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PrCondensed print: Line printer, 1/2" margin T/BÔ€©©©ÔÔC€Z3 ªHA`$ArialTTCÔÑ X ÑÑ X ÑÑ#€ZZ©d#ÑÔ€©©©ÔÔC€Z3 ªHA`$ArialTTCÔ3 ªHA`$ArialTT˜<ÿÿ:2 col condenCondensed print 2-column (2 std pages on one) Ñ  ÑÑ  ÑÑ\RØ'3\ÑÑ X ÑÑ X ÑÒ X ÒÒ X ÒÔ€©©©ÔÔC€Z3 ªHA`$ArialTTCÔÑ#€ZZ©d#ÑÒ¼h¼Ò~ÿÿ:CEP (8 linesPrevents split of header and text$ÿÿ"'ô4  .Times New RomanBoldE- ù 5Ý ƒa/×)ÝÓ  ÓÝ  Ýòò€€€€€€€€óó('2/×$©©Ý ƒ¤T!ÝÓ  ÓÝ  Ý'ÈÈÈÈdxd‚ Level 1 Level 2 Level 3 Level 4 Level 5('2/×$££Ý ƒ¤T!ÝÓ  ÓÝ  Ý(!ÿÿ$““ò òTable€Ú  ÚÚ  Úó ócdebAÿÿ<< bÿÿ ‚Ý ƒ¤T!ÝÓ  ÓÝ  ÝÔ€j¼h ¼XXÔÔ€k¼¢–¼¼¼h ÔÔ€kXg0X¼^¼¢–ÔÔ€nX+ïXX^Xg0Ô€€€€€òòÚ  Ú1Ú  ÚóóThe€EPA's€NSR€regulations€for€nonattainment€areas€are€setÐ ° Ðforth€at€40€CFR€51.165,€52.24€and€part€51,€AppendixS.€€The€PSDÏprogram€is€set€forth€in€40€CFR€52.21€and€51.166.('2/×$¢¢Ý ƒ¤T!ÝÓ  ÓÝ  Ý ÿÿÿd%ô\  `$Times NewRoman'ô4  .Times New RomanBold&ÿÿ0 d d d<þ6X9`(Courier |Ý ƒ¤T!ÝÓ  ÓÝ  ÝÔ€Œ¼h ¼XXÔÔ€¼¢–¼¼¼h ÔÔ€Xg0X¼^¼¢–ÔÔ€ŽX+ïXX^Xg0Ô€€€€€òòÚ  Ú2Ú  ÚóóThis€guidance€pertains€only€to€source€categories€other€thanÐ ° Ðelectric€utilities,€and€EPA€does€not€intend€for€this€guidance€toÏaffect€the€WEPCO€rulemaking€in€any€way.<þ6X9`(Courier(ÿÿ$òòÚ  ÚÚ  Úóó ‚Ý ƒ¤T!ÝÓ  ÓÝ  ÝÔ€¼5¼XXÔÔ€^¼B´¼¼¼5ÔÔ€^XG)X¼^¼B´ÔÔ€pX;¢XX^XG)Ô€€€€€òòÚ  Ú1Ú  ÚóóThe€EPA's€NSR€regulations€for€nonattainment€areas€are€setÐ ° Ðforth€at€40€CFR€51.165,€52.24€and€part€51,€AppendixS.€€The€PSDÏprogram€is€set€forth€in€40€CFR€52.21€and€51.166. |Ý ƒ¤T!ÝÓ  ÓÝ  ÝÔ€¼5¼XXÔÔ€^¼B´¼¼¼5ÔÔ€^XG)X¼^¼B´ÔÔ€pX;¢XX^XG)Ô€€€€€òòÚ  Ú2Ú  ÚóóThis€guidance€pertains€only€to€source€categories€other€thanÐ ° Ðelectric€utilities,€and€EPA€does€not€intend€for€this€guidance€toÏaffect€the€WEPCO€rulemaking€in€any€way. ýÝ ƒ¤T!ÝÓ  ÓÝ  ÝÔ€¼5¼XXÔÔ€^¼B´¼¼¼5ÔÔ€^XG)X¼^¼B´ÔÔ€pX;¢XX^XG)Ô€€€€€òòÚ  Ú3Ú  ÚóóThe€WEPCO€rule€refers€specifically€to€"visibilityÐ ° Ðlimitation"€rather€than€"air€quality€related€values."€€However,ÏEPA€clearly€stated€in€the€preamble€to€the€final€rule€thatÏpermitting€agencies€have€the€authority€to€"solicit€the€views€ofÏothers€in€taking€any€other€appropriate€remedial€steps€deemedÏnecessary€to€protect€class€I€areas.€.€..€€The€EPA€emphasizes€thatÏall€environmental€impacts,€including€those€on€class€I€areas,€canÏbe€considered.€.€.."€[57€FR€32322].€€Further,€the€statutoryÏprotections€in€section€165(d)€plainly€are€intended€to€protectÏagainst€any€"adverse€impact€on€the€AQRV€of€such€[class€I]€landsÏ(including€visibility)."€€Based€on€this€statutory€provision,€EPAÏbelieves€that€the€proper€focus€of€any€air€quality€assessment€forÏa€pollution€control€project€should€be€on€visibility€and€any€otherÏrelevant€AQRV's€for€any€class€I€areas€that€may€be€affected€by€theÏproposed€project.€€Permitting€authorities€should€notify€FederalÏLand€Managers€where€appropriate€concerning€pollution€controlÏprojects€which€may€adversely€affect€AQRV's€in€class€I€areas. ~Ý ƒ¤T!ÝÓ  ÓÝ  ÝÔ€¼5¼XXÔÔ€^¼B´¼¼¼5ÔÔ€^XG)X¼^¼B´ÔÔ€pX;¢XX^XG)Ô€€€€€òòÚ  Ú4Ú  ÚóóFor€purposes€of€this€guidance,€pollution€prevention€meansÐ ° Ðany€activity€that€through€process€changes,€product€reformulationÏor€redesign,€or€substitution€of€less€polluting€raw€materials,Ïeliminates€or€reduces€the€release€of€air€pollutants€and€otherÏpollutants€to€the€environment€(including€fugitive€emissions)Ïprior€to€recycling,€treatment,€or€disposal;€it€does€not€meanÏrecycling€(other€than€certain€"in„process€recycling"€practices),Ïenergy€recovery,€treatment,€or€disposal€[see€Pollution€PreventionÏAct€of€1990€section€6602(b)€and€section€6603(5)(A)€and€(B);€seeÏalso€"EPA€Definition€of€'Pollution€Prevention,'"€memorandum€fromÏF.€Henry€Habicht€II,€May€28,€1992].€€òòò òóóó ó rÝ ƒ¤T!ÝÓ  ÓÝ  ÝÔ€¼5¼XXÔÔ€^¼B´¼¼¼5ÔÔ€^XG)X¼^¼B´ÔÔ€pX;¢XX^XG)Ô€€€€€òòÚ  Ú5Ú  ÚóóThis€is€in€marked€contrast€to€the€addition€of€pollutionÐ ° Ðcontrol€equipment€which€typically€does€not,€in€EPA's€experience,Ïresult€in€any€increase€in€the€source's€utilization€of€theÏemission€unit€in€question.€€In€the€few€instances€where€thisÏpresumption€is€not€true,€the€safeguards€discussed€in€the€nextÏsection€should€provide€adequate€environmental€protections€forÏthese€additions€of€pollution€control€equipment. ÿÝ ƒ¤T!ÝÓ  ÓÝ  ÝÔ€¼5¼XXÔÔ€^¼B´¼¼¼5ÔÔ€^XG)X¼^¼B´ÔÔ€pX;¢XX^XG)Ô€€€€€òòÚ  Ú6Ú  ÚóóRegardless€of€the€severity€of€the€classification€of€theÐ ° Ðnonattainment€area,€a€one„to„one€offset€ratio€will€be€consideredÏsufficient€under€this€policy€to€mitigate€a€collateral€increaseÏfrom€a€pollution€control€project.€€States€may,€however,€requireÏoffset€ratios€that€are€greater€than€one„to„one. ÒÝ ƒ¤T!ÝÓ  ÓÝ  ÝÔ€¼5¼XXÔÔ€^¼B´¼¼¼5ÔÔ€^XG)X¼^¼B´ÔÔ€pX;¢XX^XG)Ô€€€€€òòÚ  Ú7Ú  ÚóóIf€the€source€were€located€in€an€area€in€whichÐ ° Ðnonattainment€NSR€applied€to€NOòòxóó€emissions€increases,€200Ð xÈ Ðtons€of€NOòòxóó€offset€credits€would€be€required€for€the€projectÐ @ Ðto€be€eligible€for€an€exclusion. ¦Ý ƒ¤T!ÝÓ  ÓÝ  ÝÔ€¼5¼XXÔÔ€^¼B´¼¼¼5ÔÔ€^XG)X¼^¼B´ÔÔ€pX;¢XX^XG)Ô€€€€€òòÚ  Ú8Ú  ÚóóThe€production€of€energy€here€is€incidental€to€the€projectÐ ° Ðand€is€not€a€factor€in€qualifying€the€project€for€an€exclusion€asÏa€pollution€control€project.€€In€addition,€any€supplemental€orÏco„firing€of€non„landfill€gas€fuels€(e.g.,€natural€gas,€oil)Ïwould€disqualify€the€project€from€being€considered€a€pollutionÏcontrol€project.€€The€fuels€would€be€used€to€maximize€anyÏeconomic€benefit€from€the€project€and€not€for€the€purpose€ofÏpollution€control€at€the€landfill.€€However,€the€use€of€anÏalternative€fuel€solely€as€a€backup€fuel€to€be€used€only€duringÏbrief€and€infrequent€start„up€or€emergency€situations€would€notÏnecessarily€disqualify€an€energy€recovery€project€from€beingÏconsidered€a€pollution€control€project. 1Ý ƒ¤T!ÝÓ  ÓÝ  ÝÔ€¼5¼XXÔÔ€^¼B´¼¼¼5ÔÔ€^XG)X¼^¼B´ÔÔ€pX;¢XX^XG)Ô€€€€€òòÚ  Ú1Ú  ÚóóSee€memorandum€entitled€"Emissions€from€Landfills,"€fromÐ ° ÐGerald€A.€Emison,€Director,€Office€of€Air€Quality€Planning€andÏStandards,€to€David€P.€Howekamp,€Director,€Air€ManagementÏDivision,€Region€IX,€dated€October€6,€1987€(attached).€€It€isÏimportant€to€note€that€the€interpretation€contained€in€thisÏmemorandum€was€only€applicable€to€landfills.Ì "Ý ƒ¤T!ÝÓ  ÓÝ  ÝÔ€¼5¼XXÔÔ€^¼B´¼¼¼5ÔÔ€^XG)X¼^¼B´ÔÔ€pX;¢XX^XG)Ô€€€€€òòÚ  Ú2Ú  ÚóóIn€fact,€the€1980€preamble€language€recognized€the€concernÐ ° Ðthat€sources€could€avoid€NSR€by€calling€emissions€fugitives,€evenÏif€the€source€could€capture€those€emissions.€€The€EPA'sÏoriginally„proposed€definition€of€fugitive€emissions€was€changedÏin€the€final€1980€regulations€to€"ensure€that€sources€will€notÏdischarge€as€fugitive€emissions€those€emissions€which€wouldÏordinarily€be€collected€and€discharged€through€stacks€or€otherÏfunctionally€equivalent€openings,€and€will€eliminateÏdisincentives€for€the€construction€of€ductwork€and€stacks€for€theÏcollection€of€emission."€€òòIdóó.  ÿÿCƒ‰•›£«±Right ParRight-Aligned Paragraph NumbersI.A.1.a.(1)(a)i)a)3|jÛ«%ô\  `$Times NewRomanXXjô\  PŽ6G;XPô\  `*Times New RomanTTôôCô\  PŽ6QôP3 ªHA`$ArialTTomanTT©©H ªH@Žú¥Å;©@'ô4  .Times New RomanBold¼¼€ô4  pŽ–ÂG;¼<þ6X9`(CourieromanldXôxþ6X@ɹ`7ûX@( ¤T$¡¡Ó  Ó((3 È$§§Ý ƒ¤T!ÝÓ  ÓÝ  Ý(ÈhH  Z ‹6Times New Roman Regular ÐDÑDÒ ÓDÔDÕDÖ×+ØÑÙÑ7„A%(' tÝ ƒa/×)ÝÓ  ÓÝ  ÝÔ‡tZXXÔ€€€€€€€€€€€Ô#†XB[XtZ'#Ô  ;Ý ƒa/×)ÝÓ  ÓÝ  Ýòòklk/7396\52\02óó ïÝ ƒa/×)ÝÓ  ÓÝ  ÝÔ‡’XXÔÔ.Xƒ†HK:\0106\001\002\VOLUME.2\APPENDIX.E1XÔK:\0106\001\002\VOLUME.2\APPENDIX.E1Ô/  ÔÔ#†’Xâ:X'#ÔTable_A%ô\  `$Times NewRoman'ô4  .Times New RomanBold<þ6X9`(Courier ýÝ ƒ¤T!ÝÓ  ÓÝ  ÝÔ€¼h ¼XXÔÔ€“¼¢–¼¼¼h ÔÔ€“Xg0X¼^¼¢–ÔÔ€”X+ïXX^Xg0Ô€€€€€òòÚ  Ú3Ú  ÚóóThe€WEPCO€rule€refers€specifically€to€"visibilityÐ ° Ðlimitation"€rather€than€"air€quality€related€values."€€However,ÏEPA€clearly€stated€in€the€preamble€to€the€final€rule€thatÏpermitting€agencies€have€the€authority€to€"solicit€the€views€ofÏothers€in€taking€any€other€appropriate€remedial€steps€deemedÏnecessary€to€protect€class€I€areas.€.€..€€The€EPA€emphasizes€thatÏall€environmental€impacts,€including€those€on€class€I€areas,€canÏbe€considered.€.€.."€[57€FR€32322].€€Further,€the€statutoryÏprotections€in€section€165(d)€plainly€are€intended€to€protectÏagainst€any€"adverse€impact€on€the€AQRV€of€such€[class€I]€landsÏ(including€visibility)."€€Based€on€this€statutory€provision,€EPAÏbelieves€that€the€proper€focus€of€any€air€quality€assessment€forÏa€pollution€control€project€should€be€on€visibility€and€any€otherÏrelevant€AQRV's€for€any€class€I€areas€that€may€be€affected€by€theÏproposed€project.€€Permitting€authorities€should€notify€FederalÏLand€Managers€where€appropriate€concerning€pollution€controlÏprojects€which€may€adversely€affect€AQRV's€in€class€I€areas.%ô\  `$Times NewRomanTable_B%ô\  `$Times NewRoman'ô4  .Times New RomanBold<þ6X9`(Courier ~Ý ƒ¤T!ÝÓ  ÓÝ  ÝÔ€–¼h ¼XXÔÔ€—¼¢–¼¼¼h ÔÔ€—Xg0X¼^¼¢–ÔÔ€˜X+ïXX^Xg0Ô€€€€€òòÚ  Ú4Ú  ÚóóFor€purposes€of€this€guidance,€pollution€prevention€meansÐ ° Ðany€activity€that€through€process€changes,€product€reformulationÏor€redesign,€or€substitution€of€less€polluting€raw€materials,Ïeliminates€or€reduces€the€release€of€air€pollutants€and€otherÏpollutants€to€the€environment€(including€fugitive€emissions)Ïprior€to€recycling,€treatment,€or€disposal;€it€does€not€meanÏrecycling€(other€than€certain€"in„process€recycling"€practices),Ïenergy€recovery,€treatment,€or€disposal€[see€Pollution€PreventionÏAct€of€1990€section€6602(b)€and€section€6603(5)(A)€and€(B);€seeÏalso€"EPA€Definition€of€'Pollution€Prevention,'"€memorandum€fromÏF.€Henry€Habicht€II,€May€28,€1992].€€òòò òóóó ó%ô\  `$Times NewRoman'ô4  .Times New RomanBold<þ6X9`(Courier rÝ ƒ¤T!ÝÓ  ÓÝ  ÝÔ€š¼h ¼XXÔÔ€›¼¢–¼¼¼h ÔÔ€›Xg0X¼^¼¢–ÔÔ€œX+ïXX^Xg0Ô€€€€€òòÚ  Ú5Ú  ÚóóThis€is€in€marked€contrast€to€the€addition€of€pollutionÐ ° Ðcontrol€equipment€which€typically€does€not,€in€EPA's€experience,Ïresult€in€any€increase€in€the€source's€utilization€of€theÏemission€unit€in€question.€€In€the€few€instances€where€thisÏpresumption€is€not€true,€the€safeguards€discussed€in€the€nextÏsection€should€provide€adequate€environmental€protections€forÏthese€additions€of€pollution€control€equipment.%ô\  `$Times NewRoman'ô4  .Times New RomanBold<þ6X9`(Courier ÿÝ ƒ¤T!ÝÓ  ÓÝ  ÝÔ€ž¼h ¼XXÔÔ€Ÿ¼¢–¼¼¼h ÔÔ€ŸXg0X¼^¼¢–ÔÔ€ X+ïXX^Xg0Ô€€€€€òòÚ  Ú6Ú  ÚóóRegardless€of€the€severity€of€the€classification€of€theÐ ° Ðnonattainment€area,€a€one„to„one€offset€ratio€will€be€consideredÏsufficient€under€this€policy€to€mitigate€a€collateral€increaseÏfrom€a€pollution€control€project.€€States€may,€however,€requireÏoffset€ratios€that€are€greater€than€one„to„one.%ô\  `$Times NewRoman'ô4  .Times New RomanBold<þ6X9`(Courier ÒÝ ƒ¤T!ÝÓ  ÓÝ  ÝÔ€¢¼h ¼XXÔÔ€£¼¢–¼¼¼h ÔÔ€£Xg0X¼^¼¢–ÔÔ€¤X+ïXX^Xg0Ô€€€€€òòÚ  Ú7Ú  ÚóóIf€the€source€were€located€in€an€area€in€whichÐ ° Ðnonattainment€NSR€applied€to€NOòòxóó€emissions€increases,€200Ð xÈ Ðtons€of€NOòòxóó€offset€credits€would€be€required€for€the€projectÐ @ Ðto€be€eligible€for€an€exclusion.%ô\  `$Times NewRoman'ô4  .Times New RomanBold<þ6X9`(Courier ¦Ý ƒ¤T!ÝÓ  ÓÝ  ÝÔ€¦¼h ¼XXÔÔ€§¼¢–¼¼¼h ÔÔ€§Xg0X¼^¼¢–ÔÔ€¨X+ïXX^Xg0Ô€€€€€òòÚ  Ú8Ú  ÚóóThe€production€of€energy€here€is€incidental€to€the€projectÐ ° Ðand€is€not€a€factor€in€qualifying€the€project€for€an€exclusion€asÏa€pollution€control€project.€€In€addition,€any€supplemental€orÏco„firing€of€non„landfill€gas€fuels€(e.g.,€natural€gas,€oil)Ïwould€disqualify€the€project€from€being€considered€a€pollutionÏcontrol€project.