Tenn. Comp. R. & Regs. 1200-03-09-.01
(1) Application for Construction Permit
(2) Definitions. As used in this chapter all terms not defined herein or in subsequent parts of this chapter shall have the meaning given them in Chapter 1200-03-02.
(b) “Control Strategy” means a combination of measures, approved by the Board, designated to achieve the aggregate reduction of emissions necessary for attainment and maintenance of the ambient air quality standards specified in the regulations under this Division 1200-03, or of the national ambient air quality standards including, but not limited to measures such as:
(e) “Lowest achievable emission rate” (LAER) means, for any stationary source the more stringent rate of emissions based on the following:
(4) Prevention of Significant Air Quality Deterioration
(a) General Provisions
(iii) If requested by the permittee, the Technical Secretary may rescind only certain elements required in a PSD permit issued on or before June 3,
(vi) If the Technical Secretary rescinds a permit under this paragraph, the public shall be given adequate notice of the rescission. Electronic notification of an announcement of permit rescission on the Department’s website within 60 days of the rescission shall be considered adequate notice.
(i) Before beginning actual construction of the project, the owner or operator shall document and maintain a record of the following information:
(v) If the unit is an existing unit other than an electric utility steam generating unit, the owner or operator shall submit a report to the Technical Secretary if the annual emissions, in tons per year, from the project identified in subpart (a)11.(i) of this paragraph, exceed the baseline actual emissions (as documented and maintained pursuant to item (a)11.(i)(III) of this paragraph) by a significant amount (as defined in part (b)24. of this paragraph) for that regulated NSR pollutant, and if such emissions differ from the preconstruction projection as documented and maintained pursuant to item (a)11.(i)(III) of this paragraph. Such report shall be submitted to the Technical Secretary within 60 days after the end of such year. The report shall contain the following:
(b) Definitions. As used in this paragraph, all terms not defined herein shall have the meaning given them in Chapter 1200-03-02.
(i) Any of the following stationary sources, which emit or have the potential to emit, 100 tons per year or more of a regulated NSR pollutant.
(III) Fossil-fuel boilers (or combinations thereof) totaling more than 250 million BTU per hour heat input.
(VIII) Primary zinc smelters
(XIV) Nitric acid plants
(XIX) Sulfur recovery plants
(iii) Any physical change that would occur at a stationary source not otherwise qualifying under part (b)1. as a major stationary source if the change would constitute a major stationary source by itself.
(i) A physical change or change in the method of operation shall not include:
(III) Use of an alternative fuel by reason of an order or rule under section 125 of the Clean Air Act;
(VIII) Reserved.
(IX) The installation, operation, cessation, or removal of a temporary clean coal technology demonstration project, provided that the project complies with:
I. The State Implementation Plan for the State in which the project is located, and II. Other requirements necessary to attain and maintain the national ambient air quality standards during the project and after it is terminated.
(ii) This definition shall not apply with respect to a particular regulated NSR pollutant when the major stationary source is complying with the requirements under subparagraph (s) of this paragraph for a PAL for that pollutant. Instead, the definition at subpart (s)2.(viii) of this paragraph shall apply.
(ii) Any significant emissions increase from any emissions units or net emissions increase at a major stationary source that is significant for either volatile organic compounds or nitrogen oxides shall be considered significant for ozone.
(i) “Net emissions increase” means, with respect to any regulated NSR pollutant emitted by a major stationary source, the amount by which the sum of the following exceeds zero:
(ii) An increase or decrease in actual emissions is contemporaneous with the increase from the particular change only if it occurs between:
(iii) An increase or decrease in actual emissions is creditable only if:
(vi) A decrease in actual emissions is creditable only to the extent that:
(III) It has approximately the same qualitative significance for public health and welfare as that attributed to the increase from the particular change; and
(vii) An increase that results from a physical change at a source occurs when the emissions unit on which construction occurred becomes operational and begins to emit a particular pollutant. Any replacement unit that requires shakedown becomes operational only after a reasonable shakedown period as determined by the Technical Secretary, not to exceed 180 days.
(ii) An existing emissions unit is any emissions unit that does not meet the requirements in subpart (b)8.(i) of this paragraph. A replacement unit, as defined in part (b)33. of this paragraph, is an existing emissions unit.
(ii) Entered into binding agreements or contractual obligations, which cannot be canceled or modified without substantial loss to the owner or operator, to undertake a program of actual construction of the source to be completed within the time frame as allowed in part 1200-03-09-.01(4)(a)4.
(i) Area redesignations under this Division, 1200-03, cannot intersect or be smaller than the area of impact of any major stationary source or major modification which establishes a minor source baseline date or is subject to the regulations in this paragraph.
(ii) “Minor source baseline date” means the earliest date after the trigger date on which a major stationary source or a major modification submits a complete application to the Technical Secretary or to the EPA administrator. The trigger date is:
(iii) The baseline date is established for each pollutant for which increments or other equivalent measures have been established if:
(iii) The following will not be included in the baseline concentration and will affect the applicable maximum allowable increment increase(s):
(ii) The emissions rate specified as a legally enforceable permit condition established pursuant to this Rule 1200-03-09-.01, including those with a future compliance date.
(iii) For any emissions unit that has not begun normal operations on the particular date, actual emissions shall equal the potential to emit of the unit on that date.
(i) Pollutant and Emissions Rate
(III) Sulfur dioxide: 40 tpy
(VIII) Sulfuric acid mist: 7 tpy
(XIV) Ozone depleting substances (listed under Section 602 of the federal Clean Air Act): 40 tpy
(iii) Notwithstanding subpart (b)24.(i), “significant” means any emissions rate or any net emissions increase associated with a major stationary source or major modification, which would construct within 10 kilometers of a Class I area and have an impact on such area equal to or greater than 1 ug/m3 (24-hour average).
(iv) The replaced emissions unit is permanently removed from the major stationary source, otherwise permanently disabled, or permanently barred from operation by a permit that is enforceable as a practical matter. If the replaced emissions unit is brought back into operation, it shall constitute a new emissions unit.
(i) In determining the projected actual emissions under part (b)38. of this paragraph (before beginning actual construction), the owner or operator of the major stationary source:
(III) Shall exclude, in calculating any increase in emissions that results from the particular project, that portion of the unit’s emissions following the project that an existing unit could have accommodated during the consecutive 24-month period used to establish the baseline actual emissions under part (b)45. of this paragraph and that are also unrelated to the particular project, including any increased utilization due to product demand growth; or,
(i) For any existing electric utility steam generating unit, baseline actual emissions means the average rate, in tons per year, at which the unit actually emitted the pollutant during any consecutive 24-month period selected by the owner or operator within the 5-year period immediately preceding when the owner or operator begins actual construction of the project. The Technical Secretary shall allow the use of a different time period upon a determination that it is more representative of normal source operation.
(III) For a regulated NSR pollutant, when a project involves multiple emissions units, one consecutive 24-month period must be used to determine the baseline actual emissions for the emissions units being changed. However, the Technical Secretary is authorized to allow the use of multiple, pollutant specific consecutive 24-month baselines in determining the magnitude of a significant net emissions increase and the applicability of major new source review requirements if all of the following conditions are met:
I. Construction of a new source or modification would become subject to major new source review if a single 2-year baseline is used for all pollutants. II. One or more pollutants were emitted during such 2-year period in amounts that were less than otherwise permitted for reasons other than operations at a lower production or utilization rate. Qualifying examples include, but are not limited to, the voluntary use of:
A. A cleaner fuel than otherwise permitted in a fuel burning operation (e.g., natural gas instead of coal in a multi-fuel boiler),
B. A coating with a lower VOC content than otherwise permitted in a coating operation,
C. A voluntary improvement in the control efficiency of an air pollution control device or the voluntary addition of a control device where one did not exist before, and
D. Alternate production methods, raw materials, or products that result in lower emissions of one or more pollutants. III. Use of alternate 2-year baselines for the pollutants described in subitem II above would result in the construction of the new source or modification not being subject to major new source review. IV. The use of the multiple baselines is not prohibited by any applicable provision of the USEPA’s new source review regulations. The burden for demonstrating that these conditions are met is upon the permit applicant. The demonstration and the Technical Secretary’s approval will be made a part of the permit record.
