ÿWPC Ï9þ›âqø`QþN$¹ÙÇóè3±Üm¼9µa¼£DÌG”0¹yës‰Y.†Ö=0N‚ÇXE>P×x£`ZÌíuv×#P‡j§¤c½êû,é\1eŒK·ãŸ¯``-·'«7¥hÚ|ñ%]:÷x)WçjÅaè|n“×®¡ýû9Um›RI\¦9¯Ðzd¦U03ÖY}\ªZÿV¿CáÎYÚ.e(Xú4~Àöl´l¿åÒ pú£ 1Aí¶C ø÷ÖeÒ× ³Raîñ|ÂmÉœ^õ…tܦ`Ÿy,]!ͦüÎÕµxb†B68uwƒ++Ô÷Å_ÑEË[eJ­¦mêÚºi*–µDê_>#—ÌïŽ8‘·3.ßTµ»xÿ¤î=üFZ˜&Dp̹-ºÉB.°jÍî¯x$*s"?—7þWX³úÉ%‘–26‡— }Á5Håõü®½ÑÖ]m)# >UNI %— 0(w@Å4Æ(ÆîÆ´Æz-@ 0Dm |± €- 0D­ 0lñ 0D]]¡¡·¿¿¿¿¿a××× A8 0DÕÕ B D+6 0KaƬ¬¬ A©r˜HP LaserJet 6P/6MP - EnhancedHPBXLAÈÈÈÈÈÈÈÈ0 (ÈhH  Z ‹6Times New Roman RegularX($¡¡ BCEDEFTGEH[I[JKH#3|xK‚Level 1Level 2Level 3Level 4Level 5ƒLevel 1Level 2Level 3Level 4Level 5„Level 1Level 2Level 3Level 4Level 5…Level 1Level 2Level 3Level 4Level 5 #Ñ#€ÖØXÿÿd#Ñ(3¯$§§Ý ƒ!ÝÝ  Ý rà  àòò3óóSection€173(a)(1)(A)€of€the€Act€requires€that€emissions€increases€of€nonattainmentÐ ° Ðpollutants€from€new€or€modified€major€stationary€sources€in€nonattainment€areas€be€offset€byÏexisting€emissions.€€Section€172(c)(2)€of€the€Act€states€that€NSR€offsets€required€underÌsection€173(a)(1)(A)€must€not€be€otherwise€required€by€the€Act.€€€ vÝ ƒüÝ$Ýà  àòòÚ  Ú1Ú  ÚóóÝ  Ý€The€NSR€regulations€that€were€adopted€prior€to€the€1990€Amendments€to€the€Act€do€notÐ ° Ðallow€crediting€of€emissions€reductions€to€meet€the€National€Emissions€Standards€for€HazardousÏAir€Pollutants€(NESHAP)€requirements€at€40€CFR€part€61€for€NSR€netting€[e.g.,€see€40€CFRÏ51.165(a)(1)(vi)(E)(1)€and€51.l65(a)(1)(xi)].€€€In€practice,€part€61€reductions€are€generallyÏprecluded€from€current€and€future€NSR€netting€since€part€61€reductions€likely€occurred€prior€toÏ1990€and€are€outside€the€current€and€future€contemporaneous€periods€for€NSR€netting.€€ThisÏpolicy€applies€to€part€63€emissions€reductions€and€does€not€alter€the€requirement€for€emissionsÏreductions€under€part€61.€€The€EPA€will€consider€proposing€regulatory€change€in€the€future€toÏdelete€this€prohibition€for€part€61€emissions€reductions.€(3¯$©©Ý ƒ!ÝÝ  Ý((2üÝ$¤¤Ý ƒ!ÝÝ  Ýà  àòòÚ  Ú0Ú  Úóó(#Ã$òòÚ  Ú0Ú  Úóó Ñ Ð Ñ Ý ƒüÝ$Ýà  àòòÚ  Ú2Ú  ÚóóÝ  Ý€Section€112(b)(6)€of€the€Act€generally€excludes€the€HAP€listed€in€section€112€(as€wellÐ ° Ðas€any€pollutants€that€may€be€added€to€the€list)€from€the€PSD€provisions€of€part€C€of€title€I.Ì Wà  àSection€173(a)(1)(A)€of€the€Act€requires€that€emissions€increases€of€nonattainmentÏpollutants€from€new€or€modified€major€stationary€sources€in€nonattainment€areas€be€offset€byÏexisting€emissions.€€Section€172(c)(2)€of€the€Act€states€that€NSR€offsets€required€underÌsection€173(a)(1)(A)€must€not€be€otherwise€required€by€the€Act.€€€% $# I&mage <=8ÿÿÿÿÿÿÿÿÿÿCÿÿ HKKKK(3¯$££Ý ƒ!ÝÝ  Ý d'ÈÈÈÈdxd( ±þ$’’ò òFigure€Ú  Ú1Ú  Úó óLevel 1Level 2Level 3Level 4Level 5% $#›&OLE 2.0 Box <=8ÿÿÿÿÿÿÿÿÿÿCÿÿ HKKKKÝ ƒ!