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OAR Box 1787 

Prepped by Ollie Stewart 

Document Number: 

29) ll-B-14 

Docket Number: 

A-90-37 

Printed 11/4/200810:22:19 AM Sheet 29 of 147 
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J'ZOSU. 

Kmf* 

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY 

Office of Air Quality Planning and Standards 

Research Triangle Park, North Carolina 27711 

16 FEB 1988 Jl^25fe-vj |b ; 

P"'***'Tv ACTS |r-"^*r1''*':i'ir 

MEMORANDUM 

SUBJECT: Implementation of the New Source Review (NSR) Program Initiatives 

FROM: Gerald A. Emison, Direct^^TC^^ 5 ^ 

Office of Air Quality Hanning and Standards (MD-10) 

TO: J. Craig Potter 

Assistant Administrator 

for Air and Radiation (ANR-443) 

On December 1, 1987, you issued a memorandum which established 

certain program initiatives designed to improve the effectiveness of the 

NSR programs. Many of the actions required to implement these initiatives, 

as well as the overall objective of improving the NSR program, are the 

responsibility of the Office of Air Quality Planning and Standards (OAQPS). 

I would like to inform you of the progress we have made in carrying out 

these1 responsibilities and the actions we will be taking in the near 

future. 

Actions initiated by OAQPS include: 

° A memorandum to the Regional Office Division Directors providing 

further guidance and informing.thern of activities taking place in 

response to these initiatives. A copy of this memorandum is attached, 

° An up-to-date notebook of NSR policy and guidance materials has 

been compiled. The notebook contains an annotated set o^ NSR 

regulations. The annotated regulations will enable the user to 

determine where and what policy guidance or reference materials 

exist for each section of a specific NSR regulation. A copy 

of the notebook is being sent to you under separate cover. Copies 

have also been sent to each of the Regional Offices. 

° An NSR electronic bulletin board is scheduled to come on line 

in February. The bulletin board will provide the Regions and 

State and loca.1 agencies with quick and ready access to recently 

issued NSR policy and guidance materials, along with a summary of 

all the material contained in the guidance notebook. 

° A meeting of the New Source Review Task Force (NSRTF) has been 

scheduled for March 1, 1983, in Denver, Colorado to discuss 

implementation of NSR improvements. 
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° The semiannual NSR Workshop has been scheduled for March 2-4, 

1988, in Denver, Colorado in conjunction with the MSRTF meeting. 

At the Workshop, OAQPS will specifically focus on the role and 

concerns of tlie Regions regarding the implementation of.the various 

NSR program initiatives. We will discuss in detail the Regional 

NSR program self-evaluation process and concerns regarding resources 

needed to meet program goals. 

0 A draft memorandum from the Office of Enforcement and Compliance 

Monitoring and the Stationary Source Compliance Division, on 

procedures for dealing with deficient permit actions, was recently 

sent to the Regional Offices for review and comment. A final 

memorandum is scheduled to be issued in early 1988. 

In addition, OAQPS plans to begin work on the following items in FY 1983: 

0 Specific guidance on the "top-down" process for determining best 

available control technology. The guidance will outline the process 

and include specific case examples. 

° A permit review checklist to be used by the Regions and State and 

local permitting agencies to validate that all necessary review 

requirements and permit conditions have been included in the 

permit review. 

;° Agency policy for the processing of modifications to major 

source NSR permits. The policy will address the various types 

of modifications that may be considered and the corresponding 

technical review requirements and administrative procedures. 

0 In depth NSR training materials and biannual Regional workshops. 

The training and workshops will cover both NSR review and overview 

activities. 

To do this will require considerable resources. I have reprogrammed 

resources to assist in these efforts but that will provide only a portion 

of the resources we need to do the entire job. Work on many of these 

items, although initiated in 1988, will need to continue through 1989. 

In the interim, we will issue guidance, as needed, to support Regional 

Office efforts to implement, overview, and improve the NSR program. 

We have also established the informal group of Headquarters and 

Regional managers, as indicated in your December 1 memo, who will monitor 

and report on the progress and effectiveness of our efforts. A copy of 

the group members is attached. 

