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The Clean Air Act: Prevention of Significant Deterioration (PSD) and New Source Review (NSR)
(Construction Permits) August 2000 - TI#21917 Introduction Important Terms Overview Regulation of New Sources in Attainment Areas Regulation of New Sources in Nonattainment Areas EPA Guidance DoD and AF Policy and Guidance For More Information... Document References |
Federal air pollution prevention and control programs, including NSR, are likely to affect Air Force installations as industrial activities are shifted to reflect restructuring, base realignments, and closures. These air programs may also impact installations where the industrial makeup changes to accommodate weapon system changes, and where changes occur in the industrial makeup and ambient air of the surrounding community. This fact sheet provides an overview of NSR and a discussion of applicable Department of Defense and Air Force policies and guidance. The fact sheet also presents a list of important terms and sources of more information.
Actual Emissions - The actual rate of emissions from a source of any regulated pollutant, calculated using the unit's actual operating hours, production rates, and types of materials processed, stored, or combusted over a specified period of time, excluding excess emissions from a malfunction or startups and shutdowns associated with a malfunction.
Ambient Air - That portion of the atmosphere, external to buildings, to which the public has access.
Allowable Emissions - The emission rate at a stationary source of any regulated pollutant calculated using the maximum rated capacity of the source.
Attainment/Nonattainment Area - An AQCR where the amount of a given criteria air pollutant either meets (attainment) or exceeds (nonattainment) the corresponding national ambient air quality standard (NAAQS). An air quality control region can be an "attainment area" for one criteria air pollutant and, at the same time, be a "nonattainment area" for another.
Baseline Concentration - The ambient concentration level of a criteria pollutant existing in the baseline area at the time of the applicable baseline date, as defined in Title 40 Code of Federal Regulations (CFR) 51.166(b)(14).
Best Available Control Technology (BACT) - A control technology based on the maximum degree of reduction for each regulated criteria pollutant that would be emitted from any new major stationary source in an attainment area which the reviewing authority determines is achievable for the new source through application of production processes or available methods, systems, and techniques, including fuel cleaning, treatment, or innovative fuel combination techniques for control of such pollutant.
Contiguous - As used in the definition of affected major source, means properties that are touching or have a common edge or boundary.
Creditable - An increase or decrease in actual emissions is only creditable only if the Administrator has not relied on it for issuing a permit.
Criteria Air Pollutants - Six common air pollutants (ground-level ozone, carbon monoxide, particulate matter, sulfur dioxide, nitrogen dioxide, and lead), designated by the U.S. Environmental Protection Agency (EPA), for which primary and secondary NAAQS have been established. Criteria air pollutants have been judged to cause or contribute to air pollution that may reasonably be anticipated to endanger public health or welfare.
Emission Standard/Limitation - A requirement established by a state or the EPA that seeks to limit the total amount, emission rate, and/or concentration of any regulated air pollutant emitted from a source.
Existing Facility - With reference to a stationary source, any apparatus of the type for which an emission standard is proposed or finalized, and the construction or modification of which was commenced before the date of proposal of that standard; or any apparatus which could be altered in such a way as to be of that type.
Fugitive Emissions - Those emissions that cannot reasonably pass through a stack, chimney, vent, or other functionally equivalent opening.
Lowest Achievable Emissions Rate (LAER) - The most stringent emission limitation in a state's implementation plan or achieved in practice. These standards are generally applicable to new major stationary sources in nonattainment areas.
Major Modification - Any physical or operational change that would result in a "significant net increase in emissions" from a stationary source located in an air quality control region. EPA has established threshold values representing these net increases for each criteria air pollutant. These thresholds are presented in Title 40 Code of Federal Regulations (CFR) 51.165(a)(1)(x) and 51.166(b)(23)(i), and are subject to periodic revision.
Major Source, as defined in Title I Air Pollution Prevention and Control of the CAA - Any stationary source or group of stationary sources located on one or more contiguous or adjacent properties, under common control, belonging to a single major industrial grouping (as described in the Standard Industrial Classification (SIC) Manual, 1987) and described below:
Major Stationary Source, as defined in Title 40 CFR Part 51, Subpart I, Review of New Sources and Modifications - Any stationary source that (1) emits, or has the PTE, 250 tons per year (tpy) or more of any pollutant regulated under the CAA; or (2) emits, or has the PTE, 100 tpy or more of a regulated pollutant within one of the 28 source categories listed in Table 1 on page 6 of this fact sheet; or (3) as of 7 August 1980, is being regulated under Title I Air Pollution Prevention and Control of the CAA.
