BOARD: 

Henry C. !icott 

BOARD: 

Paul C. Aughtry, I11 

Chairman 

Edwin H. Cooper, I11 

Vice Chairman 

Steven G. Kisner 

Secretary C. Earl Hunter, Commissioner 

P~omoting andp~otectin~ the health 4th public and the enuivonment 

M. David Mitchell. MD 

Glenn A. McCall 

Coleman F. Buckhouse, MD 

April 14,2009 

CERTIFIED MAIL 

A. Stanley Meiburg, Acting Regional Administrator 

US EPA Region 4 

Atlanta Federal Center 

61 Forsyth Street, SW 

Atlanta, GA 30303-8909 

Re: South Carolina Air Quality Implementation Plan (SIP) Revision - Prevention of Significant 

Deterioration and Nonattainment New Source Review 

Dear Mr. Meiburg: 

On May 1,2007, the United States Environmental Protection Agency (EPA) published a final rule in the 

Federal Register titled Prevention of Significant Deterioration, Nonattainment New Source Review, and 

Title V: Treatment of Certain Ethanol Production Facilities Under the "Major Emitting Facility" 

Defnition (72 FR 24060) which excluded facilities that produce ethanol by natural fermentation and are 

classified in North American Endustry Classification System (NAICS) code 325193 or 312140 from the 

definition of "chemical process plants." This final rule became effective on July 2,2007. 

The EPA also made substantial changes to the federal New Source Review (NSR) regulations in 

December 2002. En response, the South Carolina Department of Health and Environmental Control 

(Department) revised state regulations and submitted the revised South Carolina Air Qmlity 

Implementation Plan (SIP) for review. On June 2, 2008, the EPA took final action to partially approve, 

disapprove, and conditionally approve revisions to the SIP submitted by the state of South Carolina on 

July 1,2005, in a final rule titled Approval and Promulgation of Implementation Plans; South Carolina; 

Prevention of Signifcant Deterioration and Nonattainment New Source Review Rules (73 FR 31368). 

This final rule became effective July 2,2008. As part of the current conditional approval, the Department 

has agreed to revise the state Prevention of Significant Deterioration (PSD) program, Nonattainment NSR 

program, and the SIP. Requirements of the current conditional approval include the removal of 

"Pollution Cbntrol Projectn and "Clean Unit" provisions and the development of provisions for offsetting 

emission inckeases from NSR projects. 

As such, the Department has incorporated into the SIP the amendments described herein as required by the 

EPA for full approval. Enclosed is a copy of the revision to the SP that will be finalized upon publication 

of a Notice of Final Regulation in the South Carolina State Register on April 24, 2009. 

1. The Department has revised R. 61-62.5, Standard No. 7, Prevention of Signifcant Deterioration; 

R. 61-62.5, Standard No. 7.1, Nonattainment New Source Review; and the SIP to change the 

definition of "chemical process plants." 

SOUTH C A R O L I N A D E P A R T M E N T OF HEALTH AND ENVIRONMENTAI, CONTROL 

2600 Bull Street Columbia, SC 29201 Phone: (803) 898-3432 www.scdhec.gov 
South Carolina SIP Revision - Prevention of Significant Deterioration and Nonattainment New Source Review 

April 14,2009 

Page 2 

2. The Department has also revised R. 61-62.5, Standard No. 7, Prevention of Signijcant 

Deterioration; R. 61-62.5, Standard No. 7.1, Nonattainment New Source Review; and the SIP to 

make all additional changes necessary (including implementation of provisions for offsetting 

emissions) for full EPA approval of the state PSD program, Nonattainment NSR program, and the 

SIP. 

3. Pursuant to S.C. Code Section, 1-23-120(H)(l), the amendments were necessary to maintain 

consistency with Federal rules and did not require legislative review. 

4. A staff-conducted informational forum was held on February 23, 2009, for the purpose of 

answering questions, clarifying issues, and accepting formal comments from interested public on 

the amendments. No comments were received. A copy of the verbatim transcript of the public 

hearing is provided as Attachment 6. 

5. On April 9, 2009, a public hearing was held before the Department's Board where approval to 

publish a Notice of Final Regulation in the State Register (Doc. No. 4056) was granted. A copy 

of the Notice submitted to the Legislative Council, to be published on April 24,2009, is provided 

as Attachment 5. 

An electronic copy in CD format will accompany the hard copy submission. This electronic copy is an 

exact duplicate of the hard copy. If you have any questions, please contact Christopher L. Vaigneur of 

my staff at (803) 898-3 116 or via e-mail at vaignec@dhec.sc.gov. 

Sincerely, 

Robert W. King, Jr., P.E: 

Deputy Commissioner 

Environmental Quality Control 

cc (letter only): Myra C. Reece, Chief, BAQ 

Renee G. Shealy, Assistant Bureau Chief, BAQ 

Maeve S.R. Mason, Manager, Regulatory Development Section, BAQ 

cc (letter and CD): Carol L. Kemker, Director, Air, Pesticides & Toxics Management Division, EPA 

Region 4 

Richard A. Schutt, Chief, Air Planning Branch, EPA Region 4 

Lynorae Benjamin, Chief, Regulatory Development Section, EPA Region 4 

Zuri Farngalo, Regulatory Development Section, EPA Region 4 

Attachments: 

1. Text of Amendments (Highlight/Strikeout Copy) 

2. Revised version of the regulations to be adopted by the State 

3. Notices of Drafting published in the State Register on April 25,2008, and September 26,2008 

4. Notice of Proposed Regulation published in the State Register on January 23,2009 

5. Notice of Final Regulation to be published in the State Register on April 24,2009 

6. Transcript of Public Hearing held February 23,2009 

7. Copy of Legal Authority 
ATTACHMENT 1 

Text of Proposed Amendments to 

Regulation 61-62, Air Pollution Control Regulations and Standards

Text of Proposed Amendments to Regulation 61-62 for Public Comment: 

Legend: Highlighted text = new text. 

 Strikeout text = text being deleted. 

R.61-62.5, Standard No. 7 –Prevention of Significant Deterioration: 

Regulation 61-62.5, Standard No. 7, shall be revised as follows: 

No changes to (a)(1) through (a)(2)(iv)(d) 

(a)... 

 (2)... 

 (iv)... 

 

 (e) [Reserved] Emission test for projects that involve Clean Units. For a project that will 

be constructed and operated at a Clean Unit without causing the emissions unit to lose its Clean Unit 

designation, no emissions increase is deemed to occur.

 (f) 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 paragraphs (a)(2)(iv)(c) through (e) and (d) as 

applicable with respect to each emissions unit, equals or exceeds, the significant amount for that pollutant 

(as defined in paragraph (b)(49)). For example, if a project involves both an existing emissions unit and a 

Clean Unit, the projected increase is determined by summing the values determined using the method 

specified in paragraph (a)(2)(iv)(c) for the existing unit and using the method specified in paragraph 

(a)(2)(iv)(e) for the Clean Unit.

No change to (a)(2)(v) 

 (vi) An owner or operator undertaking a Pollution Control Project (PCP) (as defined in 

paragraph (b)(35)) shall comply with the requirements under paragraph (z).

No changes (b)(1) through b(11)

(b)... 

 

 (12) [Reserved] “Clean Unit” means any emissions unit that has been issued a major NSR permit 

that requires compliance with BACT or LAER, is complying with such BACT/LAER requirements, and 

qualifies as a Clean Unit pursuant to paragraph (x); or any emissions unit that has been designated by the 

Department as a Clean Unit, based on the criteria in paragraphs (y)(3)(i) through (iv).

No changes (b)(13) through (b)(30)(iii)(g) 

 (30)... 

 (iii)... 
 (h) [Reserved] The addition, replacement, or use of a PCP, as defined in paragraph (b)(35), 

at an existing emissions unit meeting the requirements of paragraph (z). A replacement control 

technology must provide more effective emission control than that of the replaced control technology to 

qualify for this exclusion.

No changes to (b)(30)(iii)(i) through (b)(32)(i)

 (32)... 

 (i)... 

 

 (a) Any of the following stationary sources of air pollutants which emits, or has the 

potential to emit, 100 tons per year or more of any regulated NSR pollutant: Fossil fuel-fired steam 

electric plants of more than 250 million British thermal units per hour heat input, coal cleaning plants 

(with thermal dryers), kraft pulp mills, portland cement plants, primary zinc smelters, iron and steel mill 

plants, primary aluminum ore reduction plants, primary copper smelters, municipal incinerators capable 

of charging more than 250 tons of refuse per day, hydrofluoric, sulfuric, and nitric acid plants, petroleum 

refineries, lime plants, phosphate rock processing plants, coke oven batteries, sulfur recovery plants, 

carbon black plants (furnace process), primary lead smelters, fuel conversion plants, sintering plants, 

secondary metal production plants, chemical process plants (which does not include ethanol production 

facilities that produce ethanol by natural fermentation included in NAICS codes 325193 or 312140), 

fossil fuel boilers (or combinations thereof) totaling more than 250 million British thermal units per hour 

heat input, petroleum storage and transfer units with a total storage capacity exceeding 300,000 barrels, 

taconite ore processing plants, glass fiber processing plants, and charcoal production plants; 

No changes to (b)(32)(i)(b) through (b)(32)(ii) 

 (iii)... 

 (t) Chemical process plants; – The term chemical processing plant shall not include ethanol 

production facilities that produce ethanol by natural fermentation included in NAICS codes 325193 or 

312140; 

No changes to (b)(32)(iii)(u) through (b)(34)(iii)(a)

 (34)... 

 (iii)... 

 (b) [Reserved] The increase or decrease in emissions did not occur at a Clean Unit except 

as provided in paragraphs (x)(8) and (y)(10) and;

No changes to (b)(34)(iii)(c) through (b)(34)(vi)(c)

 (vi)... 

