New Source Review Rules 

Jessica Montanez

U.S. Environmental Protection Age

Office of Air Quality Planning and Stan

Air Quality Policy Division Division
Agenda

1. Brief Introduction Introduction to New Source Revi

2. Tribal NSR Rules

• R l u e Items

• Implementation Items

3. Other NSR Rulemakings/Actions
New Source Review (NSR

• Requires Requires industrial industrial facilities facilities to install install modern

pollution control equipment when:

– they are built or– when making a change that increases emissions

significantly
NSR (Continued)

• Purpose Purpose is to ensure environmental environmental protect

protect

while allowing economic growth

– Accomplished through permits

• Enforceable legal documents

• Requirements vary depending on NSR program type

New Source Review (NSR) 

Program

Major NSR

in attainment

Major NSR

in nonattainment Minor NSR

in attainment

areas (PSD)

in nonattainment

areas (NA NSR) in all area
General Permitting Permitting Process Process (New So

So

Are 

Start

Determine source 

emissions 

(PTE per pollutant)

emissions ≥

applicable threshold? 

(based on

area classification, 

per pollutant)

No

per pollutant)

Reviewing Authority:

Yes

Source owner

submits 

permit 

application

Reviewing Authority:

• Reviews application

• Performs control

technology review

• Reviews or performs 

Develop draft

permit

30 day 

comment 

period

other requirements

Provisions for Issue final

Issue final

End permit

Provisions for

appeals

available
Tribal NSR Rules

• Will establish establish NA NSR and Minor NSR p

p

in Indian country

• Schedule

– Proposal Published on August 21, 2006– Comment P id er o Cl d ose M h arc 20, 2007– Final Rule Scheduled for February 2010
Tribal NSR Rules – Main Items U

Consideration for Final Rule

I. Minor NSR Program I. Minor NSR Prog

a. Applicability ( )

1. Minor NSR Thresholds

2. List of Exempted Units

and Activities

(Cont.)

c. Permit Appeals

1. Type of Revie

and Activities Administrativ

3. Accounting of Fugitive

Emissions

4. Treatment of Existing

Minor Sources

Administrativ

d. Implementation

1. Delay Effectiv

Depending on 

Minor Sources Source

5. Applicability Test for

Modifications

b. Permit Application

1 Ai Q lit I t

Source

II. Major NSR Prog

a. Permit Applicati

1 Offset Waive

1. Air Quality Impact

Analysis Requirements

2. General Permits Issues

3. Case‐by‐Case MACT

D t i ti

1. Offset Waive2. Compliance C

Area

Determinations

4. Synthetic Minor Sources
Tribal NSR Rules ‐ Implementat

Items

I. Regional Workgroup II. Tribal Workgrou

a. Permit Review Process

Timeline

b. Public Notice Templates

a. Developed draft 

Consultation an

Communication 

G t 

c. General Permits:

a. Industrial Boilersb. Oil & Gas Industry

Governments – 

Establishing a PrRelationship

b Developing tem

c. Gas Stations ‐ Work not

yet initiated

b. Developing tem

OAQPS help) to delegation of thprograms

c. Has raised ques

40CFR 52.21(u) Delegation of Au

PSD program
Other Upcoming NSR Rulemakin

Reasonable Possib li ity

• Identifies Identifies when a major source undergo

undergo

physical or operational change not trig

major NSR permitting permitting requirements requirements mu

records

• P l roposal P bli h d ublished on M h arc 8, 2007• Final Rule Published on December 21, 2• EPA Granted Rule Reconsideration on A

2009
Other Upcoming NSR Rulemakin

Fugitive Emissions

• Fugitive Emissions:

– Emissions that could not reasonably pass through 

chimney, vent or other functionally equivalent op

• Fi l na rule requires th t a f iti ug ve emi i ss ons be 

in determining whether a physical or operatiochange results in a major modification only fo

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
Other Upcoming NSR Rulemakin

