Part of NSR Program Applicable to Major Sources in Areas Not

Attaining the NAAQS

Nonattainment NSR Program (NA NSR)

2

• Re-cap of Permitting Process

• Brief Description of NA NSR Program

• Main Requirements Summary

Presentation Outline

3Permitting Process Simplified

Start

Source not

subject toNSR

Source owner submits permit

application

Reviewing authority reviews:• Application

• Proposed/Required Control Technologies

• Compliance with other applicable requirements

Draft permit

developed

Final permitIssued

End

EPA issued permits may be appealed through EPA’s Environmental Appeals

Board (EAB). After EAB process, permits may be appealed in Federal Court.

APPL

ICAB

ILIT

YAP

PLIC

ATIO

NAP

PEAL

S

Are the source proposed emissions ≥

applicable thresholds or emission rates? (per

pollutant, may include fugitives)

Is the

permit for a new source or a

modification to an existing

source?

Is source in an area

that is attaining or nonattaining the

NAAQS?No

Yes

30 day comment

period

Public hearing

Usually appealed within

30 days of finalpermit decision

After appeal processends, permit is

finally approved orrevoked.

Is thesource

exempted?

4

• New sources locating in nonattainment areas with air emissions of 100 tpy or more– Lower thresholds apply depending on nonattainment

severity

• Modified sources located in nonattainment areas with a net emissions increase higher than the significant emissions rate

• Regulated pollutants: NAAQS only

Applicability: New and Modified Sources

5

• Emissions calculations are based on Potential to Emit, includes fugitive emissions if the source is part of the 28 source category list

• It can also consider limitations on source operation and emission controls

• Thresholds: 100 tpy or lower depending on nonattainment severity (See Presentation Appendix)

Applicability: New Sources

Start

Determine source’s

Potential to Emit (PTE)

(per pollutant, may include

fugitives)

Is PTE ≥ applicablethreshold?

(per pollutant)

Source not

subject toNA NSR

Yes

No

Source subject toNA NSR

6

• Emissions calculations are based on Actual Emissions – “day-to-day” emissions at the source– Actual emissions = projected emissions after the change – baseline

emissions before the change (actual-to-projected actual test)– Baseline emissions: average of any 24 consecutive months of

emissions within 10 yrs prior to project (5 yrs for electric utilities)– Projected emissions: max. annual emissions (tpy) that will occur

during any one of 5 yrs after project– If unit was unpermitted or is added, emission increase based on PTE

Applicability: Modifications

7

Applicability: Modifications (Continued)

YesStart

Are Proposed

modification emissions ≥

SER?(per pollutant)

Modification not

subject toMajor NSR

Determine Source’s NetEmissions Increase

(NEI),(per pollutant)

Is the NEI ≥ SER?

Modification is a major

modification and

subject toMajor NSR

Yes

NoNo

Major modification = one that results in (1) a significant emissions increase from the project and (2) a significant net emissions increase (NEI)• Significant Emission Rate (SER) – emissions rate limit in tpy, by pollutant• NEI = Sum of contemporaneous emissions increases and decreases to the

proposed modification emissions increase/decrease• Under Tribal NSR Rule, contemporaneous period starts 5 years before the source

commences construction and ends when the source commences operation

8

• As with the Tribal Minor NSR program, NSR applicability is determined for all new and modified units at the source– New units – applicability based on PTE– Modified units – applicability based on actual emissions

• Includes all NAAQS that the source emits • Source emissions are calculated using:

– On-site measurement (e.g. stack testing)– Vendor design capacity or rated capacity information – Material (i.e. mass balance) balance calculations – Emission factors

• The annual maximum emissions from all production processes/equipment are added for each regulated NSR pollutant

Applicability: Steps

Modification Example

10

• SO2 emissions from a proposed project are 80 tpy

• The SER for SO2 is 40 tpy

• First step, determine if source emissions are higher than the SER

• In this case, 80 tpy > 40 tpy SER for SO2

• Since project emissions > significant emissions rate (SER), source has to do second step, determine if its net emissions increase is higher than the SER