€€The€fuels€would€be€used€to€maximize€anyÏeconomic€benefit€from€the€project€and€not€for€the€purpose€ofÏpollution€control€at€the€landfill.€€However,€the€use€of€anÏalternative€fuel€solely€as€a€backup€fuel€to€be€used€only€duringÏbrief€and€infrequent€start„up€or€emergency€situations€would€notÏnecessarily€disqualify€an€energy€recovery€project€from€beingÏconsidered€a€pollution€control€project.%ô\  `$Times NewRoman'ô4  .Times New RomanBold<þ6X9`(Courier 1Ý ƒ¤T!ÝÓ  ÓÝ  ÝÔ€ª¼h ¼XXÔÔ€«¼¢–¼¼¼h ÔÔ€«Xg0X¼^¼¢–ÔÔ€¬X+ïXX^Xg0Ô€€€€€òòÚ  Ú1Ú  ÚóóSee€memorandum€entitled€"Emissions€from€Landfills,"€fromÐ ° ÐGerald€A.€Emison,€Director,€Office€of€Air€Quality€Planning€andÏStandards,€to€David€P.€Howekamp,€Director,€Air€ManagementÏDivision,€Region€IX,€dated€October€6,€1987€(attached).€€It€isÏimportant€to€note€that€the€interpretation€contained€in€thisÏmemorandum€was€only€applicable€to€landfills.Ì%ô\  `$Times NewRoman'ô4  .Times New RomanBold<þ6X9`(Courier "Ý ƒ¤T!ÝÓ  ÓÝ  ÝÔ€®¼h ¼XXÔÔ€¯¼¢–¼¼¼h ÔÔ€¯Xg0X¼^¼¢–ÔÔ€°X+ïXX^Xg0Ô€€€€€òòÚ  Ú2Ú  ÚóóIn€fact,€the€1980€preamble€language€recognized€the€concernÐ ° Ðthat€sources€could€avoid€NSR€by€calling€emissions€fugitives,€evenÏif€the€source€could€capture€those€emissions.€€The€EPA'sÏoriginally„proposed€definition€of€fugitive€emissions€was€changedÏin€the€final€1980€regulations€to€"ensure€that€sources€will€notÏdischarge€as€fugitive€emissions€those€emissions€which€wouldÏordinarily€be€collected€and€discharged€through€stacks€or€otherÏfunctionally€equivalent€openings,€and€will€eliminateÏdisincentives€for€the€construction€of€ductwork€and€stacks€for€theÏcollection€of€emission."€€òòIdóó.%ô\  `$Times NewRoman'ô4  .Times New RomanBold<þ6X9`(Courier ïÝ ƒa/×)ÝÓ  ÓÝ  ÝÔ‡²ô)XXÔÔ.Xƒ†HK:\0106\001\002\VOLUME.2\APPENDIX.E1XÔK:\0106\001\002\VOLUME.2\APPENDIX.E1Ô/  ÔÔ#†²X¢bXô)'#Ô%ô\  `$Times NewRoman ;Ý ƒa/×)ÝÓ  ÓÝ  Ýòòklk/7396\52\02óó‰‹Ý ƒ¤T!ÝÓ  ÓÝ  ÝÔ€¼5¼XXÔÔ€^¼B´¼¼¼5ÔÔ` °ÔÑ  ÑÑ XÑà@+ìàAppendixEˆÐ `  ÐÌà@(ìàNew€Source€ReviewˆÌÌÌÌÐ  d´ ÐØØÔ€^XG)X¼^¼B´ÔÔ€XB[XX^XG)ÔѤ°ÑÑ7€B[XXdìXXdì7ÑÑ€_Ññ×ññÙñÖ€`ÿÿÖñÙññÙñÖ€³ÿÿÖñÙññ×ññ×ñÖ€‡ÿÿÖñ×ñò òà@‰‰(ìàNEW€SOURCE€REVIEWó óˆÐ ° ÐÌÌÓ€Óà  àThis€appendix€briefly€discusses€New€Source€Review€(NSR)€and€is€divided€into€theÏfollowing€sections:€€€Ó€ÓÌÌÌà0  àð"ðà0` (#(#àIntroduction€Ðš ê` (#` (# ÐÌà0  àð"ðà0` (#(#àOverview€of€the€NSR€ProgramÐr  ` (#` (# ÐÌà0  àð"ðà0` (#(#àThe€Pollution€Control€Project€ExclusionÐJš ` (#` (# ÐÌà0  àð"ðà0` (#(#àPSD€Significance€Level€for€NMOCÐ"r ` (#` (# ÐÌà0  àð"ðà0` (#(#àReferencesÐúJ` (#` (# ÐÌà0  àð"ðà0` (#(#àMemo:€€Pollution€Control€Projects€and€New€Source€Review€ApplicabilityÐÒ"` (#` (# ÐÌà0  àð"ðà0` (#(#àMemo:€€Classification€of€Emissions€from€Landfills€for€NSR€ApplicabilityÐ ªú ÐPurposesÐ ` (#` (# ÐÌà0  àð"ðà0` (#(#àMemo:€€Emissions€from€Landfills€Ðn¾` (#` (# ÐÌÌà0  à[NOTE:€€The€memos€included€in€this€appendix€are€replicas€of€the€originals.€€NewÏelectronic€copies€were€generated€for€posting€the€memos€on€the€EPA€TTN.]Ð (#(# ÐÌÌÌÓ€Óò òIntroductionó óÐ Î  ÐÌÔ‡‚XB[XXXB[Ôñ×ññØñÖ€…`ŽÖñØññØñÖ€±`ŽÖñØññ×ññ×ñÖ€ˆ`ŽÖñ×ñà  àA€landfill,€like€any€other€stationary€source,€may€need€to€undergo€new€source€reviewÐ ’#â# Ð(NSR)€preceding€either€its€initial€construction€or€its€expansion€(modification)€of€an€existing€site.€ÏBoth€the€amount€of€air€pollution€that€a€landfill€releases€and€the€location€of€a€landfill€will€helpÏdetermine€which€type€of€NSR€requirements€will€apply.€€This€section€describes€the€applicability€ofÏlandfills€to€the€various€NSR€requirements€and€explains€how€a€landfill€which€takes€steps€to€reduceÏthe€release€of€certain€gases€may€qualify€for€an€NSR€exclusion€as€a€pollution€control€project.€€It€isÏimportant€to€note€that€a€landfill€should€be€evaluated€for€its€applicability€to€NSR€independentlyÏfrom€its€applicability€to€the€relevant€NSPS€and€Emission€Guidelines.Ð @-(1 Ðà  àCompliance€with€the€MSW€Landfills€Emission€Guidelines€will€require€the€collection€andÏreduction€of€NMOC€emissions€from€larger€existing€MSW€landfills.€€The€reduction€of€NMOCÏemissions€generally€will€beÔ#†XB[XX‚XB[9#Ô€accomplished€through€the€destruction€of€NMOC€using€a€combustionÐ tÄ Ðdevice.€€This€device€may€or€may€not€include€some€type€of€energy€recovery.€€Concurrent€with€theÏcontrol€of€NMOC,€these€combustion€devices€generate€emissions€of€other€pollutants,€such€asÏnitrogen€oxides€(NOòòxóó),€sulfur€dioxide€(SOòò2óó),€and€carbon€monoxide€(CO).€€(Typically,€emissionsÐ š ê  Ðof€SOòò2óó€are€minimal€from€controlled€MSW€landfills€and€would€rarely€trigger€any€action.)€€TheseÐ ü L  Ðconcurrent€emission€increases€may€trigger€NSR€regulatory€requirements€under€PartsC€or€D€ofÏTitleI€of€the€Act.€€ÌÌÔ  Ôò òOverview€of€the€NSR€ProgramÔ MÔó óÐ „Ô  ÐÌÔ‡‚XB[XXXB[Ôà  àThe€NSR€program€requires€a€preconstruction€review€for€any€major€new€source€or€majorÐ H˜ Ðmodification.€€The€type€of€preconstruction€review€required€generally€depends€upon€theÏattainment€status€of€the€area€in€which€a€source€will€construct€or€modify.€€In€an€area€designated€asÏattainment€or€unclassifiable€for€a€particular€criteria€pollutant,€the€requirements€under€part€C€ofÏtitle€I€of€the€Act,€(prevention€of€significant€deterioration€(PSD)€of€air€quality)€will€apply€if€theÏsource€is€major€for€any€regulated€pollutant.€€In€a€nonattainment€area,€the€requirements€under€partÏD€of€title€I€of€the€Act€(nonattainment€NSR)€will€apply€if€the€source€is€major€specifically€for€theÏnonattainment€pollutant.Ô#†XB[XX‚XB[¢#ÔÐ öF& ÐÔ‡‚XB[XXXB[Ôà  àRegardless€of€the€area€designation,€a€source€that€does€not€emit€major€amounts€of€anyÐ X ¨( Ðpollutant€must€undergo€review€in€accordance€with€a€Stateððs€minor€source€permit€program.€€If,Ïhowever,€an€existing€minor€source€expands€in€such€a€way€that€the€expansion€in€itself€would€beÏconsidered€major,€then€the€expansion€is€regarded€as€a€major€source€and€will€be€required€toÏundergo€either€PSD€or€nonattainment€NSR€according€to€the€applicable€area€designation.€€TablesÏE„1€and€E„2€will€be€helpful€in€understanding€how€the€various€NSR€requirements€apply€to€specificÏpollutants.€€It€is€not€EPAððs€intent€that€this€appendix€provide€a€complete€description€of€theÏapplicable€NSR€programs.€€Instead,€the€reader€should€refer€to€the€documents€listed€in€theÏReferences€section€to€gain€a€better€understanding€of€these€NSR€programs€and€when€one€mightÏapply€to€the€source€of€interest.Ð Ê,(: Ðà  àA€MSW€landfill€located€in€an€attainment€area€is€considered€to€be€a€major€PSD€source€if€itÏhas€the€potential€to€emit€250€tpy€or€more€of€any€regulated€pollutant€(e.g.,€VOC,€NOx€or€CO).€€Ô#†XB[XX‚XB[Í#ÔIfÐ b Ðan€existing€major€MSW€landfill€is€modified,€a€PSD€review€is€required€if€the€potential€emissionÏincrease€from€the€modification€is€greater€than€the€significance€level€established€for€that€pollutantÏ(for€example,€40tpy€of€NOòòxóó€in€an€attainment€area).€€Ô‡‚XB[XXXB[ÔOnce€considered€major,€other€pollutantÐ 8 ˆ Ðemissions€are€also€subject€to€review€if€the€regulatory€significance€level€for€that€pollutant€will€beÏexceeded.€€Ô#†XB[XX‚XB[#Ô(See€Table€E„1.)Ð ü L  Ðà  àIf€PSD€is€triggered,€the€facility€must€complete€a€review€for€each€pollutant€for€whichÏemissions€increase€by€more€than€its€significance€level.€€The€review€includes€a€control€technologyÏreview€and€an€analysis€of€the€air€quality€impacts€of€the€new€or€modified€source.€€The€requiredÏcontrol€level€for€sources€in€attainment€areas€is€best€available€control€technology€(BACT).€€ReferÏto€reference1€for€a€discussion€of€this€term.€€As€part€of€the€air€quality€analysis,€the€facility€mustÏalso€demonstrate€that€the€proposed€activity€will€not€cause€or€contribute€to€a€violation€of€anyÏnational€ambient€air€quality€standard€(NAAQS)€or€PSD€increment€(in€attainment€areas),€orÏadversely€impact€an€air€quality€related€value€(AQRV)€in€a€Class€I€area.€€To€demonstrate€that€theseÏvalues€are€not€exceeded,€the€facility€may€have€to€conduct€some€emission€modelling.ÌÔ‡‚XB[XXXB[Ôà  àIn€a€nonattainment€area,€major€source€status€occurs€when€a€MSW€landfill€would€releaseÐ Ð   Ðat€least€100€tpy€of€the€pollutant€for€which€the€area€is€designated€nonattainment.€€Table€E„2Ïsummarizes€the€emissions€thresholds€for€relevant€pollutants€when€determining€whether€anÏexpansion€to€an€existing€landfill€will€be€subject€to€nonattainment€NSR.€Ô#†XB[XX‚XB[ê#Ô€Any€increase€inÐ öF& Ðemissions€of€a€nonattainment€pollutant€for€which€the€new€source€is€major,€or€any€significantÏincrease€of€the€nonattainment€pollutant€from€an€existing€major€source€of€the€nonattainmentÏpollutant€must€control€to€the€lowest€achievable€emission€rate€(LAER)€and€must€be€offset€byÏemission€decreases€from€some€other€source.ÌÔ‡‚XB[XXXB[Ôà  àNon„major€(minor)€landfills€can€also€trigger€either€PSD€or€nonattainment€NSR.€€That€is,Ð à%0!0 Ðwhen€an€existing€landfill€would€expand€to€such€extent€that€the€amount€of€any€new€pollutantÏreleased€would€equal€or€exceed€the€applicable€major€source€threshold,€then€the€expansion€itselfÏwould€be€treated€as€a€major€source.€€(See€Tables€E„1€and€E„2.)€€Ô#†XB[XX‚XB[#ÔFor€example,€in€an€attainmentÐ *V%6 Ðarea,€a€modification€to€a€minor€source€would€need€to€increase€potential€emissions€of€anyÏpollutant€by€at€least€250tpy€before€PSD€is€triggered.€€TablesE„1€and€E„2€summarize€the€NOòòxóó,Ð Ê,(: ÐCO,€VOC,€and€NMOC€increases€that€constitute€a€major€modification€in€attainment€andÏnonattainment€areas.€€The€tables€present€NOòòxóó€and€CO€because€these€are€the€pollutants€most€likelyÐ b Ðto€increase€significantly€when€combustion€devices€are€installed€to€reduce€NMOC€emissions€fromÏlandfills.€€(However,€it€should€be€noted€that€emissions€of€VOC,€NMOC,€SOòò2óó,€and€particulateÐ Ö& Ðmatter€must€also€be€assessed€in€determining€whether€a€landfill€or€a€modification€to€a€landfill€isÏmajor.)€€Refer€to€references€1€and€2€for€a€more€complete€discussion€of€how€to€determine€whetherÏNSR€is€triggered.€€Reference€2,€an€EPA€memorandum€on€classification€of€landfill€emissions€forÏNSR€purposes,€is€included€in€this€appendix.Ìà  àThere€is€an€exclusion€under€NSR€that€may€be€available€to€an€existing€landfill€that€wouldÏotherwise€trigger€NSR.€€This€exclusion€applies€to€existing€sources€undergoing€a€physical€orÏoperational€change€for€the€primary€purpose€of€reducing€one€or€more€air€pollutants€subject€toÏregulation€under€the€Act€(i.e.,€a€pollution€control€project),€even€though€some€increase€of€anotherÏair€pollutant€may€occur.€€A€pollution€control€project€(PCP)€must€be,€on€balance,€"environmentallyÏbeneficial"€to€be€eligible€for€the€exclusion.€€While€the€source€would€still€be€required€to€goÏthrough€a€minor€NSR€process,€an€eligible€source€would€not€be€required€to€conduct€a€BACT€orÏLAER€(control€device)€evaluation.Ìà  àThe€following€section€discusses€this€potential€exclusion€from€NSR;€the€exclusion€isÏavailable€only€to€eligible€existing€landfills€installing€gas€collection€and€control€systems.€€€SeveralÏresources€are€available€for€assisting€in€emission€estimation€and€the€determination€of€the€potentialÏemission€increases,òò2,3,4,5óó€and€are€listed€in€the€references€section.€Ð öF& ÐÌÔ  Ôò òThe€Pollution€Control€Project€(PCP)€Exclusionó óÔ ò(ÔÐ º! * ÐÌà  àThe€following€information€is€taken€largely€from€EPA's€July€1,€1994€guidanceÏmemorandum€(attached)€entitled,€"Pollution€Control€Projects€and€New€Source€Review€(NSR)ÏApplicability."