Nonattainment New Source Review
(NA NSR) Program
Raj Rao
US Environmental Protection Agency
Office of Air Quality Planning and Standards
919-541-5344, [email protected]
What is the purpose of this
discussion?
1. NA NSR Applicability
2. NA NSR Program Requirements
3. NA NSR Applicability and Netting Example
2
How do we define a
nonattainment area?
 Areas in which air quality is worse than NAAQS
levels
 Such NA areas must improve air quality within a
certain time period
3
Which sources might be subject
to the major NA NSR program?
 New major sources
 Existing major sources making major
modifications


Physical or operational changes at the source
Change should show significant net emissions
increase
4
How do we determine if a new source is a
major source under the NA NSR program?
1.
2.
3.
4.
5.
Identify NA pollutants for new source
Determine source’s potential to emit (PTE)
Determine applicable major source thresholds
Determine if PTE exceeds major source
threshold for any NA pollutant
If so, source is subject to major NA NSR for
that pollutant
5
How do I identify which pollutants
are nonattainment pollutants?
 Determine if area is in attainment or
nonattainment for each criteria pollutant emitted
by the source

To find this information:
 Contact the appropriate EPA Regional Office or applicable
permitting authority
 Search an EPA database such as: www.epa.gov/air/data
6
What is the source’s
potential to emit (PTE)?
 The maximum capacity of source to emit a
pollutant under its physical and operational
design


Based on operating 24/7 (8760 hours/year), unless
restricted by a permit condition
Can include effect of emissions controls, if
enforceable by permit or:
 State Implementation Plan (SIP),
 Tribal Implementation Plan (TIP) or
 Federal Implementation Plan (FIP) conditions
7
What is the applicable major
source threshold?
 100 tpy or lower depending on NA severity
Nonattainment Areas
Pollutant
Nonattainment Classification
Major Source
Threshold
Ozone
Marginal (≥ 0.085 < 0.092 ppm)
100 tpy of VOC or NOx
Moderate (≥ 0.092 < 0.107 ppm)
100 tpy of VOC or NOx
Serious (≥ 0.107 < 0.120 ppm)
50 tpy of VOC or NOx
Severe (≥ 0.120 < 0.187 ppm)
25 tpy of VOC or NOx
Extreme (= 0.187 ppm and up)
10 tpy of VOC or NOx
Particulate Matter
(10µm)
Moderate
100 tpy
Serious
70 tpy
Carbon Monoxide
Moderate (9.1 – 16.4 ppm)
100 tpy
Serious (16.5 and up ppm)
50 tpy
Only one nonattainment classification
100 tpy
Sulfur Dioxide, Nitrogen
Oxides, PM2.5 and Lead
8
When is a modification subject to the major
NA NSR program?

When:


The proposed project emissions exceed the
significant emission rate (SER) and
The proposed project results in a significant net
emissions increase (i.e., contemporaneous
increases and decreases in emissions at the existing
major source exceed the SER) after a netting
analysis is performed

SER Examples:

40 tpy for VOC, NO2, SO2
9
What steps should I follow to do a Netting Analysis?
1.
2.
3.
4.
5.
6.
Determine the emissions increase from the proposed project
Determine the beginning and ending dates of the
contemporaneous period as it relates to the proposed
modification
Determine which emissions units at the source experienced a
physical or operational change that increased or decreased
emissions during the contemporaneous period
Determine which emissions are creditable
Determine on a pollutant by pollutant basis, the amount of each
contemporaneous and creditable emissions increase and
decrease
Sum all contemporaneous and creditable increases and
decreases with the increase from the proposed project to
determine if a significant net emissions increase will occur
10
1. Determine the emissions increase from the
proposed project

If project emissions > significant emissions rate
(SER), source determines its net emissions
increase to know if it is a major modification or
not

If project emissions < SER, source is exempt
from review and is not a major modification

For example, SO2 emissions from proposed
project are 80 tpy. 80 tpy > 40 tpy SER, thus
net emissions increase determination needed
11
2. Determine the beginning and ending dates of
the contemporaneous period

To determine the source’s net emission increase, we need to define the
contemporaneous period



For NA NSR, States generally use 5 calendar years before the source commences
operation
For 40 CFR Appendix S, period starts 5 years before the source commences
construction and ends when the source commences operation
For example, our SO2 source planned to commence construction in June
2006 and begin operation in September 2008, the contemporaneous period
for Appendix S is defined as:
Commence
Construction
Commence
Operation
80 tpy
June
2001
June
2002
June
2003
June
2004
June
2005
June
2006
June
2007
June Sept.
2008 2008
12
3. Determine which units experienced an increase or
decrease in emissions during contemporaneous period

