. Ammonia is used as the reducing agent. The basic reactions are: O2H3/22N2O1/4NO3NH  O2H3/22N3/42O1/42NO1/23NH  The catalyst’s active surface is usually either a noble metal or base metal (titanium or vanadium oxide, or a zeolite-based material). Metal-based catalysts are usually applied as a coating over a metal or ceramic substrate. These catalysts have a typical active range between 550°F and 750°F. Zeolite catalysts are typically a homogeneous material that forms both the surface and the substrate. The most common catalyst body configuration is a monolithic, “honeycomb” design. An ammonia injection grid is located upstream of the catalyst body and is designed to disperse the ammonia uniformly across the exhaust flow before it enters the catalyst unit. In a typical ammonia injection system, anhydrous ammonia is drawn from a storage tank and evaporated using a steam or electric-heated evaporator. The vapor is mixed with a pressurized carrier gas to Pioneer Investments Corporation – Phillips 66 Corporation Reasonably Available Control Technology Analysis Report Issue Date: December 14, 2023 SLR Project No.: 118.01357.00013 5-4 provide both sufficient momentum through the injection nozzles and effective mixing of the ammonia with the exhaust gases. The carrier gas is usually compressed air or steam. An alternative to using anhydrous ammonia is to vaporize an aqueous ammonia solution. This system reduces the potential safety hazards associated with transporting and storing anhydrous ammonia. A more recent advance is to produce gaseous NH3 from urea. Urea, in granular form, is not a hazardous material and can be safely transported to the site and converted to NH 3 based on demand. The hazards associated with storing either anhydrous or aqueous ammonia are eliminated. Depending on NH 3 requirements, two approaches for utilizing urea are available. For relatively small amounts of NH3, hot gases from the exhaust are mixed in a chamber with a urea solution where NH3 is released. The gases are then routed to the injection grid. For higher flows, the urea solution is directed over a catalyst bed to speed the conversion process. As indicated by the chemical reaction equations listed above, it takes one mole of NH 3 to reduce one mole of NO, and two moles of NH3 to reduce one mole of NO2. SCR systems generally operate with a molar NH3 /NO ratio greater than stoichiometric to achieve optimal conversion efficiencies, resulting in the passage of unreacted NH3 to the atmosphere, which is commonly referred to as ammonia slip. 5.1.2 Step 2 & 3 - Technical Feasibility of NOx Controls Technologies and practices that have been assessed as part of this analysis are summarized in Table 5-1 . Of the five options identified, only Federal O&M practices and SCR is considered technically feasible other than the base case controls implemented through engine design. NSCR is applicable only to rich burn engines (oxygen contents less than approximately 1 percent). The diesel-fired CI-ICE is a lean burn engine which cannot utilize the technology. Therefore, NSCR is not technically feasible and will not be considered further for RACT. SNCR requires an operating temperature in the 1,400 to 1,500°F range. This temperature range is much greater than the exhaust temperature of a typical CI-ICE. Additional fuel would need to be combusted in the exhaust to elevate the temperature. This would create additional emissions and greatly increase the cost of the exhaust system. Therefore, SNCR is not considered a viable technology for RACT. Table 5-1 Technical Feasibility of Diesel-fired CI-ICE NO x Controls Controls Technically Feasible? Meet Federal O&M practices Yes Engine Design - (fuel injection timing retard / turbocharged / aftercooling)Yes NSCR No SNCR No SCR Yes Pioneer Investments Corporation – Phillips 66 Corporation Reasonably Available Control Technology Analysis Report Issue Date: December 14, 2023 SLR Project No.: 118.01357.00013 5-5 The technology assessment above identifies only Engine Design and SCR as viable technologies for reducing NOx emissions. Most if not all the engine design features are already incorporated into the engine to meet the EPA Tier II emission standards. Therefore, only SCR will be evaluated as a potential option to further reduce NOx emissions. 5.1.3 Step 4 – Evaluation of Feasible Control Options 5.1.3.1 Selective Catalytic Reduction Since SCR systems require an operating temperature between 260°C and 540°C, reaching these temperatures may be difficult in routine maintenance and testing operations where the engine is typically operated at low load for a short period of time. If the critical temperatures are not met while the engine is running, there will be no NO x reduction benefit. To have NOx reduction benefit, the engine would need to be operated with higher loads and for a longer period. This would be a challenge since the engine is limited to 100 hr/yr. Urea handling and maintenance must also be considered. Urea crystallization in the lines can damage the SCR system and the engine itself. Crystallization in the lines is more likely in emergency standby engines due to their periodic and low hours of usage. There are several downsides to using SCR. First, an improperly functioning SCR system can create excess ammonia emissions. SCR systems also add significant equipment to the engine system which increases the possibility of failures and increases on-going maintenance costs. The use of SCR can reduce NOx emissions in the range from 70 to 90%, or by approximately 0.5 to 1.5 tpy (from 1.7 tpy to 1.2 or 0.2 tpy) for the diesel-fired CI-ICE. The economic costs associated with installing a SCR system for such a small reduction in NOx emissions are prohibitive, not to mention its highly unlikely the engine would be at proper operating temperature for the SCR to be effective due to the limited operating hours, and the extra maintenance and disposal costs if urea were used. Therefore, SCR will not be considered further. 5.1.4 Step 5 - CI-ICE NOx RACT Determination Periodic maintenance is performed on the engine in accordance with manufacturer specifications. Since the engine is subject to Subpart ZZZZ, the oil is changed, and hoses/belts are inspected every 500 hours or annually. Therefore, RACT for the diesel-fired CI-ICE emergency generator engine is 100 hr/yr annual operating limit, good operational practices according to the manufacturer’s recommendations and design, proper maintenance and operation, and compliance with applicable Subpart ZZZZ requirements. These requirements have been determined to be RACT. These control strategies are technically feasible and will not cause any adverse energy, environmental, or economic impacts. Pioneer Investments Corporation – Phillips 66 Corporation Reasonably Available Control Technology Analysis Report Issue Date: December 14, 2023 SLR Project No.: 118.01357.00013 6-1 6.0 RACT Analysis – VOCs RACT was evaluated for VOC emissions from the following emission units in operation at the NSL Terminal.  