NSR—Minor New Source Review Darrel Harmon U.S. EPA Office of Air and Radiation

2 Key Topics  Review overview of NSR program  What is minor NSR?  Why is minor NSR important in Indian Country?  What are EPA and tribes doing to bring minor NSR protection to Indian Country?

3 What is New Source Review?  Preconstruction permit program  Program to protect public health and welfare as new pollution sources are built or existing sources are modified  New sources should be designed and built clean

4 NSR Program Structure and Key Requirements for Sources New Source Review Non Attainment NSR LAER AnalysisEmission offsets Prevention of Significant Deterioration BACT Analysis Increment Analysis Minor Source NSR Not determined yet for Indian country

5 NAAQS NSR Program Applicability and Ambient Air Quality Air Quality Concentration PSD and Minor NSR NAA NSR and Minor NSR

6 What is minor NSR?  Preconstruction permit program for sources with actual and potential emissions below major source threshold(s) for area  Program that creates permit limits to keep source’s potential to emit (PTE) below major source thresholds –That is, it creates synthetic minor sources

7 What is a synthetic minor source? A source  whose potential to emit (PTE) starts out greater than major threshold, but has actual emissions below threshold and  brings PTE below major threshold by applying enforceable controls on emissions or operating conditions Major source threshold Tons/year Example: Major source thresholds vary

8 What are basic requirements for minor NSR in state programs?  CAA is silent on specific requirements  EPA has minimal rules for state programs –Found in 40 CFR  New sources and modifications cannot violate NAAQS or SIP control strategies, or interfere with attainment or maintenance of NAAQS

9 Typical Source Requirements under State Minor NSR State programs vary greatly  Impose controls on new and modified sources  Provide for synthetic minor permits  May permit and control air toxics as well as criteria pollutants  May apply to sources with emissions above de minimis levels

10 Examples of State Minor NSR Programs  California – source/pollutant-specific; offsets for sources with PTE over 25 tons/year  Florida – general permits; set de minimis levels; requires RACT for sources that will violate NAAQS  Nevada – PM 10 and sulfur compounds; incinerators uses general emission limits  Texas – all sources require permits; standard/flexible/facility-specific permit; must install BACT

11 What is the status of minor NSR in Indian Country?  No federal program in place  A few tribes are developing TIPs with minor NSR regulations  TAR clarifies that states lack jurisdiction in Indian Country  Tribes are concerned about number of unregulated minor sources

12 Why create minor NSR rules for Indian Country?  Protect and improve air quality  Tribes made EPA aware that this was a priority to them  Provide equal opportunity for economic development –Clarity of requirements for sources –Level playing field on and off reservations –Mechanism for obtaining synthetic minor permits  Build tribal capacity –TIP development –Delegation opportunities  Protect tribal sovereignty from state incursion

13 To which sources would minor NSR apply in Indian country?  New minor sources wishing to locate in Indian Country  Existing minor sources making minor or major modifications  Major sources seeking to limit potential to emit and become synthetic minors

14 What else is in EPA’s draft rule? Draft approaches can still be modified  Flexible approach for local areas  Specific requirements for federal implementation –Technology requirements (“MSCT”) for new minor sources –Limited air quality analysis –Limit PTE to create synthetic minor status –De minimis applicability: 20% of major source level –May include generic permits for smaller sources

15 Keep this in mind…  EPA’s rule would be federal implementation approach  Can be delegated  Tribes have option of developing and implementing their own program

16 Key Points  Minor NSR regulates construction and modification of sources with PTE between de minimis and major source levels  # minor sources >>> # major sources  Minor NSR is critical for air quality protection and economic development in Indian Country  New federal and tribal rules are needed