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 PSD permit

For example, our SO2 source increased its SO2 emissions in 2003
and decreased its emissions in 2008
Commence
Construction
Commence
Operation
80 tpy
June
2001
June
2002
June
2003
June
2004
June
2005
June
2006
June
2007
June Sept.
2008 2008
13
4. Determine which emissions are creditable
 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
Has the same health and welfare significance as the proposed
increase from the source
 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
5. Determine the amount of each contemporaneous
emissions increase or decrease


On a pollutant by pollutant basis
Based on difference between old level and new level of emissions
for each unit
Past decreases and/or increases in actual emissions based on:

Average of any two consecutive years in the past 5 for utilities
Average of any two consecutive years in the past 10 for non-utilities



For example, SO2 emissions decreases and increases are:
Commence
Construction
25 tpy
Commence
Operation
80 tpy
40 tpy
June
2001
June
2002
June
2003
June
2004
June
2005
June
2006
June
2007
June Sept.
2008 2008
15
6. Sum all contemporaneous and creditable increases
and decreases with the proposed modification
NEI = PMEI + CEI – CED where:

PMEI = Proposed modification emissions increase
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
Commence
Construction
25 tpy
Commence
Operation
80 tpy
40 tpy
June
2001
June
2002
June
2003
June
2004
June
2005
June
2006
June
2007
June Sept.
2008 2008
16
NA NSR Applicability and Netting
Exercise
Existing Source is Installing an
Engine Testing Facility
 First, determine if source is currently a major source

Source located in serious ozone nonattainment area
Pollutant
PTE (tpy)
NO2
45
CO
900
VOC
355
Nonattainment Areas Major Source Thresholds
Pollutant
Nonattainment Classification
Major Source
Threshold
Ozone
Serious (≥ 0.107 < 0.120 ppm)
50 tpy of VOC or NOx
Carbon Monoxide
Serious (16.5 and up ppm)
50 tpy
Nitrogen Oxides
Only one nonattainment classification
exists
100 tpy
18
Existing Source is Installing an
Engine Testing Facility
 Second, determine if existing source is making a major
modification
 Source:

Began construction in March 2006 with a 26 tpy permit limit for VOC
Constructed following emission units:
Emission
Unit
Construction
Date
Removed following emission units in 2002:
Potential
VOC
Emissions
Emission Unit
Degreaser #2
Coating Line
March 2002
9 tpy
2 Spray Paint
Systems
September
2004
27 tpy each
Degreaser #1
Actual VOC Emissions
1997
30 tpy
1998
40 tpy
1998
28 tpy
1999
26 tpy
2000
0 tpy
2001
0 tpy
2002
0 tpy
19
Existing Source is Installing an
Engine Testing Facility
 Is the source currently a major one? Yes, for CO and VOCs
 Is the new installation a major modification?


Step 1: 26 tpy VOC > 25 tpy SER for serious ozone nonattainment areas
(CAA Section 183), source needs to determine NEI
Step 2: The contemporaneous period is:
Commence
Operation
26tpy
Jan
2001
Jan
2002
Jan
2003
Jan
2004
Jan
2005
March
2006
20
Existing Source is Installing an
Engine Testing Facility
 Is the new installation a major modification?

Step 3, 4, 5: Creditable emission increases and decreases during
contemporaneous period are:
Commence
Operation
54
tpy
9 tpy
26tpy
27 tpy
35 tpy
Jan
2001

Jan
2002
Jan
2003
Jan
2004
Jan
2005
March
2006
Step 6: Determine Net Emission Increases (NEI):
 NEI = 26+ 54 + 9 – 35 – 27 = 27 tpy
 27 tpy VOC NEI > 25 tpy SER for serious ozone nonattainment area
 Source is a major modification
21
NA NSR Program Requirements
What are the major NA-NSR
program requirements?





LAER (Lowest Achievable Emission Rate)
Offsets at prescribed ratios
Alternative sites analysis
Statewide facility compliance certification
Public Involvement
23
What is LAER?
 Rate that has been achieved or is achievable for
defined source
 Rate may be in a permit or regulation
 Requirement does not consider the following:




Economic
Energy
Environmental
Other factors
24
What are emissions offsets and
what are its requirements?
 Emissions reductions from existing sources to balance
emissions from proposed new or modified sources

Offset must be at least 1:1
 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 for new
source
in effect before the new source can commence operation
25
How is alternative sites analysis
defined?
 Source owner must submit an analysis 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 its location,
construction, or modification
26
How is compliance certification
defined?
 Source owner must certify that all other
sources in that state that are:
 Owned or operated by the source owner are


In compliance or
On an approved schedule for compliance
27
What are the public participation
requirements?
 Public notice:


Must be for a 30-day period
Generally in regional and local newspapers
 All public comments must be considered before
a final permit is established
 A Technical Support Document (TSD) generally
including responses to comments may also be
available with the final permit
28