Applicability: 1. Determine the emissions increase from the proposed project

11

• To determine the source’s net emission increase, we need to define the contemporaneous period

– Under Tribal NSR rule, period starts 5 years before the source commences construction and ends when the source commences operation

• For example, if the SO2 source planned to commence construction in June 2012 and begin operation in September 2014, the contemporaneous period for Appendix S is defined as:

Applicability: 2. Determine the beginning and ending dates of the contemporaneous period

June 2012

Commence Construction

June 2011

June 2010

June 2009

June 2008

June 2007

June 2013

June 2014

Sept. 2014

Commence Operation

80 tpy

12

• Determine emission increases and decreases associated with a physical change or change in the method of operation at the source which did not require a permit

• For example, our SO2 source increased its SO2 emissions in 2009 and decreased its emissions in 2014

Applicability: 3. Determine which units experienced an increase or decrease in emissions during contemp. period

June 2012

Commence Construction

June 2011

June 2010

June 2009

June 2008

June 2007

Sept. 2014

Commence Operation

June 2013

June 2014

80 tpy

• An increase or decrease is not creditable if it has been previously relied on for issuing a permit and the permit is in effect during the review

• A decrease is creditable only to the extent that it:– Is “federally-enforceable” from the moment that the actual

construction begins – Occurs before the proposed emissions increase

• A source cannot take credit for:– A decrease that it has had to make, or will make, in order to bring an

emission unit into compliance– An emissions reduction from a unit which was permitted but never

built or operated

Applicability: 4. Determine which emissions are creditable

14

• On a pollutant by pollutant basis• Based on difference between old level and new level of emissions for

each unit (actual-to-projected actual test)• Past decreases and/or increases in actual emissions based on:

– Average of any two consecutive years in the past 5 for electric utilities– Average of any two consecutive years in the past 10 for non-utilities

• For example, SO2 emissions decreases and increases are:

Applicability: 5. Determine the amount of each contemporaneous emissions increase or decrease

June 2012

Commence Construction

June 2011

June 2010

June 2009

June 2008

June 2007

Sept. 2014

Commence Operation

June 2013

June 2014

80 tpy

40 tpy

25 tpy

15

• NEI = PME + CEI – CED where:– PME = Proposed modification emissions – CEI = Creditable emission increases– CED = creditable emission decreases

• For example, NEI = 80 + 25 - 40 = 65 tpy– 65 tpy > 40 tpy SO2 SER, project is a major modification

Applicability: 6. Sum all contemporaneous and creditable increases and decreases with the proposed modification

June 2012

Commence Construction

June 2011

June 2010

June 2009

June 2008

June 2007

June 2013

June 2014

40 tpy

80 tpy25 tpy

Sept. 2014

Commence Operation

16

• PTE less than thresholds• Source is

“grandfathered”• Source opted for

“synthetic minor” permit

Applicability: New or Modified Source not Subject to NA NSR

Potential to Emit (PTE)

Actual0

50

100

150

200

250

300

350

Synthetic Minor Source Emissions

Type of Emissions

Emiss

ions

(tpy

)

Major Source Threshold

17

• Main requirements:1. Install Lowest Achievable Emission Rate (LAER)

technologies2. Obtain emission offsets3. Perform alternative sites analysis4. Show statewide facility compliance w/air regulations5. Allow for opportunities for public involvement

• For Indian Country: same requirements as current NA Major NSR rules for areas lacking an implementation plan – 40 CFR Part 51, Appendix S

Application: NA NSR Permit Requirements

18Permitting Process Simplified

Start

Source not

subject toNSR

Source owner submits permit

application

Reviewing authority reviews:• Application

• Proposed/Required Control Technologies

• Compliance with other applicable requirements

Draft permit

developed

Final permitIssued

End

EPA issued permits may be appealed through EPA’s Environmental Appeals

Board (EAB). After EAB process, permits may be appealed in Federal Court.

