# Presentation: 012314

## New Source Review (NSR) Program Basics and Highlights of the Proposed Tribal Major Nonattainment and Minor NSR Rules

***Laura McKelvey, Jessica Montañez, Raj Rao, & Racqueline Shelton***
***  ***
***With help from Wendy Namisnik***
*** ******U.S. Environmental Protection Agency***
***Office of Air Quality Planning and Standards***
***RTP, NC***

## NSR Basics

## What is the purpose of this discussion about NSR?

- To gain a _***better understanding***_ of the New Source Review  (NSR) program and the Tribal  minor/major NSR proposed rules including:
- Purpose
- Components and requirements
- Key terms, definitions, and concepts
- Permitting considerations
- Delegation, public participation, and administrative and judicial review requirements
- Timeline for final rulemaking
- Commenting on the proposed rules

## What is the purpose of the NSR program?

**To ensure environmental protection while allowing economic growth!**** **

**Notes:**
We’ll talk more about attainment and nonattainment areas in a minute

## 
By controlling increases in air emissions that could affect attainment or maintenance of the National Ambient Air Quality Standards (NAAQS), or could have other adverse effects that can occur below the levels of the standards (e.g., visibility impairment)

**By controlling increases in air emissions that could affect attainment or maintenance of the National Ambient Air Quality Standards (NAAQS), or could have other adverse effects that can occur below the levels of the standards (e.g., visibility impairment)**

**How does NSR ensure environmental protection?**

## 
EPA sets NAAQS for:
Ozone (smog) 
Carbon Monoxide (CO)
Particulate Matter (dust/soot)

For each of the NAAQS pollutants, every area of the U.S. is designated into one of the following categories:
Attainment - air quality concentrations equal to or lower than NAAQS
Nonattainment - air quality concentrations higher than NAAQS
Unclassifiable – not enough data on air quality; generally treated as attainment

- EPA sets NAAQS for:
***Ozone (smog) ***
***Carbon Monoxide (CO)***
***Particulate****** Matter (dust/soot)***
- For _*each*_ of the NAAQS pollutants, every area of the U.S. is designated into one of the following categories:
_***Attainment***_** - **air quality concentrations equal to or lower than NAAQS
_***Nonattainmen***__**t**_** - **air quality concentrations higher than NAAQS
_***Unclassifiable***_** – **not enough data on air quality; generally treated as attainment

**What are the NAAQS?**

*** ******Nitrogen dioxide (NO******2******)***
*** ******Sulfur dioxide (SO******2******)***
*** ******Lead (Pb)***

## What are the components of the NSR program?

## What defines a major source in an attainment area? 

- A source with a potential to emit (PTE) any _one_ air pollutant greater than or equal to a threshold of:
_**100**_ tons per year (tpy), if part of the 28 listed source categories
_***250***_ tpy, for all other sources not part of the 28 listed source categories

**Notes:**
So if the source is major for one pollutant, it is a major source for PSD.  Then the PSD requirements apply for all pollutants emitted in significant amounts.
Notice that for ozone, we look at emissions of VOC and NOx.  This is true for the major source cut-off and the significant level.  Sources do not emit ozone.  It is formed in the air by complex chemical reactions involving VOCs and NOx.

## PSD permits

- Main requirements:
- Require installation of _***Best Available Control Technology***_ (BACT)
- Perform _***Air Quality Analysis***_ to preserve existing clean air
- Perform _***Additional Impacts Analysis***_
- Special _***protections***_ for _***national parks***_ and _***wilderness areas***_
- Opportunity for _***Public Involvement***_

## What defines a major source in a nonattainment area?  

- A source with potential to emit any _one_ air pollutant greater than or equal to a threshold of:
_**100**_ tons per year (tpy) or lower depending on the nonattainment severity
- No listed source categories exist for the nonattainment program as in PSD.

