New Source Review Permitting Improvement Act
The New Source Review Permitting Improvement Act proposes amendments to the Clean Air Act to clarify when changes at a stationary source (a plant or facility that emits air pollutants) count as a “modification” or “construction” for purposes of New Source Review (NSR) and Prevention of Significant Deterioration (PSD) permitting. A central feature is a new emission-rate threshold: a change is a modification only if the maximum hourly emission rate after the change exceeds the maximum hourly rate achievable in any hour during the prior 10 years. The bill also creates exceptions for certain projects aimed at reducing emissions per unit of production or improving reliability or safety, subject to an Administrator’s determination that the change would cause adverse health or environmental effects. Additional provisions adjust how modifications are treated for PSD and nonattainment areas and include a rule ensuring the bill’s changes are not applied retroactively to actions that would not have been considered modifications before enactment.
Key Points
- 1Emission-rate threshold for modifications: A change is a modification only if the post-change maximum hourly emission rate exceeds the historical maximum hourly rate from the prior 10 years; otherwise it would not be considered a modification under Section 111(a).
- 2Exceptions for certain efficiency/reliability/safety projects: Changes designed to reduce emissions per unit of production or to restore/maintain/improve reliability or safety are generally not modifications, unless the Administrator determines the increase in the maximum achievable hourly emission rate would cause an adverse health or environmental effect.
- 3PSD construction definition alignment: At major emitting facilities, a modification is treated as “construction” for PSD purposes only if it results in a significant emissions increase or a significant net increase in annual actual emissions; otherwise, it would not be treated as construction for PSD.
- 4Nonattainment area modifications: For modifications at major emitting facilities in nonattainment areas, the terms “modifications” and “modified” follow the same 111(a)(4) meaning, but do not include changes that do not result in a significant emissions increase or significant net emissions increase.
- 5Non-retroactive rule: The bill specifies that nothing in it should be construed to treat a given change as a modification if it would not have been treated as such before enactment.