401 KAR 51:017. Prevention of significant deterioration of air quality

Link to law: http://www.lrc.ky.gov/kar/401/051/017.htm
Published: 2015

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      401 KAR 51:017. Prevention of

significant deterioration of air quality.

 

      RELATES

TO: KRS 224.10-100, 40 C.F.R. 51 Subpart I, Appendix S, sec. IV, Part 51,

Appendix W, 51.166, 52.21, 52.26, 53, 58 Appendix A, 60, 61, 63, 70.6, 81.318,

81 Subpart D, 42 U.S.C. 7401-7671q

      STATUTORY

AUTHORITY: KRS 224.10-100(5), 40 C.F.R. 51.166, 42 U.S.C. 7401-7671q

      NECESSITY,

FUNCTION, AND CONFORMITY: KRS 224.10-100(5) requires the cabinet to promulgate

administrative regulations for the prevention, abatement, and control of air

pollution. This administrative regulation provides for the prevention of

significant deterioration of ambient air quality. The provisions of this

administrative regulation are not more stringent than the corresponding federal

requirements.

 

      Section

1. Applicability. (1) This administrative regulation shall apply to the construction of a new major stationary

source or a project at an existing major stationary source that commences construction

after September 22, 1982, and locates in an area designated attainment or

unclassifiable under 42 U.S.C. 7407(d)(1)(A)(ii) and (iii).

      (2)

Except as otherwise provided in this administrative regulation, the provisions

of Sections 8 to 16 of this administrative regulation shall apply to the

construction of a new major stationary source or a major modification of an

existing major stationary source.

      (3)

The owner or operator of a new major stationary source or major modification,

which is subject to the requirements of Sections 8 to 16 of this administrative

regulation, shall not begin actual construction without a proposed permit or

proposed permit revision issued under 401 KAR 52:020 stating that the major

stationary source or major modification shall meet those requirements.

      (4)

Applicability tests for projects. Except as provided in subsection (5) of this

section, a project shall be a major modification for a regulated NSR pollutant

only if the project causes a significant emissions increase and a significant

net emissions increase as provided in paragraphs (a) and (b) of this

subsection.

      (a)

Prior to beginning actual construction, the owner or operator shall first

determine if a significant emissions increase will occur for the applicable

type of unit being constructed according to subparagraphs 1 to 3 of this

paragraph.

      1.

Actual-to-projected actual applicability test for projects that only involve

existing emissions units. A significant emissions increase of a regulated NSR

pollutant shall be projected to occur if the sum of the difference between the

projected actual emissions and the baseline actual emissions for each existing

emissions unit equals or exceeds the significant amount for that pollutant.

      2.

Actual-to-potential test for projects that involve only construction of new

emissions units. A significant emissions increase of a regulated NSR pollutant

shall be projected to occur if the sum of the potential to emit from each new

emissions unit following completion of the project equals or exceeds the

significant amount for that pollutant.

      3.

Hybrid test for projects that involve multiple types of emissions units. A

significant emissions increase of a regulated NSR pollutant shall be projected

to occur if the sum of the emissions increases for each emissions unit, using a

method specified in subparagraphs 1 and 2 of this paragraph as applicable for

each emissions unit, equals or exceeds the significant amount for that pollutant.

      (b)

Prior to beginning actual construction and after completing the applicable

procedure established in paragraph (a) of the subsection, the owner or operator

shall determine for each regulated NSR pollutant if a significant net emissions

increase will occur pursuant to 401 KAR 51:001, Section 1(144) and (218).

      (5)

For a plant-wide applicability limit (PAL) for a regulated NSR pollutant at a

major stationary source, the owner or operator of the major stationary source

shall comply with the applicable requirements of Section 20 of this

administrative regulation.

 

      Section

2. Ambient Air Increments. (1) In areas designated as Class I or II, increases

in pollutant concentration over the baseline concentration shall be limited to

the following levels:



Pollutant





Maximum

Allowable Increase

(Micrograms

per cubic meter)







Class

I







Particulate

Matter:







PM2.5,

annual arithmetic mean





1







PM2.5,

24-hour maximum





2







PM10,

annual arithmetic mean





4







PM10,

24-hour maximum





8







Sulfur

Dioxide:







Annual

arithmetic mean





2







24-hour

maximum





5







3-hour

maximum





25







Nitrogen

Dioxide:







Annual

arithmetic mean





2.5







Class

II







Particulate

Matter:







PM2.5,

annual arithmetic mean





4







PM2.5,

24-hour maximum





9







PM10,

annual arithmetic mean





17







PM10,

24-hour maximum





30







Sulfur

Dioxide:







Annual

arithmetic mean





20







24-hour

maximum





91







3-hour

maximum





512







Nitrogen

Dioxide:







Annual

arithmetic mean





25







      (2)

For any period other than an annual period, the applicable maximum allowable

increase may be exceeded during one (1) such period per year at any one (1)

location.

 

      Section

3. Ambient Air Ceilings. The concentration of a regulated NSR pollutant shall

not exceed the concentration allowed under the national secondary ambient air

quality standard or under the national primary ambient air quality standard,

whichever concentration is lower for the pollutant for a period of exposure.

 

      Section

4. Restrictions on Area Classifications. (1) The following areas, which were in

existence on August 7, 1977, shall be Class I areas and shall not be

redesignated:

      (a)

International parks;

      (b)

National wilderness areas and national memorial parks that exceed 5,000 acres

in size; and

      (c)

National parks that exceed 6,000 acres in size.

      (2)

Any other area, unless otherwise specified in the legislation creating the

area, shall be designated Class II but may be redesignated as provided in 40

C.F.R. 51.166(g).

      (3)

The visibility protection requirements of this administrative regulation shall

apply only to sources that may impact a mandatory Class I federal area.

      (4)

The following areas may be redesignated only as Class I or II:

      (a)

An area that as of August 7, 1977, exceeded 10,000 acres in size and was a

national monument, a national primitive area, a national preserve, a national

recreational area, a national wild and scenic river, a national wildlife

refuge, a national lakeshore or seashore; and

      (b)

A national park or national wilderness area established after August 7, 1977,

which exceeds 10,000 acres in size.

 

      Section

5. Exclusions from Increment Consumption. (1) Pursuant to notice and

opportunity for at least one (1) public hearing to be held in accordance with

procedures established in 401 KAR 52:100, the cabinet may exclude the following

concentrations in determining compliance with a maximum allowable increase:

      (a)

Concentrations attributable to the increase in emissions from stationary

sources that have converted from the use of petroleum products, natural gas, or

both by reason of an order in effect under a federal statute or regulation over

the emissions from these sources before the effective date of the order;

      (b)

Concentrations attributable to the increase in emissions from sources that have

converted from using natural gas by reason of a natural gas curtailment plan in

effect pursuant to a federal statute over the emissions from those sources

before the effective date of the plan;

      (c)

Concentrations of particulate matter attributable to the increase in emissions

from construction or other temporary emission-related activities of new or

modified sources; and

      (d)

Concentrations attributable to the temporary increase in emissions of sulfur

dioxide, particulate matter, or nitrogen oxides from stationary sources

affected by plan revisions approved by the Administrator of the U.S. EPA as

meeting the criteria established in subsection (3) of this section.

      (2)(a)

Exclusion of concentrations shall not apply more than five (5) years after the effective

date of the order to which subsection (1)(a) of this section refers or the

curtailment plan to which subsection (1)(b) of this section refers, whichever

is applicable.

      (b)

If both an order and curtailment plan are applicable, an exclusion shall not

apply more than five (5) years after the later of the two (2) effective dates.