Mobile Source - Sources of regulated air emissions that are not fixed. Mobile sources are divided into two groups: road vehicles (cars, trucks, buses) and non-road vehicles (trains, planes, lawn mowers, aerospace ground equipment).
Modification - Any physical or operational change in an existing facility that increases the amount of any regulated air pollutant emitted into the atmosphere by that facility, or that results in the emission of any regulated air pollutant into the atmosphere not previously emitted (i.e. low NOx burners, replacement of fire box in boiler).
National Ambient Air Quality Standards (NAAQS) - Primary NAAQS: Levels of air quality judged necessary, with an adequate margin of safety, to protect public health. Secondary NAAQS: Levels of air quality judged necessary to protect the public welfare from any known or anticipated adverse effects of a pollutant. NAAQS are subject to revision by the EPA, and states may establish more stringent ambient air quality standards.
National Emission Standards for Hazardous Air Pollutants (NESHAP) - Standards developed by the EPA for controlling hazardous air pollutant emissions (or HAPs). Pollutant specific NESHAP standards can be found 40 CFR Part 61. NESHAP standards known as "maximum achievable control technology (MACT) standards", which are based on emissions levels that are already being achieved by the better-controlled and lower-emitting sources in an industry, can be found in Title 40 CFR Part 63.
Net Emissions Increase - The amount that the sum of the following exceeds zero: (1) any increase in actual emissions from a physical changes or method change of operation at a stationary source; and (2) any other increases or decreases in actual emissions at the source that are contemporaneous with the particular change and are otherwise creditable and documented.
New Source - Any stationary source built or modified after publication of final or proposed regulations that prescribe a given standard of performance.
New Source Review (NSR) - The term used to describe CAA provisions applicable to certain new or modified stationary sources that emit, or will emit, criteria air pollutants and are located in air quality control regions. Design plans for new sources are subject to an application and review process prior to the issuance of a preconstruction permit and/or Title V operating permit. Regulations pertaining to NSR are found in Title 40 CFR 51.160-51.166.
New Source Performance Standards (NSPS) - Nationally uniform standards applied to specific categories of stationary sources that are constructed, modified, or reconstructed after the standard was proposed. NSPS are found in Title 40 CFR Part 60.
Nonattainment Area (NAA) provisions - A CAA requirement for State Implementation Plans (SIP) to include a permit review process applicable to the construction and operation of new and modified stationary sources in nonattainment areas.
Owner or Operator - Any person who owns, leases, operates, controls, or supervises a facility subject to regulation under the CAA, or a stationary source of which a regulated facility is a part.
Potential to Emit (PTE) - The maximum capacity of a stationary source to emit a pollutant under its physical and operational design.
Prevention of Significant Deterioration (PSD) Provisions - A CAA requirement to include a permit review process applicable to the construction and operation of new and modified stationary sources in attainment areas. The new source must obtain a preconstruction permit demonstrating it will implement best available control technologies (BACT) to control future emissions of pollutants.
PSD Increment - The maximum allowable increase in concentration that is allowed to occur above the baseline concentration for a pollutant.
Reasonable Available Control Technology (RACT) - Standards (less strict than LAER) generally applicable to existing major stationary sources located in nonattainment areas. A series of publications developed by the EPA - Alternative Control Techniques (ACT) and Control Techniques Guidelines (CTG) - provide RACT technical information to guide owner/operators.
Significant - In reference to net emissions increase or the potential of a source to emit pollutants, an emission rate equal to or greater than the rates listed in Title 40 CFR 51.165(a)(1)(x) and 51.166(b)(23)(i).
State Implementation Plan (SIP) - Section 110 of the CAA requires each state to adopt and submit to the EPA a SIP that provides for the implementation, maintenance, and enforcement of NAAQS in each non-compliant AQCR. Title 40 CFR Parts 51 and 52 contain regulations applicable to the preparation, adoption, and submittal of SIP by the states. The principal functions of the SIP include: 1) the implementation of source control strategies, through the NAA and PSD programs, to achieve and maintain NAAQS in a given AQCR, and 2) the identification of adequate means (e.g., air sampling, reporting) by which nonattainment areas can demonstrate progress toward attainment.
