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                                  Notice

This is not an official policy and standards document. The opinions and selections
are those of the authors and not necessarily those of the Environmental Protection
Agency. Every attempt has been made to represent the present state of the art as
well as subject areas still under evaluation. Any mention of products or organiza-
tions does not constitute endorsement by the United States Environmental Protec-
tion Agency.
  Because of the complexity of the regulations dealt with in this document, the
course material can provide only an overview. Any substantive decision on a par-
ticular case must be based on the current law and regulations and the facts of the
case.
  The provisions of the Clean Air Act and of EPA regulations are subject to
change by Congress and EPA. This document reflects the law and regulations as of
the date of publication only. Persons applying the rules must determine what provi-
sions of law and regulation apply as of the. date of application.
                                      11

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                          Introduction
This 15-hour self-instructional course will provide you with a comprehensive over-
view of regulations governing the prevention of significant deterioration (PSD) of
air quality. You will have an opportunity to view eleven slide/tape presentations
covering applicability determination, best available control technology (BACT)
analysis, air quality analysis, additional impacts analysis, and agency review. We
have also included, for your reference, a copy of the Workshop Manual used in the
Environmental Protection Agency's 1980 PSD workshops, a copy of Title I,  Part C
of the Clean Air Act (as amended August 1977), and the EPA PSD regulations as
of July 1981.

Instructions for Successful Completion of this Course

To successfully complete this course, we recommend that you follow these five
steps.
  1. Look over the questions on the examination. This will give you  an idea of
     what to look for as you view the slide/tape presentations. (The exam should
     be included in your course materials.  If it is not,  please contact the Air Pollu-
     tion Training Institute (APTI) at the  address listed on page 3 of this
     guidebook.)
  2. View, in order, the eleven slide/tape presentations.
  3. Read the sections in the  Workshop Manual pertaining to any topic;; about
     which you have questions.
  4. Take the final examination.
  5. Return the final examination, the slides,  and the audio cassettes to APTI.
     You may keep the other  materials. You will receive your examination  grade
     by return mail. If you achieved a grade of 70 or above on your  final exam,
     you will receive a course  certificate, and you will  be awarded 1.5 continuing
     education units (CEUs).

Course Materials

You should have received the following items in your package of course materials.
  •  Slide sets for Lessons 1 through 11.
  •  Audio cassettes for Lessons 1 through 11. (Note: A cassette may  contain more
   .  than one lesson.)
  •  The Prevention of Significant Deterioration— Workshop Manual.
  •  A copy of Title I, Part C  of the Clean  Air Act (as amended August 1977).
  If any of these items are missing, please contact the Air Pollution Training
Institute at the address listed on page 3 of this guidebook.

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Lesson number                     Tide                      Viewing time
       1           Introduction and Overview                   33 minutes
       2           Applicability Determination
                    in the Application: I                        20 minutes
       3           Applicability Determination
                    in the Application: II                       22 minutes
       4           BACT Analysis in the Application: I          23 minutes
       5           BACT Analysis in the Application: II         26 minutes
       6           Air Quality Analysis: I                       30 minutes
       7           Air Quality Analysis: II                      38 minutes
       8           Additional Impacts Analysis                  27 minutes
       9           Application Summary
                    & Introduction to Agency Review            37 minutes
      10           Agency Review of the Application: I          21 minutes
      11           Agency Review of the Application: II         30 minutes
Using the Slides and Tapes

Each lesson has a set of 35-mm slides and an accompanying audio cassette. The
audio cassette can be used in two ways. If your cassette player has a mechanism for
synchronizing an audio cassette and 35-mm slides, you can use the side of the
cassette marked "automatic advance." This .will cause the slides to advance
automatically while you listen to the tape.  If you  do not have equipment that
automatically advances slides, you can use  the side of the cassette marked "manual
advance." In this case you will have to advance the slides yourself.
To use automatic-advance equipment:
   •  Advance to the first slide (it will read  "FOCUS")  and focus the image. Leave
     this slide on the screen;  do not advance the slide  tray.
   •  Place the cassette in the cassette player so that the side marked "automatic
     advance" will play.
   •  Turn on the cassette player. The slides will advance automatically as the tape
     plays.
To use manual-advance equipment:
   •  Advance to the first slide (it will read  "FOCUS")  and focus the image. Leave
     this slide on the screen;  do not yet advance the slide tray.
   •  Place the cassette in the cassette player so that the side marked "manual
     advance" will play.
   •  Turn on the cassette player. Every time you hear a  "beep" (tone), you should
     advance to the next slide.

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Additional Information

If you have any questions about the final examination or about any other parts of
this course, please contact the Air Pollution Training Institute.
                     Air Pollution Training Institute
                     Environmental Research Center
                     US EPA
                     MD20
                     Research Triangle Park, NC 27711

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                                        SI:453
                                       Lesson 1
                          Introduction and Overview
Slide


 1.  (Focus)


 2-7. (Introductory slides)
Script
Selected Visuals
                                FOCUS
                                                                        Prevention of I
                                                                         Significant ,
                                                                        Deterioration j
                                          1-1

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Slide
Script
Selected Visuals
 8. This course deals with the Prevention of Significant Deteriora-
    tion of air quality. We will begin by introducing the key con-
    cepts and by presenting an overview of the course.
 9.  Our goal in this course will be to provide you with an
     understanding of key concepts in programs for the prevention
     of significant deterioration of air quality—known as PSD. You
     will also learn how permit review requirements apply, and
     what the basic steps of a review  are.

10.  Let's look first at the historical background of PSD as it is
     dealt with in  the law and in EPA regulations. If we know
     something about the origins and growth of the PSD program,
     it will be easier to understand its purpose and nature.

                                                                           i~     "  -i_ -tra
                                                                           OVERVIEW'OF PSb 'REGULATION
                                           • Key Concepts

                                           • Permit Review
                                            Requirements

                                           • Basic Steps of a
                                            Review
                                             Hiatonj
                                               tf
                                              PS©
11.  In 1970,  Congress passed amendments to the Clean Air Act.
     These amendments required States to submit State Implemen-
     tation Plans—or SIPs. These plans were to ensure that the
     national ambient air quality standards were both attained
     and maintained.
                                      1970 Clean Air Amendments

                                      • required SIPs to ensure
                                       NAAQS met and maintained
12.  As the amendments were being developed, committees of the
     House and Senate briefly discussed the question of how to deal
     with the air quality in areas where it was already better than
     the standards required it to be.
                                     1 how to deal with air quality in areas
                                      already better than standards
 13.  The Clean Air Act itself did not contain clear guidelines
     about the prevention of significant deterioration of air quality.
     However, those who supported a "non-degradation" policy
     later argued that prevention of significant deterioration was
     called for by a statement in the Act that read "to protect and
     enhance the quality of the Nation's air resources..."

 14.  In June of 1971, EPA proposed guidelines to help States
     prepare and submit their implementation plans. In these
     proposed guidelines, EPA did deal with requirements for the
     prevention of significant deterioration of air quality. But,
     because of comments from other Federal agencies, the final
     guidelines did not require States to have PSD provisions in
     their implementation plans.
                                       "to protect and enhance
                                        the quality of the Nation's
                                        air resources..."
                                              1971

                                        Proposed EPA Guidelines
                                         • jlunnclude PSD

                                        Final EPA Guidelines
                                         • did not include PSD
                                                 1-2

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Slide
Script
Selected Visuals
15.  So, EPA went on to review and approve State Implementation
     Plans without considering whether or not they would prevent
     air quality deterioration up to the ambient standards.

16.  The scheduled date for EPA's final decision on State
     Implementation Plans was in May of 1972. Just before that
     date, Sierra Club and three other environmental groups filed
     suit in the Federal District Court for the District of Columbia.
     The purpose of the suit was to prevent EPA Administrator
     William Ruckelshaus from approving any implementation
     plan provisions that would permit significant deterioration of
     air quality.
                                          • EPA SIP review and
                                           approval without
                                           consideration of PSD
                                                     1972
                                                   Sierra Club
                                                      o.
                                                  Ruckelshaus
17.  The District Court accepted the Sierra Club's arguments., and
     ruled that EPA had to disapprove any parts of a State
     Implementation Plan that would have permitted significant
     deterioration of air quality. The Court did not,  however,
     define "significant deterioration." Therefore, EPA had to
     adopt regulations which would define "significant deteriora-
     tion," prevent it from occuring, and tell States what PSD pro-
     visions had to be in an approvable plan.

18.  When EPA appealed the case, the District of Columbia Cir-
     cuit Court of Appeals agreed with the District Court. The
     Supreme Court divided equally oh the question, so the opinion
     originally written in the  District Court became EPA's entire
     guidance. The amplification and adjustment that is usually
     added by higher courts was not available to help EPA frame
     its regulations.

19.  In response to the Court's order,  EPA issued PSD regulations
     in the December 5,  1974 Federal Register.  These regulations
     influenced the shape of the PSD program.
                                      • court ruled In favor of Sierra Club

                                      • EPA had to:
                                        • define PSD
                                        « prevent it from occurring
                                        * tell states what provisions
                                     Appeals Court
                                                  Supreme Court
                                      earlier ruling
                                                  • divided equally
20. The regulations that EPA adopted declared that every State's
    implementation plan was disapproved with respect to PSD
    provisions.
21.  In place of the missing PSD provisions, uniform Federal
     requirements were made a part of each plan.
                                            1-3

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Slide
Script
Selected Visuals
22.  The regulations also stated what would be required in order
     for a State's plan to be approved.
23. The only two pollutants that were dealt with in the 1974
    regulations were total suspended paniculate matter—known as
    TSP (T-S-P), and sulfur dioxide-or SO2 (S-oh-two).
24.  "Significant deterioration" was defined in terms of a system of
     area classifications and permissible concentration increases
     called increments. The system covered all air quality control
     regions and the two pollutants TSP and SO2.
                                          Significant deterioration...

                                              • area classifications
                                              • increments
                                          For:
                                                                                  • all AQCRs
                                                                                  • TSP and SO2
25.  In Class I areas, which are the most highly protected areas,
     only small increases in predicted TSP and SO2 concentrations
     would be permitted. In Class II areas, larger concentration
     increases would be permitted. Under the  1974 regulations,
     Class III areas, which are the least protected, could have con-
     centration increases up to the national secondary air quality
     standards. Initially, all "clean air" areas were put in Class  II,
     but a State could change this designation to a I or a III.

26.  The basic way  that significant deterioration would be
     prevented was through  a  case-by-case review of proposals to
     construct new sources or modify existing ones. Eighteen
     point-source categories  were listed for review.

27.  Any new source or modification in one of these categories
     had to demonstrate that the best available control technology—
     BACT (B-A-C-T) or "bact"-would be installed.
                                       Class I - small Increases in
                                             concentration

                                       Class II - larger increases In
                                             concentration

                                       Class III • increases in concentration
                                             up to the secondary
                                             NAAQS
                                      • case-by-case review of proposals
                                       to construct or modify


                                      • 18 point-source categories
28.  A dispersion modeling analysis would predict how much the
     new source emissions would cause ambient pollutant concen-
     trations to increase.
                                              1-4

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Slide
Script
Selected Visuals
29. These final EPA regulations on PSD left both environmen-
    talists and industrial developers dissatisfied. There were
    lawsuits from both sides.
30. Legislation was introduced to do away with PSD requirements.
    In this atmosphere of uncertainty,  States were slow to take any
    action to assume responsibility for  PSD or to reclassify areas.
31. By 1976, Congress was ready to take some action on PSD,
    along with other troublesome areas of the Clean Air Act.
32. The Clean Air Act Amendments of 1976 were very hotly
    debated in Congressional Committees and on the floor in both
    houses. The controversy over prevention of significant
    deterioration provisions was so strong that the bill amending
    the Clean Air Act never passed.

33. When the 95th Congress convened in 1977, they began the
    amending process all over again. The result was the Clean Air
    Act Amendments of 1977.
                                               1976
                                         CAA Amendments Bills

                                            • hotly debated
                                            • did not pass
                                                     1977

                                                     CAA
                                                  Amendments
34. The 1977 amendments confirmed that Congress did indeed
    intend PSD to be part of the national air pollution control
    program. They added a new Part C, "Prevention of Significant
    Deterioration of Air Quality," to Title I of the Clean Air Act.
    Part C was based largely on EPA's existing regulations, but it
    made some changes which we will briefly examine.
                                             CAA
                                             TKtol
                                             PutC

                                            Sferiflcam
                                           1-5

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Slide
Script
     Selected Visuals
35.  All of the new language in the Act describes requirements for
     State Implementation Plan provisions on PSD. EPA is
     supposed to control the program only when States don't have
     approvable plans. State action has been slow, however, so
     EPA regulations apply in many areas.  Even where the State
     has an approved PSD plan, it is likely to follow EPA's model
     closely.

36.  The first thing States had to do under the 1977 Amendments
     was to classify their Air Quality Control Regions — or
     AQCRs.
                                        Air Quality Control Regions
                                              (AQCRs)
37.  For each AQCR, they had to make a formal finding as to
     whether it met National Ambient Air Quality Standards, did
     not meet them, or could not be classified using available data.
     With some legal complications, this classification applied to
     all criteria pollutants— in other words,  those pollutants listed
     for ambient standards.
                                         Air Quality Control Regions
                                               (AQCRs)

                                          • NAAQS met?
                                          • for all criteria pollutants
38.  An attainment area is one meeting a standard for any
     pollutant; a nonattainment area is one not meeting a
     standard.
                                            Attainment Area

                                        • meet* standard for pollutant


                                           Nonattainment Area

                                        • does not meet standard for
                                         pollutant
39.  For example, a region could be attainment for paniculate
     matter, nonattainment for sulfur dioxide, unclassifiable for
     ozone, and so forth.
40.  PSD plans had to be developed for both attainment and
     unclassifiable regions.
TSP
                                               so,
                   o,
                                                                      Attainment  Nonattainment  Unclassifiable
                                       Attainment      Unclassifiable
                                                                               PSD Plans
                                                                                Required
41.  Congress used the PSD system EPA had developed in its 1974
     regulations as a basis for the 1977 amendments. They made
     some changes, however, in turning the  regulations into law.
     Specific numbers were agreed on by compromise for
     permissible increment values—but still for TSP and SO2 only.
                                        1974
                                        EPA
                                      Regulations
                                            •1-6

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Slide
Script
Selected Visuals
42.  The EPA regulations had allowed Class III areas to
     deteriorate to secondary ambient standards, but Congress now
     set Class III increments. The law did not allow any increase
     that would result in pollutant concentrations that would be
     higher than the ambient standard.

43.  Certain areas where  natural and scenic values were important
     were automatically put in Class  I, the most highly protected
     class.  These included large national parks and wilderness
     areas. Certain national parks must remain Class I,  and
     reclassification of other Class I areas is restricted.
44.  The process of reviewing proposals to construct major new
     sources or modifications is the principal means of carrying out
     the PSD program. It is the focus of most of the rest of this
     course. Congress was aware of the importance of the review
     process from EPA's experience, and made changes intended to
     increase the review process's scope and effectiveness.

45.  The original list of 18 source categories was later expanded to
     include 28 source categories.
46. Any source in one of these categories emitting 100 tons
    (or more) per year of any pollutant is subject to PSD review.
    Furthermore, if a source is not on the list and emits 250 tons
    (or more) per year, that source, too, is subject to review.
                                                                             ' PSD review required
47.  A definition of "best available control technology" —
     BACT (B-A-C-T) —was written into the Act.
                                          Best Available Control
                                              Technology
                                               (BACT)
48.  This level of emissions control is decided on a case-by-case
     basis, taking all costs and impacts into account to determine
     what is achievable for the proposed installation. BACT can
     never be less strict than New Source Performance Standards,
     and it applies  to all pollutants regulated under the Clean Air
     Act.
                                          Best Available Control
                                              Technology
                                               (BACT)
                                       • decided on case-by-case basis
                                       • takes cost/impacts into account
                                       • is never less strict than NSPS
                                       • applies to ^pollutants regulated
                                        under CAA
                                             1-7

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Slide
Script
Selected Visuals
49. The 1977 amendments added several increased technical
    requirements to PSD programs. One important change was
    that a source owner had to monitor the ambient  air for a year
    before beginning construction on a new or modified source.
    Another change required EPA to adopt regulations on the
    pollution dispersion models used to predict ambient
    concentrations.
                         Increased Requirements

                         • source owner had to monitor
                          ambient air for a year before
                          beginning construction

                         • EPA required to adopt
                          regulations on dispersion models
50. There was no experience with a PSD program for pollutants
    other than TSP and SO2. Therefore, Congress directed
    EPA to make a study of possible ways of preventing significant
    deterioration with respect to other pollutants, referred to as
    "Set II" pollutants.  The study is to look at methods other than
    the increment method to see if there are other ways of carrying
    out PSD. As of late 1982, results of this study had not been
    completed, and the increment method is used only for TSP
    and SO2.
                         ' EPA to make study of way
                         to prevent significant
                         deterioration with respect
                         to Set II pollutants
51.  Even after the 1977 Congressional action to amend the Clean
     Air Act, many aspects of the PSD program remained
     controversial and ambiguous. In 1978, two major lawsuits,
     involving both industry and environmentalists,  were filed
     against EPA. The final decision in the more complex case,
     Alabama Power Co. vs. Costle, was issued by the District of
     Columbia Circuit Court of Appeals in December 1979. This
     decision settled many disputes about definitions and about
     how the Act applied to different construction and modification
     situations. EPA was required to change its regulations to agree
     with the court decision.  It did so on August 7,  1980.

52.  As a result of these actions by Congress, the executive branch,
     and the courts, we now have a mixture of  statute law,
     administrative regulations,  and court interpretations
     regulating the prevention of significant deterioration.
                         • Alabama Power Co. v. Costle

                         • EPA required to change its
                          regulations
                                  • Administrative
                                   Regulations
                                                                                    • Court
                                                                                     Interpretations
53.  In the law—the Clean Air Act —we find statements of the
    fundamental purposes and basic procedural requirements of
     the PSD program. Although this part of the Act is detailed
     and complicated, it is basically like other parts. That is, the
     law mainly directs EPA to adopt and enforce administrative
     regulations to carry out the program that the Act calls for.
                         1 Fundamental Purposes

                         ' Basic Procedural
                         Requirements
                                              1-8

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Slide
Script
Selected Visuals
54.  Congress stated that the PSD provisions were written into the
     Clean Air Act for several related purposes. The first of these
     was to protect the public health and welfare from any adverse
     effects that might occur even though national ambient air
     standards were met.
                           • to protect the public health
                            and welfare
55.  Another reason was to make sure that the natural and
     recreational quality of parks and other scenic or historic areas
     was preserved.
                                                                           • to ensure preservation of the natural
                                                                            and recreational quality of parks and
                                                                            other scenic or historic areas
56.  Congress also wanted to ensure that there was a balance
     between economic growth and preservation of air quality: that
     neither was neglected because of the other.
                                                                          • to ensure a balance between economic
                                                                           growth and preservation of air quality
57.  A fourth reason for the PSD provisions was to prevent States
     from interfering with one another's PSD  plans. All of these
     ends were to be met through a process which includes
     informed public participation in decision making.
                       * to prevent states from interfering with
                        each others' PSD plans
58. As we noted above, the 1977 Amendments automatically put
    certain larger areas—like national parks, monuments, and
    wilderness areas—in Class I, the most highly protected
    category. Some areas are "frozen" in Class I; other scenic or
    recreational areas may be designated as only Class I or II, and
    some areas cannot be changed from Class II to Class III.

59. All other areas where the secondary National Ambient Air
    Quality Standards are met —or which cannot be classified—
    are initially put in Class II, but may be redesignated by the
    States to either Class I or Class III, except, as noted previ-
    ously, there are some areas that cannot be redesignated from
    Class II to Class III.
60.  The process by which States can redesignate PSD areas is
     rather complicated. While it is easy for a State to reclassify
     up—to Class I — redesignation to Class III, the least restrictive
     category, requires that the different branches and levels of
     government within the State agree to the redesignation. If
     Federal lands are included, the Federal Land Manager may
     take part.
                                               1-9
                                Class II
                              redesignation to
                         Class I
                          is easy
             Class III
             is difficult

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Slide
Script
Selected Visuals
61.  If a State wants to reclassify an area to Class III, it must first
     notify the public and hold hearings at which the public may
     present comments and arguments. The comments  and
     arguments are to be made part of the official record on which
     the reclassification is based.
62.  After the State completes its action to redesignate a PSD area,
     EPA reviews the record.  EPA may disapprove the redesigna-
     tion in only two  cases: If there is an error of legal procedure,
     or if the action would violate a classification that is mandatory
     under the Act.

63.  Changing the designation of an area can lead to
     disagreements between States or with Indian tribes.
                                        EPA may disapprove the redesignatlon -

                                           • if there la an error of legal
                                           procedure

                                           • If the action would violate a
                                           mandatory classification
                                                      Redeslgnadon
                                                       may lead to
                                                      disagreements.
                                                                                   F
64.  The Act provides that such disagreements will be resolved by
     the EPA Administrator.
                                                      Disagreements
                                                      to be resolved
                                                       by the EPA
                                                      Administrator*
65.  Besides setting out the system for classifying and redesignating
     PSD areas, the Clean Air Act establishes emissions increments
     and ceilings for the three classes. A "baseline" concentration
     is set for new or modified sources.
                                           • emissions increments
                                            and ceilings
66.  The increment is the amount that the concentration is allowed
     to increase over that baseline. There are different permissible
     increments for TSP and SO2, and for area classifications and
     averaging times.
                                                Increment

                                         • the amount that the concentration
                                          is allowed to Increase over a
                                          baseline concentration
67.  As an example, here are the increments for TSP and SO2 in
     Class I, II, and III areas. There are some other special
     increments for certain exceptional cases.
                                         ALLOWABLE PSD INCREMENTS (M9/mJ)

                                        Pollutom  n™P»nod Clou I  QOJJ II  Ctaji ill
                                              annual
                                              24JXXK
        9
        10
10
37
37
75
                                                                            SO,
                                                                                 ' annual
                                                                                  24-hour
                                                                                  3-hour
                                                    2   10
                                                    3   91
                                                   29   512
                40
                102
                700
                                               1-10

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 Slide
Script
Selected Visuals
 68.  Remember that there is also a ceiling on increases —in no case
     may a change result in concentrations that are higher than the
     lowest applicable National Ambient Air Quality Standard.
                                               Ceilings

                                          • changes may not result In
                                           concentrations higher than the
                                           lowest applicable NAAQS
 69.  To meet the goals just set out, it is important to be able to
     predict the effects of proposed construction or modifications.
     For this reason, the heart of the PSD program is the process of
     developing and reviewing proposals for major construction
     or modification. This development and review process will be
     what we concentrate  on in the body of this course.
                                              PSD Program
70. The review process leads to the issuance of a permit to
    construct or modify, with Federally enforceable emission
    limitations attached. The limitations help ensure that the
    impact of the new operation will be no greater than was
    predicted in the review, and that the agency that issued the
    permit can make  the source correct  any violations.

71. The permit application review and analysis takes place in two
    places: within the agency and by the public. Much of the
    technical work must be done within the reviewing agency—
    the EPA, or State or local agencies that have received author-
    ity for the program from EPA. After this review, the agency
    must make the review data, analyses, and impact estimates
    available for public review and hearing. Comments received
    from the public are taken into account in issuing, denying, or
    putting conditions on the permit to  construct or modify.

 72.  Most of the workings of the permit  review system are spelled
     out in EPA regulations found in 40 CFR 51.24. Before we go
     on to the details of these requirements, we should look at
     some basic concepts we will be using throughout the course.
                                                  • Impact will be no
                                                  greater than waa

                                                  ravlaw

                                                  • agency can make

                                                  vtolannv
                                            Permit Application
                                           Review and Analysis

                                            • within the agency
                                            • by the public
                                             40 CFR 51.24
 73.  One of the major effects of the decision in Alabama Power
     was that it modified certain important definitions. Among
     these is the definition of potential to emit. Potential to emit is
     the maximum capacity of the source to emit a pollutant under
     its physical and operational design.  We will look at this more
     closely in Lesson 2. In assessing potential to emit, we must
     consider air pollution control equipment and Federally
     enforceable restrictions on operating hours or types of material
     stored, burned, or processed.
                                           Potential to Emit
                                         • maximum capacity to emit
                                         • given source's physical/
                                          operational design
                                              1-11

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Slide
Script
Selected Visuals
74.  Another definition that changed was that of a stationary
     source. A stationary source—subject to PSD review—is a
     building, structure, facility, or installation whose units  fall
     within the same standard industrial grouping. The units must
     be located on contiguous or adjacent properties, and under
     the operating control of the same person or persons under
     common control.
                                              Stationary Source

                                          • building, structure, facility, or
                                           installation
                                          • units (all within same standard
                                           industrial grouping
                                          • located on contiguous/adjacent
                                           properties
                                          • under operating control of same
                                           person/company
75.  A major stationary source is one which is on the list of 28
     categories given in the Act, and which emits 100 tons (or
     more) per year of any pollutant regulated under the Act. It is
     also any source which emits 250 tons (or more) per year of any
     regulated pollutant. If a modification to any source meets the
     definition of a major source, then the  modification is reviewed
     as a major source.

76.  A major modification —also subject to PSD review—is  a
     modification at a major stationary source which results  in a
     significant increase in emissions of any regulated pollutant.
     "Significant increase" is defined in a detailed listing at
     40CFR51.24(b)(23).
                                            ^Jajor Stationary Source
                                       • on IM of 2s
                                       • emttB 100 too* or
                                        more per year of
                                        any regulated
           • onila 250 ton* or
           own par year of
           •ny regulated
           pollutant
                                             Major Modification

                                         • modification at a major stationary
                                          source

                                         • results in significant Increase in
                                          emissions of any regulated pollutant
77.  Finally, construction requiring review is defined as any
     physical change or change in method of operation that results
     in a change in the amount of actual emissions.
                                               Construction

                                          • any physical change jjj change
                                           In method of operation

                                          • results in change In amount of
                                           actual emissions
78.  Construction is commenced when all permits have been
     secured and when actual on-site construction work begins, or
     when a binding agreement for construction work is signed.
                                        Commencement of Construction

                                        • when actual    • when a binding
                                         on-site        agreement for
                                         construction    construction
                                         work begins    work is signed
79.  The regulations we are studying apply geographically to all
     areas classified as either attainment or unclassifiable for any
     criteria pollutant.
                                     PSD
80.  If the State does not have an approved PSD implementation
     plan, EPA rules apply. However, EPA may delegate some or
     all authority to the State. If a State receives delegation,  it
     must apply Section 52.21 as if it were the Administrator of
     EPA.
                                                1-12
                                                                                    y_

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Slide
Script
Selected Visuals
81.  When a State has an approved PSD plan, its own rules apply,
     but these must follow conditions laid out  in 40 CFR 51.24.
82.  The sources to which PSD regulations apply are the major
     stationary sources we defined a little earlier. If such a source
     is constructed or modified, then a PSD review is required.
83.  It is important to remember that PSD requirements apply to
     all pollutants regulated under the Clean Air Act —not just to
     the criteria pollutants. This means any pollutant which is
     regulated under New Source Performance Standards or
     National Emission Standards for Hazardous Air Pollutants
     must be controlled by BACT,  and its air  quality impacts must
     be assessed.
                                          PSD requirements apply to all
                                          regulated pollutants...

                                             • NAAQS pollutants
                                             • NSPS pollutants
                                             • NESHAPs pollutants
84.  For the criteria pollutants, the review process must predict
     whether or not the proposed construction will cause pollutant
     concentrations to exceed any National Ambient Air Quality
   .  Standard. For TSP and SO2, the reviewing agency must also
     determine how much of the available increment will be used
     up by the proposed operation.

85.  To begin the review process, the organization proposing to
     build or modify a source submits to the reviewing agency a
     description of the proposal. This description includes the
     location, design,  and operating specifications of the source.
     The construction schedule is outlined.
                                          For criteria pollutants...

                                           Will NAAQS be exceeded?
                                         Description of Proposed
                                        Construction/Modification

                                          • location
                                          • design
                                          • operating specifications
                                          • construction schedule
 86.  An analysis of the control technology is used to show whether
     or not the technology is the best available for each applicable
     pollutant.

 87.  The organization must also submit air quality and
     meteorological data representative of the source site.
                                         • analysis of control
                                          technology is used to
                                          show if it is best available
                                         • organization must
                                         submit air quality and
                                         meteorological data
                                              1-13

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 Slide
Script
Selected Visuals
88.  On the basis of the information submitted, the reviewing
     agency verifies the BACT analysis. Generally, a reviewing
     agency evaluates the applicant's predictions of source impacts
     on NAAQS and on increment consumption. Further, the
     agency estimates the air quality impacts of all  pollutants
     regulated under the Act. It also evaluates the effect of air
     quality impacts on visibility, soils, vegetation, and other air
     quality related values.

89.  After completing its analyses, the reviewing agency makes its
     information and findings available to the public. A hearing is
     held, and a formal record made of all comments and
     arguments.
                                             Reviewing Agency .

                                          • verifies BACT analysis
                                          • evaluates Impact prediction on
                                           NAAQS and increment
                                           consumption
                                          • estimates impacts of all
                                           regulated pollutants
                                          • evaluates effect of impacts on
                                           visibility/soils/vegetation
90.  On this basis, the agency decides whether or not to issue a
     permit.
91.  If it does issue a permit, conditions are attached to ensure
     that increment consumption is no more than planned, that
     ambient standards are not violated, and that other adverse
     impacts are avoided.
                                                 • NAAQS not vtobnd
                                                                                     • other advene effect!
                                                                                     •voided
 92.  After a permit application has gone through agency technical
     review, public hearing, and final agency action, it must
     undergo one more stage of review. If the State has an approved
     PSD plan, this review will be whatever State law calls for on
     administrative actions of this kind —perhaps an Environmental
     Board of Review. If EPA has delegated review duties to the
     State,  EPA will review the  permit process. This EPA review
     will be more or less detailed, depending on how much
     authority has been delegated to  the State.

 93.  At least  one thing is clear from  this background discussion: we
     are dealing with a complicated subject where law,
     administrative regulations, and  technology interact. We shall
     spend  the balance of this course studying in more detail  how
     this PSD system works.
                                              1-14
                                          [>/<| Technical Review

                                          |(X| Public Hearing

                                          \tS\ Final Agency Action

                                          [  | Review

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 Slide
Script
Selected Visuals
 94.  Remember that our overall goal for this course is to provide
      you with an understanding of key PSD concepts, and specific
      guidance on determining which review requirements apply to
      proposed sources and modifications, and how they are
      applied.

 95.  Our specific objectives are  to make you able to: determine
      what proposed construction is subject to PSD review;
      determine what analyses must be performed; understand the
      procedures for required analysis;  and understand  review
      agency responsibilities and procedures.

 96.  In unravelling our topic, we will first look at what goes into a
      complete application to build or modify a major  stationary
      source. We  will discuss the  applicant's obligation to determine
      whether or not PSD regulations apply to the source.

 97.  We will go on to examine how the applicant describes and
      analyzes control technology to show that  BACT is applied. We
      will then study air quality impacts analysis and analyses of
      other impacts.

 98.  Coming at the topic from the other direction, we will contrast
      the reviewing  agency's responsibilities and approach. We will
      see how the  agency verifies geographic and pollutant
      applicability. We will look at how the agency checks the
      applicant's BACT analysis. We will see how the agency  examines
      air quality and other impacts analyses, and whether it goes on to
      do further analyses of its own.

 99.  We will conclude the  course with a lesson reviewing and
      summarizing the entire  topic. When you are satisfied  that you
      understand  the material,  you may take the multiple-choice
      final exam for course credit.
                                                    Goals

                                            1 provide understanding of key
                                             PSD concepts
                                            • provide specific guidance on
                                             determining review requirements
                                            • what construction is subject to
                                             PSD review
                                            • what analysis must be performed
                                            • the procedures for required
                                             analyses
                                            • review agency responsibilities
                                             and procedures '
                                            • the application
                                            • the application
                                            • description and analysis to show
                                             that BACT Is applied
                                            • Air Quality Impacts and other
                                             analyses
                                            • the application
                                            • description and analysis to show
                                             that BACT is applied
                                            • Air Quality Impacts and other
                                             analyses
                                            • reviewing agency's responsibility
                                             and approach
100.  (Credit slide)
                                                                                    Introduction and Overview
                                                                                        •I Co«t«tt: John M«o*«v
                                                                                    IntnKthxul D**tffl: Monte* Uilt*
                                                                                        Gnphlci: B*m Hubvr
                                                                                          Ha: Dairtd Chared lit
                                                                                          M: Rich Pilaw*
101.  (Northrop slide)
                                                                                    Northrop Services, Inc.
                                                                                        under
                                                                                   EPA Contract No. 68-02-3573
                                                  1-15

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Slide                                                   Script                        Selected Visuals



i f\f\  / » T   Y       l • 1 \                                                              B*««d In part on the:
102.  (Northrop slide)                                                                 1980 PSD Workshops
                                                                                           prcpuvd for (he
                                                                                      U.S. Environmental Protection
                                                                                             Agency
                                                                                     Office of Air Quality Planning and
                                                                                            Standards
                                                                                      TRW. Inc.. En*4nMuo*nt*l Enfiiwrrtnt Dl*t>ion

                                                                                           .Nonbrop S*«vK««. toe

                                                                                          EPA COMTMI No. 6MU-31T4
103.  (NET slide)                                                                  Northrop
                                                                                    Enyirpnmencal
                                                                                    Training
                                                   1-16

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                                             SI:453
                                            Lesson 2
            Applicability Determination in  the Application: I
Slide

 1.   (Focus)

 2.   (Introductory slide)
Script
Selected Visuals
                                         FOCUS
 3.  This is Lesson Two, "Applicability Determination in the
    Application, Part One."
                                   Applicability Determination in
                                       the Application: I
 4.  In this lesson, we'll look at the beginning of the PSD
    application and review process. Before anything else happens
    under PSD law and regulations, someone has to decide
    whether or not PSD requirements even apply to the construc-
    tion or change proposed.