òò6óó€€Nothing€in€this€section€is€intended€to€override€any€statement€made€in€thatÐ B'’"2 Ðmemorandum;€the€memorandum€remains€the€definitive€guidance€for€this€exclusion.€€Ìà  àFor€several€years,€EPA€has€had€a€policy€of€excluding€certain€types€of€PCPs€from€the€NSRÏrequirements€on€a€case„by„case€basis.€€The€exclusion€allows€states€to€exempt€a€PCP€from€majorÏNSR€if,€as€stated€above,€the€PCP€is,€on€balance,€"environmentally€beneficial."€€€The€guidanceÐ  Ê,(: ÐÔ‡¼5¼XXB[ÔÔ‡^¼B´¼¼¼5ÔÓ€Óà@  ìàTable€E„1.€€Attainment€Area€(PSD)€Major€Modification€ˆÐ ° Ðà@µµìàLevels€for€NOòòxóó,€CO,€VOC,€and€Landfill€NMOC€EmissionsÔ#†^XG)X¼^¼B´,#ÔÔ#†XB[XX^XG)$,#ԈР¾ ÐÌÔ*qƒ‰Š ddd Xdd Xdd X°(#°(#qÔÔ,<< ÔÔ,f <<ÕÔÔ,d <<ÕÔÔ+  ÔÐ /€l" ¸ €€‚l‚ƒƒ„„/ÐPollutantÔÐÿôD$tÔaÔ0$tôDÔÐ 7€l*$tl „„7ÐModifications€to€an€Existing€MinorÏSource€are€Considered€Major€ifÏEmission€Increases€Equal€or€ExceedÏ(in€tpy)Ð 7€l*è 8"l „„7ÐModifications€to€an€Existing€MajorÏSource€are€Considered€Major€ifÏEmission€Increases€Exceed€(in€tpy)Ð O€ml>*ü L " l  l € €‚L‚„„OÐNOÔ0P   pÔxÔÐÿ pP  ÔÌCOÌVOCÌNMOCÐ 2€ml!ä4 ml „„2Ð250ˆÌ250ˆÌ250ˆÌ250ˆÐ 2€ml!ä4 ml „„2Ð40ˆÌ100ˆÌ40ˆÌ50ˆÐ1'%ä4  L0   ml 1ÐÌÔÐÿ¼ ì< ÔaÔ0ì< ¼ ÔThis€table€presents€only€NOÔ0l ì< ÔxÔÐÿì< l Ô,€CO,€VOC,€and€NMOC.€€The€NSR€prevention€ofÌ€significant€deteriorations€(PSD)€rules€also€contain€levels€for€SOÔ0X Ø( Ô2ÔÐÿØ( X Ô€and€PM/PM10.ÌÌÔ‡¼5¼XXB[ÔÔ‡^¼B´¼¼¼5Ôà@¡ ¡ ìàTable€E„2.€€Nonattainment€Area€Major€Modification€ˆÐ ° Ðà@ ìàLevels€for€NOòòxóó,€CO,€and€VOC€EmissionsÔ#†^XG)X¼^¼B´#2#ÔÔ#†XB[XX^XG)B2#ԈР¾ ÐÌÔ*qƒ‹‘ dd<< f <<Õd <<Չа(#°(#qÔÔ,Ž<< ÔÔ,Z <<ÕÔÔ, <<¥ÔÔ+  ÔÐ /€l" ¸ €€‚l‚ƒƒ„„/ÐPollutantÔÐÿôD$tÔaÔ0$tôDÔ€andÏNonattainmentÏArea€StatusÐ 7€l*üL!"l „„7ÐModifications€to€an€Existing€MinorÏSource€are€Considered€Major€ifÏEmission€Increases€Equal€or€Exceed:Ï(in€tpy)Ð 7€l*è8%"l „„7ÐModifications€to€an€ExistingÏMajor€Source€are€ConsideredÏMajor€if€Emission€IncreasesÏExceed:€(in€tpy)ÔÐÿ¸è8ÔbÔ0è8¸ÔÐ S€mF*è8)" l  l €5€‚L‚ƒƒ„„……SÐNOÔ0P  pÔxÔÐÿ pP Ô€and€VOCÐ F<$ p* L 5 m €É€‚<‚ƒƒ„„FЀ„€MarginalÌ€„€ModerateÌ€„€SeriousÌ€„€SevereÌ€„€ExtremeÐ  øH/ „„Ð100ˆÌ100ˆÌ50ˆÌ25ˆÌ10ˆÐ  øH4 „„Ð40€ˆÌ40€ˆÌ25ÔÐÿð@ pÔcÔ0 pð@ÔˆÌ25ÔÐÿÜ, \ÔcÔ0 \Ü,ÔˆÌ0€ˆÐ =€m0øH9 < É €5€‚L‚ƒƒ„„……=ÐCOà D àà œ àÐ I€l8$0!€: L 5 m €>€‚<‚„„IЀ„€ModerateÌ€„€SeriousÐ 2€l!D#”<l „„2Ð100ˆÌ50ˆÐ 2€l!D#”>l „„2Ð100€ˆÌ50€ˆÐ1'%D#”@ <0 >  l 1ÐÌÔÐÿ%l L%œ ÔaÔ0L%œ %l ÔThis€table€presents€only€NOÔ0|%Ì L%œ ÔxÔÐÿL%œ |%Ì Ô,€VOC,€and€CO.€€The€NSR€rules€also€contain€levels€Ì€€for€SOÔ0h&¸!8&ˆ!Ô2ÔÐÿ8&ˆ!h&¸!Ô€and€PM/PM10.€€The€NSR€rules€in€nonattainment€areas€apply€only€to€Ì€€criteria€pollutants,€so€do€not€include€levels€for€landfill€gas€NMOC.ÌÔÐÿà'0#(`#ÔbÔ0(`#à'0#ÔThe€source€must€be€a€major€source€of€the€particular€criteria€pollutant€which€increasesÌ€€significantly.ÌÔÐÿ¸)%è)8%ÔcÔ0è)8%¸)%ÔApplies€to€contemporaneous€net€emission€increases€over€a€5„year€period.Ð  è)8%F ÐÓ€Ómemorandum€states€that€"unless€information€regarding€a€specific€case€indicates€otherwise,"€Ïprojects€such€as€the€addition€of€combustion€devices€to€comply€with€this€rule,€"can€be€assumed,€byÏtheir€nature,€to€be€environmentally€beneficial."€€€It€should€be€noted€that€this€exemption€is€still€aÏcase„by„case€determination;€the€deciding€authority€for€such€an€exemption€is€the€state.€ÏNevertheless,€even€though€a€landfill€may€avoid€NSR€because€it€qualifies€for€the€PCP€exclusion,Ïany€resulting€emission€increase€could€change€the€source's€status€for€future€applicability€to€NSRÏwhen€additional€changes€are€proposed.Ìà  àThe€guidance€provides€additional€safeguards€for€facilities€that€pass€the€"environmentallyÏbeneficial"€test.€€No€PCP€can€"cause€or€contribute"€to€a€violation€of€a€NAAQS,€or€a€PSDÏincrement,€or€adversely€impact€an€AQRV€in€a€classI€area.€€(See€reference1€for€a€discussion€ofÏthese€values.)Ìà  àIn€addition€to€ensuring€that€the€project€will€not€cause€any€violations€of€a€NAAQS,€PSDÏincrement,€or€AQRV,€the€applicant€must€demonstrate€that€the€increase€in€collateral€emissions€isÏminimized.€€Minimization€does€òònotóó€mean€that€the€permitting€agency€should€require€a€fullÐ ªú Ð"BACT„type"€review€for„„or€prescribe€add„on€controls€for„„collateral€emission€increases.€€It€isÏalso€not€intended€to€impact€the€selection€of€the€control€device€used€to€meet€the€NSPS€orÏEmission€Guidelines.€€Rather,€it€is€intended€to€ensure€that€whatever€device€is€selected€to€complyÏwith€the€NSPS€or€Emission€Guidelines€is€operated€in€such€a€manner€as€to€minimize€any€collateralÏemission€increase.Ìà  àA€landfill€owner€or€operator€wishing€to€apply€for€the€PCP€exclusion€must€obtain€aÏdetermination€from€the€applicable€state€that€the€project€qualifies€for€this€exemption.€€ThisÏincludes€a€requirement€for€a€public€review€of€the€proposed€exemption€(minor€NSR,€stateÏapplicability€determination,€or€similar€process).€€As€part€of€this€approval,€the€state€may,€in€someÏcases,€require€some€modelling€to€be€conducted€to€demonstrate€that€none€of€the€values€discussedÏin€the€previous€paragraph€are€violated.€€Any€project€excluded€from€major€NSR€under€thisÏexemption€must€still€comply€with€all€other€applicable€requirements€under€the€Act€(includingÏminor€source€permitting€requirements)€and€under€the€state€Implementation€Plan€(SIP).€€In€theÏcase€of€nonattainment€areas,€the€state€or€the€source€must€provide€offsetting€emission€reductionsÏâ âfor€any€significant€increase€in€a€nonattainment€pollutant€from€the€PCP.€€Under€the€PCP€guidance,Ð h+¸&8 Ða€one„to„one€offset€ratio€is€considered€sufficient€for€a€PCP;€however,€states€have€discretion€toÏrequire€offset€ratios€greater€than€one„to„one.Ìâ âÌÔ  Ôò òPSD€Ô& & ÔSignificance€Level€for€NMOCÔ lFÔó óÐ Ö& ÐÌà  àÔ'&Ö€FÔThe€MSW€Landfills€NSPS€and€Emission€Guidelines€established€"MSW€landfillÏemissions"€as€a€new€classification€of€pollutants€subject€to€regulation€under€the€Act.€€ConcurrentÏwith€promulgating€the€NSPS€and€Emission€Guidelines,€EPA€established€a€PSD€significance€levelÏof€50tpy,€measured€as€NMOC.€€Therefore,€PSD€review€requirements€now€apply€to€existingÏMSW€landfill€major€sources€in€attainment€areas€that€undergo€a€modification€resulting€inÏincreases€in€landfill€gas€emissions€greater€than€the€50tpy€NMOC€significance€level.€€This€levelÏroughly€corresponds€to€a€VOC€emission€rate€of€40tpy,€the€PSD€significance€level€for€VOC.Ìà  àModified€landfills€below€the€2.5million€Mg€or€2.5million€mòò3óó€design€capacity€exemption,Ð H˜ Ðwhich€are€not€required€by€the€Emission€Guidelines€to€install€controls,€may€exceed€the€PSDÏsignificance€level€for€NMOC.€€In€this€case,€the€state€will€need€to€determine€if€controls€should€beÏinstalled€for€purposes€of€PSD€compliance.€€In€addition,€NSR€will€be€required€if€a€modification€ofÏan€existing€landfill,€which€is€a€major€source€of€VOC€and€is€located€in€an€ozone€nonattainmentÏarea,€increases€VOC€emissions€by€more€than€the€levels€shown€in€TableE„2.€€ÌÌò òReferencesó óÐ öF& ÐÌÓ€Ó1.à0  àOffice€of€Air€Quality€Planning€and€Standards.€€New€Source€Review€Workshop€Manual,Ð º! * ÐPrevention€of€Significant€Deterioration€and€Nonattainment€Area€Permitting.€€Draft.€€U.S.ÏEnvironmental€Protection€Agency.€€Research€Triangle€Park,€North€Carolina.€€OctoberÏ1990€Draft.Ð (#(# ÐÌ2.à0  àMemorandum.€€Seitz,€John€S.,€EPA€Office€of€Air€Quality€Planning€and€Standards€to€EPAÐ V&¦!/ ÐRegionsI€through€X€Air€Division€Directors.€€Classification€of€Emissions€from€LandfillsÏfor€NSR€Applicability€Purposes.€€October€21,€1994.Ð (#(# ÐÌ3.à0  àAir€and€Energy€Engineering€Research€Laboratory.€€Methodology€for€QuantifyingÐ *V%3 ÐPollution€Prevention€Benefits€from€Landfill€Gas€Control€and€Utilization.€€U.S.ÏEnvironmental€Protection€Agency.€€Research€Triangle€Park,€North€Carolina.€ÏEPA-600/R-95-089.€€July€1995.ÐÊ,(6(#(# Ї4.à0  àAir€and€Energy€Engineering€Research€Laboratory.€€Landfill€Gas€Energy€UtilizationÐ ° ÐExperience:€€Discussion€of€Technical€and€Non„Technical€Issues,€Solutions,€and€Trends.€ÏU.S.Environmental€Protection€Agency.€€Research€Triangle€Park,€North€Carolina.€ÏEPA-600/R-95-035.€€March€1995.Ð (#(# ÐÌ5.à0  àOffice€of€Air€Quality€Planning€and€Standards.€€Compilation€of€Air€Pollutant€EmissionÐ L œ ÐFactors.€€U.S.Environmental€Protection€Agency.€€Research€Triangle€Park,€NorthÏCarolina.€€AP„42.€€January€1995€(fifth€edition).€€Section€2.4.Ð (#(# ÐÌ6.à0  àMemorandum.€€Seitz,€John€S.,€EPA€Office€of€Air€Quality€Planning€and€Standards,€toÐ ü L  ÐEPA€RegionsI€through€X€Air€Division€Directors.€€Pollution€Control€Projects€and€NewÏSource€Review€(NSR)€Applicability.€€July€1,€1994.Ð (#(# ÐÌÐ  ¬ü  ÐÓ€ÓÔ€pX;¢XXXB[ÔÑTRY3Ø'3Ø' 3Ø'&Avery 5164 Shippingÿ3Ø'TÑÌÌÓ€Óà@*ìàJuly€1,€1994ˆÌÌÌòòMEMORANDUMóóÐ ` ° ÐÌSUBJECT:à0 ` àPollution€Control€Projects€and€New€SourceÐð @ ` (#` (# Ðà0  àà0` (#(#àReview€(NSR)€ApplicabilityÐ ` (#` (# ÐÌFROM:à ` àJohn€S.€Seitz,€DirectorÐ H ˜  Ðà  àà ` àOffice€of€Air€Quality€Planning€and€Standards€(MD„10)ÌÌTO:à  àà ` àDirector,€Air,€Pesticides€and€ToxicsÐ  ð  Ѐ€à  àà ` à€€Management€Division,€Regions€I€and€IVÐ h¸  Ðà  àà ` àDirector,€Air€and€Waste€Management€Division,€Ì€€à  àà ` à€€Region€IIÐ øH  Ðà  àà ` àDirector,€Air,€Radiation€and€Toxics€Division,€Ì€€à  àà ` à€€Region€IIIÐ ˆØ Ðà  àà ` àDirector,€Air€and€Radiation€Division,€Ì€€à  àà ` à€€Region€VÐ h Ðà  àà ` àDirector,€Air,€Pesticides€and€Toxics€Division,Ì€€à  àà ` à€€Region€VIÐ ¨ø Ðà  àà ` àDirector,€Air€and€Toxics€Division,€Ì€€à  àà ` à€€Regions€VII,€VIII,€IX€and€XÐ 8ˆ ÐÌÌà  àThis€memorandum€and€attachment€address€issues€involving€theÏEnvironmental€Protection€Agency's€(EPA's)€NSR€rules€and€guidanceÏconcerning€the€exclusion€from€major€NSR€of€pollution€controlÏprojects€at€existing€sources.€€The€attachment€provides€a€fullÏdiscussion€of€the€issues€and€this€policy,€including€illustrativeÏexamples.ÌÌà  àFor€several€years,€EPA€has€had€a€policy€of€excluding€certainÏpollution€control€projects€from€the€NSR€requirements€of€parts€CÏand€D€of€title€I€of€the€Clean€Air€Act€(Act)€on€a€case„by„caseÏbasis.€€In€1992,€EPA€adopted€an€explicit€pollution€controlÏproject€exclusion€for€electric€utility€generating€units€[seeÏ57FR€32314€(the€"WEPCO€rule"€or€the€"WEPCO€rulemaking")].€€AtÏthe€time,€EPA€indicated€that€it€would,€in€a€subsequentÏrulemaking,€consider€adopting€a€formal€pollution€control€projectÏexclusion€for€other€source€categories€[see€57€FR€32332].€€In€theÏinterim,€EPA€stated€that€individual€pollution€control€projectsÏinvolving€source€categories€other€than€utilities€could€continueÏto€be€excluded€from€NSR€by€permitting€authorities€on€a€case„by„¼case€basis€[see€57€FR€at€32320].€€At€this€time,€EPA€expects€toÏcomplete€a€rulemaking€on€a€pollution€control€project€exclusion€Ïfor€other€source€categories€in€early€1996.€€This€memorandum€andÏattachment€provide€interim€guidance€for€permitting€authorities€onÏthe€approvability€of€these€projects€pending€EPA's€final€action€onÏa€formal€regulatory€exclusion.ñÑñ€€ñÑññÒñ€€ñÒññÐñÐ P- (5 ÐÑTRY$3Ø'Y3Ø'3Ø' Letter 3Ø'&Avery 5164 ShippingTÑà  àñÐñThe€attachment€to€this€memorandumÐ P- (5 Ðoutlines€in€greater€detail€the€type€of€projects€that€may€qualifyÏfor€a€conditional€exclusion€from€NSR€as€a€pollution€controlÏproject,€the€safeguards€that€are€to€be€met,€and€the€proceduralÏsteps€that€permitting€authorities€should€follow€in€issuing€anÏexclusion.