(ii) For an existing emissions unit (other than an electric utility steam generating unit), baseline actual emissions means the average rate, in tons per year, at which the emissions unit actually emitted the pollutant during any consecutive 24-month period selected by the owner or operator within the 10-year period immediately preceding either the date the owner or operator begins actual construction of the project, or the date a complete permit application is received by the Technical Secretary for a permit required either under this section or under a plan approved by the Administrator, whichever is earlier, except that the 10-year period shall not include any period earlier than November 15, 1990.
(III) The average rate shall be adjusted downward to exclude any emissions that would have exceeded an emission limitation with which the major stationary source must currently comply, had such major stationary source been required to comply with such limitations during the consecutive 24-month period. However, if an emission limitation is part of a maximum achievable control technology standard that the Administrator proposed or promulgated under 40 C.F.R. 63, the baseline actual emissions need only be adjusted if the State has taken credit for such emissions reductions in an attainment demonstration or maintenance plan.
(IV) For a regulated NSR pollutant, when a project involves multiple emissions units, one consecutive 24-month period must be used to determine the baseline actual emissions for the emissions units being changed. However, the Technical Secretary is authorized to allow the use of multiple, pollutant specific consecutive 24-month baselines in determining the magnitude of a significant net emissions increase and the applicability of major new source review requirements if all of the following conditions are met:
I. Construction of a new source or modification would become subject to major new source review if a single 2-year baseline is used for all pollutants. II. One or more pollutants were emitted during such 2-year period in amounts that were less than otherwise permitted for reasons other than operations at a lower production or utilization rate. Qualifying examples include, but are not limited to, the voluntary use of:
A. A cleaner fuel than otherwise permitted in a fuel burning operation (e.g., natural gas instead of coal in a multi-fuel boiler),
B. A coating with a lower VOC content than otherwise permitted in a coating operation,
C. A voluntary improvement in the control efficiency of an air pollution control device or the voluntary addition of a control device where one did not exist before, and
D. Alternate production methods, raw materials, or products that result in lower emissions of one or more pollutants. III. Use of alternate 2-year baselines for the pollutants described in Subitem II. above would result in the construction of the new source or modification not being subject to major new source review. IV. The use of the multiple baselines is not prohibited by any applicable provision of the USEPA’s new source review regulations. The burden for demonstrating that these conditions are met is upon the permit applicant. The demonstration and the Technical Secretary’s approval will be made a part of the permit record.
(iv) For a PAL for a stationary source, the baseline actual emissions shall be calculated for existing electric utility steam generating units in accordance with the procedures contained in subpart (b)45.(i) of this paragraph, for other existing emissions units in accordance with the procedures contained in subpart (b)45.(ii) of this paragraph, and for a new emissions unit in accordance with the procedures contained in subpart (b)45.(iii) of this paragraph.
(i) Greenhouse gases (GHGs), the air pollutant defined in part 86.1818–12(a) of Chapter I of Title 40 of the Code of Federal Regulations as the aggregate group of six greenhouse gases: Carbon dioxide, nitrous oxide, methane, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride, shall not be subject to regulation except as provided in subparts (iv) through (v) of this part.
(ii) For purposes of subparts (iii) through (v) of this part, the term tpy CO2 equivalent emissions (CO2e) shall represent an amount of GHGs emitted, and shall be computed as follows:
(iv) Beginning January 2, 2011, the pollutant GHGs is subject to regulation if:
(v) Beginning July 1, 2011, in addition to the provisions in subpart (iv) of this part, the pollutant GHGs shall also be subject to regulation:
(i) Any pollutant for which a national ambient air quality standard has been promulgated and any pollutant identified under this part as a constituent or precursor to such pollutant. Precursors identified by the Administrator for purposes of NSR are the following:
(III) Nitrogen oxides are presumed to be precursors to PM2.5 in all attainment and unclassifiable areas, unless the State has demonstrated to the satisfaction of the EPA Administrator or EPA demonstrates that emissions of nitrogen oxides from sources in a specific area are not a significant contributor to that area’s ambient PM2.5 concentrations.
(vi) PM2.5 emissions and PM10 emissions shall include gaseous emissions from a source or activity which condense to form particulate matter at ambient temperatures. On or after January 1, 2011, such condensable particulate matter shall be accounted for in applicability determinations and in establishing emissions limitations for PM2.5 and PM10 in PSD permits. Compliance with emissions limitations for PM2.5, and PM10 issued prior to this date shall not be based on condensable particulate matter unless required by the terms and conditions of the permit or the applicable implementation plan. Applicability determinations made prior to this date without accounting for condensable particulate matter shall not be considered in violation of this paragraph unless the applicable implementation plan required condensable particulate matter to be included.
(iii) This part applies only in this chapter 1200-03-09 unless specified otherwise.
(c) Applicability.
(vi) Hybrid test for projects that involve multiple types of emissions units. A significant emissions increase of a regulated NSR pollutant is projected to occur if the sum of the emissions increases for each emissions unit, using the method specified in subparts (c)4.(iii) through (iv) of this paragraph as applicable with respect to each emissions unit, for each type of emissions unit equals or exceeds the significant amount for that pollutant (as defined in part (b)24. of this paragraph).
(d) Major stationary sources and major modifications are exempt from certain provisions of this paragraph in accordance with the following:
(ii) The source or modification was subject to the new construction rules and regulations as in effect before June 3, 1981, and the owner or operator:
(iii) The source or modification was subject to the prevention of significant deterioration rules and regulations as in effect before June 3, 1981, and the owner or operator:
(iv) The source or modification was not subject to this paragraph, with respect to particulate matter, as in effect before June 2, 1990 and the owner or operator:
(iii) Did not discontinue construction for a period of 18 months or more and completed construction within the time frame as allowed in part 1200-03- 09-.01(4)(a)4.
(i) The emissions increase of the pollutant from a new stationary source or the net emissions increase of the pollutant from a modification would cause, in any area, air quality impacts less than the following amounts:
(III) Particulate matter: 10 µg/m3 of TSP, 24-hour average 10 µg/m3 of PM10, 24-hour average;
(VIII) Total reduced sulfur - 10 ug/ m3, 1-hour average;
(v) The concentrations of the pollutant in the area that the source or modification would affect are less than the concentrations listed in subpart (d)6.(i) of this paragraph.
(iii) Notice shall be given to the Technical Secretary 30 days prior to the relocation, giving the new temporary location and the probable length of operation at the new location.
(i) Maximum allowable increases (ambient air increments) as specified in subparagraph 1200-03-09-.01(4)(f) shall not apply to concentrations as described below.
