Environmentalists balk at EPA´s proposed New Source Review changes
 
Sept. 11 --

The Environmental Protection Agency proposed additional changes Sept. 8 to the New Source Review program, saying they would make it easier to determine whether plans to modify a power plant or refinery would trigger NSR requirements.

Environmentalists were quick to criticize the proposals, saying they are aimed at helping the oil industry avoid installing additional pollution controls.

The EPA said the NSR revisions would accelerate investments in cleaner energy-saving technologies, while leaving permit limits on emissions unchanged. The NSR revisions would encourage investments in refining capacity, improve efficiency, reduce demand for natural gas, and lower energy costs to households and consumers, according to the EPA.

The proposals address three areas: debottlenecking, aggregation and project netting.

The debottlenecking proposal would change how NSR applies when an owner or operator modifies one part of a facility, such as replacing broken or outdated equipment, and the result is an increase in efficiency throughout the facility. The EPA proposal would specify that the unmodified portions of the facility would not be subject to NSR if the emissions already have been taken into account in a prior permit or regulatory action.

The aggregation proposal would clarify how NSR applies when multiple projects are implemented at a facility and whether they should be treated as a single project.

Under its project netting proposal, the EPA is proposing to simplify the calculation used to determine whether NSR applies when emission increases and decreases are added together.

The EPA, in releasing the proposals, said they were part of President Bush´s effort "to bring cleaner air to Americans."

However, Frank O´Donnell, president of Clean Air Watch, said the changes were industry-sought proposals.

"The underlying issue is very simple: This proposal would create new loopholes that would enable the oil industry to avoid installing modern pollution controls," O´Donnell said.

The head of an association representing refiners said the EPA´s proposed changes would make it easier for refiners to meet the nation´s growing demand for fuel.

"EPA´s proposed improvements to the NSR permitting program will provide additional certainty to oil refiners, petrochemical manufacturers and many other key industries as they modify facilities to meet increased demand for their products in a growing American economy," said Bob Slaughter, president of the National Petrochemical & Refiners Association.

Refiners are trying to comply with requests from members of Congress to increase refining capacity, he said.

The EPA will accept public comments on the rule for 60 days after it is published in the Federal Register. Details about the proposed NSR changes are available at www.epa.gov/nsr.

Entire contents copyright 2005 by Crain Communications Inc. All rights reserved.