€€Projects€that€do€not€meet€these€safeguards€andÏprocedural€steps€do€not€qualify€for€an€exclusion€from€NSR€underÏthis€policy.€€Pollution€control€projects€potentially€eligible€forÏan€exclusion€(provided€all€applicable€safeguards€are€met)€includeÏthe€installation€of€conventional€or€innovative€emissions€controlÏequipment€and€projects€undertaken€to€accommodate€switching€to€anÏinherently€less„polluting€fuel,€such€as€natural€gas.€€Under€thisÏguidance,€States€may€also€exclude€as€pollution€control€projectsÏsome€material€and€process€changes€(e.g.,€the€switch€to€a€lessÏpolluting€coating,€solvent,€or€refrigerant)€and€some€other€typesÏof€pollution€prevention€projects€undertaken€to€reduce€emissionsÏof€air€pollutants€subject€to€regulation€under€the€Act.€€ÌÌà  àThe€replacement€of€an€existing€emissions€unit€with€a€newerÏor€different€one€(albeit€more€efficient€and€less€polluting)€orÏthe€reconstruction€of€an€existing€emissions€unit€does€not€qualifyÏas€a€pollution€control€project.€€Furthermore,€this€guidance€onlyÏapplies€to€physical€or€operational€changes€whose€primary€functionÏis€the€reduction€of€air€pollutants€subject€to€regulation€underÏthe€Act€at€existing€major€sources.€€This€policy€does€not€apply€toÏair€pollution€controls€and€emissions€associated€with€a€proposedÏnew€source.€€Similarly,€the€fabrication,€manufacture€orÏproduction€of€pollution€control/prevention€equipment€andÏinherently€less„polluting€fuels€or€raw€materials€are€notÏpollution€control€projects€under€this€policy€(e.g.,€a€physical€orÏoperational€change€for€the€purpose€of€producing€reformulatedÏgasoline€at€a€refinery€is€not€a€pollution€control€project).ÌÌà  àIt€is€EPA's€experience€that€many€bona€fide€pollution€controlÏprojects€are€not€subject€to€major€NSR€requirements€for€the€simpleÏreason€that€they€result€in€a€reduction€in€annual€emissions€at€theÏsource.€€In€this€way,€these€pollution€control€projects€areÏoutside€major€NSR€coverage€in€accordance€with€the€general€rulesÏfor€determining€applicability€of€NSR€to€modifications€at€existingÏsources.€€However,€some€pollution€control€projects€could€resultÏin€significant€potential€or€actual€increases€of€some€pollutants.€ÌThese€latter€projects€comprise€the€subcategory€of€pollutionÏcontrol€projects€that€can€benefit€from€this€guidance.€ÌÌà  àA€pollution€control€project€must€be,€on€balance,Ï"environmentally€beneficial"€to€be€eligible€for€an€exclusion.€ÏFurther,€an€environmentally„beneficial€pollution€control€projectÏmay€be€excluded€from€otherwise€applicable€major€NSR€requirementsÏonly€under€conditions€that€ensure€that€the€project€will€not€causeÏor€contribute€to€a€violation€of€a€national€ambient€air€qualityÏstandard€(NAAQS),€prevention€of€significant€deterioration€(PSD)Ïincrement,€or€adversely€affect€visibility€or€other€air€qualityÏrelated€value€(AQRV).€€In€order€to€assure€that€air€qualityÏconcerns€with€these€projects€are€adequately€addressed,€there€areÐ P- (4 Ðtwo€substantive€and€two€procedural€safeguards€which€are€to€beÏfollowed€by€permitting€authorities€reviewing€projects€proposedÏfor€exclusion.ÌÌà  àFirst,€the€permitting€authority€must€determine€that€theÏproposed€pollution€control€project,€after€consideration€of€theÏreduction€in€the€targeted€pollutant€and€any€collateral€effects,Ïwill€be€environmentally€beneficial.€€Second,€nothing€in€thisÏguidance€authorizes€any€pollution€control€project€which€wouldÏcause€or€contribute€to€a€violation€of€a€NAAQS,€or€PSD€increment,Ïor€adversely€impact€an€AQRV€in€a€class€I€area.€€Consequently,€inÏaddition€to€this€"environmentally„beneficial"€standard,€theÏpermitting€authority€must€ensure€that€adverse€collateralÏenvironmental€impacts€from€the€project€are€identified,€minimized,Ïand,€where€appropriate,€mitigated.€€For€example,€the€source€orÏthe€State€must€secure€offsetting€reductions€in€the€case€of€aÏproject€which€will€result€in€a€significant€increase€in€aÏnonattainment€pollutant.€€Where€a€significant€collateral€increaseÏin€actual€emissions€is€expected€to€result€from€a€pollutionÏcontrol€project,€the€permitting€authority€must€also€assessÏwhether€the€increase€could€adversely€affect€any€national€ambientÏair€quality€standard,€PSD€increment,€or€class€I€AQRV.€€ÌÌà  àIn€addition€to€these€substantive€safeguards,€EPA€isÏspecifying€two€procedural€safeguards€which€are€to€be€followed.€ÏFirst,€since€the€exclusion€under€this€interim€guidance€is€onlyÏavailable€on€a€case„by„case€basis,€sources€seeking€exclusion€fromÏmajor€NSR€requirements€prior€to€the€forthcoming€EPA€rulemaking€onÏa€pollution€control€project€exclusion€must,€before€beginningÏconstruction,€obtain€a€determination€by€the€permitting€authorityÏthat€a€proposed€project€qualifies€for€an€exclusion€from€major€NSRÏrequirements€as€a€pollution€control€project.€€Second,€inÏconsidering€this€request,€the€permitting€authority€must€affordÏthe€public€an€opportunity€to€review€and€comment€on€the€source'sÏapplication€for€this€exclusion.€€It€is€also€important€to€noteÏthat€any€project€excluded€from€major€new€source€review€as€aÏpollution€control€project€must€still€comply€with€all€otherwiseÏapplicable€requirements€under€the€Act€and€the€StateÏimplementation€plan€(SIP),€including€minor€source€permitting.ÌÌ€€à  àThis€guidance€document€does€not€supersede€existing€FederalÐ ð#@( Ðor€State€regulations€or€approved€SIP's.€€The€policies€set€out€inÏthis€memorandum€and€attachment€are€intended€as€guidance€to€beÏapplied€only€prospectively€(including€those€projects€currentlyÏunder€evaluation€for€an€exclusion)€during€the€interim€periodÏuntil€EPA€takes€action€to€revise€its€NSR€rules,€and€do€notÏrepresent€final€Agency€action.€€This€policy€statement€is€not€ripeÏfor€judicial€review.€€Moreover,€it€is€not€intended,€nor€can€it€beÏrelied€upon,€to€create€any€rights€enforceable€by€any€party€inÏlitigation€with€the€United€States.€€Agency€officials€may€decideÏto€follow€the€guidance€provided€in€this€memorandum,€or€to€act€atÏvariance€with€the€guidance,€based€on€an€analysis€of€specificÏcircumstances.€€The€EPA€also€may€change€this€guidance€at€any€timeÐ P- (4 Ðwithout€public€notice.€€The€EPA€presently€intends€to€address€theÏmatters€discussed€in€this€document€in€a€forthcoming€NSRÏrulemaking€regarding€proposed€changes€to€the€program€resultingÏfrom€the€NSR€Reform€process€and€will€take€comment€on€theseÏmatters€as€part€of€that€rulemaking.ÌÌà  àAs€noted€above,€a€detailed€discussion€of€the€types€ofÏprojects€potentially€eligible€for€an€exclusion€from€major€NSR€asÏa€pollution€control€project,€as€well€as€the€safeguards€suchÏprojects€must€meet€to€qualify€for€the€exclusion,€is€contained€inÏthe€attachment€to€this€memorandum.€€The€Regional€Offices€shouldÏsend€this€memorandum€with€the€attachment€to€States€within€theirÏjurisdiction.€€Questions€concerning€specific€issues€and€casesÏshould€be€directed€to€the€appropriate€EPA€Regional€Office.€ÏRegional€Office€staff€may€contact€DavidSolomon,€Chief,€NewÏSource€Review€Section,€at€(919)541„5375,€if€they€have€anyÏquestions.ÌÌAttachmentÌÌcc:à  àAir€Branch€Chief,€Regions€I„XÐ P  Ðà  àNSR€Reform€Subcommittee€MembersÌÐ  à0 Ðà@””+ìàAttachmentˆÌÌÓ  ÓGUIDANCE€ON€EXCLUDING€POLLUTION€CONTROL€PROJECTSÌ€FROM€MAJOR€NEW€SOURCE€REVIEW€(NSR)ÌÓ  ÓÌà@XX+ìàI.€€PurposeˆÌÌà  àThe€Environmental€Protection€Agency€(EPA)€presently€expectsÏto€complete€a€rulemaking€on€an€exclusion€from€major€NSR€forÏpollution€control€projects€by€early1996.€€In€the€interim,Ïcertain€types€of€projects€(involving€source€categories€other€thanÏutilities)€may€qualify€on€a€case„by„case€basis€for€an€exclusionÏfrom€major€NSR€as€pollution€control€projects.€€Prior€to€EPA'sÏfinal€action€on€a€regulatory€exclusion,€this€attachment€providesÏinterim€guidance€for€permitting€authorities€on€the€types€ofÏprojects€that€may€qualify€on€a€case„by„case€basis€from€major€NSRÏas€pollution€control€projects,€including€the€substantive€andÏprocedural€safeguards€which€apply.€ÌÌà@hh)ìàII.€€BackgroundˆÌÌà  àThe€NSR€provisions€of€part€C€[prevention€of€significantÏdeterioration€(PSD)]€and€part€D€(nonattainment€requirements)€ofÏtitle€I€of€the€Clean€Air€Act€(Act)€apply€to€both€the€constructionÏof€major€new€sources€and€the€modification€of€existing€majorÏsources.ñ×ñ׃r×ñ×ññ×ñ׃g×ñ×ñÝ ƒqÿÿÝòòÚ  Ú1Ú  ÚóóÝ  Ý×  ×€€The€modification€provisions€of€the€NSR€programs€inÐ 8ˆ Ðparts€C€and€D€are€based€on€the€broad€definition€of€modificationÏin€section€111(a)(4)€of€the€Act.€€That€section€contemplates€aÏtwo„step€test€for€determining€whether€activities€at€an€existingÏmajor€facility€constitute€a€modification€subject€to€new€sourceÏrequirements.€€In€the€first€step,€the€reviewing€authorityÏdetermines€whether€a€physical€or€operational€change€will€occur.€ÏIn€the€second€step,€the€question€is€whether€the€physical€orÏoperational€change€will€result€in€any€increase€in€emissions€ofÏany€regulated€pollutant.ÌÌà  àThe€definition€of€physical€or€operational€change€in€Ìsection€111(a)(4)€could,€standing€alone,€encompass€the€mostÏmundane€activities€at€an€industrial€facility€(even€the€repair€orÏreplacement€of€a€single€leaky€pipe,€or€a€insignificant€change€inÏthe€way€that€pipe€is€utilized).€€However,€EPA€has€recognized€thatÏCongress€did€not€intend€to€make€every€activity€at€a€sourceÏsubject€to€new€source€requirements€under€parts€C€and€D.€€As€aÏresult,€EPA€has€by€regulation€limited€the€reach€of€theÏmodification€provisions€of€parts€C€and€D€to€only€majorÏmodifications.€€Under€NSR,€a€"major€modification"€is€generally€aÏphysical€change€or€change€in€the€method€of€operation€of€a€majorÏstationary€source€which€would€result€in€a€significant€netÐ h)¸$/ Ðemissions€increase€in€the€emissions€of€any€regulated€pollutantÏ[see,€e.g.,€40€CFR€52.21(b)(2)(i)].€€A€"net€emissions€increase"Ïis€defined€as€the€increase€in€"actual€emissions"€from€theÏparticular€physical€or€operational€change€together€with€any€otherÏcontemporaneous€increases€or€decreases€in€actual€emissions€[see,Ïe.g.,€40€CFR€52.21(b)(3)(i)].€€In€order€to€trigger€major€newÏsource€review,€the€net€emissions€increase€must€exceed€specifiedÏ"significance"€levels€[see,€e.g.,€40€CFR€52.21(b)(2)(i)€and€40ÏCFR€52.21(b)(23)].€€The€EPA€has€also€adopted€common„senseÏexclusions€from€the€"physical€or€operational€change"€component€ofÏthe€definition€of€"major€modification."€€For€example,€EPA'sÏregulations€contain€exclusions€for€routine€maintenance,€repair,Ïand€replacement;€for€certain€increases€in€the€hours€of€operationÏor€in€the€production€rate;€and€for€certain€types€of€fuel€switchesÏ[see,€e.g.,€40€CFR€52.21(b)(2)(iii)].ÌÌà  àIn€the€1992€"WEPCO"€rulemaking€[57€FR€32314],€EPA€amendedÏits€PSD€and€nonattainment€NSR€regulations€as€they€pertain€toÏutilities€by€adding€certain€pollution€control€projects€to€theÏlist€of€activities€excluded€from€the€definition€of€physical€orÏoperational€changes.€€In€taking€that€action,€EPA€stated€it€wasÏlargely€formalizing€an€existing€policy€under€which€it€had€beenÏexcluding€individual€pollution€control€projects€where€it€wasÏfound€that€the€project€"would€be€environmentally€beneficial,Ïtaking€into€account€ambient€air€quality"€[57€FR€at€32320;€seeÏalso€id.,€n.€15].