Aggregation

• In 2006, EPA proposed proposed three changes changes to the NS

program – Aggregation, Debottlenecking and P

Netting:

– Changes rel d ate to wh hic emissions increases and decre

consider in determining major NSR applicability for sou

undergoing a physical or operational change

• Proposal Published on September 14, 2006

• Final Rule (Aggregation Only) Published on Januar

– Sources Sources and reviewing reviewing authorities authorities should combine combine emis

emis

projects are substantially related either technically or ec

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

– Extends effective date of the rule until May 18, 2010
Other Upcoming NSR Rulemakin

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 Condensable PM (CPM) and CPM Transition Transition Period– Inter‐pollutant Trading

– Timing for Implementation

– Transition 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
Other Upcoming NSR Actions 

CO2 Interpretative Memo

• EPA Interpretation Interpretation of “Regulated Regulated NSR polluta

polluta

“subject to regulation” under the Act

– Includes only those pollutants “subject to a statut

regulatory provision that requires actual control oemissions of that pollutant”

– Excludes Excludes pollutants pollutants, including including CO for which the 

2, for which the 

requires monitoring

• Me o m Pub s ed li h on Dece be m r 18, 2008• EPA Granted Reconsideration on February 17
Contacts

For more information please visit:

http://www.epa.gov/nsr/actions.html

Or Contact:

Jessica Montañez

Phone: 919‐541‐3407

montanez jessica@epa gov montanez.jessica@epa.gov

Laura McKelvey

Phone: 919‐541‐5497

mckelvey.laura@epa.gov

Raj Rao

Phone: 919‐541‐5344

rao.raj@epa.gov
Rulemaking Schedule

Appendix
PSD Program Requirement

• Sources with air emissions equal to or higher t

or 250 tons per year (tpy)

• Regulated pollutants: NAAQS and other polluta

• Main requirements:

– Install Best Available Control Technology (BACT)– Perform Perform air quality quality analysis analysis to assess impacts impacts on ai– Perform class I area analysis to assess impacts on n

parks and wilderness areas

– Perform additional additional impacts impacts analysis analysis– Allow for opportunities for public involvement

• EPA currently implements the PSD program in 

EPA currently implements the PSD program in 

Country
NA NSR Program Program Requireme

Requireme

• Sources with air emissions of 100 tpy or lower

depending on nonattainment severity

• Regulated pollutants: NAAQS only

• Main requirements:

– Install Lowest Achievable Emission Rate (LAER) tec– Obtain emission offsets– Perform alternative sites analysis

– Show statewide facility compliance w/air regulatio

– Allow for opport iti un es for public il t nvo vement

• EPA’s final FIP would require major sources locating in Indian 

be subject to the existing nonattainment major NSR rules fo

l ki d NA l (40 CFR 51 A di S)lacking an approved NA plan (40 CFR part 51, Appendix S)
Minor NSR Requirements

• Sources with air emissions equal to or higher 

minor thresholds but below major NSR thres

• Regulated pollutants: NAAQS and other pollu

• Main Requirements:

– Perform Case by Case Control Technology Review– Perform Air quality analysis to assess impacts on 

when needed

– Allow for opportunities for public involvement

• Final rule will represent how EPA would impleme

program in Indian Country in the absence of an E

approved plan
Significant Emission Rates (S

SER – a rate of emissions that would equal or exc

Pollutant SER Pollutant 

SER a rate of emissions that would equal or exc

any of the following rates:

Pollutant SER

(tpy)

Pollutant 

Carbon Monoxide 100 Hydrogen sulfide(H2S) Nitrogen Nitrogen Oxides 40 Total reduced reduced sulfur (including (including H2S) Sulfur Dioxide 40 Reduced sulfur compounds (includes H2SParticulate Matter (PM10) 15 Municipal waste combustor organics Ozone 40 of VOCs or NOx Municipal Municipal waster combustor combustor metals Lead 0.6 Municipal waste combustor acid gases Fluorides 3 Municipal solid waste landfills emissions S lf i id i t 7Sulfuric acid mist 7