 (d) The decrease in actual emissions did not result from the installation of add-on control 

technology or application of pollution prevention practices that were relied on in designating an emissions 

unit as a Clean Unit under paragraph (y) or under regulations approved pursuant to 40 CFR 51.165 or to 

40 CFR 51.166 (u). That is, once an emissions unit has been designated as a Clean Unit, the owner or 

operator cannot later use the emissions reduction from the air pollution control measures that the 

designation is based on in calculating the net emissions increase for another emissions unit (i.e., must not 
use that reduction in a “netting analysis” for another emissions unit). However, any new emission 

reductions that were not relied upon in a PCP excluded pursuant to paragraph (z) or for a Clean Unit 

designation are creditable to the extent they meet the requirements in paragraph (z)(6)(iv) for the PCP and 

paragraphs (x)(8) or (y)(10) for a Clean Unit.

No changes to (b)(34)(vii) through (b)(34)(ix)

 (35) [Reserved] “Pollution control project (PCP)” means any activity, set of work practices or 

project (including pollution prevention as defined under paragraph (b)(36)) undertaken at an existing 

emissions unit that reduces emissions of air pollutants from such unit. Such qualifying activities or 

projects can include the replacement or upgrade of an existing emissions control technology with a more 

effective unit. Other changes that may occur at the source are not considered part of the PCP if they are 

not necessary to reduce emissions though the PCP. Projects listed in paragraphs (b)(35)(i) through (vi) are 

presumed to be environmentally beneficial pursuant to paragraph (z)(4)(i). Projects not listed in these 

paragraphs may qualify for a case-specific PCP exclusion pursuant to the requirements of paragraphs 

(z)(3) and (z)(4).

(i) Conventional or advanced flue gas desulfurization or sorbent injection for control of SO2. 

(ii) Electrostatic precipitators, baghouses, high efficiency multiclones, or scrubbers for control 

of particulate matter or other pollutants.

(iii) Flue gas recirculation, low-NOx burners or combustors, selective non-catalytic reduction, 

selective catalytic reduction, low emission combustion (for IC engines), and oxidation/absorption catalyst 

for control of NOx. 

(iv) Regenerative thermal oxidizers, catalytic oxidizers, condensers, thermal incinerators, 

hydrocarbon combustion flares, biofiltration, absorbers and adsorbers, and floating roofs for storage 

vessels for control of volatile organic compounds or hazardous air pollutants. For the purpose of this 

regulation, “hydrocarbon combustion flare” means either a flare used to comply with an applicable NSPS 

or MACT standard (including uses of flares during startup, shutdown, or malfunction permitted under 

such a standard), or a flare that serves to control emissions of waste streams comprised predominately of 

hydrocarbons and containing no more than 230 mg/dscm hydrogen sulfide.

(v) Activities or projects undertaken to accommodate switching (or partially switching) to an 

inherently less polluting fuel, to be limited to the following fuel switches:

(a) Switching from a heavier grade of fuel oil to a lighter fuel oil, or any grade of oil to 

0.05 percent sulfur diesel (i.e., from a higher sulfur content #2 fuel or from #6 fuel, to CA 0.05 percent 

sulfur #2 diesel);

(b) Switching from coal, oil, or any solid fuel to natural gas, propane, or gasified coal;

(c) Switching from coal to wood, excluding construction or demolition waste, chemical or 

pesticide treated wood, and other forms of “unclean” wood;

(d) Switching from coal to #2 fuel oil (0.5 percent maximum sulfur content); and

(e) Switching from high sulfur coal to low sulfur coal (maximum 1.2 percent sulfur 

content).
(vi) Activities or projects undertaken to accommodate switching from the use of one ozone 

depleting substance (ODS) to the use of a substance with a lower or zero ozone depletion potential 

(ODP.) including changes to equipment needed to accommodate the activity or project, that meet the 

requirements of paragraphs (b)(35)(vi)(a) and (b).

(a) The productive capacity of the equipment is not increased as a result of the activity or 

project.

(b) The projected usage of the new substance is lower, on an ODP- weighted basis, than 

the baseline usage of the replaced ODS. To make this determination, follow the procedure in paragraphs 

(b)(35)(vi)(b)(1) through (4).

(1) Determine the ODP of the substances by consulting 40 CFR 82, subpart A, 

appendices A and B.

(2) Calculate the replaced ODP-weighted amount by multiplying the baseline actual 

usage (using the annualized average of any 24 consecutive months of usage within the past 10 years) by 

the ODP of the replaced ODS.

(3) Calculate the projected ODP-weighted amount by multiplying the project annual 

usage of the new substance by its ODP.

(4) If the value calculated in paragraph (b)(35)(vi)(b)(2) is more than the value 

calculated in paragraph (b)(35)(vi)(b)(3), then the projected use of the new substance is lower, on an 

ODP-weighted basis, than the baseline usage of the replaced ODS.

 (36) [Reserved] “Pollution prevention” means any activity that through process changes, product 

reformulation or redesign, or substitution of less polluting raw materials, eliminates or reduces the release 

of air pollutants (including fugitive emissions) and other pollutants to the environment prior to recycling, 

treatment, or disposal; it does not mean recycling (other than certain "in-process recycling" practices), 

energy recovery, treatment, or disposal.

No changes to (b)(37) through (b)(41)(ii)(c)

 (41)... 

 (ii)... 

 

 (d) In lieu of using the method set out in paragraph (a)(41)(ii)(a) (b)(41)(ii)(a) through (c), 

may elect to use the emissions unit's potential to emit, in tons per year, as defined under paragraph 

(b)(37). 

No changes to (b)(42) through (i)(1)(vii)(s) 

(i)... 

 (1)... 

 (vii)... 

 (t) Chemical process plants; - The term chemical process plant shall not include ethanol 

production facilities that produce ethanol by natural fermentation included in NAICS codes 325193 or 

312140; ... 
No changes to (i)(1)(vii)(u) through (r)(5) 

(r)... 

 (6) Monitoring, recordkeeping and reporting. The provisions of this paragraph (r)(6) apply to 

projects at an existing emissions unit at a major stationary source (other than projects at a Clean Unit or at 

a source with a PAL) in circumstances where there is a reasonable possibility that a project that is not a 

part of a major modification may result in a significant emissions increase and the owner or operator 

elects to use the method specified in paragraphs (b)(41)(ii)(a) through (c) for calculating projected actual 

emissions. 

No changes to (r)(6)(i) through (r)(6)(v)(c)

 (7) If a Clean Unit modification project or a project at a source with a PAL requires construction 

permitting under Regulation 61-62.1, Section II, “Permit Requirements”, the owner or operator shall 

provide notification of source status as part of the permit application to the Department. 

No changes to (r)(8) through (w)

(x) [Reserved] Clean Unit Test for emissions units that are subject to BACT or LAER. An owner or 

operator of a major stationary source has the option of using the Clean Unit Test to determine whether 

emissions increases at a Clean Unit are part of a project that is a major modification according to the 

provisions in paragraphs (x)(1) through (9).

(1) Applicability. The provisions of this paragraph (x) apply to any emissions unit for which the 

Department has issued a major NSR permit within the last 10 years.

(2) General provisions for Clean Units. The provisions in paragraphs (x)(2)(i) through (iv) apply to 

a Clean Unit.

(i) Any project for which the owner or operator begins actual construction after the effective 

date of the Clean Unit designation (as determined in accordance with paragraph (x)(4)) and before the 

expiration date (as determined in accordance with paragraph (x)(5)) will be considered to have occurred 

while the emissions unit was a Clean Unit.

(ii) If a project at a Clean Unit does not cause the need for a change in the emission limitations 

or work practice requirements in the permit for the unit that were adopted in conjunction with BACT and 

the project would not alter any physical or operational characteristics that formed the basis for the BACT 

determination as specified in paragraph (x)(6)(iv), the emissions unit remains a Clean Unit.

(iii) If a project causes the need for a change in the emission limitations or work practice 

requirements in the permit for the unit that were adopted in conjunction with BACT or the project would 

alter any physical or operational characteristics that formed the basis for the BACT determination as 

specified in paragraph (x)(6)(iv), then the emissions unit loses its designation as a Clean Unit upon 

issuance of the necessary permit revisions (unless the unit re-qualifies as a Clean Unit pursuant to 

paragraph (x)(3)(iv)). If the owner or operator begins actual construction on the project without first 

applying to revise the emissions unit's permit, the Clean Unit designation ends immediately prior to the 

time when actual construction begins.
(iv) A project that causes an emissions unit to lose its designation as a Clean Unit is subject to 

the applicability requirements of paragraphs (a)(2)(iv)(a) through (d) and paragraph (a)(2)(iv)(f) as if the 

emissions unit is not a Clean Unit.

(3) Qualifying or re-qualifying to use the Clean Unit Applicability Test. An emissions unit 

qualifies as a Clean Unit when the unit meets the criteria in paragraphs (x)(3)(i), (ii) and (iii). After the 

original Clean Unit expires in accordance with paragraph (x)(5) or is lost pursuant to paragraph (x)(2)(iii), 

such emissions unit may re-qualify as a Clean Unit under either paragraph (x)(3)(iv), or under the Clean 

Unit provisions in paragraph (y). To re-qualify as a Clean Unit under paragraph (x)(3)(iv), the emissions 

unit must obtain a new major NSR permit issued through the applicable PSD program and meet all the 

criteria in paragraph (x)(3)(iv). The Clean Unit designation applies individually for each pollutant emitted 

by the emissions unit.

(i) Permitting requirement. The emissions unit must have received a major NSR permit within 

the last 10 years. The owner or operator must maintain and be able to provide information that would 

demonstrate that this permitting requirement is met.

(ii) Qualifying air pollution control technologies. Air pollutant emissions from the emissions 

unit must be reduced through the use of air pollution control technology (which includes pollution 

prevention as defined under paragraph (b)(36) or work practices) that meets both the following 

requirements in paragraphs (x)(3)(ii)(a) and (b).

