Fact Sheet - Proposed Flexible Air Permitting Rule
ACTION
•	On August 28, 2007, the U.S. Environmental Protection Agency (EPA)
proposed revisions to both the clean air operating permits (title V) and
the new source review (NSR) programs under the Clean Air Act. These
proposed revisions would make more broadly available a new approach
to air permitting known as a "flexible air permit". Flexible air permits
would encourage pollution prevention; provide increased flexibility,
enable industrial facilities to make rapid changes to respond to market
demands; save resources for state permitting authorities, and improve
public information.
•	Under the operating permits program, a flexible air permit would explain its
operational plans and possible changes to those plans for the duration of
the permit term - typically 5 years - and the state, local or tribal air
quality permitting authority would include permit conditions to ensure
protection of public health and the environment for all of those operating
conditions. These flexible permits do not provide approval for
operational changes not within the scope of conditions considered at the
time of the permit application, and facilities would still be required to
meet their requirements under the Clean Air Act.
•	EPA's proposed options under the operating permits program define and
clarify the use of alternative operating scenarios (AOSs) and approved
replicable methodologies (ARMs).
1 .Alternative Operating Scenarios (AOSs) - An AOS enables a
source to obtain approval to make changes to existing emissions
units by including in the permit an explanation of how the facility
would continue to assure compliance with the different Clean Air
Act requirements. For example, an AOS for an existing boiler
might allow the unit to switch from oil to coal (if it were previously
capable of doing so) without a permit revision, even though the
change would be subject to source to different Clean Air Act
requirements.
2. Approved Replicable Methodologies (ARMs) -An ARM is a
replicable protocol placed in a title V permit to facilitate
compliance with an applicable requirement in situations that
otherwise could require a permit revision. For example, an ARM
could specify a replicable testing procedure for updating an
emissions factor, rather than requiring a permit revision to
accomplish its update. To be approvable, an ARM must deliver
replicable results (usually numerical) when operating on the same
input data.

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•	EPA is also describing successful approaches used in State pilots to
authorize "advance approved" changes in programs, such as minor
NSR. Advance approvals authorize planned individual changes or
categories of changes, including the addition of entirely new units that
would otherwise require review and approval by the permitting authority
before they could occur. Advance approvals, including those under
minor NSR, can then be incorporated into the sources operating permit,
along with other terms, as necessary, to assure that such changes will
comply with all applicable air requirements.
•	The proposed revisions to EPA's NSR program describe how industrial
facilities would obtain advance approvals of certain future changes under
major NSR through the use of a new permit option called a "Green
Group." A Green Group consists of a collection of emissions points
ducted to a common, high performing air pollution control device. This
emissions control device must meet "best available control technology"
(BACT) or "lowest achievable emission rate" (LAER), as applicable. The
total annual emissions from all the new and existing emissions activities
included in the Green Group are restricted to a level determined to be
protective of the applicable national ambient air quality standards and the
increments established to protect visibility and other air quality
values. The state, tribal or local permitting authority would retain the
ability to determine if the Green Group permitting approach would be
appropriate in a particular situation.
•	Sources may make changes within the scope of a Green Group approval
without further review or approval by the permitting authority. To
establish a Green Group, a source must go through the major NSR
permitting process and obtain a permit which would limit future emissions
growth over a 10-year period.
•	The proposed changes involve revisions and/or clarifications to mandatory
program elements which mean that states would need to include them in
their permit programs. EPA does not expect that these proposed
changes would necessitate revisions to many approved state operating
permit programs. EPA expects that most states would need to revise
their major NSR programs in order to implement the Green Group
provision.
•	EPA will accept comment on this proposed rule for 60 days after it is
published in the Federal Register.
BACKGROUND
•	In 1990, Congress amended the Clean Air Act to require all States to
develop operating permit programs. These programs require an

