Final Rule on the Implementation New Source Review Provisions for Particulate Matter Less than 2.5 Micrometers

The USEPA has issued a final rule for the implementation of the New Source Review (NSR) program for particulate matter less than 2.5 micrometers (PM.2.5).  The requirements were published in the Federal Register on May 8, 2008.

This final NSR rule complements both the USEPA’s April 25, 2007, final implementation rule for the non-NSR (SIP related) provisions of PM2.5 NAAQS and a rule proposed on September 21, 2007 which proposes to facilitate implementation of a Prevention of Deterioration (PSD) program in areas in attainment for particulate matter less that 2.5 micrometers (PM2.5).through PM2.5  increments, Significant Impact Levels(SIL), and Significant Monitoring Concentrations(SMC).  These three rules will be the framework for implementing preconstruction permit review for the PM2.5 NAAQS.

This rule finalizes several New Source Review program requirements for PM2.5 emitting and contributing sources. 

Pollutants that contribute to PM2.5 are subject to NSR regulations. 

This rule requires NSR permits to address direct PM2.5 emission as well as secondary formation of PM 2.5 as follows:

Sulfur Dioxide (SO2)- regulated

NOx – regulated unless there is demonstration that NOx emissions are not a significant contributor to PM2.5 formation in that area

VOC- not regulated unless there is demonstration that VOC emissions are a significant contributor to PM2.5 formation in that area

Ammonia- not regulated unless there is demonstration that ammonia emissions are a significant contributor to PM2.5 formation in that area

Condensables-EPA has adopted a transition period before requiring accountability for these gases that could condense to form particles

 Major Source Thresholds:

For new facilities that emit target air pollutants in amounts exceeding the major source thresholds, they will be considered a major source and must obtain permits with required emission controls.

Significant Emission Rates:

Significant emission rates are used to determine NSR applicability for existing sources.

This rule sets these significant emission rates for existing facilities that emit direct PM2.5 and precursor pollutants as follows:

Direct PM2.5 emissions at 10 tpy

SO2 emissions at 40 tpy

NOx emissions at 40 tpy

VOC emissions (if regulated) by 40 tpy unless the state demonstrates a lower rate is appropriate

Interpollutant Offset Trading:

This rule allows interpollutant trading under the PM2.5 nonattainment NSR program on a regional or statewide basis, but precludes trading on a permit-by-permit basis. 

Permissible interpollutant offset trading allows reductions in direct PM 2.5 to offset precursor emission increases, emission reductions of one precursor to offset emission increases of another precursor, and reductions in precursor emissions to offset direct PM2.5 emission increases

The EPA has developed acceptable trading ratios which specify the amount of each pollutant which may be traded for another.  States may use the EPA’s ratios or develop their own EPA approved ratios.

Revised SIP Submittal Deadlines:

States with EPA approved PSD programs and those with PM2.5 nonattainment areas have up to three years from the publication of this final rule to submit revised SIPs incorporating these NSR requirements

Rule Implementation:

Upon the effective date of this final rule, this rule will apply immediately to states that implement the EPA’s PSD rule through delegation and in nonattainment areas of the states, through the “transitional” NSR provisions until the revised SIP is adopted.

States with EPA approved PSD programs should continue to use the existing interim approach using PM10 as a surrogate for PM 2.5 until their SIPS are revised and adopted.

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