New Source Review

New Source Review (NSR) identifies the conditions a regulated source must meet to lawfully construct. NSR is generally required for:

• A new source proposed on land that was previously undeveloped or at a location that was previously unpermitted (this is referred to as New Source Construction)
• A substantial physical change or a change in the method of operation proposed at an existing source.

There are three types of NSR permits. Each has a different set of requirements. A source may have to meet one or more of these requirements. IDEM is authorized to issue NSR permits in Indiana. Following are details about each type of NSR permit.

Prevention of Significant Deterioration (PSD) Permit

• Required for new PSD major sources and major modifications to existing PSD major source in areas designated as attainment or unclassifiable under the National Ambient Air Quality Standards (NAAQS)
• Requirement include:
  • Best Available Control Technology (BACT)
  • Air quality analysis
  • Additional impacts analysis
  • Public participation
• The PSD rules are found at Title 326, Article 2, Rule 2 of the Indiana Administrative Code (326 IAC 2-2 [PDF]).

Nonattainment NSR (Emission Offset (EO)) Permit

• Required for new EO major sources and major modifications to existing EO major sources in areas designated as nonattainment under the NAAQS
• Requirements include:
  • Compliance with Lowest Achievable Emission Rate (LAER)
  • Emission offsets
  • Public participation
• The Nonattainment NSR rules are found at 326 IAC 2-3 [PDF].

Minor NSR Permit

• Required for sources that do not require a PSD or Nonattainment NSR (EO) permit
• In Indiana, these types of permits are often referred to as a “construction permits”
• Required in both attainment and nonattainment areas
• Minor NSR permit rules for new sources are found at 326 IAC 2-5.1-3 [PDF]
• Minor NSR permit rules for modifications to existing permitted sources are found at 326 IAC 2-7-10.5 (Part 70 Permits; Source modifications), 326 IAC 2-6.1-6 (MSOP; Permit revisions), and 326 IAC 2-8-11.1 (FESOP; Permit revisions) [PDF]

More Information

• Indiana New Source Review Reform Manual [PDF]
• New Source Review (NSR) Reform: Background [PDF]
• Prevention of Significant Deterioration (PSD) Program Approval Summary [PDF]
• Title 40, Section 81.315 in the Code of Federal Regulations (40 CFR 81.315): Attainment status designations for Indiana
• U.S. EPA New Source Review (NSR) Permitting website
• RACT/BACT/LAER Clearinghouse (RBLC)