Actual-to-Projected-Actual (ATPA) Applicability Test

Actual-to-Projected-Actual (ATPA) Applicability Test

The actual-to-projected-actual applicability test is a comparison of the projected actual emissions from all affected emission units with the baseline actual emissions from the affected emission units. The actual-to-projected-actual applicability test is used to determine if a physical or operational change at an existing emissions unit will result in a significant emissions increase. The actual-to-projected-actual applicability test is only used for changes made at existing emission units. The key components of the actual-to-projected-actual applicability test are determining the pre-change emissions (baseline actual emissions) and the post change emissions (projected actual emissions). These determinations and the required recordkeeping and reporting can be slightly different if you are a non-electric utility steam generating unit (Non-EUSGU) or if you are an electric utility steam generating unit (EUSGU).

Baseline Actual Emissions

NSR Reform adds a new definition to the major NSR rules, "Baseline actual emissions" (326 IAC 2-2-1(e) [PDF]). Baseline actual emissions are used to determine the pre-change emissions. Baseline actual emissions are the starting point to determine whether a change will be subject to major NSR.

• Baseline actual emissions for Non-EUSGUs is the average annual emissions rate based on the unit's operation during any consecutive 24-month period in the past ten (10) years. The ten (10) year period cannot include any period earlier than November 15, 1990. (326 IAC 2-2-1(e)(2))
• Baseline actual emissions for EUSGUs is the average annual emissions rate based on the unit's operation during any consecutive 24-month period in the past five (5) years (326 IAC 2-2-1(e)(1)).

Only an EUSGU may use a different time period upon determination that it is more representative of normal source operation.

• For the selected 24-month period, the owner or operator must possess adequate documentation to allow the calculation of actual emissions throughout the selected period. The documentation must allow the calculation of any required adjustments to actual emissions (see Adjustments to Baseline Actual Emissions). If documentation is missing or incomplete for any part of the selected 24-month period, a different 24-month period must be selected for which adequate documentation exists.
• Only one 24-month period can be selected for the combination of all affected emission units.
• When a proposed project involves more than one regulated NSR pollutant, a different 24-month period may be selected for each pollutant.

Emission units installed after the selected 24-month period will have baseline actual emissions of zero, unless the emissions unit is new as defined in 326 IAC 2-2-1(u)(1).

Any emissions during the selected 24-month period that resulted from operation in excess of any applicable emission limit must not be included in the baseline actual emissions determination.

Baseline actual emissions are used for modifications, netting and determining plantwide applicability limits (PALs).

• Baseline actual emissions are calculated on a unit-specific basis.
• All emissions units affected by the project must be identified.

Adjustments to Baseline Actual Emissions

• All adjustments to baseline actual emissions are downward.

Baseline actual emissions are adjusted for the following:

• Adjust average annual rate for any portion of the 24-month period that the unit did not operate
• Adjust average annual rate to reflect current emissions control requirements, including but not limited to, any legally enforceable emissions limitation, operating restriction or State or Federal requirement such as RACT, BACT, LAER, NSPS, NESHAP that currently applies to the unit being changed.

All major NSR sources report actual emissions to the department. Your baseline actual emissions should never exceed average actual emissions reported to the department for the 24-month period chosen.

Netting

If a project shows that a significant emissions increase will result, the owner or operator has the option of taking into consideration any contemporaneous emissions changes that may allow a "net out" of major NSR applicability. A "net out" is a showing that the net emissions increase at the major stationary source will not be significant.

• If a proposed project does not result in a significant emissions increase, then netting is not required.

NSR reform does not change the contemporaneous period. The contemporaneous period still includes all creditable increases and decreases in actual emissions that have occurred between the date five (5) years before construction of the particular change commences and the date the increase from the change occurs.

• Each unit included in the contemporaneous period may have its own consecutive 24-month period.
• All requirements for calculating baseline actual emissions still apply, therefore, you must have data to support the units operation during the 24-month period chosen and adjustments must be made to reflect the most current emissions limitations that apply to the unit.

Existing emissions units may calculate baseline actual emissions for each contemporaneous event using the ten (10) year look back period.

Projected Actual Emissions

• Projected actual emissions generated solely for the purpose of the applicability test are not acceptable.
• Adequate documentation must exist to support the level of business activity used for the projections.

Projected actual emissions are the maximum level of emissions associated with the level and type of business activity projected to occur in any one (1) of the next five (5) or ten (10) years following a specific project. Projected actual emissions involve future business activity and require documentation available from public documents or confidential business information.

Projected actual emissions are defined in the rules at 326 IAC 2-2-1(rr). The projection period begins on the date that the affected emissions unit resumes regular operation after completion of the proposed project and includes the 12 months after this date.

• The actual annual emissions associated with the projected level of business activity in each year of the projection period (not necessarily a calendar year) must be determined.

A unit's projected actual emissions rate is calculated as the product of the hourly emissions rate based on the unit's post-change operational capabilities taking into account the legally enforceable restrictions that could affect the hourly rate and the projected level of utilization based on the unit's historical annual utilization rate and available information about the unit's most likely post-change capacity utilization. Projections are for any one (1) of five (5) years or one (1) of ten (10) years if the change involves an increase in the emissions unit's PTE or capacity.

• The actual annual emissions associated with the projected level of business activity in each year of the projection period (not necessarily a calendar year) must be determined.

The owner or operator may choose to use the emissions unit's potential to emit, in tons per year, as the projected actual emissions.

• Choosing to use a units potential to emit as the projected actual emissions will negate the recordkeeping and reporting requirements associated with the actual-to-projected-actual applicability test.

