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EPA/AR

RIN: 2060-AL75

Publication ID: Fall 2004

Title: Prevention of Significant Deterioration (PSD) and Nonattainment New Source Review (NSR): Allowables Plantwide Applicability Limit (PAL), Aggregation, and Debottlenecking
Abstract: These rules clarify when less than significant emissions increases from multiple activities at a single major stationary source must be considered together for the purposes of determining major new source review (NSR) applicability (aggregation). We are also changing in the way emissions from permitted emissions units upstream or downstream from those undergoing a physical change or change in the method of operation are considered when determining if a proposed project will result in a significant emissions increase (debottlenecking). The rules also provide an allowables plantwide applicability limit (PAL) option that is based on the allowable emissions from major stationary sources. A PAL is an optional approach that provides the owners or operators of major stationary sources with the ability to manage facility-wide emissions without triggering major NSR. The added flexibility of a PAL allows sources to respond rapidly to market changes consistent with the goals of the NSR program. The regulations for aggregation and debottlenecking are intended to improve implementation of the program by articulating principles for determining major NSR applicability that were previously addressed through guidance only. The purpose of the allowables PAL rule is to encourage major stationary sources to install state-of-the-art controls in exchange for regulatory certainty and flexibility.
Agency: Environmental Protection Agency(EPA)	Priority: Other Significant
RIN Status: Previously published in the Unified Agenda	Agenda Stage of Rulemaking: Proposed Rule Stage
Major: No	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. In December 2002 we promulgated NSR rules for a Plantwide Applicability Limit (PAL) based on actual emissions that applies to existing major stationary sources. In 2005, 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	02/00/2005
Final Action	10/00/2005

Additional Information: SAN No. 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: Raj Rao Environmental Protection Agency Air and Radiation C504-03, Research Triangle Park, NC 27711 Phone:919 541-5344 Fax:919 541-5509 Email: rao.raj@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