APPL

ICAB

ILIT

YAP

PLIC

ATIO

NAP

PEAL

S

Are the source proposed emissions ≥

applicable thresholds or emission rates? (per

pollutant, may include fugitives)

Is the

permit for a new source or a

modification to an existing

source?

Is source in an area

that is attaining or nonattaining the

NAAQS?No

Yes

30 day comment

period

Public hearing

Usually appealed within

30 days of finalpermit decision

After appeal processends, permit is

finally approved orrevoked.

Is thesource

exempted?

19

• Rate that has been achieved or is achievable for a defined source

• Rate may be in a permit or regulation

• Requirement does not consider the following:– Economic– Energy– Environmental– Other factors

• RACT/BACT/LAER Clearinghouse– http://cfpub.epa.gov/rblc/index.cfm?action=Home.Home

Application: Lowest Achievable Emission Rate

20

• Emissions reductions from existing sources to balance emissions from proposed new or modified sources – Offset must be at least 1:1 (See Appendix)

• Emissions offsets reductions must be:– Quantifiable, Enforceable, Permanent and Surplus (QEPS)– From Actual Emissions – Real, No “paper” Reductions– Federally enforceable at the time of permit issuance – In effect before the new source can commence operation

Application: Emission Offsets

21

• We do not have the legal authority to waive the offset requirement under section 173 of the Act or under the Tribal Air Rule (TAR)

• Finalized EDZ offset waiver option for sources that satisfy qualifying criteria. Generally, tribes who develop TIPs and request EDZ designation

• We encourage states and tribes to work together in the creation and use of offset banks– E.g. Memorandums of Understanding (MOU)

• EPA can assist tribes interested in developing offset banks

Application: Emission Offsets (Cont.)

22

• Economic Development Zone (EDZ)– Zone targeted for economic development. – Usually participating communities demonstrate:

• pervasive poverty • high unemployment • general distress throughout the designated area

• Criteria for this waiver. Source emissions:– Consistent with the achievement of reasonable further progress – Will not interfere with attainment of the applicable NAAQS by the

attainment date

Application: Emission Offsets Waiver

23

• EPA addressing general lack of offset availability– e.g., Finalized rule that allows for the inter-pollutant and

inter-precursor trading of offsets between direct PM-2.5 emissions and its precursors (“Implementation of the New Source Review (NSR) Program for Particulate Matter Less Than 2.5 Micrometers” (73 FR 28340))

• We continue to explore non-traditional sources of offsets such as offsets from mobile sources and minor sources

Application: Emission Offsets (Cont.)

24

• An analysis by the source owner of:– Alternative sites– Sizes– Production processes– Environmental control techniques

• Analysis for such proposed source must demonstrate that benefits significantly outweigh:– the environmental impacts– social costs imposed as a result of source location, construction, or

modification

Application: Alternative Sites Analysis

25

• A certification by proposed source owner

• Must certify that all sources owned or operated by this source owner in the same state as the proposed source are:– In compliance or – On an approved schedule for compliance with all

applicable requirements

Application: Compliance Certification

26

• Reviewing authority is required to provide:– Public notice to the affected community and the general public on the

draft permit– At least a 30 day public comment period on the draft permit– Opportunity for public hearing on draft permit, if requested by public

• All public comments must be considered before a final permit is developed

• A Technical Support Document (TSD), generally including responses to comments, may also be available with the final permit

Application: Public Involvement

27Permitting Process Simplified

Start

Source not

subject toNSR

Source owner submits permit

application

Reviewing authority reviews:• Application

• Proposed/Required Control Technologies

• Compliance with other applicable requirements

Draft permit

developed

Final permitIssued

End

EPA issued permits may be appealed through EPA’s Environmental Appeals

Board (EAB). After EAB process, permits may be appealed in Federal Court.

APPL

ICAB

ILIT

YAP

PLIC

ATIO

NAP

PEAL

S

Are the source proposed emissions ≥

applicable thresholds or emission rates? (per

pollutant, may include fugitives)

Is the

permit for a new source or a

modification to an existing

source?

