No permit shall be granted or modified under this subpart unless:

1. (1) The owner/operator demonstrates to the reasonable satisfaction of the Division of Environmental Quality that the stationary source will be constructed or modified to operate without resulting in a violation of applicable portions of this part or without interfering with the attainment or maintenance of a national ambient air quality standard in the state in which the proposed source (or modification) is located or in a neighboring state;
2. (2) The Director of the Division of Environmental Quality determines that, by the time the source is to commence operation, sufficient offsetting emissions reductions have been obtained, such that total allowable emissions from existing sources in the nonattainment area, from new or modified sources which are not major emitting facilities, and from the proposed source will be sufficiently less than total emissions from existing sources prior to the application for such permit to construct or modify so as to represent reasonable further progress toward achievement of the national primary ambient air quality standards;
3. (3) The proposed source is required to comply with the lowest achievable emission rate;
4. (4) The owner or operator of the proposed source has demonstrated that all major stationary sources owned or operated by such person (or by any entity controlling, controlled by, or under common control with such person) in the state are subject to emission limitations and are in compliance, or on a schedule for compliance, with all applicable emission limitations and standards; and

5. (5) An analysis of alternative sites, sizes, and production processes and environmental control techniques for such proposed source demonstrates that benefits of the proposed source significantly outweigh the environmental and social costs imposed as a result of its:

   1. (A) Location;
   2. (B) Construction; or
   3. (C) Modification.