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ProgrammaticNew Source Review

November 2, 2005

Malcolm C. WeissJeffer, Mangels, Butler & Marmaro

LLP1900 Avenue of the StarsLos Angeles, CA 80067

(310) 712-6822

mweiss@jmbm.com3748292

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Responsible Agencies Federal – U.S. Environmental Protection

Agency (implements CAA, sets goals, national policies and regulatory framework)

State – California Air Resources Board (mobile sources, coordinate with local/federal agencies, state standards, SIP)

Local – Air Quality Management Districts (SCAQMD) (stationary sources, permitting, prohibitory rules, compliance, AQMP, MR&R)

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Clean Air Laws Overview

1970 – Fed. Clean Air Act Adopted 1977 – Major Amendment to CAA 1988 – California CAA 1990 – Major New Amendments

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1970 Clean Air Act

First major federal air legislation

U.S. EPA created (ARB created in 1967)

Earth Day - April 22, 1970

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1970 Clean Air Act (cont.)

Authority delegated to states Establishes National Ambient Air Quality

Standards (NAAQS) State Implementation Plans required Begins national permit programs New Source Review (NSR) States to meet NAAQS by 1975

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1977 CAA Amendments

Gives states more time to meet NAAQS

Expands NSR Applicable to new sources Major modifications at existing

facilities Review of NAAQS by 1980 Attainment and Nonattainment areas

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1977 CAA Amendments (cont.)

Basic Applicable Requirements Prevention of Significant Deterioration of

Air Quality (Part C) (“PSD”) Plan Requirements for Nonattainment areas

(Part D) (“NSR”)

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1990 CAA Amendments Overview

Title I - Attain and maintain NAAQS Title II - Mobile sources Title III - Hazardous air pollutants Title IV - Control acid rain Title V - National uniform permit system Title VI - Stratospheric ozone protection Title VII - Enforcement

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1990 CAA Amendments

Classifies ozone nonattainment areas – marginal, moderate, serious, severe, and extreme

Classifications trigger stringency of requirements

Extends attainment dates for extreme areas

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CaliforniaThen and Now

1970 California's

population is 20 million

More than 12 million vehicles

VMT is 110 billion miles

2000 California's

population is 34 million

More than 23 million vehicles

VMT is 280 billion miles

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Motor Vehicle Impacts

Up to 50% of NOx and VOC (smog) > 50% of hazardous air pollutants 90% CO in urban areas

01020

3040

5060

7080

90

NOx HAP CO

Mobile Sources

Stationary Sources

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Air Quality Management Plan

SCAQMD Air Quality Analysis Overall Planning Stationary Sources

SCAG Transportation Growth Management Land Use

ARB Mobile sources Vehicle standards/ fuel Consumer products

Strategies All known control

technologies Technology forcing and

incentives Major technology

breakthroughs

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Part D of Title I: Federal NSR

Permits required to construct new or modified major stationary sources

NSR and the permitting process are linked

Expanded opportunity for public comments

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Federal NSR (cont.)

New Sources - NSR is triggered only if the emissions make it a major source

Existing Sources - NSR is triggered if the modification significantly increases emissions

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Federal NSR (cont.)

Permits to Construct/Operate require that major stationary sources: Install equipment to meet the Lowest Achievable

Emission Rate (LAER) Obtain offsets (ratios) Demonstrate that all major sources under common

ownership/control comply

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NSR Reform

Reform was urged because of the growing indication that current regulations hinder, rather than promote improvements in air quality

SCAQMD has filed a lawsuit contesting the reforms

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NSR Reform

Routine Equipment Replacement Rule (10/27/03). Equipment replacement is excluded from NSR if:

It replaces an existing process unit; with functionally equivalent components; the cost of the replaced is < 20% of the

replacement value of the entire process unit; the basic design of the equipment does not

change; and emissions limits not exceeded.

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ProgrammaticNew Source Review

November 2, 2005

Malcolm C. WeissJeffer, Mangels, Butler & Marmaro

LLP1900 Avenue of the StarsLos Angeles, CA 80067

(310) 712-6822

mweiss@jmbm.com3748292