Two (2) Loading Racks  Storage Tanks o Six (6) Vertical Fixed Roof Storage Tanks (VFRT) o Four (4) Internal Floating Roof Storage Tanks (IFRT) o Six (6) External Floating Roof Storage Tanks (EFRT)  Fugitive Emissions/Equipment Leaks VOC emissions from the emergency diesel-fired CI-ICE were not reviewed for RACT as the potential to emit VOC emissions from the emergency engine total 0.04 tpy. 6.1 RACT for Loading Racks VOC emissions are displaced to the atmosphere when cargo tank trucks are filled with gasoline. The vapors can be controlled by one or more of the following methods: 1. Load only to vapor-tight cargo tank trucks compatible with the terminal’s vapor collection system (VCS) 2. Design a VCS to collect total VOCs displaced from cargo tank truck loading to route vapors collected from loading operations to a vapor processing system (VPS) including:  refrigeration based control system;  vapor recovery unit (VRU) with carbon adsorption; or  thermal oxidation system (open or enclosed flare) 3. Employ top-submerged or bottom loading of cargo tank trucks. 4. Minimize spills and clean up any spills expeditiously. The NSL Terminal operates two (2) loading racks used for gasoline and diesel product loading. VOC vapors are discharged from the tankers as they are filled. Each of the loading racks are operated with a vapor recovery unit with two (2) John Zink flares as their control devices. The loading racks are each subject to NSPS XX and NESHAP BBBBBB. The intent of NSPS XX is to minimize the emissions of VOC from loading racks at bulk gasoline terminals which deliver liquid product into gasoline tank trucks through the application of best demonstrated technologies (BDT). NESHAP BBBBBB establishes emission limitations and management practices for HAPs emitted from gasoline storage tanks, loading racks, and equipment leaks at area source gasoline distribution bulk terminals, bulk plants, and pipeline facilities. Pioneer Investments Corporation – Phillips 66 Corporation Reasonably Available Control Technology Analysis Report Issue Date: December 14, 2023 SLR Project No.: 118.01357.00013 6-2 NSPS XX establishes VOC emission limits from the NSL bulk gasoline terminal as follows: §60.502(a) requires each affected facility to be equipped with a vapor collection system (VCS) designed to collect total organic compounds (TOC) vapors displaced from tank trucks during project loading. §60.502(c) Limits the emissions to the atmosphere from the VCS to 80 milligrams of TOC per liter (L) of gasoline loaded (80 mg TOC/L). §60.502(e) Limits loading of liquid product into gasoline trucks to vapor-tight gasoline trucks. §60.502(j)Requires that each calendar month, the VCS, vapor processing system, and each loading rack handling gasoline be inspected during loading of gasoline trucks for TOC, liquids or vapor leaks. NESHAP BBBBBB established emission limits and management practices for gasoline storage tanks, gasoline loading racks, and equipment leaks at the NSL bulk gasoline terminal as follows: Gasoline Storage Tanks (§63.11087) §63.11087(a) Equip each internal floating roof gasoline storage tank according to the requirements in §60.112b(a)(1) of this chapter, except for the secondary seal requirements under §60.112b(a)(1)(ii)(B) and the requirements in §60.112b(a)(1)(iv) through (ix) of this chapter; and Equip each external floating roof gasoline storage tank according to the requirements in §60.112b(a)(2) of this chapter, except that the requirements of § 60.112b(a)(2)(ii) of this chapter shall only be required if such storage tank does not currently meet the requirements of §60.112b(a)(2)(i) of this chapter. Bulk Gasoline Terminal Loading Rack (§63.11088) §63.11088(a) Equip your loading rack(s) with a vapor collection system designed to collect the TOC vapors displaced from cargo tanks during product loading; and Reduce emissions of TOC to less than or equal to 80 mg/l of gasoline loaded into gasoline cargo tanks at the loading rack; and Design and operate the vapor collection system to prevent any TOC vapors collected at one loading rack or lane from passing through another loading rack or lane to the atmosphere; and Limit the loading of gasoline into gasoline cargo tanks that are vapor tight using the procedures specified in § 60.502(e) through (j) of this chapter. For the purposes of this section, the term “tank truck” as used in § 60.502(e) through (j) of this chapter means “cargo tank” as defined in §63.11100. Bulk Gasoline Terminal Equipment Leak Inspections (§63.11089) §63.11088(a) Perform a monthly leak inspection of all equipment in gasoline service, as defined in § 63.11100. For this inspection, detection methods incorporating sight, sound, and smell are acceptable. Pioneer Investments Corporation – Phillips 66 Corporation Reasonably Available Control Technology Analysis Report Issue Date: December 14, 2023 SLR Project No.: 118.01357.00013 6-3 In summary, Phillips 66 NSL Terminal maintains compliance with the applicable provisions to these rules as part of its good process management practices to limit emissions. This includes:  Utilizing a vapor collection system to collect vapors during truck loading.  Limiting loading of product into tank trucks that are vapor tight.  Maintaining emissions below 10 mg TOC/L of product loaded. It should be noted that the Phillips 66 NSL Terminal has a TOC limit from each of the loading racks of 10 mg TOC/L, which is eight (8) times lower than the NSPS XX and NESHAP BBBBBB emission standard of 80 mg TOC/L as discussed above. The existing loading racks are controlled by two John Zink air-assisted flares, model LHT-2-20- 25X1/10-2/20-X and model LHT-3-24-25-3/10-1/10-X. The use of flares is considered best available control technology (BACT) for loading racks. Further, the loading rack NO x and VOC emission rates (4.0 mg/liter and 10.0 mg/liter of gasoline loaded respectively) are lower than the performance criteria for a controlled products loading facility found in NSPS XX and NESHAP BBBBBB regulations, which also constitutes BACT. The NSL Terminal loading racks already employ the highest level of control. Therefore, RACT for the loading racks is the use of the existing VCS and flares, compliance with the work practice standards of NSPS XX and NESHAP BBBBBB, including loading to certified vapor-tight cargo tank trunks, and use of the VCS and flares to attain emission rates for NO x and VOC (4.0 mg NOx/liter and 10.0 mg TOC/liter gasoline loaded respectively). 