      (3)

For excluding concentrations pursuant to subsection (1)(d) of this section:

      (a)

The time period over which the temporary emissions increase of sulfur dioxide,

particulate matter, or nitrogen oxides would occur shall be specified and shall

not exceed two (2) years in duration unless a longer time is approved by the

U.S. EPA;

      (b)

The time period for excluding certain contributions in accordance with

paragraph (a) of this subsection shall not be renewable;

      (c)

An emissions increase from a stationary source shall not occur that will:

      1.

Impact a Class I area or an area in which an applicable increment is known to

be violated; or

      2.

Cause or contribute to the violation of a national ambient air quality

standard; and

      (d)

Limitations shall be in effect at the end of the time period established in

paragraph (a) of this subsection, which ensure that the emissions levels from

stationary sources affected by the SIP revision shall not exceed the levels

occurring from those sources before the revision was approved.

 

      Section

6. Stack Heights. (1) The degree of emissions limitation required for control

of an air pollutant under this administrative regulation shall not be affected

by:

      (a)

So much of the stack height of a source as exceeds good engineering practice;

or

      (b)

Another dispersion technique.

      (2)

Subsection (1) of this section shall not apply to stack heights in existence

before December 31, 1970, or to dispersion techniques implemented before then.

 

      Section

7. Exemptions. (1) Sections 8 to16 of this administrative regulation shall not

apply to a particular major stationary source or major modification, if:

      (a)

The owner or operator:

      1.

Obtained the necessary federal, state, and local preconstruction approval

effective before September 22, 1982;

      2.

Commenced construction before September 22, 1982; and

      3.

Did not discontinue construction for a period of eighteen (18) months or more.

      (b)1.

The major stationary source is a nonprofit health institution, a nonprofit

educational institution, or a major modification at such an institution; and

      2.

The Governor of the Commonwealth of Kentucky requests that it be exempt from

those requirements.

      (c)

The source or modification is a major stationary source or major modification

only if fugitive emissions, to the extent quantifiable, are considered in

calculating the potential to emit of the stationary source or modification and

the source does not belong to any of the following categories:

      1.

Coal cleaning plants with thermal dryers;

      2.

Kraft pulp mills;

      3.

Portland cement plants;

      4.

Primary zinc smelters;

      5.

Iron and steel mills;

      6.

Primary aluminum ore reduction plants;

      7.

Primary copper smelters;

      8.

Municipal incinerators capable of charging more than 250 tons of refuse per

day;

      9.

Hydrofluoric, sulfuric, or nitric acid plants;

      10.

Petroleum refineries;

      11.

Lime plants;

      12.

Phosphate rock processing plants;

      13.

Coke oven batteries;

      14.

Sulfur recovery plants;

      15.

Carbon black plants, furnace process;

      16.

Primary lead smelters;

      17.

Fuel conversion plants;

      18.

Sintering plants;

      19.

Secondary metal production plants;

      20.

Chemical process plants, except ethanol production facilities producing ethanol

by natural fermentation under the North American Industry Classification System

(NAICS) codes 325193 or 312140;

      21.

Fossil-fuel boilers, or combination of fossil-fuel boilers, totaling more than

250 million BTUs per hour heat input;

      22.

Petroleum storage and transfer units with a total storage capacity exceeding

300,000 barrels;

      23.

Taconite ore processing plants;

      24.

Glass fiber processing plants;

      25.

Charcoal production plants;

      26.

Fossil fuel-fired steam electric plants of more than 250 million BTUs per hour

heat input; or

      27.

Another stationary source category that, as of August 7, 1980, is being

regulated under 42 U.S.C. 7411 or 7412.

      (d)

The source or modification is a portable stationary source that has previously

received a permit under this administrative regulation; and

      1.

The owner or operator proposes to relocate the source, and the emissions of the

source at the new location will be temporary;

      2.

The emissions from the source will not exceed its allowable emissions;

      3.

The emissions from the source will not impact a Class I area or an area where

an applicable increment is known to be violated; and

      4.a.

Reasonable notice is given to the cabinet prior to the relocation identifying

the proposed new location and the probable duration of operation at the new

location.

      b.

Notice shall be given to the cabinet not less than ten (10) days in advance of

the proposed relocation unless a different time duration is previously approved

by the cabinet pursuant to this subsection.

      (e)

The source or modification was not subject to this administrative regulation

with respect to particulate matter requirements in effect before July 31, 1987,

and the owner or operator:

      1.

Obtained all final federal, state, and local preconstruction approvals or

permits necessary under the applicable SIP before July 31, 1987;

      2.

Commenced construction within eighteen (18) months after July 31, 1987; and

      3.

Did not discontinue construction for a period of eighteen (18) months or more

and completed construction within a reasonable period of time.

      (f)1.

The source or modification was subject to this administrative regulation for

particulate matter requirements in effect before July 31, 1987, and the owner

or operator submitted an application for a permit under the applicable permit

program before that date; and

      2.

The cabinet subsequently determined that the application as submitted was

complete with respect to the particulate matter requirements then in effect.

      (2)

Sections 8 to 16 of this administrative regulation shall not apply to a major

stationary source or major modification for a particular pollutant if the owner

or operator demonstrates that, for that pollutant, the source or modification

is located in an area designated as nonattainment pursuant to 42 U.S.C.

7407(d)(1)(A)(i).

      (3)

Sections 9,11, and 13 of this administrative regulation shall not apply to a

proposed major stationary source or major modification for a particular

pollutant, if the allowable emissions of that pollutant from the source, or the

net emissions increase of that pollutant from a modification:

      (a)

Will not impact a Class I area or an area where an applicable increment is

known to be violated; and

      (b)

Will be temporary.

      (4)

Sections 9, 11, and 13 of this administrative regulation, as applicable to a

maximum allowable increase for a Class II area, shall not apply to a major

modification at a stationary source that was in existence on March 1, 1978, if

the net increase in allowable emissions of each regulated NSR pollutant from

the modification after the application of BACT will be less than fifty (50)

tons per year.

      (5)

The cabinet may exempt a proposed major stationary source or major modification

from the monitoring requirements of Section 11 of this administrative

regulation for a particular pollutant, if:

      (a)

The emissions increase of the pollutant from the new source or the net

emissions increase of the pollutant from the modification will cause air

quality impacts in an area, which are less than the amounts listed in the

following table; or



Pollutant





Air

Quality Level





Averaging

Time







Carbon

monoxide





575

μg/m3





8-hour

average







Nitrogen

dioxide





14

μg/m3





annual

average







PM2.5





4

μg/m3





24-hour

average







PM10





10

μg/m3





24-hour

average







Sulfur

dioxide





13

μg/m3





24-hour

average







Ozone





A

de minimis air quality level is not provided for ozone. However, a net increase

of 100 tons per year or more of volatile organic compounds or nitrogen oxides

subject to this administrative regulation shall be required to perform an

ambient impact analysis including the gathering of ambient air quality data.







Lead





0.1

μg/m3





3-month

average







Fluorides





0.25

μg/m3





24-hour

average







Hydrogen

sulfide





0.2

μg/m3





1-hour

average







Total

reduced sulfur





10

μg/m3





1-hour

average







Reduced

sulfur compounds





10

μg/m3





1-hour

average















      (b)

The concentrations of the pollutant in the area that the source or modification

will affect are less than the concentrations listed in the table in paragraph

(a) of this subsection, or the pollutant is not listed in the table.