ñ×ñ׃s×ñ×ññ×ñ׃o×ñ×ñÝ ƒqÿÿÝòòÚ  Ú2Ú  ÚóóÝ  Ý×  ×Ð 8ˆ ÐÌà  àThe€EPA€has€provided€exclusions€for€pollution€controlÏprojects€in€the€form€of€"no€action€assurances"€prior€to€ÌNovember€15,€1990€and€nonapplicability€determinations€based€onÏAct€changes€as€of€November€15,€1990€(1990€Amendments).€ÏGenerally,€these€exclusions€addressed€clean€coal€technologyÏprojects€and€fuel€switches€at€electric€utilities.€€ÌÌà  àBecause€the€WEPCO€rulemaking€was€directed€at€the€utilityÏindustry€which€faced€"massive€industry„wide€undertakings€ofÏpollution€control€projects"€to€comply€with€the€acid€rainÏprovisions€of€the€Act€[57€FR€32314],€EPA€limited€the€types€ofÏprojects€eligible€for€the€exclusion€to€add„on€controls€and€fuelÏswitches€at€utilities.€€Thus,€pollution€control€projects€underÏthe€WEPCO€rule€are€defined€as:ÌÌà8  àà8` Ð Ð àany€activity€or€project€undertaken€at€anÏexisting€electric€utility€steam€generatingÏunit€for€purposes€of€reducing€emissions€fromÏsuch€unit.€€Such€activities€or€projects€areÏòòlimited€toóó:Р(ð#.` x` x ÐÐ h)¸$/ Ðà8  àà8` Ð Ð à(A)€€The€installation€of€conventional€orÏinnovative€pollution€control€technology,Ïincluding€but€not€limited€to€advanced€flueÏgas€desulfurization,€sorbent€injection€forÏsulfur€dioxide€(SOòò2óó)€and€nitrogen€oxidesÐ Ð  Ð(NOòòxóó)€controls€and€electrostaticÐ ˜è Ðprecipitators;Ð ` x` x ÐÌà8  àà8` Ð Ð à(B)€€An€activity€or€project€to€accommodateÏswitching€to€a€fuel€which€is€less€pollutingÏthan€the€fuel€in€use€prior€to€the€activity€orÏproject€.€.€.€Ð ` x` x ÐÌ[40CFR51.165(a)(1)(xxv)€(emphasis€added)].ÌThe€definition€also€includes€certain€clean€coal€technologyÏdemonstration€projects.€€Id.ÌÌà  àThe€EPA€built€two€safeguards€into€the€exclusion€in€theÏrulemaking.€€First,€a€project€that€meets€the€definition€ofÏpollution€control€project€will€not€qualify€for€the€exclusionÏwhere€the€"reviewing€authority€determines€that€(the€proposedÏproject)€renders€the€unit€less€environmentally€beneficial€.€.€."Ï[see,€e.g.,€51.165(a)(1)(v)(C)(8)].€€In€the€WEPCO€rule,€EPA€didÏnot€provide€any€specific€definition€of€the€environmentally„Ïbeneficial€standard,€although€it€did€indicate€that€the€pollutionÏcontrol€project€provision€"provides€for€a€case„by„case€assessmentÏof€the€pollution€control€project's€net€emissions€and€overallÏimpact€on€the€environment"€[57€FR€32321].€€This€provision€isÏbuttressed€by€a€second€safeguard€that€directs€permittingÏauthorities€to€evaluate€the€air€quality€impacts€of€pollutionÏcontrol€projects€that€could„„through€collateral€emissionsÏincreases€or€changes€in€utilization€patterns„„adversely€impactÏlocal€air€quality€[see€57€FR€32322].€€This€provision€generallyÏauthorizes,€as€appropriate,€a€permitting€authority€to€requireÏmodelling€of€emissions€increases€associated€with€a€pollutionÏcontrol€project.€€Id.€€More€fundamentally,€it€explicitly€statesÏthat€no€pollution€control€project€under€any€circumstances€mayÏâ âcause€or€contribute€to€violation€of€a€national€ambient€airÐ ˜!è% Ðquality€standard€(NAAQS),€PSD€increment,€or€air€quality€relatedÏvalue€(AQRV)€in€a€class€I€area.€€Id.ñ×ñ׃t×ñ×ññ×ñ׃×ñ×ñÝ ƒqÿÿÝòòÚ  Ú3Ú  ÚóóÝ  Ý×  ×Ð xÈ Ðâ âÌà  àAs€noted,€the€WEPCO€rulemaking€was€expressly€limited€toÏexisting€electric€utility€steam€generating€units€[see,€e.g.,€40ÏCFR€51.165(a)(1)(v)(C)(8)€and€51.165(a)(1)(xx)].€€The€EPA€limitedÏthe€rulemaking€to€utilities€because€of€the€impending€acid€rainÏrequirements€under€title€IV€of€the€Act,€EPA's€extensiveÏexperience€with€new€source€applicability€issues€for€electricÏutilities,€the€general€similarity€of€equipment,€and€the€publicÏavailability€of€utility€operating€projections.€€The€EPA€indicatedÏit€would€consider€adopting€a€formal€NSR€pollution€control€projectÏexclusion€for€other€source€categories€as€part€of€a€separate€NSRÏrulemaking.€€The€rulemaking€in€question€is€now€expected€to€beÏfinalized€by€early€1996.€€On€the€other€hand,€the€WEPCO€rulemakingÏalso€noted€that€EPA's€existing€policy€was,€and€would€continue€toÏbe,€to€allow€permitting€authorities€to€exclude€pollution€controlÏprojects€in€other€source€categories€on€a€case„by„case€basis.€€ÌÌÓ  ÓIII.€€€Case„By„Case€Pollution€Control€Project€DeterminationsÌÓ  ÓÌà  àThe€following€sections€describe€the€type€of€projects€thatÏmay€be€considered€by€permitting€authorities€for€exclusion€fromÏmajor€NSR€as€pollution€control€projects€and€two€safeguards€thatÏpermitting€authorities€are€to€use€in€evaluating€such€projects„„¼the€environmentally„beneficial€test€and€an€air€quality€impactÏassessment.€€To€a€large€extent,€these€requirements€are€drawn€fromÏthe€WEPCO€rulemaking.€€However,€because€the€WEPCO€rule€wasÏdesigned€for€a€single€source€category,€electric€utilities,€itÏcannot€and€does€not€serve€as€a€complete€template€for€thisÏguidance.€€Therefore,€the€following€descriptions€expand€upon€theÏWEPCO€rule€in€the€scope€of€qualifying€projects€and€in€theÏspecific€elements€inherent€in€the€safeguards.€€These€changesÏreflect€the€far€more€complicated€task€of€evaluating€pollutionÐ xÈ! Ðcontrol€projects€at€a€wide€variety€of€sources€facing€a€myriad€ofÏFederal,€State,€and€local€clean€air€requirements.€€ÌÌà  àSince€the€safeguards€are€an€integral€component€of€theÏexclusion,€States€must€have€the€authority€to€impose€theÏsafeguards€in€approving€an€exclusion€from€major€NSR€under€thisÏpolicy.€€Thus,€State€or€local€permitting€authorities€in€order€toÏuse€this€policy€should€provide€statements€to€EPA€describing€andÏaffirming€the€basis€for€its€authority€to€impose€these€safeguardsÏabsent€major€NSR.€€Sources€that€obtain€exclusions€from€permittingÏauthorities€that€have€not€provided€this€affirmation€of€authorityÏare€at€risk€in€seeking€to€rely€on€the€exclusion€issued€by€theÏpermitting€agency,€because€EPA€may€subsequently€determine€thatÏthe€project€does€not€qualify€as€a€pollution€control€project€underÏthis€policy.ÌÌà  àA.€€Types€of€Projects€CoveredÌÌà0  à€€€€1.€€Add„On€Controls€and€Fuel€SwitchesÐ (#(# ÐÌà  àIn€the€WEPCO€rulemaking,€EPA€found€that€both€add„onÏemissions€control€projects€and€fuel€switches€to€less„pollutingÏfuels€could€be€considered€to€be€pollution€control€projects.€€ForÏthe€purposes€of€today's€guidance,€EPA€affirms€that€these€types€ofÏprojects€are€appropriate€candidates€for€a€case„by„case€exclusionÏas€well.€€These€types€of€projects€include:€€€€ÌÌà0  à„€€the€installation€of€conventional€and€advanced€flue€gas€€€€Ï€€€desulfurization€and€sorbent€injection€for€SOòò2óó;€Ðà(#(# ÐÌà0  à„€€electrostatic€precipitators,€baghouses,€high€efficiency€€€Ï€€€multiclones,€and€scrubbers€for€particulate€or€other€€€€€€Ð (#(# Ѐ€€€€€€€pollutants;ÌÌà0  à„€€flue€gas€recirculation,€low„NOòòxóó€burners,€selective€non„€€Ð@"(#(# Ѐ€€€€€€€catalytic€reduction€and€selective€catalytic€reduction€for€Ï€€€€€€€€NOòòxóó;€andÐ Ð $ ÐÌà0  à„€€regenerative€thermal€oxidizers€(RTO),€catalyticÐ (#(# Ѐ€€€€€€€oxidizers,€condensers,€thermal€incinerators,€flares€and€€€Ï€€€€€€€€carbon€adsorbers€for€volatile€organic€compounds€(VOC)Ìà  à€€€and€toxic€air€pollutants.€€€ÌÌà  àProjects€undertaken€to€accommodate€switching€to€anÏinherently€less„polluting€fuel€such€as€natural€gas€can€alsoÏqualify€for€the€exclusion.€€Any€activity€that€is€necessary€toÏaccommodate€switching€to€a€inherently€less„polluting€fuel€isÏconsidered€to€be€part€of€the€pollution€control€project.€€In€someÏinstances,€where€the€emissions€unit's€capability€would€otherwiseÏbe€impaired€as€a€result€of€the€fuel€switch,€this€may€involveÏcertain€necessary€changes€to€the€pollution€generating€equipmentÏ(e.g.,€boiler)€in€order€to€maintain€the€normal€operatingÏcapability€of€the€unit€at€the€time€of€the€project.Ð P- (4 Їà0  àà0` (#(#à2.à0¸ ` (#` (#àPollution€Prevention€Projectsа¸ (#¸ (# ÐÌà  àIt€is€EPA's€policy€to€promote€pollution€preventionÏapproaches€and€to€remove€regulatory€barriers€to€sources€seekingÏto€develop€and€implement€pollution€prevention€solutions€to€theÏextent€allowed€under€the€Act.€€For€this€reason,€permittingÏauthorities€may€also€apply€this€exclusion€to€switches€toÏinherently€less„polluting€raw€materials€and€processes€and€certainÏother€types€of€"pollution€prevention"€projects.ñ×ñ׃u×ñ×ññ×ñ׃•×ñ×ñÝ ƒqÿÿÝòòÚ  Ú4Ú  ÚóóÝ  Ý×  ×€€For€instance,Ð ð @ Ðmany€VOC€users€will€be€making€switches€to€water„based€or€powder„¼paint€application€systems€as€a€strategy€for€meeting€reasonablyÏavailable€control€technology€(RACT)€or€switching€to€a€non„toxicÏVOC€to€comply€with€maximum€achievable€control€technology€(MACT)Ïrequirements.€ÌÌà  àAccordingly,€under€today's€guidance,€permitting€authoritiesÏmay€consider€excluding€raw€material€substitutions,€processÏchanges€and€other€pollution€prevention€strategies€where€theÏpollution€control€aspects€of€the€project€are€clearly€evident€andÏwill€result€in€substantial€emissions€reductions€per€unit€ofÏoutput€for€one€or€more€pollutants.€€In€judging€whether€aÏpollution€prevention€project€can€be€considered€for€exclusion€as€aÏpollution€control€project,€permitting€authorities€may€alsoÏconsider€as€a€relevant€factor€whether€a€project€is€beingÏundertaken€to€bring€a€source€into€compliance€with€a€MACT,€RACT,Ïor€other€Act€requirement.€€ÌÌà  àAlthough€EPA€is€supportive€of€pollution€control€andÏprevention€projects€and€strategies,€special€care€must€be€taken€inÏclassifying€a€project€as€a€pollution€control€project€and€inÏevaluating€a€project€under€a€pollution€control€project€exclusion.€ÏVirtually€every€modernization€or€upgrade€project€at€an€existingÏindustrial€facility€which€reduces€inputs€and€lowers€unit€costsÏhas€the€concurrent€effect€of€lowering€an€emissions€rate€per€unitÏof€fuel,€raw€material€or€output.€€Nevertheless,€it€is€clear€thatÏthese€major€capital€investments€in€industrial€equipment€are€theÏvery€types€of€projects€that€Congress€intended€to€address€in€theÏnew€source€modification€provisions€[see€òòWisconsin€Electric€PowerÐ ˜!è% ÐCo.€v.€Reillyóó,€893€F.2d€901,€907„10€(7th€Cir.€1990)€(rejectingÐ `"°& Ðcontention€that€utility€life€extension€project€was€not€a€physicalÐ (#x' Ðor€operational€change);€òòPuerto€Rican€Cement€Co.,€Inc.€v.€EPAóó,€889Ð ° ÐF.2d€292,€296„98€(1st€Cir.€1989)€(NSR€applies€to€modernizationÏproject€that€decreases€emissions€per€unit€of€output,€butÏincreases€economic€efficiency€such€that€utilization€may€increaseÏand€result€in€net€increase€in€actual€emissions)].€€Likewise,€theÏreplacement€of€an€existing€emissions€unit€with€a€newer€orÏdifferent€one€(albeit€more€efficient€and€less€polluting)€or€theÏreconstruction€of€an€existing€emissions€unit€would€not€qualify€asÏa€pollution€control€project.€€Adopting€a€policy€thatÏautomatically€excludes€from€NSR€any€project€that,€while€loweringÏoperating€costs€or€improving€performance,€coincidentally€lowers€aÏunit's€emissions€rate,€would€improperly€exclude€almost€allÏmodifications€to€existing€emissions€units,€including€those€thatÏare€likely€to€increase€utilization€and€therefore€result€inÏoverall€higher€levels€of€emissions.ÌÌà  àIn€order€to€limit€this€exclusion€to€the€subset€of€pollutionÏprevention€projects€that€will€in€fact€lower€annual€emissions€at€aÏsource,€permitting€authorities€should€not€exclude€as€pollutionÏcontrol€projects€any€pollution€prevention€project€that€can€beÏreasonably€expected€to€result€in€an€increase€in€the€utilizationÏof€the€affected€emissions€unit(s).€€For€example,€projects€whichÏsignificantly€increase€capacity,€decrease€production€costs,€orÏimprove€product€marketability€can€be€expected€to€affectÏutilization€patterns.