6.2 RACT for Vertical Fixed Roof Storage Tanks The NSL Terminal operates six (6) vertical fixed roof storage tanks (VFRT). Emissions from fixed roof tanks are a result of evaporative losses during storage (known as breathing losses or standing losses) and evaporative losses during filling operations (known as working losses).2 Working losses occur during filling of the tank, where the rising liquid level displaces vapors in the tank headspace (vapor volume above the liquid level), which may be vented from breather vents. Breathing losses, also called standing losses, occur as a result of temperature fluctuations that cause expansion of vapors in the tank headspace and venting from the breather vents. For tanks that are insulated and heated, and operated at a near-constant temperature, breathing losses are zero or very low. The VFRTs at the NSL Terminal are only used to store heavy distillates with low vapor pressures due to the low VOC emissions resulting from storing heavy distillates. The VFRTs operated at the NSL Terminal that reported emissions in 2017 are presented in Table 6-1. 2 EPA Publication AP 42, Fifth Edition, Volume I Chapter 7: Liquid Storage Tanks, 2020. Pioneer Investments Corporation – Phillips 66 Corporation Reasonably Available Control Technology Analysis Report Issue Date: December 14, 2023 SLR Project No.: 118.01357.00013 6-4 Table 6-1 Vertical Fixed Roof Tanks at NSL Terminal Tank ID Tank Size / Year Constructed Product Stored / True Vapor Pressure PTE VOC (tpy) 2017 VOC (tpy) TNK 202 20,000 bbl (880,000 gals) / 1953 Distillate / < 0.0085 psia (< 0.0586 kPa) 0.40 0.11 TNK 205 30,000 bbl (1,260,000 gals) / 1953 0.61 0.56 TNK 206 20,000 bbl (880,000 gals) / 1953 0.40 0.11 TNK 215 30,000 bbl (1,260,000 gals) / 1953 0.61 0.46 TNK 216 20,000 bbl (880,000 gals) / 1953 0.40 0.11 TNK 227 100,000 bbl (4,200,000 gals) / 2000 2.03 1.59 Total 4.45 2.94 6.2.1 Step 1 – Identify all Available VOC Control Technologies Potential control technologies for VOC emissions from vertical fixed roof storage tanks include:  Closed Vent System/Vapor Recovery/Route to Control Device,  Retrofit Tank with an Internal Floating Roof Tank, and  Application of Tank Standards. 6.2.2 Step 2 – Technical Feasibility of VOC Control Technologies 6.2.2.1 Closed Vent System/Vapor Recovery/Route to Control Device Evaporative vapor volumes generated by very low vapor pressure liquid distillates stored in the VFRTs are low and intermittent. Vapor would only be emitted from a VFRT during periods when the pressure within the tank headspace exceeds pressure relief vent set points. There is insufficient pressure differential to move vapor to a control device without compression. It is technically infeasible to install vapor recovery compression because the compressors would be continually shutting down or recycling due to low and intermittent flow conditions. 6.2.2.2 Retrofitting VFRT with IFR The primary technical drawback with retrofitting a fixed roof tank with an internal floating roof (IFR) is that storage tanks lose approximately 6-8 feet of working capacity, including 3-5 feet at the top of the tank to support the installation and operations of the IFR, and approximately 3 feet at the bottom of the tank to ensure that landing of the IFR does not occur (resulting in excess emissions). The loss of capacity is estimated to range from 20-40%. This loss of tank capacity could potentially require installation of additional storage tanks to support operational requirements. Given the age of these tanks (1953) an additional concern would be tank integrity and the ability to sustain an IFR retrofit. Several modifications may be necessary on a VFRT before it can be equipped with an IFR. Tank shell deformations and obstructions may require correction, and special structural modifications such as bracing, reinforcing, and plumbing vertical columns may be necessary. Antirotational guides should be installed to keep floating roof openings in alignment with fixed roof openings. In addition, special vents may be installed on the fixed roof or on the walls at the top of the shell to minimize the possibility of VOL vapors approaching the explosive range in the vapor space. Pioneer Investments Corporation – Phillips 66 Corporation Reasonably Available Control Technology Analysis Report Issue Date: December 14, 2023 SLR Project No.: 118.01357.00013 6-5 Installation of an IFR in an existing VFRT includes the following at a minimum: • Identification and procurement of a floating roof and rim seals, • Ladder, roof negotiator, and fixed roof view hatch, • Verticality survey, • Door sheet, • Gauge pole and gauge pole cover, • Floating roof leg covers, and • Hydrotesting. 6.2.2.3 Application of Tank Standards New Source Performance Standards (NSPS) for petroleum liquid storage vessels are covered by three separate subparts of 40 CFR Part 60. Subpart K pertains to storage vessels constructed or modified after June 11, 1973, but before May 19, 1978. Subpart Ka pertains to storage vessels constructed or modified after May 19, 1978, but before July 23, 1984. Subpart Kb pertains to storage vessels constructed or modified after July 23, 1984. Subpart K applies to petroleum liquid storage vessels with storage capacities greater than 40,000 gallons, as well as storage vessels with capacities between 40,000 and 65,000 gallons that were constructed or modified after March 8, 1974, and before May 19, 1978. Storage vessels for petroleum or condensate stored, processed, and/or treated at a drilling and production facility prior to custody transfer are exempt from this subpart. Subpart K requires storage vessels that store petroleum liquids with true vapor pressures between 1.5 and 11.1 psia to be equipped with a floating roof and a vapor recovery system, or other equivalent equipment. For petroleum liquids with a true vapor pressure greater than 11.1 psia, a vapor recovery system or equivalent equipment is required. Subpart Ka applies to petroleum liquid storage vessels with storage capacities greater than 40,000 gallons, however storage vessels with storage capacities less than 420,000 gallons used for petroleum or condensate stored, processed or treated prior to custody transfer are exempt. Storage vessels containing petroleum liquids with true vapor pressures between 1.5 and 11.1 psia should be equipped with either an external floating roof, a fixed roof with an internal floating type cover, a vapor recovery system that collects all VOC vapors and discharged gases, or an equivalent system. Storage vessels containing petroleum liquids with true vapor pressures greater than 11.1 psia should be equipped with a vapor recovery system to collect all discharged gases and a vapor return or disposal system to reduce VOC emissions by at least 95% by weight. NSPS Kb applies to volatile organic liquid (VOL) storage vessels, which includes petroleum liquid storage vessels, with capacities greater than or equal to 75 m 3 (~20,000 gals). However, this subpart excludes storage vessels with capacities greater than 151 m 3 (~40,000 gals) storing a liquid with a maximum true vapor pressure less than 3.5 kPa (0.5 psia) or vessels with capacities between 75 and 151 m3 storing a liquid with a maximum true vapor pressure less than 15.0 kPa (2.18 psia). For storage vessels greater than 151 m 3 in size containing a VOL with a maximum true vapor pressure between 5.2 kPa (0.75 psia) and 76.6 kPa (11.1 psia) and vessels sized between 75 and 151 m 3 storing a VOL with a maximum true vapor pressure between 27.6 kPa Pioneer Investments Corporation – Phillips 66 Corporation Reasonably Available Control Technology Analysis Report Issue Date: December 14, 2023 SLR Project No.: 118.01357.00013 6-6 (4.0 psia) and 76.6 kPa (11.1 psia) should be equipped with either a fixed roof with an internal floating roof, an external floating roof, a closed vent system and control device, or an equivalent system. Storage vessels with capacities greater than 75 m 3 containing a VOL with a maximum true vapor pressure greater than or equal to 76.6 kPa should be equipped with a closed vent system and control device or equivalent system.Table 6-2 summarizes NSPS Kb standards. Table 6-2 Summary of NSPS Subpart Kb Applicability and Control Thresholds Design Capacity3 Maximum True Vapor Pressure4 Standards for VOC Citation 1. < 75 cubic meters (~20,000 gals)n/a Not regulated § 60.110b(a) 2. ≥ 75 cubic meters (~20,000 gals), but <151 cubic meters (~40,000 gals) < 15.0 kPa (2.18 psia)Not regulated § 60.110b(b) ≥ 27.6 kPa (4.0 psia), but < 76.6 kPa (11.1 psia)IFR, EFR or CVS/CD § 60.112b(a) 3. ≥ 151 cubic meters (~40,000 gals) < 3.5 kPa (0.5 psia)Not regulated § 60.110b(b) ≥ 5.2 kPa (0.75 psia), but < 76.6 kPa (11.1 psia)IFR, EFR or CVS/CD § 60.112b(a) 4. ≥ 75 cubic meters (~20,000 gals)≥ 76.6 kPa (11.1 psia)CVS/CD or equivalent § 60.112b(b) 40 CFR 63 Subpart WW applies to the control of air emissions from storage vessels for which another subpart references the use of Subpart WW for air emission control. EPA promulgated 40 CFR Part 63 Subpart WW as part of the generic MACT standards program. Subpart WW was developed for the purpose of providing consistent EFR and IFR requirements for storage vessels that could be referenced by multiple NESHAP subparts. Like the NSPS Subpart Kb standards for floating roof tanks, Subpart WW is comprised of a combination of design, equipment, work practice, and operational standards. Both rules specify monitoring, recordkeeping, and reporting for storage vessels equipped with EFR and IFR and both include requirements for inspections to occur within defined timeframes. The inspections required by Subpart WW are intended to achieve the same goals as those inspections required by Subpart Kb. Subpart WW allows for the visual inspection of the floating roof deck, deck fittings, and rim seals while the tank remains in service if physical access is possible. Subpart WW does not require the tank to be taken out of service to inspect the floating roof, rim seals and deck fittings which contrasts with Kb requirements. Utah Administrative Code R307-327 presents the requirements of petroleum liquid storage in ozone nonattainment and maintenance areas. R307 -327-4 states (1) Any existing stationary storage tank, with a capacity greater than 40,000 gallons (150,000 liters) that is used to store volatile petroleum liquids with a true vapor pressure greater than 10.5 kilo pascals (kPa) (1.52 psia) at storage temperature shall be fitted with control equipment that will minimize vapor loss to the atmosphere. Storage tanks, except for tanks erected before January 1, 1979, which are equipped with external floating roofs, shall be fitted with an internal floating roof that shall rest on 3 Based on internal shell diameter and height. 4 Defined in § 60.111b. Pioneer Investments Corporation – Phillips 66 Corporation Reasonably Available Control Technology Analysis Report Issue Date: December 14, 2023 SLR Project No.: 118.01357.00013 6-7 the surface of the liquid contents and shall be equipped with a closure seal or seals to close the space between the roof edge and the tank wall, or alternative equivalent controls. The owner/ operator shall maintain a record of the type and maximum true vapor pressure of stored liquid. (2) The owner/operator of a petroleum liquid storage tank not subject to (1) above but containing a petroleum liquid with a true vapor pressure greater than 7.0 kPa (1.0 psia), shall maintain records of the average monthly storage temperature, the type of liquid, throughput quantities, and the maximum true vapor pressure. 6.2.3 Step 5 – RACT Selection Under NSPS regulations, control equipment is generally required when storing volatile organic liquids with vapor pressures of 1.5 psia or greater. Tanks storing volatile organic liquids below the vapor pressure threshold are required to keep records of types of products stored and their vapor pressures, periods of storage and tank design specifications. Distillate products are stored in the six (6) fixed roof tanks at the NSL Terminal. NSPS Kb specifically exempts storage tanks storing a volatile organic liquid with a true vapor pressure less than 3.5 kPa (0.5 psia) as the emissions are minimal and hence why VFRTs are used to store these products at the NSL Terminal. Compliance with Subpart Kb is not applicable to the VFRTs at the NSL Terminal as the tanks are exempt from the rule due to commenced construction date, size and the vapor pressure of product stored. Total VOC emissions from the six (6) VFRTs at the NSL Terminal are 4.5 tpy (PTE) and 3.0 tpy (2017 actual). Potential control efficiencies for a vapor recovery system, thermal oxidizer, and retrofitting to IFR range from 60% to 98%, or a reduction in VOC emissions from all the fixed roof tanks ranging from 1.8 tpy to 2.9 tpy from 2017 actual emissions. However, the installed capital and annual operating costs to install additional controls on each of the tanks would be cost prohibitive and not economically feasible for the very small reduction in VOC emissions. Therefore, RACT for VOC emissions from the six (6) fixed roof tanks at the NSL Terminal is good design methods and operating procedures, and keeping records of the type and maximum true vapor pressure of stored liquid in each VFRT as additional control technology is not economically feasible. 