 5.  Most  of the time, this determination of applicability is made
    by the organization that wants permission to construct or
    modify—the applicant.
                                  Do PSD requirements apply?
 6. In general, two things will determine whether PSD review
    applies to a source and what has to be reviewed.
                                    • Does PSD review apply?

                                    • What has to be reviewed?
 7. The first is geographic location, the type of area in which the
    source is or will be located. The second is the size and nature
    of the source itself.
     In Lesson One, we saw that States had to designate all areas
     in their boundaries as attainment, nonattainment, or
     unclassifiable. This designation depends on whether an area
     meets or does not meet a National Ambient Air Quality
     Standard for any criteria pollutant.
                                            Type of Area
                                                                                • Size and Nature
                                                                                 of Source
                                        • Attainment
                                        • Nonattainment
                                        • Unclassifiable

                                     NAAQS met for criteria
                                     pollutant?
                                              2-1

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Slide
Script
Selected Visuals
 9.  The designation can be different for different pollutants and
     it usually is. We will call any area that is either attainment or
     unclassifiable for any pollutant a PSD area for that pollutant.
                                    Attainment or Unclassifiable

                                          PSD Area 4?

                                          Possible
                                         PSD Review
10. In general, PSD review requirements will apply to a source or
    modification that is major for a pollutant if the proposed
    location is a PSD area for that pollutant. We will turn to the
    definition of a major source or modification in a moment. If
    an area is nonattainment for a certain pollutant, special
    nonattainment area plan requirements will apply. Often,  a
    proposed source will have to get PSD review for some
    pollutants and nonattainment plan review for others.

11. Within a PSD area, new major sources and major
    modifications are subject to PSD reviews.  To understand what
    these sources and modifications are, we must first define some
    special terms—source and emissions unit. Then we'll have to
    see what makes a source or a change to one, major.

12. The PSD regulations define a stationary source in a special
    way. This definition can be condensed to all stationary emis-
    sions units—in the same industrial grouping—on contiguous
    or adjacent properties and under control of the same person
    (or persons under common control).

13. An emissions unit is any part of a stationary source that
    emits—or has the potential to emit—any pollutant regulated
    under the Clean Air Act.  Notice that this includes any
    regulated pollutant, like hydrogen sulfide, regulated  under
    New Source Performance Standards,  or vinyl chloride,
    regulated under hazardous emission standards.

14. Most of the time, all the emissions units at one location will
    fall  into the same industrial grouping, but this is not always
    so. The industrial groupings are defined as the "major groups"
    in a Commerce Department reference called the Standard
    Industrial  Classification Manual.
15.  This manual assigns 4-digit codes to different types of
     industry. All activities within the same major group have
     Standard Industrial Codes that begin with the same two digits.
     For example, SIC 28 stands for Chemicals and Allied
     Products.
                                             2-2
                                      PSD Review Required

                                      • source or modification
                                       that la major for pollutant
                                       If in PSD area for that
                                       pollutant
                                  • New Major Sources
                                  • Major Modifications
                                           Source

                                    All stationary emissions units-
                                    in the same industrial grouping-
                                    on contiguous or adjacent
                                    properties -
                                    and under control of the same
                                    person (or persons under
                                    common control).
                                        Emissions Unit

                                     any part of a stationary source
                                     that emits - or has the potential
                                     to emit •
                                     any pollutant regulated under
                                     theCAA

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Slide
Script
Selected Visuals
16.  There is seldom any problem with determining if emission
     units are on "contiguous or adjacent properties."
17.  Also, determining if emission units are under control of the
     same person (or persons under common control) isn't usually a
     difficult question.
18.  One thing about defining a source may require a closer look,
     however. This is whether closely related activities of the same
     organization on the same property fall within the same SIC
     major grouping. If they are not in the same major  grouping,
     they are considered to be more than one source. This can
     make a difference in whether  PSD review is required, what
     kind of review it must be,  and which units need review.
                                           activities not
                                        In same major grouping
                                         considered more than
                                            one source
19.  A mine-mouth coal-fired power plant,  for instance, breaks
     down into two sources, mining operations and electric power
     generation.
                                     Mine-mouth coal-fired power plant
                                        Mining   Electric Power
                                       Operations   Generation
20.  When we want to determine if PSD review applies, our first
     step is to see how the definition of source fits the proposed
     construction or modification.
21.  To define the source on which PSD review must be per-
     formed, we check which emissions units in the same SIC
     major grouping are on the same or adjacent sites, and under
     the same ownership or control.
                                     To define source subject to
                                          PSD review...

                                       • emission units
                                       • major grouping
                                       • same or adjacent sites
                                       • ownership
22.  Our second step is to decide if the stationary source is major
     or not. We do this on the basis of the source's potential to
     emit pollutants regulated under the Clean Air Act.  It will take
     us a few minutes to discuss  what potential to emit is, and how
     it is estimated.  Then,  we will see how it is used to classify  a
     source or modification.
                                       Is the source major?

                                      • Potential to Emit (PE)
                                              2-3

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Slide
Script
Selected Visuals
23.  A brief definition of potential to emit is: "The capability—at
     maximum design capacity,
                             Potential to Emit

                             • "the capability • at
                              maximum capacity •
24.  to emit a pollutant,

25.  after the application of air pollution control equipment,
                              to emit a pollutant -
                              after the application
                              of air pollution control
                              equipment -
26.  considering Federally enforceable permit restrictions." This
     definition needs considerable explaining. In places, it's even
     more complicated than it first sounds.

27.  Let's take the critical terms of the "potential to emit"
     definition one at a time. First is the capability of the
     source—at maximum design capacity—to emit any pollutant
     regulated under the Clean Air Act.
                              considering enforceable
                              permit restrictions"
                          ^a«».'$k.t-:^5ft
28.  This means that we must have a way of estimating the
     emissions from the new source or modification. Remember,
     the source may not exist yet, so its emissions can't be
     measured directly.
29.  The estimation is an engineering analysis; we'll look at it more
     closely in a moment.
30.  Next, notice that potential to emit is figured after air
     pollution control equipment is applied.
31.  This means that on top of emissions estimates for the new
     source or modification, we must estimate how efficient the
     control equipment will be.
                             How efficient is the
                             control equipment?
                                              2-4

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Slide
Script
Selected Visuals
32.  Last, remember we said potential to emit was figured at
     maximum design capacity.
33.  But most sources don't operate at their full capacity all the
     time; few can. However,  PSD is a program that requires
     assurance that its goals will be met.
34.  One of the most important things affecting those goals is the
     actual potential to emit of a new source or modification. To
     make sure that a source will operate somewhere under its
     maximum emission rate,  all day, every day,  8760 hours per
     year, we need Federally enforceable permit conditions.
35. Federally enforceable permit conditions are operating rules
    written into the legal document diat allows building or modi-
    fying the source and then operating it.
36.  If an applicant intends to run a plant for only two shifts a
     day, about 16 hours, then they will have to agree to a permit
     condition limiting hours of operation.  Otherwise, potential to
     emit has to be figured on 24-hour-a-day operation.

37.  Similar limits could be written on materials burned or
     processed at the source, or substances stored at it.
                                              To base PE on
                                           16-hour-a-day operation
                                           Permit Condition • limiting
                                             hours of operation
                                             2-5

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Slide
Script
Selected Visuals
38.  Any limit that isn't actually built into the way the source is
     made has to be Federally enforceable, that is, the control
     agency must be able to make the source do what the permit
     condition says by legal means: an administrative order or
     court order, for example.
39.  We've just finished saying that we decide whether a source is
     major or not by figuring its potential to emit any pollutant
     controlled under the Clean Air Act.
                                            Is the source major?

                                           • Potential to Emit (PE)
40.  The rate at which pollutants are emitted can be less than full-
     time, full-capacity, "dirty" rates if we allow for air pollution
     control equipment and Federally enforceable permit
     conditions.
                                         Less than full capacity rate
                                                  if:

                                            • control equipment
                                            • enforceable permit
                                              conditions
41.  We still need to see how the emission rates are figured and
     added up, and then what we compare the rates with. The
     process of calculating potential to emit for a source is an
     engineering analysis.
42.  Someone with a solid technical knowledge of the kind of
     source we're interested in has to examine its operation unit by
     unit. In most cases, the analyst will estimate the potential to
     emit for each emission unit, and then add potentials for all
     the units that make up the whole source.
43.  There are many ways of estimating the potential to emit of an
     emissions unit. The most accurate way is measurement by a
     performance test.

44.  If we're talking about emissions units at a source that already
     exists, where a modification will be made, the test can be
     done on the units we're actually concerned with.
                                            Performance Test
                                              2-6

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Slide
                       Script
Selected Visuals
45. Much of the time, however, we're concerned with emission
    units that haven't been built. We need ways of calculating
    what new emission units will do.
46.  We can't always make a reliable performance test on existing
     emissions units, either. It may be very difficult or physically
     impossible.
47.  So we may have to turn to different estimation methods for
     either a brand-new source or an existing one.
48.  Some of the information we need for estimating potential to
     emit of an emission unit can be found in:
         — Federally enforceable emission limits—regulations or
           permit conditions—for that unit.
49.
50.
- Emission data and guarantees from the vendor of the
 equipment.
-Data from Standards Support documents used by EPA
 to back-up national emission regulations.
                                           2-7

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Slide                             Script

51.      —Data from AP-42, EPA's Compilation of Air
           Pollutant Emission Factors.
                                                                 Selected Visuals
 52.
-Emission factors from technical articles and reference
 books.
53.
-Completed questionnaires used by States to put together
 their emission inventories.
54.  Using these methods of measurement and estimation, we can
     get at the potential to emit for "well-behaved" emissions units,
     the kind we think of immediately.
55. But there are other things which we have to count as emissions
    units. Some points and processes have fugitive emissions.
56.  The official definition of fugitive emissions says they are "those
     emissions which could not reasonably pass through a stack,
     chimney,  vent, or other functionally equivalent opening."
57.  What this boils down to is that fugitive emissions are
     substances that escape without a reasonable chance for con-
     ventional kinds of controls. Particulate fugitive emissions can
     come from units like coal piles,  dusty roads, or quarries.
     There are certain exemptions concerning fugitive emissions
     that will be discussed later.
                                             2-8

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Slide
Script
Selected Visuals
58. Volatile organic fugitive emissions can come from leaks in
    refinery piping or chemical plant processing equipment.
59.  There are ways of putting numbers on fugitive emissions
     though. Some emission factors are included in AP-42,
                                                                               i.:-^
60.  and a lot of studies have been done for EPA and trade
     organizations. The problem with using unofficial sources of"
     emission factors, however, is that the applicant will have to
     convince the reviewing agency that the source is reliable.
61.  One type of emissions not counted in totalling up potential to
     emit is secondary emissions.
 62.  Secondary emissions are emissions that occur ay a result of the
     construction or operation of the source or modification, but
     do not come from the source or modification itself. They do
     not include any emissions directly from any mobile source.
 63.  We are finally at a point where we can talk about potential
     emissions accounting — that is adding up the potential to emit
     of each emissions unit  to decide what size source we're dealing
     with. There is more to that than it sounds like.
                                             PE Accounting

                                             •  adding up the
                                               PE of each unit
 64.  Remember that we said that different emissions units at the
     same place could make up different sources—like that  mine-
     mouth power plant. If the emission units are  different sources,
     we have to be sure  to count the right units for the right
     source.
                                        Mine-mouth coal-fired power plant
                                            Mining    Electric Power
                                          Operations    Generation
                                             2-9

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Slide
Script
Selected Visuals
65. Another complication is that potential to emit has to be added
    up for each pollutant regulated under the Clean Air Act.

66. That includes six criteria pollutants, related to national
    ambient standards; nine other pollutants regulated under
    National Emission Standards for Hazardous Air Pollutants or
    New Source Performance Standards; and right now, five other
    pollutants that are listed but don't have  final regulations.
    Since the list is open-ended, there may be more by the time
    you see this lesson.

67. OK—what we have now is a list 15 columns wide, one for
    each regulated pollutant. The list is as long as the number of
    emission units at our source.  We add up the potential to emit
    by pollutant of all the emission units at  the source, and come
    up with a total potential to emit for each pollutant at the
    source as a whole.
                                            • PE accounting is
                                             pollutantispeciflc
                                               Pollutants
                                          Criteria     Noncriterta

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68.  This potential to emit for the entire source is what we use to
     decide if the source is major or not. This is going to make a
     difference whether we are talking about a whole new source
     or a modification at an existing source.

69.  There is  a double-barrelled definition for "major source."
     Congress made a list of 28 kinds of sources; large fossil-fuel-
     fired steam electric  plants;
70.  Kraft pulp mills, etc., which EPA wrote into the PSD
     regulations.
                                             •PE defines
                                             major status
                                           28 Named Categories
                                         2. Cod
                                         3. Kraft
                                            28 Named Categories
                                               (continued)
                                                                                    23. Ch-N^ul
                                                                                    24. FovMl-FiMl
 71.  If a source on this list emits or has the potential to emit 100
     tons per year or more of any regulated pollutant, it is major.
                                             2-10

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Slide
Script
Selected Visuals
72.  If a source not on the list emits or has the potential to emit
     250 tons or more per year of any pollutant regulated under
     the Act, then it is major.
                                                  not on list
                                                    +
                                                250 tons/year

                                                   Major
73.  Sometimes, it isn't clear what category a source falls in.
     Neither Congress nor EPA gave sharp definitions to the
     sources named on the list. Differences in what a power plant
     burns, or what its heat  input rate is,  can decide whether it's
     measured against the 100 or 250  tons per year yardstick. It
     often helps to check the source definition in a New Source
     Performance Standard regulation that would apply if the
     source were on the list.
74.  So far, we have discussed the basic building blocks for
     determining whether PSD review applies to a proposed new
     source or modification. They are:
          — What is the area classification?
          — What emission units make up the source or
            modification?
          — What is the total potential to emit of the proposed
            construction?
          — What does "major" mean for a new source or a
            modification?
                                              • Area Classification
                                              • Emission Units
                                              • Potential to Emit
                                              • Major Source/Modification
75.  In the next lesson we will use these ideas to put together tests
     to determine whether PSD review applies to a proposal. And
     if it does, what kind and how much.
                                             • Does PSD review apply?
                                             • If so, what kind and how
                                               much?
76.  (Credit slide)
                                               Applicability Determination
                                                 In the Application: I
                                                                                   Technical Connnl: John M«on*v
                                                                                      ul D«l*ti; Monica L«lt*
                                                                                      Graphic*: B*nv Hubcr
                                                                                      Bphv. Audio O**td Choicblll
                                                                                      IMuTMIon: Rick P«im*r
77.  (Northrop slide)
                                                                                    .Northrop Service*. Inc.
                                                                                        under
                                                                                  EPA Contract No. 68-02-3573
78. (Northrop slide)
                                                                                    (980 PSD Workshop.
                                                                                 U.S. Environmental Protection
                                                                                       Agency
                                                                                 Office of Air Quality Planning and
                                                                                      Standards
                                               2-11

-------
Slide                       Script                             Selected Visuals

79. (NET slide)                                                Northrop
                                                            Environmental
                                                            Training
                                    2-12

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                                              SI:453
                                            Lesson 3
            Applicability Determination in the Application: II
Slide

 1.  (Focus)

 2.  (Introductory slide)
Script
 3. This is Lesson Three, "Applicability Determination in the
    Application, Part Two."
Selected Visuals
                                             FOCUS
                                                          |
                                        I Applicability Determination In
                                        j    the Application: II
 4. In: the last lesson, we lined up the items of information we
    need to determine PSD applicability for a proposed new
    source or modification.
 5.  We looked at the classification of the area, PSD or nonattain-
    ment, for different air pollutants.
                                             Classification

                                            • PSD
                                            • Nonattalnment
 6. We saw how to define the new source or modification in
    terms of its emission units. Then we added up the potential
    to emit pollutants for the whole proposed construction.
                                    \
 7. Finally, we took our first look at the general definition of
    "major source."

 8. Now we have the pieces from which we can build three tests
    for applicability of PSD regulations.
         Test One—for new or existing sources is pretty simple.
         It checks whether or not the source is major.
         Test Two and Test Three—are more complicated and
         deal with emission changes at a source where a modifica-
         tion is proposed. These tests check for significant
         increases, and decide which pollutants require review.
                                            • Emission Units

                                            • Potential to Emit
                                             Major Source
                                         Test 1 Is the source major?
                                         Test 2 Are there any
                                             significant increases?
                                         Test 3 Which pollutants
                                             require review?
                                              3-1

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Slide
Script
Selected Visuals
 9.  Test One just says: "Is the source, new or existing, major for
     at least one regulated pollutant?" If the source is major by the
     100- or 250-ton criterion, we have to go ahead with a PSD
     review. If the source isn't major, and we aren't proposing a
     change so large it's a major source in itself, then no PSD
     review is needed.

10.  But remember, a source that's major for any pollutant is a
     major source, unless, of course, the area is nonattainment for
     that pollutant. If so, the nonattainment area rules apply to
     the  source for that pollutant.
                                                  Testl
                                             Is the source major?
   yes
   no
                                                    PSO review
                                                    no PSO review
                                               Major for any
                                           (Attainment) Pollutant
                                               Major Source

                                             ...regardless for what
                                              pollutant the area
                                                 is PSD
11.  The simplest case is an entirely new major stationary source in
     a PSD area. It will have to go through the rest of the PSD
     review process. Things are more complicated for
     modifications.
12.  To deal with modifications,  we need some more definitions.
     The first one is "modification" itself.
13. A general definition says a modification is "any physical
    change in a stationary source, or change in its method of
    operation that would increase its actual emissions of any
    pollutant regulated under the Act." There are some detailed
    qualifications and exceptions to this general definition.
                                               Modification

                                           • physical change
                                           • change In the method of
                                             operation


                                           • net emissions Increase
14.  Modifications that might require PSD review would include
     modified emissions units, new emissions units, or replacement
     emissions units.
                                           • modified emissions units
                                           • new emissions units
                                           • replacement emissions
                                               "™^™"
15.  But not every modification, not even at a major source, has to
     receive PSD review. It is only major modifications that must
     be reviewed.
                                            Only major modifications
                                            require review.
                                              3-2

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Script
Selected Visuals
16.  A "major modification" meets two conditions: it is a modifica-
     tion at a major source, and it "results in a significant net
     increase in emissions of any pollutant regulated under the
     Act."
                                             Major Modification

                                              • at a major source
                                              • significant net
                                               emissions increase
17.  By now, we have a pretty good idea of what a major source is,
     so that doesn't raise much of a problem in our understanding
     what a major modification is. But now we have something
     new to deal with—a significant net increase in emissions. We
     have to deal with two loaded words: "significant" and "net."

18.  "Significant" in  this context  means "it makes a difference to
     somebody," but how do you assign numbers to that idea?
     Well, it isn't a new problem in law and regulation.
                                              Significant Net
                                                Increase
19.  The solution is to pick a number based on the best informa-
     tion available and call that "significant." This is what EPA
     has had to do in its PSD regulations.
20.  For each pollutant regulated under the Clean Air Act, EPA
     has assigned a number of tons per year that will be treated as
     a significant increase.
                                            Significant Emiufon Rates
                                          [extracted from 40 CFR 51.24 (23MI)]
                                           SnUw OtaiM*: 40 toi.
                                           PMtcaUM MMtlc 23 tpv
                                           OKM* 441 Ipv of »J.lll. ofl
                                           U«l:0.ttev
                                               0.007 ipv
                                               i; 0.0004 tpv
21.  These amounts range down from 100 tons per year for carbon
     monoxide to eight-tenths of a pound per year for beryllium.
                                             Significant Emiision Rate*
                                                (continued)
                                                                             • Salfortc AcM MM: ' Ipy
                                                                             • Hydraem 5«llu* (H.SI: 10 tpv
                                                                             * Tout IUdMC«4 9«lto llflcladlnv H.SI: 10 tpy
22.  There's one further complication we have to keep in mind in
     talking about significant emission increases. It has to do with
     the special protection that Class I PSD areas must get.
                                              3-3

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Script
Selected Visuals
23.  If a major source that plans a modification is within 10
     kilometers of a Class I  area, we have to do air dispersion
     modeling to find out if the change is significant. Usually, we
     don't get to modeling until we're  evaluating all the air quality
     impacts of the source.

24.  For a source within 10  kilometers of a Class I area, any
     emissions increase that will make the air quality model predict
     an increase  in pollutant concentration greater than one
     microgram per cubic meter is significant.
                                           • major source
                                           • within 10 km of Class I area
                                            Air Dispersion Modeling
                                          Special Criteria for Sources within
                                           10 kilometers of a Class I Area
                                        1 any pollutants
                                         regulated undei
          1 any Increase which
           impacts the Cass I
           ana by greater than
           1 u&m' (24-hour
               i)
25.  All right, now we have something to compare our net emission
     increases to, to see if they're significant. Next we have to
     decide what the net actual increase is. The process of
     counting up emission changes to arrive at this number is
     usually called "netting." It can  be fairly involved.

26.  We can define  "net actual increase" by a simple-looking
     formula. It is: Net increase equals actual change from new
     and modified units minus creditable, contemporaneous
     decreases, plus  creditable contemporaneous increases. That's
     like telling you all bookkeeping is just running the basic
     accounting equation. The hard part is knowing what to plug
     in for each of the variables.
                                                 Netting

                                            • counting up emission
                                              changes '
                                             Net Actual Increase
27.  Once again, let's attack the problem by taking the key words
     one at a time. Contemporaneous means "in the same time
     period."
                                             Contemporaneous

                                            • in the same tune period
28.  For PSD, this doesn't necessarily mean an increase or decrease
     is made at exactly the same time as a modification.  They may
     happen during a "window" of time. Where EPA regulations
     apply,  the "window" opens five years before legal commence-
     ment of construction of the change. It closes when the change
     actually produces emissions. An approved State PSD plan can
     define  a reasonable period before the emissions increase as
     "contemporaneous."

29.  There  are quite a few conditions on what emission changes  are
     creditable. The idea is to make sure that we get actual, not
     "paper," decreases and increases credited to the net change.
                                                                                   Time Window
                                           • opens 5 years before
                                            commencement of construction
                                           1 closes when change actually
                                            produces emissions
                                           > or a reasonable period
                                            In a State plan
                                              Creditable Changes

                                             > actual • not "paper" •
                                              d*ecreases and increases
                                              3-4

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Script
Selected Visuals
30.  For this reason, if a decrease results from an operation cut-
     back, or something else that could be turned around, the
     decrease has to be Federally enforceable.

31.  Along the same lines, decreases may be counted only once.  If
     a decrease is applied to one permit application, it can't be
     used again on  a later one.

32.  Also, the decreases have to be the same pollutant type as the
     other changes  they're credited against and have similar effects
     on public health and welfare.
                                             Decrease resulting from
                                             operation cutback must
                                             be Federally enforceable.
                                                  Decreases

                                             • may be counted only once




                                                 Decreases

                                             • may be counted only once
                                             • must be same pollutant
                                              type  —————
                                             • must have similar effects
33.  When we start talking about specific pollutants, we have to
     remember that paniculate matter and sulfur dioxide are
     special cases. They have air quality increments associated with
     them.
                                                 TSP and SO2


                                                 Increments
34.  When we tie emission changes to other PSD requirements, like
     increments, we have to consider when the changes take place
     with respect to the baseline date.

35.  The baseline date is not connected with the construction of
     the source or modification we're analyzing. It's the "trigger"
     date for increment calculations that we'll be talking about
     under Air Quality Analysis.

36.  For now, keep in mind that the baseline date is triggered by
     the first  application in the area for a PSD permit involving
     specific pollutants. If there's one application for just
     paniculate matter on one date, and for volatile organics a
     year later, your area will have baseline dates a year apan for
     those two pollutants. You could wind up with about 15 dif-
     ferent baseline dates in one area, but it's not very likely.
     There is, however, some variability among  State programs.

37.  There's a difference as to  whether you can  credit an emission
     change,  depending on whether it's before or after the baseline
     date. With some detailed  qualifications, changes before the
     baseline date are creditable only if they are directly tied to
     construction, and at a major source.

38.  If the change is after the  baseline date, it may come from
     nonconstruction causes, like operating-level changes. Again,
     the regulations apply detailed qualifications to this simplified
     statement.
                                             • when changes take place
                                             • with respect to the baseline
                                              date         ^""~~""~
                                                 Baseline Date
                                             • "trigger" date for increment
                                              carculatlf ns
                                                 Baseline Date

                                             • "trigger" date for increment
                                               calculation
                                             • tied to specific pollutant
                                              Before Baseline Date

                                               Creditable only if:
                                               • tied to construction
                                               • at a major source
                                              After Baseline Date

                                              may come from
                                              nonconstruction causes
                                               3-5

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Slide
                                  Script
Selected Visuals
39. The process, netting, that we just got through describing is
    not simple. People generally don't do it in their heads. It
    requires going over the existing source, and the proposed
    change, emissions unit by emissions unit, for every regulated
    pollutant.
40.  You have to look at changes in the operating history of each
     unit for each pollutant. When you get through you add up
     the emission changes that come from modifying the source
     with all the other creditable contemporaneous changes.
41.  The results of those additions (remember there's one for each
     pollutant) are the numbers we need for Test Two.  Test Two
     asks: "Are there any significant net increases?"

42.  If any pollutant has a significant net increase under Test Two,
     then we have to continue with PSD review. This is so  even if
     the source is a major  source for a completely different
     pollutant.

43.  If we were dealing with a source that was major for hydro-
     carbons,  for instance, and our proposed change significantly
     increased only suspended paniculate matter emissions, we'd
     still have to do PSD review.
                                                                                   Test 2

                                                                              Are there any significant
                                                                              net increases?
                                                                             Significant Net Increase
                                                                                Continue with
                                                                                PSD review.
                                                                               source major for HC
                                                                                     +
                                                                            significant increase in TSP only


                                                                                 PSD review
                                                                                  anyway
44.  One thing to keep in mind about significant net changes is
     this: a relatively small increase in emissions due to a modifica-
     tion can trigger a full PSD review at a major source.
                                                                              Relatively small increase
                                                                              due to modification can
                                                                              trigger full PSD review at
                                                                              major source.
45.  To wrap up this segment on significant net increase, let's
     recall something we mentioned in passing earlier, and look at
     one strange effect of the rules. Both have to do with sources
     that are not major, and are proposing changes.

46.  If we're looking at a proposed change at  an existing non-
     major source, then we aren't concerned with significant net
     increases. But we still have to think about emission increases
     from the modification.  If the increases are big enough to meet
     major source criteria by themselves, 100 or 250 tons per year
     depending on category, then the modification has to be
     reviewed as a major source.
                                                                                • not major
                                                                                • proposing changes
                                                                                increases meet
                                                                              major source criteria
                                                                              modification must be
                                                                               reviewed as major
                                                                                   source
                                              3-6

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Script
Selected Visuals
47.  The strange situation comes up because changes at a non-
     major source can add up to create a major source that never
     got PSD review, but will need it for future significant
     changes.  Let's look at  a simplified example:
                                          • changes at nonmajor source
                                          • ^ddupto major source
                                          • never got PSD review

                                        ...but will need review if future
                                        significant changes
48.  Take a source that's on the list of 28 categories. It emits only
     70 tons per year of some pollutant, so it's not major.
                                                       nonmajor
                                                        •ource
49.  The proposal is to add operations that would increase
     emissions by 80 tons per year. The source isn't major, and the
     modification isn't either, so no PSD review is called for.
                                                       nonmajor
                                                       increase
                                                                                          nonmajor
                                                                                          source
 50.  But when the change is complete, we've got an existing
     source,  on the list of 28, with 150 tons per year of emissions.
     From now on, any significant net emission increase, for any
     regulated pollutant, will call for PSD review.
90
| .0**,™


70
MMM/vmt



nonmajor
increase

noomajor
• now is existing
major source
• has never been
reviewed
150
tons/year

 51.  So far, we've described two sorts of things that call for PSD
     review, new major sources and major modifications. Test
     One compares the new or existing source with criteria to
     decide if it's major or not. If the proposed new source is
     major we go on with PSD review. If the existing source is
     major, we go to Test Two, to see if there is a significant net
     increase in actual emissions of any regulated  pollutant. That's
     the point we've reached now.
                                                 Testl
                                              Is source major?
                                        no PSD
                                        review
       New
      Source
Existing
Source
                                               PSD review   Test 2
                                                       Significant net
                                                       increases?
 52.  Whether we're talking about a proposed new source or a
     modification we still have to determine what and how much
     PSD review will be done. Test Three will tell us that.
                                              What and how much
                                              PSD review?
 53.  Test Three looks a lot like Test Two.  It goes over the totals of
     emission increases from the new source or modification. But
     Test Two just asks for a modification, "Is there at least one
     significant net increase?" Test Three asks, "Which  pollutants
     have significant increases?" For each pollutant that  comes out
     of Test Three, that has a significant net  increase we have to
     do the three analyses that PSD review involves.
                                                 Test 2
                                           Is there at least one
                                           significant net increase?

                                                 Test3
                                           Which pollutants have
                                           significant net increases?
                                              3-7

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Script
Selected Visuals
54.  Those three analyses are the topics of lessons of their own in
     this course. They are: Best Available Control
     Technology—BACT—Analysis, Air Quality Impact Analysis,
     and Additional  Impacts Analysis.
                                             Three Analyses

                                           BACT Analysts
                                           Air Quality Impact Analysis
                                           Additional Impacts Analysis
55.  The process we've just described—deciding on the applicabil-
     ity of PSD review—is pretty complicated and time-consuming
     in itself. The analyses that  applicability determination can
     lead to will be more complicated, time-consuming—and
     expensive. To keep applicants from having to do unnecessary
     and expensive work, the PSD regulations have some exemp-
     tions from review.
                                             There are some
                                             exemptions
                                             from PSD review.
56.  A major exemption deals with the air quality monitoring
     related to air quality impacts analysis. We'll discuss it when
     we get to the air quality impacts lesson.
                                            Major Exemption

                                          • monitoring related to Air
                                           Quality Impact Analysis
57.  We mentioned another exemption in passing in Lesson One
     and earlier in this lesson. It's important enough to mention
     again. When the States designate an area as nonattainment,
     attainment, or unclassifiable, it is for specific criteria
     pollutants.
                                             Areas may be:

                                             • nonattainment
                                             • attainment
                                             • unclassifiable

                                        for specific criteria pollutants
58.  Many areas we're interested in are likely to be nonattainment
     for one or more pollutants  and PSD for the rest.
                                           Areas may be mixed

                                          • nonattainment for some
                                          • PSD for others
59.  In these "mixed" areas,  PSD review has to be done for all the
     pollutants that do not make the area nonattainment, if PSD
     review is triggered by Test One and Test Two.
                                               pollutants
                                               jio^making
                                                 area
                                              nonattainment
                                                                                  potential
                                                                                 PSD review
60.  But for the pollutants that do make the area nonattainment,
     special nonattainment area plan new source review applies.
     That's another story, one we're not going to deal with in this
     course.
pollutants
not making
area
nonattainment
potential
PSD review
pollutants
making
area
nonattainment
special new
source review
61.  Another exemption keeps fugitive emissions from making some
     sources major. The basic idea is that certain sources that
     would be major only because quantifiable fugitive emissions
     bring their potential to emit over the line are exempt from
     PSD review.
                                          If source Is major only
                                          because of fugitive
                                          emissions...