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operating permit for each industrial facility that is a "major source" of air
pollution. These permits clarify which underlying federal air pollution
control requirements (applicable requirements) apply to the source and
requires the source to track its compliance with meeting these
requirements.
•	Under this operating permits program, a source is considered major when
it emits a certain level or more of a specific air pollutant. Depending on
the pollutant, this can be a little as 10 tons per year or less.
•	The applicable requirements that go into operating permits come from
EPA's and the states' Clean Air Act regulations. These regulations
typically:
o limit the amount of air pollution the source can emit,
o require the source to construct and operate specific pollution
control equipment,
o require specific work practices to be performed to reduce
emissions, and
o require monitoring and recordkeeping for the source to determine
its compliance with the limits, pollution controls, and work
practices mentioned above.
•	Congress established the NSR program as part of the 1977 Clean Air Act
Amendments and modified it in the 1990 Amendments. NSR is a
preconstruction permitting program that serves two important purposes,
o First, it ensures the maintenance of air quality standards when
sources such as factories, industrial boilers and power plants are
modified or added. In areas that do not meet the national air
quality standards, NSR assures that new emissions do not slow
progress toward cleaner air. In areas that meet the standards,
especially pristine areas like national parks, NSR assures that
new emissions fall within air quality standards,
o Second, the NSR program assures that state of the art control
technology is installed at new plants or at existing plants that are
undergoing a major modification.
•	For more than a decade, EPA has worked closely with state
environmental agencies in a cooperative effort to develop flexible air
permitting approaches. Several state pilot permitting efforts were
launched to address the delay and uncertainty that companies reported
in the early 1990s associated with making operational changes that
required approval and authorization through air permitting actions. The
goal of EPA's program was to provide sources operational flexibility so
that they could more effectively compete in the global market, and, at the
same time, assure environmental protection and promote pollution
prevention.

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•	In 2001-2002, EPA conducted a detailed evaluation of the implementation
experience of six flexible air permitting pilots. Information on EPA's
evaluation can be accessed in the docket for today's proposed
rulemaking.
•	The evaluation demonstrated that the proposed rulemaking would produce
enforceable permits which achieve environmental benefits by
encouraging emissions reductions and facilitating pollution prevention
activities. Of the five pilot sources evaluated by EPA that had operated
under their flexible permits for three or more years, all five achieved 30 to
80 percent reductions in actual plantwide emissions and/or emissions
per unit of production.
•	This proposed rule also would enhance certain opportunities for public
involvement and comment in the permitting process. The inclusion of
advance approvals and AOSs in a permit presents a comprehensive
picture of a source's operations over the permit term, while emissions
caps limit plantwide emissions during the permit term. Permitting
authorities who participated in pilots also noted benefits associated with
improved information flows and reporting on plantwide emissions.
•	Advance approvals and AOS typically improve operational efficiency at
sources by allowing more efficient resource allocation and accommodate
process improvements and pollution prevention activities. Facilities in
the pilot program reported that flexible air permitting approaches
significantly reduce the uncertainty and transaction costs associated with
the permitting process. Several companies linked their increased
operational flexibility under the permits to their ability to capture new
market opportunities, to retain and attract jobs, and to compete more
effectively in global markets. Permitting authorities also noted longer
term administrative benefits from the pilot permits, enabling them to free
staff time and resources to focus on reducing permitting backlogs or
other higher priority environmental needs.
FOR MORE INFORMATION
•	Interested parties can download the notice from EPA's web site on the
Internet under recently signed rules at the following address:
http://www.epa.gov/nsr.
•	Today's proposed rule and other background information are also
available either electronically in EDOCKET, EPA's electronic public
docket and comment system, or in hardcopy at EPA's Air and Radiation
Docket and Information Center, Environmental Protection Agency, Room
3334, 1301 Constitution Avenue, NW, Washington, D.C. (Docket ID No.
EPA-HQ-OAR-2004-0087). The Public Reading Room is open from 8:30

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a.m. to 4:30 p.m., Monday through Friday, excluding legal holidays. The
telephone number for the Public Reading Room is (202) 566-1744, and
the telephone number for the Air and Radiation Docket and Information
Center is (202)566-1742.
•	HOW TO COMMENT: Comments will be accepted for 60 days beginning
when this proposal is published in the Federal Register. All comments
should be identified by Docket ID No. OAR-2004-0087 and submitted by
one of the following methods:
o Federal eRulemaking Portal (http://www.regulations.gov):
o Facsimile ((202) 566-9744;
o Mail (Air and Radiation Docket and Information Center,
Environmental Protection Agency, Mailcode: 2822T, 1200
Pennsylvania Avenue, NW, Washington, DC 20460); or
o Hand delivery (Air and Radiation Docket and Information Center,
Environmental Protection Agency, Room 3334, 1301 Constitution
Avenue, NW, Washington, DC).
•	For further information about the proposed rulemaking, contact Michael
Trutna at EPA's Office of Air Quality Planning and Standards at 919-541-
5345.

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