(III) Concentrations of particulate matter attributable to the increase in emissions from construction or other temporary emissions-related activities of new or modified sources;
(iii) For purposes of excluding concentrations pursuant to item 7.(i)(IV), the proposed plan revision shall:
(III) Allow no emission increase from a stationary source which would:
I. Impact a Class I area or an area where an applicable increment is known to be violated; or II. Cause or contribute to the violation of a national ambient air quality standard;
(e) The owner or operator of the proposed major stationary source or major modification:
(ii) Any applicable maximum allowable increase over the baseline concentration in any area.
(i) The data shall include:
(III) A detailed description as to what system of continuous emission reduction is planned for the source or modification, emission estimates, and any other information necessary to determine that best available control technology (BACT) would be applied where required by this paragraph.
(IV) Additional impact analysis
I. The impairment to visibility, soils, and vegetation that would occur as a result of the source or modification and the associated general commercial, residential, industrial, and other growth. Vegetation having no significant commercial or recreational value may be excluded from the analysis. II. The air quality impact projected for the area as a result of general commercial, residential, industrial, and other growth associated with the source or modification. III. The Technical Secretary may require monitoring of visibility in any Federal Class I area near the proposed new stationary source or major modification, for such purposes and by such means as the Technical Secretary deems necessary and appropriate.
(ii) Upon request by the Technical Secretary, the owner or operator shall also provide information on:
(i) Any application for a construction permit pursuant to the regulations of this paragraph shall contain an analysis of ambient air quality in the area that the major stationary source or major modification would affect for each of the following pollutants:
(g) Area classifications - For the purpose of this paragraph, the following classifications shall apply:
(h) Restrictions on area classifications.
(iv) National parks which exceed 6,000 acres in size.
(ii) A national park or national wilderness area established after August 7, 1977, which exceeds 10,000 acres in size.
(i) Ambient air ceilings
(j) Control Technology Review
(l) Public Participation
(vii) Make a final determination whether construction should be approved, approved with conditions, or disapproved pursuant to this paragraph.
(m) Violations of Ambient Air Quality Increments or Standards The Technical Secretary shall not issue a construction permit to a source or facility to construct in an area where the increment is known to be violated or the air quality review predicts a violation of the increment or the ambient air quality standards except in accordance with the following:
(n) Sources Impacting Class I Areas - Additional Requirements
(o) Innovative Control Technology
(iv) The source or modification shall not:
(v) All other applicable requirements including those for public participation have been met.
(iii) The Technical Secretary decides at any time that the proposed system is unlikely to achieve the required level of control, or to protect the public health, welfare, or safety.
(s) Actuals PALs.
(ii) Any physical change in or change in the method of operation of a major stationary source that maintains its total source-wide emissions below the PAL level, meets the requirements in parts (s)1. through 15. of this paragraph, and complies with the PAL permit:
(iii) Except as provided under item (s)1.(ii)(III) of this paragraph, a major stationary source shall continue to comply with all applicable Federal or State requirements, emission limitations, and work practice requirements that were established prior to the effective date of the PAL.
(ii) “Allowable emissions” means “allowable emissions” as defined in part (b)17. of this paragraph, except as this definition is modified according to items (s)2.(ii)(I) and (II) of this paragraph.
(iv) “Major emissions unit” means:
(vii) “PAL effective period” means the period beginning with the PAL effective date and ending 10 years later.
(xi) “Significant emissions unit” means an emissions unit that emits or has the potential to emit a PAL pollutant in an amount that is equal to or greater than the significant level (as defined in part (b)24. of this paragraph or in the Federal Clean Air Act, whichever is lower) for that PAL pollutant, but less than the amount that would qualify the unit as a major emissions unit as defined in subpart (s)2.(iv) of this paragraph.
(iii) The calculation procedures that the major stationary source owner or operator proposes to use to convert the monitoring system data to monthly emissions and annual emissions based on a 12-month rolling total for each month as required by subpart (s)13.(i) of this paragraph.
(i) The Technical Secretary may establish a PAL at a major stationary source, provided that at a minimum, the requirements in items (s)4.(i)(I) through
(VII) of this paragraph are met.
(III) The PAL permit shall contain all the requirements of part (s)7. of this paragraph.
(ii) At no time (during or after the PAL effective period) are emissions reductions of a PAL pollutant that occur during the PAL effective period creditable as decreases for purposes of offsets under subpart (5)(b)2.(v) of this rule unless the level of the PAL is reduced by the amount of such emissions reductions and such reductions would be creditable in the absence of the PAL.
(ii) For newly constructed units (which do not include modifications to existing units) on which actual construction began after the 24-month period, in lieu of adding the baseline actual emissions as specified in subpart (s)6.(i) of this paragraph, the emissions must be added to the PAL level in an amount equal to the potential to emit of the units.
(vii) A requirement that the major stationary source owner or operator monitor all emissions units in accordance with the provisions under part (s)13. of this paragraph.
(x) Any other requirements that the Technical Secretary deems necessary to implement and enforce the PAL.
(ii) Reopening of the PAL permit.
(I) During the PAL effective period, the Technical Secretary shall reopen the PAL permit to:
I. Correct typographical/calculation errors made in setting the PAL or reflect a more accurate determination of emissions used to establish the PAL; II. Reduce the PAL if the owner or operator of the major stationary source creates creditable emissions reductions for use as offsets under subpart (5)(b)2.(v) of this rule; and III. Revise the PAL to reflect an increase in the PAL as provided under part (s)11. of this paragraph.
(II) The Technical Secretary may reopen the PAL permit for the following:
I. Reduce the PAL to reflect newly applicable Federal requirements (for example, NSPS) with compliance dates after the PAL effective date; II. Reduce the PAL consistent with any other requirement, that is enforceable as a practical matter, and that the State may impose on the major stationary source under the plan; and III. Reduce the PAL if the Technical Secretary determines that a reduction is necessary to avoid causing or contributing to a NAAQS or PSD increment violation, or to an adverse impact on an AQRV that has been identified for a Federal Class I area by a Federal Land Manager and for which information is available to the general public.
(i) Each emissions unit (or each group of emissions units) that existed under the PAL shall comply with an allowable emission limitation under a revised permit established according to the procedures in items (s)9.(i)(I) and (II) of this paragraph.
(v) The major stationary source owner or operator shall continue to comply with any State or Federal applicable requirements (BACT, RACT, NSPS, etc.) that may have applied either during the PAL effective period or prior to the PAL effective period except for those emission limitations that had been established pursuant to part (a)6. of this paragraph, but were eliminated by the PAL in accordance with the provisions in item (s)1.(ii)(III) of this paragraph.
(iii) Application requirements. The application to renew a PAL permit shall contain the information required in items (s)10.(iii)(I) through (IV) of this paragraph.
(III) The sum of the potential to emit of all emissions units under the PAL (with supporting documentation).
(iv) PAL adjustment. In determining whether and how to adjust the PAL, the Technical Secretary shall consider the options outlined in items (s)10.(iv)(I) and (II) of this paragraph. However, in no case may any such adjustment fail to comply with item (s)10.(iv)(III) of this paragraph.
(III) Notwithstanding items (s)10.(iv)(I) and (II) of this paragraph:
I. If the potential to emit of the major stationary source is less than the PAL, the Technical Secretary shall adjust the PAL to a level no greater than the potential to emit of the source; and II. The Technical Secretary shall not approve a renewed PAL level higher than the current PAL, unless the major stationary source has complied with the provisions of part (s)11. of this paragraph (increasing a PAL).
(v) If the compliance date for a State or Federal requirement that applies to the PAL source occurs during the PAL effective period, and if the Technical Secretary has not already adjusted for such requirement, the PAL shall be adjusted at the time of PAL permit renewal or title V permit renewal, whichever occurs first.
