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New Source Review (NSR)

RegSenseAir QualityezExplanationAir EmissionsEnvironmental Protection Agency (EPA)Best ResultsEnvironmentalAir QualityAir PermittingFocus AreaEnglishAir ProgramsStationary Emission SourcesUSA

The New Source Review (NSR) program makes sure that construction projects, whether new buildings or major modifications to existing facilities, do not worsen the air quality in a particular area. NSR permits describe what construction is allowed, emission limits, and even some operating requirements. There are three types of NSR permitting requirements. A source may have to meet one or more of these permitting requirements:

  • Prevention of Significant Deterioration (PSD) permits — PSD permits are required for new major sources or major sources making a major modification in areas that meet the National Ambient Air Quality Standards (NAAQS), meaning the areas are in attainment. PSD permits require installing pollution controls using the best available control technology (BACT).
  • Nonattainment NSR permits — These permits are required for new major sources or major sources making a major modification in areas that do not meet one or more of the NAAQS, meaning the areas are in nonattainment. Permits in nonattainment areas must meet the lowest achievable emission rate (LAER).
  • Minor source permits — These permits are for pollutants from stationary sources that do not require PSD or nonattainment NSR permits. The idea is to prevent the construction of sources that would interfere with attainment or maintenance of a NAAQS or violate the control strategy in nonattainment areas. Also, minor NSR permits often contain permit conditions to limit the sources emissions to avoid PSD or nonattainment NSR.
Most NSR permits are issued by state or local air pollution control agencies. EPA issues permits in some cases. States may develop unique NSR requirements and procedures tailored for their air quality needs as long as the program is at least as stringent as federal EPA’s requirements. EPA must approve these programs in the State Implementation Plan (SIP). Other states may be delegated the authority to issue permits on behalf of EPA and are often referred to as “delegated states.”

Scope

NSR applies to:

Regulatory citations

Key definitions

  • Begin actual construction: In general, initiation of physical on-site construction activities on an emissions unit which are of a permanent nature. Such activities include, but are not limited to, installation of building supports and foundations, laying of underground pipework, and construction of permanent storage structures. With respect to a change in method of operating this term refers to those on-site activities other than preparatory activities which mark the initiation of the change.
  • Best available control technology (BACT): An emissions limitation (including a visible emissions standard) based on the maximum degree of reduction for each regulated NSR pollutant which would be emitted from any proposed major stationary source or major modification which the reviewing authority, on a case-by-case basis, taking into account energy, environmental, and economic impacts and other costs, determines is achievable for such source or modification through application of production processes or available methods, systems, and techniques, including fuel cleaning or treatment or innovative fuel combustion techniques for control of such pollutant. In no event shall application of best available control technology result in emissions of any pollutant which would exceed the emissions allowed by any applicable standard under 40 CFR 60 or 61. If the reviewing authority determines that technological or economic limitations on the application of measurement methodology to a particular emissions unit would make the imposition of an emissions standard infeasible, a design, equipment, work practice, operational standard, or combination thereof, may be prescribed instead to satisfy the requirement for the application of BACT. Such standard shall, to the degree possible, set forth the emissions reduction achievable by implementation of such design, equipment, work practice or operation, and shall provide for compliance by means which achieve equivalent results.
  • Building, structure, facility, or installation: All of the pollutant-emitting activities which belong to the same industrial grouping, are located on one or more contiguous or adjacent properties, and are under the control of the same person (or persons under common control) except the activities of any vessel.
  • Construction: Any physical change or change in the method of operation (including fabrication, erection, installation, demolition, or modification of an emissions unit) that would result in a change in emissions.
  • Emissions unit: Any part of a stationary source that emits or would have the potential to emit any regulated NSR pollutant and includes an electric steam generating unit as defined in 40 CFR 51.165(a)(1)(xx). There are two types of emissions units: (A) A new emissions unit is any emissions unit which is (or will be) newly constructed and which has existed for less than 2 years from the date such emissions unit first operated. (B) An existing emissions unit is any emissions unit that does not meet the requirements in paragraph (A). A replacement unit is an existing emissions unit.
  • Fugitive emissions: Those emissions which could not reasonably pass through a stack, chimney, vent or other functionally equivalent opening.
  • Lowest achievable emission rate (LAER): For any source, the more stringent rate of emissions based on the following: (A) The most stringent emissions limitation which is contained in the implementation plan of any State for such class or category of stationary source, unless the owner or operator of the proposed stationary source demonstrates that such limitations are not achievable; or (B) The most stringent emissions limitation which is achieved in practice by such class or category of stationary sources. This limitation, when applied to a modification, means the lowest achievable emissions rate for the new or modified emissions units within or stationary source. In no event shall the application of the term permit a proposed new or modified stationary source to emit any pollutant in excess of the amount allowable under an applicable new source standard of performance.
  • Major stationary source: See 40 CFR 51.165.
  • Major modification: See 40 CFR 51.165.
  • Necessary preconstruction approvals or permits: Those Federal air quality control laws and regulations and those air quality control laws and regulations which are part of the applicable State Implementation Plan.
  • Nonattainment major new source review (NSR) program: A major source preconstruction permit program that has been approved by the Administrator and incorporated into the plan to implement the requirements of this section, or a program that implements Part 51, Appendix S, Sections I through VI of this chapter. Any permit issued under such a program is a major NSR permit.
  • Potential to emit: The maximum capacity of a stationary source to emit a pollutant under its physical and operational design. Any physical or operational limitation on the capacity of the source to emit a pollutant, including air pollution control equipment and restrictions on hours of operation or on the type or amount of material combusted, stored, or processed, shall be treated as part of its design only if the limitation or the effect it would have on emissions is federally enforceable. Secondary emissions do not count in determining the potential to emit of a stationary source.
  • Prevention of Significant Deterioration (PSD) permit: Any permit that is issued under a major source preconstruction permit program that has been approved by the Administrator and incorporated into the plan to implement the requirements of 51.166, or under the program in 52.21.
  • Project: A physical change in, or change in the method of operation of, an existing major stationary source.
  • Stationary source: Any building, structure, facility, or installation which emits or may emit a regulated NSR pollutant.

