Robynn Andracsek, P.E., Burns & McDonnell and Contributing Editor
Understanding the components and precedents of New Source Review is only the start; now you need to develop a methodology to use when evaluating your projects. This will be helpful in deciding which aspects of NSR are applicable and in documenting your process and conclusions. I highly recommend consulting your own counsel when setting up an NSR evaluation program. You may even want to have your NSR evaluations protected by attorney-client privilege.
To review, NSR applicability has two basic parts: is the project a Prevention of Significant Deterioration (PSD) modification and does the project result in a significant emissions increase? These basic inquiries apply to all types of projects and industries, from boilers and turbines to refineries and steel mills. The more likely your industry falls into an NSR enforcement priority category, the greater your need for an NSR evaluation program.
The template on page 12 presents a sample format you can use to begin developing your own process. Each company will end up with its own format based on the requirements in its state(s), corporate structure and the makeup of its fleet.
Section A of the form captures basic project information. Keep in mind that NSR doesn’t apply only to large pieces of equipment: changes in small equipment can have debottlenecking implications on larger emission units that can trigger NSR scrutiny. Section B walks through the so-called “WEPCO process” to determine if the project qualifies for the “routine” exemption. Claiming this exemption should be used with caution: A review of relevant court cases shows few modifications meet the court’s narrow interpretation of routine.
Section C documents the baseline emissions, which are based on the average annual emissions over a 24-month period. These need not match a calendar year, although using calendar years are a good place to start since they are already documented to the state agency. Section D addresses netting opportunities, if applicable. The contemporaneous period begins on the date five years before construction of the proposed modification starts. It ends on the date the emissions from the proposed project increase. Remember that netting is plant-wide; you cannot net two pieces of equipment against each other without considering all other increases and decreases for that pollutant at the facility in the contemporaneous period.
Sections E and F calculate the emissions increase associated with the project. Section G leaves room for penciling in the actual emissions after the project is completed, thus documenting if an actual emissions increase occurred above the thresholds, and, if so, explaining how that increase either was or was not related to the project.
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Unless your legal counsel advises to the contrary, consider communicating these issues with your state agency. Many non-NSR projects will require a state construction permit. Experience shows that NSR is one area where it is better to ask permission than beg forgiveness.