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

3 Permitting Process Simplified Start Source not subject to NSR Source owner submits permit application Reviewing authority reviews: Application Proposed/Required Control Technologies Compliance with other applicable requirements Draft permit developed Final permit Issued End EPA issued permits may be appealed through EPA’s Environmental Appeals Board (EAB). After EAB process, permits may be appealed in Federal Court. APPLICABILITY APPLICATION APPEALS 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 final permit decision After appeal process ends, permit is finally approved or revoked. Is the source 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 list28 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)See Presentation Appendix Applicability: New Sources Start Determine source’s Potential to Emit (PTE) (per pollutant, may include fugitives) Is PTE ≥ applicable threshold? (per pollutant) Source not subject to NA NSR Yes No Source subject to NA 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) Yes Start Are Proposed modification emissions ≥ SER? (per pollutant) Modification not subject to Major NSR Determine Source’s Net Emissions Increase (NEI), (per pollutant) Is the NEI ≥ SER? Modification is a major modification and subject to Major NSR Yes No 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 Significant Emission Rate (SER) 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 SO 2 emissions from a proposed project are 80 tpy The SER for SO 2 is 40 tpy First step, determine if source emissions are higher than the SER In this case, 80 tpy > 40 tpy SER for SO 2 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 SO 2 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 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 SO 2 source increased its SO 2 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 Commence Operation June 2013 June 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, SO 2 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 Commence Operation June 2013 June 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 = = 65 tpy – 65 tpy > 40 tpy SO 2 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 tpy 80 tpy25 tpy Sept 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 Major Source Threshold

17 Main requirements: 1.Install Lowest Achievable Emission Rate (LAER) technologies 2.Obtain emission offsets 3.Perform alternative sites analysis 4.Show statewide facility compliance w/air regulations 5.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

18 Permitting Process Simplified Start Source not subject to NSR Source owner submits permit application Reviewing authority reviews: Application Proposed/Required Control Technologies Compliance with other applicable requirements Draft permit developed Final permit Issued End EPA issued permits may be appealed through EPA’s Environmental Appeals Board (EAB). After EAB process, permits may be appealed in Federal Court. APPLICABILITY APPLICATION APPEALS 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 final permit decision After appeal process ends, permit is finally approved or revoked. Is the source 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 – 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)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

27 Permitting Process Simplified Start Source not subject to NSR Source owner submits permit application Reviewing authority reviews: Application Proposed/Required Control Technologies Compliance with other applicable requirements Draft permit developed Final permit Issued End EPA issued permits may be appealed through EPA’s Environmental Appeals Board (EAB). After EAB process, permits may be appealed in Federal Court. APPLICABILITY APPLICATION APPEALS 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 final permit decision After appeal process ends, permit is finally approved or revoked. Is the source 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

2828 PSD Source Categories source categories 1. Coal cleaning plants (with thermal dryers)15. Coke oven batteries 2. Kraft pulp mills16. Sulfur recovery plants 3. Portland cement plants17. Carbon black plants (furnace process) 4. Primary zinc smelters18. Primary lead smelters 5. Iron and steel mills19. Fuel conversion plants 6. Primary aluminum ore reduction plants20. Sintering plants 7. Primary copper smelters21. 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 plants23. Petroleum storage and transfer units with a total storage capacity exceeding 300,000 barrels 10. Sulfuric acid plants24. Taconite ore processing plants 11. Nitric acid plants25. Glass fiber processing plants 12. Petroleum refineries26. Charcoal production plants 13. Lime plants27. Fossil fuel-fired steam electric plants of more than 250 million British thermal units (BTU)/hour heat input 14. Phosphate rock processing plants28. Fossil-fuel boilers (or combination thereof) totaling more than 250 million BTU/ hour heat input

NA NSR Major Source ThresholdsThresholds 32 Nonattainment Areas PollutantNonattainment ClassificationMajor Source ThresholdOffset Ratio OzoneMarginal (≥ < ppm)100 tpy of VOC or NOx1.1 to 1 Moderate (≥ < ppm)100 tpy of VOC or NOx1.15 to 1 Serious (≥ < ppm)50 tpy of VOC or NOx1.2 to 1 Severe (≥ < ppm)25 tpy of VOC or NOx1.3 to 1 Extreme (= ppm and up)10 tpy of VOC or NOx1.5 to 1 Particulate MatterModerate100 tpy- Serious70 tpy- Carbon MonoxideModerate (9.1 – 16.4 ppm)100 tpy- Serious (16.5 ppm and up50 tpy- Sulfur Dioxide, Nitrogen Oxides, and Lead Only one nonattainment classification 100 tpy-

Significant Emission Rates (SERs) 33 PollutantSER (tpy)PollutantSER (tpy) Carbon Monoxide100Sulfuric Acid Mist7 Nitrogen Oxides40Hydrogen Sulfide (H 2 S)10 Sulfur Dioxide40Total Reduced Sulfur (Includes H 2 S)10 Particulate Matter (PM10)15Reduced Sulfur Compounds (Includes H 2 S)10 Particulate Matter (PM2.5)10; 40 for VOCs, NOx or SO 2 Municipal Waste Combustor Organics3.5*10 -6 Ozone40 VOCs or NOxMunicipal Waste Combustor Metals15 Lead0.6Municipal Waste Combustor for Acid Gases 40 Fluorides3Municipal Solid Waste Landfills Emissions50 SER 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/m 3 (24-hour average)