Stationary Source - Any building, structure, facility, or installation that emits or may emit any regulated air pollutant or any pollutant listed under Section 112(b), List of Pollutants, of the CAA. Once a stationary source in a nonattainment area qualifies as a "major" stationary source, it becomes subject to NAA provisions. Once a stationary source in an attainment area qualifies as a "major" stationary source, it becomes subject to PSD provisions.
Title V Operating Permits - Title V of the CAA Amendments of 1990 requires the Environmental Protection Agency (EPA) to establish a national, federally enforceable, operating permit program. Title V is operated and enforced at the state level. The Title V Operating Permit program is applicable to, and standardizes the permitting process for, existing and new "major" stationary sources and is designed to ensure an emission source's compliance with all applicable CAA requirements.
Volatile Organic Compounds (VOC) - Any compound of carbon, excluding carbon monoxide, carbon dioxide, carbonic acid, metallic carbides or carbonates, and ammonium carbonate that participates in atmospheric photochemical reactions.
In describing various concepts and procedures involved in the development and submittal of NSR preconstruction applications, reference is made several times to EPA's Draft October 1990 New Source Review Workshop Manual: Prevention of Significant Deterioration and Nonattainment Area Permitting guidance document. This document provides a thorough overview and explanation of the NSR program and is available for download at the following web site: http://www.epa.gov/ttnnsr01/gen/wkshpman.pdf, or by contacting PRO-ACT directly. In addition, because of the complex nature of the NSR program, this fact sheet gives the reader only a general overview of NSR. A detailed overview of the NSR process is beyond the scope of this fact sheet. The applicant is advised to review the details of the application and application procedures with the appropriate reviewing authority or local EPA representative prior to submittal.
Applicability
PSD preconstruction permits are issued to new major stationary sources or major modifications to existing stationary sources that can demonstrate no significant deterioration of ambient air quality in an attainment area. This minimal impact is assured by the permitee through the application of best available control technology (BACT), ambient air quality analysis, modeling, and analysis of visibility, vegetation, and soil impacts. The following are elements and associated information necessary for determining PSD applicability of a new source:
| Table 1: PSD Source Categories with 100 TPY Major Source Thresholds. | |
| 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 aluminium 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. Fossil-fuel boilers (or combination thereof) totaling more than 250 |
| 10. Sulfuric acid plants | 24. Petroleum storage and transfer units with a total storage capacity exceeding 300,000 barrels |
| 11. Nitric acid plants | 25. Taconite ore processing plants |
| 12. Petroleum refineries | 26. Glass fiber processing plants |
| 13. Lime plants | 27. Charcoal production plants |
| 14. Phosphate rock processing plants | 28. Fossil fuel-fired steam electric plants of more than 250 million British thermal units per hour heat input |
Major modifications that are subject to the PSD review apply only if the existing source that is modified is a "major" source and the net emissions increase (discussed below) resulting from the modification is "significant" or the modification is made at a minor source and that change by itself qualifies as a new major source. There are several activities that do not constitute a major modification and are outlined in Title 40 CFR 51.166(b)(2)(iii).
Determining Net Emissions
Emissions netting refers to the process of determining if a "net emissions increase" of a pollutant will result from a proposed physical change or change in operation by taking into consideration certain past and potential future emissions. PSD applies to each pollutant's emissions for which the net increase is "significant". The following equation is used to determine whether there will be a net increase in emissions:
| Net Emission Change = | Emission increases associated with the proposed modification - Source-wide creditable contemporaneous emissions decreases + Source-wide creditable contemporaneous emissions increases |
The procedures for determining the net emissions change at a source are as follows:
The procedures for determining emissions-netting entail a much more detailed process on a case-by-case basis. An example of the process can be obtained by downloading EPA's Draft October 1990 New Source Review Workshop Manual: PSD and NAA Permitting. However, the applicant should first review the EPA guidance and consult with their reviewing authority or local EPA representative before proceeding with a PSD application.
How to Obtain a PSD Permit To obtain a PSD permit, the owner or operator must:
Each of the above mentioned is discussed in further detail in the sections that follow.
Please note that throughout the PSD permitting process, procedures to attain adequate public participation, including a public notice and public comment period, are occurring before final action is taken on the application.