6.3 RACT for Internal Floating Roof Storage Tanks The NSL Terminal operates four (4) internal floating roof storage tanks (IFRT). An internal floating roof tank has both a permanently affixed roof and a roof that floats inside the tank on the liquid surface (contact deck) or is supported on pontoons several inches above the liquid surface (noncontact deck). The internal floating roof rises and falls with the liquid level. Emissions from a floating roof tank come from both withdrawal losses and standing losses. Withdrawal losses are generally due to liquid level fluctuations associated with adding material into the tank and removing material from the tank and standing storage losses originate from the rim seal(s), floating roof deck fittings, and the deck seams (for non-welded tanks). IFRTs operated at the NSL Terminal that reported emissions in 2017 are presented in Table 6-3. Pioneer Investments Corporation – Phillips 66 Corporation Reasonably Available Control Technology Analysis Report Issue Date: December 14, 2023 SLR Project No.: 118.01357.00013 6-8 Table 6-3 Internal Floating Roof Tanks at NSL Terminal Tank ID Tank Size / Year Constructed Product Stored / True Vapor Pressure PTE VOC (tpy) 2017 VOC (tpy) TNK 225 88,000 bbl (3,696,000 gals) / 1988 Gasoline / < 4.68 psia (< 32.27 kPa) 5.71 3.56 TNK 228 80,000 bbl (3,360,000 gals) / 2013 4.57 7.46 TNK 2261 9,400 bbl (394,800 gals) / 1992 1.60 0.62 TNK 212 20,000 bbl (880,000 gals) / 1953 Ethanol / < 0.8 psia (< 5.5 kPa) 0.24 0.33 Total 12.12 11.97 1 –Switched from transmix service to gasoline in 2021 6.3.1 Step 1 – Identify all Available VOC Control Technologies Potential control technologies for VOC emissions from internal floating roof storage tanks include:  NSPS Subpart Kb,  40 CFR 63 Subpart WW Controls, and  Installation of a Vapor Recovery System with Vapor Combustion. 6.3.1.1 NSPS Subpart Kb NSPS Subpart Kb applies to volatile organic liquid (VOL) storage vessels, which includes petroleum liquid storage vessels, with capacities greater than or equal to 75 m 3 (~20,000 gals). However, this subpart excludes storage vessels with capacities greater than 151 m 3 (~40,000 gals) storing a liquid with a maximum true vapor pressure less than 3.5 kPa (0.5 psia) or vessels with capacities between 75 and 151 m3 storing a liquid with a maximum true vapor pressure less than 15.0 kPa (2.18 psia). For storage vessels greater than 151 m 3 in size containing a VOL with a maximum true vapor pressure between 5.2 kPa (0.75 psia) and 76.6 kPa (11.1 psia) and vessels sized between 75 and 151 m 3 storing a VOL with a maximum true vapor pressure between 27.6 kPa (4.0 psia) and 76.6 kPa (11.1 psia) should be equipped with either a fixed roof with an internal floating roof, an external floating roof, a closed vent system and control device, or an equivalent system. Storage vessels with capacities greater than 75 m 3 containing a VOL with a maximum true vapor pressure greater than or equal to 76.6 kPa should be equipped with a closed vent system and control device or equivalent system. 6.3.1.2 40 CFR Part 63 Subpart WW Controls 40 CFR Part 63, Subpart WW was written to be reference by other regulations to control air emissions from storage vessels and is considered by EPA as the standard for EFR and IFR requirements under NESHAP. Subpart WW was developed for the purpose of providing consistent EFR and IFR requirements for storage vessels that could be referenced by multiple NESHAP subparts. Like the NSPS Subpart Kb standards for floating roof tanks, Subpart WW is comprised of a combination of design, equipment, work practice, and operational standards. Both rules specify monitoring, recordkeeping, and reporting for storage vessels equipped with EFR and IFR and both include requirements for inspections to occur within defined timeframes. The inspections required by Subpart WW are intended to achieve the same goals as those inspections Pioneer Investments Corporation – Phillips 66 Corporation Reasonably Available Control Technology Analysis Report Issue Date: December 14, 2023 SLR Project No.: 118.01357.00013 6-9 required by Subpart Kb. Subpart WW allows for the visual inspection of the floating roof deck, deck fittings, and rim seals while the tank remains in service if physical access is possible. Subpart WW does not require the tank to be taken out of service to inspect the floating roof, rim seals and deck fittings which contrasts with Kb requirements. 6.3.1.3 Installation of a Vapor Recovery System The function of a vapor recovery system is to collect VOC emissions from storage tanks that can be routed to a fuel gas system for combustion as fuel. Vapor recovery can be achieved through carbon adsorption, condensation, or absorption. 6.3.2 Step 2 - Technical Feasibility of Control Technologies The above control technologies are technically feasible. All three tanks are currently subject and in compliance with NSPS Kb standards and NESHAP BBBBBB standards. 6.3.3 Step 3 - Effectiveness of Feasible Control Technologies All the above control options, degassing controls when storage tanks are taken out of service, installation of a vapor recovery system and NSPS Subpart Kb controls have equivalent control efficiencies. 6.3.4 Step 4 – Evaluation of Feasible Control Technologies Utah Administrative Code R307-327 presents the requirements of petroleum liquid storage in ozone nonattainment and maintenance areas. R307 -327-4 states (1) Any existing stationary storage tank, with a capacity greater than 40,000 gallons (150,000 liters) that is used to store volatile petroleum liquids with a true vapor pressure greater than 10.5 kPa (1.52 psia) at storage temperature shall be fitted with control equipment that will minimize vapor loss to the atmosphere. Storage tanks, except for tanks erected before January 1, 1979, which are equipped with external floating roofs, shall be fitted with an internal floating roof that shall rest on the surface of the liquid contents and shall be equipped with a closure seal or seals to close the space between the roof edge and the tank wall, or alternative equivalent controls. The owner/ operator shall maintain a record of the type and maximum true vapor pressure of stored liquid. (2) The owner/operator of a petroleum liquid storage tank not subject to (1) above but containing a petroleum liquid with a true vapor pressure greater than 7.0 kPa (1.0 psia), shall maintain records of the average monthly storage temperature, the type of liquid, throughput quantities, and the maximum true vapor pressure. The NSL Terminal IFR Tanks listed in Table 6-3 meet the requirements of R307-327. Since Phillips 66 is currently using the highest-ranking control options for the IFR tanks, energy, environmental and economic impact analyses are not required. 