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New Source Review Rules Update

Jessica MontanezU.S. Environmental Protection Agency

Office of Air Quality Planning and StandardsAir Quality Policy Division

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Agenda

1. Brief Introduction to New Source Review 2. Tribal NSR Rules

• Rule Items • Implementation Items

3. Other NSR Rulemakings/Actions

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New Source Review (NSR)

• Requires industrial facilities to install modern pollution control equipment when:– they are built or

– when making a change that increases emissions significantly

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NSR (Continued)

• Purpose is to ensure environmental protection while allowing economic growth

– Accomplished through permits• Enforceable legal documents• Requirements vary depending on NSR program type

New Source Review (NSR) Program

Major NSRin attainmentareas (PSD)

Major NSRin nonattainment

areas (NA NSR)

Minor NSRin all areas

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General Permitting Process (New Sources)

StartDetermine source

emissions (PTE per pollutant)

Are emissions ≥

applicable threshold? (based on

area classification, per pollutant)

Source not subject to NSR

Source owner submits permit

application

Reviewing Authority:• Reviews application

• Performs control technology review

• Reviews or performs other requirements

Develop draft permit

Issue final permitEnd

30 day comment

period

Provisions for appealsavailable

No

Yes

Public Hearing IfSufficientInterest

PTE: Potential to Emit

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Tribal NSR Rules

• Will establish NA NSR and Minor NSR program in Indian country

• Schedule– Proposal Published on August 21, 2006– Comment Period Closed March 20, 2007– Final Rule Scheduled for February 2010

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Tribal NSR Rules – Main Items Under Consideration for Final Rule

I. Minor NSR Programa. Applicability

1. Minor NSR Thresholds2. List of Exempted Units

and Activities3. Accounting of Fugitive

Emissions4. Treatment of Existing

Minor Sources 5. Applicability Test for

Modificationsb. Permit Application

1. Air Quality Impact Analysis Requirements

2. General Permits Issues3. Case-by-Case MACT

Determinations4. Synthetic Minor Sources

I. Minor NSR Program (Cont.)

c. Permit Appeals1. Type of Review: Judicial or

Administratived. Implementation

1. Delay Effective Date Depending on Type of Source

II. Major NSR Programa. Permit Application

1. Offset Waivers2. Compliance Certification

Area

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Tribal NSR Rules - Implementation Items

I. Regional Workgroup a. Permit Review Process

Timeline b. Public Notice Templates c. General Permits:

a. Industrial Boilersb. Oil & Gas Industryc. Gas Stations - Work not

yet initiated

II. Tribal Workgroupa. Developed draft document:

Consultation and Communication with Indian Governments – Tips for Establishing a Productive Relationship

b. Developing templates (with OAQPS help) to request delegation of the three NSR programs

c. Has raised questions about: 40CFR 52.21(u) – Delegation of Authority for PSD program

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Other Upcoming NSR Rulemakings – Reasonable Possibility

• Identifies when a major source undergoing a physical or operational change not triggering major NSR permitting requirements must keep records

• Proposal Published on March 8, 2007• Final Rule Published on December 21, 2007• EPA Granted Rule Reconsideration on April 24,

2009

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Other Upcoming NSR Rulemakings – Fugitive Emissions

• Fugitive Emissions:– Emissions that could not reasonably pass through a stack,

chimney, vent or other functionally equivalent opening• Final rule requires that fugitive emissions be included

in determining whether a physical or operational change results in a major modification only for industries under section 302(j) of the Act

• Proposal Published on November 13, 2007• Final Rule Published on December 19, 2008• EPA Granted Rule Reconsideration on April 24, 2009

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Other Upcoming NSR Rulemakings – Aggregation

• In 2006, EPA proposed three changes to the NSR program – Aggregation, Debottlenecking and Project Netting:– Changes related to which emissions increases and decreases to

consider in determining major NSR applicability for sources undergoing a physical or operational change

• Proposal Published on September 14, 2006 • Final Rule (Aggregation Only) Published on January 15, 2009

– Sources and reviewing authorities should combine emissions when projects are substantially related either technically or economically

• EPA Granted Rule Reconsideration on February 13, 2009 • Another Final Rule Published on May 8, 2009

– Extends effective date of the rule until May 18, 2010

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Other Upcoming NSR Rulemakings –PM-2.5 NSR Implementation

• Final rule addresses:– Major Source Thresholds– Significant Emissions Rates: PM-2.5 & Precursors– BACT for PM-2.5– Offsets: PM-2.5 & Precursors– Offset Ratios– Condensable PM (CPM) and CPM Transition Period– Inter-pollutant Trading– Timing for Implementation– Transition Policy from PM-10 to PM-2.5

• Proposal Published on November 1, 2005• Final Rule Published on May 16, 2008• EPA Granted Rule Reconsideration on April 24, 2009

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Other Upcoming NSR Actions –CO2 Interpretative Memo

• EPA Interpretation of “Regulated NSR pollutant” and “subject to regulation” under the Act– Includes only those pollutants “subject to a statutory or

regulatory provision that requires actual control of emissions of that pollutant”

– Excludes pollutants, including CO2, for which the Act only requires monitoring

• Memo Published on December 18, 2008• EPA Granted Reconsideration on February 17, 2009

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Contacts

For more information please visit: http://www.epa.gov/nsr/actions.html

Or Contact:Jessica Montañez

Phone: 919-541-3407montanez.jessica@epa.gov

Laura McKelveyPhone: 919-541-5497

mckelvey.laura@epa.gov

Raj RaoPhone: 919-541-5344

rao.raj@epa.gov