€€With€these€changes,€the€environment€may€orÏmay€not€see€a€reduction€in€overall€source€emissions;€it€dependsÏon€the€source's€operations€after€the€change,€which€cannot€beÏpredicted€with€any€certainty.ñ×ñ׃v×ñ×ññ×ñ׃™×ñ×ñÝ ƒqÿÿÝòòÚ  Ú5Ú  ÚóóÝ  Ý×  ×€€This€is€not€to€say€that€theseÐ È Ðtypes€of€projects€are€necessarily€subject€to€major€NSRÏrequirements,€only€that€they€should€not€be€excluded€as€pollutionÏcontrol€projects€under€this€guidance.€€The€EPA€may€considerÏdifferent€approaches€to€excluding€pollution€prevention€projectsÏfrom€major€NSR€requirements€in€the€upcoming€NSR€rulemaking.€ÏUnder€this€guidance,€however,€permitting€authorities€shouldÏcarefully€review€proposed€pollution€prevention€projects€toÏevaluate€whether€utilization€of€the€source€will€increase€as€aÏresult€of€the€project.ÌÌà  àFurthermore,€permitting€authorities€should€have€theÏauthority€to€monitor€utilization€of€an€affected€emissions€unit€orÏsource€for€a€reasonable€period€of€time€subsequent€to€the€projectÏto€verify€what€effect,€if€any,€the€project€has€on€utilization.€ÏIn€cases€where€the€project€has€clearly€caused€an€increase€inÏutilization,€the€permitting€authority€may€need€to€reevaluate€theÐ H&˜!+ Ðbasis€for€the€original€exclusion€to€verify€that€an€exclusion€isÏstill€appropriate€and€to€ensure€that€all€applicable€safeguardsÏare€being€met.ÌÌà  àB.€€SafeguardsÌÌà  àThe€following€safeguards€are€necessary€to€assure€thatÏprojects€being€considered€for€an€exclusion€qualify€asÏenvironmentally€beneficial€pollution€control€projects€and€do€notÏhave€air€quality€impacts€which€would€preclude€the€exclusion.€ÏConsequently,€a€project€that€does€not€meet€these€safeguards€doesÏnot€qualify€for€an€exclusion€under€this€policy.ÌÌà  à1.€€Environmentally„Beneficial€TestÌÌà  àProjects€that€meet€the€definition€of€a€pollution€controlÏproject€outlined€above€may€nonetheless€cause€collateral€emissionsÏincreases€or€have€other€adverse€impacts.€€For€instance,€a€largeÏVOC€incinerator,€while€substantially€eliminating€VOC€emissions,Ïmay€generate€sizeable€NOòòxóó€emissions€well€in€excess€ofÐ ˆØ Ðsignificance€levels.€€To€protect€against€these€sorts€of€problems,ÏEPA€in€the€WEPCO€rule€provided€for€an€assessment€of€the€overallÏenvironmental€impact€of€a€project€and€the€specific€impact,€ifÏany,€on€air€quality.€€The€EPA€believes€that€this€safeguard€isÏappropriate€in€this€policy€as€well.ÌÌà  àUnless€information€regarding€a€specific€case€indicatesÏotherwise,€the€types€of€pollution€control€projects€listed€inÏIII.A.€1.€above€can€be€presumed,€by€their€nature,€to€beÏenvironmentally€beneficial.€€This€presumption€arises€from€EPA'sÏexperience€that€historically€these€are€the€very€types€ofÏpollution€controls€applied€to€new€and€modified€emissions€units.€ÏThe€presumption€does€not€apply,€however,€where€there€is€reason€toÏbelieve€that€1)€the€controls€will€not€be€designed,€operated€orÏmaintained€in€a€manner€consistent€with€standard€and€reasonableÏpractices;€or€2)€collateral€emissions€increases€have€not€beenÏadequately€addressed€as€discussed€below.ÌÌà  àIn€making€a€determination€as€to€whether€a€project€isÏenvironmentally€beneficial,€the€permitting€authority€mustÏconsider€the€types€and€quantity€of€air€pollutants€emitted€beforeÏand€after€the€project,€as€well€as€other€relevant€environmentalÏfactors.€€€While€because€of€the€case„by„case€nature€of€projectsÏit€is€not€possible€to€list€all€factors€which€should€be€consideredÏin€any€particular€case,€several€concerns€can€be€noted.€ÌÌà  àFirst,€pollution€control€projects€which€result€in€anÏincrease€in€non„targeted€pollutants€should€be€reviewed€toÏdetermine€that€the€collateral€increase€has€been€minimized€andÏwill€not€result€in€environmental€harm.€€Minimization€here€doesÏnot€mean€that€the€permitting€agency€should€conduct€a€BACT„typeÏâ âreview€or€necessarily€prescribe€add„on€control€equipment€to€Ð ˆ,Ø'3 Ðtreat€the€collateral€increase.€€Rather,€minimization€means€that,Ïâ âwithin€the€physical€configuration€and€operational€standardsÏusually€associated€with€such€a€control€device€or€strategy,€theÏsource€has€taken€reasonable€measures€to€keep€any€collateralÏincrease€to€a€minimum.€€For€instance,€the€permitting€authorityÏcould€require€that€a€low„NOòòxóó€burner€project€be€subject€toÐ ˜è Ðtemperature€and€other€appropriate€combustion€standards€so€thatÏcarbon€monoxide€(CO)€emissions€are€kept€to€a€minimum,€but€wouldÏnot€review€the€project€for€a€CO€catalyst€or€other€add„on€typeÏoptions.€€In€addition,€a€State's€RACT€or€MACT€rule€may€haveÏexplicitly€considered€measures€for€minimizing€a€collateralÏincrease€for€a€class€or€category€of€pollution€control€projectsÏand€requires€a€standard€of€best€practices€to€minimize€such€Ïcollateral€increases.€€In€such€cases,€the€need€to€minimizeÏcollateral€increase€from€the€covered€class€or€category€ofÏpollution€control€projects€can€be€presumed€to€have€beenÏadequately€addressed€in€the€rule.ÌÌà  àIn€addition,€a€project€which€would€result€in€an€unacceptableÏincreased€risk€due€to€the€release€of€air€toxics€should€not€beÏconsidered€environmentally€beneficial.€€It€is€EPA's€experience,Ïhowever,€that€most€projects€undertaken€to€reduce€emissions,Ïespecially€add„on€controls€and€fuel€switches,€result€inÏconcurrent€reductions€in€air€toxics.€€The€EPA€expects€that€manyÏpollution€control€projects€seeking€an€exclusion€under€thisÏguidance€will€be€for€the€purpose€of€complying€with€MACTÏrequirements€for€reductions€in€air€toxics.€€Consequently,€unlessÏthere€is€reason€to€believe€otherwise,€permitting€agencies€mayÏpresume€that€such€projects€by€their€nature€will€result€in€reducedÏrisks€from€air€toxics.ÌÌà  à2.€€Additional€Air€Quality€Impacts€AssessmentsÌÌà  à(a)€€GeneralÌÌà  àNothing€in€the€Act€or€EPA's€implementing€regulations€wouldÏallow€a€permitting€authority€to€approve€a€pollution€controlÏproject€resulting€in€an€emissions€increase€that€would€cause€orÏcontribute€to€a€violation€of€a€NAAQS€or€PSD€increment,€orÏadversely€impact€visibility€or€other€AQRV€in€a€class€I€area€[see,Ïe.g.,€Act€sections110(a)(2)(C),€165,€169A(b),€173].€ÏAccordingly,€this€guidance€is€not€intended€to€allow€any€projectÏto€violate€any€of€these€air€quality€standards.Ì€Ìà  àAs€discussed€above,€it€is€possible€that€a€pollution€controlÏproject„„either€through€an€increase€in€an€emissions€rate€of€aÏcollateral€pollutant€or€through€a€change€in€utilization„„willÏcause€an€increase€in€actual€emissions,€which€in€turn€could€causeÏor€contribute€to€a€violation€of€a€NAAQS€or€increment€or€Ìadversely€impact€AQRV's.€€For€this€reason,€in€the€WEPCO€rule€theÏEPA€required€sources€to€address€whenever€1)€the€proposed€changeÏwould€result€in€a€significant€net€increase€in€actual€emissions€ofÏany€criteria€pollutant€over€levels€used€for€that€source€in€theÐ P- (4 Ðmost€recent€air€quality€impact€analysis;€and€2)€the€permittingÏauthority€has€reason€to€believe€that€such€an€increase€would€causeÏor€contribute€to€a€violation€of€a€NAAQS,€increment€or€visibilityÏlimitation.€€If€an€air€quality€impact€analysis€indicates€that€theÏincrease€in€emissions€will€cause€or€contribute€to€a€violation€ofÏany€ambient€standard,€PSD€increment,€or€AQRV,€the€pollutionÏcontrol€exclusion€does€not€apply.ÌÌà  àThe€EPA€believes€that€this€safeguard€needs€to€be€appliedÏhere€as€well.€€Thus,€where€a€pollution€control€project€willÏresult€in€a€significant€increase€in€emissions€and€that€increasedÏlevel€has€not€been€previously€analyzed€for€its€air€quality€impactÏand€raises€the€possibility€of€a€NAAQS,€increment,€or€AQRVÏviolation,€the€permitting€authority€is€to€require€the€source€toÏprovide€an€air€quality€analysis€sufficient€to€demonstrate€theÏimpact€of€the€project.€€The€EPA€will€not€necessarily€require€thatÏthe€increase€be€modeled,€but€the€source€must€provide€sufficientÏdata€to€satisfy€the€permitting€authority€that€the€new€levels€ofÏemissions€will€not€cause€a€NAAQS€or€increment€violation€and€willÏnot€adversely€impact€the€AQRV's€of€nearby€potentially€affectedÏclass€I€areas.ÌÌà  àIn€the€case€of€nonattainment€areas,€the€State€or€the€sourceÏmust€provide€offsetting€emissions€reductions€for€any€significantÏincrease€in€a€nonattainment€pollutant€from€the€pollution€controlÏproject.€€In€other€words,€if€a€significant€collateral€increase€ofÏa€nonattainment€pollutant€resulting€from€a€pollution€controlÏproject€is€not€offset€on€at€least€a€one„to„one€ratio€then€theÏpollution€control€project€would€not€qualify€as€environmentallyÏbeneficial.ñ×ñ׃w×ñ×ññ×ñ׃×ñ×ñÝ ƒqÿÿÝòòÚ  Ú6Ú  ÚóóÝ  Ý×  ×€€However,€rather€than€having€to€apply€offsets€on€aÐ X¨ Ðcase„by„case€basis,€States€may€consider€adopting€(as€part€ofÏtheir€attainment€plans)€specific€control€measures€or€strategiesÏfor€the€purpose€of€generating€offsets€to€mitigate€the€projectedÏcollateral€emissions€increases€from€a€class€or€category€ofÏpollution€control€projects.€€ÌÌà  à(b)€€Determination€of€Increase€in€EmissionsÌÌà  àThe€question€of€whether€a€proposed€project€will€result€in€anÏemissions€increase€over€pre„modification€levels€of€actualÏemissions€is€both€complicated€and€contentious.€€It€is€a€questionÏthat€has€been€debated€by€the€New€Source€Review€ReformÏSubcommittee€of€the€Clean€Air€Act€Advisory€Committee€and€isÏexpected€to€be€revisited€by€EPA€in€the€same€upcoming€rulemakingÏthat€will€consider€adopting€a€pollution€control€projectÏexclusion.€€In€the€interim,€EPA€is€adopting€a€simplified€approachÐ Ø'(#- Ðto€determining€whether€a€pollution€control€project€will€result€inÏincreased€emissions.ÌÌà  àThe€approach€in€this€policy€is€premised€on€the€fact€that€EPAÏdoes€not€expect€the€vast€majority€of€these€pollution€controlÏprojects€to€change€established€utilization€patterns€at€theÏsource.€€As€discussed€in€the€previous€section,€it€is€EPA'sÏexperience€that€add„on€controls€do€not€impact€utilization,€andÏpollution€prevention€projects€that€could€increase€utilization€mayÏnot€be€excluded€under€this€guidance.€€Therefore,€in€most€cases€itÏwill€be€very€easy€to€calculate€the€emissions€after€the€change:Ïthe€product€of€the€new€emissions€rate€times€the€existingÏutilization€rate.€€In€the€case€of€a€pollution€control€projectÏthat€collaterally€increases€a€non„targeted€pollutant,€the€actualÏincrease€(calculated€using€the€new€emissions€rate€and€currentÏutilization€pattern)€would€need€to€be€analyzed€to€determine€itsÏair€quality€impact.ÌÌà  àThe€permitting€authority€may€presume€that€projects€meetingÏthe€definition€outlined€in€section€III(A)(1)€will€not€changeÏutilization€patterns.€€However,€the€permitting€authority€is€toÏreject€this€presumption€where€there€is€reason€to€believe€that€theÏproject€will€result€in€debottlenecking,€loadshifting€to€takeÏadvantage€of€the€control€equipment,€ñÒñò òó óñÒñor€other€ñÒñòòóóñÒñmeaningful€increaseÏin€the€use€of€the€unit€above€current€levels.€€€Where€the€projectÏwill€increase€utilization€and€emissions,€the€associated€emissionsÏincreases€are€calculated€based€on€the€post„modification€potentialÏto€emit€of€the€unit€considering€the€application€of€the€proposedÏcontrols.€€In€such€cases€the€permitting€agency€should€considerÏthe€projected€increase€in€emissions€as€collateral€to€the€projectÏand€determine€whether,€notwithstanding€the€emissions€increases,Ïthe€project€is€still€environmentally€beneficial€and€meets€allÏapplicable€safeguards.