(a) The control technology achieves the BACT or LAER level of emissions reductions as 

determined through issuance of a major NSR permit within the past 10 years. However, the emissions 

unit is not eligible for the Clean Unit designation if the BACT determination resulted in no requirement to 

reduce emissions below the level of a standard, uncontrolled, new emissions unit of the same type.

(b) The owner or operator made an investment to install the control technology. For the 

purpose of this determination, an investment includes expenses to research the application of a pollution 

prevention technique to the emissions unit or expenses to apply a pollution prevention technique to an 

emissions unit.

(iii) Prior to using the Clean Units test, the facility shall notify the Department with a statement 

affirming that the conditions set out in paragraph (x)(3)(ii)(a) and (b) have been met in order to qualify as 

a Clean Unit. 

(iv) Re-qualifying for the Clean Unit designation. The emissions unit must obtain a new 

major NSR permit that requires compliance with the current-day BACT (or LAER), and the emissions 

unit must meet the requirements in paragraphs (x)(3)(i) and (x)(3)(ii).

(4) Effective date of the Clean Unit designation. The effective date of an emissions unit's Clean 

Unit designation (that is, the date on which the owner or operator may begin to use the Clean Unit Test to 

determine whether a project at the emissions unit is a major modification) is determined according to the 

applicable paragraph (x)(4)(i) or (x)(4)(ii).

(i) Original Clean Unit designation, and emissions units that re-qualify as Clean Units by 

implementing new control technology to meet current-day BACT. The effective date is the date the 

emissions unit's air pollution control technology is placed into service, or 3 years after the issuance date 

of the major NSR permit, whichever is earlier, but no sooner than the date these provisions become 

effective and approved for incorporation into the SIP.
(ii) Emissions units that re-qualify for the Clean Unit designation using an existing control 

technology. The effective date is the date the new, major NSR permit is issued.

(5) Clean Unit expiration. An emissions unit's Clean Unit designation expires (that is, the date on 

which the owner or operator may no longer use the Clean Unit Test to determine whether a project 

affecting the emissions unit is, or is part of, a major modification) according to the applicable paragraph 

(x)(5)(i) or (ii).

(i) Original Clean Unit designation, and emissions units that re-qualify by implementing 

new control technology to meet current-day BACT. For any emissions unit that automatically qualifies 

as a Clean Unit under paragraphs (x)(3)(i) and (ii) or re-qualifies by implementing new control 

technology to meet current-day BACT under paragraph (x)(3)(iv), the Clean Unit designation expires 10 

years after the effective date, or the date the equipment went into service, whichever is earlier; or, it 

expires at any time the owner or operator fails to comply with the provisions for maintaining the Clean 

Unit designation in paragraph (x)(7).

(ii) Emissions units that re-qualify for the Clean Unit designation using an existing control 

technology. For any emissions unit that re-qualifies as a Clean Unit under paragraph (x)(3)(iv) using an 

existing control technology, the Clean Unit designation expires 10 years after the effective date; or, it 

expires any time the owner or operator fails to comply with the provisions for maintaining the Clean Unit 

designation in paragraph (x)(7).

(6) Required title V permit content for a Clean Unit. After the effective date of the Clean Unit 

designation, and in accordance with the provisions of Regulation 61-62.70, Title V Operating Permit 

Program, but no later than when the title V permit is renewed, the title V permit for the major stationary 

source must include the following terms and conditions in paragraphs (x)(6)(i) through (vi) related to the 

Clean Unit.

(i) A statement indicating that the emissions unit qualifies as a Clean Unit and identifying the 

pollutant(s) for which this designation applies.

(ii) The effective date of the Clean Unit designation. If this date is not known when the Clean 

Unit designation is initially recorded in the title V permit (e.g., because the air pollution control

technology is not yet in service), the permit must describe the event that will determine the effective date 

(e.g., the date the control technology is placed into service). Once the effective date is determined, the 

owner or operator must notify the Department of the exact date. This specific effective date must be 

added to the source's title V permit at the first opportunity, such as a modification, revision, reopening, or 

renewal of the title V permit for any reason, whichever comes first, but in no case later than the next 

renewal.

(iii) The expiration date of the Clean Unit designation. If this date is not known when the 

Clean Unit designation is initially recorded into the title V permit (e.g., because the air pollution control 

technology is not yet in service), then the permit must describe the event that will determine the 

expiration date (e.g., the date the control technology is placed into service). Once the expiration date is 

determined, the owner or operator must notify the Department of the exact date. The expiration date must 

be added to the source's title V permit at the first opportunity, such as a modification, revision, reopening, 

or renewal of the title V permit for any reason, whichever comes first, but in no case later than the next 

renewal.
(iv) All emission limitations and work practice requirements adopted in conjunction with 

BACT, and any physical or operational characteristics which formed the basis for the BACT 

determination (e.g., possibly the emissions unit's capacity or throughput).

(v) Monitoring, recordkeeping, and reporting requirements as necessary to demonstrate that the 

emissions unit continues to meet the criteria for maintaining the Clean Unit designation. (See paragraph 

(x)(7).)

(vi) Terms reflecting the owner or operator's duties to maintain the Clean Unit designation and 

the consequences of failing to do so, as presented in paragraph (x)(7).

(7) Maintaining the Clean Unit designation. To maintain the Clean Unit designation, the owner or 

operator must conform to all the restrictions listed in paragraphs (x)(7)(i) through (iii). This paragraph 

(x)(7) applies independently to each pollutant for which the emissions unit has the Clean Unit 

designation. That is, failing to conform to the restrictions for one pollutant affects the Clean Unit 

designation only for that pollutant.

(i) The Clean Unit must comply with the emission limitation(s) and/ or work practice 

requirements adopted in conjunction with the BACT that is recorded in the major NSR permit, and 

subsequently reflected in the title V permit. The owner or operator may not make a physical change in or 

change in the method of operation of the Clean Unit that causes the emissions unit to function in a manner 

that is inconsistent with the physical or operational characteristics that formed the basis for the BACT 

determination (e.g., possibly the emissions unit's capacity or throughput).

(ii) The Clean Unit must comply with any terms and conditions in the title V permit related to 

the unit's Clean Unit designation.

(iii) The Clean Unit must continue to control emissions using the specific air pollution control 

technology that was the basis for its Clean Unit designation. If the emissions unit or control technology is 

replaced, then the Clean Unit designation ends.

(8) Netting at Clean Units. Emissions changes that occur at a Clean Unit must not be included in 

calculating a significant net emissions increase (that is, must not be used in a "netting analysis"), unless 

such use occurs before the effective date of the Clean Unit designation, or after the Clean Unit 

designation expires; or, unless the emissions unit reduces emissions below the level that qualified the unit 

as a Clean Unit. However, if the Clean Unit reduces emissions below the level that qualified the unit as a 

Clean Unit, then the owner or operator may generate a credit for the difference between the level that 

qualified the unit as a Clean Unit and the new emissions limit if such reductions are surplus, quantifiable, 

and permanent. For purposes of generating offsets, the reductions must also be federally enforceable. For 

purposes of determining creditable net emissions increases and decreases, the reductions must also be 

enforceable as a practical matter.

(9) Effect of redesignation on the Clean Unit designation. The Clean Unit designation of an 

emissions unit is not affected by re-designation of the attainment status of the area in which it is located. 

That is, if a Clean Unit is located in an attainment area and the area is redesignated to nonattainment, its 

Clean Unit designation is not affected. Similarly, redesignation from nonattainment to attainment does not 

affect the Clean Unit designation. However, if an existing Clean Unit designation expires, it must requalify under the requirements that are currently applicable in the area.

(y) [Reserved] Clean Unit provisions for emissions units that achieve an emission limitation 

comparable to BACT. An owner or operator of a major stationary source has the option of using the 
Clean Unit Test to determine whether emissions increases at a Clean Unit are part of a project that is a 

major modification according to the provisions in paragraphs (y)(1) through (11).

(1) Applicability. The provisions of this paragraph (y) apply to emissions units which do not qualify 

as Clean Units under paragraph (x), but which are achieving a level of emissions control comparable to 

BACT, as determined by the Department in accordance with this paragraph (y).

(2) General provisions for Clean Units. The provisions in paragraphs (y)(2)(i) through (iv) apply to 

a Clean Unit (designated under this paragraph (y)).

(i) Any project for which the owner or operator begins actual construction after the effective 

date of the Clean Unit designation (as determined in accordance with paragraph (y)(5)) and before the 

expiration date (as determined in accordance with paragraph (y)(6)) will be considered to have occurred 

while the emissions unit was a Clean Unit.

(ii) If a project at a Clean Unit does not cause the need for a change in the emission limitations 

or work practice requirements in the permit for the unit that have been determined (pursuant to paragraph 

(y)(4)) to be comparable to BACT, and the project would not alter any physical or operational 

characteristics that formed the basis for determining that the emissions unit's control technology achieves 

a level of emissions control comparable to BACT as specified in paragraph (y)(8)(iv), the emissions unit 

remains a Clean Unit.

(iii) If a project causes the need for a change in the emission limitations or work practice 

requirements in the permit for the unit that have been determined (pursuant to paragraph (y)(4)) to be 

comparable to BACT, or the project would alter any physical or operational characteristics that formed 

the basis for determining that the emissions unit's control technology achieves a level of emissions control 

comparable to BACT as specified in paragraph (y)(8)(iv), then the emissions unit loses its designation as 

a Clean Unit upon issuance of the necessary permit revisions (unless the unit re-qualifies as a Clean Unit 

pursuant to paragraph (y)(3)(iv)). If the owner or operator begins actual construction on the project 

without first applying to revise the emissions unit's permit, the Clean Unit designation ends immediately 

prior to the time when actual construction begins.