**Notes:**
Applicability (2nd bullet) sounds like PSD, but ...

## NA NSR permits

- Main requirements:
- Require installation of _***Lowest Achievable Emission Rate***_ (LAER)
- Emission _***Offsets***_
- Opportunity for _***Public Involvement***_

## 
A minor source is one whose emissions are less than the major source threshold of a pollutant:
<100/250 tpy in attainment areas or
<100 tpy in non-attainment areas

- A minor source is one whose emissions are less than the major source threshold** **of a pollutant:
- <_**100/250**_ tpy in attainment areas or
- <_**100**_ tpy in non-attainment areas

**Minor NSR - NSR program for minor sources in attainment AND nonattainment areas**

## NSR Rules in Indian Country

## Why do we need Federal NSR rules in Indian country?

_**Fill**_ existing regulatory NSR program gaps in Indian country; currently no programs are in place for:
- Minor NSR
- Nonattainment major NSR
- 	EPA currently implements the PSD program in Indian country
_**Provide**_ a cost-effective and timely permitting mechanism
_**Promote**_ economic development in Indian Country

## How will Tribes benefit from the proposed        Federal NSR rules?

_**Protect**_ Tribal sovereignty by clarifying jurisdiction in air permitting
_**Provide**_ equal opportunity for economic development
- Establish clarity of requirements for sources
- Create a timely mechanism for obtaining permits
- Ensure that resources are protected through controlled growth
_**Build**_ Tribal capacity
- Supply potential model for Tribal Implementation Plan (TIP) development
- Allows tribes to administer the program through delegation

## Specifics of the Proposed Tribal Minor NSR rule

## What would the proposed minor NSR rule apply to?

_**New minor sources**_
- Sources with PTE equal to or above the minor NSR thresholds, but less than the corresponding major NSR threshold
_**Modifications at existing minor/major sources**_
- When there is a physical or operational change at an existing source that is _**not**_ subject to major NSR
_**Synthetic minor sources**_, including Hazardous Air Pollutants (HAP) sources
- Major sources seeking to limit potential to emit below the major source threshold
***Proposed rule includes flowcharts to help*****!**

## Proposed Minor NSR thresholds 

_***Thresholds:***_ cutoffs below which minor NSR does not apply to a new minor source or modification
- Thresholds are lower in nonattainment areas. For example:
- Ozone attainment areas – 10 tpy NOx
- Ozone nonattainment areas – 5 tpy NOx
- An analysis of stationary sources across the country,  which evaluated the percentage of sources that would be exempt from these proposed rules if the thresholds applied nationally, showed that:
_**42%**_ of Volatile Organic Compounds (VOC) sources will be below thresholds
_**76%**_ of SO2 sources will be below thresholds

**Notes:**
NOx thresholds are just an example – rule includes thresholds for all pollutants.
Percent of sources that are below the minor NSR thresholds ranges from 42% for VOC to 76% for SO2.  Based on analysis of sources listed in the National Emission Inventory (NEI).

## What are the proposed Minor NSR rule requirements?

- Main proposed requirements are:
_**Case-by-case control technology review**_
_**Air Quality Impact Analysis (AQIA)**_ in rare cases
_**Monitoring, recordkeeping, and reporting**_ as needed to assure compliance
_**Public participation, administrative and judicial review**_
- Tribes may implement their own minor NSR program when EPA approves their Tribal Implementation Plan (TIP).
- Tribes may request delegation of EPA’s NA minor NSR program.

## Typical/common type of permit – individual emissions units are issued enforceable allowable emissions limits  

Source-wide permit – a Plantwide Applicability Limitation (PAL) is issued for the entire source, regardless of the number of emissions units

General permit -  a standard permit created by the permitting agency for common source categories, i.e. gas stations, dry cleaners, etc.

Synthetic minor source permits – major sources seeking to limit potential to emit to become synthetic minor sources

**Typical/common type of permit** – individual emissions units are issued enforceable allowable emissions limits
**Source-wide permit** – a Plantwide Applicability Limitation (PAL) is issued for the entire source, regardless of the number of emissions units
**General permit** -  a standard permit created by the permitting agency for common source categories, i.e. gas stations, dry cleaners, etc.
**Synthetic minor source permits** – major sources seeking to limit potential to emit to become synthetic minor sources

**Notes:**
EU limits and PAL limits are for each pollutant.  A source can have a mix of PALs and EU-specific limits for different pollutants.
General permits can be developed for similar sources or EUs that have similar characteristics.  A GP sets out identical requirements for all such sources.  Reduces the administrative burden on the source and the reviewing authority.
GPs will be developed by the EPA Regional Offices – none have been developed yet.  You should let your Regional Office know what types of sources need GPs in your area.
Synthetic minor permits can be for criteria pollutants or for HAPs.  They address a specific pollutant (or can be for multiple pollutants).