(i) The Technical Secretary may increase a PAL emission limitation only if the major stationary source complies with the provisions in items (s)11.(i)(I) through (IV) of this paragraph.
(III) The owner or operator obtains a major NSR permit for all emissions unit(s) identified in item (s)11.(i)(I) of this paragraph, regardless of the magnitude of the emissions increase resulting from them (that is, no significant levels apply). These emissions unit(s) shall comply with any emissions requirements resulting from the major NSR process (for example, BACT), even though they have also become subject to the PAL or continue to be subject to the PAL.
(iii) The PAL permit shall be revised to reflect the increased PAL level pursuant to the public notice requirements of part (s)5. of this paragraph.
(i) General requirements.
(III) Notwithstanding item (s)12.(i)(II) of this paragraph, you may also employ an alternative monitoring approach that meets item (s)12.(i)(I) of this paragraph if approved by the Technical Secretary.
(ii) Minimum performance requirements for approved monitoring approaches. The following are acceptable general monitoring approaches when conducted in accordance with the minimum requirements in subparts (s)12.(iii) through (ix) of this paragraph:
(III) CPMS or PEMS; and
(iii) Mass balance calculations. An owner or operator using mass balance calculations to monitor PAL pollutant emissions from activities using coating or solvents shall meet the following requirements:
(iv) CEMS. An owner or operator using CEMS to monitor PAL pollutant emissions shall meet the following requirements:
(v) CPMS or PEMS. An owner or operator using CPMS or PEMS to monitor PAL pollutant emissions shall meet the following requirements:
(vi) Emission factors. An owner or operator using emission factors to monitor PAL pollutant emissions shall meet the following requirements:
(vii) A source owner or operator must record and report maximum potential emissions without considering enforceable emission limitations or operational restrictions for an emissions unit during any period of time that there is no monitoring data, unless another method for determining emissions during such periods is specified in the PAL permit.
(viii) Notwithstanding the requirements in subparts (s)12.(iii) through (vii) of this paragraph, where an owner or operator of an emissions unit cannot demonstrate a correlation between the monitored parameter(s) and the PAL pollutant emissions rate at all operating points of the emissions unit, the Technical Secretary shall, at the time of permit issuance:
(ix) Re-validation. All data used to establish the PAL pollutant must be re- validated through performance testing or other scientifically valid means approved by the Technical Secretary. Such testing must occur at least once every 5 years after issuance of the PAL.
(ii) The PAL permit shall require an owner or operator to retain a copy of the following records, for the duration of the PAL effective period plus 5 years:
(i) Semi-annual report. The semi-annual report shall be submitted to the Technical Secretary within 30 days of the end of each reporting period. This report shall contain the information required in items (s)14.(i)(I) through (VII) of this paragraph.
(III) All data relied upon, including, but not limited to, any Quality Assurance or Quality Control data, in calculating the monthly and annual PAL pollutant emissions.
(ii) Deviation report. The major stationary source owner or operator shall promptly submit reports of any deviations or exceedance of the PAL requirements, including periods where no monitoring is available. A report submitted pursuant to item .02(11)(e)1.(iii)(III) of this chapter shall satisfy this reporting requirement. The deviation reports shall be submitted within the time limits prescribed by item .02(11)(e)1.(iii)(III) of this chapter. The reports shall contain the following information:
(III) Emissions resulting from the deviation or the exceedance; and
(iii) Re-validation results. The owner or operator shall submit to the Technical Secretary the results of any re-validation test or method within three months after completion of such test or method.
(5) Growth Policy
(b) Nonattainment Areas
(iv) “Major stationary source” means:
(I) Any stationary source of air contaminants which emits, or has the potential to emit, 100 tons per year or more of any regulated NSR pollutant, except that lower emissions thresholds shall apply in areas subject to subpart 2, subpart 3, or subpart 4 of part D, title I of the Clean Air Act, according to subitems I. through VI. of this item.
I. 50 tons per year of either volatile organic compounds or nitrogen oxides in any serious ozone non-attainment area. II. 50 tons per year of either volatile organic compounds or nitrogen oxides in an area within an ozone transport region, except for any severe or extreme ozone non-attainment area. III. 25 tons per year of either volatile organic compounds or nitrogen oxides in any severe ozone non-attainment area. IV. 10 tons per year of either volatile organic compounds or nitrogen oxides in any extreme ozone non-attainment area.
V. 50 tons per year of carbon monoxide in any serious non- attainment area for carbon monoxide, where stationary sources contribute significantly to carbon monoxide levels in the area (as determined under rules issued by the Administrator of the U.S. EPA). VI. 70 tons per year of PM–10 in any serious non-attainment area for PM–10; or
(III) A major stationary source that is major for volatile organic compounds or nitrogen oxides shall be considered major for ozone.
(IV) The fugitive emissions of a stationary source shall not be included in determining for any of the purposes of this item, whether it is a major stationary source, unless the source belongs to one of the following categories of stationary sources:
I. Coal cleaning plants (with thermal dryers); II. Kraft pulp mills; III. Portland cement plants; IV. Primary zinc smelters;
V. Iron and steel mills; VI. Primary aluminum ore reduction plants; VII. Primary copper smelters; VIII. Municipal incinerators (or combination thereof) capable of charging more than 250 tons of refuse per day; IX. Hydrofluoric, sulfuric, or nitric acid plants;
X. Petroleum refineries; XI. Lime plants; XII. Phosphate rock processing plants; XIII. Coke oven batteries; XIV. Sulfur recovery plants; XV. Carbon black plants (furnace process); XVI. Primary lead smelters; XVII. Fuel conversion plants; XVIII. Sintering plants; XIX. Secondary metal production plants; XX. Chemical process plants; XXI. Fossil-fuel boilers (or combination thereof) totaling more than 250 million British thermal units per hour heat input; XXII. Petroleum storage and transfer units with a total storage capacity exceeding 300,000 barrels; XXIII. Taconite ore processing plants; XXIV. Glass fiber processing plants; XXV. Charcoal production plants; XXVI. Fossil fuel-fired steam electric plants of more than 250 million British thermal units per hour heat input; and XXVII.Any other stationary source category that was regulated under Chapter 1200-03-16, New Source Performance Standards (as of August 7, 1980), Chapter 1200-03-11, Hazardous Air Contaminants (as of August 7, 1980), Chapter 1200-03-31, Case-by-Case Determinations of Hazardous Air Pollutant Control Requirements (as of September 18, 1994), Chapter 0400-30-38, Emission Standards for Hazardous Air Pollutants (as of December 28, 2022), or Chapter 0400-30-39, Standards of Performance for New Stationary Sources (as of the most recent effective date of this rule).
(v) Major modification:
(I) “Major modification” means any physical change in or change in the method of operation of a major stationary source that would result in:
I. A significant emissions increase of a regulated NSR pollutant (as defined in subpart 1.(xlix) of this subparagraph). II. A significant net emissions increase of that pollutant from the major stationary source.
(III) A physical change or change in the method of operation shall not include:
I. Routine maintenance, repair, and replacement; II. Use of an alternative fuel or raw material by reason of any order under section 2(a) and (b) of the Energy Supply and Environmental Coordination Act of 1974 (or any superseding legislation) or by reason of a natural gas curtailment plan pursuant to the federal power act; III. Use of an alternative fuel by reason of an order or Rule under Section 125 of the Clean Air Act Amendments, August 7, 1977; IV. Use of an alternative fuel at a steam generating unit (burning equipment of 250 million BTU’s per hour or larger) to the extent that the fuel is generated from municipal solid waste as determined by the Tennessee Division of Solid Waste Management.