(iv) A project that causes an emissions unit to lose its designation as a Clean Unit is subject to 

the applicability requirements of paragraphs (a)(2)(iv)(a) through (d) and paragraph (a)(2)(iv)(f) as if the 

emissions unit is not a Clean Unit.

(3) Qualifying or re-qualifying to use the Clean Unit applicability test. An emissions unit 

qualifies as a Clean Unit when the unit meets the criteria in paragraphs (y)(3)(i) through (iii). After the 

original Clean Unit designation expires in accordance with paragraph (y)(6) or is lost pursuant to 

paragraph (y)(2)(iii), such emissions unit may re-qualify as a Clean Unit under either paragraph (y)(3)(iv), 

or under the Clean Unit provisions in paragraph (x). To re-qualify as a Clean Unit under paragraph 

(y)(3)(iv), the emissions unit must obtain a new permit issued pursuant to the requirements in paragraphs 

(y)(7) and (8) and meet all the criteria in paragraph (y)(3)(iv). The Department will make a separate Clean 

Unit designation for each pollutant emitted by the emissions unit for which the emissions unit qualifies as 

a Clean Unit.

(i) Qualifying air pollution control technologies. Air pollutant emissions from the emissions 

unit must be reduced through the use of air pollution control technology (which includes pollution 

prevention as defined under paragraph (b)(36) or work practices) that meets both the following 

requirements in paragraphs (y)(3)(i)(a) and (b).
(a) The owner or operator has demonstrated that the emissions unit's control technology is 

comparable to BACT according to the requirements of paragraph (y)(4). However, the emissions unit is 

not eligible for a Clean Unit designation if its emissions are not reduced below the level of a standard, 

uncontrolled emissions unit of the same type (e.g., if the BACT determinations to which it is compared 

have resulted in a determination that no control measures are required).

(b) The owner or operator made an investment to install the control technology. For the 

purpose of this determination, an investment includes expenses to research the application of a pollution 

prevention technique to the emissions unit or to retool the unit to apply a pollution prevention technique.

(ii) Impact of emissions from the unit. The Department must determine that the allowable 

emissions from the emissions unit will not cause or contribute to a violation of any national ambient air 

quality standard or PSD increment, or adversely impact an air quality related value (such as visibility) 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.

(iii) Date of installation. An emissions unit may qualify as a Clean Unit even if the control 

technology, on which the Clean Unit designation is based, was installed before the date these provisions 

become effective. However, for such emissions units, the owner or operator must apply for the Clean Unit 

designation before a period not exceeding twenty-four months following the date these provisions become 

effective. For technologies installed on and after the date these provisions become effective, the owner or 

operator must apply for the Clean Unit designation at the time the control technology is installed.

(iv) Re-qualifying as a Clean Unit. The emissions unit must obtain a new permit (pursuant to 

requirements in paragraphs (y)(7) and (8)) that demonstrates that the emissions unit's control technology 

is achieving a level of emission control comparable to current-day BACT, and the emissions unit must 

meet the requirements in paragraphs (y)(3)(i)(a) and (y)(3)(ii).

(4) Demonstrating control effectiveness comparable to BACT. The owner or operator may 

demonstrate that the emissions unit's control technology is comparable to BACT for purposes of 

paragraph (y)(3)(i) according to either paragraph (y)(4)(i) or (ii). Paragraph (y)(4)(iii) specifies the time 

for making this comparison.

(i) Comparison to previous BACT and LAER determinations. The Administrator maintains 

an on-line data base of previous determinations of RACT, BACT, and LAER in the RACT/BACT/LAER 

Clearinghouse (RBLC). The emissions unit's control technology is presumed to be comparable to BACT 

if it achieves an emission limitation that is equal to or better than the emission limitations achieved by all 

the sources for which a BACT or LAER determination has been made within the preceding 5 years and 

entered into the RBLC, and for which it is technically feasible to apply the BACT or LAER control 

technology to the emissions unit. The Department shall also compare this presumption to any additional 

BACT or LAER determinations of which it is aware, and shall consider any information on achieved-inpractice pollution control technologies provided during the public comment period, to determine whether 

any presumptive determination that the control technology is comparable to BACT is correct.

(ii) The substantially-as-effective test. The owner or operator may demonstrate that the 

emissions unit's control technology is substantially as effective as BACT. In addition, any other person 

may present evidence related to whether the control technology is substantially as effective as BACT 

during the public participation process required under paragraph (y)(7). The Department shall consider 

such evidence on a case-by-case basis and determine whether the emissions unit's air pollution control 

technology is substantially as effective as BACT.
(iii) Time of comparison.

(a) Emissions units with control technologies that are installed before the date these 

provisions become effective. The owner or operator of an emissions unit whose control technology is 

installed before the date these provisions become effective, may, at its option, either demonstrate that the 

emission limitation achieved by the emissions unit's control technology is comparable to the BACT 

requirements that applied at the time the control technology was installed, or demonstrate that the 

emission limitation achieved by the emissions unit's control technology is comparable to current-day 

BACT requirements. The expiration date of the Clean Unit designation will depend on which option the 

owner or operator uses, as specified in paragraph (y)(6).

(b) Emissions units with control technologies that are installed on and after the date 

these provisions become effective. The owner or operator must demonstrate that the emission limitation 

achieved by the emissions unit's control technology is comparable to current-day BACT requirements.

(5) Effective date of the Clean Unit designation. The effective date of an emissions unit's Clean 

Unit designation (that is, the date on which the owner or operator may begin to use the Clean Unit Test to 

determine whether a project involving the emissions unit is a major modification) is the date that the 

permit required by paragraph (y)(7) is issued or the date that the emissions unit's air pollution control 

technology is placed into service, whichever is later.

(6) Clean Unit expiration. If the owner or operator demonstrates that the emission limitation 

achieved by the emissions unit's control technology is comparable to the BACT requirements that applied 

at the time the control technology was installed, then the Clean Unit designation expires 10 years from the 

date that the control technology was installed. For all other emissions units, the Clean Unit designation 

expires 10 years from the effective date of the Clean Unit designation, as determined according to 

paragraph (y)(5). In addition, for all emissions units, the Clean Unit designation expires any time the 

owner or operator fails to comply with the provisions for maintaining the Clean Unit designation in 

paragraph (y)(9).

(7) Procedures for designating emissions units as Clean Units. The Department shall designate an 

emissions unit a Clean Unit only by issuing a permit through Regulation 61-62.1 including requirements 

for public notice of the proposed Clean Unit designation and opportunity for public comment. Such 

permit must also meet the requirements in paragraph (y)(8).

(8) Required permit content. The permit required by paragraph (y)(7) shall include the terms and 

conditions set forth in paragraphs (y)(8)(i) through (vi). Such terms and conditions shall be incorporated 

into the major stationary source's title V permit in accordance with the provisions of the applicable title V 

permit program under 40 CFR 70 or 40 CFR 71, but no later than when the title V permit is renewed.

(i) A statement indicating that the emissions unit qualifies as a Clean Unit and identifying the 

pollutant(s) for which this designation applies.

(ii) The effective date of the Clean Unit designation. If this date is not known when the 

Department issues the permit (e.g., because the air pollution control technology is not yet in service), then 

the permit must describe the event that will determine the effective date (e.g., the date the control 

technology is placed into service). Once the effective date is known, then the owner or operator must 

notify the Department of the exact date. This specific effective date must be added to the source's title V 

permit at the first opportunity, such as a modification, revision, reopening, or renewal of the title V permit 

for any reason, whichever comes first, but in no case later than the next renewal.
(iii) The expiration date of the Clean Unit designation. If this date is not known when the 

Department issues the permit (e.g., because the air pollution control technology is not yet in service), then 

the permit must describe the event that will determine the expiration date (e.g., the date the control 

technology is placed into service). Once the expiration date is known, then the owner or operator must 

notify the Department of the exact date. The expiration date must be added to the source's title V permit at 

the first opportunity, such as a modification, revision, reopening, or renewal of the title V permit for any 

reason, whichever comes first, but in no case later than the next renewal.

(iv) All emission limitations and work practice requirements adopted in conjunction with 

emission limitations necessary to assure that the control technology continues to achieve an emission 

limitation comparable to BACT, and any physical or operational characteristics that formed the basis for 

determining that the emissions unit's control technology achieves a level of emissions control comparable 

to BACT (e.g., possibly the emissions unit's capacity or throughput).

(v) Monitoring, recordkeeping, and reporting requirements as necessary to demonstrate that the 

emissions unit continues to meet the criteria for maintaining its Clean Unit designation. (See paragraph 

(y)(9)).

(vi) Terms reflecting the owner or operator's duties to maintain the Clean Unit designation and 

the consequences of failing to do so, as presented in paragraph (y)(9).

(9) Maintaining a Clean Unit designation. To maintain the Clean Unit designation, the owner or 

operator must conform to all the restrictions listed in paragraphs (y)(9)(i) through (v). This paragraph 

(y)(9) applies independently to each pollutant for which the Department has designated the emissions unit 

a Clean Unit. That is, failing to conform to the restrictions for one pollutant affects the Clean Unit 

designation only for that pollutant.

(i) The Clean Unit must comply with the emission limitation(s) and/ or work practice 

requirements adopted to ensure that the control technology continues to achieve emission control 

comparable to BACT.

(ii) The owner or operator may not make a physical change in or change in the method of 

operation of the Clean Unit that causes the emissions unit to function in a manner that is inconsistent with 

the physical or operational characteristics that formed the basis for the determination that the control 

technology is achieving a level of emission control that is comparable to BACT (e.g., possibly the 

emissions unit's capacity or throughput).

(iii) Reserved

(iv) The Clean Unit must comply with any terms and conditions in the title V permit related to 

the unit's Clean Unit designation.