      (6)

Permitting requirements equivalent to Section 9(2) of this administrative

regulation shall not apply to a stationary source or modification for a maximum

allowable increase for nitrogen oxides, if:

      (a)

The owner or operator of the source or modification submitted an application

for a permit or permit revision under the applicable permit program before the

date on which the provisions embodying the maximum allowable increase took

effect in the Kentucky SIP; and

      (b)

The cabinet subsequently determined that the application as submitted before

that date was complete.

      (7)

Permitting requirements equivalent to Section 10(2) of this administrative

regulation shall not apply to a stationary source or modification for a maximum

allowable increase for PM10, if:

      (a)

The owner or operator of the source or modification submitted an application

for a permit under the applicable permit program before the provisions

embodying the maximum allowable increases for PM10 took effect as

part of Kentucky's SIP; and

      (b)

The cabinet subsequently determined that the application as submitted before

that date was complete.

      (8)(a)

The cabinet may determine that the requirements for air quality monitoring of

PM10 in Section 11 of this administrative regulation shall not apply

to a particular source or modification, if:

      1.

The owner or operator of the source or modification submitted an application

for a permit under this section on or before June 1, 1988; and

      2.

The cabinet subsequently determines that the application as submitted before

that date was complete, except for the requirements for monitoring particulate

matter specified in Section 11 of this administrative regulation.

      (b)

The requirements for air quality monitoring of PM10 in Section 11 of

this administrative regulation shall apply to a particular source or

modification if the owner or operator of the source or modification submitted

an application for a permit under 40 C.F.R. 52.21 or this administrative

regulation after June 1, 1988, and not later than December 1, 1988.

      1.

The data shall have been gathered over at least the period from February 1,

1988, to the date the application becomes complete in accordance with Section

11 of this administrative regulation; and

      2.

If the cabinet determines that a complete and adequate analysis can be

accomplished with monitoring data over a shorter period, which may not to be

less than four (4) months, the data that Section 11 of this administrative

regulation requires shall have been gathered over that shorter period.

      (9)

If the owner or operator of the source or modification submitted an application

for a permit under 40 C.F.R. 52.21 or this administrative regulation before the

date the provisions embodying the maximum allowable increases for PM10

took effect and the cabinet subsequently determined that the application as

submitted before that date was complete, the requirements of Section 9(2) of

this administrative regulation shall:

      (a)

Not apply to a stationary source or modification for a maximum allowable

increase for PM10; and

      (b)

Apply for the maximum allowable increases for TSP as in effect on the day the

application was submitted.

 

      Section

8. Control Technology Review. (1) A major stationary source or major

modification shall meet each applicable emissions limitation under the Kentucky

SIP and each applicable emissions standard and standard of performance pursuant

to 40 C.F.R. Parts 60 and 61.

      (2)

A new major stationary source shall apply BACT for each regulated NSR pollutant

for which the source has the potential to emit in significant amounts.

      (3)

A major modification shall apply BACT:

      (a)

For each regulated NSR pollutant that results in a significant net emissions

increase at the source; and

      (b)

For each proposed emissions unit at which a net emissions increase in the

pollutant occurs as a result of a physical change or change in the method of

operation of the unit.

      (4)

For phased construction projects:

      (a)

The cabinet shall review and modify, as appropriate, the BACT determination at

the latest reasonable time occurring not later than eighteen (18) months prior

to commencement of construction of each independent phase of the project; and

      (b)

If requested by the cabinet, the owner or operator of the applicable stationary

source shall demonstrate the adequacy of a previous BACT determination for the

source.

 

      Section

9. Source Impact Analysis. (1) The owner or operator of the proposed source or

modification shall demonstrate that allowable emissions increases from the

proposed source or modification, in conjunction with all other applicable

emissions increases or reductions, including secondary emissions, shall not

cause or contribute to air pollution in violation of:

      (a)

A national ambient air quality standard in an air quality control region; or

      (b)

An applicable maximum allowable increase over the baseline concentration in any

area.

      (2)

For purposes of PM2.5, the demonstration pursuant to subsection (1)

of this section is deemed to have been made if the emissions increase from the

new stationary source alone or from the modification alone would cause, in all

areas, an air quality impact less than the amounts listed in the following

table.



Pollutant





Averaging

Time





Class

I area





Class

II area







PM2.5





Annual





0.06

μg/m3





0.3

μg/m3







PM2.5





24-hour





0.07

μg/m3





1.2

μg/m3







 

      Section

10. Air Quality Models. (1) Estimates of ambient concentrations shall be based

on the applicable air quality models, databases, and other requirements

specified in 40 C.F.R. Part 51, Appendix W, "Guideline on Air Quality

Models" Appendix A.

      (2)

If an air quality model specified in 40 C.F.R. Part 51, Appendix W, is

inappropriate, the model may be modified or another model substituted.

      (a)

The use of a modified or substitute model shall be:

      1.

Subject to notice and opportunity for public comment under 401 KAR 52:100; and

      2.

Approved in writing by the U.S. EPA pursuant to 40 C.F.R. 51.166(1).

      (b)

Methods similar to those outlined in the "Workbook for the Comparison of

Air Quality Models," specified in 401 KAR 50:040, Section 1(3), shall be

used to determine the comparability of air quality models.

 

      Section

11. Air Quality Analysis. (1) Preapplication analysis.

      (a)

An application for a permit or permit revision under 401 KAR 52:020 and this

administrative regulation shall contain an analysis of ambient air quality in

the area that the major stationary source or major modification will affect for

each of the following:

      1.

For a source, each pollutant that the source will have the potential to emit in

a significant amount;

      2.

For a modification, each pollutant that the modification will result in a

significant net emissions increase.

      (b)

For a pollutant that does not have a national ambient air quality standard, the

analysis shall contain air quality monitoring data the cabinet determines

necessary to assess ambient air quality for that pollutant in an area that the

emissions of that pollutant will affect.

      (c)

For pollutants, other than nonmethane hydrocarbons, for which a standard

exists, the analysis shall contain continuous air quality monitoring data

gathered to determine if emissions of that pollutant will cause or contribute

to a violation of the standard or a maximum allowable increase.

      (d)1.

The required continuous air quality monitoring data shall have been gathered

over a period of at least one (1) year and shall represent at least the year

preceding receipt of the application.

      2.

If the cabinet determines that a complete and adequate analysis may be

accomplished with monitoring data gathered over a period shorter than one (1)

year, that period shall be not less than four (4) months.

      (e)

For analysis of volatile organic compounds, the owner or operator of a proposed

major stationary source or major modification who satisfies all conditions of

40 C.F.R. Part 51, Appendix S, section IV may provide postapproval monitoring

data for ozone instead of providing preconstruction data as required in this

section.

      (f)

For air quality monitoring of PM10 under Section 7(8)(a) and (b) of

this administrative regulation, the owner or operator of the source or major

modification shall use a monitoring method approved by the cabinet pursuant to

40 C.F.R. Part 53 and shall estimate the ambient concentrations of PM10

using the data collected by that approved monitoring method in accordance with

estimating procedures approved by the cabinet pursuant to 40 C.F.R. Part 58, Appendix

A.

      (2)

Postconstruction monitoring. After construction of a major stationary source or

major modification, the owner or operator shall conduct ambient monitoring that

the cabinet determines is necessary to determine the effect emissions from the

stationary source or modification may have, or are having, on air quality in an

area.

      (3)

Operation of monitoring stations. During the operation of air quality

monitoring stations, the owner or operator of a major stationary source or

major modification shall meet the requirements of 40 C.F.R. Part 58, Appendix A

to satisfy the air quality analysis requirements of this section.