6.3.5 Step 5 – RACT Selection Internal floating roof tanks currently meeting NSPS Kb is considered RACT. In addition, IFR tanks that are currently meeting NESHAP BBBBBB [§63.11087(a)] control requirements are considered to meet RACT Thus, the existing IFR tanks at Phillips 66 NSL Terminal meet RACT requirements. IFR tanks at the NSL Terminal utilize mechanical shoe seals. During tank shutdown and degassing, the NSL Terminal lands the roofs and empties/degases the IFR tanks in a continuous operation. Pioneer Investments Corporation – Phillips 66 Corporation Reasonably Available Control Technology Analysis Report Issue Date: December 14, 2023 SLR Project No.: 118.01357.00013 6-10 6.4 RACT for External Floating Roof Storage Tanks The NSL Terminal operates six (6) external floating roof storage tanks (EFRT). An external floating roof tank consists of an open-top cylindrical steel shell equipped with a roof that floats on the surface of the stored liquid. There are two types of floating roofs, a double-deck roof and a pontoon roof. Both types of roofs rise and fall with the liquid level in the tank. Emissions from external floating roof tanks are due to standing storage losses from the rim seal system and deck fittings and withdrawal losses from the evaporation of exposed liquid on the tank walls. Withdrawal losses are generally due to liquid level fluctuations and standing storage losses originate from the rim seal and deck fittings. EFRTs operated at the NSL Terminal that reported emissions in 2017 are presented in Table 6-4. Table 6-4 External Floating Roof Tanks at NSL Terminal Tank ID Tank Size / Year Constructed Product Stored / True Vapor Pressure PTE VOC (tpy) 2017 VOC (tpy) TNK 201 80,000 bbl (3,360,000 gals) / 1953 Gasoline / < 4.68 psia (< 32.27 kPa) 4.97 0.68 TNK 204 40,000 bbl (1,680,000 gals) / 1952 1.34 0.01 TNK 211 80,000 bbl (3,360,000 gals) / 1953 9.46 3.81 TNK 214 40,000 bbl (1,680,000 gals) / 1952 4.22 2.22 TNK 221 80,000 bbl (3,360,000 gals) / 1953 4.97 3.43 TNK 224 1 20,000 bbl (840,000 gals) / 1953 Distillate / < 0.0085 psia (< 0.0586 kPa) 0.08 6.51 Total 25.04 16.66 1 – Tank 224 was storing Transmix in 2017, new PTE is based on storing distillate, hence emissions decrease for current PTE. 6.4.1 Step 1 – Identify all Available VOC Control Technologies Potential control technologies for VOC emissions from internal floating roof storage tanks include:  NSPS Subpart Kb,  40 CFR 63 Subpart WW Controls,  Degassing controls when storage tanks taken out of service,  Dome Retrofit, and  Installation of a Vapor Recovery System with Vapor Combustion. 6.4.2 Step 2 - Technical Feasibility of Control Technologies The Phillips 66 NSL Terminal is in an earthquake zone as well as an area that consistently gets considerable snowfall year over year. As such, the retrofit of external floating roof tanks with dome roofs is technically infeasible. Since a dome to capture emission is technically infeasible, the installation of a vapor recovery system with vapor combustion is also technically infeasible. The remaining control technologies are technically feasible. All six (6) EFR tanks currently meet NSPS Kb control requirements and are subject and in compliance with NESHAP BBBBBB control requirements and standards. Pioneer Investments Corporation – Phillips 66 Corporation Reasonably Available Control Technology Analysis Report Issue Date: December 14, 2023 SLR Project No.: 118.01357.00013 6-11 6.4.3 Step 3 - Effectiveness of Feasible Control Technologies The remaining control options, NSPS Kb controls/NESHAP BBBBBB, and degassing controls when storage tanks are taken out of service, have equivalent control efficiencies, and will vary by tank. 6.4.4 Step 4 – Evaluation of Feasible Control Technologies As stated previously, all six (6) EFR tanks listed in Table 6-4 currently meet NSPS Kb control requirements and are subject and in compliance with NESHAP BBBBBB control requirements and standards. 6.4.5 Step 5 – RACT Selection All six (6) of the NSL Terminal EFR tanks currently meet NSPS Kb control requirements which is considered to meet RACT. In addition, EFR tanks that are currently meeting NESHAP BBBBBB [§63.11087(a)] control requirements are considered to meet RACT Thus, the existing EFR tanks at Phillips 66 NSL Terminal meet RACT requirements. EFR tanks at the NSL Terminal utilize primary mechanical shoe seals and continuous rim-mounted secondary seals. During tank shutdown and degassing, the NSL Terminal lands the roofs and empties/degases the EFR tanks in a continuous operation. 6.5 RACT for Equipment Leaks The NSL Terminal is a small source of VOC emissions associated with onsite equipment components such as valves, flanges, compressors, and piping in gasoline services. As with most facilities that are sources of fugitive VOC emissions from equipment leaks, the NSL Terminal has implemented onsite maintenance procedures to identify and eliminate equipment leaks. In addition, the facility is subject to NESHAP BBBBBB §63.11089 that requires the facility to perform monthly leak detection and repair (LDAR) inspections of all equipment in gasoline service, thereby minimizing VOC emissions. The monthly LDAR inspections consist of audio, video, olfactory (AVO) which includes conducting site surveys for equipment leaks and relying on sight, sound, and smell to identify and locate equipment leaks and qualitatively assess the concentration of the leak [§63.11089(a)]. Each detection of a liquid or vapor leak is recorded in a logbook and an initial attempt to repair the leak is made as soon as possible, but no later than 5 calendar days after the leak is detected. Repair or replacement of leaking equipment is completed within 15 calendar days, unless the repair is not feasible within 15 days [§63.11089(c) & (d)]. An LDAR instrument-based monitoring program typically includes conducting site survey for equipment leaks using an instrument (flame ionization detector, photoionization detector, or infrared camera, etc.) to identify and locate equipment leaks and quantitatively assess the concentration of the leak. The implementation of an instrument based LDAR program requires hiring external contractors to support the proper implementation of the program considering personnel availability, training, instrumentation requirements, etc. Considering the additional investment needed by the NSL Terminal to support an instrument based LDAR program either supported by external contractor or by site personnel for minimal additional reduction in VOC emissions, RACT is determined to be to continue to comply with NESHAP BBBBBB §63.11089. Pioneer Investments Corporation – Phillips 66 Corporation Reasonably Available Control Technology Analysis Report Issue Date: December 14, 2023 SLR Project No.: 118.01357.00013 7-1 7.0 Summary of NOx and VOC RACT Analyses At the request of the UDAQ, a NOx and VOC RACT analysis was prepared for the following emission units in operation at the NSL Terminal:  One (1) Diesel-Fired Emergency Engine (NOx RACT)  Two (2) Loading Racks (VOC RACT)  Storage Tanks (VOC RACT) o Six (6) Vertical Fixed Roof Storage Tanks o Four (4) Internal Floating Roof Storage Tanks o Six (6) External Floating Roof Storage Tanks  Fugitive Emissions/Equipment Leaks (VOC RACT) VOC emissions from the emergency diesel-fired CI-ICE were not reviewed for RACT as the potential to emit VOC emissions from the emergency engine total 0.04 tpy. The flares and associated vapor collection system at the NSL Terminal were installed to control the VOC vapors from the loading racks per 40 CFR 63 BBBBBB. As such, the NO x emissions from the flares controlling the Loading Racks were