(v) The Clean Unit must continue to control emissions using the specific air pollution control 

technology that was the basis for its Clean Unit designation. If the emissions unit or control technology is 

replaced, then the Clean Unit designation ends.

(10) Netting at Clean Units. Emissions changes that occur at a Clean Unit must not be included in 

calculating a significant net emissions increase (that is, must not be used in a "netting analysis") unless 

such use occurs before the date these provisions become effective, or after the Clean Unit designation 

expires; or, unless the emissions unit reduces emissions below the level that qualified the unit as a Clean 

Unit. However, if the Clean Unit reduces emissions below the level that qualified the unit as a Clean Unit, 
then the owner or operator may generate a credit for the difference between the level that qualified the 

unit as a Clean Unit and the emissions unit's new emissions limit if such reductions are surplus, 

quantifiable, and permanent. For purposes of generating offsets, the reductions must also be federally 

enforceable. For purposes of determining creditable net emissions increases and decreases, the reductions 

must also be enforceable as a practical matter.

(11) Effect of redesignation on a Clean Unit designation. The Clean Unit designation of an 

emissions unit is not affected by redesignation of the attainment status of the area in which it is located. 

That is, if a Clean Unit is located in an attainment area and the area is redesignated to nonattainment, its 

Clean Unit designation is not affected. Similarly, redesignation from nonattainment to attainment does not 

affect the Clean Unit designation. However, if a Clean Unit's designation expires or is lost pursuant to 

paragraphs (x)(2)(iii) and (y)(2)(iii), it must re-qualify under the requirements that are currently 

applicable.

(z) [Reserved] PCP exclusion procedural requirements. PCPs shall be provided according to the 

provisions in paragraphs (z)(1) through (6).

(1) Before beginning actual construction of a PCP project, the owner or operator shall satisfy the 

requirements of Regulation 61-62.1, Section II.A, “Construction Permit. ”

(2) Before beginning actual construction of a PCP project that is listed in paragraphs (b)(35)(i) 

through (vi) of this regulation, the owner or operator shall meet the requirements of Regulation 61-62.1 

Section II.A, “Construction Permit” and paragraphs (z)(4) and (z)(5) of this regulation.

(3) Permit process for unlisted projects. Before beginning actual construction of a PCP project that 

is not listed in paragraphs (b)(35)(i) through (vi), the owner or operator shall meet the requirements of 

Regulation 61-62.1 Section II.A, “Construction Permit” and paragraphs (q) Public Participation and 

(z)(4) through (z)(5) of this regulation.

(4)Any project that relies on the PCP exclusion must meet the requirements of paragraphs (z)(4)(i) 

and (ii).

(i) Environmentally beneficial analysis. The environmental benefit from the emissions 

reductions of pollutants regulated under the Clean Air Act must outweigh the environmental detriment of 

emissions increases in pollutants regulated under the Clean Air Act. A statement that a technology from 

paragraphs (b)(35)(i) through (vi) is being used shall be presumed to satisfy this requirement.

(ii) Air quality analysis. The emissions increases from the project will not cause or contribute 

to a violation of any national ambient air quality standard or PSD increment, or adversely impact an air 

quality related value (such as visibility) 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.

(5) Content of notice or permit application. In the permit application sent to the Department, the 

owner or operator must include, at a minimum, the information listed in paragraphs (z)(5)(i) through (v).

(i) A description of the project.

(ii) The potential emissions increases and decreases of any pollutant regulated under the Clean 

Air Act and the projected emissions increases and decreases using the methodology in paragraph 

(a)(2)(iv) that will result from the project, and a copy of the environmentally beneficial analysis required 

by paragraph (z)(4)(i).
(iii) A description of monitoring and recordkeeping, and all other methods, to be used on an 

ongoing basis to demonstrate that the project is environmentally beneficial. Methods should be sufficient 

to meet the requirements in Regulation 61-62.70, Title V Operating Permit Program.

(iv) A certification that the project will be designed and operated in a manner that is consistent 

with proper industry and engineering practices, in a manner that is consistent with the environmentally 

beneficial analysis and air quality analysis required by paragraphs (z)(4)(i) and (ii), with information 

submitted in the notice or permit application, and in such a way as to minimize, within the physical 

configuration and operational standards usually associated with the emissions control device or strategy, 

emissions of collateral pollutants.

(v) Demonstration that the PCP will not have an adverse air quality impact (e.g., modeling, 

screening level modeling results, or a statement that the collateral emissions increase is included within 

the parameters used in the most recent modeling exercise) as required by paragraph (z)(4)(ii). An air 

quality impact analysis is not required for any pollutant that will not experience a significant emissions 

increase as a result of the project.

(6) Operational requirements. Upon installation of the PCP, the owner or operator must comply 

with the requirements of paragraphs (z)(6)(i) through (iv).

(i) General duty. The owner or operator must operate the PCP in a manner consistent with 

proper industry and engineering practices, in a manner that is consistent with the environmentally 

beneficial analysis and air quality analysis required by paragraphs (z)(4)(i) and (ii), with information 

submitted in the notice or permit application required by paragraph (z)(5), and in such a way as to 

minimize, within the physical configuration and operational standards usually associated with the 

emissions control device or strategy, emissions of collateral pollutants.

(ii) Recordkeeping. The owner or operator must maintain copies on site of the environmentally 

beneficial analysis, the air quality impacts analysis, and monitoring and other emission records to prove 

that the PCP operated consistent with the general duty requirements in paragraph (z)(6)(i).

(iii) Permit requirements. The owner or operator must comply with any provisions in the State 

Implementation Plan-approved permit or title V permit related to use and approval of the PCP exclusion.

(iv) Generation of emission reduction credits. Emission reductions created by a PCP shall not 

be included in calculating a significant net emissions increase unless the emissions unit further reduces 

emissions after qualifying for the PCP exclusion (e.g., taking an operational restriction on the hours of 

operation). The owner or operator may generate a credit for the difference between the level of reduction 

which was used to qualify for the PCP exclusion and the new emissions limit if such reductions are 

surplus, quantifiable, and permanent. For purposes of generating offsets, the reductions must also be 

federally enforceable. For purposes of determining creditable net emissions increases and decreases, the 

reductions must also be enforceable as a practical matter.

No changes (aa) through (bb)

R.61-62.5, Standard No. 7.1 –Nonattainment New Source Review (NSR): 

Regulation 61-62.5, Standard No. 7.1, shall be revised as follows: 
No changes to (a) through (b)(4)

(b)... 

 

 (5) [Reserved] Emission test for projects that involve Clean Units. For a project that will be 

constructed and operated at a Clean Unit without causing the emissions unit to lose its Clean Unit 

designation, no emissions increase is deemed to occur.

 (6) 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 paragraphs (b)(3) through (5) and (4) 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 paragraph (c)(14)). For example, if a project involves both an 

existing emissions unit and a Clean Unit, the projected increase is determined by summing the values 

determined using the method specified in paragraph (b)(3) for the existing unit and using the method 

specified in paragraph (b)(5) for the Clean Unit.

No change to (b)(7)

 (8) An owner or operator undertaking a Pollution Control Project (PCP) (as defined in paragraph 

(c)(10)) shall comply with the requirements under paragraph (h).

No changes to (c)(1) through (c)(3)

(c)... 

 

 (4) [Reserved] “Clean Unit” means any emissions unit that has been issued a major NSR permit that 

requires compliance with BACT or LAER, that is complying with such BACT/LAER requirements, and 

qualifies as a Clean Unit in accordance with paragraph (f); or any emissions unit that has been designated 

by the Department as a Clean Unit, based on the criteria in paragraphs (g)(3)(i) through (iv).

No changes to (c)(5) through (c)(6)(C)(vii)

 (6)... 

 (C)... 

 (viii) [Reserved] The addition, replacement, or use of a PCP, as defined in paragraph 

(c)(10), at an existing emissions unit meeting the requirements of paragraph (h). A replacement control 

technology must provide more effective emissions control than that of the replaced control technology to 

qualify for this exclusion.

No changes to (c)(6)(C)(ix) to (c)(7)(C)(xix) 

 (7)... 

 (C)... 

 (xx) Chemical process plants; - The term chemical process plant shall not include ethanol 

production facilities that produce ethanol by natural fermentation included in NAICS codes 325193 or 

312140; ... 

No changes to (c)(7)(C)(xxi) to (c)(8)(C)(ii)
 (8)... 

 (C)... 

 (iii) The increase or decrease in emissions did not occur at a Clean Unit, except as provided 

in paragraphs (f)(8) and (g)(10).

No changes to (c)(8)(D) to (c)(8)(E)(iv) 

 (E)... 

 (v) The decrease in actual emissions did not result from the installation of add-on control 

technology or application of pollution prevention practices that were relied on in designating an emissions 

unit as a Clean Unit pursuant to paragraph (g). That is, once an emissions unit has been designated as a 

Clean Unit, the owner or operator cannot later use the emissions reduction from the air pollution control 

measures that the Clean Unit designation is based on in calculating the net emissions increase for another 

emissions unit (i.e., must not use that reduction in a "netting analysis" for another emissions unit). 

However, any new emissions reductions that were not relied upon in a PCP excluded pursuant to 

paragraph (h) or for a Clean Unit designation are creditable to the extent they meet the requirements in 

paragraphs (h)(6)(iv) for the PCP and paragraphs (f)(8) or (g)(10) for a Clean Unit.

No changes to (c)(8)(F) through (c)(9)

 (10) [Reserved] “Pollution control project (PCP)” means any activity, set of work practices or 

project (including pollution prevention as defined under paragraph (b)(36) of Standard 7) undertaken at an 

existing emissions unit that reduces emissions of air pollutants from such unit. Such qualifying activities 

or projects can include the replacement or upgrade of an existing emissions control technology with a 

more effective unit. Other changes that may occur at the source are not considered part of the PCP if they 

are not necessary to reduce emissions through the PCP. Projects listed in (c)(10)(A) through (F) are 

presumed to be environmentally beneficial pursuant to paragraph (h)(2)(i). Projects not listed in these 

paragraphs may qualify for a case-specific PCP exclusion pursuant to the requirements of paragraphs 

(h)(2) and (h)(5).