V. Use of an alternative fuel or raw material by a stationary source which the source was capable of accommodating before December 12, 1976, unless such change would be prohibited under a legally enforceable permit condition which was established after December 12, 1976, pursuant to 40 C.F.R. Part 52.21 (July 1, 1993), or under regulations approved pursuant to 40 C.F.R. Part 51 Subpart I or 51.166 (July 1, 1993), or the source is approved to use under any permit issued pursuant to this paragraph; VI. An increase in the hours of operation or in the production rate, unless such change would be prohibited under a legally enforceable permit condition which was established after December 21, 1976, pursuant to 40 C.F.R. Part 52.21 (July 1, 1993) or regulations approved pursuant to 40 C.F.R. Part 51 Subpart I or 40 C.F.R. Part 51.166 (July 1, 1993). VII. Any change in ownership at a stationary source. VIII. Reserved. IX. The installation, operation, cessation, or removal of a temporary clean coal technology demonstration project, provided that the project complies with:
A. The State Implementation Plan for the State in which the project is located, and
B. Other requirements necessary to attain and maintain the national ambient air quality standards during the project and after it is terminated.
(vi) Net emission increases
(I) “Net emissions increase” means, with respect to any regulated NSR pollutant emitted by a major stationary source, the amount by which the sum of the following exceeds zero:
I. The increase in emissions from a particular physical change or change in the method of operation at a stationary source as calculated pursuant to subparts 2.(xii) through (xvii) of this subparagraph; and II. Any other increases and decreases in actual emissions at the major stationary source that are contemporaneous with the particular change and are otherwise creditable. Baseline actual emissions for calculating increases and decreases under this subitem II. shall be determined as provided in subpart 1.(xlvii) of this subparagraph, except that subitems 1.(xlvii)(I)III. and IV. of this subparagraph shall not apply.
(III) An increase or decrease in actual emissions is creditable only if;
I. It occurs within a reasonable period to be specified by the Technical Secretary; and II. The Technical Secretary has not relied on it in issuing a permit for the source under regulations approved pursuant to 40 C.F.R. Part 51 Subpart I, which permit is in effect when the increase in actual emissions from the particular change occurs; and III. Reserved.
(V) A decrease in actual emissions is creditable only to the extent that:
I. The old level of actual emission or the old level of allowable emissions which ever is the lower, exceeds the new level of actual emissions; and II. It is enforceable as a practical matter at and after the time that actual construction on the particular change begins; and III. The Technical Secretary has not relied on it in issuing any permit under regulation approved pursuant to 40 C.F.R. Part 51 Subpart I or the Technical Secretary has not relied on it in demonstrating attainment or reasonable further progress; and IV. It has approximately the same qualitative significance for public health and welfare as that attributed to the increase from the particular change; and.
V. Reserved.
(vii) “Emissions unit” means any part of a stationary source that emits or would have the potential to emit any regulated NSR pollutant. This definition includes an electric steam generating unit as defined in subpart 1.(lvi) of this subparagraph. For purposes of this section, there are two types of emissions units as described in items 1.(vii)(I) and (II) of this subparagraph.
(x) “Significant” means, in reference to a net emissions increase or the potential of a source to emit any of the following air contaminants, a rate of emissions that would equal or exceed any of the following rates:
(I) Air Contaminant and Emissions Rate
I. Carbon monoxide: 100 tons per year (tpy) II. Nitrogen Oxides: 40 tpy III. Sulfur dioxide: 40 tpy IV. Ozone: 40 tpy of an ozone precursor
V. Lead: 0.6 tpy VI. PM10: 15 tpy VII. PM2.5: 10 tpy of direct PM2.5 emissions; 40 tpy of sulfur dioxide emissions; 40 tpy of nitrogen oxide emissions unless demonstrated not to be a PM2.5 precursor under subitem 1.(xlix)(III)III. of this subparagraph.
(III) Reserved.
(xi) “Allowable emissions” means the emissions rate of a stationary source calculated using the maximum rated capacity of the source (unless the source is subject to legally enforceable limits which restrict the operating rate, or hours of operation, or both) and the most stringent of the following:
(I) The applicable standards set forth in:
I. The New Source Performance Standards (NSPS) or; II. The National Emission Standards for Hazardous Air Pollutants (NESHAP) contained in Chapter 0400-30-38, Emission Standards for Hazardous Air Pollutants, and Chapter 1200-03- 31, Case-by-Case Determinations of Hazardous Air Pollution Control Requirements, or; III. Limits established pursuant to the applicable standards under Division 1200-03 or; IV. In the State Implementation Plan, emissions rates, specified as a legally enforceable permit condition established pursuant to this rule 1200-03-09-.01 including those with a future compliance date
(xii) “Legally enforceable” means all limitations and conditions which are enforceable by the Technical Secretary and the EPA Administrator and are included under this Division 1200-03 and the State Implementation Plan. All orders issued by the Tennessee Air Pollution Control Board, operating permits and their respective special conditions issued in accordance with the Act and Regulations, and any certificate authorized by the Act or the Regulations shall be taken to public hearing and made part of the State Implementation Plan by the Board to be legally enforceable.
(xiii) “Actual emissions” means the actual rate of emissions of a regulated NSR pollutant from an emissions unit, as determined in accordance with items 1.(xiii)(I) through (III) of this subparagraph, except that this definition shall not apply for calculating whether a significant emissions increase has occurred, or for establishing a PAL under part 10. of this subparagraph. Instead, subparts 1.(xxxix) and (xlvii) of this subparagraph shall apply for those purposes.
(xvi) “Necessary Preconstruction permits” means those permits required under the Federal air quality control laws and regulations which are part of the approved SIP under Division 1200-03.
(xvii) “Begin actual construction” means, in general, initiation of physical on-site construction activities on an emissions unit which are of a permanent nature. Such activities include, but are not limited to, installation of building supports and foundations, laying of underground pipe work, and construction of permanent storage structures. With respect to a change in method of operation this term refers to those on-site activities, other than preparatory activities, which mark the initiation of the change. (xviii) “Lowest achievable emission rate” (LAER) means, for any source, the more stringent rate of emissions based on the following:
(xxi) “Minor modification” means
(xxiv) “Reasonable available control technology” (RACT) means devices, systems, process modifications, or other apparatus or techniques that are reasonably available taking into account:
(xxv) “Compliance schedule” means a chronology of actions to be taken by a noncomplying source to bring it into full compliance with Division 1200-03 or permits issued thereto. Generally speaking, compliance schedule increments will be divided into (1) engineering evaluation for problem solution, (2) procurement of the equipment and/or services necessary to solve the problem, (3) on-site delivery of the equipment, (4) completion of the equipment’s installation including startup of said equipment and (5) source testing to establish the air contaminant emission levels of the completed installation if required by the Technical Secretary.
(xxvi) “Air contaminant” is particulate matter, dust, fumes, gas, mist, smoke, or vapor, or any combinations thereof, total suspended particulates, PM10, sulfur dioxide, carbon monoxide, ozone, nitrogen oxides, lead, and gaseous fluorides expressed as HF. (xxvii) “Good Engineering Practice” (GEP) (GEP) Stack height means the greater of:
(xxx) “Volatile Organic Compounds” and “exempt compounds” have the same meaning as defined in Division 1200-03-18-.01 Definitions.
