An Overall Permitting Process

Federal laws governing air pollution are designed to protect ambient air quality and public health. The USEPA, acting with authority of such laws, establishes federal regulations that limit the emissions allowed from various sources. The specific regulations for various industrial categories are documented in the Code of Federal Regulations (e.g. 40 CFR Part 60) and include emission limits, performance standards, permitting procedures, testing and monitoring requirements, record keeping, and reporting. Most states in the United States adopt the federal emission limits and standards by reference within their state laws. The states may create standards that are more stringent than the federal standards if they so desire, but may not make standards less stringent.

States have established their own air pollution permitting and compliance programs. Once a state plan is approved by the USEPA, the state is delegated the authority to ensure clean and healthy air within its borders. The permitting process is the vehicle through which the states track and enforce their regulations. The state regulations set certain emission limits for various pollutants, above which a source may not emit without first obtaining a permit. Any source that fails to obtain a proper permit is subject to a significant fine. One purpose of the state permit program is to allow the state to keep track of major point sources of air pollution. Permits provide a means to endure that sources use appropriate technology to control pollution, and they demonstrate ongoing compliance with emissions standards through routine testing, monitoring, record keeping, and reporting.

Who Needs a PSD Permit?

There are 28 specific industries or industrial processes that must meet the requirements of the PSD program if they emit, or have the potential to emit, at least 100 T/Y of any pollutant regulated by the federal CAA. These industries and processes are listed in Table 4.9. For all other industries and industrial processes, the PSD program applies if they emit, or have the potential to emit, at least 250 T/Y of any regulated pollutant. Regulated pollutants that most commonly lead to source‐wide PSD applicability include PM, carbon monoxide (CO), sulfur dioxide (SO₂), VOCs, nitrogen oxides (NO _x ), and GHGs. Other relatively common regulated pollutants include fluorides, sulfuric acid mist (H₂SO₄), hydrogen sulfide (H₂S), and total reduced sulfur compounds.

In the case of a modification to an existing major stationary source, PSD review is triggered if a physical change or change in the method of operation at the major stationary source results in both a significant emissions increase and a significant net emissions increase at the source. The PSD program establishes specific applicability criteria for determining if the modification causes both a significant emissions increase and a significant net emissions increase at the source. The PSD applicability criteria are discussed in detail in Sections 4.12, 4.13, and D.4.

Special case when a facility is less than the above levels before the project, but the project itself is over 100 or 250 T/Y level. Example 1: an 80 T/Y SO₂ facility does a 50 T/Y SO₂ expansion would not be required to get a PSD permit at this point. Example 2: the same facility does a 120 T/Y expansion would need to get a PSD permit.

What Does the PSD Program Require of the Applicant?

To obtain a PSD permit, an applicant must (USEPA 1990) do the following:

1. Fully identify the scope of the project and what equipment is new, modified, or increased utilization of upstream and downstream equipment.
2. Apply BACT for new or modified equipment. A BACT considers energy, environmental, and economic impacts in determining the maximum degree of reduction achievable for the proposed source or modification. The BACT determination cannot result in an emission limitation which would not meet any applicable standard of performance under 40 CFR Parts 60, 61, and 63. Equipment with increased utilization is not subject to BACT review. PSD BACT only applies to the pollutants that have triggered PSD. Other pollutants may be evaluated by the minor permitting agency.Table 4.9 List of 28 source categories with a 100 T/Y major source threshold.1.Fossil fuel–fired steam electric plants of more than 250 MBtu/h heat input2.Coal cleaning plants (w/thermal dryers)3.Kraft pulp mills4.Portland cement plants5.Primary zinc smelters6.Iron and steel mill plants7.Primary aluminum ore reduction plants (w/thermal dryers)8.Primary copper smelters9.Municipal incinerators capable of charging more than 250 T of refuse per day10.Hydrofluoric acid plants11.Sulfuric acid plants12.Nitric acid plants13.Petroleum refineries14.Lime plants15.Phosphate rock processing plants16.Coke oven batteries17.Sulfur recovery plants18.Carbon black plants (furnace process)19.Primary lead smelters20.Fuel conversion plants21.Sintering plants22.Secondary metal production plants23.Chemical process plants (which does not include ethanol production facilities that produce ethanol by natural fermentation included in NAICS codes 325193 or 312140)24.Fossil‐fuel boilers (or combinations thereof) totaling more than 250 million British thermal units per hour heat input25.Petroleum storage and transfer units w/a total storage capacity exceeding 300 000 barrels26.Taconite ore processing plants27.Glass fiber processing plants28.Charcoal production plants
3. Conduct an ambient air quality analysis. Each PSD new source or modification of an existing source must perform an air quality analysis to demonstrate that its new pollutant emissions would not violate either the applicable NAAQS, or the applicable PSD increment. The equipment that has an increase in yearly utilization impacts will be part of the long‐term air quality analysis.

The Air Quality Impact Analysis (AQIA) starts with preliminary modeling for each pollutant to determine whether an applicant can forego detailed analysis and preconstruction monitoring. If the projected ambient concentration increase for a given pollutant is below the PSD Significant Impact Levels (SILs) and Significant Monitoring Concentration (SMCs) for each averaging period, no further analysis of the ambient impact is required for that pollutant. For those pollutants with averaging periods that have impacts greater than the SIL, a full impact analysis (taking into account other increment consuming sources) is used to demonstrate compliance with PSD increments and NAAQS. The baseline years for modeling should be the last two years’ emissions.

The Federal Land Managers’ (FLMs) guidance on evaluating impacts of major projects on Class I areas is the FLMs’ Air Quality Values Workgroup (FLAG) Phase I Report – revised (National Park Service 2010). The FLAG effort focused on how air pollutants – primarily PM, nitrogen dioxide, sulfur dioxide, nitrates, sulfates, and ozone – affect health and status resources in areas managed by National Park Service, US Fish and Wildlife Service, and US Department of Agriculture Forest Service. FLAG subgroups concentrate on four key areas: (i) visibility; (ii) aquatic and terrestrial effects of wet and dry pollutant deposition; (iii) terrestrial effects of ozone; and (iv) process and policy issues.

1. Analyze impacts to soils, vegetation, and visibility. An applicant is required to analyze whether its proposed emissions increases would impair visibility, impact soils, or vegetation. Not only must the applicant look at the direct effect of source emissions on these resources but also must consider the impacts from general commercial, residential, industrial, and other growth associated with the proposed source or modification.
2. Not adversely impact a Class I area. If the state agency receives a PSD permit application that could impact a Class I area, the state environmental regulatory agency will notify the Federal Land Manager (FLM) and federal official charged with direct responsibility for managing these lands. These officials are responsible for protecting the air quality–related values in Class I areas and for consulting with the state agency to determine whether any proposed project will adversely affect a Class I area. If the FLM demonstrates that emissions from a proposed source or modification would impair air quality–related values, even though the emissions levels would not cause a violation of the NAAQS or allowable air quality increment, the FLM may recommend that the reviewing authority deny the permit. The state environmental regulatory agency can still issue the permit if it determines all the requirements have been met.
3. Undergo adequate public participation. Specific public notice requirements including State Environmental Policy Act and a public comment period are required before state takes final action on a PSD application.