 

      Section

12. Source Information. The owner or operator of a proposed source or

modification shall submit to the cabinet all information necessary to perform

an analysis or make a determination required under this administrative

regulation. (1) The information shall include:

      (a)

A description of the nature, location, design capacity, and typical operating

schedule of the source or modification, including specifications and drawings

showing its design and plant layout;

      (b)

A detailed schedule for construction of the source or modification; and

      (c)

A detailed description of the system of continuous emissions reduction planned

for the source or modification, emissions estimates, and any information

necessary to determine that BACT will be applied.

      (2)

Upon request of the cabinet, the owner or operator shall also provide

information on:

      (a)

The air quality impact of the source or modification, including meteorological

and topographical data necessary to estimate the impact; and

      (b)

The air quality impacts and the nature and extent of general commercial,

residential, industrial, and other growth that has occurred since August 7,

1977, in the area the source or modification will affect.

 

      Section

13. Additional Impact Analysis. (1) The owner or operator shall provide an

analysis of the impairment to visibility, soils, and vegetation that will occur

as a result of:

      (a)

The source or modification; and

      (b)

General commercial, residential, industrial, and other growth associated with

the source or modification.

      (2)

The owner or operator shall not be required to provide an analysis of the

impact on vegetation not having significant commercial or recreational value.

      (3)

The owner or operator shall provide an analysis of 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.

      (4)

Visibility monitoring.

      (a)

If the cabinet requires monitoring of visibility in a Class I area impacted by

the proposed new stationary source or major modification, the monitoring shall

be performed using:

      1.

Human observations;

      2.

Teleradiometers;

      3.

Photographic cameras;

      4.

Nephelometers;

      5.

Fine particulate monitors; or

      6.

Other U.S. EPA-approved methods.

      (b)

The method selected shall be determined on a case-by-case basis by the cabinet

pursuant to 40 C.F.R. 51.166.

      (c)

Visibility monitoring required by the cabinet in a Class I area shall be

approved by the federal land manager.

      (d)

Data obtained from visibility monitoring shall be made available to the

cabinet, the U.S. EPA, and the federal land manager, upon request.

 

      Section

14. Sources Impacting Class I Areas; Additional Requirements. (1) Notice to

U.S. EPA and federal land managers. The cabinet shall provide;

      (a)

Written notice to the U.S. EPA, the federal land manager, and the federal

official charged with direct responsibility for management of lands within a

Class I area of a permit application for a proposed major stationary source or

major modification that may affect the Class I area.

      (b)

Notice promptly after receiving the permit application. The notice shall:

      1.

Include a copy of all information relevant to the permit application;

      2.

Be given within thirty (30) days of receipt and at least sixty (60) days prior

to the public hearing on the application for a permit to construct; and

      3.

Include an analysis of the proposed source's anticipated impacts on visibility

in the Class I area.

      (c)

The cabinet shall also provide the federal land manager and other federal officials

with a copy of the preliminary determination and shall make available to them

the materials used in making that determination, promptly after the cabinet

makes it. The cabinet shall also notify all affected federal land managers

within thirty (30) days of receipt of an advanced notification of the permit

application.

      (2)

Federal land manager. The federal land manager and the federal official charged

with direct responsibility for management of lands located in a Class I area

shall have an affirmative responsibility to protect visibility and other air

quality related values of the lands and to consider, in consultation with the

cabinet, if a proposed source or modification will have an adverse impact on

those values.

      (3)

Visibility analysis.

      (a)

The cabinet shall consider an analysis performed by the federal land manager,

which is provided within thirty (30) days of the notice and analysis required

by subsection (1) of this section, which shows that a proposed new major

stationary source or major modification may have an adverse impact on

visibility in a Class I area.

      (b)

If the cabinet finds the analysis does not demonstrate to the cabinet's

satisfaction that an adverse impact on visibility will result in the Class I

area, the cabinet shall, in the public notice required in 401 KAR 52:100,

either explain that decision or give notice as to where the explanation may be

obtained.

      (4)

Denial; impact on air quality related values.

      (a)

The federal land manager of lands located in a Class I area may demonstrate to

the cabinet that the emissions from a proposed source or modification will have

an adverse impact on the visibility and other air quality related values of

those lands, even though the change in air quality resulting from emissions

from the proposed source or modification will not cause or contribute to

concentrations that will exceed the maximum allowable increases for a Class I

area.

      (b)

If the cabinet concurs with the demonstration specified in paragraph (a) of

this subsection, the cabinet shall not issue the permit or permit revision.

      (5)

Class I variances.

      (a)

The owner or operator of a proposed source or modification may demonstrate to

the federal land manager that the emissions from the source or modification

will not have adverse impact on the visibility or other air quality related

values of lands located in a Class I area, even though the change in air

quality resulting from emissions from the source or modification will cause or

contribute to concentrations that will exceed the maximum allowable increases

for a Class I area as specified in Section 2(1) of this administrative regulation.

      (b)

If limitations are necessary, the cabinet may issue the permit or permit

revision with emissions limitations necessary to assure that emissions of sulfur

dioxide, PM2.5, PM10, and nitrogen oxides will not exceed

the maximum allowable increases over minor source baseline concentration for

the pollutants as specified in 40 C.F.R. 51.166(p)(4), as published on July 1,

2012, if:

      1.

The federal land manager concurs with the demonstration specified in paragraph

(a) of this subsection and certifies accordingly; and

      2.

The other applicable requirements of this administrative regulation are met.

      (6)

Sulfur dioxide variance by governor with federal land manager's concurrence.

      (a)

The owner or operator of a proposed source or modification, which cannot be

approved under subsection (5) of this section because the source cannot be

constructed without exceeding a maximum allowable increase in sulfur dioxide

applicable to a Class I area for a period of twenty-four (24) hours or less,

may demonstrate to the Governor of the Commonwealth of Kentucky that a variance

will not adversely affect the visibility or other air quality related values of

the area.

      (b)

The governor, after consideration of the federal land manager's recommendation,

if applicable, and subject to the federal land manager's concurrence, may,

after notice and public hearing, grant a variance from the maximum allowable

increase.

      (c)

If a variance is granted, the cabinet shall issue a permit or permit revision

to the source or modification under the requirements of 401 KAR Chapter 52 if

the other applicable requirements of this administrative regulation are met.

      (7)

Variance by the governor with the President's concurrence.

      (a)

If the Governor of the Commonwealth of Kentucky recommends a variance in which

the federal land manager does not concur, the recommendations of the governor

and the federal land manager shall be transmitted to the President of the

United States of America.

      (b)

If the variance is approved by the President, the cabinet shall issue a permit

or permit revision in accordance with the requirements of 401 KAR Chapter 52,

if the other applicable requirements of this administrative regulation are met.

      (8)

Emissions limitations for presidential or gubernatorial variance. For a permit

or permit revision issued pursuant to subsections (6) or (7) of this section,

the source or modification shall comply with the emissions limitations necessary

to assure that:

      (a)

Emissions of sulfur dioxide from the source or modification shall not, during a

day on which the other applicable maximum allowable increases are exceeded,

cause or contribute to concentrations that will exceed the maximum allowable

increases over the baseline concentration as specified in the following table;

and



Maximum

Allowable Increase

      (Micrograms

per cubic meter)









Terrain

areas







Period

of Exposure





Low





High







24-hour

maximum





36





62







3-hour

maximum





130





221





      (b)

Emissions shall not cause or contribute to concentrations that exceed other

applicable maximum allowable increases for periods of exposure of twenty-four

(24) hours or less for more than a total of eighteen (18) days that are not

necessarily consecutive during an annual period.