(xxxi) “Ambient Air Quality Standard” (AAQS) means any Primary Ambient Air Quality Standard or Secondary Ambient Air Quality Standard or Tennessee Ambient Air Quality Standard as defined in Chapter 1200-03-03. (xxxii) “Class I, Class II, or Class III” areas means areas of the state as defined by Division 1200-03-09-.01(4)(g). (xxxiii)“Ozone precursor” means volatile organic compounds and/or nitrogen oxides. A proposed new source or a net emissions increase at an existing source in an ozone transport region (or an ozone nonattainment area) can be classified as major based on either VOC or NOx emissions or both (but not in combination). That is, the determination of major must be made individually for each pollutant, since VOC and NOx emissions cannot be added to meet the minimum level required for such a demonstration.
(I) Notwithstanding subpart (xxxiii) of this part, NOx shall not be considered an ozone precursor when:
I. Additional NOx emissions reductions would not be expected to decrease ozone; II. The Administrator of EPA determines, for certain classes or categories of sources (when the Administrator approves the Tennessee State Implementation Plan or Plan revision), that net air quality benefits would be greater in the absence of further nitrogen oxides reductions from sources concerned; and III. The Administrator of the U.S. EPA has granted a NOx waiver applying the standards set forth under section 182(f) of the Clean Air Act and the waiver continues to apply. (xxxiv)“Stack height procedures” means those procedures that must provide that the degree of emission limitation required of any source for control of any air pollutant must not be affected by so much of any source’s stack height that exceed good engineering practice or by any other dispersion technique, except as provided in 40 C.F.R. Part 51.118(b) (July 1, 1993). Such procedures must provide that before the Technical Secretary issues a permit to a source based on a good engineering practice stack height that exceeds the height allowed by 40 C.F.R. Part 51.100(ii)(1) or (2) (July 1, 1993), the Technical Secretary must notify the public of the availability of the demonstration study and must provide opportunity for public hearing on it. This subpart does not require such procedures to restrict in any manner the actual stack height of any source.
(xxxv) “Portable Stationary Source” means any source that is mounted on any chassis or skids and may be moved by the application of a lifting or pulling force. In addition, there shall be no cable, chain, turnbuckle, bolt or other means (except electrical connections) by which any piece of equipment is attached or clamped to any anchor, slab, or structure, including bedrock that must be removed prior to the application of a lifting or pulling force for the purpose of transporting the unit, except that such connection as deemed appropriate by the Technical Secretary may be exempted for safety considerations from the specified restrictions on a qualifying source. (xxxvi)“Replacement unit” means an emissions unit for which all the criteria listed in items 1.(xxxvi)(I) through (IV) of this subparagraph are met. No creditable emission reductions shall be generated from shutting down the existing emissions unit that is replaced.
(III) The replacement does not alter the basic design parameters of the process unit.
(xl) “Projected actual emissions” means, the maximum annual rate, in tons per year, at which an existing emissions unit is projected to emit a regulated NSR pollutant in any one of the 5 years (12-month period) following the date the unit resumes regular operation after the project, or in any one of the 10 years following that date, if the project involves increasing the emissions unit’s design capacity or its potential to emit of that regulated NSR pollutant and full utilization of the unit would result in a significant emissions increase or a significant net emissions increase at the major stationary source.
(I) In determining the projected actual emissions under subpart 1.(xl) of this subparagraph before beginning actual construction, the owner or operator of the major stationary source:
I. Shall consider all relevant information, including but not limited to, historical operational data, the company’s own representations, the company’s expected business activity and the company’s highest projections of business activity, the company’s filings with the State or Federal regulatory authorities, and compliance plans under the approved plan; and II. Shall include fugitive emissions to the extent quantifiable, and emissions associated with startups, shutdowns, and malfunctions; and III. Shall exclude, in calculating any increase in emissions that results from the particular project, that portion of the unit’s emissions following the project that an existing unit could have accommodated during the consecutive 24-month period used to establish the baseline actual emissions under subpart 1.(xlvii) of this subparagraph and that are also unrelated to the particular project, including any increased utilization due to product demand growth; or,
(xli) Reserved.
(xlv) “Continuous parameter monitoring system” (CPMS) means all of the equipment necessary to meet the data acquisition and availability requirements of this section, to monitor process and control device operational parameters (for example, control device secondary voltages and electric currents) and other information (for example, gas flow rate, O2 or CO2 concentrations), and to record average operational parameter value(s) on a continuous basis.
(xlvi) “Continuous emissions rate monitoring system” (CERMS) means the total equipment required for the determination and recording of the pollutant mass emissions rate (in terms of mass per unit of time). (xlvii) “Baseline actual emissions” means the rate of emissions, in tons per year, of a regulated NSR pollutant, as determined in accordance with items 1.(xlvii)(I) through (IV) of this subparagraph.
(I) For any existing electric utility steam generating unit, baseline actual emissions means the average rate, in tons per year, at which the unit actually emitted the pollutant during any consecutive 24-month period selected by the owner or operator within the 5-year period immediately preceding when the owner or operator begins actual construction of the project. The Technical Secretary shall allow the use of a different time period upon a determination that it is more representative of normal source operation.
I. The average rate shall include fugitive emissions to the extent quantifiable, and emissions associated with startups, shutdowns, and malfunctions. II. The average rate shall be adjusted downward to exclude any non-compliant emissions that occurred while the source was operating above any emission limitation that was legally enforceable during the consecutive 24-month period. III. For a regulated NSR pollutant, when a project involves multiple emissions units, one consecutive 24-month period must be used to determine the baseline actual emissions for the emissions units being changed. However, the Technical Secretary is authorized to allow the use of multiple, pollutant specific consecutive 24-month baselines in determining the magnitude of a significant net emissions increase and the applicability of major new source review requirements if all of the following conditions are met:
A. Construction of a new source or modification would become subject to major new source review if a single 2- year baseline is used for all pollutants.
B. One or more pollutants were emitted during such 2-year period in amounts that were less than otherwise permitted for reasons other than operations at a lower production or utilization rate. Qualifying examples include, but are not limited to, the voluntary use of:
(D) Alternate production methods, raw materials, or products that result in lower emissions of one or more pollutants.
C. Use of alternate 2-year baselines for the pollutants described in subitem II. above would result in the construction of the new source or modification not being subject to major new source review.
D. The use of the multiple baselines is not prohibited by any applicable provision of the USEPA’s new source review regulations. The burden for demonstrating that these conditions are met is upon the permit applicant. The demonstration and the Technical Secretary’s approval will be made a part of the permit record. IV. The average rate shall not be based on any consecutive 24- month period for which there is inadequate information for determining annual emissions, in tons per year, and for adjusting this amount if required by subitem 1.(xlvii)(I)II. of this subparagraph.
(II) For an existing emissions unit (other than an electric utility steam generating unit), baseline actual emissions means the average rate, in tons per year, at which the emissions unit actually emitted the pollutant during any consecutive 24-month period selected by the owner or operator within the 10-year period immediately preceding either the date the owner or operator begins actual construction of the project, or the date a complete permit application is received by the Technical Secretary for a permit required either under this subparagraph or under a plan approved by the Administrator, whichever is earlier, except that the 10-year period shall not include any period earlier than November 15, 1990.
