Nonattainment New Source Review (NA NSR) Program

Raj RaoUS Environmental Protection AgencyOffice of Air Quality Planning and Standards

919-541-5344, rao.raj@epa.gov

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What is the purpose of this discussion?

1. NA NSR Applicability 1. NA NSR Applicability

3. NA NSR Applicability and Netting Example3. NA NSR Applicability and Netting Example

2. NA NSR Program Requirements2. NA NSR Program Requirements

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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

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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

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How do we determine if a new source is a major source under the NA NSR program?

1. Identify NA pollutants for new source2. Determine source’s potential to emit (PTE) 3. Determine applicable major source thresholds4. Determine if PTE exceeds major source

threshold for any NA pollutant5. If so, source is subject to major NA NSR for

that pollutant

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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

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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

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What is the applicable major source threshold?

100 tpy or lower depending on NA severity

Nonattainment Areas

Pollutant Nonattainment ClassificationMajor 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

Sulfur Dioxide, Nitrogen Oxides, PM2.5 and Lead

Only one nonattainment classification 100 tpy

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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

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What steps should I follow to do a Netting Analysis?

1. Determine the emissions increase from the proposed project

2. Determine the beginning and ending dates of the contemporaneous period as it relates to the proposed modification

3. Determine which emissions units at the source experienced a physical or operational change that increased or decreased emissions during the contemporaneous period

4. Determine which emissions are creditable

5. Determine on a pollutant by pollutant basis, the amount of each contemporaneous and creditable emissions increase and decrease

6. 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

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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

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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:

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

June 2006

Commence Construction

June 2005

June 2004

June 2003

June 2002

June 2001

June 2007

June 2008

Sept. 2008

Commence Operation

80 tpy

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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

June 2006

Commence Construction

June 2005

June 2004

June 2003

June 2002

June 2001

Sept. 2008

Commence Operation

June 2007

June 2008

80 tpy

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

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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:

June 2006

Commence Construction

June 2005

June 2004

June 2003

June 2002

June 2001

June 2007

June 2008

40 tpy

80 tpy25 tpy

Sept. 2008

Commence Operation

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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

June 2006

Commence Construction

June 2005

June 2004

June 2003

June 2002

June 2001

June 2007

June 2008

40 tpy

80 tpy25 tpy

Sept. 2008

Commence Operation

NA NSR Applicability and Netting Exercise

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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 ClassificationMajor 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

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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

Emission Unit

Construction Date

Potential VOC

Emissions

Coating Line March 2002 9 tpy

2 Spray Paint Systems

September 2004

27 tpy each

Constructed following emission units:Emission Unit Actual VOC Emissions

Degreaser #1 1997 30 tpy

1998 40 tpy

Degreaser #2 1998 28 tpy

1999 26 tpy

2000 0 tpy

2001 0 tpy

2002 0 tpy

Removed following emission units in 2002:

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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:

March 2006

Commence Operation

Jan 2005

Jan 2004

Jan 2003

Jan 2002

Jan 2001

26tpy

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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:

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

March 2006

Commence Operation

Jan 2005

Jan 2004

Jan 2003

Jan 2002

Jan 2001

9 tpy 54 tpy

35 tpy

27 tpy

26tpy

NA NSR Program Requirements

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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

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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

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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

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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

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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

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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