EPA Proposes Changes to Air Permitting Regulations for New Sources
Companies with operations subject to the Clean Air Act are required to submit their plans for any operational or physical changes before they occur to s...
Companies with operations subject to the Clean Air Act are required to submit their plans for any operational or physical changes before they occur to see if they’ll have a significant affect on air quality. This program is called the New Source Review preconstruction permitting program, or NSR program. EPA is making some changes in the way fugitive emissions are figured into the equation to determine if the changes to existing sources will be considered a major modification to the company’s air permit.
⚡ TL;DR: EPA repealed the 2008 fugitive emissions exemption for major modifications, meaning all existing major sources must now count fugitive emissions toward NSR thresholds. Facilities planning facility modifications must obtain major NSR permits if fugitive emissions alone could trigger major modification status.
⚠️ What’s at stake: A facility planning facility improvements that previously qualified as minor modifications under the 2008 exemption may now be classified as major modifications, requiring a major NSR permit with full emission control measures, 30-month permitting timelines, and construction delays. Non-permitted modifications trigger EPA enforcement with penalties of $50,000+.
The NSR Program
EPA’s NSR program wants to make sure that a company’s changes will not significantly affect air quality of the area. In the U.S., there are cities and regions that have air quality levels that are above EPA’s National Ambient Air Quality Standards. These areas are called “non attainment” areas and industries in those areas have additional rules, regulations and restrictions they need to follow as a result. In other cities and regions that are still below the national standards, EPA wants to make sure a company’s changes don’t significantly deteriorate the area’s compliance so that they can stay below non attainment. This program is called the Prevention of Significant Deterioration, or PSD program. The NSR program looks to see if your new operations will become a new major source of air pollution, or if any changes to your current major source permit would be considered a major modification, depending on certain thresholds.
Fugitive Emissions
When making this determination, EPA counts fugitive and stack (non-fugitive) emissions. A fugitive emission is one that could not reasonably pass through a stack, chimney, vent, or similar opening. Historically, for new sources to become new major sources, only certain type of sources belonging to a specific list would have to count fugitive emissions toward the threshold. Existing sources would have to count both fugitive and non-fugitive (stack) emissions. However, in 2008, EPA finalized a rule for existing sources that would also allow them to only count fugitive emissions only for certain types of major sources belonging to specific categories.
The Proposed Changes
The specific categories of sources that had to count fugitive emissions were petroleum refineries, large fossil fuel-fired steam electric plants, and Portland cement manufacturers. Everyone else was not required to include fugitive emissions. However, EPA wants to repeal that 2008 rule for major modifications. Now, all existing major sources would need to count fugitive emissions toward the major modification thresholds. Anytime a company’s changes are considered a major modification, they need to obtain a major NSR permit before moving forward with construction. The permit will require emission control measure to ensure that changes won’t degrade air quality. Another change that EPA is proposing is to remove a provision established in 1980 that exempts certain stationary sources from substantive major NSR requirements if the only reason the change is considered a “major modification’ is because fugitive emissions are included.
If your facility operates under a Title V air permit and you have facility modifications planned—equipment upgrades, process changes, or facility expansions—the fugitive emissions rule change directly affects your permitting timeline and control requirements. iSi Environmental conducts NSR applicability assessments and pre-permit emission evaluations. Get an NSR pre-assessment →
💰 The cost of non-compliance: A facility proceeding with a major modification without an NSR permit faces EPA enforcement penalties of $50,000–$250,000, plus a Compliance Order requiring retrofit of emission control measures and operational cease-and-desist. Permit timelines for major NSR range 24–36 months, delaying facility improvements by 2+ years if not planned ahead.
Frequently Asked Questions
Q: What is the New Source Review (NSR) program?
The NSR program is EPA’s preconstruction permitting requirement under the Clean Air Act that mandates companies submit plans for operational or physical changes before implementation to assess their potential impact on air quality. Companies must obtain approval before making changes that could significantly affect air quality in their region.
Q: Who must count fugitive emissions in their NSR calculations?
Under EPA’s proposed changes, all existing major sources would be required to count fugitive emissions toward major modification thresholds. Previously, only specific categories like petroleum refineries, fossil fuel-fired power plants, and Portland cement manufacturers were required to include fugitive emissions in their calculations.
Q: What is the difference between the PSD program and the NSR program?
The Prevention of Significant Deterioration (PSD) program applies in areas that meet EPA’s National Ambient Air Quality Standards and aims to prevent air quality deterioration. The NSR program has two components: one for non-attainment areas with air quality above standards, and one (PSD) for areas below the standards, with the goal of maintaining continued compliance.
Q: What happens if my facility’s changes are classified as a major modification?
If your facility’s changes are classified as a major modification, you must obtain a major NSR permit before proceeding with construction. The permit will include emission control measures designed to ensure that the changes will not degrade air quality in your region.
The 2008 fugitive emissions exemption was a 14-year compliance safe harbor for major sources. Its repeal means facilities planning any modifications—especially in manufacturing, chemical processing, and energy sectors—need NSR applicability reviews before planning construction. iSi Environmental helps facilities assess whether planned modifications trigger major NSR permitting and evaluates fugitive emissions baseline.
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