I. The average rate shall include fugitive emissions to the extent quantifiable, and emissions associated with startups, shutdowns, and malfunctions. II. The average rate shall be adjusted downward to exclude any non-compliant emissions that occurred while the source was operating above an emission limitation that was legally enforceable during the consecutive 24-month period. III. The average rate shall be adjusted downward to exclude any emissions that would have exceeded an emission limitation with which the major stationary source must currently comply, had such major stationary source been required to comply with such limitations during the consecutive 24-month period. However, if an emission limitation is part of a maximum achievable control technology standard that the Administrator proposed or promulgated under 40 C.F.R. 63, the baseline actual emissions need only be adjusted if the State has taken credit for such emissions reductions in an attainment demonstration or maintenance plan consistent with the requirements of item 2.(v)(VII) of this subparagraph. IV. For a regulated NSR pollutant, when a project involves multiple emissions units, one consecutive 24-month period must be used to determine the baseline actual emissions for the emissions units being changed. However, the Technical Secretary is authorized to allow the use of multiple, pollutant specific consecutive 24-month baselines in determining the magnitude of a significant net emissions increase and the applicability of major new source review requirements if all of the following conditions are met:
A. Construction of a new source or modification would become subject to major new source review if a single 2- year baseline is used for all pollutants.
B. One or more pollutants were emitted during such 2-year period in amounts that were less than otherwise permitted for reasons other than operations at a lower production or utilization rate. Qualifying examples include, but are not limited to, the voluntary use of:
(D) alternate production methods, raw materials, or products that result in lower emissions of one or more pollutants.
C. Use of alternate 2-year baselines for the pollutants described in section B. above would result in the construction of the new source or modification not being subject to major new source review.
D. The use of the multiple baselines is not prohibited by any applicable provision of the USEPA’s new source review regulations. The burden for demonstrating that these conditions are met is upon the permit applicant. The demonstration and the Technical Secretary’s approval will be made a part of the permit record.
V. The average rate shall not be based on any consecutive 24- month period for which there is inadequate information for determining annual emissions, in tons per year, and for adjusting this amount if required by subitems 1.(xlvii)(II)II. and III. of this subparagraph.
(III) For a new emissions unit, the baseline actual emissions for purposes of determining the emissions increase that will result from the initial construction and operation of such unit shall equal zero; and thereafter, for all other purposes, shall equal the unit’s potential to emit.
(xlix) “Regulated NSR pollutant,” for purposes of this subparagraph, means the following:
(III) Any pollutant that is a constituent or precursor of a general pollutant listed under items 1.(xlix)(I) or (II) of this subparagraph, provided that a constituent or precursor pollutant may only be regulated under NSR as part of regulation of the general pollutant. Precursors for purposes of NSR are the following:
I. Volatile organic compounds and nitrogen oxides are precursors to ozone in all ozone nonattainment areas. II. Sulfur dioxide is a precursor to PM2.5 in all PM2.5 nonattainment areas. III. Nitrogen oxides are presumed to be precursors to PM2.5 in all PM2.5 nonattainment areas, unless the State demonstrates to the satisfaction of the EPA Administrator or EPA demonstrates that emissions of nitrogen oxides from sources in a specific area are not a significant contributor to that area’s ambient PM2.5 concentrations. IV. Volatile organic compounds and ammonia are presumed not to be precursors to PM2.5 in any PM2.5 nonattainment area, unless the State demonstrates to the satisfaction of the EPA Administrator or EPA demonstrates that emissions of volatile organic compounds or ammonia from sources in a specific area are a significant contributor to that area’s ambient PM2.5 concentrations; or
(lii) “Best available control technology” (BACT) means an emissions limitation (including a visible emissions standard) based on the maximum degree of reduction for each regulated NSR pollutant which would be emitted from any proposed major stationary source or major modification which the Technical Secretary, on a case-by-case basis, taking into account energy, environmental, and economic impacts and other costs, determines is achievable for such source or modification through application of production processes or available methods, systems, and techniques, including fuel cleaning or treatment or innovative fuel combustion techniques for control of such pollutant. In no event shall application of best available control technology result in emissions of any pollutant which would exceed the emissions allowed by any applicable standard under 40 C.F.R. Part 60 or 61. If the Technical Secretary determines that technological or economic limitations on the application of measurement methodology to a particular emissions unit would make the imposition of an emissions standard infeasible, a design, equipment, work practice, operational standard, or combination thereof, may be prescribed instead to satisfy the requirement for the application of BACT. Such standard shall, to the degree possible, set forth the emissions reduction achievable by implementation of such design, equipment, work practice or operation, and shall provide for compliance by means which achieve equivalent results. This definition does not apply to minor stationary sources and minor modifications proposing to construct in a nonattainment area. For these sources, the definition in subparagraph (2)(d) of this rule applies.
(lvi) “Electric utility steam generating unit” (EUSGU) means any steam electric generating unit that is constructed for the purpose of supplying more than one-third of its potential electric output capacity and more than 25 MW electrical output to any utility power distribution system for sale. Any steam supplied to a steam distribution system for the purpose of providing steam to a steam-electric generator that would produce electrical energy for sale is also considered in determining the electrical energy output capacity of the affected facility.
(lix) “Clean coal technology demonstration project” means a project using funds appropriated under the heading “Department of Energy-Clean Coal Technology,” up to a total amount of $2,500,000,000 for commercial demonstration of clean coal technology, or similar projects funded through appropriations for the Environmental Protection Agency. The Federal contribution for a qualifying project shall be at least 20 percent of the total cost of the demonstration project.
(iii) Major stationary sources or major modifications shall meet the following criteria:
(III) A major modification shall apply the lowest achievable emission rate for each air contaminant for which the area is designated nonattainment and for which it would result in a significant net emissions increase at the source. This requirement applies to each proposed emissions unit at which a net emissions increase in the air contaminant would occur as the result of a physical change or change in the method of operation in the unit.
(iv) Reasonable Further Progress (RFP)
(I) Timing and exemptions:
I. By the time that the proposed source or modification is to commence operation, sufficient offsetting emissions reductions shall be in effect such that the total emissions from existing sources in the area, from new or modified sources which are not major stationary sources, 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 (when considered together with the plan provisions required under the Clean Air Act Title I Part D Subpart 1 Section 172 (as amended November 15, 1990)) reasonable further progress; or II. In the case of a new major stationary source or major modification which is located in a zone (within the nonattainment area) identified by the Administrator of EPA, in consultation with the Secretary of Housing and Urban Development, as a zone to which economic development should be targeted, the emissions of such air contaminant resulting from the proposed new or modified major stationary source will not cause or contribute to emissions levels which exceed the allowance permitted as contained in the State’s approved Implementation Plan pursuant to the Clean Air Act Title I Part D Subpart 1 Section 172(c)(4) (as amended November 15,1990).
(v) Emissions Offsets. In meeting the emission offset requirements of this paragraph, the ratio of total actual emissions reductions to the emissions increase shall be at least 1:1 unless an alternative ratio is provided for the applicable nonattainment area in items (III), (IV) and (XIV) of this subpart.
(I) Prior to the issuance of a permit under this subpart, legally enforceable emission offsets shall be obtained from the same source or other sources in the same non-attainment area, except that such emissions reduction may be obtained from a source in another non- attainment area if:
I. The other area has an equal or higher non-attainment classification than the area in which the source is located; and, II. Emissions from such other area contribute to a violation of an air quality standard in the non-attainment area in which the proposed new or modified source would construct.
(III) In meeting the requirements of item (v)(II) of the subpart for ozone non-attainment areas that are subject to subpart 2, part D, title I of the Clean Air Act, the ratio of total actual emission reductions of Volatile Organic Compounds and/or Nitrogen Oxides to the net emissions increase of Volatile Organic Compounds and/or Nitrogen Oxides shall be as follows:
I. In any Marginal non-attainment area for ozone - at least 1.1 to 1; II. In any Moderate non-attainment area for ozone - at least 1.15 to 1; III. In any Serious non-attainment area for ozone - at least 1.2 to 1; IV. In any Severe non-attainment area for ozone - at least 1.3 to 1;
V. In any Extreme non-attainment area for ozone - at least 1.5 to
1.
