Facility Design & Environmental

Potential to Emit (PTE)

Fundamentals of Potential to Emit calculations for air permitting of midstream oil and gas facilities. Covers maximum capacity methodology, emission factor hierarchy, enforceable limitation credits, and step-by-step PTE determination for each emission unit type.

Maximum Hours

8,760 hr/yr

PTE assumes continuous operation unless limited.

EPA Reference

AP-42

Compilation of Air Pollutant Emission Factors.

PTE vs. Actual

Max Capacity

PTE reflects maximum design, not actual operations.

1. PTE Overview

Potential to Emit (PTE) is the maximum capacity of a stationary source to emit a pollutant under its physical and operational design. PTE represents the worst-case emission scenario and is used to determine regulatory applicability, including whether a facility is classified as a major or minor source under the Clean Air Act.

PTE vs. Actual Emissions

PTE and actual emissions are fundamentally different concepts. PTE reflects what a facility could emit if every emission unit operated at maximum capacity for 8,760 hours per year (24/7/365) with no downtime, using worst-case emission factors. Actual emissions reflect what the facility does emit based on real operating hours, throughput, and conditions. A facility with a PTE of 200 TPY of NOx might actually emit only 50 TPY based on normal operations. However, for regulatory classification purposes, PTE is what matters unless reduced by enforceable limitations.

Legal Definition

Under 40 CFR 70.2, PTE is defined as the maximum capacity of a stationary source to emit any air pollutant under its physical and operational design. Any physical or operational limitation on the capacity of a source to emit an air pollutant, including air pollution control equipment and restrictions on hours of operation or on the type or amount of material combusted, stored, or processed, shall be treated as part of its design if the limitation is enforceable by the EPA administrator.

When PTE Is Calculated

Scenario PTE Purpose
New facility construction Determine permit type required (PBR, minor, Title V)
Facility modification Assess whether modification triggers NSR or PSD review
Equipment addition Re-evaluate facility-wide PTE with new equipment
Permit renewal Update PTE for current equipment inventory
Regulatory compliance check Confirm continued minor source status

2. Calculation Methodology

PTE is calculated for each individual emission unit at the facility, then summed to determine the facility-wide PTE for each pollutant. The general formula applies to all emission unit types, though the specific inputs vary.

General PTE Formula

PTE = EF × A × H × (1 − CE) / CF

Where:

EF = emission factor (mass per unit of activity)

A = maximum activity rate (e.g., MMBtu/hr, gal/hr)

H = annual operating hours (8,760 unless limited)

CE = control efficiency (decimal, 0 unless enforceable)

CF = conversion factor (2,000 lb/ton for US tons)

Step-by-Step PTE Determination

Step Action Key Consideration
1Inventory all emission unitsInclude engines, tanks, fugitives, vents, flares, pneumatics
2Identify pollutants for each unitNOx, CO, VOC, SO2, PM, HAPs, GHGs
3Determine maximum activity rateMaximum rated capacity, not typical operating rate
4Select emission factorsUse hierarchy: stack test > manufacturer > AP-42
5Apply operating hours8,760 hr/yr unless enforceable limit exists
6Credit enforceable controlsOnly controls with enforceable permit conditions
7Sum by pollutantTotal all units for each pollutant
8Compare to thresholdsTitle V: 100 TPY; HAP: 10/25 TPY; PSD: 250 TPY

Maximum Capacity Assumption

PTE calculations must use the maximum rated capacity of each emission unit, not the expected or typical operating rate. For example, a 1,000 HP compressor engine rated at 1,000 HP must use 1,000 HP in PTE calculations even if it normally operates at 800 HP. Similarly, a 10,000-barrel storage tank must assume maximum throughput at maximum vapor pressure conditions. Using actual or expected operations instead of maximum design capacity is the most common PTE calculation error and can result in enforcement actions.

3. Emission Factor Sources

The accuracy and regulatory acceptability of PTE calculations depend heavily on the emission factors used. EPA and state agencies have established a hierarchy of emission factor quality.