 

      Section

15. Public Participation. The cabinet shall follow the applicable procedures of

401 KAR 52:100, 40 C.F.R. 51.166(q), and this administrative regulation in

processing applications under this administrative regulation.

 

      Section

16. Source Obligation. (1) An owner or operator of a source or modification

subject to this administrative regulation who begins actual construction after

September 22, 1982, shall construct and operate the source or modification in

accordance with the application submitted to the cabinet under this

administrative regulation and 401 KAR 52:020 or under the terms of an approval

to construct.

      (2)(a)

Approval to construct shall become invalid if construction:

      1.

Is not commenced within eighteen (18) months after receipt of the approval;

      2.

Is discontinued for a period of eighteen (18) months or more; or

      3.

Is not completed within a reasonable time.

      (b)

The cabinet may extend the eighteen (18) month period upon a satisfactory

demonstration that an extension is justified.

      1.

An extension shall not apply to the time period between construction of the

approved phases of a phased construction project; and

      2.

Each phase shall commence construction within eighteen (18) months of the

projected and approved commencement date.

      (3)

Approval to construct shall not relieve an owner or operator of the

responsibility to comply fully with 401 KAR Chapters 50 to 68 and other

requirements of local, state, or federal law.

      (4)

If a particular source or modification becomes a major stationary source or

major modification solely by virtue of a relaxation in an enforceable

limitation that was established after August 7, 1980, on the capacity of the

source or modification to emit a pollutant, Sections 8 to 16 of this

administrative regulation shall apply to the source or modification as though

construction had not yet commenced on the source or modification.

      (5)(a)

The provisions of this subsection shall apply to projects at existing emissions

units at a major stationary source other than projects at a source with a PAL,

if:

      1.

There is a reasonable possibility that a project that is not part of a major

modification may result in a significant emissions increase; and

      2.

The owner or operator elects to use the method specified in 401 KAR 51:001,

Section 1(199)(b) to calculate projected actual emissions.

      (b)

Before beginning actual construction of a project specified in paragraph (a) of

this subsection, the owner or operator shall document and maintain a record of

the following information:

      1.

A description of the project;

      2.

Identification of the emissions units for which emissions of a regulated NSR

pollutant could be affected by the project; and

      3.

A description of the applicability test used to determine that the project is

not a major modification for any regulated NSR pollutant, including:

      a.

Baseline actual emissions;

      b.

Projected actual emissions;

      c.

Amount of emissions excluded in calculating projected actual emissions and an

explanation for why that amount was excluded; and

      d.

Any applicable netting calculations.

      (c)

For a project specified in paragraph (a) of this subsection, the owner or

operator shall:

      1.

Monitor the emissions of any regulated NSR pollutant that could increase as a

result of the project and that are emitted by any emissions unit identified in

paragraph (b)2 of this subsection; and

      2.

Calculate and maintain a record of the annual emissions, in tons per year on a

calendar year basis for:

      a.

Five (5) years following resumption of regular operations after the change; or

      b.

Ten (10) years following resumption of regular operations after the change if

the project increases the design capacity or potential to emit of the regulated

NSR pollutant at the emissions unit.

      (d)

If the emissions unit is an existing EUSGU, before beginning actual

construction, the owner or operator:

      1.

Shall provide a copy of the information in paragraph (b) of this subsection to

the cabinet, but shall not be required to obtain a determination from the

cabinet before beginning actual construction; and

      2.

Shall submit a report to the cabinet within sixty (60) days after the end of

each year during which records are required to be generated under paragraph (b)

of this subsection that reports the unit's annual emissions during the calendar

year that preceded submission of the report.

      (e)1.

For an existing unit other than an EUSGU, the owner or operator shall submit a

report to the cabinet if:

      a.

The annual emissions, in tons per year, from a project identified in paragraph

(a) of this subsection exceeds the baseline actual emissions, as documented and

maintained pursuant to paragraph (b)3 of this subsection, by a significant

amount for that regulated NSR pollutant; and

      b.

The emissions differ from the preconstruction projection as documented and

maintained pursuant to paragraph (b)3 of this subsection.

      2.

The report shall be submitted within sixty (60) days after the end of the year

during which records are required to be generated under paragraph (b) of this

subsection and shall contain the following:

      a.

The name, address, and telephone number of the major stationary source;

      b.

The annual emissions as calculated pursuant to paragraph (c) of this

subsection; and

      c.

Any other information that the owner or operator wishes to include in the

report.

      (f)

The owner or operator of the source shall make the information required to be

documented and maintained under to this subsection available for review upon

request for inspection by the cabinet or the general public pursuant to 401 KAR

52:100.

 

      Section

17. Environmental Impact Statements. If a proposed source or modification is

subject to action by a federal agency that may necessitate preparation of an

environmental impact statement under 42 U.S.C. 4321 to 4370d (the National

Environmental Policy Act), review by the cabinet conducted in accordance with

this administrative regulation shall be coordinated with the broad environmental

reviews under that Act and under 42 U.S.C. 7609 to the maximum extent feasible

and reasonable.

 

      Section

18. Innovative Control Technology. (1) An owner or operator of a proposed major

stationary source or major modification may make a written request that the

cabinet approve a system of innovative control technology.

      (2)

The cabinet may, with the consent of the governors of other affected states,

determine that the source or modification may employ a system of innovative

control technology if:

      (a)

The proposed control system will not cause or contribute to an unreasonable

risk to public health, welfare, or safety in its operation or function;

      (b)

The owner or operator agrees to achieve a level of continuous emissions

reduction equivalent to that which would have been required under Section 8(2)

of this administrative regulation by a date, specified by the cabinet that is

not later than four (4) years from the time of start-up or seven (7) years from

permit issuance;

      (c)

The source or modification shall meet requirements equivalent to those in

Sections 8 and 9 of this administrative regulation based on the emissions rate

that the stationary source employing the system of innovative control

technology shall be required to meet on the date specified by the cabinet;

      (d)

The source or modification shall not before the date specified by the cabinet:

      1.

Cause or contribute to a violation of an applicable national ambient air

quality standard; or

      2.

Impact an area in which an applicable increment is known to be violated;

      (e)

Section 14 of this administrative regulation relating to Class I areas has been

satisfied for all periods during the life of the source or modification; and

      (f)

All other applicable requirements including those for public participation have

been met.

      (3)

The cabinet shall withdraw approval to employ a system of innovative control

technology if:

      (a)

The proposed system fails by the specified date to achieve the required

continuous emissions reduction rate;

      (b)

The proposed system fails before the specified date and contributes to an

unreasonable risk to public health, welfare, or safety; or

      (c)

The cabinet decides that the proposed system is unlikely to achieve the

required level of control or to protect the public health, welfare, or safety.

      (4)

If a source or modification fails to meet the required level of continuous

emissions reduction within the specified time period or the approval is

withdrawn in accordance with subsection (3) of this section, the cabinet may

allow the source or modification up to an additional three (3) years to meet

the requirement for the application of BACT through use of a demonstrated

system of control.

 

      Section

19. Permit Condition Rescission. (1)(a) An owner or operator holding a permit

for a stationary source or modification that contains conditions pursuant to

401 KAR 51:015 or 51:016E may request that the cabinet rescind the applicable

conditions.

      (b)

An owner or operator of a stationary source or modification who holds a permit

for the source or modification that was issued under this administrative

regulation as in effect on July 30, 1987, or an earlier version of this

administrative regulation, may request that the cabinet rescind the permit or a

particular portion of the permit.

      (2)

The cabinet shall rescind a permit condition if requested and if the applicant

can demonstrate to the satisfaction of the cabinet that this administrative

regulation does not apply to the source or modification or to a portion of the

source or modification.

