New sources of air pollution, and modifications of existing sources must comply with District Rule 2201 (New and Modified Source Review), also known as New Source Review or NSR. This rule is a component of Regulation II of our District Rule. The NSR rule provides the mechanism for the District to issue permits to new and expanding businesses without interfering with efforts to meet the state and federal health-based air quality standards. NSR contains a couple of main requirements – BACT and Offsets.
Best Available Control Technology
The best available air pollution control technology (BACT) is required for new and modifying units that result in certain calculated emissions increases. BACT is, at a minimum, the most stringent control technique or limitation that has been achieved in practice for the same class of source. However, if there is a more effective control that is both technologically feasible and cost effective, or that is contained in an approved implementation plan, the more effective control technique must be used.
Emissions Offsets
Emissions Offsets are emissions reductions that are provided to “offset” emissions increases from new or modifying sources of air pollution. District Rule 2201 requires offsets for increases in allowed emissions above certain trigger levels.
Offsets, when required, may be provided by onsite or offsite emissions reductions and must be real, surplus, quantifiable, enforceable, and permanent. Offsets may be obtained by purchasing emissions reduction credits from another party. Procedures for banking and use of emission reduction credits are described in Rule 2301 (Emission Reduction Credit Banking) in Regulation II of the District Rule. A list of names and addresses of owners of emission reduction credit certificates is available from any of the regional District offices for a nominal fee, or may be downloaded free from our ERC Certificate Holders page.
Other Requirements
For larger projects, or for those with a potentially significant health impact, New Source Review also requires public noticing of preliminary decisions and/or analysis of alternate sites or processes.