1 will continue to keep you informed of our progress in implementing 

this program. 

2 Attachments 
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Attachment 1 

Informal New Source Review (NSR) Oversight Task Group 

The following individuals will monitor and report on the effectiveness 

of the planned efforts to improve NSR permitting: 

OAQPS - John Calcagni, Chairman 

- Ed Li 11 is 

- Gary McCutchen 

OAR - Ray Cunningham 

OGC - Earl Salo 

Region III - Tom Mas 1 any 

Region V - David Kee (lead Region for NSR) 

Region IX - David Howekamp 

The following State and local representatives have agreed to provide 

their perspective to the task group: 

STAPPA - 3ob Col lorn, GA 

- Charles Collins, WY 

ALAPCO - John Paul, Dayton 
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*^osr 4 > Attachment 2 

*• UNITED STATES ENVIRONMENTAL PROTECTION AGENCY 

I t^ 8^ « Office of Air Quality Planning and Standards 

\«*swl£^/ Research Triangle Park, Noith Carolina 27711 

1 6 FEB 1988 

MEMORANDUM 

SUBJECT: Implementation of the New Source Review (NSR) 

Program Initiatives 

FROM: Gerald Emison, Direc _ _ 

Office of Air Quality Planning and Standards (MD-10) 

TO: Director, Air Management Division 

Regions I, III, and IX 

Director, Air and Waste Management Division 

Region II 

Director, Air, Pesticides, and Toxics Division 

Regions IV and VI 

Director, Air and Radiation Division 

Region V 

Director, Air and Toxics Division 

Regions VII, VIII, and X 

On December 1, 1987, Craig Potter, Assistant Administrator for Air and 

Radiation, issued a memorandum which established certain program initiatives 

designed to improve the effectiveness of the NSR program. Many of the actions 

required to implement these initiatives, as well as the overall objective of 

improving the NSR program, are the responsibility of the Office of Air Quality 

Planning and Standards (OAQPS). The purpose of this memorandum is to inform 

you of the progress we have made in carrying out these responsibilities and 

the actions both the Regional and Headquarters Offices will need to take during 

the first few months of 1988. 

Actions initiated by Headquarters include: 

0 An up-to-date notebook of NSR guidance materials has been compiled. 

The notebook contains an annotated set of NSR regulations. The 

annotated regulations will enable the user to determine where and 

what guidance or reference materials exist for each section of a 

specific NSR regulation. A copy of the notebook will be sent to 

you shortly under separate-cover. 

0 An NSR electronic bulletin board is scheduled to come on line in 

February 1988. The bulletin board will provide the Regions and State 

and local agencies with quick and ready access to recently issued NSR 

guidance materials, along with a summary of all the materials contained 

in the guidance notebook. 
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0 A draft memorandum from the Office of Enforcement and Compliance 

Monitoring and the Stationary Source Compliance Division, on procedures 

for dealing with deficient permit actions, was recently sent to the 

Regional Offices for review and comment. A final memorandum is 

scheduled to be issued in early 1988. 

In addition, OAQPS plans to begin work on the following: 

0 Specific guidance on the "top-down" process for determining best 

available control technology. The guidance will outline the process 

and include specific case examples. 

0 A permit review checklist to be used by the Regions and State and 

local permitting agencies to validate that all necessary review 

requirements and permit conditions have been included in the permit 

review. 

° Final guidance on Agency policy for the processing of modifications 

to major source NSR permits. The policy will address the various 

types of modifications that may be considered and the corresponding 

technical review requirements and administrative procedures. 

° In-depth NSR training materials and biannual Regional workshops will 

cover both NSR review and overview activities. 

Work on many of these items will be initiated in 1988 and will continue 

through 1989. Regional participation in the development of these items is 

encouraged. Contact David Solomon, FTS 629-5375, if you are interested. In 

the interim, we plan to issue guidance, as needed, to support Regional Office 

efforts to implement, overview, and improve the NSR program. 

The semiannual NSR Workshop has been scheduled for March 2-4, 1983, at 

the Denver Inn in Denver, Colorado. The Workshop is an excellent opportunity 

for Headquarters to specifically focus on the role and concerns of the Regions 

regarding the implementation of the various NSR program initiatives. 