Is source in an area

that is attaining or nonattaining the

NAAQS?No

Yes

30 day comment

period

Public hearing

Usually appealed within

30 days of finalpermit decision

After appeal processends, permit is

finally approved orrevoked.

Is thesource

exempted?

28

• Provisions for permit appeals available under the program, same as Tribal Minor NSR program

• Appeals are conducted through the EPA’s Environmental Appeals Board (EAB)

• If all remedies for permit appeal through the EAB are exhausted, person may appeal to Federal Court

Appeals

29

• Program for major sources located in nonattainment areas (generally for emissions at or higher than 100 tpy)

• Pollutants regulated: NAAQS only

• Main requirement: Lowest Achievable Emission Rate (LAER)

• Permits are usually issued no later than 1 year after the date the permit application is deemed complete

Key Points to Remember: NA NSR

Appendix

28 PSD Source Categories

31

28 source categories

1. Coal cleaning plants (with thermal dryers) 15. Coke oven batteries

2. Kraft pulp mills 16. Sulfur recovery plants

3. Portland cement plants 17. Carbon black plants (furnace process)

4. Primary zinc smelters 18. Primary lead smelters

5. Iron and steel mills 19. Fuel conversion plants

6. Primary aluminum ore reduction plants 20. Sintering plants

7. Primary copper smelters 21. Secondary metal production plants

8. Municipal incinerators capable of charging more than 250 tons of refuse per day

22. Chemical process plants

9. Hydrofluoric acid plants 23. Petroleum storage and transfer units with a total storage capacity exceeding 300,000 barrels

10. Sulfuric acid plants 24. Taconite ore processing plants

11. Nitric acid plants 25. Glass fiber processing plants

12. Petroleum refineries 26. Charcoal production plants

13. Lime plants 27. Fossil fuel-fired steam electric plants of more than 250 million British thermal units (BTU)/hour heat input

14. Phosphate rock processing plants 28. Fossil-fuel boilers (or combination thereof) totaling more than 250 million BTU/ hour heat input

NA NSR Major Source Thresholds

32

Nonattainment Areas

Pollutant Nonattainment Classification Major Source Threshold Offset Ratio

Ozone Marginal (≥ 0.085 < 0.092 ppm)

100 tpy of VOC or NOx 1.1 to 1

Moderate (≥ 0.092 < 0.107 ppm) 100 tpy of VOC or NOx 1.15 to 1

Serious (≥ 0.107 < 0.120 ppm) 50 tpy of VOC or NOx 1.2 to 1

Severe (≥ 0.120 < 0.187 ppm) 25 tpy of VOC or NOx 1.3 to 1

Extreme (= 0.187 ppm and up) 10 tpy of VOC or NOx 1.5 to 1

Particulate Matter Moderate 100 tpy -

Serious 70 tpy -

Carbon Monoxide Moderate (9.1 – 16.4 ppm) 100 tpy -

Serious (16.5 ppm and up 50 tpy -

Sulfur Dioxide, Nitrogen Oxides,

and Lead

Only one nonattainment classification

100 tpy -

Significant Emission Rates (SERs)

33

Pollutant SER (tpy) Pollutant SER (tpy)Carbon Monoxide 100 Sulfuric Acid Mist 7

Nitrogen Oxides 40 Hydrogen Sulfide (H2S) 10

Sulfur Dioxide 40 Total Reduced Sulfur (Includes H2S) 10

Particulate Matter (PM10) 15 Reduced Sulfur Compounds (Includes H2S) 10

Particulate Matter (PM2.5) 10; 40 for VOCs, NOx or SO2

Municipal Waste Combustor Organics 3.5*10-6

Ozone 40 VOCs or NOx Municipal Waste Combustor Metals 15

Lead 0.6 Municipal Waste Combustor for Acid Gases

40

Fluorides 3 Municipal Solid Waste Landfills Emissions 50

SER – a rate of emissions that would equal or exceed any of the following rates:

Notwithstanding the above, any emissions rate or any net emissions increase associated with a major stationary source or major modification, which could construct within 10 km of a Class I area, and have an

impact on such area equal to or greater than 1 g/m3 (24-hour average)