Adjustments to Projected Actual Emissions

Fugitive emissions, if they can be quantified, must be included in the projected actual emissions. Additionally, emissions associated with startups, shutdowns and malfunctions must be included in the projected actual emissions.

Emission increases that are not related to the specific proposed project may be excluded from the projected actual emissions. These are emissions that could have been accommodated during the selected 24-month baseline period by the pre-change emission units. Determining whether certain emissions are related to the proposed project will be a case-by-case determination.

Actual-to-Projected-Actual Applicability Test

Each of the projected actual emissions must be compared to the baseline actual emissions to determine the magnitude of the resulting emissions increase. Major NSR applicability will be based on the highest emissions increase calculated in this way.

• The responsibility for the correctness and accuracy of the baseline actual emissions and projected actual emissions calculations is upon the owner or operator of the source. The department will use the calculations for any required minor source permitting but is not obligated to verify that the calculations were done correctly.
• Any erroneous calculations that result in significant net emission increase will be referred to the Office of Enforcement for further action.

Permit Content

The NSR Reform is about major NSR applicability. In most cases the changes or modifications made at the source will still trigger minor source permitting.

Since all major NSR sources are also Part 70 sources, source modifications will be done pursuant to Part 70 source and permit modification requirements.

Determining Emission Changes

Whether the proposed project involves new emissions units, modifications to existing emissions units or a combination of both, there are several different applicability tests that the owner or operator can use to determine if the project will trigger major NSR applicability:

Actual to Potential Applicability Test

This applicability test is generally used for projects involving new emissions units, however it can be used for changes to existing emissions units. This test involves comparing the post change emissions of the unit (in this case the potential to emit) with the baseline actual emissions. If the emissions unit is an existing emissions unit and potential to emit is used to determine the post change emissions, then the owner or operator is not required to maintain a record of annual emissions for a period of five (5) or ten (10) years following resumption of regular operations nor is the owner or operator required to report post change emissions. If the difference between the post change emissions (potential to emit) and baseline actual emissions is greater than the appropriate major NSR applicability limit, then the project will be subject to major NSR unless the net emissions increase is below the appropriate major NSR applicability limit.

Actual to Projected Actual Applicability Test

This applicability test is only used for projects involving changes at existing emissions units. The actual to projected actual applicability test involves comparing the post change emissions (in this case the projected actual emissions) with the baseline actual emissions. If the difference between the post change emissions (projected actual emissions) and baseline actual emissions is greater than the appropriate major NSR applicability limit, the project will be subject to major NSR unless the net emissions increase is below the appropriate major NSR applicability limit. (As mentioned above, the owner or operator may choose to use the actual to potential applicability test for existing units instead.)

Hybrid Applicability Test

For projects involving combinations of new emissions units, existing emissions units and clean units, the Hybrid Applicability Test is used. The Hybrid Applicability Test involves using the appropriate applicability test as described above for each type of emissions unit and then adding the emissions increases together. If the sum of the emissions increases is greater than the appropriate major NSR applicability limit, then the project will be subject to major NSR unless the net emissions increase is below the appropriate major NSR applicability limit.

Definitions to Consider:

• A new emissions unit is any emissions unit that is, or will be, newly constructed or that has existed for less than two (2) years from the date the emissions unit first operated. 326 IAC 2-2-1 (u)(1)
• An existing emissions unit is any emissions unit that is not a new emissions unit. A replacement unit is an existing emissions unit. 326 IAC 2-2-1 (u)(2)

Recordkeeping and Reporting Requirements

326 IAC 2-2-8 "Source Obligation"

Other than projects at a clean unit or at a source with a PAL, when there is a reasonable possibility that a project that is not part of a major modification may result in a significant emissions increase and projected actual emissions are not calculated using the emissions unit's potential to emit, before beginning actual construction the owner or operator shall document and maintain the following information:

1. a description of the project;
2. identification of any emissions unit for which emissions of a regulated NSR pollutant could be affected by the project;
3. a description of the applicability test used to determine that the project is not a major modification for any regulated NSR pollutant, including:
   1. the baseline actual emissions;
   2. the projected actual emissions;
   3. the amount of emissions excluded that an existing unit could have accommodated during the consecutive 24-month period used to establish the baseline actual emissions and that are unrelated to the project (including increased utilization due to demand growth); and
   4. an explanation for why the amount was excluded, and any netting calculations, if applicable.

• If the emissions unit is an EUSGU, then before beginning actual construction the owner or operator shall provide a copy of this information to the department.
• Only a copy of this information is required, no determination from the department is required before beginning actual construction.
• Indiana minor NSR rules require approval prior to beginning construction unless the project is exempt from permitting requirements.

The owner or operator is required to monitor emissions of any regulated pollutant that could increase as a result of the project and that is emitted by any emissions unit included in the project.

The owner or operator is required to maintain a record of the annual emissions, in tons per year on a calendar year basis, for a period of five (5) years following resumption of regular operations or for a period of ten (10) years following resumption of regular operations if the project increases the design capacity or the potential to emit of the emissions unit.

If the unit is an existing EUSGU, the owner or operator is required to submit a report within sixty (60) days after the end of the year to the department during the period of time that the post change emissions are calculated and maintained.

• The owner or operator must make the information required to be documented and maintained available for review upon a request for inspection by the department.
• The general public may request this information from the department under 326 IAC 17.1 "Public Records; Confidential Information; Confidentiality Agreements".

If the existing unit is a non-EUSGU the owner or operator is required to report within sixty (60) days after the end of the year to the department the annual emissions, in tons per year, exceeding the baseline actual emissions by a significant amount and if the emissions differ from the preconstruction projection.