 

      Section

20. Plant-wide Applicability Limit Provisions. The

cabinet shall only approve the use of an actuals PAL (PAL) for an existing

major stationary source if the PAL meets the requirements of this section.

      (1) General provisions.

      (a) An owner or operator may execute a project without

triggering major NSR, if the source maintains its total source-wide emissions

below the PAL level, meets the requirements in this section, and complies with

the PAL permit. If these conditions are met, a project:

      1. Shall not be considered a major modification for the PAL

pollutant;

      2. Shall not have to be approved through Kentucky's major

NSR program; and

      3. Shall not be subject to the provisions of Section 16(4)

of this administrative regulation concerning restrictions on relaxing enforceable

emission limitations that a major stationary source used to avoid applicability

of the major NSR program.

      (b) Except as provided under subparagraph (1)(a)3 of this section,

a major stationary source shall continue to comply with all applicable federal

or state requirements, emissions limitations, and work practice requirements

that were established prior to the effective date of the PAL.

      (2) Permit application requirements. The owner or operator

of a major stationary source shall submit the following information to the

cabinet for approval as part of an application for a permit or permit revision

requesting a PAL:

      (a) A list of all emissions units at the source designated

as small, significant, or major, based on their potential to emit;

      (b) Identification of the federal and state applicable

requirements, emissions limitations, and work practice requirements that apply

to each emissions unit;

      (c) Calculations of the baseline actual emissions for the

emissions units with supporting documentation, including emissions associated

with startup, shutdown, and malfunction; and

      (d) The calculation procedures the owner or operator

proposes to use to convert the monitoring system data to monthly emissions and

annual emissions based on a twelve (12) month rolling total for each month as

required by subsection (12)(a) of this section.

      (3)

Establishing a PAL. The cabinet shall establish a PAL at a major stationary

source in a federally enforceable permit pursuant to the requirements of this

section.

      (a)

The PAL shall impose an annual emissions limitation in tons per year that is

enforceable as a practical matter for the entire major stationary source.

      1. For each month during the PAL effective period after the

first twelve (12) months of establishing a PAL, the owner or operator shall

demonstrate that the sum of the monthly emissions from each emissions unit

under the PAL for the previous twelve (12) consecutive months is less than the

PAL as a twelve (12) month average, rolled monthly; and

      2. For each month during the first eleven (11) months from

the PAL effective date, the owner or operator shall demonstrate 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.

      (b)

The PAL shall be established in a PAL permit that:

      1. Meets the public participation requirements in subsection

(4) of this section; and

      2. Contains all the requirements of subsection (6) of this

section.

      (c) A 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.

      (d) Each PAL shall regulate emissions of only one (1)

pollutant.

      (e) Each PAL shall have a PAL effective period of ten (10)

years.

      (f) The owner or operator

of a major stationary source with a PAL shall comply with the monitoring, recordkeeping,

and reporting requirements of subsections (11) to (13) of this section for each

emissions unit under the PAL through the PAL effective period.

      (g) Emissions reductions of a PAL pollutant that occur

during the PAL effective period shall not be creditable as decreases for

offsets under 40 C.F.R. 51.165(a)(3)(ii), unless:

      1. The level of the PAL is reduced by the amount of the emissions

reductions; and

      2. The reductions will be creditable in the absence of the

PAL.

      (4)

Public participation requirements. PALs for existing major stationary sources

shall be established, renewed, or increased pursuant to this subsection and the

applicable procedures of 401 KAR 52:100. The cabinet shall:

      (a) Provide the public with notice of the proposed approval of

a PAL permit with at least a thirty (30) day period for submittal of public

comment; and

      (b) Address all material comments before taking final action

on a PAL permit or permit revision.

      (5) Setting the ten (10) year PAL level.

      (a) The PAL level for a major stationary source shall be the

sum of the baseline actual emissions of the PAL pollutant for each emissions

unit at the source during the chosen twenty-four (24) month period plus the

applicable significant level for the PAL pollutant under the definition for

"significant" in 401 KAR 51:001, Section 1 or under 42 U.S.C.

7401-7671q, whichever is lower.

      (b) In establishing a PAL level for a PAL pollutant, only

one (1) consecutive twenty-four (24) month period shall be used to determine

the baseline actual emissions for all existing emissions units.

      (c) A different consecutive twenty-four (24) month period

may be used for each different PAL pollutant.

      (d) Emissions associated with units that were permanently

shut down after the chosen twenty-four (24) month period shall be subtracted

from the PAL level.

      (e) Emissions from units for which actual construction began

after the twenty-four (24) month period shall be added to the PAL level in an

amount equal to the potential to emit of the units.

      (f) The cabinet shall specify a reduced PAL level in the PAL

permit to become effective on the future compliance date of any applicable

federal or state regulatory requirement that the cabinet is aware of prior to

issuance of the PAL permit.

      (6) Contents of the PAL permit. The PAL permit shall contain

the following information:

      (a) The PAL pollutant and the applicable source-wide

emissions limitation in tons per year;

      (b) The PAL permit effective date and the expiration date of

the PAL or PAL effective period;

      (c)

Specification in the PAL permit that if a major stationary source owner or

operator applies to renew a PAL under subsection (9) of this section before the

end of the PAL effective period, the PAL shall remain in effect until a revised

PAL permit is issued by the cabinet;

      (d) A requirement that emissions calculations for compliance

purposes include emissions from startups, shutdowns, and malfunctions;

      (e) A requirement that, once the PAL expires, the major

stationary source shall be subject to the requirements of subsection (8) of

this section;

      (f) The calculation procedures that the major stationary

source owner or operator shall use to convert the monitoring system data to

monthly emissions and annual emissions based on a twelve (12) month rolling total

for each month as required by subsection (12)(a) of this section;

      (g) A requirement that the major stationary source owner or

operator shall monitor all emissions units in accordance with the provisions in

subsection (12) of this section;

      (h) A requirement that the owner or operator shall retain

the records required under subsection (12) of this section on site. Records may

be retained in an electronic format;

      (i) A requirement for the owner or operator to submit the

reports required under subsection (13) of this section by the required deadlines;

and

      (j) Any requirements necessary to implement and enforce the

PAL.

      (7)

PAL effective period and reopening of a PAL permit.

      (a)

A PAL effective period shall be ten (10) years.

      (b)

The cabinet shall reopen a PAL permit to:

      1. Correct typographical or calculation errors made in

setting the PAL;

      2. Reflect a more accurate determination of emissions used

to establish the PAL;

      3. Reduce the PAL if the owner or operator of the major

stationary source creates creditable emissions reductions for use as offsets

under 40 C.F.R. 51.165(a)(3)(ii); or

      4. Revise the PAL to reflect an increase in the PAL

according to subsection (10) of this section.

      (c) The cabinet may reopen the PAL permit, during the PAL effective

period, to:

      1. Reduce the PAL to reflect newly applicable federal requirements

with compliance dates after the PAL effective date;

      2. Reduce the PAL consistent with any requirement

enforceable as a practical matter and imposed on the major stationary source

under the SIP; and

      3. Reduce the PAL if the cabinet determines that a reduction

is necessary to avoid causing or contributing to:

      a. A National Ambient Air Quality Standard (NAAQS) or PSD

increment violation; or

      b. An adverse impact on visibility or another air quality

related value 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.

      (d) All permit reopenings shall be carried out under the

public participation requirements of subsection (4) of this section except for

permit reopenings to correct typographical or calculation of errors that do not

increase the PAL level.

      (8) Expiration of a PAL. A PAL that is not renewed shall

expire at the end of the PAL effective period, and the requirements of this subsection

shall then apply.