€€ÌÌà  àñÒñò òó óñÒñIn€certain€limited€circumstances,€a€permitting€agency€mayÏtake€action€to€impose€federally„enforceable€limits€on€theÏmagnitude€of€a€projected€collateral€emissions€increase€to€ensureÏthat€all€safeguards€are€met.€€For€example,€where€the€data€used€toÏassess€a€projected€collateral€emissions€increase€is€questionableÏand€there€is€reason€to€believe€that€emissions€in€excess€of€theÏprojected€increase€would€violate€an€applicable€air€qualityÏstandard€or€significantly€exceed€the€quantity€of€offsetsÏprovided,€restrictions€on€the€magnitude€of€the€collateralÏincrease€may€be€necessary€to€ensure€compliance€with€theÏapplicable€safeguards.ÌÌà@Ô Ô #ìàIV.€€Procedural€SafeguardsˆÌÌà  àBecause€EPA€has€not€yet€promulgated€regulations€governing€aÏgenerally€applicable€pollution€control€project€exclusion€fromÏmajor€NSR€(other€than€for€electric€utilities),€permittingÏauthorities€must€consider€and€approve€requests€for€an€exclusionÏon€a€case„by„case€basis,€and€the€exclusion€is€not€self„executing.€Ð P- (4 ÐInstead,€sources€must€receive€case„by„case€approval€from€theÏpermitting€authority€pursuant€to€a€minor€NSR€permitting€process,ÏState€nonapplicability€determination€or€similar€process.€Ï[Nothing€in€this€guidance€voids€or€creates€an€exclusion€from€anyÏapplicable€minor€source€preconstruction€review€requirement€in€anyÏSIP€that€has€been€approved€pursuant€to€section€110(a)(2)(C)€andÏ40€CFR€51.160„164.]€€This€process€should€also€provide€that€theÏapplication€for€the€exclusion€and€the€permitting€agency'sÏproposed€decision€thereon€be€subject€to€public€notice€and€theÏopportunity€for€public€and€EPA€written€comment.€€In€those€limitedÏcases€where€the€applicable€SIP€already€exempts€a€class€orÏcategory€of€pollution€controls€project€from€the€minor€sourceÏpermitting€public€notice€and€comment€requirements,€and€where€noÏcollateral€increases€are€expected€(e.g.,€the€installation€of€aÏbaghouse)€and€all€otherwise€applicable€environmental€safeguardsÏare€complied€with,€public€notice€and€comment€need€not€be€providedÏfor€such€projects.€€However,€even€in€such€circumstances,€theÏpermitting€agency€should€provide€advance€notice€to€EPA€when€itÏapplies€this€policy€to€provide€an€exclusion.€€For€standard„wideÏapplications€to€groups€of€sources€(e.g.,€RACT€or€MACT),€theÏnotice€may€be€provided€to€EPA€at€the€time€the€permittingÏauthority€intends€to€issue€a€pollution€control€exclusion€for€theÏclass€or€category€of€sources€and€thereafter€notice€need€not€beÏgiven€to€EPA€on€an€individual€basis€for€sources€within€theÏnoticed€group.€ÌÌà@ä ä !ìàV.€€Emission€Reduction€CreditsˆÌÌà  àIn€general,€certain€pollution€control€projects€which€haveÏbeen€approved€for€an€exclusion€from€major€NSR€may€result€inÏemission€reductions€which€can€serve€as€NSR€offsets€or€nettingÏcredits.€€All€or€part€of€the€emission€reductions€equal€to€theÏdifference€between€the€pre„modification€actual€and€post„¼modification€potential€emissions€for€the€decreased€pollutant€mayÏserve€as€credits€provided€that€1)€the€project€will€not€result€inÏa€significant€collateral€increase€in€actual€emissions€of€anyÏcriteria€pollutant,€2)€the€project€is€still€consideredÏenvironmentally€beneficial,€and€3)€all€otherwise€applicableÏcriteria€for€the€crediting€of€such€reductions€are€met€(e.g.,Ïquantifiable,€surplus,€permanent,€and€enforceable).€€Where€anÏexcluded€pollution€control€project€results€in€a€significantÏcollateral€increase€of€a€criteria€pollutant,€emissions€reductionÏcredits€from€the€pollution€control€project€for€the€controlledÏpollutant€may€still€be€granted€provided,€in€addition€to€2)€and€3)Ïabove,€the€actual€collateral€increase€is€reduced€below€theÏapplicable€significance€level,€either€through€contemporaneousÏreductions€at€the€source€or€external€offsets.€€However,€ñÒñò òó óñÒñneitherÏthe€exclusion€from€major€NSR€nor€any€credit€(full€or€partial)€forÏemission€reductions€should€be€granted€by€the€permitting€authorityÏwhere€the€type€or€amount€of€the€emissions€increase€which€wouldÏresult€from€the€use€of€such€credits€would€lessen€theÏâ âenvironmental€benefit€associated€with€the€pollution€controlÐ ˆ,Ø'3 Ðproject€to€the€point€where€the€project€would€not€have€initiallyÏqualified€for€an€exclusion.Ìâ âÌà@Ô Ô #ìàIV.€€Illustrative€ExamplesˆÌÌà  àThe€following€examples€illustrate€some€of€the€guidingÏprinciples€and€safeguards€discussed€above€in€reviewing€proposedÏpollution€control€projects€for€an€exclusion€from€major€NSR.ÌÌà@””+ìàòòExample€1€óóˆÐ ¸   ÐÌà  àPROJECT€DESCRIPTION:€€A€chemical€manufacturing€facility€inÏan€attainment€area€for€all€pollutants€is€proposing€to€install€aÏRTO€to€reduce€VOC€emissions€(including€emissions€of€someÏhazardous€pollutants)€at€the€plant€by€about€3000€tons€per€yearÏ(tpy).€€The€emissions€reductions€from€the€RTO€are€currentlyÏvoluntary,€but€may€be€necessary€in€the€future€for€title€III€MACTÏcompliance.€€Although€the€RTO€has€been€designed€to€minimize€NOòòxóóÐ øH  Ðemissions,€it€will€produce€200€tpy€of€new€NOòòxóó€emissions€due€toÐ À Ðthe€unique€composition€of€the€emissions€stream.€€There€is€noÏinformation€about€the€project€to€rebut€a€presumption€that€theÏproject€will€not€change€utilization€of€the€source.€€Aside€fromÏthe€NOòòxóó€increase€there€are€no€other€environmental€impacts€knownÐ à0 Ðto€be€associated€with€the€project.ÌÌà  àEVALUATION:€€As€a€qualifying€add„on€control€device,€theÏproject€may€be€considered€a€pollution€control€project€and€may€beÏconsidered€for€an€exclusion.€€The€permitting€agency€should:€Ì1)€verify€that€the€NOòòxóó€increase€has€been€minimized€to€the€extentÐ à Ðpracticable,€2)€confirm€(through€modeling€or€other€appropriateÏmeans)€that€the€actual€significant€increase€in€NOòòxóó€emissions€doesÐ  p Ðnot€violate€the€applicable€NAAQS,ñ×ñ׃x×ñ×ññ×ñ׃¡×ñ×ñÝ ƒqÿÿÝòòÚ  Ú7Ú  ÚóóÝ  Ý×  ×€PSD€increment,€or€adverselyÐ è8 Ðimpact€any€Class€I€area€AQRV,€and€3)€apply€all€otherwiseÏapplicable€SIP€and€minor€source€permitting€requirements,Ïincluding€opportunity€for€public€notice€and€comment.ÌÌà@ÐÐ,ìàòòExample€2óóˆÐ Ð $ ÐÌà  àPROJECT€DESCRIPTION:€€A€source€proposes€to€replace€anÏexisting€coal„fired€boiler€with€a€gas„fired€turbine€as€part€of€aÏcogeneration€project.€€The€new€turbine€is€an€exact€replacementÏfor€the€energy€needs€supplied€by€the€existing€boiler€and€willÏemit€less€of€each€pollutant€on€an€hourly€basis€than€the€boilerÏdid.ÌÌà  àEVALUATION:€€The€replacement€of€an€existing€emissions€unitÏwith€a€new€unit€(albeit€more€efficient€and€less€polluting)€doesÐ  (ð#. Ðnot€qualify€for€an€exclusion€as€a€pollution€control€project.€€TheÏcompany€can,€however,€use€any€otherwise€applicable€nettingÏcredits€from€the€removal€of€the€existing€boiler€to€seek€to€netÏthe€new€unit€out€of€major€NSR.ÌÌñÒñò òó óñÒñà@ÐÐ,ìàòòExample€3óóˆÐ ˜è ÐÌà  àPROJECT€DESCRIPTION:€€A€source€plans€to€physically€renovateÏand€upgrade€an€existing€process€line€by€making€certain€changes€toÏthe€existing€process,€including€extensive€modifications€toÏemissions€units.€€Following€the€changes,€the€source€will€expandÏproduction€and€manufacture€and€market€a€new€product€line.€€TheÏproject€will€cause€an€increase€in€the€economic€efficiency€of€theÏline.€€The€renovated€line€will€also€be€less€polluting€on€a€per„¼product€basis€than€the€original€configuration.ÌÌà  àEVALUATION:€€The€change€is€not€eligible€for€an€exclusion€asÏa€pollution€control€project.€€On€balance,€the€project€does€notÏhave€clearly€evident€pollution€control€aspects,€and€the€resultantÏdecrease€in€the€per„product€emissions€rate€(or€factor)€isÏincidental€to€the€project.€€The€project€is€a€physical€change€orÏchange€in€the€method€of€operation€that€will€increase€efficiencyÏand€productivity.ÌÌà@ÐÐ,ìàòòExample€4óóˆÐ pÀ ÐÌà  àPROJECT€DESCRIPTION:€€In€response€to€the€phaseout€ofÏchlorofluorocarbons€(CFC)€under€title€VI€of€the€Act,€a€majorÏsource€is€proposing€to€substitute€a€less€ozone„depletingÏsubstance€(e.g.,€HCFC„141b)€for€one€it€currently€uses€that€has€aÏgreater€ozone€depleting€potential€(e.g.,€CFC„11).€€A€largerÏamount€of€the€less„ozone€depleting€substance€will€have€to€beÏused.€€No€other€changes€are€proposed.ÌÌà  àEVALUATION:€€The€project€may€be€considered€a€pollutionÏcontrol€project€and€may€be€considered€for€an€exclusion.€€TheÏpermitting€agency€should€verify€that€1)€actual€annual€emissionsÏof€HCFC„141b€after€the€proposed€switch€will€cause€lessÏstratospheric€ozone€depletion€than€current€annual€emissions€ofÏCFC„11;€2)€the€proposed€switch€will€not€change€utilizationÏpatterns€or€increase€emissions€of€any€other€pollutant€which€wouldÏimpact€a€NAAQS,€PSD€increment,€or€AQRV€and€will€not€cause€anyÏcross„media€harm,€including€any€unacceptable€increased€riskÏassociated€with€toxic€air€pollutants;€and€3)€apply€all€otherwiseÏapplicable€SIP€and€minor€source€permitting€requirements,Ïincluding€opportunity€for€public€notice€and€comment.ÌÌà@ÐÐ,ìàòòExample€5óóˆÐ h)¸$/ ÐÌà  àPROJECT€DESCRIPTION:€€An€existing€landfill€proposes€toÏinstall€either€flares€or€energy€recovery€equipment€[i.e.,Ïturbines€or€internal€combustion€(IC)€engines].€€The€reductionsÏfrom€the€project€are€estimated€at€over€1000€tpy€of€VOC€and€areÐ P- (4 Ðcurrently€not€necessary€to€meet€Act€requirements,€but€may€beÏnecessary€some€time€in€the€future.€€In€case€A€the€project€is€theÏreplacement€of€an€existing€flare€or€energy€system€and€no€increaseÏin€NOòòxóó€emissions€will€occur.€€In€case€B,€the€equipment€is€a€firstÐ X Ðtime€installation€and€will€result€in€a€100€tpy€increase€in€NOòòxóó.€Ð Ð  ÐIn€case€C,€the€equipment€is€an€addition€to€existing€equipmentÏwhich€will€accommodate€additional€landfill€gas€(resulting€fromÏincreased€gas€generation€and/or€capture€consistent€with€theÏcurrent€permitted€limits€for€growth€at€the€landfill)€ñÒñò òó óñÒñand€willÏresult€in€a€50€tpy€increase€in€NOòòxóó.Ð ¸   ÐÌà  àEVALUATION:€€Projects€A,€B,€and€C€may€be€consideredÏpollution€control€projects€and€may€be€considered€for€anÏexclusion;€however,€in€cases€B€and€C,€if€the€landfill€is€locatedÏin€an€area€required€to€satisfy€nonattainment€NSR€for€NOòòxóóÐ  ð  Ðemissions,€the€source€would€be€required€to€obtain€NOòòxóó€offsets€atÐ h¸  Ða€ratio€of€at€least€1:1€for€the€project€to€be€considered€for€anÏexclusion.€€[NOTE:€€VOC„NOòòxóó€netting€and€trading€for€NSR€purposesÐ øH  Ðmay€be€discussed€in€the€upcoming€NSR€rulemaking,€but€it€is€beyondÏthe€scope€of€this€guidance.]€€ñÒñò òó óñÒñAlthough€neither€turbines€or€ICÏengines€are€listed€in€section€III.A.1€as€add„on€control€devicesÏand€would€normally€not€be€considered€pollution€control€projects,Ïin€this€specific€application€they€serve€the€same€function€as€aÏflare,€namely€to€reduce€VOC€emissions€at€the€landfill€with€theÏadded€incidental€benefit€of€producing€useful€energy€in€theÏprocess.ñ×ñ׃y×ñ×ññ×ñ׃¥×ñ×ñÝ ƒqÿÿÝòòÚ  Ú8Ú  ÚóóÝ  Ý×  ×Ð 8ˆ ÐÌà  àThe€permitting€agency€should:€€1)€verify€that€the€NOòòxóóÐ È Ðincrease€has€been€minimized€to€the€extent€practicable;€2)€confirmÏ(through€modeling€or€other€appropriate€means)€that€the€actualÏsignificant€increase€in€NOòòxóó€emissions€will€not€violate€theÐ  p Ðapplicable€NAAQS,€PSD€increment,€or€adversely€impact€any€AQRV;Ïand€3)€apply€all€otherwise€applicable€SIP€and€minor€source€and,Ïas€noted€above,€in€cases€B€and€C€ensures€that€NOòòxóó€offsets€areÐ xÈ! Ðprovided€in€an€area€in€which€nonattainment€review€applies€to€NOòòxóóÐ @" Ðemissions€increases.