Best Available Control Technology (BACT) If the major stationary source is new, physically changed, or modified and is subject to the PSD permitting process, then the owner or operator must analyze the source to ensure the application of BACT. Each BACT analysis is conducted on a case-by-case basis by the reviewing authority and is evaluated based on the energy, environmental, economic, and other impacts associated to the new or modified source. Once evaluated, the reviewing authority will then specify an emission limitation, for each pollutant, that the owner or operator must comply with in order to achieve the maximum degree of reduction of emissions. The reviewing authority may also require the source to use alternative equipment, work practices, or operational standards for instances where there are no economically or technologically feasible ways to measure emissions.
The EPA issued a memorandum that put into practice certain program initiatives designed to improve the efficiency and success of the NSR program. Among these was a method for determining BACT through what the EPA calls the "top-down" process. This method for BACT determination is just one example that the EPA approves.
The top-down method provides that all available control technologies be ranked in descending order of control effectiveness. The owner or operator must first examine the most stringent ("top") alternative. This alternative is established as BACT unless otherwise demonstrated by the applicant and conceded by the reviewing authority that the impacts justify a conclusion that the most stringent technology is not achievable in that case. The most stringent technology is then eliminated and the next most stringent alternative is considered, and so on. For further details and an example of the top-down approach to BACT determination, refer to EPA's Draft October 1990 New Source Review Workshop Manual: PSD and NAA Permitting.
Other alternatives are available for determining BACT and should be considered before completing the PSD application. Each applicant should consult with local EPA officials or their reviewing authority for further direction and assistance.
Ambient Air Quality Analysis
An ambient air quality analysis of the impacts of construction and operation of a new or modified major source is required for a PSD permit. The impacts of all air pollutants, including noncriteria pollutants, must be evaluated. A separate air quality analysis must be submitted for each regulated pollutant and must demonstrate that the source will not cause nor contribute to a violation of any applicable NAAQS or PSD increment. The analysis will involve an assessment of existing air quality including ambient monitoring data, dispersion modeling results, and predictions of ambient concentrations and future growth resulting from the proposed project.
Additional Analysis
Additional impact analyses must be prepared for all PSD applications for each pollutant emitted from the proposed project. This analysis must include an assessment of the following:
Class I Area Impacts
The PSD program allows for larger air emission increments in certain areas. The area in which the proposed project is located can substantially impact the air quality of that region and thus must be identified with the appropriate area classification. There are three types of area classifications that are recognized by the EPA (Class I, II, and III). The classifications differ in terms of the amount of growth permitted before significant deterioration would be deemed to occur. EPA designated Class I areas, promulgated in August 1977 under Title I Air Pollution Prevention and Control Section 162 of the CAA allow for the smallest increments and minimal degree of deterioration. Class III areas have the largest increments and therefore provide for a larger amount of development.
There are three Class I areas that have been or may be designated:
If a proposed project may affect the Class I area, then the applicant is required to submit written notification to the Federal Land Manager. Because of the sensitive nature of Class I areas, it is important for the applicant to identify and thoroughly analyze all impacts on the surrounding area.
Nonattainment Area (NAA) provisions are designed to facilitate efforts to improve degraded ambient air quality and bring nonattainment areas into attainment. NAA preconstruction permits are issued to sources that demonstrate they will achieve a net air quality benefit for the nonattainment area. Achievement by the permittee of the net improvement is assured through the application of lowest achievable emission rate (LAER) technology, emission offsets, alternative site analysis, and compliance certification.
Many of the concepts and procedures under NAA provisions are similar to those of PSD applicability. Similar to PSD, NAA provisions are triggered depending on 1) the amount of a regulated pollutant to be emitted from a new or modified source and 2) the existing quality of the regional ambient air. However, dissimilar to PSD provisions, NAA provisions limit the definition of "source", applicability thresholds, and the pollutants that must be evaluated and must provide for LAER and offsets of nonattainment pollutants. The sections that follow will focus on these elements for nonattainment areas.
Definition of a "Source"
The EPA revised NSR regulations in late 1981 allowing States the option of adopting a "plantwide" definition of a stationary source in a nonattainment area as opposed to the more stringent "dual" definition. As a result, there are two definitions for stationary sources for major source permitting in nonattainment areas:
Pollutants and Applicability Thresholds
New sources in a nonattainment area are subject to NAA preconstruction review only if the source emits or has the PTE in major amounts of criteria pollutants for which the area has been designated nonattainment. Source modifications that result in a significant increase of a pollutant for which the source is major and designated nonattainment require NAA review.
