New Source Review
The New Source Review program was designed to prevent the degradation of air quality from the
construction of new facilities or modification of existing facilities which have potentially harmful
emissions. NSR was established by Congress as part of the 1977 Clean Air Act Amendments (P.L.
95-95).
The NSR process requires power plant operators to undergo a review for environmental controls
if they build a new power generating unit, and to impose the Best Available Control Technology,
as defined by the state permitting authority (or in some cases EPA). Efficiency improvements to
power plants that reduce regulated pollutants should not theoretically trigger NSR requirements,
unless the improvements result in an increase in emissions (e.g., because the modified plant
operates for more hours). Establishment of a pre-improvement emissions baseline before and a
post-improvement emissions report after efficiency upgrades seems like a logical step, but may
not be easily achievable on a consistent basis.47 There are also ambiguities in the law which may
serve to hamper efficiency projects from going forward.
Power plants built prior to 1971 are exempted from the limits on criteria pollutant emissions
contained in the Clean Air Act, but may lose that exemption and be forced to undergo an
NSR if the EPA determines that the plant has undergone non-routine maintenance which
increase emissions.
The power generation industry widely views the NSR process as an obstacle to power plant
efficiency improvement projects. In a 2002 report to the President, the Environmental
Protection Agency concurs, stating “that NSR as applied to existing plants discourages
projects that would have provided needed capacity or efficiency improvements.”48
According to NETL, there are two critical issues with respect to the NSR and efficiency
improvements:49
• The definition of “routine maintenance, repair, and replacement” projects, and