Summary of requirements

Most states follow a similar path to permitting, starting with an application and public notice period and ending with facility inspections and reviews (or permit denials). The following steps represent a typical path to a permit for new construction or facility modification. Your state may have more (or fewer) steps.

NSR permitting steps
StepActionTimeframe
1Contact the permitting agency (federal, state, or local) to discuss your project. This will include:
  • Permitting
  • Fees
  • Processing time
  • Application forms
  • Air monitoring requirements
  • Emissions testing requirements
  • Applicable regulations
  • Permit limits
  • Other relevant information
Four months to two years before a planned project.
2Fill out Permits-to-Install (PTI) or Permits-to-Install and Operate (PTIO) (or state equivalent) applications and submit to the regulating agency. Be sure to include all supporting documentation. Work with the permitting agency to avoid processing delays.
  • Three to six months before the start of a project for area sources, or
  • Up to two years before beginning a project for a major source.
3The permitting agency reviews the application and determines if the project will affect air quality in the state and meets all regulatory requirements. The permitting agency develops terms and conditions that must be met and may ask for additional information.Occurs after the application is received by the permitting agency.
4The permitting agency completes its technical review of the application. If approved, the PTI or PTIO is issued. If not approved, the application may be sent back for corrections.One to three months from the date the complete application was submitted (depending on the workload/backlog at the regulating agency). Additional time is needed when applications are returned for corrections.
5The permitting agency will issue a draft permit to major sources and place a notice in the local paper (or online) with details about the proposed project. The notice asks for comments and gives the public 30 days to comment. The agency may also schedule a public meeting. If not, comments are received, the permitting process moves forward. If comments are received, the draft permit may be modified and reissued. Alternatively, the permit may be denied.One to three months after the permit application is submitted.
6The permitting agency issues a final PTI or PTIO (or state equivalent permit). This allows the source to begin construction and operate for the purpose of testing the emissions and/or operate for the length specified in the permit.One to six months after the permit application is submitted.
7The project is completed and required emission testing is conducted. Facilities operating under a Title V permit may need to submit a revised Title V application at this point.Variable.
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['Air Programs']
['Air Permitting', 'Stationary Emission Sources', 'Air Quality', 'Air Emissions']
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