The major source thresholds for nonattainment NSR differ from that of PSD provisions. A major stationary source that emits or has the PTE to emit 100 tpy of any criteria pollutant or any physical or operational change at an existing non-major source that constitutes a major stationary source by itself are subject to NAA regulations. The alternative 250-tpy major source thresholds (for PSD) do not apply to sources in nonattainment areas and all sources (not just those listed in Table 1) that emit 100 tpy or more are subject to NAA permitting. See the "major source" definition under the Important Terms section.
Lowest Achievable Emission Rate
A new or modified source must apply for and be granted a preconstruction permit demonstrating that it will achieve the lowest achievable emission rate (LAER) for criteria air pollutants in nonattainment areas, unlike BACT required for PSD sources. LAER is the most stringent emission limitation based on either 1) the most stringent limitation in any SIP for that class or category of source or 2) the most stringent limitation achieved in practice for a certain class or category of source.
There are several technological considerations involved in selecting LAER. The EPA recommends the following sources for information in determining LAER:
Offsets
A new or modified source is also required to "offset" any increased emissions it generates with a decrease elsewhere in the same nonattainment area. The offset provision shifts the burden of accommodating new growth in nonattainment areas to new sources. Only offsets of the same pollutant are allowed within a given area; for example, hydrocarbon increases may not be offset with commensurate reductions in sulfur dioxide emissions. The EPA provides further guidance in determining offset emissions in their Draft October 1990 New Source Review Workshop Manual: PSD and NAA Permitting.
Guidance for Major Source Determinations at Military Installations under the Air Toxics, New Source Review, and Title V Operating Permit Programs of the Clean Air Act (Act), 2 August 1996, EPA OAQPS, provides broad guidance on implementing NSR, PSD, and Title V Operating Permit programs with regard to "major source" determinations at federal military installations. Installations must identify common control, industrial grouping by Standard Industrial Classification (SIC) codes, and sources not typically found at other non-military installations. It is important to note that states are not required to apply this guidance. Accordingly, installations interested in applying the guidance to their operations must coordinate with the state to get "buy in" and then adequately apply the guidance to their installation. Brief summaries of some of the issues addressed in this guidance are:
Copies of this guidance are available from PRO-ACT or from the OAR Policy and Guidance WWW site at http://www.epa.gov/ttn/oarpg/t5/meta/m6455.html.
Guidance for Major Source Determination at Military Installation under the Air Toxics, New Source Review, and Title V Operating Permit Programs of the Clean Air Act, 2 August 1996, Department of Defense, Office of Air Quality Planning and Standards. This guidance pertains to making major source determinations at military installations.
Air Quality Management Using Pollution Prevention: A Joint Service Approach, March 1998, United States Army CHPPM, Navy/Marine Corps NFESC, Air Force HSC/OEBQ. This document highlights P2 techniques that have been successfully implemented at facilities or have potential to be implemented successfully. Air Force Instruction 32-7040, Air Quality Compliance, 9 May 1994. The procedures outlined in this AFI are essential to achieve and maintain compliance with all applicable federal, state, and local air quality compliance standards.
Military Installations Overseas
Requirements for military installations located overseas are provided by the Final Governing Standards (FGS) for the host nation where the installation is located, or the Overseas Environmental Baseline Guidance Document (OEBGD) at locations where an FGS is not available. Air compliance requirements may be influenced by the host nation regulations and may differ significantly from requirements within the United States and its territories. Most FGS require that stationary equipment, facilities, or activities having the PTE harmful substances into the air must have permits in order to install, construct, or operate. However, the FGS typically states that DoD components are not required specifically to apply for those air emissions permits. The host nation typically will be the entity required to apply for the permit under host nation law. If the host nation does apply for an emissions permit for the DoD installation located in that country, the DoD component is required to abide by the conditions and restrictions of that permit. If no permit is applied for, then DoD installations are required to follow the FGS for that country. Additionally, if a permit is issued to an installation overseas, and the permit is less restrictive or less protective of the environment than those found in the FGS, the FGS as well as the permit standard must be followed. Since variances may occur in this permitting process, depending on the host nation, installations should coordinate with the proper permitting authorities in the host nation and their installation judge advocate office.
EPA has set up a World Wide Web site containing information and links related to New Source Review. The address for this site is http://www.epa.gov/ttn/nsr/.
New Source Review requirements are developed and implemented by the EPA Office of Air Quality Planning and Standards, Information Transfer and Program Integration Division, Integrated Implementation Group, (919) 541-0871.