      (a) Each emissions unit, or each group of emissions units,

that existed under the PAL shall comply with an allowable emissions limitations

under a revised permit established as follows:

      1. An owner or operator of a major stationary source using a

PAL shall submit a proposed allowable emissions limitation for each emissions

unit, or each group of emissions units, by distributing the PAL allowable

emissions for the major stationary source among each of the emissions units

that existed under the PAL.

      a. This proposal shall be submitted to the cabinet at least

six (6) months before the expiration of the PAL permit but not sooner than

eighteen (18) months before permit expiration.

      b. If the PAL has not yet been adjusted for an applicable requirement

that became effective during the PAL effective period, as required under

subsection (9)(e) of this section, distribution of allowable emissions shall be

made as if the PAL has been adjusted.

      2. The cabinet shall decide the date and procedure the owner

or operator shall use to distribute the PAL allowable emissions.

      3. The cabinet shall issue a revised permit incorporating

allowable limits for each emissions unit, or each group of emissions units, as

the cabinet determines is appropriate.

      (b) Each emissions unit shall comply with the allowable emissions

limitation on a twelve (12) month rolling basis. The cabinet may approve the

use of monitoring systems other than CEMS, CERMS, PEMS, or CPMS if the

alternate monitoring system demonstrates compliance with the allowable

emissions limitation.

      (c) The source shall continue to comply with a source-wide,

multiunit emissions cap equivalent to the level of the PAL emissions limitation

until the cabinet issues the revised permit incorporating allowable limits for

each emissions unit or each group of emissions units.

      (d) A major modification at the major stationary source

shall be subject to major NSR requirements.

      (e) The major stationary source owner or operator shall

continue to comply with any state or federal applicable requirements eliminated

by the PAL that applied during or before the PAL effective period, except for

those emissions limitations established pursuant to Section 16(4) of this

administrative regulation.

      (9) Renewal of a PAL.

      (a) Public participation requirements.

      1. The cabinet shall follow the public participation

procedures specified in subsection (4) of this section in approving a request

to renew a PAL for a major stationary source.

      2. The cabinet shall provide a written rationale for the

proposed PAL level for public review and comment.

      3. Any person may propose a PAL level for the source for consideration

by the cabinet during the public review period.

      (b) Application deadline.

      1. A major stationary source owner or operator shall submit

an application for renewal of a PAL at least six (6) months before the date of

permit expiration but not earlier than eighteen (18) months before permit

expiration.

      2. The deadline for application submittal shall ensure that

the permit shall not expire before the permit is renewed.

      3. If a complete application for renewal is submitted within

the timeframe specified in subparagraph 1 of this paragraph, the PAL shall

continue to be effective until the revised permit with the renewed PAL is

issued.

      (c) Application requirements. The application to renew a PAL

permit shall contain:

      1. The information required in subsection (2) of this

section;

      2. A proposed PAL level;

      3. The sum of the potential to emit of all emissions units

under the PAL with supporting documentation; and

      4. Any other information the owner or operator wishes the

cabinet to consider in determining the appropriate level to renew the PAL.

      (d) PAL adjustment.

      1. A PAL shall not exceed the source’s potential to emit.

The cabinet shall adjust the PAL downward if a source’s potential to emit has

declined below the PAL level.

      2. The cabinet may renew the PAL at the same level as the current

PAL if the sum of the baseline actual emissions for all emissions units at the

source plus an amount equal to the significant level is equal to or greater

than eighty (80) percent of the current PAL level, unless the sum is greater

than the source’s potential to emit.

      3. If the sum of the baseline actual emissions for all

emissions units at the source plus an amount equal to the significant level is

less than eighty (80) percent of the current PAL level, the cabinet may set the

PAL at a different level if the level is determined to be:

      a. More representative of the source’s baseline actual emissions;

or

      b. Appropriate considering the following factors:

      (i) Air quality needs;

      (ii) Advances in control technology;

      (iii) Anticipated economic growth in the area of the source;

      (iv) The cabinet’s goal of promoting voluntary emissions

reductions;

      (v) Cost effective emissions control alternatives; and

      (vi) Other factors as specifically identified by the cabinet

in its written rationale for setting the PAL level.

      4. The cabinet shall not approve a renewed PAL level higher

than the current PAL, unless the major stationary source has complied with the

provisions of subsection (10) of this section.

      (e)

The PAL shall be adjusted in conjunction with PAL permit renewal or Title V

permit renewal, whichever comes first, if:

      1.

The compliance date for a state or federal applicable requirement that applies

to the PAL source occurs during the PAL effective period; and

      2.

The cabinet has not already adjusted for the requirement.

      (10) Increasing a PAL during the PAL effective period. The

cabinet may increase a PAL emissions limitation during the PAL effective period

if the major stationary source complies with the provisions of this subsection.

      (a)

Application procedures. To request an increase in the PAL limit for a PAL major

modification, the owner or operator of the major stationary source shall submit

a complete application, which shall include:

      1.

Identification of the emissions units contributing to the increase in emissions

that cause the source's emissions to equal or exceed its PAL;

      2. Demonstration that the increased PAL, as calculated in

paragraph (c) of this subsection, exceeds the PAL; and

      a. The level of control that results from BACT equivalent controls

on each significant or major emissions unit shall be determined by conducting a

new BACT analysis with the application submittal, unless the emissions unit is

currently required to comply with a BACT or LAER requirement that was

established within the preceding ten (10) years;

      b. If an emissions unit currently complies with BACT or

LAER, the assumed control level for that emissions unit shall be equal to the

current level of BACT or LAER for that emissions unit; and

      3. A statement that the increased PAL level shall be

effective on the day any emissions unit that is part of the PAL major

modification becomes operational and begins to emit the PAL pollutant.

      (b) NSR permit and compliance requirement. The owner or operator

shall obtain a major NSR permit for all emissions units contributing to

the increase in emissions for the PAL major modification.

      1. A significant level shall not apply in deciding for which

emissions units a major NSR permit shall be obtained; and

      2. Emissions units that obtain a major NSR permit shall

comply with any emissions requirements resulting from the major NSR process,

even though the units shall also become subject to the PAL or shall continue to

be subject to the PAL.

      (c) Calculation of increased PAL. The cabinet shall

calculate the new PAL as the sum of the allowable emissions for each modified

or new emissions unit, plus the sum of the baseline actual emissions of the

significant and major emissions units assuming application of BACT equivalent

controls, plus the sum of the baseline actual emissions of the small emissions

units.

      (d) Public notice requirement. The public notice

requirements of subsection (4) of this section shall be followed during PAL

permit revision for an increased PAL level.

      (11) Monitoring requirements for PALs.

      (a) General requirements.

      1. Each PAL permit shall contain enforceable requirements

for the chosen monitoring system that accurately determines plant-wide

emissions of the PAL pollutant in terms of mass per unit of time;

      2. A monitoring system authorized for use in the PAL permit

shall be:

      a. Approved by the cabinet pursuant to this subsection; and

      b.

Based on sound science and meet generally acceptable scientific procedures for

data quality and manipulation;

      3. The data generated by a monitoring system shall meet minimum

legal requirements for admissibility in a judicial proceeding to enforce the

PAL permit;

      4. The PAL monitoring system shall employ one (1) or more of

the four (4) general monitoring approaches meeting the minimum requirements set

forth in paragraph (b) of this subsection;

      5. The cabinet may approve an alternative monitoring

approach that meets the requirements of subparagraphs 1 to 3 of this paragraph;

and

      6. Failure to use a monitoring system that meets the requirements

of this section shall render the PAL invalid.