ÝÝ  ݛр ìŸÑÑ€/eÑœ€›Ìòòò òÌÌÌÌœñFñà@ÐÐ"ìàñFñ›œñGññFñNovemberñFññGññHñó óñHññIñóóñIññJñNovember€12,€1997ñJññIñòòñIññHñò òñHñ›ˆÐ . ~ МÌÌÌÌÌMEMORANDUMó óóó›Ð ’â  ÐÌSUBJECT:à0 ` àCrediting€of€Maximum€Achievable€Control€Technology€(MACT)€EmissionÐ ^®  ÐReductions€for€New€Source€Review€(NSR)€Netting€and€OffsetsÐ ` (#` (# ÐÌFROM:à ` àJohn€S.€Seitz,€œDirectorñBñ€ñBññCññBñ.ñBññCññEñ€€€€€ñEññDñ/s/€by€Henry€ThomasñDñ›Ð ` Ðà  àà ` àOffice€of€Air€Quality€Planning€and€Standards€(MD„10)€ÌÌTO:à  àà ` àBob€Hannesschlager,€Acting€DirectorÐ Â Ðà  àà ` àMultimedia€Planning€and€Permitting€Division,€Region€VI€€(6PD)ÌÌÌà  àThis€memorandum€responds€to€the€August€27,€1997€memorandum€from€Allyn€M.€DavisÏrequesting€the€Environmental€Protection€Agencyððs€(EPA)€policy€concerning€whether€emissionsÏreductions€needed€to€meet€requirements€for€MACT€codified€at€40€CFR€part€63€„€NationalÏEmissions€Standards€for€Hazardous€Air€Pollutants€for€Source€Categories€may€be€credited€forÏNSR€netting.€€The€NSR€netting€is€the€procedure€for€determining€if€a€modification€at€majorÏstationary€œsources›€must€meet€the€major€NSR€provisions€of€€parts€C€and€D€of€title€I€of€the€CleanÏAir€Act€(Act).€€The€EPA€has€received€other€inquiries€asking€for€EPA€to€clarify€whether€MACTÏemissions€reductions€are€precluded€from€being€creditable€for€NSR€netting.ÌÌà  àThis€memorandum€also€reiterates€EPAððs€interpretation€of€section€173(a)(1)(A)€of€the€ActÏregarding€crediting€of€MACT€emissions€reductions€in€meeting€the€NSR€offset€requirement€thatÏapplies€to€new€or€modified€major€stationary€sources€in€areas€designated€as€nonattainment.Ìò òòòÌBACKGROUNDó óóóÐ %X $ ÐÌà  àSection€112(d)€of€the€Act€as€amended€in€1990€requires€that€certain€source€categoriesÏapply€the€MACT€to€reduce€emissions€of€hazardous€air€pollutants.€€€The€new€MACT€requirements€œÌÌÌÌÌÌÐ -n(- ÐÑ ìŸÑÑ7€ÑøXXdæXXdæ7ÑÑ  Ñare›€codified€at€40€CFR€part€63.œ×ƒ×Ý ƒ#ÃÝòòÚ  Ú1Ú  ÚóóÝ  Ý×  ×›€€In€many€cases€these€emissions€reductions€to€meet€MACT€may€€Ð ^ Мalso›€result€in€emissions€reductions€of€other€air€pollutants€[e.g.,€hazardous€air€pollutants€œ(HAP)Ïmay›€also€œbe›€volatile€organic€œcompounds€(VOC)›€or€particulate€matter]€that€are€regulated€under€theÏmajor€NSR€program.€×ƒ¦ ×Ý ƒ#ÃÝòòÚ  Ú2Ú  ÚóóÝ  Ý×  ×Ð  ² ÐÌà  àThe€major€NSR€program€applies€to€new€or€modified€major€stationary€sources€of€airÏpollutants€€and€includes€requirements€for€prevention€of€significant€deterioration€(PSD)€forÏattainment/unclassified€areas€and€œfor›€nonattainment€NSR€in€nonattainment€areas.€€€ModificationsÏthat€are€considered€a€physical€change€or€change€in€the€method€of€operation€at€major€stationaryÏsources€are€subject€to€the€major€NSR€requirements€if€the€modification€results€in€a€significant€ð ðnetÏemissions€increaseðð€of€an€NSR€regulated€pollutant€from€the€source€[see,€e.g.,€40€CFRÏœ52.21(b)(2)(i)].