                                          Then source is exempt
                                          from PSD review
                                              3-8

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Slide
Script
62.  However, the exemption has an exemption of its own. Certain
     sources can't get out of PSD review this way. They are: those
     on the list of 28 categories,  and those that were regulated by
     New Source Performance Standards or Hazardous Pollutant
     Standards as of August 7, 1980. That's the day the final PSD
     regulations were issued. That narrows the field of the fugitive
     emissions exemption, but some sources still qualify. There is,
     however,  some difference among the States as to which NSPS
     or NESHAPS must be  applied.

63.  There is a very long and complicated list of other exemptions
     in the regulations, mostly at 40 CFR 52.21(i)(4). The general
     idea is to exempt from review those  changes that are made to
     comply with a Federal law, that are temporary and
     unavoidable,  or that are in the public interest.
  Selected Visuals


Exemption does not apply to:

  • 28 listed sources
  • sources regulated under
   NSPS or NESHAPs
                                                 Exemptions
                                              [40 CFR 52.21 (l)(4) I
                                            Changes:
                                            • made to comply with a
                                              Federal law
                                            • temporary and unavoidable
                                            • In the public Interest
64.  The applicability determination process we've just gone
     through is the first big step in PSD review. It's also a critical
     one. Applicability determination decides */ a source or
     modification will get PSD review. If it does get review, the
     process decides what pollutants the review will be  done on.
                                          Applicability Determination

                                           • Will a source get PSD review?
                                           • What pollutants will review
                                            deal with?
65.  For every new major source or major modification, the
     applicant is going to have to do three analyses. These will
     need to be done for each pollutant emitted in significantly
     increased amounts.
                                                  for every
                                              new major source or
                                              major modification

                                            three analyses for each
                                              pollutant emitted in
                                            significantly increased
                                                  amounts
66.  The analyses are: Best Available Control Technology
     (BACT)—or bact —analysis. Air Quality Impact Analysis, for
     effects on air quality increments and standards; and
     Additional Impacts Analysis, for soils, vegetation,  and visi-
     bility effects,  especially on Class I  areas. We'll take these up
     one by one in the following lessons.
                                             • BACT Analysis
                                             • Air Quality Impact Analysis
                                             • Additional Impacts Analysis
67.  (Credit slide)
68.  (Northrop slide)
                                                Applicability Determination
                                                  In the Application: If
                                                                                    Technical Conwm: John M«on*v
                                                                                    liutractloral Dv*lf.n: Monica L.miU
                                                                                        Guphlc*: BM*v Hubvr
                                                                                    Photo«i»tri>V Audio: Dnld Churchill
                                                                                        Narration: Rick Patmvr
                                            Developed and
                                            produced by:
                                                                                   Northrop Services. Inc.

                                                                                 EPA Contract No. 68-02-3573
                                                3-9

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Slide                           Script                                  Selected Visuals
69. (Northrop slide)
                                                                          1980 PSD Workshop*
                                                                             Agency
                                                                        Office of Air Quality Planning and
                                                                             Standards
70.  (NET slide)                                                        Northrop
                                                                      Environmental
                                                                      Training
                                          3-10

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                                               SI:453
                                             Lesson 4
                      BACT Analysis in the Application:  I
Slide

 1.   (Focus)

 2-3. (Introductory slides)
Script
Selected Visuals
                                              FOCUS
 4. This is Lesson Four, "BACT Analysis in the Application, Part
    One."
                                           BACT Analysis in the
                                             Application: I
 5.  In Lessons Two and Three, we saw how an organization plan-
     ning to build or modify an air pollutant source went about
     determining if PSD review requirements apply, and if so,
     what kind of review has to be done.

 6.  The next major step, after deciding that PSD does apply and
     has to be done for specific pollutants is the Best Available
     Control Technology—B-A-C-T or BACT analysis. We can
     think of the  BACT analysis as the real core of the whole PSD
     review process.

 7.  This is because the BACT analysis provides the information
     needed for the other two analysis steps: Air Quality Analysis
     a.nd Additional Impacts Analysis.
                                              • PSD review?
                                              • What kind?
                                           Best Available (Control
                                            .Technology (BACT)
                                                Analysis
                                             BACT Analysis

                                             Air Quality Analysis
                                             Additional Impacts
                                             Analysis
  8.  The BACT analysis will also line up data the corporation
     needs for financial decision-making about the project. It also
     pulls together some of the most important facts needed to
     inform the public before the review goes to public hearing.
                                             BACT Analysis


                                             • financial decision
                                              making
                                             • public information
                                               4-1

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Slide
Script
Selected Visuals
 9.  Best Available Control Technology is a very important term in
     PSD programs. It's so important that it is defined at some
     length in the Clean Air Act.
10. EPA regulations copy the Act's definition, with a few changes
    to fit programs run by the States or EPA.
11.   Legal definitions are seldom easy reading. This one certainly
     isn't. It packs into a few words most of the ideas needed to
     deal with a complex concept. We'll spend all of this lesson
     "unpacking"  what the definition means in terms of what you
     really do in a BACT analysis.
12.  But you should hear the whole definition just once. Just listen
     for some of the key words and ideas. Don't expect to commit
     it to memory.

13.  The Clean Air Act says: "best available control technology"
     means an emission limitation—
                                             Best Available Control
                                                 Technology
                                                  BACT
                                           • emission limitation
14.  "based on the maximum degree of reduction of each pollutant
     subject to regulation under this Act —
                                                  BACT
                                            emission limitation
                                            maximum reduction
                                            pollutant
15.  "emitted from or which results from any major emitting
     facility, which the permitting authority,
                                                  BACT
                                            emission limitation
                                            maximum reduction of each
                                            pollutant
                                            from major source
16.  "on a case-by-case basis,  taking into account energy,
     environmental, and economic impacts and other costs,
                                                  BACT
                                            emission limitation
                                            maximum reduction of each
                                            pollutant
                                            from major source
                                            case-by-case basis, considering:
                                            • encrgy/envlTonnMntal/acononiic Impacts
                                              4-2

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Slide
Script
Selected Visuals
17.  "determines is achievable for such facility through application
     of production processes and available methods, systems, and
     techniques, including fuel cleaning or treatment or innovative
     fuel combustion techniques for control of each such pollutant.
                                                    BACT
                                              emission limitation
                                              maximum reduction of each
                                              pollutant
                                              from major source
                                              case-by-case basis, considering:
                                              • eMrgy/environrnental/economlc impacts
                                              • other cost*
                                              achievable, through:
                                              • production processes
                                              • available methods/systems/technlques
18.  "In no event shall application of 'best available control
     technology' result in emissions of any pollutant which will
     exceed emissions allowed by any applicable standard
     established pursuant to Section 111 or 112 of this Act."
                                                    BACT
                                            • emission limitation
                                            • maximum reduction of each
                                             pollutant
                                            • from major source
                                            • case-bycase basis, considering:
                                             • energy/envirorunental/econoinic impacts
                                             • other costs
                                            • achievable, through:
                                             • production processes
                                             • available methods/systcms/techniques
                                            • emissions not to exceed standards
 19.  Whewl That's what happens when you put everything you
     need to know in one paragraph. Let's start working on the
     definition—and what it implies —a few words at a time.
20.  One thing that's easy to lose sight of as soon as you start
     running detailed analyses of technology, economics, and so
     forth, is that BACT is an emission limitation.
                                                    BACT
                                            ' emission^ limitation
21.  It's based on available control technology,  but—whenever
     possible—it's an emission rate. The BACT rate is what will get
     written into the PSD permit as  a Federally enforceable
     limitation.
 22.  Of course, if there's no practical way to come up with a
     quantifiable emission rate,  BACT conditions may involve
     something else. The "something else" could be specific kinds
     of processes, limitations on fuels or feed stocks, or work
     practice rules.

 23.  These can be especially important in dealing with fugitive
     emissions,  like leaks and storage losses.
                                               • kinds of processes
                                               • limitations on fuels/
                                                 feedstocks
                                               • work practice rules
                                                 4-3

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Slide
Script
Selected Visuals
24. In some cases, BACT could be specified in terms of specific
    control equipment, operated in a certain way. But the basic
    idea is that the emission rate is what you want from your
    BACT analysis. But, you might have to settle for something
    narrower and less quantitative—a how-to-comply directive, for
    instance.
                                               Emission
                                                Rate
25. This idea comes up often in the Clean Air Act. Whenever
    possible, emission controls are to be specified in allowable
    emission rates—under NSPS or NESHAPs, for instance. The
    source operator should be able to decide on the best way to
    achieve the allowable rates.
26. There's a difference with BACT analysis under PSD, however.
    It's the applicant —the organization that wants to build or
    modify a source—that works up the emission rate that's
    offered as best available control technology. The reviewing
    agency can approve or disapprove the analysis, but the
    applicant does the analysis.

27. With that in mind, it's not hard to remember that BACT
    analysis is case-by-case. What's been done at other plants can
    certainly help the analysis, but BACT is the best available for
    this plant, operating in its technical, economic, and so on,
    situation.
                                             BACT/PSD
                                             plicnnt determines
                                                approves or
                                              'approves
                                            BACT Analysis
                                                 • case-bycase
                                                 • this plant
                                                 • Its situation
28. What takes most of the time and effort in BACT analysis is
    deciding what "best" and "available" mean for the proposed
    project. The definition in the Act outlines, in a few words,
    what's involved. EPA regulations and guidance expand the
    definition to cover concrete cases.
                                              • "Available"
29. Let's begin with the definition of "best." Remember that the
    Act says BACT means the maximum degree of reduction of
    each pollutant regulated. Once again, we  have to remember
    to deal with all the regulated pollutants that are emitted in
    significant amounts by the source.

30. "Best" also means that the degree of control proposed goes
    beyond what's routinely applied to sources of this kind.
                                                "Best"

                                           maximum reduction
                                           each pollutant
                                                "Best"

                                           maximum reduction
                                           each pollutant
                                           beyond routine application
                                             4-4

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Slide
Script
Selected Visuals
31.  To keep the control tight, the Act says BACT has to require
     limits at least as strict as New Source Performance Standards
     or National Emission Standards for Hazardous Air
     Pollutants —if any apply.
                                                 "Best"

                                             maximum reduction
                                             each pollutant
                                             beyond routine application
                                             at least as strict as NSPS/
                                             NESHAPs
32.  But BACT is best available control technology. And
     "available" here means what can be achieved when you take
     into account energy, environmental and economic impacts
     and other costs—including social costs.
                                                "Available"

                                             Achievable, considering:
                                             • Energy Impacts
                                             • Environmental Impact*
                                             • Economic Impacts
                                             • Social Coats
                                             • Other Costs
33.  So besides examining control technology alternatives, a BACT
     analysis requires us to evaluate what the controls will cost, in a
     very broad sense.
                                               $
      What will
      the controls
      cost?
34.  It isn't just the reasonableness of investment and operating
     costs for the company we have to consider.
35.  We also have to analyze what effects different control
     strategies will have on society and the environment,
36.  and what those effects are worth.
37.  What do we want from a BACT analysis, then? Basically,
     information of different kinds for making different kinds of
     decisions.
                                               BACT Analysis

                                                Information
38.  Some of these decisions will be made within the organization
     making the application.
                                               4-5

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Slide
Script
Selected Visuals
39. Some of them will be made by—or together with—the
    reviewing agency. And some will be made by public
    participation.
40. First of all, we want the BACT analysis to come out with the
    mixture of control equipment, processes, and operations to be
    used on the source. This is an important step in company
    investment decision making.

41. Second, we need the emissions data after controls have been
    applied. This information feeds all of the rest of the PSD
    analysis, especially the air quality-modeling-analysis, and the
    additional impacts analysis.
42. Third, calculating emissions after control
    surprising effect.
           may have a
                                               Control

                                               equipment
                                               processes
                                               opcr&tions
                                            Emissions Data

                                            . • after control
   Emissions Data

    • after control

    surprising effect
43. Since potential to emit is figured on the basis of controlled
    emissions, the applicant may find an appropriate mix of
    controls drops the source from PSD applicability. The source
    may become nonmajor,  or emission increases may not be
    significant.  This isn't the primary goal of BACT analysis, but
    it can be important in special cases.

44. Fourth, the analysis of alternative control strategies, with costs
    to the company and costs and impacts that society and the
    environment will bear, are vital public information. This has
    value in itself, and has a practical effect when the permit
    application gets to the public hearing stage.
                                        Major
           Nonmajor
45. A BACT analysis is not like filling out a tax return. The
    applicant doesn't get any official form with blanks to fill in.
                                            4-6

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Slide
Script •
Selected Visuals
46.  Instead, engineers, accountants, and other specialists have to
     line up their facts and reasoning so that company executives,
     agency reviewers, and the public can check them. However,
     we can break the basic approach up into manageable pieces.

47.  The BACT analysis starts by lining up the basic data to be
     examined.  This is done in four steps that we will look at in
     more detail later.  They are: One, Pollutant Applicability;
     Two, Emissions Unit  Applicability;

48.  Three, Identification of Potentially Sensitive Concerns; and
     Four,  Selection of Alternative Control Strategies.
                                                 Steps

                                          1. Pollutant Applicability
                                          2. Emissions Unit Applicability
                                                 Steps

                                          1. Pollutant Applicability
                                          2. Emissions Unit Applicability
                                          3. Identification of Potentially
                                            Sensitive Concerns
                                          4. Selection of Alternative
                                            Control Strategies
49.  When the sensitive concerns have been identified and the
     control alternatives lined up, the applicant can turn to three
     impact analyses.  We'll also look at them in more detail later.
     The impact analyses are: One, Economic Impacts; Two,
     Energy Impacts;  and Three, Environmental Impacts.

50.  The applicant demonstrates compliance with the requirements
     of the PSD regulations step-by-step through this process. The
     "bottom line" won't be one big number adding up a BACT
     score. It will be an array of control alternatives, showing con-
     trol efficiencies, costs to the company, costs to society and
     other effects.

51.  Sometimes, one set of controls will obviously be the best  in
     terms of all these costs and impacts. Usually,  however, it will
     be necessary to pick among alternatives with advantages and
     disadvantages, using two criteria for choice.
                                             Impact Analyses

                                             Economic Impacts
                                             Energy Impacts
                                             Environmental Impacts
                                                 Impacts
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52.  For energy and economic costs, the criterion is
     reasonableness. What is reasonable is seldom easy to define.
                                              Energy/Economic
                                                  Costs

                                               • reasonableness
                                              4-7

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Slide
Script
Selected Visuals
53.  But comparison with what other companies—and
     communities—in similar circumstances have to pay for energy
     and controls will help. Also, some control alternatives will
     clearly be more reasonable than others. They'll be cheaper for
     about the same results.
54. For environmental factors, the criterion is a little more
    complicated. It always is for things that can't be measured
    directly in dollars. The idea is  to keep to a minimum
    undesirable impacts and risks to all kinds of environmental
    values.
                                             Environmental
                                                Factors

                                             minimize undesirable
                                             Impacts/risks
55.  Some risks or impacts may be so important that they force
     dropping a control alternative that looked good otherwise.
56. This sounds as though we're getting ahead of ourselves. Don't
    we do Air Quality Impact and Other Impacts Analyses later,
    as major components of PSD review? Yes, but we have to do
    brief, screening-type checks in BACT analysis to make a
    choice of a final control strategy for detailed review. You
    don't expect the strategy that passes BACT analysis to fail the
    later stages. But there's no way to be sure without doing the
    detailed analyses.

57. The first step in BACT analysis is to consider pollutant
    applicability. In other words,  as we put together our list of
    control alternatives, what pollutants do we have to apply
    controls to?
                                                 Now
                                             screening checks

                                                 Later
                                             detailed analyses
                                            1.   Pollutant
                                               Applicability

                                            • What pollutants
                                             do we control?
58.  When dealing with a new major source, we must do BACT
     analysis for any pollutant regulated under the Act that is
     emitted in a significant quantity.
                                               New Major
                                                Sources

                                              regulated pollutants
                                              emitted in significant
59.  At a major modification,  any regulated pollutant emitted in a
     significantly increased amount calls for BACT analysis.
     These are the same significance levels we talked about in the
     last lesson—when we discussed Tests Two and Three for PSD
     review applicability.
                                                 Major
                                               Modifications

                                              regulated pollutants
                                              emitted In significantly
                                              increased amounts
                                              4-8

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Slide
Script
Selected Visuals
60.  Remember from Lesson Two that we have to add up all
     emissions—stack and fugitive — of each regulated pollutant. If
     the total for the whole source is significant, that pollutant gets
     BACT analysis.

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61.  In adding up new emissions or increases by pollutant
     classification, we have to keep in mind something that isn't
     obvious at first glance. This is that some substances can fall
     into more than one pollutant category.

62.  For example, take dimethyl sulfide, a not  unusual emission.
     It's a reduced sulfur compound, so it has to be totalled under
     reduced sulfur. But it's also a volatile organic compound or
     VOC, so it has to be totalled again with all  the other VOCs.
                                             Some Substances

                                              • morethan^cme
                                               pollutant category
                                                Dimethyl
                                                 Sulfide
                                            Reduced     VOC
                                             Sulfur
63.  Closely connected with Step One— pollutant applicability—is
     Step Two—emissions unit applicability. Our question here is:
     which emissions units does the BACT analysis have to deal
     with?
                                           2.    Emissions
                                             Unit Applicability

                                           • Which emissions units
                                            must be analyzed?
64.  The answer calls for close attention.  For new major sources
     each emissions unit that emits any amount of a regulated
     pollutant has to apply BACT.
                                                New Major
                                                 Source

                                             • any unit that emits
                                              Łnyamount of a
                                              regulateTpollutant
 65.  For modified sources, each modified unit that has any
     increase of a regulated pollutant has to apply BACT.
                                             Major Modification

                                             • any unit that shows
                                              any Increase In
                                              enussionsof a
                                              regulated pollutant
 66.  Notice that we said any emissions or any increase. Because
     each regulated pollutant has to be analyzed, we'll find many
     emission units —like fuel burning operations—that require
     BACT analysis for several pollutants.
 67.  Also remember that it isn't just the neat well-behaved
     emissions and emissions units that need analysis. Sources of
     fugitive emissions have to be dealt with, too.
                                                 Fugitive
                                                Emissions
                                              4-9

-------
Slide
                         Script
Selected Visuals
68.  There are several important examples of fugitive emissions.
     For example,
         —Storage piles of coal, limestone, or other materials;
69.      —Outdoor conveyor belts;
70.
— Storage tanks for volatile organic liquids; and
71.      —Valves and pumps that carry volatile organic
           compounds.
 72.  Usually, fugitive emissions from sources like these are affected
     by the weather. This makes them hard to quantify.
 73.  Since this means that emission limits will also be hard to spell
     out in definite numbers, BACT for these fugitive sources*
     generally takes a special form. Where quantifiable emission
     limits cannot be set, BACT is usually an equipment (design)
     standard, or a work practice standard, or both.

 74.  Don't forget, however,  that for stack emissions—where rates
     are easier to quantify—BACT has two components. The
     analysis will produce an equipment standard, or a process
     (operation) standard, or both. Tied to what the analysis says
     the devices or operations can do will be Federally enforceable
     limits on allowable emissions from each unit. It is desirable to
     have both an emission  standard and equipment or process
     standard where possible.
                                             4-10
                                                                     BACT may be:

                                                                     • equipment standard
                                                                     • work practice
                                                                       standard
                                                                          • equipment
                                                                            standard
                                                                            process
                                                                            standard
                                                                           enforceable
                                                                           limits

-------
Slide
Script
Selected Visuals
75.  However, there are some exemptions from counting and
     analyzing emissions for BACT. Emissions units that produce
     only secondary emissions are exempt from BACT analysis.
     Remember that secondary emissions result from building or
     running the major source or modification, but don't come
     directly from it.

76.  However, secondary emissions do not include:
         emissions from ships, trucks, and cars not on  the plant
         site, taking goods or people to and from it.
                                           Units producing only
                                           secondary emissions

                                            • exempt from BACT
                                             analysis
77. And an example of secondary emissions that generally don't
    require BACT analysis are:
         increased emissions from a power plant due to greater
         electric demand, when the power plant is not part of the
         source.
78.  But the applicant has to keep track of secondary emissions for
     a later stage of analysis. When we get to the Air Quality
     Analysis stage, we have to check whether secondary emissions
     threaten air quality standards or would consume an allowable
     increment. If secondary emissions present such a threat,
     control will have to be applied to eliminate  that threat.

79.  When you put together the results of Step One —pollutant
     applicability—and Step Two —emissions unit
     applicability—you wind up with a lot of pieces of information.
     To deal with that information in a reasonable way, you have
     to put it into a form that makes sense.

80.  There is no one best way to group emission  units for the rest
     of BACT analysis. There is a general principle, however.
     Similar emissions units should be analyzed together.
                                          Do secondary emissions
                                          threaten air quality
                                          standards?
                                          Similar emissions units
                                          should be analyzed
                                          together.
81.  They may be "similar" because they're the same type of
     device, because they have similar kinds and amounts of
     emissions, or because they can use the same general kind of
     control.
                                              "Similar"

                                             same type of device
                                             similar kinds and
                                             amounts of emissions
                                             can use the same
                                             general kind of control
                                            4-11

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Slide
Script
Selected Visuals
82.  By treating similar units together, the applicant can usually
     cut control costs through "economies of scale."
                                               • grouping simitar units

                                               • lower control costs
83.  For example, a source with three boilers as separate emissions
     units could plan one flue-gas desulfurization system to serve
     all three. The larger system should cost less—both to build
     and  to operate—than three separate systems.
                                           Boiler
                                           No. 1
       Boiler
       No. 2
                                          Ml  Ull   LJT
Boiler
No. 3
                                                                                                FGD
                                                                                              Scrubber
84.  By applying Step One and Step Two,  then grouping similar
     emissions units,  we have assembled one kind of basic data for
     BACT analysis.  This information has  to do mostly with things
     inside the source.
                                                    Steps

                                             I. Pollutant Applicability
                                             2. Emissions Unit Applicability
                                             3. Identification of Potentially
                                               Sensitive Concerns
                                             4. Selection of Alternative
                                               Control Strategies
85.  In the next lesson we will start looking outside the source—as
     we discuss Steps Three and Four.
                                                    Steps

                                             1. Pollutant Applicability
                                             2. Emissions Unit Applicability
                                             3. Identification of Potentially
                                                                                  4. Selection of Alternative
                                                                                   Control Strategies
86.  (Credit slide)
                                                  BACT AnilyiiB
                                                 in the Application: I
                                                                                       G»phici: BMM Hn6*r
                                                                                        f Ao4lo: Di*M Churchil
                                                                                            Rick Palwi
87.  (Northrop slide)
                                             Developed •nd
                                             produced by:
                                                                                     Northrop Services. Inc.

                                                                                   EPA Contract No. 68-02-3573
88.  (Northrop slide)
                                             8*wd In put on (hi:
                                                1980 PSD Workshops
                                                   prepared far the
                                              U.S. Environmental Protection
                                                    Agency
                                             Office of Air Quality Planning and
                                                    Standards
                                                                                           und«
                                                                                      EPA Contract No, 6MJ.3I
89.  (NET slide)
                                                 4-12
                                            Northrop
                                            Environmental
                                            Training

-------
                                                SI:453
                                              Lesson 5
                      BACT Analysis  in  the Application:  II
Slide

 1.   (Focus)
Script
 2. This is Lesson Five, "BACT Analysis in the Application, Part
    Two."
Selected Visuals

    FOCUS

 BACT Analysis in the
   Application: II
     In the previous lesson, we outlined the overall shape of the
     Best Available Control Technology—BACT—Analysis.  We
     emphasized that BACT Analysis is a case-by-case analysis
     done by the applicant, and that it leads to emission limits for
     the new source or modification.
                                                 BACT
                                              • case-bycase
                                              ••by the applicant
                                              • emission limits
 4.  We talked about the four steps and three impact analyses
     that make up BACT Analysis. The four steps are:
         One, Pollutant Applicability
         Two, Emissions Unit Applicability
         Three, Identification of Potentially Sensitive Concerns,
         and
         Four, Selection of Alternative Control Strategies

 5.  The three Impact analyses are:
         One, Economic Impacts
         Two, Energy Impacts,  and
         Three, Environmental  Impacts

 6.  The criteria for measuring alternative control strategies are
     economic reasonableness and minimum undesirable impact
     on the environment.
                                          1. Pollutant Applicability
                                          2. Emissions Unit Applicability
                                          3. Identification of Potentially
                                            Sensitive Concerns
                                          4. Selection of Alternative
                                            Control Strategies
                                           • Economic Impacts

                                           • Energy Impacts

                                           • Environmental Impacts
                                            Alternative Control
                                               Strategies

                                           • economically reasonable
                                           • minimal undesirable impacts
 7.  At the end of the last lesson, we had finished describing Steps
     One and Two.  They looked mostly at things inside the source.
     Now we're going to look more outside the source itself, as we
     go on to the remaining steps and the impact analyses.
                                           land 2
                                                      3 and 4
 8.  Step Three is Identification of Potentially Sensitive Concerns.
     This means lining up a list of areas that can be affected by
     the source or modification. Estimation of the size of the
     effects comes later.
                                        3. Identification of Potentially
                                             Sensitive Concerns

                                          • Which areas could be
                                            affected?
                                                5-1

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Slide
Script
Selected Visuals
 9. On the principle that "everything is connected to everything
    else," there could be an endless list of things that the source
    might affect. We need to narrow our list to concerns that are
    sensitive to operation of this source in this area.

10. So our examination of potentially sensitive concerns is going to
    be very case specific-

11. Looking at the local area, we need to ask: "what effects can
    running this source have on local energy use, economics, and
    environment?" Whenever possible, we want to select measures
    of these effects that are quantifiable—that tell us how much
    of an effect, not  just "more" or "less."

12. All kinds of things could go on the potentially sensitive
    concerns list. The trick is to keep the list down to a
    manageable length, but count everything that's really
    important. Things that might go on the list for a given area
    could  include:
         —labor supply, skilled or unskilled,
         — water availability and use, and
         — availability of certain fuels.

13. At this point, we have a lot of data about the source and
    about the local area. Now we need to do  something with it.
    That brings us to Step Four, Selection of Alternative Control
    Strategies.

14. Of course, selecting control strategies is the meat of the BACT
    analysis. This is where engineering knowledge of the source,
    its various emissions units, and control techniques comes in.
    But we're not concentrating—in this course —on how to select
    appropriate control equipment.
                                                    • this source
                                                    • this area
                                             • very case-specific

                                             • local area



                                         What effects can source have on:

                                              •  Energy
                                              •  Economics
                                              •  Environment
                                               • labor supply
                                               • water availability
                                                and use
                                                 availability of
                                                 certain fuels
                                        4. Selection of Alternative
                                            Control Strategies
15. What we want to know is how the applicant—given engineer-
    ing expertise—arrives at best available control technology.
    And then, how the application supports the claim that the
    chosen strategy is BACT.
                                              5-2

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Slide
Script
Selected Visuals
16.  The basic idea behind control strategy selection is that
     alternative control technologies should be technically feasible.
     In practice,  technically feasible controls are those that have
     been demonstrated to work. They have been tried and found
     to function efficiently on emission units just like the ones
     under study, or on similar units.

17.  If the applicant plans to use control alternatives that haven't
     been demonstrated as technically  feasible, but that might be
     more efficient and/or more economical than usual systems,
     these are innovative alternatives.  The Clean Air Act and the
     regulations are set up to encourage use of innovative control
     technology.

18.  What we're doing here is narrowing the scope of the analysis,
     trying to get a manageable set of alternatives to compare with
     each other. To have a "yardstick" for these comparisons, we
     need to set up a  base case.

19.  The base case is  the  control strategy that would normally be
     applied to a source,  if BACT were not required. The  controls
     normally applied might be called for by:
         — other control  regulations,  State or Federal, or
         — the company's own practices, if they're stricter  than
           what's required by non-PSD regulations.

20.  With a base case laid out, the applicant can arrange
     alternative control strategies by rank. The rank order will be
     each strategy's control efficiency.

21.  This sounds as though lining up  control strategies will
     automatically produce BACT. It  won't.  For one thing, there
     are usually several pollutants to deal  with. A control that
     ranks high for, say, paniculate matter isn't likely  to rank as
     high for sulfur dioxide, for instance.
                                           • technically feasible

                                           • demonstrated to work
                                              Base Case
                                               Base Case

                                         • normally used control strategy
                                         • called for by:
                                          • other regulations
                                          • company's own practices
                                           Applicant arranges
                                            control strategies
                                               by rank.
22. In addition, alternative control strategies still have to be
    analyzed for their economic, energy, and environmental
    impacts. So ranking control alternatives up from the base case
    is an important step in BACT analysis, but not the whole
    thing.
                                                    Environment
                                              5-3

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Slide
Script
Selected Visuals
23.  It if possible that control strategy selection could stop with
     describing the base case.  In some circumstances, the controls
     routinely applied will turn out to be the best available. Of
     course, the applicant will have to line up some strong
     evidence to prove this in  the application.

24.  Most of the  time, however, there will be several alternatives
     for controlling regulated  pollutants at the various emissions
     units. Information on these alternatives has to be assembled  so
     that we're sure all reasonable possibilities are examined.
                                             Sometimes routine
                                               controls are the
                                               best available.
25.  There are four kinds of alternative strategies that can be
     considered for any emissions unit. You won't always find one
     of each kind for each pollutant at each emissions unit, of
     course.
                                                4 Kinds of
                                            Alternative Strategies
26.  The first —and most obvious—kind of control alternative is
     existing technology. This means control methods actually used
     on other units of the same type.

27.  The second  kind—transferable technology—is related to
     existing technology. It includes control methods used on units
     not exactly like the ones under analysis.  These methods show
     promise of working efficiently when applied to this source.

28.  The third kind of control alternative is innovative technology.
     As we mentioned earlier, this includes control techniques that
     haven't been fully proven in routine use.
                                                 4 Kinds

                                            • existing technology
                                                 4 Kinds

                                            • existing technology
                                            • transferable technology
                                                 4 Kinds

                                            • existing technology
                                            • transferable technology
                                            • innovative technology
29.  The fourth kind of control alternative is an important one not
     to overlook. It is using a basic industrial process that is
     inherently lower polluting.
                                                 4 Kinds

                                            • existing technology
                                            • transferable technology
                                            • innovative technology
                                            • inherentlvjowerjwllil^in
                                              technology
30.  An example is the dry precalcination process for
     manufacturing cement. It has significantly lower nitrogen
     oxide emissions than the alternative "wet" process.
                                            Cement Manufacturing
                                               5-4

-------
Slide
Script
Selected Visuals
31.  In looking for various kinds of control alternatives, the
     applicant has several places to look. The place that should
     come first to mind is the general locality of the proposed
     construction or modification.  If BACT analyses have been
     made on similar facilities, and have been approved, then the
     earlier determinations are good guidance for a new analysis.
32. On a wider scale, EPA maintains a central "Clearinghouse" of
    BACT determinations—along with Lowest Achievable
    Emission Rate for nonattainment permits. Anyone putting
    together a list of control alternatives should check the
    BACT/LAER (lair) Clearinghouse Reports for similar cases.

33. All of this useful information is what we said it was earlier,
    though—guidance. Since BACT is, by definition, determined
    case-by-case,  what was BACT on an emissions unit in Oshkosh
    may not be on one just like it in Peoria.
                                            EPA Clearinghouse
                                                  on
                                              BACT/LAER
                                              Determinations
                                          Remember...
                                          • Other determinations are only
                                           guidance.

                                          • BACT is always case-specific.
34.  That gets us through the four steps of assembling the data for
     the BACT Analysis. Remember, they were: Pollutant
     Applicability,  Emissions Unit Applicability, Identification of
     Potentially Sensitive Concerns and Selection of Alternative
     Control Strategies.

35.  You should have noticed that a lot of work goes into these
     steps. We only suggested what kind of work, not what the
     details are. There's more work to be done now that the data's
     assembled.
                                           1. Pollutant Applicability
                                           2. Emissions Unit Applicability
                                           3. Identification of Potentially
                                            Sensitive Concerns
                                           4. Selection of Alternative
                                            Control Strategies
36.  With a reasonable list of alternative control strategies lined
     up, the applicant is ready to run three Impact Analyses on
     the alternatives. These are for: Economic Impacts, Energy
     Impacts, and Environmental Impacts.

37.  This chart suggests how  the impact analyses are set up. Don't
     get the idea that there's  some" official form like this somewhere
     to fill out. You will see  charts like it summarizing parts of
     most applicants' BACT Analyses, of course. But also don't
     forget that you- need a chart like this for each pollutant and
     each emissions unit —or  small group of units—in the analysis.
                                                Analyses

                                            • Economic Impacts
                                            • Energy Impacts
                                            • Environmental Impacts
                                             COMPARISON OF
                                            CONTROL ALTERNATIVES
                                              5-5

-------
Slide
Script
Selected Visuals
38. The first impact analysis within the BACT Analysis is
    economic. In the Economic Impacts Analysis, the applicant
    makes an estimate of the approximate costs of different
    emission control alternatives.