(V) I. Emissions reductions achieved by shutting down an existing emission unit or curtailing production or operating hours may be generally credited for offsets if they meet the requirements in sections I.A. and B. of this item.
A. Such reductions are surplus, permanent, quantifiable, and federally enforceable.
B. The shutdown or curtailment occurred after the last day of the base year for the SIP planning process. For purposes of this paragraph, the Technical Secretary may choose to consider a prior shutdown or curtailment to have occurred after the last day of the base year if the projected emissions inventory used to develop the attainment demonstration explicitly includes the emissions from such previously shutdown or curtailed emission units. However, in no event may credit be given for shutdowns that occurred before August 7,
1977. II. Emissions reductions achieved by shutting down an existing emissions unit or curtailing production or operating hours and that do not meet the requirements in section I.B. of this item may be generally credited only if:
A. The shutdown or curtailment occurred on or after the date the construction permit application is filed; or
B. The applicant can establish that the proposed new emissions unit is a replacement for the shutdown or curtailed emissions unit, and the emissions reductions achieved by the shutdown or curtailment met the requirements of section I.A. of this item.
(VIII) Procedures relating to the permissible locations of offsetting emissions shall be followed which are at least as stringent as those set out in 40 C.F.R. Part 51, Appendix S, Section IV.D. (July 1, 1993).
(XIV) Within an ozone non-attainment area that is subject to subpart 1., part D, title I of the Clean Air Act (but is not subject to subpart 2., part D, title I of the Act, including 8-hour ozone non-attainment areas subject to 40 C.F.R. 51.902(b)), the ratio of total actual emissions reductions of either volatile organic compound or nitrogen oxides to the emissions increase of either volatile organic compounds or nitrogen oxides shall be at least 1:1.
(vii) The Technical Secretary shall not issue a permit to any major stationary source or major modification locating in or significantly impacting a nonattainment area unless all other sources owned or operated by the applicant (or any entity controlling, controlled by, or under common control with the applicant) anywhere in the State are in compliance or on an approved compliance schedule.
(viii) If the nonattainment area is designated as attainment by the EPA Administrator between the date construction is approved under this subparagraph and before the new source start up date, the source has the option of applying for a new construction permit and relief from the requirements of this subparagraph.
(xii) Except as otherwise provided in subparts 2.(xviii) and 2.(xix) of this subparagraph, and consistent with the definition of major modification contained in item 1.(v)(I) of this subparagraph, a project is a major modification for a regulated NSR pollutant if it causes two types of emissions increases—a significant emissions increase (as defined in subpart 1.(xxxix) of this subparagraph), and a significant net emissions increase (as defined in subparts 1.(vi) and 1.(x) of this subparagraph). The project is not a major modification if it does not cause a significant emissions increase. If the project causes a significant emissions increase, then the project is a major modification only if it also results in a significant net emissions increase.
(xvi) Reserved.
(xix) Reserved.
(i) The Technical Secretary shall provide opportunity for public comment on information submitted by owners and operators. The public information must include the agency’s analysis of the effect of construction or modification on ambient air quality, including the agency’s proposed approval or disapproval. The opportunity for public comment shall include, as a minimum
(iii) The Technical Secretary shall provide a copy of the notice required by subpart (i) of this part to the Administrator through the appropriate Regional Office, and to all other State and local air pollution control agencies having jurisdiction in the region in which such new or modified installation will be located. The notice also must be sent to any other agency in the region having responsibility for implementing the procedures required under this part. For lead, a copy of the notice is required for all point sources. The definition of point source for lead is given in 40 C.F.R. Part 51.100(k)(2). (July 1, 1993).
(i) Applicability.
(III) Any physical change in or change in the method of operation of a major stationary source that maintains its total source-wide emissions below the PAL level, meets the requirements in subparts 10.(i) through (xv) of this subparagraph, and complies with the PAL permit:
I. Is not a major modification for the PAL pollutant; II. Does not have to be approved through the nonattainment major NSR program; and III. Is not subject to the provisions in subpart 2.(ix) of this subparagraph (restrictions on relaxing enforceable emission limitations that the major stationary source used to avoid applicability of the nonattainment major NSR program).
(ii) Definitions. When a term is not defined in these paragraphs, it shall have the meaning given in part 1. of this subparagraph or in the Federal Clean Air Act.
(II) Allowable emissions means “allowable emissions” as defined in subpart 1.(xi) of this subparagraph, except as this definition is modified according to subitems 10.(ii)(II)I. through II. of this subparagraph.
I. The allowable emissions for any emissions unit shall be calculated considering any emission limitations that are enforceable as a practical matter on the emissions unit’s potential to emit. II. An emissions unit’s potential to emit shall be determined using the definition in subpart 1.(iii) of this subparagraph, except that the words “or enforceable as a practical matter” should be added after “federally enforceable.”
(III) Small emissions unit means an emissions unit that emits or has the potential to emit the PAL pollutant in an amount less than the significant level for that PAL pollutant, as defined in subpart 1.(x) of this subparagraph or in the Federal Clean Air Act, whichever is lower.
(IV) Major emissions unit means:
I. Any emissions unit that emits or has the potential to emit 100 tons per year or more of the PAL pollutant in an attainment area; or II. Any emissions unit that emits or has the potential to emit the PAL pollutant in an amount that is equal to or greater than the major source threshold for the PAL pollutant as defined by the Federal Clean Air Act for nonattainment areas.
(VIII) PAL major modification means, notwithstanding subparts 1.(v) and 1.(vi) of this subparagraph (the definitions for major modification and net emissions increase), any physical change in or change in the method of operation of the PAL source that causes it to emit the PAL pollutant at a level equal to or greater than the PAL.
(iii) Permit application requirements. As part of a permit application requesting a PAL, the owner or operator of a major stationary source shall submit the following information to the Technical Secretary for approval:
(iv) General requirements for establishing PALs.
(I) The Technical Secretary may establish a PAL at a major stationary source, provided that at a minimum, the requirements in subitems 10.(iv)(I)I. through VII. of this subparagraph are met.
I. The PAL shall impose an annual emission limitation in tons per year, that is enforceable as a practical matter, for the entire major stationary source. For each month during the PAL effective period after the first 12 months of establishing a PAL, the major stationary source owner or operator shall show that the sum of the monthly emissions from each emissions unit under the PAL for the previous 12 consecutive months is less than the PAL (a 12-month average, rolled monthly). For each month during the first 11 months from the PAL effective date, the major stationary source owner or operator shall show that the sum of the preceding monthly emissions from the PAL effective date for each emissions unit under the PAL is less than the PAL. II. The PAL shall be established in a PAL permit that meets the public participation requirements in subpart 10.(v) of this subparagraph. III. The PAL permit shall contain all the requirements of subpart 10.(vii) of this subparagraph. IV. The PAL shall include fugitive emissions, to the extent quantifiable, from all emissions units that emit or have the potential to emit the PAL pollutant at the major stationary source.
V. Each PAL shall regulate emissions of only one pollutant. VI. Each PAL shall have a PAL effective period of 10 years. VII. The owner or operator of the major stationary source with a PAL shall comply with the monitoring, recordkeeping, and reporting requirements provided in subparts 10.(xii) through
(xiv) of this subparagraph for each emissions unit under the PAL through the PAL effective period.