Attachment 1

A New Approach to NSR Applicability

The basic goal is to reduce emissions to a certain level, e.g., BACT or LAER, for existing sources that currently have no or little emission control at some fixed date in time, in the future. This would be done either through add-on technology or pollution prevention. Major greenfield sources would still be subject to current New Source Review (NSR) requirements. Netting as it is conducted today would be eliminated.

Criteria and issues based on preliminary discussions include:

The test for applicability should be a single set of criteria that is easy to implement and enforce;

Provide an exemption from many NSR modifications for a fixed period of time (e.g., 10 years from 1999). At the end of that period NSR, meaning the application of BACT or LAER, would apply to all major units at the source.

-	Some lead time would be provided for sources to install controls or retire the facility.

NSR applicability as is currently conducted would be suspended with the following exceptions:

-	For modifications to existing units, EPA would at least continue to review reconstruction and major capacity expansions but examine the possibility of temporarily exempting lesser modifications from NSR;

-	BACT/LAER on all new emissions units and/or reconstruction and major capacity expansions would still be required.

All non-NSR requirements of the Clean Air Act and implementation schedules for attaining health-based standards would remain unaffected by this new approach (e.g. SIP requirements, Title IV, MACT etc.).

Other desirable outcomes are to:

-	Reduce the incidence of case-by-case BACT determinations--for example, establish presumptive BACT for specific industry sectors;

-	Factor improvements in efficiency improvements and pollution prevention into BACT/LAER decisions--for example, if large improvements are derived but the highest control levels are not achieved, should BACT/LAER be a function of air quality?

Related Issues:

-	What happens for sources in sectors that do not have a presumptive BACT established?

-	How do we stimulate the development or evolution of more effective control technologies and P2?

-	How would EPA and permitting authority deal with the possibility of hundreds of applications coming in on one date?

-	How should reconstruction be defined for the purposes of NSR?