39. There is a body of widely accepted techniques for estimating
    costs of engineering projects. These methods of engineering
    economics are generally applied to the BACT Economic
    Impacts Analysis.
                                              Economic
                                            Impacts Analysis

                                          estimate of approximate costs
                                          of different control alternatives
40. The costs considered in estimating economic impacts of
    control alternatives are divided into capital costs and
    operating costs.

41. The capital cost is the amount required to purchase and
    install the permanent equipment required for the control
    method. You can think of it as the "one-time" cost—but it
    usually gets paid in installments over a long period.
                                            • Capital Costs

                                            • Operating Costs



                                                  Capital Costs
                                                   to purchase and
                                                   install permanent
                                                   equipment
42. The operating costs are the ones that keep occurring. They
    pay for the labor, energy, and materials needed to keep the
    control process operating. Operating costs include normal day-
    to-day operations, routine maintenance, and some things you
    might not think of right away, like insurance premiums.
                                                  Operating Costs

                                                  • keep occurring
                                                  • for labor, energy.
                                                   and material*
                                                  • normal daytoKiav
                                                   operation*/
                                                   maintenance/etc.
43.  Remember that these control costs are being added up so that
     different methods can be compared with one another. This
     means that the costs  have to be put in a format that allows
     comparison. One thing that must be done is to put all the
     costs on the same time basis.
44.  Usually, all capital and operating costs are reduced to an
     annual basis. For some operations, there may be a cycle that
     makes more sense than the year. You have to use a combina-
     tion of accounting methods and engineering principles based
     on experience to fit the costs into one time period.
                                             5-6

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Script
Selected Visuals
45.  Another thing that has to be done to permit comparison of
     alternatives is to break out total and incremental costs.
                                                  Costs

                                                • Total
                                                • Incremental
46.  Total cost is easy to grasp.  It's all of'the capital and operating
     expenses for each emissions unit,  for one regulated pollutant.
                                                 Total Cost

                                             • _a!N:apltal and operating
                                               expenses
                                             • for eacl^emlssions unit
                                             • for one regulated pollutant
47.  Incremental costs measure how much is paid to reduce the
     last ton—or pound—of emissions. Both total and incremental
     costs can affect our judgement of what method produces  more
     control for a given economic impact.

48.  With the various costs of control alternatives lined up on a
     comparable basis,  the economic impacts can be evaluated in
     terms of three factors. They are:
          — pollution-specific costs,
          — additional product costs, and
          — ability to secure financing.

49.  It would be nice if costs assigned  to each of these categories
     could be measured against a fixed yardstick. Unfortunately,
     there isn't one. However, there are ways of guiding
     judgements and of justifying choices among alternatives.
                                               Incremental Cost

                                             • cost of reducing the last
                                              Increment of emissions
                                              Economic impacts
                                             evaluated in terms of:

                                             • Pollution-Specific Costs
                                             • Additional Product Costs
                                             • Ability to Secure Financing
 50.  In the area of pollution-specific costs, many studies have
     been done on the dollar value of reducing a ton of emissions
     of a specific pollutant.  Most of these studies have been for
     New Source Performance Standards, and are in the
     Background Information Documents for the standards.

 51.  Studies used for pollution-specific cost appraisal will vary in
     reliability and applicability to the case at hand.
                                             Pollution-Specific Costs

                                             • studies done on S value
                                             • found In Background
                                               Information Documents
                                             Pollution-Specific Costs

                                             • studies done on $ value
                                             • found in Background
                                              Information Documents
                                             • vary In reliability and
                                              applicability
 52.  The BACT Analysis should cite and justify the studies used to
     develop pollution-specific costs.
                                             BACT Analysis should
                                            cite/justify studies used.
                                                5-7

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Script
Selected Visuals
53.  The "bottom line" of the pollution-specific cost appraisal will
     be a comparison of estimated costs to control pollutant X with
     generally accepted reasonable costs for control of X.
                                                Cost Appraisal
                                              Eirimatg
                                             Sly ..........
                                                                                 lyll ml ll»K
          R«««on«bl«

          SII...K...I
           • Hlll» .III <
           ytilltMik I
           nil > till, yl
54.  The Economic Impacts Analysis looks at additional product
     costs.  These will be how much a control alternative adds to
     the price of the plant's finished products.
                                           Additional Product Costs

                                          • how much a control alternative
                                           jdds to the price of plant's
                                           finished product
55.  Additional product costs should be figured as a. percentage of
     total manufacturing costs. This percentage can be used for
     comparison with the costs of other firms in the same market.
     If additional product costs put the applicant at a severe
     competitive disadvantage, then this may justify preferring
     another control option.
                                           Additional Product Costs

                                          • how much a control alternative
                                           adds to the price of plant's
                                           finished product
                                          • percentage
56.  The third item of the Economic Impacts Analysis considers
     ability to secure financing. For most products, this is critical.
     Dollars and cents will count on this item, but other things
     will, too. The applicant will have to estimate how money
     lenders would judge the firm's ability to pay back on time.
     This can depend on control reliability, product markets,
     money markets, and many other factors.

57.  As you can see, the Economic Impacts Analysis takes into con-
     sideration several different economic aspects. It adds up both
     capital and operating costs of control alternatives.  It lines
     these costs up in  terms of three factors, so the applicant can
     judge the values  affected. The three factors are:
         — pollution-specific costs,
         — additional product costs,  and
         — ability to secure financing.

58.  The second impact analysis is for energy impacts. The form
     of the Energy Impacts Analysis is a lot like the economic one,
     but instead of dollars, here we're concerned with units of
     energy consumption. The amounts posted to the account for  •
     each control alternative will be in Btu's, kilowatt-hours, or  the
     like.
                                          Ability to Secure Financing

                                          • estimate of how money lenders
                                           would judge firm's ability
                                           to pay back
                                             Economic impacts
                                            evaluated in terms of:

                                           • Pollution-Specific Costs
                                           • Additional Product Costs
                                           • Ability to Secure Financing
                                              Energy Impacts

                                           • units of energy consumption

                                           • BTUs/kWh
                                               5-8

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Script
Selected Visuals
59.  Only the direct energy impacts of a control alternative should
     be figured in. These energy requirements should be figured on
     a total and incremental —per  ton of reduction—basis, as for
     money costs.
                                          • direct energy impacts
                                          • total

                                          • incremented
60.  Some forms of energy are easier than others to get in a given
     region. This means the Energy Impacts Analysis should look
     at what forms of energy a control alternative can use,  and
     how much of those the  region has available. For some
     applications, it will help to convert energy requirements to
     barrels of oil or tons of coal.
                                                   • What forms
                                                    of energy can
                                                    be used?
                                                   • How much
                                                    available
                                                    In the region?
61.  We wrap up the impact analysis phase of the BACT Analysis
     with the Environmental Impacts Analysis. As we said before,
     this sounds like we're getting ahead of ourselves. The complete
     application will include detailed Air Quality and Additional
     Impacts Analyses. But right now we're looking at choices
     among several alternative control strategies. They have to be
     rated on the degree of their effect on  the environment.

62.  Detailed environmental assessment of the alternative chosen in
     the BACT Analysis will come later. One important aspect of
     that work will be air quality modeling. But an important part
     of our BACT Environmental Impacts  Analysis is brief,
     comparative modeling of air quality effects of control
     alternatives.
                                           Environmental
                                              Impacts

                                           • degree of effect on
                                            environment
                                            • brief, comparative
                                             modeling of effects
63.  For each control alternative, we want to find the maximum
     ground-level concentrations of pollutants emitted. We also
     want to know the size of the area for which the pollutant
     impact is significant. To simplify the problem, we normally
     use "worst-case" meteorology in the model.

.64.  This can get complicated, but look at a simple example. For a
     boiler, the choice is between low-sulfur fuel and a flue-gas
     desulfurization —FGD — scrubber.  The FGD system produces
     much lower emissions. But the FGD stack plume is relatively
     cold —it reaches the ground sooner. The result is only a tiny
     difference in maximum ground-level concentrations of SO2.
                                          For each control alternative:

                                           • maximum ground-level concentrations

                                           • size of area of significant impact

                                           * uae "worst-case" meteorology
                                            for modeling
                                          AIR QUALITY COMPARISON
                                                    Impact  Impact
                                        Control Emissions (fjg / m') Area (km)
                                        Low
                                        Sulfur
     IOOO
    ID/hour
                                        FGD     400
                                        Scrubber  id/hour
                                              5-9

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Script
Selected Visuals
65. The big difference between the two controls is the size of the
    impact area. For< low-sulfur fuel, the area of significant
    impact is 28 kilometers in radius. For the scrubber, the area
    has a 10 kilometer radius. That's a significantly smaller real
    impact, so the scrubber wins this comparison.
                                                                        Low-Sulfur Fuel
66.  There are other environmental impacts that need to be
    accounted for. That scrubber we just discussed will produce
    sludge. Disposing of the sludge can affect water quality, land
    use, or both.
67. Just about any control alternative will have impacts on the
    environment—-air, water, land—besides its emission reduction
    effects. These impacts have to be estimated, turned into hard
    numbers wherever possible, and used to rate control
    alternatives.

68. That  brings us to the end of the outline of the BACT .
    Analysis process. What you have seen is a description of how
    the applicant arranges data for  the analysis, and what kinds of
    analysis get done. The frustrating part of an overview like this
    is that there's no one right answer,  no overall BACT score.
                                       •IT
69. The hard work in the BACT analysis is taking all the data
    combined into control alternatives and comparing them with
    one another.
                                                                              AJtCTXt*.
                                                                                3
70. The comparisons are made through the economic, energy,
    and environmental impact analyses. Control alternatives can
    score high on one analysis and low on another. Many com-
    binations can be tried for even a medium-size source. The
    applicant has to judge what is better or worse. And then
    justify the judgement of what is BACT so the reviewing
    agency will agree.
                                     Ill
                                           5-10

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Script
Selected Visuals
71.  So we started Best Available Control
     Technology—BACT —Analysis with four steps of lining up
     data:
          — pollutant applicability,
          — emissions unit  applicability,
          — identification of potentially sensitive concerns, and,
          — selection of alternative  control strategies.
                                             1. Pollutant Applicability
                                             2. Emissions Unit Applicability
                                             3. Identification of Potentially
                                               Sensitive Concerns
                                             4. Selection of Alternative
                                               Control Strategies
72.  With the data assembled in alternative control strategies, the
     applicant is ready to run three analyses:
          —economic impacts,
          — energy impacts, and
          — environmental impacts.
                                                   Analyses

                                                Economic Impacts
                                                Energy Impacts
                                                Environmental Impacts
73.  By comparing the results of the analyses, pollutant by
     pollutant, for all the control alternatives,  the applicant arrives
     at a set of controls for the whole source or modification.  This
     is what goes into the application as BACT.
                                                                                                      o
74.  To get an idea of how the BACT analysis might be done on a
     simple case, briefly go over the example in the PSD  Workshop
     Manual. The example is on pages l-B-14 through 37.

75.  The emission rates and other data developed in the BACT
     analysis also go on to be the basis of the detailed analyses to
     follow. These  are the Air Quality and Additional Impacts
     analyses. We will go on to them next.
                                                 PSD Workshop
                                                    Manual
                                               • pages l-B-14 through 37
                                              Air Quality Impacts
                                              Analysis

                                              Additional Impacts
                                              Analysis
76.  (Credit slide)
77.  (Northrop slide)
                                                   BACT Analysis
                                                 In in* Application: II
                                                                                        Grlffhlci: L«lt* Whll*
                                                                                    PhMOfrapfc*, Audio: D.w.4 Churchill
                                                                                        r7«t.(l«; flick P.lnwt
                                                                                      Northrop Services. Inc.

                                                                                    EPA Contract No. 68-02-3573
78.  (Northrop slide)
                                             Btu«td In put on th«:
                                                1980 PSD Workshops
                                                   prepared (or the
                                              U.S. Environmental Protection
                                                     Agency
                                             Office of Air Quality Planning and
                                                    Standards
                                                      bv
                                               TRW. Inc.. EjmraamtmiAl Eaqinmin? OltUion
                                                   Northrop 5*rvic*«. Inc
                                                      undu
                                                  EPA Conn-Mi .No, 68-02-3174
                                                 5-11

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Slide                       Script                              Selected Visuals

79. (NET slide)                                               Northrop
                                                            Environmental
                                                            Training
                                    5-12 '

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Slide

 1.  (Focus)

 2-5. (Introductory slides)
             SI:453
           Lesson 6
Air  Quality Analysis:  I

 Script
Selected Visuals

    FOCUS
 6. This is Lesson 6, "Air Quality Analysis, Part One."
 7. In the lessons we just finished, we talked about determining
    whether PSD review had to be done for a new source or
    modification.
                                           6-1

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Script
Selected Visuals
 8.  We saw how the applicant decides which pollutants the
    review has to deal with.
 9.  Then we went on to see how the applicant arrives at a set of
    emission limits which will reflect application of Best
    Available Control Technology — BACT.
                                        Emission Limits
                                        Reflecting BACT
10. All of this analysis so far has produced a large volume of data
    about the new source or modification itself. Some of the
    source's impacts have been looked at, but mostly to feed back
    and adjust the source control strategy.
11.  Now the application has become more solid. It describes new
     emission units with specific control devices—or
     processes—emitting specific amounts of pollutants per hour.
     If there are stacks, the stack height, exhaust gas velocity and
     temperature, and so on, are described in the application.
12.  It is time to do something with all the data. The "something"
     has to do with the purposes of PSD programs we started out
     with. The Clean Air Act —and EPA's regulations under
     it—say that there are two ambient air quality measurements
     to be protected.
13.  First—and most general—the new construction must not result
     in any violation of a National Ambient Air Quality Standard.
     We are concerned with these standards—NAAQS —for six
     criteria pollutants.

14.  They are: total suspended paniculate matter, sulfur dioxide,
     carbon monoxide, nitrogen dioxide, ozone, and lead.
                                           Air Quality Analysis

                                         Must demonstrate:
                                          • no NAAQS violation
                                           Criteria Pollutants

                                           • TSP    • NC>2
                                           • S02    . O3
                                           • CO     • Pb
                                            6-2

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15. Remember that for each of these criteria pollutants,  there can
    be a primary —health —standard and a
    secondary—welfare—standard.
                                             Primary
                                            Standards
          Secondary
          Standards
16. Every standard has an averaging time over which
    measurements are  taken. Any one pollutant can have both a
    primary and secondary standard for each of several averaging
    times.
                                         ALLOWABLE CONCENTRATIONS (yg/m1)

PoUutom
TV


JO,




TlnvPolod

onnuol
2M»U>

annum
UJnur
Mow
Controlling
NAAQS

79
190

90
369
(WO
aouo
Incranw

19
37

20
91
911
17. The second requirement is that the new construction not cause
    a violation of an allowable increment. We mentioned in the
    first lesson that an increment is an increase in an ambient air
    quality concentration.
                                            Air Quality Analysis

                                         Must demonstrate:
                                           • no NAAQS violation
                                           • no violation of allowable
                                            increments
18. The Clean Air Act gives allowable increments for only total
    suspended paniculate matter —TSP —and sulfur dioxide —
    SO2.  Besides these basic requirements—to protect the ambient
    standards for all criteria pollutants, and to protect
    increments for TSP and SO2 —there is a more general
    requirement.

19. This is to examine the effect on air quality of emissions of
    any pollutant regulated under the Clean Air Act.
20.  The idea of air quality analysis centers on making decisions
     based on concentrations of pollutants in the ambient air.

21.  We may be interested in standards reflecting the whole
     amount of pollutants to which people or things may be
     exposed. Or in increments, which are changes from what
     existed before. We can look at different pollutants,  with
     concentrations averaged over different periods of time.
                                            Increments for only:

                                                •TSP
                                                • SO2
                                           General Requirement

                                          • to examine the effect on
                                           air quality of emissions of
                                           any pollutant regulated
                                           by the CAA
                                               Decisions



                                              • Standards

                                              • Increments
                                             6-3

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                            Script
Selected Visuals
22.
23.
24.
25.
However, to make decisions based on concentration numbers,
we have to get the numbers somehow. There are two basic
ways to come up with the numbers—measure or estimate. We
may have measurements for the past, and we can go out and
do them for present. But if we want future concentrations to
work on now, we have to estimate.
We estimate ambient air quality by using dispersion models.
EPA provides dispersion models as an accepted method for
predicting future air quality.
Both air quality monitoring and air quality modeling are
highly technical arts. The PSD regulations lay down certain
modeling and monitoring requirements for air quality
analysis. They don't,'however—in fact, they can't —tell the
applicant how to do a step-by-step analysis of a particular
proposal. Each PSD appliction is a different case.

This does not mean we can't lay down a general framework
for air quality analysis, based on the regulations and
experience. But, since a program of modeling and monitoring
can involve many hours and dollars, the applicant needs to be
careful.
                                                                       Estimate

                                                                      • dispersion
                                                                       models
26. A company planning to build a new major source in a remote
    area may have a fairly simple, straightforward air quality
    analysis situation.
27. One planning a major modification in an industrialized area is
    likely to find things more complicated.  In either case, the
    applicant should get the reviewing agency to agree on an air
    quality analysis plan before spending a lot of time and money.
                                           6-4

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28.  Even after giving you all these cautions about air quality
     analysis being complex and case-by-case, there's still a lot that
     can be said  about the  process in general. We will describe five
     basic steps and three phases  of the air quality analysis.

29.  The purpose of organizing the analysis into these steps and
     phases is to  have a systematic approach that will save as much
     time and money  as  possible.
                                               Air Quality Analysis

                                                • 5 Basic Steps

                                                • 3 Phases
                                               Systematic Approach
                                                    • saves time
                                                                                         • saves money
30.  The five basic steps that we'll discuss further are:
     First. Define the impact area. This is the area affected by the
     new source or modification for each pollutant analyzed.

31.  Second. Establish inventory of other sources. For each
     pollutant analyzed, you need a quantitative listing of all
     sources adding to its concentration in the impact area.
                                                  Five Steps of
                                                Air Quality Analysis

                                              Define impact area
                                                  Five Steps of
                                                Air Quality Analysis

                                              Define Impact area
                                              Establish Inventory of other sources
32.  Third. Determine existing ambient concentrations —for each
     pollutant in the analysis.
                                                  Five Steps of
                                                Air Quality'Analysis

                                             1 Define impact area
                                             1 Establish Invemorv of other sources
                                              DeterraltM existing ambient
                                              concentrations
33.  Fourth.  Perform screening analysis. That is, a fast and
     inexpensive modeling using very conservative assumptions. If
     this shows no problems, the next step can be much simpler.
                                                  Five Steps of
                                                Air Quality Analysis

                                              Define impact area
                                              Establish inventory of other sources
                                              Determine existing ambient
                                              concentrations
                                              Perform screening analysis
34.  And fifth. Determine projected air quality level. With an air
     quality dispersion model, project ambient concentrations of
     each pollutant analyzed.
                                                  Five Steps of
                                                Air Quality Analysis

                                              Define impact area
                                              Establish Inventory of other sources
                                              Determine existing ambient
                                              concentrations
                                              Perform screening analysis
                                              Determine projected air quality level
35.  To apply these steps of analysis, we divide the whole task of
     analysis into three phases.  It depends on what pollutants we're
     looking at whether—and how extensively—any one phase
     applies. The phases don't separate out neatly, because doing
     some of the steps for one phase will overlap  with another.
                                                           Three
                                                         Interrelated
                                                           Phases
                                                  6-5

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 Slide
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Selected Visuals
 36.  The three interrelated phases of air quality analysis are:
     One. Analyze increment consumption. How much of the
     available increment for TSP and SO2 will be used by the new
     source or modification?

 37.  Two. Determine existing air quality. What are present values
     for all pollutants subject to the analysis? This can involve the
     use of ambient air monitoring or modeling where ambient
     data are not available.
                                           Air Quality Analysis
                                           I	1	1
• analyze [
increment 1
consumption









                                            Air Quality Analysis
                                           I	1	1
                                               1 determine
                                                existing
                                               atr quality
 38.  And three. Project future air quality. This will involve
     dispersion modeling based on data from everything that went
     before. The air quality will have to be predicted at least for
     all the criteria pollutants involved in the analysis.  The
     reviewing authority may decide that concentrations of some
     other pollutants have to be projected.

 39.  Before we go on to some of the details of air quality analysis,
     we need to examine a few more terms. These have to do with
     baseline concentrations and baseline areas.
                                            Air Quality Analysis
                                                       • protect  I
                                                        future  I
                                                       air quality I
                                        • Baseline Concentrations

                                        • Baseline Areas
 40.  We have to deal with baselines because PSD is concerned with
     significant change. Change has to be measured from
     conditions at a certain point in time for a specific area.
                                               Change
                                         Baseline
41. Complications arise because things start from different points
    for different areas with several pollutants. Scarcity of data can
    add to the complexity.
 42.  When we talk about "significant deterioration" of air quality,
     we mean an increase in the ambient concentration of some
     pollutant. But an increase from what? The baseline
     concentration is the ambient concentration —of TSP or
     SOZ, remember —over which increment is figured for each of
     these two pollutants.

 43.  Baseline,  increment, and total ambient concentrations are
     related by a simple-looking equation. In principle,  it is:
     increment plus baseline equals total concentration. If you
     know any two,  you can get the  third by addition or subtrac-
     tion. However, in actual practice this is almost never the case.
                                             6-6
                                         Conc.ntr.tKx, /    Theoretical
                                                      Ambient
                                                     SO2orTSP
                                                    Concentration
                                      Appnalmata Total Air Quality

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 Slide
Script
Selected Visuals
44.  What makes things more complicated is the special definitions
     of what counts for baseline concentration and increment
     consumption.  Neither one is directly measured.

45.  Baseline concentration is an adjusted ambient concentration.
     It is the adjusted ambient concentration of TSP or SO2  in the
     PSD area at a baseline date.
                                         ' Baseline Concentration

                                         1 Increment Consumption




                                          Baseline Concentration

                                          • ambient concentration
                                          • of TSP or SO,
                                          • at the baseline date
46.  That date is the first date after August 7, 1977 when the first
     complete PSD application is submitted for a major source or
     major modification in the area.
                                         Baseline Date

                                           • after August 7. 1977
                                           • date of first complete PSD
                                            application
47.  To get the baseline concentration from existing ambient
     monitoring data, adjustments have to be made. To adjust
     concentration measurements, you have to do air quality
     modeling—more or less sophisticated—to apply effects of
     emission changes to what was measured. If ambient
     measurements already reflect these changes, of course, they
     aren't counted again.

48.  As we go over these adjustments, you'll see that they're related
     to the adding up —netting—of emissions. But keep clearly in
     mind that what we're interested in now is the effect of emis-
     sion changes on ambient concentrations.
49.  The baseline concentration has to be adjusted for two kinds of
     emission changes. The first kind is actual emission changes
     that result from construction at major stationary sources. If
     this construction commenced after January 6, 1975, then the
     emissions consume the increment.
                                                    Emission
                                                    Changes

                                                   Actual
                                                   Construction
                                                   Commenced
                                                   • «fMr 1/6/73 and
50.  The second kind of emission changes figured into baseline
     concentration are projected changes. They are the allowable
     emissions from major sources that commenced construction
     before January 6, 1975.
                                                    Emission
                                                    Changes

                                                   Pro|ected
                                                  > Construction
                                                   Commenced
                                                   • Mora 1/6/73
                                             6-7

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Selected Visuals
51. The baseline concentration gives us a foundation for building
    increment consumption. The increment—or increase—in
    TSP and SO2 concentrations results from different kinds of
    emissions changes. The basic  idea is that what doesn't count
    for adjusting baseline does count toward using up increment.

52. So, the amount of increment  still available is changed by
    emissions increases or decreases that result from construction
    at major sources. These changes count if they occur after
    January 6, 1975.
                                           Allowabl*
                                          PSD Incnmcnt
                                                    • Amount of
                                                     Increment
                                                    Still Available
53. Also, emissions increases and decreases from all stationary
    sources increase or decrease the amount of increment
    available, if the emissions changes take place after the
    baseline date.
54. The basic intent of the Clean Air Act is to apply actual
    increases or decreases in emissions to determine how much
    increment remains available. This isn't always possible,
    however. Where actual operating data just isn't available,
    allowable emission rates may be used in increment
    calculations.

55. We've already said that total ambient concentration is the
    sum of baseline and  increment concentrations. By addition or
    subtraction, you can  get any one from the other two. But
    often, it is hard to get exact numbers for one or more of these
    values.
                                                                                               C=
                                            Available Increment

                                           actual Increases/decreases

                                           allowable emission rates
                                            Ambient SO2 or TSP
                                              Concentration
                                                   Total Air Quality
56.  What the applicant is really interested in—and what the
     reviewing agency is checking for—is whether new emissions
     will result in either of two kinds of violation. Emissions from
     the proposed source or modification must not cause a violation
     of the allowable increment. They must also not result in a
     violation of any National Ambient Air Quality Standard.
                                            J?? Violation??
                                             6-8

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Script
Selected Visuals
57.  Very often,  it's possible to check for NAAQS and allowable
     increment violations without knowing the exact baseline
     concentration.
PSD Increment
BaMlln*
Concentration




PSD Increment
Bueilne
Concentration
58.  That brings us to the question of what these limits—the
     ambient standards and allowable increments—are.
                                              What are the limits?
59.  Remember, for the moment we're talking only about
     particulate matter and sulfur dioxide.
                                                 TSP,SO2
60.  The National Ambient Air Quality Standards are set by EPA
     for each of the criteria pollutants. They can be primary or
     secondary, and be for different averaging times.
                                                 NAAQS

                                           • set by EPA
                                           • for criteria pollutants
                                           • primary or secondary
                                           • for different averaging times
61.  As an absolute limit on deterioration of ambient air quality,
     we're interested in the lowest ambient standard, whether it's
     primary or secondary. For brevity, we'll refer to that lowest
     concentration as the "controlling" NAAQS.
                                           "Controlling" NAAQS

                                           • lowest ambient standard

                                           • primary or secondary
62.  This table gives a quick summary of typical limiting concen-
     trations. On the left, we have the "controlling"
     NAAQS —whether primary or secondary—for TSP and SO2
     for different averaging times. On the right,  we've picked the
     Class II increments as the most usual limits  on increases in
     ambient concentrations.
                                          ALLOWABLE CONCENTRATIONS (|jg/nv>)
                                                     Controlling  Qou H
                                          Pollutant  Tim Period   NAAQJ
                                          SO,
           73
           150

           30
           Mi
          1300
 19
 07

 20
 91
312
63.  Remember that we said that every PSD area in the country is
     classified as Class One, Two, or Three. There are different
     allowable increments for each PSD Class.
                                         ALLOWABLE PSD INCREMENTS  annual
                                                                                  24-hour
Claul
3
10
2
3
23
daull
19
37
20
91
312
COM III
07
73
40
in
700
64.  As you can see, the smallest allowable increases are set for
     Class One areas. These areas are typically national or
     international parks, wilderness areas,  and other areas of
     natural or scenic value.
                                         ALLOWABLE PSD INCREMENTS (M9/ma)
                                        Pollutant Tim* Period
                                               annual
                                               24-hour
                                                                             SO,
                                                                                 • annual
                                                                                 • 24-hour
                                                                                 • 3-hour
                                                       Qau II Clou 111
            19
            37
                                                        20
                                                        91
                                                       312
 37
 73
                                               6-9

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Selected Visuals
65. The Clean Air Act automatically put into Class Two those
    areas that weren't on the mandatory Class One list.  As you
    can see, Class Two areas can accept considerably larger
    increases than can Class One.
                                        ALLOWAOLE PSD INCREMENTS )
                                       Pollutant  TlnwPwtod dan I dan I
                                        SO,
                                            • onnuol
                                            • 24-hour
                                            • 3-hour
                                                   i
                                                  (0
 1
 S
23
            10
            37
            20
            91
67.  It's very important to remember, however, that new emissions
     must not take the area over any National Ambient Air
     Quality Standard.
                                                  NAAQS = 365
                                                     ISO, 24-hr.)
68.  Let's look at what the dual limitations of allowable increment
     and NAAQS mean in one simple case. We'll consider sulfur
     dioxide limits in a Class Two PSD area.
                                            Dual Limitations


                                            Allowable Increment

                                            NAAQS
69.  First, suppose that the baseline concentration is 70
     micrograms per cubic meter, annual average, for SO2. The
     allowable annual increment for SO2 in a Class Two area is 20
     micrograms per cubic meter. 70 plus 20 gives us 90. Does that
     mean that we can add enough emissions to take the projected
     annual ambient SO2 reading to 90 micrograms per cubic
     meter?  No. We have an "effective cap" at the primary
     NAAQS of 80 micrograms per cubic meter. Projected annual
     concentrations can't go past the controlling NAAQS.

70.  Now, suppose the baseline for the same area is computed at
     40 micrograms of SO2  per cubic meter, annual average. This
     time, an increase of the allowable increment —20 —gives us an
     SO2 concentration of 60 micrograms per cubic meter. This 60
     is the "effective cap" in this case. The space between that cap
     and the NAAQS is the part of the "air resource" that the
     Clean Air Act is protecting from significant deterioration.
                                           Annual SO^ Concentration
                                      Enacnin Cap.
                                       Allowable
                                      PSD I
                                              Cooccntratlon
            •SOug/m'
                                            6-10

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71. The last item that we're going to discuss by way of
    preliminary, before we start outlining the Air Quality Impacts
    Review process, is baseline area. We were taking it for
    granted, when we talked about baseline concentration and
    increments, that  we knew what area these concentrations were
    measured or modeled over.

72. What happens when the first source after August 7, 1977
    makes a complete PSD application is that it helps define the
    baseline area, as well as set the baseline date.
                                              Baseline Area
                                         PSD
                                       Application
      helpst
      define
73.  The concept of baseline area starts out fairly simple. First, the
     baseline area is mtrostate—it doesn't cross State lines. Second,
     it's made up only of areas designated attainment or
     unclassifiable. Usually, these are smaller than whole Air
     Quality Control Regions.

74.  Third—and this introduces some complications—the baseline
     area is where the proposed source or modification is located,
     or will have a significant impact.


Basel!
Ares


e

• • intrastatp
• consists of
attainment or


                                                   • location of
                                                    proposed source
                                                     area of significant
                                                     Impact
 75.  For this purpose, a significant impact is a concentration
     increase of at least one microgram per cubic meter, annual
     average.


 76.  To illustrate how a source creates a baseline area, let's take a
     simple example. We'll look at a 5-county area at the western
     end of an imaginary State. We'll talk only about SO2 status
     for this example.
 77. This State has —until now —designated its attainment and
     nonattainment areas on a county-by-county basis. All five
     western counties are PSD areas. Counties A, C, and D are
     attainment, and B  and Ł are unclassifiable.
                                           Significant Impact

                                             • concentration increase of
                                              at least 1 ua/m3. annual
                                              average
                                      N \ si... li..
                                              6-11

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Selected Visuals
78.  On October 6, 1978, a new major source files a complete
     PSD application to the permit reviewing agency. The
     application proposes construction in County C, with
     significant sulfur dioxide emissions. Since County C is a PSD
     area—attainment—the baseline date is triggered everywhere in
     County C. But other areas also come into the baseline area.
79.  Air quality dispersion modeling shows that the proposed
     source will have a significant impact—at least one microgram
     per cubic meter—inside the line shown on the map. This
     irregular area overlaps Counties  A and B, and the
     neighboring State on the north.
80.  The definition says the baseline area (shown in blue) is
     tninzstate, so this application does not trigger the baseline
     date in the State to the north. The impact of the source may
     have to be accounted for,  though. We'll deal with that ques-
     tion later.
81.  Counties A and B become part of the same baseline area as
     County C. Baseline concentrations, emission changes, and
     increment consumption for all three will be figured from
     October 6, 1978.
                                           Baseline Area
                                      f \        —- Am-* SO,
                                      N  \ S*»M UlM	S X1»P*«» *f«»
                                                                             Baseline Area
                                                                            Baseline Area
                                                                      a
                                                                      bMO«i
                                                                      nmd
                                                                     10/4/78
82.  This is a good time to recall something we said in passing
     earlier. We are going to count increment consumption in this
     baseline area from the baseline date for, certain kinds of
     emission changes.