€permitting€requirements,€includingÏopportunity€for€public€notice€and€comment.ÌÌÐ `"°& ÐñÓñÐ  ° ÐñÓññÒñÑTRY3Ø'Y3Ø' 3Ø'&Avery 5164 Shipping3Ø' LetterTÑñÒñ‡ÌÌÌÌÌÌÌÌÌÌÌà@,,(ìàOctober€21,€1994ˆÌÌòòMEMORANDUMóóÐ Ø(  ÐÌSUBJECT:à ` àClassification€of€Emissions€from€Landfills€for€Ð h¸  Ðà  àà ` àNSR€Applicability€PurposesÌÌFROM:à ` àJohn€S.€Seitz,€DirectorÐ À Ðà  àà ` àOffice€of€Air€Quality€Planning€and€Standards€(MD„10)ÌÌTO:à  àà ` àDirector,€Air,€Pesticides€and€ToxicsÐ h Ðà  àà ` à€€Management€Division,€Regions€I€and€IVÌà  àà ` àDirector,€Air€and€Waste€Management€Division.Ìà  àà ` à€€Region€IIÌà  àà ` àDirector,€Air,€Radiation€and€Toxics€Division,Ìà  àà ` à€€Region€IIIÌà  àà ` àDirector,€Air€and€Radiation€Division,Ìà  àà ` à€€Region€VÌà  àà ` àDirector,€Air,€Pesticides€and€Toxics€Division,Ìà  àà ` à€€Region€VIÌà  àà ` àDirector,€Air€and€Toxics€Division,Ìà  àà ` à€€Regions€VII,€VIII,€IX€and€SÌÌà  àThe€EPA€has€recently€received€several€inquiries€regardingÏthe€treatment€of€emissions€from€landfills€for€purposes€of€majorÏNSR€applicability.€€The€specific€issue€raised€is€whether€theÏAgency€still€considers€landfills€gas€emissions€which€are€notÏcollected€to€be€fugitive€for€NSR€applicability€purposes.ÌÌà  àThe€EPA's€NSR€regulations€define€"fugitive€emissions"€toÏmean€"those€emissions€which€could€not€reasonably€pass€through€aÏstack,€chimney,€vent,€or€other€functionally„equivalent€opening"Ï(40€CFR€51.165(a)(1)(x)).€€In€general,€where€a€facility€is€notÏsubject€to€national€standards€requiring€collection,€the€technicalÏquestion€of€whether€the€emissions€at€a€particular€site€couldÏ"reasonably€pass€through€a€stack,€chimney,€vent,€or€otherÏfunctionally„equivalent€opening"€is€a€factual€determination€to€beñÔñÐ  h)¸$/ ÐñÔññÕñÐ h)¸$/ ÐÑTRY$3Ø'Y3Ø'3Ø' Letter 3Ø'&Avery 5164 ShippingTÑñÕññÖñÏñÖñmade€by€the€permitting€authority,€on€a€case„by„case€basis.€€InÏdetermining€whether€emissions€could€reasonably€be€collected€(orÏif€any€emissions€source€could€reasonably€pass€through€a€stack,Ïetc.)€"reasonableness"€should€be€construed€broadly.€€TheÏexistence€of€collection€technology€in€use€by€other€sources€in€theÐ P- (4 Ðsource€category€creates€a€presumption€that€collection€isÏreasonable.€€Furthermore,€in€certain€circumstances,€theÏcollection€of€emissions€from€a€specific€pollutant€emittingÏactivity€can€create€a€presumption€that€collection€is€reasonableÏfor€a€similar€pollutant„emitting€activity,€even€if€that€activityÏis€located€within€a€different€source€category.ÌÌà  àIn€1987,€EPA€addressed€whether€landfill€gas€emissions€shouldÏbe€considered€as€fugitive.ØØñ×ñ׃z×ñ×ññ×ñ׃©×ñ×ñÝ ƒqÿÿÝòòÚ  Ú1Ú  ÚóóÝ  Ý×  ×€€The€Agency€explained€that€forÐ ð @ Ðlandfills€constructed€or€proposed€to€be€constructed€with€gasÏcollection€systems,€the€collected€landfill€gas€would€not€qualifyÏas€fugitive.€€Also,€the€Agency€understood€at€the€time€that,€withÏsome€exceptions,€landfills,€were€not€constructed€with€such€gasÏcollection€systems.€€The€EPA€explained€that€"[t]he€preamble€toÏthe€1980€NSR€regulations€characterizes€nonfugitive€emissions€asÏ'.€.€.€emissions€which€would€ordinarily€be€collected€andÏdischarged€through€stacks€or€other€functionally€equivalentÏopenings'"€(see€45€FR€52693,€Aug.€7,€1980).ñ×ñ׃{×ñ×ññ×ñ׃­×ñ×ñÝ ƒqÿÿÝòòÚ  Ú2Ú  ÚóóÝ  Ý×  ×€€Based€on€theÐ øH  Ð"understanding€that€landfills€are€not€ordinarily€constructed€Ïwith€gas€collection€systems."€the€Agency€concluded€that€Ìemissions€from€existing€or€proposed€landfills€without€gasÏcollection€systems€are€to€be€considered€fugitive€emissions."€€TheÏAgency€also€made€clear,€however,€that€the€applicant's€decision€onÏwhether€to€collect€emissions€is€not€the€deciding€factor.€€Rather,Ïit€is€the€reviewing€authority€that€makes€the€decision€regardingÐ  pÀ Ðwhich€emissions€can€reasonably€be€collected€and€therefore€notÏconsidered€fugitive.ÌÌà  àThe€EPA€believes€its€1987€interpretation€of€the€1980Ïpreamble€may€have€been€misunderstood,€and€in€any€case€that€itsÏfactual€conclusions€at€that€time€are€now€outdated.€€ContinuedÏmisunderstanding€or€application€of€this€outdated€view€couldÏdiscourage€those€constructing€new€landfills€from€utilizingÏotherwise€environmentally„€or€economically„desirable€gasÏcollection€and€mitigation€measures€in€order€to€avoid€major€NSRÏapplicability.ÌÌà  àSpecifically€with€regard€to€landfill€gas€emissions,€gasÏcollection€and€mitigation€technologies€have€evolved€significantlyÏsince€1987,€and€use€of€these€systems€has€become€much€more€common.€ÏIncreasingly,€landfills€are€constructed€or€retrofitted€with€gasÏcollection€systems€for€purposes€of€energy€recovery€and€in€orderÏto€comply€with€State€and€Federal€regulatory€requirements€designedÏto€address€public€health€and€welfare€concerns.€€In€addition,€EPAÏhas€proposed€performance€standards€for€new€landfills€underÏsection111(b)€of€the€Clean€Air€Act€and€has€proposed€guidelinesÏfor€existing€landfills€under€section111(d)€that,€whenÏpromulgated,€will€require€gas€collection€systems€for€existing€andÏnew€landfills€that€are€above€a€certain€size€and€gas€productionÏlevel€(see€56€FR€24468,€May€30,€1991).€€Under€these€requirements,ÏEPA€estimates€that€between€500€and€700€medium€and€large€landfillsÏwill€have€to€collect€and€control€landfill€gas.€€The€EPA€believesÏthis€proposal€created€a€presumption€at€that€time€that€theÏproposed€gas€collection€systems,€at€a€minimum,€are€reasonable€forÏlandfills€that€would€be€subject€to€such€control€under€theÏproposal.ÌÌà  àThus,€EPA€believes€it€is€no€longer€appropriate€to€concludeÏgenerally€that€landfill€gas€could€not€reasonably€be€collected€atÏa€proposed€landfill€project€that€does€not€include€a€gasÏcollection€system.€€The€fact€that€a€proposed€landfill€projectÏdoes€not€include€a€collection€system€in€its€proposed€design€isÏnot€determinative€of€whether€emissions€from€a€landfill€areÏfugitive.€€To€quantify€the€amount€of€landfill€gas€which€couldÏotherwise€be€collected€at€a€proposed€landfill€for€NSRÏapplicability€purposes,€the€air€pollution€control€authorityÏshould€assume€the€use€of€a€collection€system€which€has€beenÏdesigned€to€maximize,€to€the€greatest€extent€possible,€theÏcapture€of€air€pollutants€from€the€landfill.ÌÌà  àIn€summary,€the€use€of€collection€technology€by€otherÏlandfill€sources,€whether€or€not€subject€to€EPA's€proposedÏrequirements€or€to€State€implementation€plan€or€permitÏrequirements,€creates€a€presumption€that€collection€of€theÏemissions€is€reasonable€at€other€similar€sources.€€If€such€aÏsystem€can€reasonably€be€designed€to€collect€the€landfill's€gasÐ  À+'2 Ðemissions,€then€the€emissions€are€not€fugitive€and€should€beÏconsidered€in€determining€whether€a€major€NSR€permit€is€required.ÌÌà  àToday's€guidance€is€applicable€to€the€construction€of€a€newÏlandfill€or€the€expansion€of€an€existing€landfill€beyond€itsÏcurrently„permitted€capacity.€€To€avoid€any€confusion€regardingÏthe€applicability€of€major€NSR€to€existing€landfills,€EPA€doesÏnot€plan€to€reconsider€or€recommend€that€States€reconsider€theÏmajor€NSR€status€of€any€existing€landfill€based€on€the€issuesÏdiscussed€in€this€memorandum.€€Also,€nothing€in€this€guidanceÏvoids€or€creates€an€exclusion€from€any€otherwise€applicableÏrequirement€under€the€Clean€Air€Act€and€the€State€implementationÏplan,€including€minor€source€review.ÌÌà  àThe€Regional€Offices€should€send€this€memorandum,€includingÏthe€attachment,€to€States€within€their€jurisdiction.€€QuestionsÏconcerning€specific€issues€and€cases€should€be€directed€to€theÏappropriate€Regional€Office.€€Regional€Office€staff€may€contactÏMr.€David€Solomon,€Chief,€New€Source€Review€Section,€at€(919)Ï541„5375,€if€they€have€any€questions.ÌÌAttachmentÌÌcc:à  àAir€Branch€Chief,€Regions€I„XÐ ¨ø Ðà  àNSR€Contacts,€Regions€I„X€and€HeadquartersÌÌÌÐ  È ÐñÖñÑTRY3Ø'Y3Ø' 3Ø'&Avery 5164 Shipping3Ø' LetterTÑñÖñÌà@hh)ìàOctober€6,€1987ˆÌà@””+ìàòòMEMORANDUMóóˆÐ @ ÐÌSUBJECT:à ` àEmissions€from€LandfillsÐ Ð  ÐÌFROM:à ` àGerald€A.€Emison,€Director€Office€of€Ð ` ° Ðà0  àà0` (#(#àAir€Quality€Planning€and€Standard€(MD„10)Ð ` (#` (# ÐÌTO:à  àà ` àDavid€P.€Howekamp,€DirectorÐ ¸   Ðà  àà ` àAir€Management€Division,€Region€IXÌÌà  àThis€is€in€response€to€your€September€1,€1987,€memorandumÏrequesting€clarification€regarding€how€landfill€emissions€shouldÏbe€considered€for€the€purpose€of€determining€nonattainment€newÏsource€review€(NSR)€applicability€under€40€CFR€51.18.ÌÌà  àAs€you€are€aware,€a€landfill€is€subject€to€NSR€if€itsÏpotential€to€emit,€excluding€fugitive€emissions,€exceeds€theÏ100tons€per€year€applicable€major€source€cutoff€for€theÏpollutant€for€which€the€area€is€nonattainment.€€FugitiveÏemissions€are€defined€in€40€CFR€(j)(1)(ix)€as€".€.€.€thoseÏemissions€which€could€not€reasonably€pass€through€a€stack,Ïchimney,€vent,€or€other€functionally€equivalent€opening."€ÏLandfill€emissions€that€could€reasonably€be€collected€and€ventedÏare€therefore€not€considered€fugitive€emissions€and€must€beÏincluded€in€calculating€a€source's€potential€to€emit.ÌÌà  àFor€various€reasons,€(e.g.,€oder€and€public€health€concerns,Ïlocal€regulatory€requirements,€economic€incentives),€manyÏlandfills€are€constructed€with€gas€collection€systems.€€CollectedÏlandfill€gas€may€be€flared,€vented€to€the€atmosphere,€orÏprocessed€into€useful€energy€end€products€such€as€high„Btu€gas,Ïsteam,€or€electricity.€€In€these€cases,€for€either€an€existing€orÏproposed€landfill,€it€is€clear€that€the€collected€landfill€gasÏdoes€òònotóó€qualify€as€fugitive€emissions€and€must€be€included€inÐ  X# Ðthe€source's€potential€to€emit€when€calculating€NSRÏapplicability.ÌÌà  àThe€preamble€to€the€1980€NSR€regulations€characterizesÏnonfugitive€emissions€as€".€.€.€those€emissions€which€wouldÏordinarily€be€collected€and€discharged€through€stacks€or€otherÏfunctionally€equivalent€openings."€€Although€there€are€someÏexceptions,€it€is€our€understanding€that€landfills€are€notÏordinarily€constructed€with€gas€collection€systems.€€Therefore,Ïemissions€from€existing€or€proposed€landfills€without€gasÏcollection€systems€are€to€be€considered€fugitive€emissions€andÏare€not€included€in€the€NSR€applicability€determination.€€ThisÏdoes€not€mean€that€the€applicant's€decision€on€whether€to€collectÏemissions€is€the€deciding€factor;€in€fact,€the€reviewingÏauthority€makes€the€decision€on€which€emissions€would€ordinarilyÏbe€collected€and€which€therefore€are€not€considered€fugitiveÏemissions.Ð P- (4 Їà  àIt€should€be€noted€that€NSR€applicability€is€pollutantÏspecific.€€Therefore,€where€the€landfill€gas€is€flared€orÏotherwise€combusted€or€processed€before€release€to€theÏatmosphere,€it€is€the€pollutant€released€which€counts€toward€NSRÏapplicability.€€As€an€example,€landfill€gas€is€composed€mostly€ofÏvolatile€organic€compounds,€but€when€this€gas€is€burned€in€aÏflare,€it€is€the€type€and€quantity€of€pollutants€in€the€exhaustÏgas€(e.g.,€nitrogen€oxides€and€carbon€monoxide)€that€are€used€inÏthe€NSR€applicability€determination.ÌÌà  àIf€you€have€any€questions€regarding€this€matter,€pleaseÏcontact€Gary€McCutchen,€Chief,€New€Source€Review€Section,€atÏFTS629„5592.ÌÌ€Ìcc:à  àChief,€Air€BranchÐ h¸  Ðà  àRegions€I„XÌ