also not evaluated for NOx RACT purposes as they already meet RACT and were installed to meet BACT and NSPS XX and NESHAP BBBBBB requirements.Table 7-1 summarizes the RACT determinations for each emission unit/source. Table 7-1 Summary of RACT Determinations for Each Source Source RACT Determination Diesel-Fired Emergency CI ICE Good operational practices according to the manufacturer’s recommendations and design, proper maintenance and operation, and compliance with applicable NESHAP ZZZZ requirements. Loading Racks Use of the existing VCS and flares, compliance with the work practice standards of NSPS XX and NESHAP BBBBBB, including loading to certified vapor-tight cargo tank trunks, and use of the VCS and flares to attain emission rates for NOx and VOC (4.0 mg NOx/liter and 10.0 mg TOC/liter gasoline loaded respectively). VFRT Good design methods and operating procedures and keeping records of the type and maximum true vapor pressure of stored liquid in each VFRT. IFRT Compliance with NSPS Kb and NESHAP BBBBBB. The IFR tanks utilize mechanical shoe seals. During tank shutdown and degassing, the NSL Terminal lands the roofs and empties/degases the IFR tanks in a continuous operation EFRT Continue to meet NSPS Kb control requirements and compliance with NESHAP BBBBBB. The EFR tanks utilize primary mechanical shoe seals and continuous rim-mounted secondary seals. During tank shutdown and degassing, the NSL Terminal lands the roofs and empties/degases the EFR tanks in a continuous operation. Equipment Leaks Comply with NESHAP BBBBBB §63.11089 (LDAR - AVO). . Appendix A 2017 Emission Inventory Reasonably Available Control Technology Analysis North Salt Lake Products Terminal Pioneer Investments Corporation – Phillips 66 Corporation SLR Project No.: 118.01357.00013 Report Issue Date: December 14, 2023 Phillips 66 Company Products Terminal Report Year 2017 First day of current year:1/1/2017 Site: North Salt Lake Terminal, UT Number of days in current year:365 POINT NAME ANNUAL PROCESS RATE PROCESS RATE UNITS EMISSION FACTOR EMISSION FACTOR UNITS POUNDS TONS Pollutant BULK TERMINALS- LOADING Loading Rack 373,197 1000 gallons 0.0543 lbs/1000 gallons 20,251 10.1257 VOC 373,197 1000 gallons 0.0145 lbs/1000 gallons 5,403 2.7016 NOx 373,197 1000 gallons 0.0287 lbs/1000 gallons 10,696 5.3482 CO 373,197 1000 gallons 0.0002 lbs/1000 gallons 58 0.0290 SOx 373,197 1000 gallons 0.0000 lbs/1000 gallons 1 0.0006 PM 373,197 1000 gallons 16.2669 lbs/1000 gallons 6,070,778 3,035.3891 CO2 373,197 1000 gallons 0.0007 lbs/1000 gallons 258 0.1288 CH4 373,197 1000 gallons 0.0001 lbs/1000 gallons 51 0.0257 N2O 373,197 1000 gallons 16.3252 lbs/1000 gallons 6,092,528 3,046.2642 CO2e Loading Not Captured (if controlled)373,197 1000 gallons 0.0685 lbs/1000 gallons 25,573.87 12.7869 VOC VCU,Pilot Gas Emissions 373,197 1000 gallons 0.0000 lbs/1000 gallons 3 0.0017 VOC Fugitive Components 373,197 1000 gallons 0.0019 lbs/1000 gallons 727.22 0.3636 VOC Miscellaneous Emissions 373,197 1000 gallons 0.0061 lbs/1000 gallons 2,265.17 1.1326 VOC Tank 201 59,132 1000 gallons 0.0229 lbs/1000 gallons 1,351.33 0.6757 VOC Tank 202 2,209 1000 gallons 0.0959 lbs/1000 gallons 211.82 0.1059 VOC Tank 203 0 1000 gallons 0.0000 lbs/1000 gallons 0.00 0.0000 VOC Tank 204 2,312 1000 gallons 0.0048 lbs/1000 gallons 11.10 0.0056 VOC Tank 205 77,464 1000 gallons 0.0145 lbs/1000 gallons 1,122.82 0.5614 VOC Tank 206 1,749 1000 gallons 0.1204 lbs/1000 gallons 210.63 0.1053 VOC Tank 211 83,043 1000 gallons 0.0918 lbs/1000 gallons 7,622.22 3.8111 VOC Tank 212 24,422 1000 gallons 0.0274 lbs/1000 gallons 669.11 0.3346 VOC Tank 214 17,365 1000 gallons 0.2554 lbs/1000 gallons 4,434.36 2.2172 VOC Tank 215 40,955 1000 gallons 0.0227 lbs/1000 gallons 929.55 0.4648 VOC Tank 216 2,718 1000 gallons 0.0832 lbs/1000 gallons 226.09 0.1130 VOC Tank 221 83,297 1000 gallons 0.0825 lbs/1000 gallons 6,869.67 3.4348 VOC Tank 224 5,769 1000 gallons 2.2562 lbs/1000 gallons 13,016.87 6.5084 VOC Tank 225 54,412 1000 gallons 0.1309 lbs/1000 gallons 7,121.32 3.5607 VOC Tank 226 0 1000 gallons 0.0000 lbs/1000 gallons 1,244.42 0.6222 VOC Tank 227 140,311 1000 gallons 0.0227 lbs/1000 gallons 3,179.39 1.5897 VOC Tank 228 80,847 1000 gallons 0.1847 lbs/1000 gallons 14,930.46 7.4652 VOC 55.99 tpy VOC 2.70 tpy NOx 5.35 tpy CO 0.000 tpy SO2 0.001 tpy PM 3,035.39 tpy CO2 0.13 tpy CH4 0.03 tpy N2O 3,046.26 tpy CO2e Site Wide Emissions Totals, TPY State of Utah SPENCERJ. COX Govemor DEIDRE HENDERSON Lieutenant Governor Department of Environmental Quality Kimberly D. Shelley Executive Director DTVISION OF AIR QUALITY Bryce C. Bird Director DAQPf42-23 Ill4:ay 31,2023 Morgan Bosch Pioneer lnvestments Corporation - Phillips 66 Corporation 245 East 1100 North North Salt Lake, utah 84054 morgan.n.bosch@p66. com Dear Morgan.Bosch: RE: Serious Ozone Nonattainment Area Designation - Potential tmpact to Pioneer Inveftments Corporation - Phillips 66 Corporation The Division of Air Quality (DAQ) has identified your facility as having the potentiat to U.[orn. u major stationary source located in the Ozone Nonattainment Area (NAA) in the Wasatch Fr]ont. DAQ anticipates that the Environmental Protection Agency (EPA) will redesignate the Northern Wasatch Front ozone NAA to serious classification in February of 2025. A serious nonattaifrment classification will trigger requirements for major stationary sources and new thresholds for tnajor stationary sources that will potentially apply to your facility. This letter provides a background of the requirements for ozone nonattainment areas, a sumpary of the requirements that will apply to major stationary sources in or impacting these areas, dnd upcoming next steps. Action will be required from Pioneer Investments Corporation - fLiUips OO Co.poration, as detailed in the "Next Steps and RACT Requirements" sectfon of this letter. Background On August 3,2018,EPA designated the Northern Wasatch Front as marginal nonattainmenf for the 2015 eight-hour ozone standard. The Northern Wasatch Front NAA includes all or part gf Salt Lake, Davis, Weber, and Tooele counties. 