83.  These changes will include major source construction and
     modification commenced after January 6,  1975, plus all other
     emission changes that occurred since the baseline date.
                                      Count increment consumption:

                                          • in baseline area
                                          • from baseline date
                                          • for certain changes
                                           major source
                                           construction/modification

                                           plus all other emission
                                           changes since baseline date
                                            6-12

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Selected Visuals
84.  This business of different starting dates and affected areas,
     with different classes of emission changes, can get
     complicated. But in real situations,  the agency can set up a
     tracking system which will account for what changes count
     against what increments,  and where.
85. Finally,  look at the western part of County A. Some of it is
    not inside the area where the proposed new source has a
    significant SO2  impact. If the State wanted to—and there
    might be good  reason to want to —it could redraw the
    "attainment-nonattainment" area boundaries. Our map shows
    one simple change in County A. Its western half has been
    made a  new, separate, designated area.
                                              Baseline Area
                                        '. \        X—V>"~' S0«
                                        N  \ S««t« Ltn*	f  \liwciAtM
86.  This is a new PSD area. It would probably be attainment. If
     reliable air quality data had been available for only the
     eastern part of the county, the new area might be
     unclassifiable. At any rate, it is outside of the significance
     area for the proposed new source. This means the baseline
     date has not been triggered for this new area, for SOZ. It will
     go along under ^rebaseline  rules until a complete PSD
     application triggers its baseline.

87.  As usual for the topic of PSD,  carefully setting out
     preliminary ideas has taken a lot of explaining. We began this
     lesson by talking about what the PSD program has  to
     protect —the National  Ambient Air Quality Standards and the
     allowable increments for TSP  and SO2.

88.  Then we went on to break the  Air Quality Analysis process
     into five basic steps and three phases.
                                         PSD program protects:

                                           • NAAQS
                                           • allowable increments for
                                            TSP and S02
                                          Air Quality Analysis

                                              • 5 Steps

                                              • 3 Phases
89.  The five steps are:
          — Define the impact area,
          — Establish inventory of other sources,
          — Determine existing ambient concentrations,
          — Perform screening analysis, and
          — Determine projected air quality.
                                             Five Steps of
                                           Air Quality Analysis

                                         Define Impact area
                                         Establish Inventory of other sources
                                         Determine existing ambient
                                         concentrations
                                         Perform screening analysis
                                         Determine projected air quality level
                                              6-13

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90.  The three overlapping phases are:
          — Analyze increment consumption,
          — Determine existing air quality, and
          — Determine projected future air quality.
                                                  3 Phases
                                                (overlapping)

                                           • Analyze increment
                                             coraumptjon
                                           • Determine existing air quality
                                           • Determine projected future
                                             air quality
91.  Then we talked about baseline concentration and how it
     relates to the National Ambient Air Quality Standard and the
     allowable increment.
                                            Baseline Concentration
92.  We finished this lesson with an explanation of the baseline
     area. It is the area where the baseline date is triggered—for
     one or more pollutants—by a complete PSD application. This
     baseline area is basically administrative—it's where certain
     rules for tracking emission  changes and increments apply. Be
     careful to keep it separate in your mind from the impact area
     that we'll discuss first in the next lesson.
93.  In the next lesson, we'll outline how the steps and phases of
     the Air Quality Analysis are applied by the applicant in a
     PSD application.
                                            Next...

                                             How steps/phases are
                                             applied in a PSD
                                             application.
94.  (Credit slide)
                                                                                   All Qiwlltv AittlvHl: I
                                                                                      ZTttZ
95.  (Northrop slide)
96. (Northrop slide)
                                           Developed ind
                                           produced by:
                                                                                  Northrop Services. Inc.

                                                                                EPA Contract No. 68-02-3573
                                          Baaed In put on tfa«:
                                             1980 PSD Workshops
                                                prepared for the
                                           U.S. Environmental Protection
                                                 Agency
                                          Office of Air Quality Planning and
                                                 Standards
                                                                               TRW. Inc.. Emrironmmul En*in*rring Dltltlon
                                                                                    ulth ihv •tUtttnc* of
                                                                                   Nonhrop imricn. lie

                                                                                  EPA Conflict ,\o. 68-02-3174
97. (NET slide)
                                          Northrop
                                          Environmental
                                          Training
                                               6-14

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Slide

 1.  (Focus)

 2-5.  (Introductory slides)
              SI:453
            Lesson 7
Air Quality Analysis: II

 Script
Selected Visuals
                                               FOCUS
 6.  This is Lesson Seven, "Air Quality Analysis, Part Two."
 7.  In the previous lesson, we laid out the basic ideas involved in
    performing the Air Quality Analysis required in a PSD
    application. Now we are going to outline the steps which
    make up the analysis itself.
                                             Air Quality
                                             Analysis
                                             7-1

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 8.  The emphasis here is on outline, because the process is long,
     involved, and potentially expensive. Air Quality Analysis may
     involve designing, building, and operating an air quality
     monitoring network. It usually involves extensive data
     gathering, planning for dispersion modeling, and running
     computer dispersion models at one or more levels of
     complexity.
                                                                          Air Quality Analysis
                                                                      Maybe
                                                                      • deafening, building.
                                                                       and operating a
                                                                       monitoring network
          Usually
          • d*U gathering
          •  lpg/mj

                                                                       Then:
                                                                        baseline date triggered
                                                                            More than one...

                                                                            • pollutant
                                                                            • averaging time
                                                                       Is there significant Impact?
                                              7-2

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16.  What we mean by significant impacts for different pollutants
     and averaging times is easiest to see in a table. For the
     pollutants listed, you can see that EPA has assigned a
     significance level for various averaging times. These times are
     those for which a national ambient standard is set.
                                           Significant Impacts Uo/m3)

                                                  Averaging Period
                                      Pollutant   Annual 24-hour 8*hour 3-hour t-hour
                                        TSP    1    5   -   -   -

                                        SO,    1    5   -   25   -

                                        NO,    1    -   -   -   -

                                        CO     —   —   500   —  2000
17. The applicant gets the data on concentrations of these
    pollutants from dispersion modeling. An EPA recommended
    mathematical model is run, using the proposed emissions, for
    each of the averaging times that  applies to  each pollutant.
                                             Dispersion Modeling
                                                     using p
                                                     emission*
                                                     for each averaging
                                                     tune
                                                     for each pollutant
18.  This gives an outline —usually irregular —of the area where
     source emissions produce at least the significant-impact levels
     of ambient concentration.
19.  To simplify the rest of the Air Quality Analysis process, we
     make the impact area more regular. This is done by taking
     the source as a center, and drawing a circle around it with a
     radius equal to the greatest distance of a significant impact.
                                                   Impact Area
                                                                                 Impact Area
20. This still leaves us with a different circle for each pollutant
    and averaging time. When the differences are not very great,
    the  applicant will usually consolidate impact areas. This is
    done by taking the largest of the impact-area circles that are
    close to the same size, and using it as the basis for emission
    inventory, modeling,  monitoring, and so on.

21. We  mentioned the use of dispersion modeling briefly earlier,
    under BACT Analysis. But now we're talking about beginning
    an extended and intensive modeling effort.

22. Before undertaking such an effort, the applicant needs to
    make  a plan and get the reviewing agency's agreement on it.
                                           • extended, intensive
                                             modeling
                                              7-S

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Selected Visuals
23.  As a minimum, for the modeling that determines the impact
     area, the applicant should get the reviewing agency to concur
     on three things:
         —selection of an appropriate dispersion model,
         —use of meteorological data that are adequate and
           representative, and
         —which techniques and assumptions will be used in the
           analysis.

24.  However, determining the impact area is only one part of the
     modeling effort that goes into the Air Quality Analysis. It
     should be consistent  with the rest of the dispersion modeling
     activity.  This will save effort, time, and money, and avoid
     later confusion.
                                                                     Reviewing agency must agree on..

                                                                        • dispersion model
                                                                        * meteorological data
                                                                        • techniques/assumptions
                                                                   IrapKtArn
                                                                  Determination
25.
The best thing for the applicant to do before going ahead
with any detailed dispersion modeling is to draw up a
modeling plan or protocol, and get the reviewing agency to
agree on it.
26.
The modeling plan should be based on guidance in the latest
versions of three EPA publications:
    — Guideline (revised) on Air Quality Models,
    — Regional Workshops on  Air Quality Modeling: A
      Summary Report, and
    — Volume Ten of the Guidelines for Air Quality
      Maintenance Planning and Analysis Series entitled
      Procedures for Evaluating Air Quality Impact of
      New Stationary Sources.
27. Published guidance can't cover the different circumstances of
    every new source or modification proposal. It is very
    important that the applicant make clear in the dispersion
    modeling plan the things that will affect how modeling will be
    applied in this proposal.
                                             7-4

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28. The modeling plan should include at least the following items:
         — the nature of the proposed construction,
         — the pollutants to be modeled,
         — the site characteristics—such as buildings,
         —the topography within fifty kilometers of the site,
         — the dispersion models proposed for use, and the
           meteorological data to be used with them,
         — the options to be used within the general dispersion
           models, and
         — the emissions data to be "plugged into" the dispersion
           models.
                                      • Proposed Construction
                                      • Pollutants
                                      • Site Characteristics
                                      •Topography
                                      • Dispersion Models and
                                       Meteorological Data
                                      •Options
                                      • Emissions Data
29.  On that last item, let's turn our attention back to impact area
     determination,  and finish it up. There are two things to
     remember about the emission data from the proposed
     construction used to determine the impact area. They are:
     which emissions are included, and what rate should be used.
                                             Emissions Data

                                             • Which emissions?
                                             • What rate?
30.  The impact area determination must be based on all direct
     emissions from the new source or modification. These include
     stack emissions and quantifiable fugitive emissions. But
     temporary emissions—like those from construction
     activity—do not need to be included.

31.  The emission rate used in impact area determination should
     be the "worst case." That will usually be the maximum rate.
     But the way the source  operates —and things like stack velocity
     or temperature,  and stack height—might produce higher
     concentrations at lower emission rates. An experienced
     modeler can usually check for suspicious spots in a "worst
     case" situation with calculations that can be done quickly by
     hand.
                                            Which emissions?

                                          • all direct emissions
                                            • stack
                                            • fugitive
                                          • no temporary emissions
                                              What rate?

                                           • "worst case" (usually
                                            the maximum)
32. Meteorological data will be used in the preliminary modeling
    for setting the impact area and in the later, more detailed
    modeling of the Air Quality Analysis itself.
33.  The data used should be both representative and typical.
                                           Meteorological Data

                                             • representative
                                             • typical
                                              7-5

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34. Representative means the meteorological data should
    represent the weather at or near the source. Typical means
    the data  should cover a period of time when conditions are
    "normal" for the  area—not a drought or a deluge, not a "dust
    bowl" year, for instance.
35.  The actual measured meteorological data should come from
     one of two reliable sources, either:
         —site-specific meteorological monitoring, or
         — the National Weather Service station closest to the site.
                                             Meteorological data
                                             should come from...

                                             site-specific monitoring
                                             nearby NWS station
36. For on-site data,  the applicant has to show that the
    meteorological data they have gathered are for one year prior
    to receipt of application, unless the reviewing authority deter-
    mines that  a shorter period is adequate.
                                         Site-Specific Monitoring Data

                                            1982-
       • one year
       (or determined period)
37.  If the data are from a nearby representative National Weather
     Service station, five years of data will usually be required.
                                                                           Site-Specific Monitoring Data
                                                                                     • five years
38. That gets us through the outline of the first step in Air
    Quality Analysis —defining the impact area. You should notice
    things about this step that we mentioned earlier.
                                                                                    Impact Area
                                                                                ImiwctAiu
39.  The process is fairly complicated. What will happen for any
     given proposal depends very much on the facts of that case.
     The applicant may find no significant impacts for some
     pollutants or averaging tunes. They may come up with
     different areas for several different pollutants and times.
40.  Things done for impact area determination overlap with other
     steps. The modeling plan will cover screening analysis, air
     quality projection, and possibly existing air quality. The
     meteorological data will also apply to these other steps.
                                              7-6

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41.  The impact area itself is basic to the remaining steps of Air
     Quality Analysis. It is primarily for the impact area that the
     emission inventory is assembled, and air quality is measured or
     projected.
                                                     Emission
                                                     Inventory
                                                                                       Air Quality
42. The second step in Air Quality Analysis is to establish an
    inventory of other pollutant sources.

43. The question immediately comes to mind— What other
    sources? Where? For what pollutants? Somehow,  the job of
    emission inventory has to be kept to a reasonable size, so it
    can be done adequately in the time available for a PSD
    application.

44. Once again, the principle is to concentrate on things that
    make a difference.  The answer  to the question, "what
    pollutants?"  is fairly straightforward. The inventory will cover
    those criteria pollutants that will have significant impacts. It
    may have to include non-criteria pollutants if there are —or
    could be —high concentrations of them, threatening public
    health  or welfare.
                                         2. Establish inventory of
                                           other pollutant sources
                                            • What other sources?

                                            • Where?

                                            • What pollutants?
                                        Pb
                                          O,
                                             CO
                                        TSP
                                             S02
                                          NO,
          • criteria
           pollutants
           that have
           significant
           Impacts
45.  This again involves preliminary dispersion modeling in the
     process —mostly the modeling done to determine the impact
     area. Generally, if this modeling shows no significant impact
     from a criteria pollutant, that pollutant can be dropped from
     emissions inventory and other analysis requirements.
46.  However, there's an important exception to this dropping of
     criteria pollutants from inventory and analysis. If the proposed
     source or modification is located near a Class One area, a full
     analysis may have to be made for any pollutant with more
     than a one microgram per cubic meter impact on the Class
     One area. This one-microgram impact is for a short averaging
     time—twenty-four hours. That makes it a pretty sensitive
     "trigger" for expanded review.

47.  After deciding which pollutants to inventory, we still have
     questions of where, what sources, and how. To help decide
     these questions, we break the overall  emissions inventory into
     three types.
                                          3 Types of Inventories
                                             7-7

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Selected Visuals
48.  The size and nature of each type of emissions inventory will
     depend on the particular situation under study. The three
     types of inventory are:
         —increment-consuming emissions of particulate matter
            and sulfur dioxide,
                                              3 Types of Inventories
                                                    King emluloiu of TSP
49.       —all existing emissions that affect air quality in the
            impact area, and
                                              3 Types of Inventories

                                                    ilng «nlMiofM of TSP

                                                     •ff«cdng air quality
                                                                               •ndSO,
                                                                               > nlsHitg.
                                                                               In Impact araa
50.       —any emissions from emission units that have permits,
            but aren't operating yet, if they will affect impact-area
            air quality.
                                              3 Types of Inventories

                                           • increnwnt-consuintna emlaaloiM of TSP
                                            and SO,
                                           • muting tmlulofli affactlng air quality
                                            In Impact area
                                           • .emlMlona from units with parmlti
51.  We will discuss the requirements for the increment-consuming
     inventory in a little more detail than the other two. All
     emission inventories have some features in common. The most
     important are identifying emissions units and getting
     emission rates for them, for each pollutant covered.

52.  Doing an increment-consuming inventory assumes that we've
     reached the point where an air  quality analysis is needed for
     TSP or SOZ—or both. It also assumes that there is a signifi-
     cant impact for one or both of  them.
                                              Common Features

                                            • identification of emissions
                                             units
                                            • getting emission rates
                                             Increment-Consuming
                                                 Inventory

                                            AQ analysis needed for TSP
                                            andSOj
                                            significant impact
53.  The increment-consuming inventory should include all
     particulate matter and sulfur dioxide emissions, within the
     impact area, that can consume increment.

54.  It should also include emissions outside the impact area that
     may have a significant impact within the area.
                                            TSP and SO2 emissions,
                                            within impact area, that
                                            can consume increment
                                            TSP and SO2 emissions.
                                            within impact area, that
                                            can consume increment
                                                                               emissions, gjitgidg impact
                                                                               area, that may have
                                                                               significant impact within area
55.  This can mean considering large sources as far as fifty
     kilometers away from the applicant's impact area.
                                               7-8

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56.  It generally works out that for short-term increments—
     24-hour and 3-hour averaging times—only increment-
     consuming emissions within the impact area need counting.
     However, on an annual basis, large sources  up to fifty
     AciJometers away can have impacts inside the applicant's
     impact area.

57.  To determine which sources outside the impact area need to
     be counted, the applicant can set up an additional screening
     area. This area is a ring that extends up to  fifty fctZometers
     beyond the impact area.
                                        Short-Term

                                        • count
                                         emissions
                                         within
           Annual

          • consider
           sources
           outside
                                                     Emissions
                                                     Inventory
                                                     Screening
                                                      Area
58.  Only some of the sources in the screening area need to have
     their increment-consuming emissions inventoried. To decide
     which ones, the applicant considers:
         — annual emissions of the source,
         — potential ambient air quality impacts, and
         — the source's distance from the impact area.

59.  For example, a source that emits one hundred tons per year,
     located ten  kilometers from the impact area, could generally
     be dropped from the inventory. Its impact on air quality
     inside the area would be insignificant.  But a ten thousand ton
     per year source at forty kilometers would probably have to be
     inventoried.
                                        Sources in Screening Area

                                        Consider:
                                          • annual emissions
                                          • potential Impacts
                                          • distance from impact area
                                                     Emissions
                                                     Inventory
                                                     Screening
                                                      Area
60. Those two examples are not intended to be rules of thumb.
    The applicant can apply a fairly simple screening model
    technique to sources outside the impact area.
                                                 Screening
                                                   Model
61. The results of the simple modeling procedure will indicate
    whether or not a source's emissions have to go into the emis-
    sion inventory.
                                             7-9

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62.  Like any other modeling application, this calls for a written
     record of assumptions, procedures, and conclusions. This
     documentation lets the reviewing agency check what's been
     done.
63.  Within the impact area, and for the identified sources outside
     the impact area, the applicant prepares a list of emission
     units for the applicable pollutants. For each unit, an emission
     rate is needed, since the emission rate is one of the basic
     inputs to an air quality model.
                                               AMdmptioci*

Unit
1
2
3
4
ttxu/1*"
TSP




MJ,




NO,




CO




HC




Fb




64.  For the first attempt at running the increment-consumption
     inventory and analysis, allowable emissions should be used. In
     most cases, allowable emissions—what regulations or permit
     conditions allow—will be greater than actual, sometimes
     much greater.
                                                       use
                                                       allowable
                                                       emissions
65.  There are two reasons for using allowable emissions on the
     first try:
         — it is easier to get allowable rates from State emission
           files,  and
         — analysis based on allowable rates will give more
           conservative results.
                                        • easier to get allowable rates
                                         from State emission files

                                        • will give more conservative
                                         results
66. These reasons are important because the air quality analysis
    should be reliable and economical. State emission files are
    the proper source for emission data in the application. If the
    applicant has to go beyond these files, the data will be less
    reliable and cost more time and money to get.

67. Also, a conservative analysis is usually less expensive and more
    persuasive.  It says, "We can show we'll be in compliance with
    the regulations, even using pessimistic estimates." When this
    approach works, it saves the time and effort required to get
    more detailed actual information. And it indicates that there's
    a "margin of safety" in the compliance demonstration based
    on allowable emissions data.
                                         An AQ analysis must be..

                                              • reliable
                                              • economical
                                        A conservative analysis is...

                                           • less expensive
                                           • more persuasive
                                             7-10

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68.  But — applicants can't always demonstrate they won't use up
     available increment, using allowable emissions data on other
     sources. In that case,  another try must be made, using actual
     emissions data.
                                                       use actual
                                                       emissions
69.  These are harder to get.  Often, State engineering personnel
     and employees at other sources have  to be interviewed. The
     applicant will have to build a reviewable record of where the
     actual data came from, and how.
                                           • harder to get

                                           • must build reviewable record
                                            • where data obtained
                                            • how data obtained
70.  The two other kinds of emissions inventory—existing
     emissions, and expected permitted emissions —are generally
     similar to the increment-consuming inventory. They are
     compiled to show that no National Ambient Air Quality
     Standard will be violated.
                                            3 Types of Inventories

                                         ' IncTcnMnxonsunUng emiaetona of TSP
                                          and SO,
                                          existing emtaeiona affecting air quality
                                          In impact area
                                         ' emiaalona from unit! with permita
71.  In both of these emissions inventories, we have to deal wr.h all
     of the criteria pollutants that would have a significant impact
     from the proposed construction. This opens the list up  from
     the TSP and SO2  of the increment-consuming inventory. But
     it limits the inventory,  too. The applicant has to inventory
     other sources' emissions only if the new source or modification
     will have a significant impact from emissions of those
     pollutants.
                                         • all criteria pollutants that
                                          would have significant impact
72.  For the inventory of existing emissions, actual emissions
     should be counted, if actual data are available. This is to tie
     what is coming out of existing sources to what ambient air
     monitors would measure. Of course, for emissions units that
     have permits, but aren't operating yet, the only available
     emissions data are-their potential to emit.

73.  The third of the five steps in Air Quality  Analysis is to
     determine existing ambient concentrations.

74.  Basically, this is a matter of monitoring ambient air quality,
     but adjustments — using dispersion modeling—may be needed.
                                       Inventory of Existing Emissions
                                                  • actua^eraiuiona.
                                                   for operating aourcea
                                                  • potential to emit.
                                                   for Murcea not yet
                                                   operating
                                         3. Determine existing
                                           ambient concentrations
                                        3. Determine existing
                                          ambient concentrations

                                          • monitoring air quality
                                          • but adjustments may be
                                           needed
                                              7-11

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75.  Ambient air quality monitoring is a major component of the
     art and science of air pollution control. We can't deal with it
     in detail here. Despite all the complications, we want to keep
     in mind that the basic purpose is to find out what is the
     existing situation that will be affected by the proposed
     change.
                                                  Basic Purpose
                                                    determine
                                                    existing
                                                    situation
76.  The regulations require the applicant to include up to one
     year of preconstruction monitoring data in the application.
     The pollutants that have to be monitored are any criteria
     pollutants the source would emit in significant amounts. This
     doesn't include nonmethane hydrocarbons. Some noncriteria
     pollutants may also have to be monitored, if the reviewing
     agency determines it  is necessary.
                                            One Year of Data
                                              (generally)

                                            • preconstruction
                                            • criteria pollutants
                                             • fllgniftcam amount*
                                              (In. NMHC)
                                            • noncriteria pollutant!
                                             possibly
77.  The general rule is that if the proposed new source or
     modification will have a significant increase in emissions of a
     pollutant, continuous monitoring data will be required. This
     not only includes air-quality data but may also include on-site
     meteorological data collection for input to an air quality
     dispersion model in the later Air Quality Analysis steps.
                                             General Rule...
                                         If:
                                           proposed source/modification
                                           will have significant increase

                                         Then:
                                           continuous monitoring will
                                           be required
78. There are exceptions to keep this requirement from being too
    burdensome. The regulations list a set of air quality values
    and averaging times. If the source's predicted impact or the
    existing air quality readings are lower than these, the
    reviewing agency can say no monitoring is needed for that
    pollutant.

79. This exception means that before the applicant does anything
    else on monitoring, it should estimate source impacts and
    total existing air quality  for the area.
                                               Exception

                                           If predicted impact or
                                           existing readings are lower
                                           than listed values, reviewing
                                           agency can say no monitoring
                                           Is needed.
                                                • source Impacts
                                                                                    total existing air
                                                                                    quality
80.  There are two ways to satisfy the preconstruction monitoring
     requirements. First, the applicant can use existing continuous
     monitoring data collected by an air pollution control agency.
     Second, the applicant may have to conduct its own site-
     specific monitoring program. How much of each approach is
     used depends on the quantity and quality of available data.
                                            2 Ways to Satisfy
                                             Requirements

                                           use existing monitoring data
                                           collect site-specific
                                           monitoflngaata^^
                                              7-12

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81.  To decide when and where monitoring is required, what
    pollutants must be monitored, and whose monitoring data
     will be acceptable, the applicant must consider many factors.
     The reviewing agency also has to take part in making the
     monitoring decisions. These decisions will be based on the
     EPA regulations and on guidance in  the Ambient Monitoring
     Guidelines for PSD.

82.  If the applicant is going to use existing monitoring data, it
     must make sure the data meet certain criteria. These criteria
     are:
         — One, sufficiency, or completeness,
         — Two, representativeness,  and
         —Three,  reliability.

83.  Air pollution control agencies —Federal, State,  and local —
     have been gathering air quality data  for years.  But the data
     on file may not meet the requirements of PSD Air Quality
     Review. Using the Guideline, the applicant and reviewing
     agency must check whether the  data  meet the criteria.
                                          Criteria for Existing Data

                                           • sufficiency/completeness
                                           • representativeness
                                           • reliability
84.  Are there enough data for analysis? Do they represent the
     source site and impact area? Can they be relied upon?
85.  If existing data cannot be used, the applicant is going to have
     to carry out a program of site-specific monitoring. In
     addition to selecting,  buying,  and running appropriate
     monitoring equipment, there are two major procedural
     aspects of the requirements. They are:
         — site selection and
         — quality assurance.

86.  Site selection involves deciding on the number and location
     of monitors. It will call for dispersion modeling to decide what
     points within the impact area are most appropriate.  For PSD
     application monitoring, the sites should represent the highest
     projected concentrations in the  impact area.
                                          • Enough data for analysis?

                                          • Do they represent site/
                                           impact area?

                                          • Can they be relied upon?
                                          Site-Specific Monitoring

                                          • selecttng/buying/running
                                           equipment
                                          • site selection
                                          • quality assurance
                                         Site Selection

                                           • number of monitors
                                           • location of monitors
                                           • dispersion modeling
                                             7-13

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87.  Quality assurance is a system for making sure the air quality
     data collected are consistent and reliable. The Federal
     requirements for air monitoring quality assurance are spelled
     out in Appendix B to 40 CFR Part 58.

88.  Appendix B requires the applicant who monitors air quality to
     draw up a detailed quality assurance plan. The plan has to be
     approved by the permit-reviewing authority.
                                         Quality Assurance

                                            • making sure data are
                                             consistent and reliable
                                            • 40 CFR Part 58. Appendix B
                                                 Quality
                                                Assurance
                                                 Plan
89.  The monitoring program itself calls for a detailed monitoring
     plan,  which the reviewing authority needs to comment on and
     approve. The five elements of this plan are laid out in the
     EPA Ambient Monitoring Guidelines for  PSD, which
     describe them in detail.

90.  They are:
         — One, Network description,
         — Two, Monitor -site description,
         — Three, Monitor (equipment) description,
         — Four, Sampling program  description, and
         — Five, Quality assurance program.

91.  The preconstruction monitoring  program is another point in
     the PSD permit  application process where large volumes  of
     information are  gathered.
                                           1. Network Description
                                           2. Monitor Site Description
                                           3. Equipment Description
                                           4. Sampling Program
                                             Description
                                           5. Quality Assurance Progian
92. This information has to be used by the applicant in decision
    making. The reviewing agency has to go over it. To make the
    information useful, it has to be presented in a rational
    format. The exact format will be specified by the reviewing
    agency.
93. At a minimum, the monitoring data should be set out in a
    summary format. This will arrange pollutant concentrations
    by averaging time and frequency. For pollutants like SO2,
    NO2, or paniculate matter, this means giving both the highest
    concentration and highest second-highest concentration for
    averaging times of less than one year.
                                       Highest and Highest Second-Highest
                                           Concentrations
                                    Pollutant
                                     SO,
                                     NO,
Time Period
  3-hour
  24-hour
  annual
  annual
  24-hour
Maximum  Second-Highest
 329     277
  68      61
  12      -
  29      -
  110     101
  51      -
                                             7-14

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94.  Of course, actual monitoring data —as recent as possible —is
     preferred for the Air Quality Analysis. But the analysis also
     has to account for the effects of emissions that are already
     permitted,  but that didn't occur during the monitoring
     period.
95.  To do this, the actual monitoring data must be adjusted. The
     applicant adjusts monitoring data by applying information
     from the emissions inventory to an appropriate dispersion
     model.
96.  Once again, we've reached a point where the data for an
     analysis have been gathered and organized. The impact
     area —or areas —have been defined, emissions inventory and
     existing air quality data have been compiled.  The remaining
     two steps of Air Quality Analysis involve applying the
     assembled data to see what happens to increment consump-
     tion and  air quality standards with the  new operation.

97.  The fourth step in Air Quality Analysis is to perform a
     screening model analysis.  A screening air quality dispersion
     model may not require extensive computer tune or
     sophisticated equipment to run. It produces approximate
     results, and  is normally designed to be conservative.  In cer-
     tain circumstances, no further modeling may be required.

98.  The applicant will get three pieces of essential data from the
     screening analysis. They are:
         — One, an approximation of the maximum impacts
            downwind of the source,
         — Two, a general idea of the location of the maximum
            impacts, and
         — Three, quick, preliminary results.
                                         4. Perform a screening model
                                           analysis

                                           • doc* not require extensive
                                           computer time or sophisticated
                                           equipment

                                           • produce* approximate results
                                           • la conservative
                                        Benefit of Screening Analysis

                                         • approximation of maximum
                                          downwind impact

                                         • a general idea of the location
                                          of maximum impact

                                         • quick preliminary results
99.  This analysis is a lot like the impact area determination.
     However, here we're using the complete emissions inventory
     that fits the analysis, not just the changes from the new source
     or modification.
                                                Total
                                               Emissions
                                               Inventory
                                             7-15

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100.  For the screening analysis, then, the applicant should count
      three kinds of emissions:
          —stack emissions,
          —fugitive emissions that are quantifiable, and
          —secondary emissions, if they are quantifiable and are
            expected to affect impact-area air quality.

101.  In dealing with stack emissions, we have to remember that
      EPA has Good Engineering Practice—GEP—stack height
      regulations. Some stacks that appear in the emissions
      inventory may be taller than GEP heights. For those stacks, a
      GEP height has to be figured, using procedures from the EPA
      Guideline on Air Quality Models. This is the stack height that
      must be used in both the screening and refined modeling
      procedures.

102.  The conservative and approximate results of the screening
      model may indicate that no PSD increment or air quality
      standard is threatened. On the other hand, the screening
      analysis may show that more than  the available increment will
      be used up, or an ambient standard will be violated. If
      screening shows any kind of violation, then a refined model-
      ing analysis must be done.

103.  If the screening analysis does not indicate using more than
      available increment, or exceeding an ambient standard, then
      the applicant can reach an agreement with the reviewing
      agency. The agreement will be to accept the screening model
      results as conservative projections of source  impacts. In this
      case, the applicant may not have to do a refined modeling
      analysis.

104.  In some cases, however, screening analysis may not show a
      clear situation where no increment or standard  is threatened.
      In these cases, the applicant must go on to  the fifth —
      and last—step in Air Quality Analysis.  That is to determine
     projected air quality levels by means of a refined air quality
      dispersion model:

105.  The refined analysis itself is a fairly complicated procedure
      involving computer use. The details are too complex to deal
      with here.  However, all the data-gathering  steps we've talked
      about so far were leading up to this point.
                                         If:
                                          screening predicts a violation

                                         Then:
                                          refined analysis must be done
                                         If:
                                          screening predicts jio^violation
                                         Then:
                                          agency may accept screening
                                          results as projections
                                         5. Determine projected
                                          air quality
                                            7-16

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106. Because no two cases of refined modeling application are
     exactly alike, the applicant may find it advisable to design a
     special plan, following the EPA Guideline on Air Quality
     Models or any  supplemental State guidance. We mentioned
     this plan earlier, and remarked that it, is essential that the
     applicant develop the plan, propose it to the reviewing
     agency, and get agency agreement on it.

107. In specific cases, special modeling considerations may come
     up. These could include:
          —using some alternative model that is better suited to
            this application,
          — problems of modeling in complex terrain, or
          —modeling pollutant sources that are not points—but
            rather are lines or areas.

108. Here again, it  is essential for the  applicant to get agency
     agreement on a detailed modeling plan before committing
     itself to a complex and expensive modeling program.
                                         Refined Modeling Analysis

                                          • should adhere to modeling
                                           guidelines
                                          • work closely with
                                           review agency modeling
                                           contact
                                           • alternative models

                                           • complex terrain

                                           • line or area sources
109. The result of refined modeling will be projected air quality
     data. The exact form will depend on the model. In any case
     there will be concentrations for certain averaging times at
     points in the impact area. These are compared with available
     increments or ambient standards  to detect any violations.

110. In this lesson and the previous one, we have described one of
     the most important analysis steps in the PSD application
     process:  Air  Quality Analysis. Put simply, it is a way of seeing
     what will happen to air quality if the proposed source or
     modification is constructed.