## How would a source obtain a minor source permit?

- Source submits a complete application
- The reviewing authority:
- Will determine within 45 days of receipt of application if it is complete enough to commence a technical review or if additional information is needed
- Will perform a control technology review on a case-by-case basis
- May require an AQIA if they believe the source will have a significant impact on the NAAQS
- Then, the reviewing authority:
- Will develop a draft permit and provide public notice seeking comments on the draft permit for a 30-day period
- Will issue a final permit if application meets all applicable requirements.  Otherwise, will send letter denying the permit and reasons for the denial.

## Specifics of the Proposed Tribal Nonattainment Major NSR rule

## What would the proposed nonattainment                            major NSR rule apply to?

- Would apply to:
_***New major sources***_ with PTE equal to or above the major NSR thresholds
_***Major modifications***_ - any physical or operational change at a source that would result in a significant net emission increase of any regulated NSR pollutant
- Major sources would be subject to the existing nonattainment major NSR rules for areas lacking an approved Part D plan – 40 CFR part 51, Appendix S
***Proposed rule includes flowcharts to help!***

## What would the proposed nonattainment (NA)                 major NSR rule require?

- Main proposed requirements include:
_**LAER**_ – the lowest emissions rate and/or practically achievable for that type of source
_**Offsets at prescribed ratios**_ – proposed emissions increases are balanced by reductions from existing sources to stabilize total emissions
_**Monitoring, recordkeeping, and reporting**_ as needed
_**Public participation, administrative and judicial review**_
- Tribes may implement their own major NSR program when EPA approves their TIP.
- Tribes may request delegation of EPA’s NA major NSR program.

## Economic Development Zone (EDZ) option

Major stationary sources and major modifications subject to this program may be exempted from the offset requirement if they are located in a zone targeted for economic development by the EPA Administrator, in consultation with the Department of Housing and Urban Development (HUD).  

  Criteria for this waiver:
Tribe demonstrates that the new permitted emissions will not interfere with attainment of the applicable NAAQS by the applicable attainment date.

**Economic Development Zone (EDZ) option**
- Major stationary sources and major modifications subject to this program may be exempted from the offset requirement if they are located in a zone targeted for economic development by the EPA Administrator, in consultation with the Department of Housing and Urban Development (HUD).
**  ****Criteria for this waiver:**
- Tribe demonstrates that the new permitted emissions will not interfere with attainment of the applicable NAAQS by the applicable attainment date.

## Appendix S, Paragraph VI option

Source exempt from offset requirement until attainment date for NAAQS passes

  Criteria for this waiver:
Source will comply with implementation plan limits and will not interfere with the attainment date
EPA determines that these criteria are satisfied and publishes this finding in the Federal Register

**Appendix S, Paragraph VI option**
- Source exempt from offset requirement until attainment date for NAAQS passes
**  ****Criteria for this waiver:**
- Source will comply with implementation plan limits and will not interfere with the attainment date
- EPA determines that these criteria are satisfied and publishes this finding in the Federal Register

## NSR Permitting Example

## Example: Synthetic Minor Permit for a Wood (Plywood) Furniture Factory

**Source Information:**
- Potential to emit for VOC is 400 tpy at 24 hrs/day, 7 days/wk (8,760 hrs/yr).
- Actual operations are typically             8 hrs/day, 5 days/wk (2,080 hrs/yr).
**Area information:**
- Area in attainment for VOC and Ozone.
**Permit Information:**
- Owner requests a synthetic minor permit for VOC.

- http://www.essexcoatings.com/

## At the request of the reviewing authority, source submits a screening modeling analysis to see if NAAQS are threatened.  The analysis shows that the NAAQS are not threatened.  

Reviewing authority develops draft permit.
Permit limits operating hours to 5,000 hrs/yr (reduction from 8,760 hrs/yr potential):
Reduces PTE to 230 tpy
Allows for increased utilization at the facility because the facility is actually operating at 2,080 hrs/yr.

Permit is subject to 30-day public comment period.

After the public review is finished, the reviewing authority issues the final permit.  The highlights of this permit are:
Facility must track and record actual hours of operation to show that the 5,000 hrs/yr limit is being met.

- At the request of the reviewing authority, source submits a screening modeling analysis to see if NAAQS are threatened.  The analysis shows that the NAAQS are not threatened.
- Reviewing authority develops draft permit.
- Permit limits operating hours to 5,000 hrs/yr (reduction from 8,760 hrs/yr potential):
- Reduces PTE to 230 tpy
- Allows for increased utilization at the facility because the facility is actually operating at 2,080 hrs/yr.
- Permit is subject to 30-day public comment period.
- After the public review is finished, the reviewing authority issues the final permit.  The highlights of this permit are:
- Facility must track and record actual hours of operation to show that the 5,000 hrs/yr limit is being met.