195 North 1950 West . Salt take City, Lrf Mailing Address: P.O. Box 144820 . Salt lake City, UT 84114-4820 Telephone (801) 5364000 . Fax (801) 5364099. T.D.D. (801) 903-3978 w.deq.utah.gov Printed on l00o/o recycled paper DAQP-042-23 Page2 The Northern Wasatch Front was required to attain the ozone standard by August 3,2021, for marginal classification. However, the Northern Wasatch Front NAA did not attain the ozone standard by the attainment date and was reclassified to moderate status on November 1,2022.The Northern Wasatch Front NAA is required to attain the ozone standard by August 3,2024,for moderate classification based on data fuom2021,2022, and2023. Recent monitoring data indicates the Northem Wasatch Front NAA will not attain the standard and will be reclassified to serious status in February of 2025. This anticipated reclassification from moderate to serious status will trigger new control strategy requirements for major sources in the Northern Wasatch Front NAA. Specifically, the Ozone Implementation Rule in 83 FR 62998 requires the State Implementation Plan (SIP) to include Reasonably Available Control Technologies (RACT) for all major stationary sources in nonattainment areas classified as moderate or higher. The requirements for RACT in a serious ozone nonattainment area are found in Clean Air Act (CAA) Section 182(c). A major stationary source in a serious ozone nonattainment area is defined as any stationary source that emits or has the potential to emit 50 tons per year or more of nitrogen oxides lNOr) or volatile organic compounds (VOCs). The exact dates for the submittal of SIP RACT and RACT implementation will be announced when EPA publishes the notice of reclassification in the federal register. However, based on the general timeline provided in the Ozone Implementation Rule, DAQ anticipates the following schedule: 1) Reclassification to serious February of 2025. 2) Serious SIP is due to EPA January l,2026,within 12 months from the effective date of reclassification. 3) RACT measures will be required to be implemented as expeditiously as practicable but likelybefore May of 2026. Nert Steps and RACT Requirements DAQ has identified your facility as having the potential to emit 50 tons per year or more of NO* and/or VOCs. After the Northern Wasatch Front NAA is reclassified to serious status in February of 2025, your facility will be considered a major stationary source. As a major stationary source, you will be required to submit a RACT analysis for the emission unit(s) at your facility, as well as apply for a Title V permit within 12 months ofbecoming a Title V source. To meet the RACT requirements of the Ozone Implementation Ru1e, DAQ is soliciting RA.CT analyses for the control of NO* and VOC emissions from all major stationary sources or potential major stationary sources located in or impacting the Northern Wasatch Front NAA. DAQ will review the RACT analyses submitted and make a RACT determination for each affected emission unit. DAQP-042-23 Page 3 The requirements for RACT in CAA Section 182(c) and (f) are specific to major stationary sources of VOCs and NO* in a nonattainment area. Major stationary sources located outside a nonattainment area but impacting the nonattainment area are required to submit a RACT analysis under the provisions of CAA 172(c)(6\ Other Measures. This provision states that other measures may be implemented if attainment cannot be demonstrated by the applicable attainment date with the controls implemented within the nonattainment area. DAQ is soliciting RACT analyses from sources with the potential to impact the Wasatch Front NAA; however, RACT will only be required for these sources ifnecessary. DAQ has identified your facility as having the potential to become a major stationary source located in or impacting the Northem Wasatch Front NAA. Due to the location and potential to emit from your facility, DAQ is requesting either: 1) a RACT analysis for the emission units at your facility; or 2) a Notice of Intent (NOI) application to lower the potential to emit from your fac{lity to below 50 tons per year of NO* and VOCs. If choosing to lower the potential to emit from your facility, please submit a NOI application to DAQ by July 31,2023. Otherwise, please submit a RACT analysis to DAQ by January 2, 2024. The RACT submittal requirements are listed in the attachment to this letter. NOI applications and RACT analyses shall be submitted to Ana Williams at an arv illiams (ri u tah. gov. Inventorv and Modeling Data The SIP process requires that DAQ perform a modeling demonstration to evaluate attainment. As part of this evaluation, DAQ will model baseline emissions based on the 2017 emissions inyentory and projected emissions for future years. DAQ anticipates preparing the modeling emissions inventory for point sources in early 2024.This emission inventory data will incorporate RACT to existing equipment and any anticipated changes to the facility. DAQ will work with major stationary sources to prepare the emission inventgry data for each affected facility that will be included in the model. DAQ will contact major sources in late 2023 to develop emissions inventory data. No action is required at this time. DAQP-042-23 Page 4 Additional Information Additional information regarding major source requirements and timelines can be found here: sip-development You can also sign up for the ozone SIP email list on the website above. Informational Meeting DAQ invites you to attend an informational meeting June 13, 2023, from 1:00pm-2:00pm. The meeting will be held at the DAQ ofEces in the Multi-Agency State Office Building first floor Boardroom 1015 with an option to attend virtually. You will receive an email with a meeting invitation in the coming weeks. At this meeting DAQ staffwill provide information regarding regulatory timelines and the actions DAQ will be obligated to take to meet the new requirements for a serious classification. We will provide an opportunity during the meeting for you to ask questions. You may also submit written questions to DAQ after the meeting. Please contact Ana Williams at (385) 306-6505 with any questions. Sincerely, 4*clil Bryce C. Bird Director BCB:AW:my DAQP-042-23 Page 5 ATTACHMENT - RACT Submittal Requirements The RACT proposals to be submitted to DAQ must include the following: 1) A list of each NO* and VOCs emission unit at the facility. All emission units with a potential to emit either NO* or VOCs must be evaluated. 2) Aphysical description of each emission unit and its operating characteristics, including but not limited to: the size or capacity of each affected emission unit; types of fuel combusted; the types and quantities of materials processed or produced in each affected emissioh unit. 3) Estimates of the potential and actual NO* and VOC emissions from each affected source, and associated supporting documentation. 4) The actual proposed alternative NO* RACT requirement(s) or NO* RACT emissionq limitation(s), and/or the actual proposed VOC requirement(s) or VOC RACT emissions limitation(s) (as applicable). 5) Supporting documentation for the technical and economic considerations for each affected emission unit. 6) A schedule for completing implementation of the RACT requirement or RACT emissions limitation by May of 2026, including start and completion of project and schedule for initial compliance testing. 7) Proposed testing, monitoring, recordkeeping, and reporting procedures to demonstrate compliance with the proposed RACT requirement(s) and/or limitation(s). 8) Additional information requested by DAQ necessary for the evaluation of the RACT analyses. RACT analyses due to DAQ bv Januarv 2.2024.