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EPA/AR

RIN: 2060-AL75

Publication ID: Fall 2003

Title: ●Prevention of Significant Deterioration (PSD) and Nonattainment New Source Review (NSR): Allowables Plantwide Applicability Limit (PAL), Aggregation, and Debottlenecking
Abstract: EPA recently promulgated NSR rules for a Plantwide Applicability Limit (PAL) based on actual emissions that applies to existing major stationary sources. This year, EPA will propose an allowables PAL provision based on a facility's allowable emissions. If a company commits to keep its facility emissions below Allowables PAL level, then these regulations will allow the plant owners to avoid the NSR permitting process when they make changes at individual units at the plant, as long as the total emissions from the facility will not increase. This package will also include an aggregation provision which will propose that, for the purposes of NSR applicability, a project is considered separate and independent from any other project unless the project is dependent upon another project to be economically or technically viable, or if the project is intentionally split from other projects to avoid NSR. The package will also include a debottlenecking provision which addresses emissions from units that change as a result of a physical or operational change to another unit at the facility. EPA will propose that, when calculating actual emissions associated with a physical change or change in the method of operation, sources generally should look only at the unit undergoing the change. Emissions from units "upstream" or "downstream" of the unit being changed should be considered only when the permitted emissions limit of the upstream or downstream unit would be exceeded or increased as a result of the change.
Agency: Environmental Protection Agency(EPA)	Priority: Other Significant
RIN Status: First time published in the Unified Agenda	Agenda Stage of Rulemaking: Proposed Rule Stage
Unfunded Mandates: No
CFR Citation: 40 CFR 51.165 40 CFR 51.166 40 CFR 52.21
Legal Authority: 42 USC 7401 et seq

Legal Deadline: None

Statement of Need: The current New Source Review program provides for emissions from multiple projects to be aggregated (aggregation) as one single project under certain circumstances. Similarly, when making a PSD applicability calculation, emissions from units whose effective capacity and potential to emit have been increased as a result of a modification to another unit (debottlenecked units), must be included in the initial PSD applicability calculations. Specific questions regarding the application of these two terms have been addressed on a case-by-case basis. By completing this rulemaking, regulated entities and regulatory agencies will be provided an additional level of certainty in addressing applicability issues. We recently promulgated NSR rules for a Plantwide Applicability Limit (PAL) based on actual emissions that applies to existing major stationary sources. In 2003, we will propose an allowables PAL based on a facility's allowable emissions mainly for greenfield sources. If a company commits to keep its facility emissions below Allowables PAL level, then these regulations will allow the plant owners to avoid the NSR permitting process when they make changes at individual units at the plant, as long as the total emissions from the facility will not increase. This would provide flexibility for sources to respond rapidly to market changes without compromising environmental protection.

Summary of the Legal Basis: 42 USC 7411(a)(4)

Alternatives: Alternatives will be developed as the rulemaking proceeds.

Anticipated Costs and Benefits: Cost and benefit information will be developed as appropriate as the rulemaking proceeds.

Risks: Risk information will be developed as appropriate as the rulemaking proceeds.

Timetable:

Action	Date	FR Cite
NPRM	12/00/2003
Final Action	08/00/2004

Additional Information: SAN 4793.
Regulatory Flexibility Analysis Required: No	Government Levels Affected: Federal, Local, State, Tribal
Small Entities Affected: No	Federalism: No
Included in the Regulatory Plan: Yes
Agency Contact: Juan Santiago Environmental Protection Agency Air and Radiation C504-05, Research Triangle Park, NC 27711 Phone:919 541-1084 Fax:919 541-5509 Email: santiago.juan@epamail.epa.gov Chuck Buckler Environmental Protection Agency Air and Radiation C504-03, Research Triangle Park, NC 27711 Phone:919 541-0873 Fax:919 541-5509 Email: buckler.charles@epa.gov