111. The Air Quality Analysis can be broken down into five
     analysis steps and three interrelated phases. The five steps
     are:
          — One,  define the impact area,
          —Two,  establish inventory of other sources,
          —Three, determine existing ambient concentrations,
          — Four, perform screening analysis, and
          — Five, determine projected air quality—by refined
            modeling, if needed.
                                        What will happen to air quality?
                                               5 Steps

                                          1. Dcfliw tlM ffflpactarf
                                          2. Ettabtish Inggy^g?

                                          5. OvtmniiM proi«««d air quality
                                             7-17

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112. The three phases are:                                                         3Phases
          — One, analyze increment consumption,                           L AMI«. incrementcon.un.Ddon
          —Two, determine existing air quality,  and                        2- o««™i"««i;tin3pa,r quality
                                   7     ;.    J                             3. Protect future air quality
          —Three, project future air quality.
                              i
113. With the results of this analysis and the BACT Analysis, the
     applicant has assembled, probably, a quite bulky document.
     What remains to be done now is the Additional Impacts
     Analysis and detailed agency review.
114. (Credit slide)
115. (Northrop slide)
                                                                                Ab Qulltt Autote II
                                                                               EPA Contact No. 6S-02-3573
116. (Northrop slide)                                                          i98o°*pso workshop.
                                                                             U.S. Environmental Protection
                                                                                   Agency
                                                                            Office of All Quality Planning and
                                                                                   Standard!
117. (NET slide)
                                                                            Environmental
                                                                            Training
                                              7-18

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                                              SI:453
                                            Lesson 8
                            Additional Impacts Analysis
Slide                            Script

 1.  (Focus)

 2.  This is Lesson Eight, "Additional Impacts Analysis."
 3.  We have just gone over some very detailed and demanding
    •requirements for PSD permit applications. These requirements
    come from Title One,  Part C of the Clean Air Act, and from
    EPA regulations that carry out the Act.
 6.
We have already discussed determination of applicability,
Best Available Control Technology (BACT) analysis,  and air
quality analysis. The regulations spell out in considerable
detail the requirements for these analyses. EPA Guidelines go
on to show how  to do these important steps.

Our last stage in the application process—Additional  Impacts
Analysis—is somewhat different. These are definite
requirements in  the Act to deal with effects other than
increment consumption and ambient air standards. However,
they are not very detailed.

In about seventeen and a half pages of EPA PSD regulations,
the subsection "Additional Impact Analyses" takes up about a
third of one column on one page.
 7. This doesn't mean that Additional Impacts Analysis is a lot
    less important than everything else, something the applicant
    can toss off as an afterthought. It does mean that the analysis
    has to be carefully planned to fit the situation.
                                                                     Selected Visuals
                                                                         FOCUS
                                                                        Additional Impacts Analysis
                                                                       The Clean Air Act
                                                                               Title 1
                                                                               PartC
                                                                         • Applicability determinations

                                                                         • BACT Analysis

                                                                         • Air Quality Analysis
                                                                                   ' Additional
                                                                                    Impacts
                                                                                    Analysis
                                                                      • planned carefully to
                                                                       fit the situation
                                              8-1

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 8. From the law and regulations, we can learn that Additional
    Impacts Analysis is concerned with determining air pollution
    impacts on three things—
         —soils,
         — vegetation, and
         — visibility.

 9. The air pollution that has these impacts comes from —
         —emissions from the new source or modification, and
         —emissions resulting from associated growth.
                                         Additional Impacts Analysis

                                               • soils
                                               • vegetation
                                               • visibility
                                                                                      auod>t«d growth
10. There are three basic purposes for the Additional Impacts
    Analysis.  They are:
         One,  assist Best Available Control Technology—BACT—
         decision making,
         Two, inform the general public of potential air quality-
         related impacts, and
         Three, provide the Federal Land Manager with infor-
         mation on  potential Class One area impacts.

11. When you take all of these considerations together, you get
    something pretty broad and general. But the requirement for
    Additional Impacts Analysis is more specific. It probably
    wouldn't be useful to look at all the effects of everything  on
    everything else, even if there were enough time and money to
    do it.
                                               Purposes

                                         1. Assist BACT decision making

                                         2. Inform the general public

                                         3. Provide Federal Land Manager
                                          with Information
12. By now, this should sound familiar. We want to narrow the
    scope of our analysis to where we get useful, significant infor-
    mation with the time and other resources available. For this
    analysis, however, there is very little in  the way of required
    format. A "fill in the blanks" approach won't work.
13. But the applicant can decide what kind of analysis is needed,
    how to organize it, and what method to use.
                                             • kind of analysis

                                             ' organization

                                             • method
                                             8-2

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14. These, decisions about the overall direction and methods of
    Additional Impacts Analysis can be made easier by keeping
    six basic points in mind. They are:
         First,  the depth of the analysis,
         Second, the public information elements,
         Third, what triggers review,
         Fourth,  the focus on concentration-impact relations,
         Fifth, the need for full documentation, and
         Sixth, the flexibility of possible approaches.

15. First, the depth of the analysis depends on the expected
    impacts. Every applicant must do an Additional Impacts
    Analysis. But the analysis does not have to be equally deep in
    different cases. How deep the analysis goes in any particular
    area depends on many things, most importantly:
         — the quantity of emissions,
         — the existing air quality, and
         — the sensitivity of local soils, vegetation, and visibility
           to effects of the emissions.
                                             1. Depth
                                             2. Public Information
                                             3. Triggers
                                             4. Concentration-Impact
                                              Relations
                                             5. Documentation
                                             6. Flexibility
                                           1. Depth
                                              • quantity of emissions
                                              • existing air quality
                                              • sensitivity of soils.
                                               vegetation, and visibility
16. Common sense suggests that small emission increases will not
    produce major impacts. However, the applicant must survey
    the impact area and make sure it can actually expect "no
    significant impact." The conclusion has to be documented, so
    it can be checked.
17.  Second, public information is one of the primary goals of the
     Additional Impacts Analysis. The general public will be
     taking part in the permit process through hearings and
     comments on the record. The public is most interested in how
     the proposed project will effect things directly connected to
     their daily lives and well-being. The analysis should address
     these impacts in a way the public can understand.

18.  Potential impacts on Class One areas should get special,
     thorough treatment.
                                          2. Public Information

                                             • effect on daily lives
                                              and well-being
                                              8-3

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19.  Third, the review may be triggered for both criteria and
     noncriteria pollutants. The Additional Impacts Analysis has
     to consider the effects of all pollutants under review—on soils,
     vegetation and visibility.

20.  Fourth, and closely related to that last point, the analysis
     deals with the effect of each pollutant under review on air
     quality-related values. This means the applicant has to explore
     concentration-impact relations—how concentrations of these
     pollutants, are related  to changes in soils, vegetation, and
     visibility.

21.  In analyzing the effects of all the pollutants under review,  the
     applicant has  to remember that two kinds of emissions must
     be accounted  for. They are:
         —direct emissions from the new source or modification
            itself, and
         —secondary emissions from residential, commercial, or
            industrial growth associated with  the project.

22.  Fifth, full documentation is very important to the Additional
     Impacts Analysis.  The analysis creates a public record of fairly
     complex and tmobvious reasoning on technical topics. Both
     the public and the reviewing agency need to be able to go
     over the analysis point by point to check facts, assumptions,
     and conclusions.
                                            3. Triggers
                                               • criteria pollutants

                                               • noncriteria pollutants
                                       4. Concentration-Impact Relations

                                          • effect on air-quality-related values

                                          • how concentrations are related to
                                           changes In soils/vegelatlon/visibility
                                                      associated growth
                                            5. Documentation

                                               • public record of:
                                                 • facts
                                                 • assumptions
                                                 • conclusions
23.  Sixth, there is considerable flexibility in doing an Additional
     Impacts Analysis and documenting the results. We'll go
     through one basic method for approaching the analysis here,
     but it isn't the only way. There is no "cookbook" approach to
     Additional Impacts Analysis. What is important is that the
     applicant recognize all significant factors and their impacts,
     and carefully analyze them.

24.  There are three component analyses that make up the
     Additional Impacts Analysis:
         — a Growth Analysis
         — a Soils and  Vegetation Impact Analysis, and
         — a  Visibility  Impairments Analysis.
                                           6. Flexibility

                                               • there is no "cookbook"
                                                approach

                                               • must recognize/analyze
                                                all significant factors
                                         Additional Impacts Analysis

                                           • Growth Analysis

                                           • Soils and Vegetation
                                            Impact Analysis

                                           • Visibility Impairments
                                            Analysis
                                              8-4

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25. The Growth Analysis has to come first. It produces basic
    information for the other two component analyses. The
    growth analysis itself breaks down into three elements:
         — projection of associated growth in the impact area,
         —estimates of emissions caused by permanent
           growth, and
         — analysis of air quality resulting from  these emissions.

26. To project the growth associated with building and operating
    the new source or modification,  we need to consider three
    kinds of growth: industrial, commercial, and residential.
                                            Growth Analysis

                                         1 projection of associated growth

                                         1 estimates of emissions

                                         ' analysis of air quality
27. We also need a starting place for projecting growth. We
    describe the existing base in terms of two kinds of support
    factors:
         — Local Support Factors, and
         — Industrial Support Factors.

28. Local support factors are related primarily to population and
    its growth. They include:
         — the existing housing supply and its ability to expand,
           and
         — the commercial base for supporting residential
           growth—construction companies, suppliers, and so on.

29. Industrial support factors  are tied more closely to the running
    of the source itself. They include:
         — raw materials suppliers,
         — utility and power suppliers, and
         — maintenance and support  services.
                                          • Local Support Factors

                                          * Industrial Support Factors
30. There are many good sources for basic information on existing
    Local and Industrial Support Factors. These include:
         — State agencies (like the Department of Commerce),
         — regional planning offices,
         — local Chambers of Commerce,
         — Environmental Impact Statements, and
         — PSD applications previously prepared by other
           applicants.
                                          Sources of Information

                                          • State agencies
                                          • Regional planning offices
                                          • Chambers of Commerce
                                          • Environmental Impact
                                           Statements
                                          • PSD applications
                                              8-5

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31.  All this information on support factors indicates what exists
     now. The next step is to project how much new growth must
     take place to support the new source or modification. Some of
     the same organizations that provided the baseline data can
     help in making this projection.
32.  A new operation can result in residential growth. How much
     growth depends—among other things—on:
         — the work force available now,
         — the number of new employees, and
         — the current housing supply.

33.  There is likely to be more  or less industrial growth to support
     the new operation. Important elements for projecting growth
     in local industry and commerce include:
         — the kinds and amounts of .raw materials needed,
         — the water, sewer, and power needs of the source,  and
         —other goods, services, and maintenance requirements.

34.  The different kinds of projected growth feed into the second
     element of the Growth  Analysis, emissions estimates. In some
     ways, this  is like the inventory of other sources used in the
     overall Air Quality Analysis.
                                                 • current
                                                  workforce

                                                 • new employees

                                                 • housing supply
                                                 • raw materials

                                                 • water/sewer/
                                                  power needs

                                                 • goods/ services/
                                                  maintenance
                                                  requirements
35. Anywhere that specific industrial or commercial pperations, or
    emissions units within them, can be identified, "hard"
    engineering estimates should be used.
36. Keep in mind, however, that we're talking about projec-
    tions—estimates of growth that may take place. It may be
    necessary to estimate future emissions from things like popula-
    tion growth.  For example, there are rough rules for projecting
    dry-cleaning use, and therefore volatile organic emissions,
    from population figures.
                                             8-6

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Script
Selected Visuals
37. Emission estimates can be made on the basis of many
    information sources, including:
         — equipment manufacturers' specifications and
           guidelines,
         — AP-42, the EPA Compilation of Emission
           Factors
         —other PSD applications, or
         — comparisons with existing facilities.

38. All of these projected emissions will be those from permanent,
    stationary sources.  Temporary sources and mobile sources are
    excluded from the analysis.
39. At this point, the applicant has a fair handful of data. It has
    to be put together so some use can be made of it. The
    putting-together involves adding up the projected-growth
    emission estimates and the emission estimates for the source.
    Together, these are inputs for the next element of the Growth
    Analysis.

40. The third element of the Growth Analysis is projecting air
    quality resulting from the emissions that come from the
    source and associated growth.
41. This isn't doing the whole Air Quality Analysis part of the
    application process all over again. For one thing, there may
    be several noncriteria pollutants to be considered here. For
    another thing, we have a mix of projected emissions data
    ranging from "hard" to "soft."

42. Without going deep into the details, we can say that the
    projected total emissions data are plugged into appropriate air
    pollution dispersion models. The computer then generates
    projections of ground-level concentrations of the pollutants
    under review. These concentrations are part of the informa-
    tion package for Additional Impacts Analysis. They also feed
    the next component analysis —Soils and Vegetation.
                                            8-7

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Script
Selected Visuals
43.  This second component analysis uses the results of air quality
     modeling as a basis to estimate the effects of air pollution on
     soils and plants in the impact area.
                                             Soils and Vegetation
                                                 Analysis

                                            • estimates effects on soils
                                             and plants
44.  Different air pollutants can have a variety of effects on plants.
     Some of these are caused by pollutants absorbed directly from
     the air, and some indirectly, by way of water and soil. The
     effects show up as things like premature bud loss, leaf necrosis
     (tissue death), and plant death.
45.  When ambient pollutant concentrations are high, acute
     effects—short-term, possibly severe—often appear.
46.  But lower levels of exposure over long periods of time can
     have serious effects,  even if they're usually less obvious.  The
     damages, in terms of loss of money or enjoyment, from long-
     term, low-level exposure, can be worse than from acute
     effects.
47.  A suggested approach to Soils and Vegetation Analysis breaks
     the task down into three elements:
         — a survey of soil and vegetation types,
         —projection of future ambient pollutant concentrations,
            and
         —correlation of concentrations with effects.
                                           • survey of soil and vegetation
                                            types

                                           • projection of future ambient
                                            concentrations

                                           • correlation of concentrations
                                            with effects
48.  The survey of soil and vegetation types in the impact area
     should include all vegetation of any value—whether
     commercial or recreational value.
                                        • survey of soil and vegetation types

                                         • all vegetation - commercial or
                                                   recreational
49.  It's not likely that the applicant will have to do the whole
     survey "from scratch." Much of the information-gathering has
     probably already been done by conservation groups, State
     agencies, and universities. It should be readily available from
     them.
                                        Information probably available from:

                                             • conservation groups
                                             • State agencies
                                             • universities
                                               8-8

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Script
Selected Visuals
50.  A summary of the soil and vegetation survey for a lowland
     part of a typical southern State might look something like this.
                                           Soil and Vegetation Survey
                                          Soil Types

                                          • sandy loam
                                          • loam
                                          • silt loam
         Vegetation Types

         • loblolly pine
         • southern red oak
         • soybeans
         • corn
51.  The second element of the Soils and Vegetation Analysis—
     projection of future ambient pollutant concentrations —should
     also come mostly from work already done. The Air Quality
     Analysis of the application process and the air quality
     projections of the Growth Analysis provide maximum and
     time-averaged figures for criteria and noncriteria pollutants.

52.  The third element of Soils and Vegetation Analysis is
     correlation of ambient concentrations with effects. It will call
     for  the applicant to do some research. There is a lot of
     scientific  literature on the damage that different air pollutants
     can do to various plants. There is no single, agreed-upon
     method for predicting how much damage to exactly what
     kinds of plants will result from certain levels of pollutants.

53.  The applicant can turn to the scientific literature for
     research results on relations of pollutant concentrations to
     effects. Also, the same conservation groups, State agencies,
     and university departments that had soil and vegetation
     survey information are likely to be able to help on predicting
     effects.
                                           • projection of future ambient
                                            concentrations

                                             • Information usually already available

                                             • for criteria and noncriteria pollutants
                                          • correlation of concentrations with
                                           effects

                                             • will require research

                                             • there Is no one single, agreedtipon
                                              .method for predicting damage
                                              • scientific literature
                                              • conservation groups
                                              • State agencies
                                              • universities
54.  As a general rule, criteria pollutant concentrations below the
     secondary ambient standards won't have harmful effects.
     However, there are exceptions to watch out for.
                                         Criteria pollutant concentrations
                                         below secondary NAAQS usually
                                         are O.K.
55.  Certain sensitive species of plants and types of soil can show
     damage at lower levels. Examples are alfalfa and soybeans.
     These sensitive items should be caught and "flagged" on the
     soils and vegetation survey.
                                                   • sensitive species
                                                    can show damage
                                                    at lower levels
56.  The noncriteria pollutants need to be approached more
     cautiously. Some of them can cause soil or plant damage at
     pretty low ambient concentrations, over a period of time.
                                           Noncriteria pollutants may
                                           cause damage at pretty low
                                           concentrations.
                                                8-9

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Slide
Script
Selected Visuals
57. Fluorides, for example, can cause this kind of leaf-tissue
    death at levels around half a microgram per cubic meter over
    a thirty-day period.
58.  It's important, again, to document the Soils and Vegetation
     Analysis. Its results aren't simple.  Its methods are likely to be
     special for this case.  Both the general public and the review-
     ing agency have to be able to go over data, reasoning, and
     conclusions.
59.  The third and last component analysis of the Additional
     Impacts Analysis is the Visibility Impairments Analysis.
60. "Visibility" generally means how well people can see. It
    includes ideas of how much of what there is to be seen can be
         »
    seen, and how far. The Clean Air Act says  that "visibility
    impairment" includes reduction in visual range (distance) and
    atmospheric discoloration.
                                        Visibility Impairments Analysis

                                           • how mucli can be seen
                                           • how far one can see
61.  Visibility impairment has to be assessed for any area on which
     the proposed source or modification has an impact. But the
     analysis is especially concerned with visibility effects on Class
     One areas. The Clean Air Act requires special plans and
     procedures for protecting visibility in mandatory Federal Class
     One areas.

62.  A suggested approach to Visibility Impairments Analysis
     breaks it  down into three elements:
       .  One, an initial screening for possible effects of emissions
         on visibility,
         Two, a more refined modeling analysis, */ needed, and,
         Three, a description of the area's visual quality.
                                           • initial screening

                                           • deeper modeling analysis

                                           • description of visual quality
                                             8-10

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Script
Selected Visuals
63. Class One area impacts may be estimated using EPA's
    Workbook for Estimating Visibility Impairment, which is
    available from NTIS as PB81 157885. The Workbook's
    methods are applicable to Class One and other  areas.
64. The Workbook outlines a three-level screening procedure.
    Levels One and Two are preliminary screening, while Level
    Three is application of a computer modeling analysis.
                                         3 - Level Screening Procedure

                                             I Preliminary Screening
                                                                              lft)  Computer Modeling
                                                                              '"]  An
                                              Analysis
65.  Level One visibility screening is a simplifying approach. It's
     intended to screen out emission sources that have little
     potential for adverse effects on visibility. For each source a
     standard calculation is made that relates emissions to visibility
     impact. The results are compared with a standard screening
     value. If the result for a source is less than the screening
     value, the source can be dropped from further visibility
     analysis. A higher value indicates potential visibility impacts.
     For such sources, further analysis is required.

66.  Level Two visibility screening is conservative. It uses assumed
     worst-case meteorological conditions. However, more informa-
     tion on the source, topography, and visual range and
     meteorology in the region is applied. The analysis can be done
     by hand calculations, using reference tables and charts. It can
     also be done as a fairly simple computer run  of EPA's
     PLUVUE Model.
                                            Level I Screening

                                          i simplifying

                                          > standard calculation for
                                           each source compared to a
                                           standard value
                                            Level II Screening
                                        • conservative
                                        • uses "worst-case" meteorological
                                         conditions
                                        • hand calculations or PLUVUE
                                         Model run
67.  Level  Three of the Workbook's screening procedure
     corresponds to what we've called a more refined modeling
     analysis. If the Level One and Two screenings indicate a possi-
     ble visibility impairment, the applicant should do a full run
     of the PLUVUE Model.  This will call for complete emissions,
     meteorological, and other regional data. The output will be a
     more accurate projection of visibility impacts, in terms of how
     severe and how often.
                                            Level III Screening

                                          • more refined modeling
                                           analysis
                                          • full run of PLUVUE Model
                                              8-11

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Script
Selected Visuals
68.  To wrap up the Visibility Impairment Analysis, the applicant
     should assemble a description of the area's visual quality.
     This description should include any scenic vista that has
  '  public appeal or aesthetic value.

69.  It should be obvious that there's no mechanical method for
     deciding what is or  isn't "scenic" or "aesthetic." But there is
     an area of general agreement on what kinds of changes
     definitely would or wouldn't harm an area's visual quality.
     The visual quality description should, at least, address these
     consensus values.
                                          Applicant should assemble a
                                          description of area's visualquajltv •
                                          Including sce
                                              • public appeal
                                              • aesthetic value
70.  If a Class One area might be affected, the applicant should
     contact the Federal Land Manager. Federal agencies that
     manage lands in Class One areas have formally identified
     visibility values in the areas.  They will also have detailed
     information that will assist the applicant to prepare the
     Visibility Impairments Analysis.
                                        Federal
                                         Land
                                       Manager
71.  The Visibility Impairments Analysis is the third and last
     component of the overall Additional Impacts Analysis.
                                         Additional Impacts Analysis

                                          1^X1 Growth Impacts Analysis

0                                             Soils and Vegetation
                                             Impacts Analysis

                                          1^71 Visibility Impairments '
                                          l_^_J Analysis
72.  The important points to remember about the Additional
     impacts analysis include:
         — one major  purpose is to inform the public of
           environmental impacts from a proposed new source or
           modification.
                                          • provide public information
73.       —the impacts to be examined are on soils, vegetation,
            and visibility,
                                          ' provide public information

                                          • examine Impacts on soils,
                                           vegetation, and visibility
74.       —the impacts can come from emissions from the new
            project or from associated growth.
                                          • provide public information

                                          ' examine impacts on soils.
                                           vegetation, and visibility

                                          1 impacts may be from new
                                           sources or associated growth
                                               8-12

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Script
Selected Visuals
75.  The Additional Impacts Analysis is made up of three
     component  analyses:
          — Growth Analysis,
          — Soils  and Vegetation Analysis, and
          — Visibility Impairments Analysis.
                                            Additional Impacts Analysis

                                               • Growth Analysis

                                               • Soils and Vegetation
                                                Impact Analysis

                                               • Visibility Impairments
                                                Analysis
76.  Each component analysis develops information for the next
     step.  Since there is no "cookbook" for doing these analyses, it
     is very important that the applicant document each step. The
     public and the reviewing agency should be able to see the
     facts, assumptions, and reasoning that lead to each
     conclusion.
                                              Applicant must document
                                              each step.
77.  The Additional Impacts Analysis completes the PSD
     application process. In the next lesson, we'll briefly review the
     steps to a complete application, and discuss how the reviewing
     agency takes  up its responsibilities.
                                                 Reviewing Agency
                                                 Responsibilities
78.  (Credit slide)
                                              Additional Impact* Analysis
                                                                                      Grtp*tc»: Lnito Whit*
                                                                                   PhMo«p*ph«f Aodto: David Chuichlll
                                                                                      Narration: Rich Palwr
79.  (Northrop slide)
                                             Developed and
                                             produced by:
                                                                                    Northrop Services, Inc.
                                                                                          under
                                                                                  EPA Contract No. 68-02-3573
80.  (Northrop slide)
                                            Ba**d In put on the:

                                                1980 PSD Workshops
                                                  prtpcrad (or the
                                             U.S. Environmental Protection
                                                    Agency
                                            Office of Air Quality Planning and
                                                   Standards
                                                     by
                                              TRW. Inc.. Enrlronmvnial Enelnn-rin* Olvluon
                                                  Northrop Scnkn. Inc.
                                                 EPA Coatnct N" 6*41-3174
81.  (NET slide)
                                                                                Northrop
                                                                                Environmental
                                                                                Training
                                                 8-13

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                                              SI:453
                                            Lesson 9
        Application  Summary  & Introduction to Agency Review
Slide

 1.  (Focus)
                            Script
 2.  This is Lesson Nine, "Application Summary and Introduction
     to Agency Review."
 3.  In the previous lesson, we outlined the last step of the PSD
    application process —Additional Impacts Analysis. We
    discussed a suggested  approach to meeting the flexible
    requirements of this analysis.

 4.  Now that we've finished up the application process, it's time to
    review the major steps and points to remember in that
    process. We have spent much more time on the applicant's
    work in putting together the  application than we  will on the
    reviewing agency's work in reviewing it. We want to
    understand why this is so. So this lesson will go on to contrast
    the responsibilities of the applicant and the reviewing agency
    in dealing with an application for a proposed new source or
    modification.
Selected Visuals
                                                                         FOCUS
                                                                       Application Summaiy
                                                                            and
                                                                         Introduction to
                                                                         Agency Review
                                                                      ^ Applicability Determination
                                                                      Z Ota AnlUM* Control
                                                                       Technology AnalyiU
                                                                      Ł Air Quality Analvai*
                                                                      E Additional Impact! Analvala
                                                                   Applicant's
                                                                   Responsibility
        Reviewing Agency's
          Responsibility
 6.
We began by tracing some of the development of the concept
of Prevention of Significant Deterioration—PSD. Through
court decisions, amendments to the Clean Air Act, and
changes in EPA regulations, we have arrived at the present
system.

This system works to prevent significant increases in air
pollution in areas where the air quality is already better than
National Ambient Air Quality Standards.
 7. At the same time, the system provides a margin for growth
    and development.
                                              9-1

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Script
Selected Visuals
 8.  The major mechanism for carrying out PSD is to require new
     major sources or major modifications in PSD areas to file a
     detailed application for a permit before beginning
     construction.
                                                -
                                                  Permit
                                                Application
 9.  The reviewing agency checks the application to be sure it
     meets PSD requirements.
10.  With a complete, satisfactory application, and after a public
     hearing,  the agency issues a permit. The permit contains
    Federally enforceable conditions to make certain the new
     operation will comply with PSD requirements, and remain in
     compliance.
11.  The application is the key to this process. It is a detailed
     engineering analysis done by the applicant.
                                        Permit
                                       Application
    • engineering analysis

    • done by the applicant
12.  It examines regulatory, technical,  and environmental-impact
     questions raised by construction of the new source or
     modification. It shows how construction and operation will be
     carried out to meet legal and regulatory requirements.
                                      I  Permit
                                      j Application
     • examines
      • regulatory
      • technical
      • environmental-Impact
      questions
     • shows how
      construction / operation
      will be carried out
13. The applicant puts the PSD application together in a step-by-
    step way. Each step provides information and go —no-go
    signals for the next.
                                      {  Permit
                                      | Application
     • step-by-step
      process
14. The major steps in assembling the complete application are
    these four:
    • Applicability Determination,
    • Best Available Control Technology Analysis,
    • Air Quality Analysis, and
    • Additional Impacts Analysis.
                                                 4 Steps

                                            • Applicability Determination
                                            ' Best Aullable Control
                                             Technology Analysis
                                            • Air Quality Analysis
                                            • Additional Impacts Analysis
                                               9-2

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Script
Selected Visuals
15. Each major step breaks down into smaller steps. Some of these
    are directly called for by the law and regulations. Some are
    simply efficient ways of getting the answers needed to meet the
    law and regulations.
16. We began with the Applicability Determination. The first
    thing we saw was that applicability asked two kinds of
    questions.  First, where will the proposed construction be?
    Second, what is the proposed construction? That is, there is:
    •  Geographic applicability, and
    •  Source applicability.

17. Geographic applicability depends on the classification of the
    area where the new source or modification will be built.
    Under Section 107  of the Clean Air Act, the States have  to
    classify all of their  Air Quality Control Regions. They can
    break them up and classify the parts.
                                               Applicability

                                            • JVhm will construction be? .
                                            • Whjtta Ih« construction?
18.  The classifications—which can be different for each criteria
     pollutant — are:
     •  Attainment—meets the National Ambient Standard,
     •  Nonattainment—does not meet the national standard, and
     •  Unclassifiable —information doesn't show whether or not it
       meets the standard.
19. Attainment and unclassifiable areas are PSD areas. The PSD
    regulations apply geographically within their borders. The
    more complicated question is source applicability.
                                         Attainment

                                           • NAAQS
                                                     Nonattainment
                                                      • docs not meet
                                                      NAAQS
                                     K
20.  We saw that PSD review requirements apply to major new
     stationary sources, or to major modifications to stationary
     sources. The definition of major stationary source was
     important for both new sources and modifications.
                                            • IMW stattonfttv sources
                                            • modifications
                                             9-3

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Slide
Script
Selected Visuals
21.  A major stationary source is one of two things:
     • a source on the list of twenty-eight categories, with
       potential to emit one hundred tons or more per year of
       any regulated pollutant, or
     • any unlisted source with potential to emit two hundred
       fifty tons or more  per year of any regulated pollutant.

22.  This took us on to the definition of potential to emit.  We do
     accounting of potential to emit for whole sources by totalling
     up emissions:
     • pollutant by pollutant—for any pollutant regulated under
       the Clean Air Act, and
     • emissions unit by emissions unit—with control equipment
       operating normally.
                                           Major Stationary Source
                                       •on list of 28
                                       categories

                                       • cmlu 100 tons or

                                       any regulated
                                       pollutant
           • emits 250 tons or
           more par yaar of
           any regulated
           pollutant
                                             Potential to Emit

                                           Total emlaUoos...
                                           • polhitant by pollutant
23.  Using the definitions of major source and potential to emit,
     we can set up three applicability tests. These tell us whether
     PSD review applies to proposed construction, and if it does,
     what level of review.
                                           3 Applicability Tests
                                          To
                                          * whether PSD reriev applies
                                          • U «o. *hat level
24.  Test One asks: "Is the source—new or existing—major for at
     least one regulated pollutant?" The total potential to emit for
     each pollutant is compared with the 100- or 250-ton criterion.
     If the source is major for any one pollutant, it's a major
     source, and the PSD review has to go  on to its next steps.

25.  The important exception to the rule in  Test One applies only
     if the area is nonattainment for a pollutant that makes the
     source major.  For that pollutant, the source has to undergo
     the  special nonattainment  area plan review.
                                               Testl
                                          Is the source major?
                                          • yes
                                          • no
       PSD review
       no PSD review
                                        HUIor
                                                 0
         Nonattainment
          Plan Review
                                                                       Nofuttalnment lor SO,
26.  So, if a proposed new source meets Test One—it's a major
     source for an applicable pollutant —PSD review applies. Or,  if
     a modification all by itself would be a major source, PSD
     review applies.
27.  But for any other modification to have PSD review apply, it
     has to be a major modification. A major modification is a
     change at a major source that results in a significant net
     increase in emissions of any pollutant regulated under the
     Clean Air Act.
                                             9-4

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Script
Selected Visuals
28.  We examined the emission levels set by EPA as significant for
     the pollutants regulated under the Act. We noted the special
     case for emissions that have a one microgram per cubic meter
     or greater impact on Class One areas.
29.  We also went over the fairly complicated business of netting.
     In netting, the emission changes from the modification are
     added up with all the creditable contemporaneous emission
     changes for each pollutant.

30.  Test Two takes  these numbers and asks,  "Is there at least one
     pollutant with significant net increases in actual emissions?"
     If there is, we have a major modification, and PSD review
     applies.
                                                Netting

                                           • counting up creditable.
                                            contemporaneous
                                            emluton changes
                                                Test 2

                                           Are there any significant
                                           net Increases?
31.  Test Three goes beyond the question of whether PSD review
     applies to a new source or modification, to what review and
     how much. It asks: "Which pollutants have significant
     increases?" For each pollutant that does have a significant
     increase, the applicant has to perform the three analyses of
     the  PSD application process.

32.  As we saw,  these three analyses are:
     •  Best Available Control Technology—BACT —Analysis,
     •  Air Quality Analysis, and
     •  Additional Impacts Analysis.

33.  Any proposed new source or modification  that comes through
     the  applicability determination with a finding that PSD review
     applies goes on to the next step. That step is BACT Analysis.

34.  We  called the BACT Analysis the core of  the PSD application
     process. This isn't —as we saw —because  everything is finished
     when you get through with  BACT. It's because BACT
     Analysis lines up information for the other two analysis steps
     and for corporate decision making on the  project.
                                                Test3
                                          Which pollutants have
                                          significant net increases?
                                            • BM Available Control
                                             Technology (BACT) Anaty»i»
                                            • All Quality Anarv*!*

                                            * AddlttoiuJ Impact* Anatinl*
                                          Best Available Control
                                           Technology (BACT)
                                               Analysis
                                              BACT Analy«ls
                                           * Information for other anaryMS
                                           • Information for corporate
                                            decision making
35.  Our first step in understanding BACT Analysis was to take
     apart the Clean Air Act definition of Best Available Control
     Technology. And the first thing we hit on there was what kind
     of thing BACT is. It is  an emission limitation, based on what
     can be accomplished with the best available technology.
                                                BACT
                                                 ban
                                            emission limitation.
                                              9-5

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Slide
Script
Selected Visuals
36.  The ideas of emission limitation,  best, and available shape
     the way BACT is proposed in an application, and the analysis.
     If possible, BACT will be an enforceable emission rate to go
     into the permit.  Only if something makes quantifying the rate
     impractical will you find a fall-back to fuel limits, work
     practice standards, or the like.