 

(A) Conventional or advanced flue gas desulfurization or sorbent injection for control of SO2.

(B) Electrostatic precipitators, baghouses, high efficiency multiclones, or scrubbers for control 

of particulate matter or other pollutants.

(C) Flue gas recirculation, low-NOX burners or combustors, selective non-catalytic reduction, 

selective catalytic reduction, low emission combustion (for Internal Combustion engines), and oxidation/ 

absorption catalyst for control of NOX.

(D) Regenerative thermal oxidizers, catalytic oxidizers, condensers, thermal incinerators, 

hydrocarbon combustion flares, biofiltration, absorbers and adsorbers, and floating roofs for storage 

vessels for control of volatile organic compounds or hazardous air pollutants. For the purpose of this 

regulation, "hydrocarbon combustion flare" means either a flare used to comply with an applicable NSPS 

or MACT standard (including uses of flares during startup, shutdown, or malfunction permitted under 

such a standard), or a flare that serves to control emissions of waste streams comprised predominately of 

hydrocarbons and containing no more than 230 mg/dscm hydrogen sulfide.
(E) Activities or projects undertaken to accommodate switching (or partially switching) to an 

inherently less polluting fuel, to be limited to the following fuel switches:

(i) Switching from a heavier grade of fuel oil to a lighter fuel oil, or any grade of oil to 0.05 

percent sulfur diesel (i.e., from a higher sulfur content #2 fuel or from #6 fuel, to CA 0.05 percent sulfur 

#2 diesel);

(ii) Switching from coal, oil, or any solid fuel to natural gas, propane, or gasified coal;

(iii) Switching from coal to wood, excluding construction or demolition waste, chemical or 

pesticide treated wood, and other forms of "unclean" wood;

(iv) Switching from coal to #2 fuel oil (0.5 percent maximum sulfur content); and

(v) Switching from high sulfur coal to low sulfur coal (maximum 1.2 percent sulfur 

content).

(F) Activities or projects undertaken to accommodate switching from the use of one ozone 

depleting substance (ODS) to the use of a substance with a lower or zero ozone depletion potential 

(ODP), including changes to equipment needed to accommodate the activity or project, that meet the 

requirements of paragraphs (c)(10)(F)(i) and (ii).

(i) The productive capacity of the equipment is not increased as a result of the activity or 

project.

(ii) The projected usage of the new substance is lower, on an ODP-weighted basis, than the 

baseline usage of the replaced ODS. To make this determination, follow the procedure in paragraphs 

(c)(10)(F)(ii)(a) through (d).

(a) Determine the ODP of the substances by consulting 40 CFR part 82, subpart A, 

appendices A and B.

(b) Calculate the replaced ODP-weighted amount by multiplying the baseline actual 

usage (using the annualized average of any 24 consecutive months of usage within the past 10 years) by 

the ODP of the replaced ODS.

(c) Calculate the projected ODP-weighted amount by multiplying the projected future 

annual usage of the new substance by its ODP.

(d) If the value calculated in paragraph (c)(10)(F)(ii)(b) is more than the value 

calculated in paragraph (c)(10)(F)(ii)(c), then the projected use of the new substance is lower, on an ODPweighted basis, than the baseline usage of the replaced ODS.

No changes to (c)(11) through (d)(1)(C)(iv)

(d)... 

 (1)... 

 (C)... 

 (v) All emission reductions claimed as offset credit shall be federally enforceable; and 

surplus; 
 (a) Eligibility as Emission Offsets. Any facility that has the potential to emit any 

NAAQS pollutant in an amount greater than 5 tons per year and that is located in a federally-designated 

nonattainment area shall be eligible to create emission offsets. 

 

 (1) To be eligible to be an emission offset: 

 (A) A reduction in emissions shall be real, permanent, quantifiable, 

enforceable, and surplus and must have occurred after December 31 of the base year inventory for those 

pollutants that are designated nonattainment by the EPA. The base year inventory date is two years 

preceding the date of nonattainment designation. However, the Department 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. 

 (B) Emission reductions shall have been created by a facility that has 

obtained an enforceable air quality permit or letter of permit cancellation resulting from the surrender of 

the source’s permit(s). 

 

 (2) Emission reductions may be created by any or a combination of the following 

methods: 

 (A) Installation of control equipment beyond what is necessary to comply 

with existing requirements; 

 (B) A change in process inputs, formulations, products or product mix, 

fuels, or raw materials; 

 (C) A reduction in actual emission rates; 

 (D) A reduction in hours of operation; 

 (E) Production curtailment or reduction in throughput; 

 (F) Shutdown of emitting sources; or 

 

 (G) Any other enforceable method that the Department determines to result 

in real, permanent, quantifiable, enforceable, and surplus reduction of emissions. 

 (3) A completed emissions offset submittal must be received by the Department 

within one year of the date of the creation of the reductions. Emission offsets not requested within one 

year of the date of the creation of the reductions will be permanently retired. Prior to commencing 

operation of a permitted emissions unit, Department approval for the required emission offsets must be 

granted. 

 (4) The following are ineligible for emission offsets: 

 (A) Emission reductions that are not considered surplus, such as: 

 (i) Emission reductions that have previously been used to avoid 

Regulation 61-62.5 Standard No. 7, Prevention of Significant Deterioration, or Regulation 61-62.5 

Standard No. 7.1, Nonattainment New Source Review (NSR), through a netting demonstration; 
 (ii) Emission reductions of hazardous air pollutants, listed in Section 

112(b) of the Clean Air Act, to the extent needed to comply with Regulation 61-62.61, National Emission 

Standards for Hazardous Air Pollutants (NESHAP), and Regulation 61-62.63, National Emission 

Standards for Hazardous Air Pollutants (NESHAP) for Source Categories, (however, emission reductions 

of hazardous volatile organic compound (VOC) and/or hazardous particulate matter (PM) air pollutants 

beyond the amount of reductions necessary to comply with Regulation 61-62.61, NESHAP, and 

Regulation 61-62.63, NESHAP for Source Categories, are considered surplus); 

 (iii) Emission reductions of nitrogen oxides (NOx), sulfur dioxide 

(SO2), particulate matter (PM) and VOCs to the extent needed to comply with Section 111 of the CAA 

and Regulation 61-62.60, South Carolina Designated Facility Plan and New Source Performance 

Standards (NSPS), (however, emission reductions of VOCs, NOx, SO2, PM and VOCs beyond the 

amount of reductions necessary to comply with Regulation 61-62.60, South Carolina Designated Facility 

Plan and NSPS, are considered surplus); 

 (iv) Emission units covered under an agreement, order or variance for 

exceeding an emission standard until compliance is demonstrated with the emission standard that is the 

subject of the agreement, order or variance; 

 (v) Sources that have operated less than 12 months; 

 (vi) Emission reductions required in order to comply with any State or 

Federal regulation not listed above, unless these reductions are in excess of the amount required by the 

State or Federal regulation; or 

 (vii) Facilities that have received a Department transmittal letter 

notifying of permit cancellation due to the facility’s decision to close out its operating permit without a 

request to qualify facility emission reductions as offsets. 

 (b) Calculation of Emission Offsets

 (1) The following procedure shall be followed to calculate emission offsets: 

 

 (A) The source shall calculate average annual actual emissions, in tons per 

year (tpy), before the emission reduction using data from the 24-month period immediately preceding the 

reduction in emissions. With the Department’s approval, the use of a different time period, not to exceed 

10 years immediately preceding the reduction in emissions, may be allowed if the owner or operator of 

the source documents that such period is more representative of normal source operation, but not prior to 

the base year inventory date, which is the last day of the two years preceding the date of nonattainment 

designation; and 

 (B) The emission offsets created shall be calculated by subtracting the 

allowable emissions following the reduction from the average annual actual emissions prior to the 

reduction. 

 (2) For any emissions unit that has been operating for a consecutive period of at 

least 12 months but less than 24 months on the base year inventory date, based on the unit’s potential to 

emit, emissions shall be calculated equal to the amount needed to complete a 24 month period on the base 

year inventory date. 
No changes to (d)(1)(C)(vi) through (d)(1)(C)(viii) 

 (ix) [Reserved] Decreases in actual emissions resulting from the installation of add-on 

control technology or application of pollution prevention measures that were relied upon in designating an 

emissions unit as a Clean Unit or a project as a PCP cannot be used as offsets.

 (x) [Reserved] Decreases in actual emissions occurring at a Clean Unit cannot be used as 

offsets, except as provided in paragraphs (f)(8) and (g)(10) of this regulation. Similarly, decreases in 

actual emissions occurring at a PCP cannot be used as offsets, except as provided in paragraph (h)(6)(iv) 

of this regulation.

No changes to (d)(1)(C)(xi) through (d)(2)(D) 

 (3) The following provisions apply to projects at existing emissions units at a major stationary source 

(other than projects at a Clean Unit or at a source with a PAL) in circumstances where there is a 

reasonable possibility that a project that is not a part of a major modification may result in a significant 

emissions increase and the owner or operator elects to use the method specified in paragraphs 

(c)(11)(B)(i) through (iii) for calculating projected actual emissions. ... 

No changes to (d)(3)(A) through (d)(3)(E)

 (4) If a Clean Unit modification project or a project at a source with a PAL requires construction 

permitting under Regulation 61-62.1, Section II, “Permit Requirements,” the owner or operator shall 

provide notification of source status as part of the permit application to the Department. 

No changes to (d)(5) through (e)(S)

(e)... 