      (b) Minimum performance requirements for approved monitoring

approaches. If conducted in accordance with the minimum requirements in

paragraphs (c) to (i) of this subsection, the following shall be acceptable

monitoring approaches:

      1. Mass balance calculations for activities using coatings

or solvents;

      2. CEMS;

      3. CPMS or PEMS; and

      4. Emission factors.

      (c)

Mass balance calculations. An owner or operator using mass balance calculations

to monitor PAL pollutant emissions from activities using coatings or solvents

shall:

      1. Provide a demonstrated means of validating the published

content of the PAL pollutant contained in or created by all materials used in

or at the emissions unit;

      2. If the PAL pollutant cannot be accounted for in the

process, assume that the emissions unit emits all of the PAL pollutant contained

in or created by any raw material or fuel used in or at the emissions unit; and

      3. If the vendor of the material or fuel from which the

pollutant originates publishes a range, use the highest value of the published

range of pollutant content to calculate the PAL pollutant emissions, unless the

cabinet determines there is site-specific data or a site-specific monitoring

program to support another pollutant content within the range.

      (d) CEMS. An owner or operator using CEMS to monitor PAL

pollutant emissions shall meet the following requirements:

      1. CEMS shall comply with applicable performance specifications

found in 40 C.F.R. Part 60, Appendix B; and

      2. CEMS shall sample, analyze, and record data at least

every fifteen (15) minutes while the emissions unit is operating.

      (e) CPMS or PEMS. An owner or operator using CPMS or PEMS to

monitor PAL pollutant emissions shall meet the following requirements:

      1. The CPMS or the PEMS shall be based on current

site-specific data demonstrating a correlation between the monitored parameter

and the PAL pollutant emissions across the range of operation of the emissions

unit; and

      2. While the unit is operating, each CPMS or PEMS shall sample,

analyze, and record data at least every fifteen (15) minutes, or at another

less frequent interval if approved by the cabinet.

      (f) Emission factors. An owner or operator using emission factors

to monitor PAL pollutant emissions shall meet the following requirements:

      1. All emission factors shall be adjusted, if appropriate,

to account for the degree of uncertainty or limitations in the factors’ development;

      2. The emissions unit shall operate within the designated

range of use for the emission factor, if applicable; and

      3. The owner or operator of a significant emissions unit

that relies on an emission factor to calculate PAL pollutant emissions shall

conduct validation testing to determine a site-specific emission factor within

six (6) months of PAL permit issuance if the cabinet determines that the

testing is required and technically practicable.

      (g) A source owner or operator shall record and report

maximum potential emissions without considering enforceable emissions limitations

or operational restrictions for an emissions unit during any period of time

there is no monitoring data, unless another method for determining emissions

during such periods is specified in the PAL permit.

      (h) If an owner or operator of an emissions unit cannot demonstrate

a correlation between the monitored parameters and the PAL pollutant emissions

rate at all operating points of the emissions unit, as an alternative to the

requirements of paragraphs (c) to (g) of this subsection, in conjunction with

permit issuance the cabinet shall:

      1. Establish default values for determining compliance with

the PAL based on the highest potential emissions reasonably estimated at

operating points; or

      2. Determine that operation of the emissions unit during

operating conditions if there is not a correlation between monitored parameters

and the PAL pollutant emissions is a violation of the PAL.

      (i)

Revalidation. All data used to establish the PAL pollutant shall be revalidated

through performance testing or other scientifically valid means if approved by

the cabinet. Validation testing shall occur at least once every five (5) years

after issuance of the PAL.

      (12) Recordkeeping requirements.

      (a) The PAL permit shall require an owner or operator to

retain a copy of all records necessary to determine compliance with any requirement

of this section and of the PAL, including a determination of each emissions

unit’s twelve (12) month rolling total emissions for five (5) years from the

date of the determination.

      (b) 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 five (5) years:

      1. A copy of the PAL permit application and any applications

for revisions to the PAL; and

      2. Each annual certification of compliance pursuant to Title

V and the data used to certify compliance.

      (13) Reporting and notification requirements. The owner or operator

shall submit semiannual monitoring reports and prompt deviation reports to the

cabinet in accordance with 401 KAR 52:020, 52:030, and 52:040 that meet the

following requirements:

      (a) Semiannual report. The semiannual report shall be submitted

to the cabinet within thirty (30) days of the end of each reporting period and

shall contain:

      1. The identification of owner and operator and the permit

number;

      2. Total annual emissions, in tpy, based on a twelve (12)

month rolling total for each month in the reporting period recorded pursuant to

subsection (12)(a) of this section;

      3. All data used in calculating the monthly and annual PAL

pollutant emissions, including any quality assurance or quality control data;

      4. A list of any emissions units modified or added to the

major stationary source during the preceding six (6) month period;

      5. The number, duration, and cause of any deviations or monitoring

malfunctions, other than the time associated with zero and span calibration

checks, and any corrective action following a deviation;

      6. A notification of permanent or temporary shutdown of any

monitoring system including:

      a. The reason for the shutdown;

      b. The anticipated date that the monitoring system shall be

fully operational or shall be replaced with another monitoring system;

      c. If applicable, a statement that the emissions unit

monitored by the monitoring system continued to operate without the monitoring

system; and

      d. The calculation of the emissions of the pollutant or the

number determined according to subsection (11)(g) of this section that is

included in the permit; and

      7. A signed statement by the responsible official, as defined

by 401 KAR 51:001, Section 1(210), certifying the truth, accuracy, and

completeness of the information provided in the semiannual report.

      (b) Deviation report. The major stationary source owner or

operator shall submit reports of any deviation or exceedance of the PAL requirements,

including periods monitoring is unavailable.

      1. A report submitted pursuant to 40 C.F.R.

70.6(a)(3)(iii)(B) shall satisfy the deviation reporting requirement;

      2. The deviation report shall be submitted within the time

limits prescribed by 40 C.F.R. 70.6(a)(3)(iii)(B);

      3. The deviation report shall contain the following

information:

      a. The identification of the owner, the operator, and the

permit number;

      b. The PAL requirement that experienced the deviation or

that was exceeded;

      c. Emissions resulting from the deviation or the exceedance;

and

      d. A signed statement by the responsible official, as

defined by 401 KAR 51:001, Section 1(210), certifying the truth, accuracy, and

completeness of the information provided in the report.

      (c)

Revalidation results. The owner or operator shall submit to the cabinet the

results of any revalidation test or method within three (3) months after

completion of the test or method.

      (14) Transition requirements.

      (a) After the U.S. EPA approves the Kentucky SIP revisions

for the PAL provisions published in 67 Fed. Reg. 80186, December 31, 2002, the

cabinet shall only issue a PAL that complies with the requirements of this section.

      (b) The cabinet may supersede a PAL that was established before

August 10, 2006, with a different PAL if the new PAL complies with the

requirements of this administrative regulation. (8 Ky.R. 1112; Am. 9 Ky.R. 350; eff. 9-22-1982; 12

Ky.R. 869; 1263; eff. 2-4-1986; 13 Ky.R. 924; eff. 12-2-1986; 14 Ky.R. 883;

eff. 12-11-1987; 1601; eff. 4-14-1988; 18 Ky.R. 2605; eff. 6-24-1992; 23 Ky.R.

2203; 3009; eff. 3-12-1997; 30 Ky.R. 2188; 2500; 31 Ky.R. 45; eff. 7-14-2004;

36 Ky.R. 880; 1260; eff. 2-5-2010; 39 Ky.R. 124; 794; eff. 12-7-2012.)