37.  The question of what limits  are best is settled
     case-by-case.  BACT is the best for the project being
     considered, in its particular  technical and economic situation.
                                                    BACT

                                               • enforceable emiielon rate*
                                               •turi llnuta
                                               1 work practice ctandards
                                               BACT Analysis
                                                      case-by-case
                                                      this plant
                                                      Its situation
38.  It's the maximum degree of reduction of each regulated
     pollutant, when availability is considered.
                                                   "Best"

                                            • maximum reduction
                                            • each pollutant
39.  When we turn to what available means, we find that it's what
     can be achieved taking into account energy, environmental,
     and economic impacts, and other costs.
                                                 "Available"

                                               Achievable, considering:
                                                Energy Impact*
                                                Environmental Impacts
                                                Economic Impact*
                                                Social Com
                                                Other COM.
40.  Keeping in mind that there's no pre-printed form—like a tax
     return—to fill out, we divided the job of BACT Analysis into
     four steps and three impact analyses.

41.  The four steps are:
       One, Pollutant Applicability,
       Two, Emissions Unit Applicability,
       Three,  Identification of Potentially Sensitive Concerns,
       and
       Four, Selection of Alternative Control Strategies.

42.  The three impact analyses are:
       One, Economic Impacts,
       Two, Energy Impacts, and
       Three,  Environmental Impacts.
                                               BACT Analysis

                                              • 4 Step*
                                              • 3 Impact Analyses
                                                   Steps

                                            1. Pollutant Applicability
                                            2. Emissions Unit Applicability
                                            3. Identification of Potentially
                                             Sensitive Concerns
                                            4. Selection of Alternative
                                             Control Strategies
                                               Impact Analyses

                                               Economic Impacts
                                               Energy Impacts
                                               Environmental Impacts
43.  In Step One, Pollutant Applicability, we found that for a
     new source,  any pollutant emitted in a significant quantity
     requires BACT Analysis.
                                                 New Major
                                                  Sources

                                               regulated pollutants
                                               emitted in significant
                                                9-6

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Slide
Script
Selected Visuals
44.  For a modification,  any pollutant emitted in significantly
     increased amounts gets BACT Analysis.
                                                  Major
                                               Modifications

                                             • regulated pollutants
                                             • emitted in significantly
                                               increased amounts
45.  In Step Two, Emissions Unit Applicability, the question is:
     "Which emissions units get BACT review?"
                                           2.    Emissions
                                              Unit Applicability

                                           • Which emissions units
                                             must be analyzed?
46.  For new sources, the answer is each emissions unit that emits
     any amount of a regulated pollutant.
                                                New Major
                                                  Source

                                               any unit that emits
                                                 ; amount^of a
                                                    ["pollutant
47.  For modifications, each emissions unit with any increase in a
     regulated pollutant has to apply BACT.
                                              Major Modification

                                              • any unit that shows
                                               any Increase in
                                               Tmtssionsot a
                                               r jgulated pollutant
48.  Remember that in Steps One and Two, fugitive emissions
     have to be dealt with, but secondary emissions are generally
     exempt.


49.  Steps Three and Four of BACT Review take the information
     from Steps One and Two and apply it to things outside the
     source.
50.  Step Three is Identification of Potentially Sensitive Concerns.
     In Step Three, the applicant lists the specific factors in the
     local area that may be affected by building and operating the
     new source or modification.
                                             Units producing only
                                             secondary emissions

                                              • exempt from BACT
                                               analysis
                                        3. Identification of Potentially
                                             Sensitive Concerns

                                          • Which areas could be
                                            affected?
51.  These factors include energy use, economics, and the
     environment.
                                         What effects can source have on:

                                              • Energy
                                              • Economics
                                              • Environment
52.  Remember that Steps One through Three gathered the
     information needed for the BACT Analysis. The quantitative
     evaluation and comparison comes in Step Four — Selection of
     Alternative Control Strategies.
                                               9-7

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Selected Visuals
53.  It is in Step Four that the applicant does an analysis of the
     different methods of control that are technically feasible on
     the source. The alternative  control methods are compared
     with the base case—the controls that would ordinarily be
     used.
                                             4. Selection of Alternative
                                              Control Strategic*

                                              • uwlmto at tKttaicallv
54.  The applicant ranks control alternatives against the base case
     and each other. The ranking is in terms of efficiency and
     effectiveness of control for the  pollutants under review.

55.  The alternative control strategies can be based on existing
     control technology or transferable technology.
                                              Applicant rank* control
                                               alternatives against
                                             be*e cue and each other.
                                                  4 Kinds

                                             • existing technology
                                             • transferable technology
56.  In some cases, the applicant might examine innovative
     control methods,
                                                  4 Kinds

                                            • existing technology
                                            • transferable technology
                                            • Innovative technology
57.  or industrial processes that are inherently lower polluting.
     Data on these alternatives can be drawn from other companies
     in the area, previously approved PSD applications, or the EPA
     BACT/LAER Clearinghouse.
                                                  4 Kinds

                                            • existing technology
                                            • transferable technology
                                            • innovative technology
                                            • inherently lower polluting
                                                       ^^^^^^^
58.  These four steps have set up a list of different mixes of
     controls that might be applied to the new source or
     modification. They are arranged in order of how well they
     control the significant pollutants from  the source.
                                         o
                                         o
                                                                                                 O
59.  The applicant performs three Impact Analyses to see what
     effects would  come from installing and operating each
     alternative.
                                                 Analyses

                                             • Economic Impacts
                                             • Energy Impacts
                                             • Environmental Impacts
60.  In the first analysis, Economic Impacts Analysis, the
     applicant rates the control alternatives against each other in
     terms of their costs.
                                                Economic
                                              Impacts Analysis

                                            estimate of approximate costs
                                            of different control alternatives
                                               9-8

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Selected Visuals
61.  Both capital and operating costs are reduced to a common
     time base and compared.
                                             • Capital Costs

                                             • Operating Costs
62.  Total and incremental — last-unit—costs provide bases for
     comparison.
                                                Costs

                                              • Total
                                              • Incremental
63.  In the Economic Impacts Analysis, the applicant considers
     three measures of cost for reasonableness:
      • pollution-specific costs,
      • additional product costs, and
      • ability to secure financing.

64.  In the second impacts analysis, Energy Impacts, the applicant
     estimates the direct energy needs of control alternatives. These
     energy needs are compared with available forms and amounts
     of energy in the region.
                                            Economic impacts
                                           evaluated in terms of:

                                           • Pollution-Specific Costs
                                           • Additional Product Costs
                                           • Ability to Secure Financing
                                                    • What forms
                                                     of energy can
                                                     be used?
                                                                                      • How much
                                                                                        available
                                                                                        in the region?
65. The third and final impacts analysis is for environmental
    impacts. The applicant compares maximum effects—usually
    under worst-case conditions—of alternative controls on
    ambient air concentrations.

66. Other impacts —on land, air, and water—must be listed,
    evaluated, and compared.
                                            Environmental
                                              Impacts

                                            • degree of effect on
                                             environment
67.  By comparing the results of the analyses, pollutant by
     pollutant, for all the control alternatives, the applicant arrives
     at a set of controls for the  whole source or modification. This
     set of controls is what is presented in the application as
     BACT.
                                                                                              o
                                                                                               o
                                              9-9

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Selected Visuals
68.  With the BACT Analysis complete, the applicant has decided
     on a definite set of controls for the new source or
     modification. The next thing to do is project the
     environmental effects of operating with these controls. These
     detailed projections are made in the  next two  major steps of
     the PSD application process—Air Quality Analysis and
     Additional Impacts Analysis.

69.  The Air Quality Analysis concentrates on the impact of the
     new emissions on National Ambient Air Quality Standards
     and on allowable PSD increments.
                                           Air Quality Impacts
                                           Analysis

                                           Additional Impacts
                                           Analysis
                                               • Standards

                                               • Increments
70. In addition, the analysis will check the effect on air quality of
    emissions of any applicable pollutant regulated under the
    Clean Air Act.
                                            General Requirement

                                           • to examine the effect on
                                            air quality of emissions of
                                            say pollutant regulated
                                            by the CAA
71. The Air Quality Analysis uses dispersion modeling techniques
    to predict how increased emissions will affect ambient air
    quality.
                                       • dispersion
                                        models
                                                                                       BQ QO[~~
                                                                                     	sJlalJT^
72. These effects might include possible violations of primary or
    secondary National Ambient Air Quality Standards for one or
    more of the criteria pollutants. The possible violations might
    be for averaging times from annual down to one hour.
                                              Primary
                                             Standards
         Secondary
         Standards
73.  For two pollutants—paniculate matter and sulfur dioxide,
     TSP and SO2 — the Air Quality Analysis also checks increment
     consumption. There are maximum permissible increases —
     increments —in ambient concentrations of TSP and SOZ.
                                             Increments for only:

                                                  • TSP
                                                  • SO2
74.  There are different maximum increments for each Class of
     PSD area, and for each averaging time for which there is an
     ambient standard.
                                             9-10

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75.' The ambient monitoring and dispersion modeling that go
     into Air Quality Analysis are complex technical disciplines.
76.  We noted, when we discussed the analysis process,  that the
     applicant should prepare detailed plans for review agency
     concurrence before spending large sums on monitoring or
     modeling.
77.  Although the Air Quality Analysis process is quite
     complicated, we were able to get some understanding of how
     it works by breaking it into five basic steps and three
     interrelated phases.

78.  The five steps are:
       First. Define  the impact area — the area affected by the new
       emissions for each pollutant analyzed.

79.    Second. Establish inventory of other sources—a
       quantitative listing of all sources adding to the
       concentration of each pollutant analyzed.
                                                 Air Quality Analysis

                                                  • 5 Basic Steps

                                                  • 3 Phases
                                                   Five Steps of
                                                 Air Quality Analysis

                                               Define impact area
                                                   Five Steps of
                                                 Air Quality Analysis

                                               Define Impact area
                                               Eatabllsh Inventory of other sources
80.     Third. Determine existing concentrations—for each
        pollutant in the analysis.
                                                    Five Steps of
                                                 Air Quality Analysis

                                               Define Impact area
                                              1 Establish Inventory of other sources
                                               Determine existing ambient
                                               concentration*
81.     Fourth.  Perform screening analysis.
                                                    Five Steps of
                                                 Air Quality Analysis

                                               Define impact area
                                               Establish inventory of other sources
                                               Determine existing ambient
                                               concentrations
                                               Perform screening analysis
82.     Fifth.  Determine projected air quality levels —using
        dispersion modeling.
                                                   9-11
                                                    Five Steps of
                                                 Air Quality Analysis

                                               Define Impact area
                                               Establish Inventory of other sources
                                               Determine existing ambient
                                               concentrations
                                               Perform screening analysis
                                               Determine protected air quality level

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Script
Selected Visuals
83.  The work of applying the five steps of Air Quality Analysis
     can be divided into three phases, which are interrelated and
     can overlap. As we saw, for instance,  a lot of the work in  .
     analyzing increment consumption and projecting future air
     quality for TSP and SO2 overlaps.

84.  The three phases are:
       One. Analyze increment consumption. How much of the
       available increments will be used by the new source or
       modification?
                                                      Three
                                                    Interrelated
                                                      Phases
                                            Air Quality Analysis
                                           	1
• analyze
conmmptton


85.    Two. Determine existing air quality—present values for all
       pollutants subject to analysis. Both monitoring and
       modeling may be  involved.
                                            Air Quality Analysis
                                           I	1	1
                                                                                  > determine
                                                                                   misting
                                                                                  air quality
86.    Three. Project future air quality. This calls for dispersion
       modeling for at least the criteria pollutants involved in the
       analysis. The reviewing agency may call for projections of
       some other pollutant concentrations.
                                            Air Quality Analysis
                                                       • protect
                                                        future
                                                       •Ir quality
87.  We went on to examine the relations of baseline areas,
     baseline concentrations, increments, and total
     concentrations.
                                            • Baseline Areas
                                            • Baseline Concentrations
                                            • Increments
                                            • Total Concentrations
88. The relation in principle to remember was: baseline plus
    increment equals total concentration. But it's also very
    important to remember that analysis can go ahead with some
    uncertainties about the baseline data.
 89.  The baseline concentration is the foundation over which
     increment consumption for TSP and SO2 is figured. It's an
     adjusted concentration, which means both monitoring and
     modeling can be involved. The adjustments are there  to take
     into account major source emissions that should be counted
     against ambient concentrations as of the baseline date.
                                         Co«»«T.,ion /   Theoretical
                                                      Ambient
                                                     SO2 or TSP
                                                    Concentration
                                      AppradBata Total All Quality



                                          Baseline Concentration

                                           • ambient concentration
                                           • of TSP or SO2
                                           • at the baseline date
                                             9-12

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Selected Visuals
90.  The ideas of baseline date and baseline area are closely tied
     together. The baseline date is a "triggering" date for counting
     baseline concentrations and subsequent increment consump-
     tion. The actual date is the day the first complete PSD
     application is received after August 7,  1977.

91.  It applies to an area within one State.  The area is made up of
     all designated PSD areas—attainment or unclassifiable—
     touched by the  first major source's line of significant annual
     impact.
                                         Baseline Date

                                           • date of first complete PSD
                                            application
                                           • after August 7. 1977
                                             Baseline Area
92. When we examined the procedures for carrying out the Air
    Quality Analysis procedure, we saw that there are several
    areas where the applicant has to go into considerable depth:
       Dispersion modeling calls for a modeling plan, agreed on
       by the reviewing agency.
       Data on existing air quality, in most cases, require on-site
       monitoring, described in a monitoring plan, also agreed on
       by the reviewing agency.
       To go with the air quality data, we need meteorological
       data, which may be available from official records. But they
       may have to be collected on site by the applicant.
                                            • modeling plan
                                            • on-site monitoring
                                            • meteorological data
93. When the data are all pulled together, the applicant does
    dispersion modeling.
94.  If this fourth step, screening analysis, shows no threat to
     National Ambient Air Quality Standards or available
     increments, it may not be necessary to do the  fifth step.
                                             9-13

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                                   Script
Selected Visuals
 95.  Generally the screening analysis will produce:
       Approximate maximum concentrations downwind of the
       source,
       A general idea of the location of maximum concentrations,
       and
       Quick, preliminary results.

 96.  If screening results do not clearly show that there is no
     problem with ambient standards or increments,  the fifth
     step—refined modeling analysis—will be necessary. Refined
     analysis will call for careful planning, computer time,  and
     money.

 97.  Refined  analysis in accordance with the EPA Guideline on Air
     Quality Models will produce:
     • projected concentrations,
     • for specific averaging times,
     • at a set of points — receptors—in the area modeled.

 98.  These can be compared in detail with the corresponding
     ambient standards or available increments.
                                                                                tratlon downwind
                                                                                • general location of maximum
                                                                                concentration
                                                                                • quick, prdlmmary reaulta
                                                                                • at a eet of polnta
 99. Depending on your point of view, you could argue that either
     Air Quality Analysis or BACT Analysis is the most com-
     plicated stage of the application process. We won't try to settle
     that here. However, the fourth and last stage we looked at is
     somewhat different.

100. Additional Impacts Analysis is not spelled out in great detail
     in the Clean Air Act or EPA regulations.
                                                                                    4 Steps

                                                                                • Applicability Determination
                                                                                • Beat Available Control
                                                                                 Technology Analyeie
                                                                                • Alt Quality Analyita
                                                                                • Additional Impact* Analyala
101. What kind of analysis and how much has to be done depend
     greatly on the PSD Class of the area affected and on special
     conditions in the area.

102. Additional Impacts Analysis looks at the effects of the new
     source or modification on three things: soils, vegetation, and
     visibility.
                                                                               Kind of enatvala and how much
                                                                               • PSD claea of die area
                                                                               • •pedal condlUona In the area
                                                                              Additional Impacts Analysis

                                                                                     • soils
                                                                                     • vegetation
                                                                                     • visibility
                                              9-14

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Selected Visuals
103.  The emissions that affect these may come from the new source
      or modification itself, or from associated growth.
104.  The applicant makes the Additional Impacts Analysis for
      three basic purposes:
        One, to assist its own decision making on Best Available
        Control Technology—BACT,
        Two, to inform the general public of potential air-quality-
        related impacts, and
        Three,  to provide the Federal Land Manager with infor-
        mation on potential Class One area impacts.

105.  Making decisions on what and how much to analyze, we saw,
      could be made easier by keeping six basic points in mind.
                                                 Purposes

                                           1. Assist BACT decision making

                                           2. Inform the general public

                                           3. Provide Federal Land Manager
                                            with information
                                               1. Depth
                                               2. Public Information
                                               3. Triggers
                                               4. Concentration-Impact
                                                 Relations
                                               5. Documentation
                                               6. Flexibility
106.  First, the depth of the analysis depends on the nature and
      degree of expected impacts. They, in turn, depend on the
      quantity of emissions, existing air quality, and the sensitivity
      of the area.
                                            1. Depth
                                               • quantity of emissions
                                               • existing air quality
                                               • sensitivity of soils.
                                                vegetation, and visibility
107.  Second, the analysis should inform the public of things they
      need to know to take part in the decision-making process.
                                              2. Public Information
                                                1 Information necessary for
                                                 talcing part in decision'
                                                 making process
108. Third, the analysis may be triggered for both criteria and
     noncriteria pollutants.
                                            3. Triggers
                                                                                   • criteria pollutants

                                                                                   • noncriteria pollutants
109. Fourth, the analysis deals with effects of each pollutant under
     review on air-quality-related values. This involves examining
     concentration-impact relations for direct and secondary
     emissions resulting from the project.

110. Fifth, full documentation of all the Additional Impacts
     Analysis is important for both legal and public information
     reasons.
                                             • effects on alr-qualltyretated
                                              values
                                              5. Documentation

                                                • for legal Information reasons
                                                • for public Information reasons
                                                9-15

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Script
Selected Visuals
111.  Sixth, the approach to the analysis is flexible. It has to fit
      the situation.
                                              6. Flexibility

                                                • has to fit the situation
112.  We saw that the overall task of Additional Impacts Analysis
      can be broken down into three component analyses. They
      are Growth Analysis, Soils and Vegetation Impact Analysis,
      and Visibility Impairments Analysis.
                                           Additional Impacts Analysis

                                              • Growth Analysis

                                              • Soils and Vegetation
                                               Impact Analysis

                                              • Visibility Impairments
                                               Analysts
113.  The Growth Analysis projects associated growth in the area,
      estimates emissions caused by permanent growth, and
      analyzes air quality resulting from the emissions.
                                               Growth Analysis

                                           • projection of associated growth

                                           • estimates of emissions

                                           • analysis of air quality
114.  The Soils and Vegetation Impact Analysis uses the projected
      air quality values to predict how soils and vegetation in the
      area will be affected.
                                              Soils and Vegetation
                                                  Analysis

                                             • estimates effects on soils
                                              and plants
115.  Since different areas can have very different problems, this
      will call for a survey of soil and vegetation types, projection
      of ambient concentrations, and correlation of concentrations
      with effects.
                                           • survey of soil and vegetation
                                            types

                                           • projection of future ambient
                                            concentrations

                                           • correlation of concentrations
                                            with effects
116.  The Visibility Impairments Analysis is especially important
      where a Class One area may be affected.
117.  It uses special kinds of dispersion modeling to estimate the
      effects of new emissions  on the impacted area. It compares
      these effects with existing visibility and the special value of
      visibility in the  area.

118.  What we just finished describing—Applicability Determina-
      tion, BACT Analysis, Air Quality Analysis, and Additional
      Impacts Analysis—is what the applicant does. Why this focus
      on the applicant?
                                              • uses dispersion modeling to
                                               estimate effects of raw
                                               • existing visibility
                                               • special value of visibility
                                                     • Applicability
                                                      Determination
                                                     • BACT Analysis
                                                     • Air Quality
                                                      Analysis
                                                     • Additional Impacts
                                                      Analysis
                                                9-16

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Script
Selected Visuals
119. The answer to why the focus is on the applicant is found in
     the Clean Air Act and supporting EPA regulations.
Clean Air Act
' ^"z^-^^.1™ trj~
	 _
... — . 	
.:r_r.":::rr..':m:r-
— ^-i.j— *. *•._*.— .,
EPA Regulations
-~JT-T r_rr..~"
_ — .. 	
	 .. 	
. ."ir.nr^ii crjTj^Tur
_-— ., ^ -
120. Each of the steps we've spelled out is part of the demonstra-
     tions the applicant is required to make. The law and regula-
     tions repeatedly say things like: "The owner or operator of
     such facility demonstrates .  . . that emissions from construc-
     tion or operation of such facility will not cause, or contribute
     to air pollution in excess of increments, national ambient
     standards,  or other emission limitations.

121. The legal burden is put on  the applicant —the organization
     wanting to build or modify. It has to justify its possible using
     up of part of a public resource—the available increment of
     air quality for each pollutant  that meets the significance test.
                                            "The owner or
                                            operator of such
                                            facility
                                            dempnstrates..."
122. Building and operating the new source or modification is
     something we presume the applicant does, first of all, for its
     own benefit. For this reason, the applicant has an incentive
     to meet the requirements of PSD permit application.
 123.  But the new operation can benefit others, too. It can provide
      jobs, goods, services, and a market that were not previously
      available.
 124.  So getting the new operation in place and running may also
      be a subject of legitimate interest to government at one or
      more levels. This means that government agencies may help
      the applicant with parts of the application. Sometimes the
      agency that can  help is the same one that will review the
      application; often it is not.
                                            9-17

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Script
Selected Visuals
125. None of this, however, takes away the basic responsibility of
     the applicant. That is to prepare and defend a technically
     sound,  complete proposal. The application has to show how
     the new source or modification will operate to comply with
     the requirements of the PSD program.
126.  We have seen the steps that the applicant performs to put
     together a sound, complete application. In some ways., it is
     like a legal brief in a law suit. It assembles the facts and
     arguments which the applicant claims will show why it should
     have a permit to build and run an operation as described.
127. If we don't push the comparison too hard, we can say the
     applicant is like the plaintiff in a civil law suit. It has the
     burden of proof'. The application has to convince an
     unbiased observer that the proposed operation will comply
     with the law and regulations. It also has the burden of going
     forward with the action —to produce the facts and arguments
     to support its case, without waiting to be asked specific
     questions.

128. This is a good time to remind ourselves this is not a lawsuit.
     We're talking about the administrative processing of a permit
     application. With that comment in mind, we  can roughly
     compare the reviewing agency's role with that of a judge.
                                          » DUTOCD of proof

                                          1 burden of going forward
129. When the agency has a complete application in hand, it has
     to become that "unbiased observer" we mentioned a moment
     ago. The agency has to examine the facts and arguments
     advanced by the applicant. If, after following procedures set
     down by law, it decides the applicant should have its permit,
     then it has to write a decision. The decision reviews why the
     agency is convinced by the application, and sets out the terms
     of the permit.
                                           9-18

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Script
130.  If the agency decides the applicant should not have a permit,
      it has to write a justification of that decision.  It may be a
      denial, or it may be a requirement for more evidence and
      argument.
Selected Visuals
131.  In the next lesson, we will look briefly at how the reviewing
      agency organizes and carries out its responsibilities in the PSD
      application-review process.

132.  (Credit slide)
133.  (Northrop slide)
                                                 Coming up next. ..
                                                    the agency's role
                                                  Application Summary anO<
                                                 Introduction to Agency Review
                                                                                              mi: JohnMiroMv
                                                                                           	190: Momci Lnli*
                                                                                            Graphic*; IWt*« Hub*t
                                                                                                K«rw W*rd
                                                                                        Pholof»plr*/Audio: D».ld Churchill
                                                                                            .N*r»tlon: Rich Palm*!
                                                                                         Northrop Service*. Inc.
                                                                                             under
                                                                                       EPA Contract No. 68-02-3573
134.  (Northrop slide)
                                             Btttd In part on the:

                                                 1980 PSD Workshops
                                                    prepared for the
                                              U.S. Environmental Protection
                                                     Agency
                                             Office of Air Quality Planning and
                                                     Standards
                                                       bv
                                               niW. lac.. EnvtromiWfiiBl Envliwvtlng D4*t»iMi
                                                    Nonhrop Svrvtct*. Inc.
                                                   EPA CMHTOCI No. 44-02-3174
135.  (NET slide)
                                             Northrop
                                             Environmental
                                             Training
                                                   9-19

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                                             SI:453
                                           Lesson 10
                      Agency Review of the Application:  I
Slide

 1.  (Focus)
Script
 2.  This is Lesson Ten, "Agency Review of the Application, Part
    One."
Selected Visuals
                                            FOCUS
                                         l_ Agency Review _^
                                             of the
                                            Application :
                                               I
 3.  Up to now, we've concentrated on the applicant's part in the
    process that leads to a PSD permit for a proposed new source
    or modification. In the last lesson, we reviewed the applicant's
    steps in developing a sound, complete application.
 4.  The applicant carries the burden of convincing the reviewing
    agency that the new source or modification should get a PSD
    permit.  It's the applicant who is in the best position to know
    the technical  and financial details of the source and possible
    emission controls for it. The law and regulations say the
    applicant has to demonstrate that the new operation will
    comply with PSD requirements.

 5.  Specifically and concretely, this means the applicant must:
      perform all the required analyses,
      document the results clearly and concisely in the permit
        application,
      apply best  available control technology where it's required,
        and
      comply with  all permit conditions.
                                         • perform analyses

                                         • document results

                                         • apply BACT

                                         • comply with permit
                                          conditions
 6.  However, the reviewing agency doesn't get to take it easy just
    because the applicant has all this responsibility. The agency
    isn't supposed to do the applicant's job, but it is supposed to
    do its own job.
                                            10-1

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Script
Selected Visuals
 7.  The reviewing agency is responsible for evaluating the PSD
     application systematically, thoroughly, and expertly.
                                                 Reviewing Agency
                                                   • responsible for
                                                    evaluating
                                                    PSD application
 8.  It's also responsible for using the application and review
     process to manage air quality in the region, helping to
     balance economic growth and use of the air resource.
 9. The Clean Air Act and EPA regulations do not spell out
    detailed steps that each agency doing PSD reviews has to go
    through.
10.  There are several reasons for this. The most important reason
     is that the PSD program is supposed to be carried out by the
     States as pan of their implementation plans under the Act.
11. Over the past few years,  this has worked out so that we have
    four PSD review situations:
       States with their own PSD permit authority,
       States with full delegated authority from EPA,
       States with partial delegated authority from EPA, and
       States where EPA does the review and issues the permits.
                                      States may have... .
                                         their own penult authority under • SIP

                                         lull delegated authority from EPA

                                         partial delegated authority from EPA

                                         no authority—EPA doea the review
                                         and Imaucs the permit
12. In partial delegation, State or local agencies do most of the
    review and send the package to EPA to issue the permit and
    to enforce it.
                                              10-2

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Script
Selected Visuals
13. The rules that a State agency follows in permit review have to
    be compatible with the Clean Air Act.
                                        State Rules
14. They have to get the results the Act calls for, and make sure
    certain essential legal bases —like public participation —are
    touched.
15. But the rules grow out of State law and practices at least as
    much as out of the Clean Air Act. This means they can be
    different in some ways from State to State.
16.  We did say that the reviewing agency is responsible for a
     systematic review. The process shouldn't have to be reinvented
     every time a new application comes in. And applicants are
     entitled to know what they have to do and what to expect
     from the agency.

17.  If you combine logical requirements of what needs to be done
     with basic legal essentials, you get a suggested five-step process
     for  the reviewing agency. These five steps  are:
                                                The review process
                                                should be
                                                systematic.
                                      — Steps in Permit Process —.
18.    One,  preapplication meeting,
                                       I—  Steps in Permit Process —,

                                          • Preapplication Meeting
                                             10-3

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19.    Two, completeness review,
                                          I— Steps in Permit Process —,

                                             • Preappllcation Meeting
                                             • Completeness Review
20.    Three, preliminary determination,
                                          j— Steps in Permit Process —|

                                             • Preappllcadon Meeting
                                             • Completeness Review
                                             • Preliminary Determination
21.    Four, public review and comment,  and
                                          _ Steps in Permit Process —|

                                             • Preappllcation Meeting
                                             • Completeness Review
                                             • Preliminary Determination
                                             • Public Review and Comment
22.    Five, final determination—including methods for
       compliance checks.
                                          _ Steps in Permit Process —i
                                               Preapplication Meeting
                                               Completeness Review
                                               Preliminary Determination
                                               Public Review and Comment
                                               Final Determination
23.  The preapplication meeting can shape the whole application
     and review process. It should take place early in the
     applicant's planning to build or modify. This meeting may be
     more formal or less so, depending on agency standing rules
     and policy.  However, it should not be just a mechanical
     acceptance or rejection of paperwork reviewed before the
     meeting.
                                                   Preappllcation Meeting
                                                    • early
                                                    • formal or not
                                                    ' not mechanical
                                                     acceptance or
                                                     rejection
24.  The purpose of this meeting is to educate the applicant and
     the agency, and to make some preliminary assessments.
                                                   • to educate applicant
                                                    and agency
                                                   • to make preliminary
                                                    assessments
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25.  The educating at the preapplication meeting should run in
     both  directions. Of course, the applicant has had an
     opportunity to read agency regulations and application
     instructions.
26.  Agency staff has seen a written outline of the project proposal
     for new construction or modification.
27.  But the meeting is about whether and how these fit each
     other.
28.  Based on the project proposal and information exchanged at
     the meeting, the agency and the applicant should come to an
     agreement on a preliminary assessment.
29.  This assessment is used to help decide whether PSD review is
     required, and if so, which specific review requirements must
     be met.
                                       • whether PSD review Is required

                                       • which review requirements
                                        must be met
 30.  The preliminary assessment resulting from the preapplication
     meeting provides essential information for both parties.  It tells
     the applicant, in outline, what engineering analyses have to
     be done, and in what depth.  It spells  out for agency staff
     what elements will be needed for a complete application.
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31.  A lot happens between the preapplication meeting and the
     agency's second review step, the completeness determination.
                                        0 Preapplication Meeting

                                      ^ D Completeness Determination
32.  This is the time when the applicant does its detailed
     Determination of Applicability,  BACT Analysis, Air Quality
     Analysis,  and Additional Impacts Analysis. Of course, many
     questions and answers may be exchanged between the agency
     and the applicant,  and perhaps with other government
     agencies.
33.  But when the agency receives what claims to be a complete
     PSD permit application, it has to concentrate special effort
     and time on reviewing that package. It also has to begin work
     on involving other participants in later stages of review—for
     instance, at this point the Federal Land Manager must be
     notified if a Federal Class I area will be affected.
34. Completeness is a very important word in PSD permit
    processing. A complete PSD application can start several
    clocks running. The maximum time between the declaration
    of a complete application and the issuing or denying of a per-
    mit is set by the Clean Air Act as one year.
                                               PSD
                                             Application


35.  Remember that the baseline date for each pollutant in an
     area is triggered by receipt of the first complete PSD
     application for that pollutant. An earlier complete application
     may have priority for using available increment over a later
     one. In some agencies, the permit must be issued or denied
     within a rather short fixed time after receiving a complete
     application.
                                       PSD
                                    Application
                                             helps
                                             define
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36.  The EPA regulations say a complete application "contains all
     of the information necessary for processing the application."
                                           "...all o( the information
                                            necessary for processing
                                            the application"
37.  In talking about State agency review, the regulations say this
     doesn't mean the agency can't ask for or accept additional
     information.
38.  But remember we said that a PSD permit application isn't a
     fill-in-the-blanks sort of thing. The reviewing agency can't just
     go through a form—or a bundle of forms, like a complicated
     tax return —and see if all the blocks are filled in. To check an
     application for completeness, the agency has to have some of
     their technical staff go through it. These engineers or
     technicians need to have the kind of knowledge and
     experience that makes them able to  judge whether an
     application contains all the information necessary to process
     it.

39.  This gives the agency a fairly difficult job to begin with. The
     idea at this stage is not to launch a  detailed evaluation of the
     project described by the application. What is needed is  a
     quick, reliable determination that the agency has enough
     information in hand to proceed to its detailed analysis.
40.  Much of the effort in the completeness review focuses on
     evaluating the applicant's determination of applicability.
     Important yes-no questions of applicability should be dealt
     with in the prerapplication meeting stage.
41.  But there are still questions of what review and how much
     must be done for specific units within the proposed
     construction or modification.
                                           • What review?

                                           • How much review?
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42.  There are five areas of concentration in the agency's
     evaluation of applicability. They are:
       First, identification of the source and proposed
         construction,
       Second,  examination of emissions estimates,
                                          1. Identification of the Source
                                          2. Examination of Emissions
                                            Estimates
43.    Third, examination of location,
       Fourth, checking of the applicability tests, and
       Fifth, examination of exemptions.
                                          1. Identification of the Source
                                          2. Examination of Emissions
                                            Estimate*
                                          3. Examination of Location
                                          4. Checking of the Applicability
                                            Tests
                                          5* Examination of Exemption*
44.  In going over the application for completeness, the agency's
     reviewer will be helped considerably by having experience with
     other applications. A checklist like the one suggested in
     Appendix Two of the PSD Workshop Manual is also a great
     help.
45.  The reviewer needs to know what common omissions and
     errors to check for.
46.  These happen most often in the areas of source definition
     and making emissions estimates. A careful check of which
     emissions units are counted and how their emissions are
     estimated and netted is in order.
                                           • Which emissions units are
                                             counted?
                                           • How are their emissions
                                             estimated and netted?
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47.  Because completeness determination has such legal
     significance, many agencies will issue a formal notice to the
     applicant and the public when they decide they have a
     complete application. From this point, agency review goes on
     and intensifies, leading to the next step that is seen by the
     applicant and public—preliminary determination.