€€The›€term€NSR€netting€refers€to€the€process€of€considering€certain€previous€andÏprospective€emissions€changes€at€an€existing€major€source€over€a€contemporaneous€period€toÏdetermine€if€a€ð ðnet€emissions€increaseðð€will€result€from€a€proposed€modification€[see,€e.g.,€Ì40€CFR€52.21(b)(3)(i)].€€If€the€ð ðnet€emissions€increaseðð€is€significant,€then€major€NSR€appliesÏ[see,€e.g.,€40€CFR€œ52.21(b)(23)].€€To›€be€creditable€for€NSR€netting€an€emissions€reductionÏshould€be€consistent€with€State€rules,€EPAððs€NSR€€rules€[see,€e.g.,€40€CFR€œ51.165(a(1)Ï(vi)(E)(3)],›€and€EPAððs€Emissions€Trading€Policy€Statement€(ETPS)€[see€51€FR€43814,ÏDecember€4,€œ1986].€€As›€stated€in€the€ETPS,€œan›€œemissions›€reduction€must€be€considered€ð ðsurplusððÏto€be€creditable€for€NSR€netting.€ÌÌà  àThe€NSR€netting€procedure€is€different€from€the€requirement€to€obtain€NSR€offsets.€€InÏgeneral,€NSR€netting€is€the€procedure€at€major€stationary€sources€for€determining€whether€aÏproposed€emissions€increase€of€an€air€pollutant€from€a€modification,€along€with€other€creditableÏemissions€increases€and€decreases€over€a€contemporaneous€period,€is€significant€and€thereforeÏsubject€to€the€major€NSR€œprovisions.€€For›€NSR€permitting€in€nonattainment€areas,€NSR€offsetsÏare€required€for€new€major€stationary€sources€for€modifications€at€major€stationary€sources€onceÏit€has€been€determined,€using€the€NSR€netting€procedure,€that€the€modification€is€significant.€€InÏsummary,€for€modifications€at€major€stationary€sources€in€nonattainment€areas€that€increaseÏemissions€of€nonattainment€pollutants,€NSR€netting€is€the€procedure€for€determining€if€the€netÐ l  ÐÑ/eÑÑаÑÑ  ÑñJñÑ/eÑÑаÑÑ  ÑñJñemissions€increase€is€significant€and€subject€to€the€major€nonattainment€NSR€requirements,Ïincluding€NSR€offsets.ÌÌœò òòòNETTING›€POLICYóóÐ  ² Ðó óÌà  à€Since€the€MACT€program€is€not€designed€to€limit€criteria€or€other€pollutants€regulated€by€ÏNSR€programs€of€parts€C€and€D€of€title€I€of€the€Act,€€EPAððs€policy€is€that€actual€emissionsÏreductions€of€hazardous€or€other€air€pollutants€€that€result€from€complying€with€MACTÏregulations€codified€at€40€CFR€part€63€may€be€considered€€ð ðsurplusðð€for€purposes€of€NSR€netting€Ìand€are€not€precluded€from€NSR€netting€as€long€as€the€reductions€are€otherwise€creditable€underÏNSR.€€Of€course,€œif€›€MACT€reductions€are€relied€on€in€State€implementation€plans€for€criteriaÏpollutant€attainment€purposes€(e.g.,€RACT,€reasonable€further€progress,€rate€of€progress,Ïattainment€demonstrations),€then€the€reductions€are€not€creditable€for€NSR€netting€since€thisÏwould€be€ð ðdouble€countingðð€of€the€emissions€reduction€within€the€same€criteria€pollutantÏprogram.€€As€discussed€below,€€this€netting€policy€does€not€change€the€requirement€forÏnonattainment€areas€that€significant€net€emissions€increases€of€nonattainment€pollutants€fromÏmodifications€at€major€stationary€sources€must€be€more€than€offset€by€actual€emissionsÏreductions€that€are€not€otherwise€required€by€the€Act.