EPA Proposes Revisions To Clarify New Source Review Permitting Process – Updating "Project Emissions Accounting"

Seyfarth Synopsis: Consistent with guidance issued by the Environmental Protection Agency (EPA) in March 2018, the Agency has now proposed to codify changes to the New Source Review (NSR) applicability regulations to clarify the requirements that apply to sources proposing to undertake a physical or operational change under the NSR PSD preconstruction permitting program. The proposal would "make it clear that both emissions increases and decreases from a major modification at an existing source are to be considered during Step 1 of the two-step NSR applicability test." The process is known as "project emissions accounting" (previously known as project netting).

EPA Administrator Andrew Wheeler, in his related announcement, said that the Agency's new rule "is an important step towards President Trump's goal of reforming the elements of NSR that regularly discouraged facilities from upgrading and deploying the latest energy efficient technologies." "By simplifying the