48.  Before the agency can issue a preliminary determination, it
     has to review each of the applicant's engineering analyses:
       —Applicability,
       — Best Available Control Technology,
       — Air Quality, and
       — Additional Impacts.

49.  All of these reviews are internal.  They take place, within the
     reviewing agency.
                                        — Review of Analyses —•"

                                             • Applicability
                                             • BACT
                                             • Air Quality
                                             • Additional Impacts
50.  As we have so often emphasized before, the application is a
     detailed engineering analysis performed by the applicant. The
     agency does not do an analysis for the applicant, and
     shouldn't just re-do the various analyses in the review.
51.  The completeness determination concentrated on the informa-
     tion and conclusions in the applicant's applicability
     determination. This is because of the important questions of
     which units to include and what level of review to do on them.
                                               A
                                               Mlicab
     i APillcabllity
    ^Determination.
52.  But completeness review has to go on to check for data in
     each of the major analysis steps.
                                              Data Check
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53. There is also an overlap from the completeness determination
    into the general review. The agency has to go over the
    Applicability Determination at a more stringent level of
    detailed technical review before going on to review of the
    BACT Analysis.
54. In reviewing the Best Available Control Technology Analysis,
    the agency has to keep in mind that the applicant is
    proposing a set of emissions limitations. The agency reviewer
    may believe that more stringent controls can be achieved
    within the BACT criteria. Any such decision must be based on
    solid factual information, for example from the EPA Clear-
    inghouse or technical reports.

55. Disagreements on the specific continuous emissions reduction
    representing BACT may call for requests for additional
    information, informal meetings, and negotiation.
                                     P_ Review of BACT Analysis -^

                                       * reviewer miut keep In mind that
                                        applicant l« proposing emission
                                        limitations

                                       • more stringent controls may be
                                        achievable
56.  Of course, reviewing the BACT Analysis requires engineering
     knowledge and experience. There are four questions that
     guide the application of that knowledge and experience:
       — Is the analysis complete? This applies to both pollutant
         coverage and emissions units.
                                       O I* the analysis complete?
57.    —Is the analysis thorough? This deals with identifying
         alternatives and looking at  them deeply enough.
a
a
Is the analysis complete?
Is the analysis thorough?

58.    —Are the cost estimates used reasonable?
D
D
D
Is the analysis complete?
Is the analysis thorough?
Are the cost estimates
reasonable?

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59.     —Has the applicant made a good faith effort in proposing
          BACT?
                                                                         Q  Is the analysis complete?
                                                                         G  Is the analysis thorough?
                                                                         O  Are the cost estimates
                                                                            reasonable?
                                                                         Q  Has applicant made good-
                                                                            faith effort?
60.  To get a "yes" answer to these questions, the reviewer may
     have to get more information from the applicant. When,
     finally, all the answers are "yes," the agency can write up
     BACT as Federally enforceable permit conditions specifying
     a system of continuous emission reduction.
61.  In moving on to reviewing the Air Quality Analysis, the
     agency may have to call on reviewers with different skills and
     experience—in dispersion modeling. These reviewers are
     looking at six critical items in the application:
                                                                                Review of
                                                                          _ Air Quality Analysis —

                                                                           agency may have to call on
                                                                           reviewers who have knowledge
                                                                           of dispersion modeling
62.     — Which pollutants require air quality analysis,
                                                                                 1 which poUntants require analysis
63.
—A clear description of the source or modification,
                                                                                 1 which pollutants raquir* analysis
                                                                                  clear description of source or modification
 64.     —Dispersion model selection and use,
                                                                                 1 which pollutants r*qutra analysis
                                                                                  clear description of source or modification
                                                                                  disperston model selection and use
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65.     — Existing air quality determination,
                                                                              > which poUmanta raqnin analyata
                                                                               claar daaertptlon of aourca or modification
                                                                               dunanloa modal Mlactlon and UM
                                                                               pining «lr quality d«t«rmln«llon
66.    —Class One area impacts, if any, and
                                                                               •Uchpolln

                                                                               matin! air quality
                                                                               Oaaa I area hnpacta
67.    —Compliance with National Ambient Air Quality
         Standards and allowable increments.
                                                                               clear description of aourca or modification
                                                                               •Hating air quality datamUnanon
                                                                               Clara I area Impacta
                                                                               compUaoca with NAAQ3 and allowable
68.  For the Air Quality Analysis review, the agency is likely to be
     working with large volumes of data, on paper and in
     computer files.
69.  If the application is for a source of some complexity and size,
     there are likely to be detailed Modeling and Monitoring
     Plans. The details of these plans should have been worked out
     in preapplication meetings. In the review stage,  the agency is
     checking to see that the plans have been carried out, and have
     produced usable information.

70.  As far as possible, the agency keeps its review of Air Quality
     Analysis limited to checking of data and procedures. Doing
     over-the applicant's calculations could be expensive and time-
     consuming, especially in the area of dispersion modeling.
                                                Checking of
                                             Data and Procedures
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71.  Since the Additional Impacts Analysis has such flexible basic
     requirements, the agency also has to be flexible in its
     approach to reviewing it. The professional backgrounds of the
     reviewers and the amount of time and effort required will vary
     with the pollutants to be dealt with and the areas that are
     affected.
                                                 Review of
                                          • Additional Impacts Analysis •

                                          • agency should be flexible in
                                            its approach to the review
72.  Also, the Additional Impacts Analysis doesn't compare
     projected impacts with fixed levels of acceptability, the way
     NAAQS or increment impact  analysis does.  With Additional
     Impacts, the idea is to present clearly the projected effects of
     the source and associated activity, so informed value choices
     can be made about them. So the reviewer has to ask not only,
     "Is the analysis technically correct?" but, "Can the public
     understand the results?"
                                          •• Big question...
                                            "Can the public understand
                                             the results?"
73.  For these reasons, the reviewer has four special questions to
     ask in going over the steps of the applicant's Additional
     Impacts Analysis:
       One, is the description of soils, vegetation,  and visibility
         in the impact  area both clear and technically accurate?

74.    Two, are the projected impacts correctly estimated, and
         does documentation back up the projections?
                                         1. Is the description of the
                                            impact area clear and
                                            accurate ?
                                          2. Are the projected impacts
                                            correctly estimated and
                                            doeii documentation back
                                            them up?
75.    Three, are the data presented logically, so the reviewer and
          the public can follow the reasoning? This would include
          starting with a growth analysis, then presenting an
          emissions projection, and continuing with a soils and
          vegetation analysis, and then a visibility analysis.
                                         3. Is the data presented logically?
                                           • Growth Analysis
                                           • Emissions Projection
                                           • Soils and Vegetation Analysis
                                           • Visibility Analysis
76.    Four,  does the analysis make clear to everyone —applicant,
          reviewer, and public —the potential impacts of the
          proposed construction?
                                          4. Does the analysis make
                                            clear the potential impacts
                                            of the proposed
                                            construction?
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77.  At this point, it isn't hard to see that the agency is getting its
     internal review process set to move to the next big step. That
     is the third step in the overall review process, preliminary
     determination. We'll  begin with that step in Lesson 11.
                                             0 Preapplication Meeting

                                             3 Completeness Determination

                                             >D Preliminary Determination
78.  (Credit slide)
                                                   Agency Review
                                                   f **»" Application: I •
                                              •   ot the AppU

                                              I  Titfcrtcil CoMtMti
                                              I iMtmctloMl D«*f>:

                                              |  -^-Taag
79.  (Northrop slide)
                                           — piodncidby:'


                                           I    North

                                           I  EPA Con
                                                                                      Northrop Services. Inc.
                                                                                           under
                                                                                    EPA Contract No. 6*02-3573
80.  (Northrop slide)
                                                                                       1980 PSD Worlubop*
                                                                                    U.S. EnvlronnicntaJ Protection
                                                                                          Agency
                                                                                    Office of Alt Quality Planning and
                                                                                         Standard*
81.  (NET slide)
                                            Northrop
                                            Environmental
                                            Training
                                                  10-14

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                                               SI:453
                                            Lesson 11
                      Agency Review  of  the Application:  II
Slide

 1.   (Focus)
Script
 2. This is Lesson Eleven, "Agency Review of the Application,
    Part Two."
Selected Visuals
                                              FOCUS
                                           _ Agency Review _^
                                                of the
                                              Application;
                                                 II
     In the previous lesson, we began to talk about the reviewing
     agency's role in the PSD permit process. We emphasized the
     applicant's responsibility to produce as an application a
     thorough engineering analysis of the proposed new source or
     modification.
                                          • applicant to propose
                                           a thorough engineering
                                           analysis of proposed
                                           new source or
                                           modification
 4.  The reviewing agency, we said, is responsible for evaluating
     the application through a process of thorough, expert, and
     systematic review.
                                           reviewing agency to
                                           evaluate the applicant
                                           through review that is:
                                              • thorough
                                              • expert
                                              • systematic
  5.  We then examined the first two steps in this review process:
     the preapplication meeting and the completeness review.
                                         \. Preapplication Meeting

                                         2. Completeness Review
     After the agency receives an application and determines that
     it's complete, it carries out the detailed internal review that
     leads to the preliminary determination. In this lesson, we
     will examine the last three steps of the agency review:
      Three, preliminary determination,
      Four, public review and comment, and
      Five, final determination.
     Then we will briefly review the PSD process as a whole.
                                        3. Preliminary Determination

                                        4. Public Review and
                                          Comment

                                        5. Final Determination
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 7.  The preliminary determination is the reviewing agency's state-
     ment of its initial judgement of what to do about the proposed
     new source or modification.
                                             initial judgement
 8.  This judgement is based on the expert review of the applica-
     tion by agency staff.
 9.  The determination states the agency's conclusions about
     whether the applicant should get a PSD permit, or not, but it
     does much more.
                                           • states agency's
                                            conclusions about
                                            whether or not
                                            applicant should get
                                            PSD permit
10.  The preliminary determination is a legal notice to those who
     will be involved in the next major step —public review and
     comment.
11.  These participants include the applicant, other government
     agencies, and the general public.
                                            • legal notice

                                            • to those involved In
                                             public review and
                                             comment
12.  The notice of determination has to do more than state the
     agency's preliminary conclusions. It has to summarize the
     data and the reasoning leading to those conclusions.
                                       .Notice of determination must... _,

                                           • state preliminary
                                            conclusions
                                           • summarize data and
                                            reasoning
                                              11-2

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13.  Because the preliminary determination is, among other things,
     a legal notice, its exact form will be different from one
     jurisdiction to another. However, there are things that need to
     be  covered in any notice of preliminary determination. A
     simple example format is given in Appendix One of the PSD
     Workshop Manual.

14.  The suggested format organizes the necessary information into
     five sections. Some are very short, others longer. The
     sections are:
     One,  Applicant identification,
     Two, Location of proposed source or modification,
     Three, Project description,
     Four, Source impact analysis, and
     Five,  Conclusions.
                                         Example of format for
                                         preliminary determination can
                                         be found in:
                                             PSD Workshop Manual
                                                Appendix 1
                                            1. Applicant Identification
                                            2. Location of Proposed
                                              Source or Modification
                                            3. Project Description
                                            4. Source Impact Analysis
                                            5. Conclusions
15.  The first section,  applicant identification, is the shortest. It
     just states who—corporation, partnership, persons,  or
     whatever —has applied for the PSD permit. It also gives the
     mailing address for reaching the applicant.
                                           1. Applicant Identification

                                             • who has applied for the
                                              permit

                                             • mailing address
16.  The second section is only a little longer. There is usually
     more than one way to describe the  location of the proposed
     source or modification. These have to do with where it is
     legally, where it is on the map, how you would get to it, and
     what kind of mental picture you  can form of it. You'll usually
     find at least three methods of describing location:
      • Political subdivision—county, parish, borough,  or the likes,
      • Map  coordinates, and
      • Street or road location.
                                           2. Location of Proposed
                                             Source or Modification

                                             • political subdivision
                                             • map coordinates
                                             • street or road location
17.  The third section is project description. This is not very
     detailed. It  aims at an overview of the proposed project, with
     necessary technical data coming later. The emphasis should be
     on the amount—or change in amount—of fuel burned or
     product processed.
                                           3. Project Description

                                             • overview
                                             • emphasis on amount - or
                                              change in amount • of
                                              fuel burned or product
                                              processed
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18. The fourth section, source impact analysis, is likely to be
    much longer than the others. It is a summary of the results of
    the application's analysis steps and the agency's review.
    Whether you're preparing one of these or trying to read it, it's
    important to remember that it's a summary.  The detailed
    technical information that backs up the  analysis is a matter of
    public record, available in the application and agency records.
                                         4. Source Impact Analysis

                                           • summary of analysis
                                             step* and review process
19.  Exactly what goes into the source impact analysis depends on
     the source and the review it received. The analysis should
     begin with a short introduction describing:
      • What items the application was reviewed for,
      • Why these items were reviewed,
      • What portions of the regulations apply to the review,
      • Which pollutants make the source or modification major,
        and
      • What air quality standards and increments apply to the
        air quality review.

20.  The source impact analysis goes on to summarize each of the
     analyses in the application, together with the agency's conclu-
     sions from its review of the analyses.
                                            what Items reviewed for
                                            why
                                            what regulations apply
                                            which pollutants
                                            what AQ standard*/
                                            increments apply
                                          • summarizes each analysis
21.  At each stage, a reader should be able to tell:
      • What was analyzed,.
      • What method was applied,
      • What data, alternatives, and so on, were used, and
      • What the result was, both from the applicant's analyses
        and the agency review.
                                         • what was analyzed
                                         • what method wa* applied
                                         • what data. etc.. were used
                                         • what the result was
22.  This means the preliminary determination summary will boil
     down Applicability, BACT Analysis, Air Quality Analysis,
     and Additional Impacts Analysis to a few pages. The guiding
     principle is to inform the persons who will  take part in the
     public review and comment process. They need to know what
     the issues are, what arguments are raised about the issues,
     and what facts and expert judgements back up the arguments.
                                          inform persona involved in
                                          public review and comment
                                          about:
                                               • issues
                                               * arguments
                                               • facts
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23.  The fifth and final section of the preliminary determination
     summary is conclusions. The first thing it should deal with is
     whether or not the agency recommends approval of the per-
     mit application. Then the agency says why it recommends
     approval or disapproval, citing the specific parts of the
     application and review record involved.
                                           5. Conclusions

                                             • does the agency
                                              recommend approval?

                                             • why>or why not
24.  If the agency recommends approval, the conclusions go on to
     spell out proposed permit conditions.
                                                                                • permit conditions
25.  These are legally binding means to make sure the new source
     or modification does the things that keep it within the
     requirements of the PSD regulations.
26.  Permit conditions will include:
      •  Federally enforceable emission limitations reflecting
         BACT,
                                        • emission limitations reflecting
                                         BACT
 27.   •  Design, work practice, or other standards where quan-
         titative emission limits can't be set,
                                        • emission limitations reflecting
                                         BACT
                                        • design, urork practice, or other
                                         standards
 28.   •  A method to check emission levels after startup, and
                                                                            • emission limitations reflecting
                                                                             BACT
                                                                            • design, work practice, or other
                                                                             standards
                                                                            • method to check emission levels
                                                                             after startup
                                               11-5

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29.   • Methods for checking compliance with limitations during
        the term of the permit.
                                         • emission limitations reflecting
                                          BACT
                                         • design, work practice, or other
                                          standards
                                         • method to check emission levels
                                          after startup
                                         • methods for checking compliance
                                          with limitations
30. From here, things move on to the fourth overall step, public
    review and comment.
                                            SPnappllci
                                                                               5 PnUmlMnr Determination
                                                                              *C Public Review and Comment
31.  EPA has a special set of regulations dealing with this.
32.  The States that process PSD permits have their own individual
     laws and regulations.
                                                                              EPA Regulations
                                                                              State Regulations
 33.  Lawyers usually sum up the requirements of such rules under
     the words notice and hearing. These work out to informa-
     tion, opportunity to participate, and knowledge of the
     outcome.
                                         •" "Notice and Hearing"—

                                          • information

                                          • opportunity to participate

                                          • knowledge of the outcome
 34.  Some of the routine notice is made when the application is
     received and when the applicability determination is made.
     When the preliminary determination is issued, very extensive
     notice is required.
 35.  The agency has to notify the public — by advertisement in a
     newspaper of general circulation where the project is —about
     four items:
        — the application,
        — the agency's preliminary determination,
        — the expected degree of increment consumption, and
        — the opportunity to comment at a public hearing or in
          writing.
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36. For most agencies, there will be more notice than this,
    including publication in an official register and mailings to
    associations and interest groups. The notice is generally brief,
    summarizing the results of the preliminary determination,
    increment consumption, and the opportunity to comment, in
    writing or in person.
37. At the same time, the agency notifies any other parties who
    might take part in the permit hearing. Of course, this includes
    the applicant. It also includes EPA, government officials
    responsible for the place where the project is, other State and
    local air pollution control agencies, city and county chief
    executives, and other concerned officials.
38.  The brief notice has to be backed up by making more infor-
     mation available. At a minimum, this means there is one
     place in the region where the construction will take place ,
     where people can go to examine the public comment package.
39.  This has to include at least:
      • The applicant's complete application and any other infor-
        mation submitted,
      • The preliminary determination, and
      • Copies or summaries of any other information used by the
        agency to make its preliminary determination.

40.  That was notice. Hearing means that everyone who received
     notice is entitled to comment on the agency's proposed action.
     They can do this by submitting written testimony, or they can
     appear before  the hearing examiner,  board or panel and give
     oral testimony.
                                         • complete application

                                         • preliminary determination

                                         • copies/summaries of other
                                          Information used in
                                          preliminary determination
41.  Comments can address:
      • air quality impacts,
      • alternatives to the source,
      • control technology, or
      • anything else that relates to the PSD effects of the project.
                                         • air quality impacts

                                         • alternatives to the source

                                         • control technology

                                         • other
                                             11-7

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42. There may be several public hearings for a major project with
    extensive impacts. The comment record is always held open
    for a period of time that was spelled out in the notice.
43. When the agency has received all the comments, it has to
    reach a final decision by a time that was also given in the
    notice.



1982 !
SEPTEMBER
15 1
2Sl W*dn»»
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48.  The permit is a legally binding document that spells out all of
     the basic obligations the applicant has under PSD. It also con-
     tains all of the conditions needed to make sure the source is
     built and operated to meet the regulatory requirements.
                                           —— Permit ———

                                           • legally binding
                                            document
                                           • spell* out all basic
                                            obligations
                                           • contains all conditions
49.  With approved permit in hand, the applicant is entitled to
     commence construction on the new source or modification.
     When the construction is complete,  the source can legally
     operate as long as it meets the conditions of the permit.
50.  We've come a long way to get that permit into the applicant's
     hand. We paused after talking about how the applicant builds
     the application to review the major technical points of the
     application process. Now, let's back off a little and review very
     broadly where we've been.
51.  We started out by talking about what Prevention of Signifi-
     cant Deterioration is and where it came from.
                                                                               prevention of
                                                                               Significant
                                                                               Deterioration
52.  From 1970 to 1977, there was continuing controversy and
     litigation over the meaning of the words, "protect and
     enhance the quality of the Nation's air resources," in the
     Clean Air Act.
                                          "protect and enhance
                                          the quality of the
                                          Nation's air resources"
53.  EPA promulgated PSD regulations in 1974 in response to a
     court order in the Sierra Club versus Ruckelshaus lawsuit.
                                            •EPA Regulations-
                                                 1974
                                                                             Sierra Club v. Ruckelshaus
 54.  Those regulations stirred up argument, but they also laid the
     groundwork for the thinking that went into the PSD provisions
     of the Clean Air Act  Amendments of 1977.
                                                1977

                                             Clean Air Act
                                             Amendments
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55. The basic idea behind those first regulations and the Amend-
    ments is fairly simple. We have National Ambient Air Quality
    Standards to protect the public health and welfare from the
    effects of air pollution.
                                              National
                                              Air
                                              Quality
                                              Standards
56. But there are many areas where air quality is better than
    some of the ambient standards.
57. Such areas shouldn't be allowed freely to deteriorate toward
    just meeting the standards without informed decisions being
    made about what's being traded for the loss of superior air
    quality.
58.  That's where the word significant came in. It's impractical
     and undesirable to try to "freeze" ambient air quality.
                                                                              "significant"
59.  In general, we want it to get better, or not get enough worse
     to make a difference to us.
                                          • better
                                            or
                                          • not enough worse
                                           to make a difference
                                           to us
60.  Much of the complication in the law and regulation has to do
     with deciding what makes that difference.
61.  Congress adopted the idea of allowable increments for two
     pollutants, TSP and SO2.
                                      ISP
                                                  soz
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62.  An increment is an increase in the concentration of a
     pollutant.
                                            ••   Increment —

                                             • Increase in the
                                              concentration of a
                                              pollutant
63.  The law sets maximum allowable increases of TSP and SO2
     concentrations for different averaging times and different
     classes—One, Two, or Three—of PSD areas.
                                            ^—^- Increment —•—
                                             • Increase In the
                                              concentration of a
                                              pollutant
                                             • over different averaging

                                             • for different classes of
64.  The Clean Air Act requires EPA to adopt regulations to pre-
     vent significant deterioration for the other criteria
     pollutants—carbon monoxide, ozone, nitrogen dioxide,  and
     lead. EPA's system doesn't have to use increments for these
     pollutants, but it can.
65.  Closely tied to the increment idea is the designation of PSD
     areas and area classifications.
                                             • PSD areas
                                             • area classifications
66.  Any area that is attainment—or that cannot be classified as
     attainment or nonattainment —for any National Ambient Air
     Quality Standard is a PSD area for that pollutant.
                                         Attainment   Unclassifiable
                                                                                   PSD area
 67.  PSD areas come in three classes, depending on how strictly
     they are protected. Class One areas have small allowable
     increments and other special protections,  including restrictions
     on redesignation and special permit review considerations.
                                            CUn I -tm.il .llow.&U
                                                 Increment*—and odm
                                                 protection*
 68.  Class Three areas have the largest available increments.
                                                                               Claw I -small allowable
                                                                                    Increment*—and other
                                                                                    protection*
                                                                               Clan III -largctt Increment*
                                              11-11

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69.  Class Two areas fall in between.
                                                                             OBM! -
                                                                                  tncrnanitt-md other


                                                                             OM« n -in b«tw««o

                                                                             ClaM Ul -lugwt taCMUiauu
70.  But no matter what an area's class is, no increase is allowed to
     take the area over any ambient standard.
                                                                              Ambient standards
                                                                                 may never
                                                                                be exceeded.
71.  Deciding what class an area will be is a job divided among
     Congress, Federal agencies, and the States.
                                      Classification,
72. ^classification requires public participation and agreement
    from certain important parties, like Federal Land Managers.
                                      Reclassification
73. The method for ensuring that the ambient standards,
    increments, and other values are protected is case-by-case
    review of proposed new sources of air pollutants or modifica-
    tions to them.
74. The Clean Air Act lays down some of the basic features of this
    new source review process for PSD.
                                               § *  ^-^fti
                                               I °— «• I
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75. EPA describes its review procedures in its regulations at 40
    CFR52.21.
76. State Implementation Plans must provide for prevention of
    significant deterioration of air quality. The regulatory
    requirements for PSD SIPs are at 40 CFR 51.24.
                                                                                          ©
77.  To understand generally how this process for reviewing pro-
     posed new sources or modifications works, we broke it down
     into several parts. First, we concentrated on how the
     applicant—the organization that wants to build the
     project—puts together its permit application.

78.  Second, we turned to  how the government agency responsible
     for issuing the permit reviews that application.
79.  In fact, we spent most of our time on the application process.
     The reason for this emphasis is straightforward.  The applica-
     tion is a detailed engineering analysis by the applicant. Its
     purpose is to demonstrate that the proposed construction can
     meet all PSD requirements.  If the application can persuade
     the reviewing agency and public, the applicant gets a permit.
     If not, no permit.

80.  The application, we saw, is made up of four major steps:
      One, Applicability Determination,
      Two, Best Available Control Technology Analysis,
      Three, Air Quality Analysis, and
      Four,  Additional Impacts Analysis.
                                        .The Application. . ..
                                         a detailed engineering
                                              analysis
                                            1. Applicability
                                             Determination
                                            2. BACT Analysis
                                            3. AQ Analysis
                                            4. AI Analysis
                                             11-13

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81.  The first major step, Applicability determination, is con-
     cerned with whether PSD review applies to the project, and if
     it does, how much.  The key questions had to do with
     geographic  applicability—is the area attainment or
     unclassifiable? — and source applicability—is the source or
     modification major?

82.  To answer these questions, we saw that the applicant had to
     deal with a number  of topics. The most important of these
     were:
      • Source definition,
      • Potential to emit pollutants regulated under the Clean Air
        Act,
      • Major source and modification definitions, and
      • Three applicability tests.

83.  The second  major step, BACT Analysis,  is concerned with
     designing an emission control strategy for the new emission
     units.  The analysis arrives at a set of emission limits that
     reflect the maximum degree of reduction of each pollutant
     regulated under the  Clean Air Act. To decide whether a
     reduction is  achievable, the analysis considers energy,
     environmental, and economic impacts. You should note that
     BACT applied to new applications does change over time, as
     technology advances.
                                            1. Applicability
                                             Determination

                                             • doea PSD review apply?
                                             • how much?
                                             • geographic applicability
                                             • eourca applicability
                                             • potential to emit
                                             • three applicability ton
                                            2. BACT Analysis

                                              • designing an emtMlofl

                                              • maximum reduction of
                                               each pollutant
                                              • energy, environmental.
                                               and economic Impact!
84.  The BACT Analysis is organized into four steps for assem-
     bling the data, and three impact analyses.
                                             4 Steps

                                             3 Impact Analyses
85.  The four steps of BACT Analysis are:
      One, Pollutant Applicability,
      Two, Emissions Unit Applicability,
      Three, Identification of Potentially Sensitive Concerns, and
      Four,  Selection of Alternative Control Strategies.

86.  The alternative control strategies are tested and ranked by
     three Impact Analyses:
      • Economic,
      • Energy, and
      • Environmental.
                                                                                    •Slepa-
                                             •Stepa-
                                             PMCMUllv
                                               MCo
                                                of Alur-
                                             11-14

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87. The product of the BACT Analysis is a decision on a set of
    controls to apply on the emission units of the new source or
    modification.
                                      BACT
                                                                                    Controls
88.  Projecting the operation of the source with these controls pro-
     duces a set of emission rates for the pollutants under study.
     These emission rates are proposed permit conditions, and
     they are also  the basis of the two following analyses, Air
     Quality and Additional Impacts.
                                             emission rates
                                           • permit conditions
                                           • basis of AQ and AI
                                             analyses
                                                'IP
89.  The third major step in the application process is Air Quality
     Analysis. It aims at making sure that emissions from the new
     operation will not violate any National Ambient Air Quality
     Standards or allowable increments.  It also examines the
     effects on air quality of emissions of any pollutant regulated
     under the Clean Air Act.
                                          3. AQ Analysis
                                            not vlolat* NAAQS Of

                                           > •unlna eff«cti of ill CAA-
                                            nguUtod pollutant*
90.  Data on air quality can be obtained by measurement or
     estimation.
91.  Some measured data that goes into the baseline air quality
     may  be available from government monitoring, but the appli-
     cant  may have to actually monitor air quality.

92.  Estimated air quality—present or future —is obtained from
     dispersion modeling.
                                            11-15

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93.  This means that, generally, the applicant has to put together
     two plans for Air Quality Analysis: a Monitoring Plan and a
     Modeling Plan.
                                          Monitoring
                                                         Modeling
94.  The complicated work of measuring and estimating air quality
     data is organized into five basic steps and three interrelated
     phases.
                                              • 5 Basic Steps

                                              • 3 Phases
95.  The five steps are:
      One, Impact area definition,
      Two, Emission inventory compilation.
      Three,  Existing concentration determination,
      Four, Screening analysis, and
      Five, Air quality projections.

96.  The three interrelated phases are:
      One, Increment consumption analysis,
      Two, Existing air quality determination, and
      Three,  Projected air quality analysis.
                                             1. Impact Area Definition
                                             2. Emission Inventory
                                              Compilation
                                             3. Existing Concentration
                                              Determination
                                             4. Screening Analysis
                                             5. Air Quality Projections
                                             1. Increment Consumption
                                              Analysis
                                             2. Existing Air Quality
                                              Determination
                                             3. Projected Air Quality
                                              Analysis
97.  The Air Quality Analysis produces a detailed description of
     present and future ambient concentrations of the pollutants
     studied. This is important for showing that the proposed
     project will not exceed any standards or increments. It is also
     important for the final step of the application process.
                                              detailed description of
                                              present and future
                                              ambient concentrations
                                              of pollutants
 98.  The fourth major step in the application, Additional Impacts
     Analysis, is concerned with the effects of the source on air-
     quality-related values. These are: soils,  vegetation, and
     visibility.
4.
AI Analysis
• effects on atrKnialUvreuued
values
• soils, vegetation, and
visibility
 99.  The Additional Impacts Analysis is put together from three
     component analyses:
      • Growth Analysis,
      • Soils and Vegetation Impact Analysis, and
      • Visibility Impairment Analysis.
                                              * Growth Analyst*
                                              • Solla and Vegetation Impact
                                              Analysis
                                              • Visibility Imi
                                              Analysis
                                              11-16

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100. The Additional Impacts Analysis produces a description of
     how the proposed project's operation will affect values — both
     economic and esthetic —in the impact area.
                                             • how proposed project
                                              will affect values:

                                                • economic
                                                • utlMtlc
101. This provides needed data for BACT decision-making, public
     information, and Federal Land Managers' decisions.
                                             > provides needed data
                                             for:
                                             • BACT dtcUlom
                                             • public Information
                                             • Fxtanl Und Mnugv'i
                                              dcclilom
102. We moved on from the completed application to the reviewing
     agency's role in the PSD application and review process. The
     emphasis was again on the applicant's responsibility to pro-
     duce a complete engineering analysis in the application.
103. We began the last lesson with a general description of the
     agency review process, and concluded that description at the
     beginning of this lesson.
104. Actually, the agency's work begins before it receives an
     application. However, the heavy work conies after the applica-
     tion is received.
105.  We broke the review down into five steps:
       One, Preapplication meeting,
       Two, Completeness review,
       Three, Preliminary determination,
       Four,  Public review and comment, and
       Five, Final determination.
                                          G Preapplicatlon Meeting
                                          D Completeness Review
                                          Q Preliminary Determination
                                          O Public Review and Comment
                                          D Final Determination
                                              11-17

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106. The agency review results in a legally binding administrative
     decision.
107. The agency may decide to disapprove the permit. If it does,
     the applicant will have to decide whether to change its plans
     for the proposed source or modification, or pursue some alter-
     native plan.
108. An approved permit will carry conditions to make sure the
     project is built and operated in accordance with PSD program
     requirements.
109. This completes what we have to say about the PSD law and
     regulations in this course. It's been pretty long and com-
     plicated. You may feel you've learned more than you ever
     wanted to know about the subject.
110. But in fact, we've really only done what we promised in the
     course title—we've given you an overview. Behind every
     paragraph of what we've said here, there are chapters of
     greater detail.    >
111.  There's no denying the PSD program is complicated. If you're
     going to work with it, you'll have to read guidelines, journal
     articles, official notices, applications, and even court cases.
                                           11-18

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112. The best way to pick up some information will be to talk with
     people who work with PSD every day.
113. And one last thing—be ready for the program to change.
     Some changes may be big and sweeping; you should see
     something about them in the news.
114.  But some may seem small and technical,  and still have a
      major effect on what you're interested in. Those, you may
      have to watch the Federal Register for. Good luck with your
      continued learning.
115.  (Credit slide)
                                                                                    Agency Review
                                                                                  •of the Application
                                            ••^••of the Application: U^^MM


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116.  (Northrop slide)
                                          • Developed and
                                          produced by:
                                                                                Northrop Services. Inc.

                                                                              EPA Contract No. 68-02-3573
 117.  (Northrop slide)
                                                                                  1980 PSD Work.hop.

                                                                             ( j   U.S. Environmental Protection
                                                                                     Agency
                                                                               Office of Air Quality Planning and
                                                                                    Standards
 118. (NET slide)
                                          Northrop
                                          Environmental
                                          Training
                                              11-19

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