U.S. Environmental Protection Agency - October 2007

FY08 - FY10 Compliance and Enforcement National Priority

Clean Air Act, New Source Review/Prevention of Significant Deterioration


What is the Environmental Problem?

New Source Review (“NSR”) consists of two programs:  prevention of
significant deterioration (“PSD”) and nonattainment NSR.  New and
modified sources in attainment areas, i.e., where air quality standards
have been met, and in unclassifiable areas, are required to follow PSD
rules, which means they must obtain a pre-construction permit, prove
that the construction will not cause violations of certain air quality
standards, and show that that their operations are in continuous
compliance with the best available control technology (“BACT”)
requirements.  In nonattainment areas, i.e., where air quality standards
have not been met, new and modified sources are required to obtain
pre-construction permits, to offset emissions increases with emissions
reductions from other sources in the area, and to install lowest
achievable emissions rate technology (“LAER”).  

To comply with the CAA, the NSR/PSD program requires that before new
sources begin construction, and existing sources change their processes,
they apply for and obtain pre-construction permits (where the new
construction or changes will cause emissions to increase above statutory
and regulatory emissions thresholds).  The United States Environmental
Protection Agency (“EPA”) has determined that many sources have made
changes to existing facilities without applying for and obtaining
pre-construction permits.  Consequently, sources have illegally
increased their emissions where they would have otherwise likely been
required to install pollution control technologies.

EPA has selected four industrial sectors for investigation based on the
probability of past modifications that would have required NSR/PSD
permits and the sectors’ overall emission profile.  The four sectors
are:  coal-fired electric utilities, cement manufacturing facilities,
sulfuric and nitric acid manufacturing facilities and glass
manufacturing facilities.

Why Are We Addressing The Problem?

	

The Agency selected the four sectors for the priority Strategy, because
each contributes significant amounts of pollutants to the atmosphere. 
The coal-fired power plant sector emits approximately two-thirds of the
nation’s sulfur dioxide (“SO2”) and approximately one-third of the
nitrogen oxide (“NOx”).  The cement sector is the third largest
industrial source of pollution, emitting more than 500,000 tons per year
(“TPY”) of SO2, NOx and carbon monoxide (“CO”).  Acid plants
emit approximately 300,000 TPY of SO2 and NOx and glass plants emit
approximately 174,000 TPY of NOx, SO2 and particulate matter. 
Investigation and enforcement of NSR/PSD in the latter three sectors has
the potential to reduce emissions up to 75% in each of these sectors,
with possible emission reductions of approximately 750,000 tons per
year.  

A strong federal presence in NSR/PSD enforcement is necessary because of
widespread non-compliance with the NSR/PSD program in the identified
sectors and because of inconsistent permitting decisions made by
permitting authorities about both the necessity for permits and the
level of emission controls required.  Despite indications that many
cement, acid and glass facilities have made modifications requiring
preconstruction permits, only a small percentage of facilities have
NSR/PSD permits.  Where permits have been issued, many state permits do
not reflect the BACT for a particular industry.  Outside the permitting
context, a strong federal presence is necessary to ensure consistency in
approach to litigation and settlement.  Although EPA is playing a
significant role in NSR/PSD enforcement, the Agency is continuing to
actively encourage the states’ participation.  

How is OECA Addressing the Problem?

OECA will utilize various tools to address violations in the priority
sector areas.  The primary tool to be utilized will be compliance
investigation and evaluation.  Compliance investigations can take
different forms but generally include some or all of the following: (1)
written information requests, (2) state/local permit file reviews, (3)
regional file reviews, (4) public information reviews, (5) on-site
compliance inspections, (6) source emission testing information
requests, (7) notices of violation, (8) administrative orders,
administrative penalty orders, or case referrals to the Department of
Justice, (9) supporting referred claims, (10) developing cases for
filing, and (11) training for regional personnel to increase the level
of awareness of NSR/PSD investigatory techniques.

Highlights from the FY 2005-2007 Planning Cycle

	

NSR/PSD was selected as a national enforcement and compliance priority
for the FY2005 - FY2007 priority cycle.  The priority had two
components.  First, the Office of Enforcement and Compliance Assurance
(“OECA”) continued its efforts to ensure coal-fired power plants
comply with the NSR/PSD program.  As a result of its efforts, EPA has
secured commitments that will reduce emissions of criteria pollutants by
more than one billion pounds per year at a cost of approximately $5.8
billion (for the installation of state-of-the-art air pollution
controls).  Second, OECA identified the cement, glass, and acid
manufacturing sectors for further NSR/PSD investigation.  

 PAGE   

 PAGE   2 

Final: NSR/PSD Summary		October 2007