Consequently, I am requesting that the Regions be prepared to discuss the 

following at the Workshop: 

0 Each Region's self-evaluation of its current NSR activities and a 

summary of any actions to date regarding the establishment of a 

program to ensure a timely and comprehensive review of all major 

source permits. 

0 Existing staffing levels and any concerns regarding resources.needed 

to meet program goals. I understand this is of special concern for 

some Regions. 

° A discussion of current NSR overview activities, including an 

assessment of the current overview program effort (e.g., number of 

permits received, whether all major source permits are being received, 

number of permits reviewed, level of detail of reviews, whether 
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Regional comments are incorporated into permit actions or ignored, 

etc.); any current plans for program improvements; and any experience 

or tools (e.g., computerized permit tracking) that may be of benefit 

to the other Regions. 

° Regional recommendations for improvements to the NSR process. 

With this information, Headquarters can better assist the Regions in the 

depth and direction of overview activities for the purpose of ensuring 

consistency in the level of the Regional reviews. Consistency in program 

overview activities will also act to support and strengthen the overall 

impact of each of the individual program initiatives. Please ensure that 

at least one Regional representative attends the meeting. 

I v/ould like to take this opportunity to clarify any misunderstandings 

that may exist regarding our intention as to the types of major permits that 

are to be reviewed by the Environmental Protection Agency (EPA) during tha 

public comment period. We expect that, in attainment areas, EPA would review 

all major prevention of significant deterioration (PSD) permits being issued 

by a State or local agency pursuant to delegation agreements made under 40 

CFR 52.21(u), and all major PSD permits being issued pursuant to a State 

implementation plan program approved by EPA under 40 CFR 51.166 (formerly 

51.24). In nonattainment areas, EPA would review all major permits being 

issued pursuant to a State NSR program approved under Part D of the Clean Air 

Act and 40 CFR 51.165 (formerly 51.18(j)). In other words, EPA would review 

permits for major sources that are undergoing a full PSD or nonattainment 

review pursuant to a SIP approved or delegated NSR program. The Regional 

Office review of these permits should be directed at ensuring that the State 

and local agencies have done a complete, high quality review. In general, 

this type of Regional Office review would be on a level similar to that of 

the NSR portion of the National Air Audit System and should not duplicate the 

detailed State or local agency.review. These procedures are not expected to 

be a continuing requirement, but will remain in effect until permit quality 

can be assured. 

There have also been some questions and concerns over the requirament 

that certain minor source permits be reviewed. It is not our intent that 

each minor source be reviewed, nor that the scope and depth of the minor 

source review program match that of the major source review program. Rather, 

the program is envisioned as a Regional effort tailored to address known 

specific problem areas in regard to minor source permitting (e.g., synthetic 

minor sources). This aspect of the program will be Region specific and focus 

on Region identified problems. The scope, depth, and even the need for such 

a program should be evaluated on a State-by-State basis by the Region. 

Consequently, duringthe self-evaluation process, the Regions should also 

direct their efforts toward: 

0 Identifying, through past audit results and other means, existing 

areas of concern regarding the permitting of certain minor sources 

(e.g., synthetic minor sources, 249 or 99 tons-per-year sources) 

within the Region. 
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0 Developing potential strategies to address the identified areas of 

concern. [The strategies may be Regional or State-by-Statein nature 

and should take into consideration Regional resource constraints.] 

1 believe that the NSR program has the potential for significant 

environmental benefits and ask for your support in implementing a strong NSR 

program. If you have any questions regarding the purpose, status or implementation of any of the program initiatives, please have a member of your staff 

contact Gary McCutchen, Chief, New Source Review Section, at FTS 529-5592. 

cc: Chief, State Air Programs 3ranch 

Region I 

Chief, Technical Support Branch 

Region I 

Chief, Air Programs 3ranch 

Regions II, III, IV, VI, VIII, IX, and X 

Chief, Air and Radiation Branch 

Region V 

Chief, Air Branch 

Region VII 

NSR Program Contacts