Emission Factor Hierarchy

Priority Source Quality Rating Application
1 Stack test data (site-specific) A (highest) Existing equipment with recent test data
2 Manufacturer guaranteed data A–B New equipment with emission guarantees at site conditions
3 CEMS data A Continuous monitoring data from same or similar equipment
4 AP-42 emission factors B–E Default when site-specific data unavailable
5 Material balance B–C Process vents, storage tanks, loading operations
6 Engineering estimates D–E Last resort; requires documentation of assumptions

Key AP-42 Sections for Midstream

AP-42 Section Source Category Pollutants Addressed
3.2 Natural gas-fired reciprocating engines NOx, CO, VOC, PM, SO2, formaldehyde
3.1 Stationary gas turbines NOx, CO, VOC, PM, SO2
1.4 Natural gas combustion (boilers, heaters) NOx, CO, VOC, PM, SO2
5.3 Glycol dehydration units VOC, HAPs (BTEX)
7.1 Storage tanks (organic liquids) VOC, HAPs
5.2 Transportation and marketing of petroleum liquids VOC, HAPs
13.5 Industrial flares NOx, CO, VOC, SO2

AP-42 Quality Ratings

AP-42 assigns quality ratings from A (excellent, based on extensive testing) to E (poor, based on engineering judgment). For PTE calculations, lower-rated factors tend to be more conservative (higher), which may overestimate PTE and push a facility toward major source status. When AP-42 factors seem unreasonably conservative, site-specific stack testing can provide more accurate emission factors, potentially reducing PTE and maintaining minor source status.

4. Combustion Source PTE

Combustion sources (compressor engines, gas turbines, heaters, and boilers) are typically the largest contributors to PTE at midstream facilities, particularly for NOx and CO.

Engine PTE Calculation

PTE (tons/yr) = EF (g/hp-hr) × HP × 8,760 hr/yr × (1 lb / 453.6 g) × (1 ton / 2,000 lb)

Simplified: PTE = EF × HP × 0.009646

Example: Single Engine PTE

Parameter Value
Engine type4-stroke lean burn (4SLB)
Rated horsepower1,340 HP
NOx emission factor2.0 g/hp-hr (with SCR)
CO emission factor2.4 g/hp-hr
VOC emission factor0.68 g/hp-hr
Formaldehyde emission factor0.21 g/hp-hr
Pollutant Calculation PTE (TPY)
NOx2.0 × 1,340 × 0.00964625.85
CO2.4 × 1,340 × 0.00964631.02
VOC0.68 × 1,340 × 0.0096468.79
Formaldehyde0.21 × 1,340 × 0.0096462.72

Multiple Engines at One Facility

PTE is additive across all emission units. A compressor station with four 1,340 HP engines would have a NOx PTE of 4 × 25.85 = 103.4 TPY, exceeding the 100 TPY Title V threshold. This illustrates how quickly PTE accumulates at multi-engine facilities and why synthetic minor limitations (such as operating hour restrictions) are frequently needed to maintain minor source status.

5. Fugitive Emissions PTE

Fugitive emissions from equipment leaks at valves, connectors, flanges, pump seals, and compressor seals contribute to both VOC and HAP PTE. These emissions are estimated using component count methods with EPA emission factors.

EPA Protocol Emission Factors

Component Type Service Emission Factor (kg/hr/component)
ValvesGas0.00597
ValvesLight liquid0.00403
Pump sealsLight liquid0.01990
Compressor sealsGas0.22800
ConnectorsAll0.00183
FlangesAll0.00081
Open-ended linesAll0.00170
Pressure relief valvesGas0.10400

Fugitive PTE Calculation

PTEVOC = ∑ (EFi × Ni) × 8,760 × WFVOC × 2.205 / 2,000

Where EFi = emission factor for component type i (kg/hr), Ni = count of component type i, WFVOC = VOC weight fraction in stream, 2.205 converts kg to lb

Component Counts for New Facilities

For new facilities without detailed P&IDs, component counts can be estimated from typical equipment ratios. A typical gas compressor station with two units might have approximately 200–400 valves, 500–1,000 connectors, 50–100 flanges, and 2–4 compressor seals. More accurate counts from P&IDs should replace estimates as the design progresses. LDAR (Leak Detection and Repair) program implementation with enforceable monitoring can significantly reduce fugitive PTE.

6. Venting & Flaring PTE

Routine and non-routine venting and flaring contribute to VOC, HAP, and combustion pollutant PTE. Sources include pneumatic controllers, glycol dehydrator still vents, tank breathing and flashing losses, blowdowns, and emergency relief events.