 (T) Chemical process plants; - The term chemical process plant shall not include ethanol production 

facilities that produce ethanol by natural fermentation included in NAICS codes 325193 or 312140; ... 

No changes to (e)(U) through (e)(AA)

(f) [Reserved] Clean Unit Test for emissions units that are subject to LAER. An owner or operator of 

a major stationary source has the option of using the Clean Unit Test to determine whether emissions 

increases at a Clean Unit are part of a project that is a major modification according to the provisions in 

paragraphs (f)(1) through (9).

(1) Applicability. The provisions of paragraph (f) apply to any emissions unit for which the 

Department has issued a major NSR permit within the past 10 years.

(2) General provisions for Clean Units. The provisions in paragraphs (f)(2)(i) through (v) apply to 

a Clean Unit.

(i) Any project for which the owner or operator begins actual construction after the effective 

date of the Clean Unit designation (as determined in accordance with paragraph (f)(4)) and before the 

expiration date (as determined in accordance with paragraph (f)(5)) will be considered to have occurred 

while the emissions unit was a Clean Unit.
(ii) If a project at a Clean Unit does not cause the need for a change in the emission limitations 

or work practice requirements in the permit for the unit that were adopted in conjunction with LAER and 

the project would not alter any physical or operational characteristics that formed the basis for the LAER 

determination as specified in paragraph (f)(6)(iv), the emissions unit remains a Clean Unit.

(iii) If a project causes the need for a change in the emission limitations or work practice 

requirements in the permit for the unit that were adopted in conjunction with LAER or the project would 

alter any physical or operational characteristics that formed the basis for the LAER determination as 

specified in paragraph (f)(6)(iv), then the emissions unit loses its designation as a Clean Unit upon 

issuance of the necessary permit revisions (unless the unit requalifies as a Clean Unit pursuant to 

paragraph (f)(3)(iv)). If the owner or operator begins actual construction on the project without first 

applying to revise the emissions unit's permit, the Clean Unit designation ends immediately prior to the 

time when actual construction begins.

(iv) A project that causes an emissions unit to lose its designation as a Clean Unit is subject to 

the applicability requirements of paragraphs (b)(1) through (4) and paragraph (b)(6) as if the emissions 

unit is not a Clean Unit.

(v) Certain Emissions Units with PSD permits. For emissions units that meet the 

requirements of paragraphs (f)(2)(v)(A) and (B), the BACT level of emissions reductions and/or work 

practice requirements shall satisfy the requirement for LAER in meeting the requirements for Clean Units 

under paragraphs (f)(3) through (8). For these emissions units, all requirements for the LAER 

determination under paragraphs (f)(2)(ii) and (iii) shall also apply to the BACT permit terms and 

conditions. In addition, the requirements of paragraph (f)(7)(i)(B) do not apply to emissions units that 

qualify for Clean Unit status under this paragraph (f)(2)(v).

(A) The emissions unit must have received a PSD permit within the last 10 years and such 

permit must require the emissions unit to comply with BACT.

(B) The emissions unit must be located in an area that was redesignated as nonattainment 

for the relevant pollutant(s) after issuance of the PSD permit and before the effective date of the Clean 

Unit Test provisions in the area.

(3) Qualifying or re-qualifying to use the Clean Unit applicability test. An emissions unit 

automatically qualifies as a Clean Unit when the unit meets the criteria in paragraphs (f)(3)(i) and (ii). 

After the original Clean Unit designation expires in accordance with paragraph (f)(5) or is lost pursuant to 

paragraph (f)(2)(iii), such emissions unit may re-qualify as a Clean Unit under either paragraph (f)(3)(iv), 

or under the Clean Unit provisions in paragraph (g). To re-qualify as a Clean Unit under paragraph 

(f)(3)(iv), the emissions unit must obtain a new major NSR permit issued through the applicable 

nonattainment major NSR program and meet all the criteria in paragraph (f)(3)(iv). Clean Unit 

designation applies individually for each pollutant emitted by the emissions unit.

(i) Permitting requirement. The emissions unit must have received a major NSR permit within 

the past 10 years. The owner or operator must maintain and be able to provide information that would 

demonstrate that this permitting requirement is met.

(ii) Qualifying air pollution control technologies. Air pollutant emissions from the emissions 

unit must be reduced through the use of an air pollution control technology (which includes pollution 

prevention as defined under paragraph (b)(36) of Standard 7 or work practices) that meets both the 

following requirements in paragraphs (f)(3)(ii)(A) and (B).
(A) The control technology achieves the LAER level of emissions reductions as 

determined through issuance of a major NSR permit within the past 10 years. However, the emissions 

unit is not eligible for Clean Unit designation if the LAER determination resulted in no requirement to 

reduce emissions below the level of a standard, uncontrolled, new emissions unit of the same type.

(B) The owner or operator made an investment to install the control technology. For the 

purpose of this determination, an investment includes expenses to research the application of a pollution 

prevention technique to the emissions unit or expenses to apply a pollution prevention technique to an 

emissions unit.

(iii) Prior to using the Clean Units test, the facility shall notify the Department with a statement 

affirming that the conditions set out in paragraph (f)(3)(ii)(A) and (B) have been met in order to qualify as 

a Clean Unit.

(iv) Re-qualifying for the Clean Unit designation. The emissions unit must obtain a new 

major NSR permit that requires compliance with the current-day LAER, and the emissions unit must meet 

the requirements in paragraphs (f)(3)(i) and (f)(3)(ii).

(4) Effective date of the Clean Unit designation. The effective date of an emissions unit's Clean 

Unit designation (that is, the date on which the owner or operator may begin to use the Clean Unit Test to 

determine whether a project at the emissions unit is a major modification) is determined according to the 

applicable paragraph (f)(4)(i) or (f)(4)(ii).

(i) Original Clean Unit designation, and emissions units that re-qualify as Clean Units by 

implementing a new control technology to meet current-day LAER. The effective date is the date the 

emissions unit's air pollution control technology is placed into service, or 3 years after the issuance date 

of the major NSR permit, whichever is earlier, but no sooner than the date that provisions for the Clean 

Unit applicability test are approved by the Administrator for incorporation into the plan and become 

effective for the State.

(ii) Emissions units that re-qualify for the Clean Unit designation using an existing control 

technology. The effective date is the date the new, major NSR permit is issued.

(5) Clean Unit expiration. An emissions unit's Clean Unit designation expires (that is, the date on 

which the owner or operator may no longer use the Clean Unit Test to determine whether a project 

affecting the emissions unit is, or is part of, a major modification) according to the applicable paragraph 

(f)(5)(i) or (ii).

(i) Original Clean Unit designation, and emissions units that re-qualify by implementing 

new control technology to meet current-day LAER. For any emissions unit that automatically qualifies 

as a Clean Unit under paragraphs (f)(3)(i) and (ii), the Clean Unit designation expires 10 years after the 

effective date, or the date the equipment went into service, whichever is earlier; or, it expires at any time 

the owner or operator fails to comply with the provisions for maintaining Clean Unit designation in 

paragraph (f)(7).

(ii) Emissions units that re-qualify for the Clean Unit designation using an existing control 

technology. For any emissions unit that re-qualifies as a Clean Unit under paragraph (f)(3)(iv), the Clean 

Unit designation expires 10 years after the effective date; or, it expires any time the owner or operator 

fails to comply with the provisions for maintaining the Clean Unit Designation in paragraph (f)(7).
(6) Required title V permit content for a Clean Unit. After the effective date of the Clean Unit 

designation, and in accordance with the provisions of Regulation 61-62.70, “Title V Operating Permit 

Program”, but no later than when the title V permit is renewed, the title V permit for the major stationary 

source must include the following terms and conditions in paragraphs (f)(6)(i) through (vi) related to the 

Clean Unit.

(i) A statement indicating that the emissions unit qualifies as a Clean Unit and identifying the 

pollutant(s) for which this Clean Unit designation applies.

(ii) The effective date of the Clean Unit designation. If this date is not known when the Clean 

Unit designation is initially recorded in the title V permit (e.g., because the air pollution control 

technology is not yet in service), the permit must describe the event that will determine the effective date 

(e.g., the date the control technology is placed into service). Once the effective date is determined, the 

owner or operator must notify the Department of the exact date. This specific effective date must be 

added to the source's title V permit at the first opportunity, such as a modification, revision, reopening, or 

renewal of the title V permit for any reason, whichever comes first, but in no case later than the next 

renewal.

(iii) The expiration date of the Clean Unit designation. If this date is not known when the 

Clean Unit designation is initially recorded into the title V permit (e.g., because the air pollution control 

technology is not yet in service), then the permit must describe the event that will determine the 

expiration date (e.g., the date the control technology is placed into service). Once the expiration date is 

determined, the owner or operator must notify the Department of the exact date. The expiration date must 

be added to the source's title V permit at the first opportunity, such as a modification, revision, reopening, 

or renewal of the title V permit for any reason, whichever comes first, but in no case later than the next 

renewal.

(iv) All emission limitations and work practice requirements adopted in conjunction with the 

LAER, and any physical or operational characteristics that formed the basis for the LAER determination 

(e.g., possibly the emissions unit's capacity or throughput).

(v) Monitoring, recordkeeping, and reporting requirements as necessary to demonstrate that the 

emissions unit continues to meet the criteria for maintaining the Clean Unit designation. (See paragraph 

(f)(7)).

(vi) Terms reflecting the owner or operator's duties to maintain the Clean Unit designation and 

the consequences of failing to do so, as presented in paragraph (f)(7).

(7) Maintaining the Clean Unit designation. To maintain the Clean Unit designation, the owner or 

operator must conform to all the restrictions listed in paragraphs (f)(7)(i) through (iii). This paragraph 

(f)(7) applies independently to each pollutant for which the emissions unit has the Clean Unit designation. 

That is, failing to conform to the restrictions for one pollutant affects Clean Unit designation only for that 

pollutant.