ÌÌà  àFor€example,€if€compliance€with€a€MACT€standard€under€part€63€at€a€major€source€resultsÏin€an€actual€emissions€decrease€of€200€tpy€in€toluene€emissions,€which€is€both€a€hazardous€airÏpollutant€under€section€112€and€a€VOC€under€NSR,€the€reduction€may€be€available€for€NSRÏnetting€at€the€source€(1)€as€long€as€the€reduction€has€not€been€used€to€meet€RACT€or€otherÏattainment€strategies€(e.g.,€the€15€percent€reduction€requirement€for€certain€ozone€nonattainmentÏareas)€and,€(2)€€the€reduction€is€otherwise€creditable€under€NSR.€€€Of€course,€if€after€NSR€nettingÏthe€emissions€increase€is€significant,€then€the€NSR€offset€requirement€applies.ÌÌò òòòOFFSETS€POLICYóóó óÐ  B ÐÌà  àThe€EPAððs€policy€for€NSR€offsets€is€that€since€hazardous€emissions€reductions€requiredÏto€meet€the€MACT€standards€at€40€CFR€part€60€and€part€61,€including€emissions€reductions€toÏmeet€the€early€reduction€requirements€of€section€112(i)(5),€are€required€by€the€Act€theseÏemissions€reductions€are€not€creditable€as€NSR€œoffsets.ñAñ׃×ñAññAñ׃×ñAñÝ ƒ#ÃÝòòÚ  Ú3Ú  ÚóóÝ  Ý×  ×€€However,›€any€emissions€reductions€thatÐ #À  Ðare€in€excess€of€or€incidental€to€the€MACT€standards€are€not€precluded€from€being€creditable€asÏNSR€offsets€as€long€as€all€conditions€of€a€creditable€offset€are€met€[see€57€FR€13553,€April€16,Ï1992.]€ÌÌà  àThe€policies€set€forth€in€this€document€do€not€change€existing€EPA€regulations,€areÏintended€solely€as€guidance,€do€not€represent€final€agency€action,€and€cannot€be€relied€upon€toÏcreate€rights€enforceable€by€any€party.̜РN*ð#( Ðà  àThe›€Regional€Offices€should€send€this€memorandum€to€the€States€within€theirÏjurisdiction.€€Questions€concerning€specific€issues€and€cases€should€be€directed€to€the€appropriateÏRegional€Office.€€€The€Regional€Office€staff€may€contact€Mr.€Mike€Sewell€of€the€œIntegrated›ÏImplementation€Group€at€(919)€541„0873€if€they€have€any€questions.€€This€document€is€availableÏon€the€technology€transfer€network€(TTN)€NSR€bulletin€board.€€The€bulletin€board€may€beÏaccessed€through€the€TTN€Web€site€at€hppt://www.epa.gov/ttn/€under€NSR„New€Source€Review€œÌInformation.›€€Readers€unfamiliar€with€this€web€site€may€obtain€help€by€calling€the€TTN€help€line€œÏat›€(919)€541„5384.ÌÌcc:à  àRegional€Air€Division€Directors,€œI„XÐ t  ÐÌñKñ€bcc:›à  àKaren€Blanchard€(MD„12)Ð @â  Ðà  àTom€Curran€(MD„12)Ìà  àMike€Sewell€(MD„12)Ìà  àLydia€Wegman€(MD„10)ÌÌœUSEPA:OAQPS:ITPID:IIG:MSEWELL:PJSMITH:NCMU:RM700:MD„12:9„23„97ÌCONTROL€NO.:€AQPS„97„0388€€€€€€€€€€DUE€DATE:€9/23/97ÌFILENAME:€A:\MACTNET.17aÌREVISED:€9/26/97;11„6„97ÌÌÌCoordinated€w/Bruce€Jordan€and€Jack€Edwardson,€ESD,€Tom€Helms€and€Joe€Paisie,€AQSSD,Ïand€Tom€Curran,€Bob€Kellam€and€Karen€Blanchard,€ITPIDÌSee€note€for€OECA,€Reg.€IX€staffer,€OECA€staffer€positions.Ì›ñKñ