Pneumatic Device PTE

Device Type Bleed Rate (scf/hr) VOC PTE per Device (TPY)
High-bleed controller > 6 scf/hr 0.3–1.5 (depends on gas composition)
Low-bleed controller < 6 scf/hr 0.05–0.3
Intermittent-bleed controller Varies with actuation frequency 0.1–0.5
Zero-bleed (instrument air or electric) 0 0

Storage Tank PTE

Storage tank emissions result from working losses (filling and emptying) and breathing losses (thermal expansion and contraction). PTE is calculated using EPA TANKS 4.09d software or AP-42 equations using maximum throughput and worst-case meteorological conditions.

Tank Type PTE Method Key Parameters
Fixed roof AP-42 Section 7.1 equations Vapor pressure, throughput, tank dimensions, paint color
Floating roof (external) AP-42 Section 7.1 equations Seal type, wind speed, rim gap
Pressurized (flash emissions) E&P TANKS or process simulation Feed composition, separator conditions, tank pressure

Flare PTE

Flare combustion emissions:

NOx = 0.068 lb/MMBtu × max heat input (MMBtu/hr) × 8,760 / 2,000

CO = 0.37 lb/MMBtu × max heat input (MMBtu/hr) × 8,760 / 2,000

Flare VOC destruction credit: 98% destruction efficiency (per 40 CFR 60.18)

7. Enforceable Limitations

PTE can be reduced below major source thresholds by accepting federally enforceable emission limitations in a permit. Only limitations that meet specific enforceability criteria can be credited in PTE calculations.

Enforceability Criteria

Requirement Description Example
Legally binding Condition in a state or federal permit, consent order, or SIP rule Minor NSR permit condition limiting engine hours
Specific limit Quantified emission limit or operational restriction "Engine shall not operate more than 6,000 hrs/yr"
Monitoring Method to verify compliance with the limit Non-resettable hour meter; monthly fuel records
Recordkeeping Documentation sufficient to demonstrate compliance Monthly operating hour logs retained 5 years
Reporting Periodic compliance reports to the regulatory agency Annual compliance certification to TCEQ

What Does NOT Reduce PTE

The following cannot be used to reduce PTE: (1) internal company policies or operating procedures, (2) economic constraints or market conditions, (3) historical operating data showing lower actual emissions, (4) physical inability to operate 8,760 hours due to maintenance (unless maintenance schedule is in a permit), (5) fuel supply limitations (unless contractually enforceable), or (6) voluntary emission reduction programs without permit conditions. Only conditions enforceable by the EPA administrator (or delegated state agency) count for PTE reduction.

Common Enforceable Limitation Strategies

Strategy Effect on PTE Monitoring Required
Hour limits per engine Reduces hours from 8,760 to permitted value Non-resettable hour meters; monthly logs
Fuel usage cap Limits heat input and proportional emissions Fuel meters; monthly consumption records
Throughput limit Caps production-related emissions Flow meters; daily/monthly records
Emission control requirement Credits control efficiency against uncontrolled EF Initial and periodic stack testing; parametric monitoring
Equipment count limit Caps number of emission units Equipment inventory; change notification

8. PTE Calculation Examples

The following examples illustrate PTE calculations for typical midstream facility configurations, showing how individual unit PTE is summed to determine facility-wide applicability.

Example: Gas Compressor Station

Emission Unit NOx (TPY) CO (TPY) VOC (TPY) Formaldehyde (TPY)
Engine #1 (1,340 HP lean burn) 28.4 31.0 8.8 2.7
Engine #2 (1,340 HP lean burn) 28.4 31.0 8.8 2.7
Glycol dehydrator 0.5 0.2 12.5
Condensate tanks (2) 5.2
Fugitive emissions 3.5
Pneumatic devices (20) 4.0
Facility Total 57.3 62.2 42.8 5.4

Threshold Assessment

In this example, no single criteria pollutant exceeds 100 TPY, so the facility is a minor source for Title V purposes. However, the combined HAPs (formaldehyde + BTEX from dehydrator + fugitives) should be checked against the 10/25 TPY HAP thresholds. If an additional engine were added, NOx PTE would reach approximately 85.7 TPY, approaching the 100 TPY threshold and potentially requiring synthetic minor limitations.

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