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EPA/AR RIN: 2060-AL75 Publication ID: Fall 2006 
Title: Prevention of Significant Deterioration (PSD) and Nonattainment New Source Review (NSR): Debottlenecking, Aggregation and Project Netting 
Abstract: This project will revise rules governing the major new source review (NSR) programs mandated by parts C and D of title I of the Clean Air Act (CAA). The new regulations will clarify and codify our policy of when multiple activities at a single major stationary source must be considered together for the purposes of determining major NSR applicability ("aggregation"). Also, we are changing 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"). Finally, we are clarifying how emissions decreases from a project may be included in the calculation to determine if a significant emissions increase will result from a project ("project netting"). When final, these rules will improve implementation of the program by articulating and codifying principles for determining major NSR applicability that we currently address through guidance only. These rule changes reflect the EPA's consideration of the EPA’s 2002 Report to the President and its associated recommendations as well as discussions with various stakeholders including representatives of environmental groups, State and local governments, and industry. 
Agency: Environmental Protection Agency(EPA)  Priority: Other Significant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Final 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.

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  09/14/2006  71 FR 54235   
Final Action  05/00/2007    
Additional Information: SAN No. 4793
Regulatory Flexibility Analysis Required: No  Government Levels Affected: Federal, Local, State 
Small Entities Affected: No  Federalism: No 
Included in the Regulatory Plan: Yes 
Agency Contact:
Dan Deroek
Environmental Protection Agency
Air and Radiation
C504-03,
RTP, NC 27711
Phone:919 541-5593
Fax:919 541-5509
Email: deroek.dan@epa.gov

Lisa Sutton
Environmental Protection Agency
Air and Radiation
109 T.W. Alexander Drive, Mail Code E143-01,
Research Triangle Park, NC 27711
Phone:919 541-3450
Email: sutton.lisa@epa.gov