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Note: EPA no longer updates this information, but it may be useful as a reference or resource.

Please see www.epa.gov/nsr for the latest information on EPA's New Source Review program.

July 1, 1978 "Commence Construction" Under PSD 1.6

Physical on-site construction refers to placement, assembly, or installation of materials, equipment, or facilities which will make up part of the ultimate structure of the source. In order to qualify, these activities must take place at the proposed site and is site- specific.

In order to satisfy the commence construction requirements, a contractual obligation must be a site specific commitment. Contracts for work on footings, pilings, etc. are considered site specific whereas contracts for site clearing or excavation work are not Legislative history indicates that contracts for non-site specific equipment, such as boilers will not suffice. A contractual obligation should be one which cannot be canceled or modified without substantial loss. Substantial loss being an exceedance of 10 percent of the total project cost depending on the scenario.

Eighteen months constitutes a reasonable time to assure that construction is proceeding within a reasonable time. A break in construction of greater than 18 months or failure to commence construction within 18 months of the PSD permit issuance will generally invalidate a source's PSD permit.

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