## Delegation, Public Participation, andAdministrative and Judicial Review for both of the proposed rules

## We encourage tribes to consider delegation of authority to assist EPA with administration of both rules

To apply for delegation, the tribe:
Must be recognized by the Secretary of Interior
Laws must provide adequate authority
Must demonstrate technical capacity and resources

EPA retains all enforcement authority

If the Tribe develops a TIP, it may use the final Tribal Minor and Major NA NSR rules as models

- We encourage tribes to consider delegation of authority to assist EPA with administration of both rules
- To apply for delegation, the tribe:
- Must be recognized by the Secretary of Interior
- Laws must provide adequate authority
- Must demonstrate technical capacity and resources
- EPA retains all enforcement authority
- If the Tribe develops a TIP, it may use the final Tribal Minor and Major NA NSR rules as models

## Draft permit, application, and justification for permit issuance/denial available for inspection at:
EPA Regional Office
At least one location in the area, for example at the Tribal environmental office

Public notice with 30-day public comment period 

Public notice may be posted at locations such as trading posts, libraries, post offices, etc., as appropriate

Opportunity for a public hearing, if sufficient interest

- Draft permit, application, and justification for permit issuance/denial available for inspection at:
- EPA Regional Office
- At least one location in the area, for example at the Tribal environmental office
- Public notice with 30-day public comment period
- Public notice may be posted at locations such as trading posts, libraries, post offices, etc., as appropriate
- Opportunity for a public hearing, if sufficient interest

**Notes:**
Public notice gives information on the proposed source/modification, contact persons, and location of the draft permit/application.

## Any person may appeal the final permit if:
The person commented on the draft permit; or
The grounds for appeal occurred after the public comment period ended

First, the person must appeal to EPA’s Environmental Appeals Board (EAB)

If denied by EAB, the person may appeal to Federal Court

- Any person may appeal the final permit if:
- The person commented on the draft permit; or
- The grounds for appeal occurred after the public comment period ended
- First, the person must appeal to EPA’s Environmental Appeals Board (EAB)
- If denied by EAB, the person may appeal to Federal Court

**Notes:**
Review actually is available for the final permit or the decision to deny a permit.
The source may appeal too.
The EAB review is administrative review and Court review is judicial review.

## What you can and should do next

## What is the NSR Tribal rules timeline?

- Proposal published in the Federal Register and public comment period commenced on _**August 21, 2006**_.
- Public comment period, as originally proposed, ended on _**November 20, 2006**_ (90 day comment period).
- Public _**comment period has been extended**_ for 60 more days.  The official comment period now ends on _**January 19, 2007**_.
**This is where you can make a difference.**
**WE ENCOURAGE YOU TO COMMENT!**
- Final rule will be published around:
- Fall 2007

## EPA wants your comments on specific minor and major source issues, as well as the overall proposed rules

- Some of the specific issues open for comment are:
- Should all existing minor sources be required to:
- Be exempt from the rule (option currently proposed)
- Register only
- Be subject to the rule
- Are the public participation requirements appropriate?
- Should sources subject to the major NSR program in Indian country be exempt from the offset requirement by the provisions of Appendix S, the EDZ option or another option?

## How can you submit comments on the proposed NSR rules?

**Submit your comments, identified by              **
**Docket ID No. EPA-HQ-OAR-2003-0076, **
**using one of the following methods:**
- Federal eRulemaking Portal: _**http://www.regulations.gov**_  Follow the on-line instructions for submitting comments
- E-mail: _**a-and-r-docket@epamail.epa.gov**_
- Fax:  202-566-1741
- Mail:  Attention Docket ID No. EPA-HQ-OAR-2003-0076,  U.S. Environmental Protection Agency, EPA West (Air Docket), 1200 Pennsylvania Avenue, Northwest, Mailcode: 6102T, Washington, DC 20460

## Conclusion

**The purpose of the NSR program is to ensure environmental protection while allowing economic growth.**
*	*
**The two new proposed rules for Indian country attempt to fill existing regulatory gaps. **
**	****EPA values your feedback regarding these rules.**
**	**_**Please take the time to submit your comments!**_
**If you have any questions contact Jessica Montanez at 919-541-3407 or **_[montanez.jessica@epa.gov](mailto:montanez.jessica@epa.gov)_**.**