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EPA Finalizes NSR Revisions

The New Source Review (NSR) program, as established by the Clean Air Act (CAA), requires the installation of state-of-the-art pollution control technology when physical or operational modifications resulting in significant pollution increases are made to emissions units.

On December 31, 2002, the Environmental Protection Agency (EPA) published the final rule on five major revisions to the NSR program at 67 FR 80185. The EPA intends these revisions to allow industry greater flexibility in modifying emissions units. The first two major changes alter the method for determining whether a physical or operational change to an emissions unit will result in a significant emissions increase and therefore trigger NSR. The final three provide clearly defined and easily attainable exemptions from major NSR permitting review.

(1) Pre-Change Baseline Actual Emissions

Previously, emissions rates from the 24 months prior to unit modification were used as the basis for comparison with post-change emissions to determine the significance of the modification. Now, facility owners/operators may choose any consecutive 24-month period in the ten years preceding the change to calculate average annual emission rates for pollutants. However, if present-day limits on the emissions unit are more stringent than those of the chosen 24-month period, the current restrictions must replace the outdated ones in the calculations.

(2) Actual-to-Projected-Actual Applicability Test

Previously, to determine post-change emissions, an "actual-to-potential" test was used. For a physically or operationally altered unit, before normal operations had resumed, full emissions potential was assumed, and thus the unit's actual emissions were equated with its potential to emit (PTE). Now, the owner/operator may project an annual emissions rate to reflect the maximum rate that will occur during any one of five years following the change.

The projected actual emissions rate is then compared to the baseline actual emissions rate to determine whether the project will result in a significant emissions increase and thereby instigate major NSR.

(3) Plantwide Applicability Limitations (PALs)

Facilities now have the option of taking on a PAL, which is a source-specific cap on facility-wide emissions of a certain pollutant. Its purpose is to provide flexibility to make changes to emissions units by removing the requirement to obtain a major NSR permit, which can take months or even years. As long as plant-wide emissions of the PAL pollutant remain below the PAL, the owner/operator may make any changes without a NSR permit and without going through emissions increase calculations. (Facilities may choose instead to apply for actuals Pals, which are rolling annual emissions rate caps that encompass more than one pollutant.) PAL levels are determined by summing the baseline actual emissions of the PAL pollutant from all emissions units at the source, and then adding an amount equal to the significant level for the PAL pollutant under §52.21(b)(23) or under the CAA, whichever is lower.

(4) Clean Unit Applicability Test

Any emissions unit which has been through major NSR permitting review and complies with Best Available Control Technology (BACT) or Lowest Achievable Emission Rate (LAER) is automatically qualified for Clean Unit status and use of the Clean Unit applicability test, and these qualifications last for ten years. (Those units that have not gone through major NSR may still qualify as Clean Units by completing a permitting process approved by the State Implementation Act (SIP).) The Clean Unit applicability test determines whether or not a significant emissions increase will occur simply by evaluating whether or not the change will have an affect on the Clean Unit status. If there is no need to revise emissions limitations or work practice requirements in the permit for the unit adopted in conjunction with BACT, LAER, or Clean Unit determinations, and no change in the physical/operational characteristics that formed the basis for the BACT, LAER, or Clean Unit determination for the unit, any physical or operational change may commence without major NSR.

(5) Pollution Control Project (PCP) Exclusion

A PCP is "an activity, set of work practices, or project at an existing emissions unit that reduces emissions of air pollution from the unit." An owner/operator may use the PCP Exclusion to avoid major NSR permitting requirements if a modification fits the definition of a PCP and will result in a "net overall environmental benefit," even when accompanying emissions increases exceed the "significant level." The source and reviewing authority will assess the environmental benefit by comparing the emissions increase with the decrease in the primary pollutant. Examples of environmentally beneficial pollution control projects include the following:

For More Information: EPA Press Releases

EPA Myths and Facts About New Source Review Reform

New Source Review: Myth vs. Fact

Reaction:

National Petrochemical and Refiners Association

Environmental Media Services

Natural Resources Defense Council

Clean Air Task Force