(i) The Clean Unit must comply with the emission limitation(s) and/or work practice 

requirements adopted in conjunction with the LAER that is recorded in the major NSR permit, and 

subsequently reflected in the title V permit.

(A) The owner or operator may not make a physical change in or change in the method of 

operation of the Clean Unit that causes the emissions unit to function in a manner that is inconsistent with 
the physical or operational characteristics that formed the basis for the LAER determination (e.g., 

possibly the emissions unit's capacity or throughput).

(B) The Clean Unit may not emit above a level that has been offset.

(ii) The Clean Unit must comply with any terms and conditions in the title V permit related to 

the unit's Clean Unit designation.

(iii) The Clean Unit must continue to control emissions using the specific air pollution control 

technology that was the basis for its Clean Unit designation. If the emissions unit or control technology is 

replaced, then the Clean Unit designation ends.

(8) Offsets and netting at Clean Units. Emissions changes that occur at a Clean Unit must not be 

included in calculating a significant net emissions increase (that is, must not be used in a "netting 

analysis"), or be used for generating offsets unless such use occurs before the effective date of the Clean 

Unit designation, or after the Clean Unit designation expires; or, unless the emissions unit reduces 

emissions below the level that qualified the unit as a Clean Unit. However, if the Clean Unit reduces 

emissions below the level that qualified the unit as a Clean Unit, then, the owner or operator may generate 

a credit for the difference between the level that qualified the unit as a Clean Unit and the new emission 

limitation if such reductions are surplus, quantifiable, and permanent. For purposes of generating offsets, 

the reductions must also be federally enforceable. For purposes of determining creditable net emissions 

increases and decreases, the reductions must also be enforceable as a practical matter.

(9) Effect of redesignation on the Clean Unit designation. The Clean Unit designation of an 

emissions unit is not affected by redesignation of the attainment status of the area in which it is located. 

That is, if a Clean Unit is located in an attainment area and the area is redesignated to nonattainment, its 

Clean Unit designation is not affected. Similarly, redesignation from nonattainment to attainment does not 

affect the Clean Unit designation. However, if an existing Clean Unit designation expires, it must requalify under the requirements that are currently applicable in the area.

(g) [Reserved] Clean Unit provisions for emissions units that achieve an emission limitation 

comparable to LAER. An owner or operator of a major stationary source has the option of using the 

Clean Unit Test to determine whether emissions increases at a Clean Unit are part of a project that is a 

major modification according to the provisions in paragraphs (g)(1) through (11).

(1) Applicability. The provisions of this paragraph (g) apply to emissions units which do not qualify 

as Clean Units under paragraph (f) of this regulation, but which are achieving a level of emissions control 

comparable to LAER, as determined by the Department in accordance with this paragraph (g).

(2) General provisions for Clean Units. The provisions in paragraphs (g)(2)(i) through (iv) apply to 

a Clean Unit (designated under this paragraph (g)).

(i) Any project for which the owner or operator begins actual construction after the effective 

date of the Clean Unit designation (as determined in accordance with paragraph (g)(5)) and before the 

expiration date (as determined in accordance with paragraph (g)(6)) will be considered to have occurred 

while the emissions unit was a Clean Unit.

(ii) If a project at a Clean Unit does not cause the need for a change in the emission limitations 

or work practice requirements in the permit for the unit that have been determined (pursuant to paragraph 

(g)(4) of this regulation) to be comparable to LAER, and the project would not alter any physical or 

operational characteristics that formed the basis for determining that the emissions unit's control 
technology achieves a level of emissions control comparable to LAER as specified in paragraph 

(g)(8)(iv), the emissions unit remains a Clean Unit.

(iii) If a project causes the need for a change in the emission limitations or work practice 

requirements in the permit for the unit that have been determined (pursuant to paragraph (g)(4)) to be 

comparable to LAER, or the project would alter any physical or operational characteristics that formed 

the basis for determining that the emissions unit's control technology achieves a level of emissions control 

comparable to LAER as specified in paragraph (g)(8)(iv), then the emissions unit loses its designation as 

a Clean Unit upon issuance of the necessary permit revisions (unless the unit re-qualifies as a Clean Unit 

pursuant to paragraph (g)(3)(iv)). If the owner or operator begins actual construction on the project 

without first applying to revise the emissions unit's permit, the Clean Unit designation ends immediately 

prior to the time when actual construction begins.

(iv) A project that causes an emissions unit to lose its designation as a Clean Unit is subject to 

the applicability requirements of paragraphs (b)(1) through (4) and paragraph (b)(6) as if the emissions 

unit were never a Clean Unit.

(3) Qualifying or re-qualifying to use the Clean Unit applicability test. An emissions unit 

qualifies as a Clean Unit when the unit meets the criteria in paragraphs (g)(3)(i) through (iii). After the 

original Clean Unit designation expires in accordance with paragraph (g)(6) or is lost pursuant to 

paragraph (g)(2)(iii), such emissions unit may re-qualify as a Clean Unit under either paragraph (g)(3)(iv), 

or under the Clean Unit provisions in paragraph (f). To re-qualify as a Clean Unit under paragraph 

(g)(3)(iv), the emissions unit must obtain a new permit issued pursuant to the requirements in paragraphs 

(g)(7) and (8) and meet all the criteria in paragraph (g)(3)(iv). The Department will make a separate Clean 

Unit designation for each pollutant emitted by the emissions unit for which the emissions unit qualifies as 

a Clean Unit.

(i) Qualifying air pollution control technologies. Air pollutant emissions from the emissions 

unit must be reduced through the use of air pollution control technology (which includes pollution 

prevention as defined under paragraph (b)(36) of Standard 7 or work practices) that meets both the 

following requirements in paragraphs (g)(3)(i)(A) and (B).

(A) The owner or operator has demonstrated that the emissions unit's control technology is 

comparable to LAER according to the requirements of paragraph (g)(4). However, the emissions unit is 

not eligible for the Clean Unit designation if its emissions are not reduced below the level of a standard, 

uncontrolled emissions unit of the same type (e.g., if the LAER determinations to which it is compared 

have resulted in a determination that no control measures are required).

(B) The owner or operator made an investment to install the control technology. For the 

purpose of this determination, an investment includes expenses to research the application of a pollution 

prevention technique to the emissions unit or to retool the unit to apply a pollution prevention technique.

(ii) Impact of emissions from the unit. The Department must determine that the allowable 

emissions from the emissions unit will not cause or contribute to a violation of any national ambient air 

quality standard or PSD increment, or adversely impact an air quality related value (such as visibility) 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.

(iii) Date of installation. An emissions unit may qualify as a Clean Unit even if the control 

technology, on which the Clean Unit designation is based, was installed before the date these provisions 

become effective. However, for such emissions units, the owner or operator must apply for the Clean Unit 
designation before a period not exceeding twenty-four months following the date these provisions become 

effective. For technologies installed after the plan requirements become effective, the owner or operator 

must apply for the Clean Unit designation at the time the control technology is installed.

(iv) Re-qualifying as a Clean Unit. The emissions unit must obtain a new permit (pursuant to 

requirements in paragraphs (g)(7) and (8)) that demonstrates that the emissions unit's control technology 

is achieving a level of emission control comparable to current-day LAER, and the emissions unit must 

meet the requirements in paragraphs (g)(3)(i)(A) and (g)(3)(ii).

(4) Demonstrating control effectiveness comparable to LAER. The owner or operator may 

demonstrate that the emissions unit's control technology is comparable to LAER for purposes of 

paragraph (g)(3)(i) according to either paragraph (g)(4)(i) or (ii). Paragraph (g)(4)(iii) specifies the time 

for making this comparison.

(i) Comparison to previous LAER determinations. The administrator maintains an on-line 

data base of previous determinations of RACT, BACT, and LAER in the RACT/BACT/LAER 

Clearinghouse (RBLC). The emissions unit's control technology is presumed to be comparable to LAER 

if it achieves an emission limitation that is at least as stringent as any one of the five best-performing 

similar sources for which a LAER determination has been made within the preceding 5 years, and for 

which information has been entered into the RBLC. The Department shall also compare this presumption 

to any additional LAER determinations of which it is aware, and shall consider any information on 

achieved-in-practice pollution control technologies provided during the public comment period, to 

determine whether any presumptive determination that the control technology is comparable to LAER is 

correct.

(ii) The substantially-as-effective test. The owner or operator may demonstrate that the 

emissions unit's control technology is substantially as effective as LAER. In addition, any other person 

may present evidence related to whether the control technology is substantially as effective as LAER 

during the public participation process required under paragraph (g)(7). The Department shall consider 

such evidence on a case-by-case basis and determine whether the emissions unit's air pollution control 

technology is substantially as effective as LAER.

(iii) Time of comparison.

(A) Emissions units with control technologies that are installed before the effective 

date of plan requirements implementing this paragraph. The owner or operator of an emissions unit 

whose control technology is installed before the effective date of plan requirements implementing this 

paragraph (g) may, at its option, either demonstrate that the emission limitation achieved by the emissions 

unit's control technology is comparable to the LAER requirements that applied at the time the control 

technology was installed, or demonstrate that the emission limitation achieved by the emissions unit's 

control technology is comparable to current-day LAER requirements. The expiration date of the Clean 

Unit designation will depend on which option the owner or operator uses, as specified in paragraph (g)(6).

(B) Emissions units with control technologies that are installed after the effective date 

of plan requirements implementing this paragraph. The owner or operator must demonstrate that the 

emission limitation achieved by the emissions unit's control technology is comparable to current-day 

LAER requirements.

(5) Effective date of the Clean Unit designation. The effective date of an emissions unit's Clean 

Unit designation (that is, the date on which the owner or operator may begin to use the Clean Unit Test to 

determine whether a project involving the emissions unit is a major modification) is the date that the 
permit required by paragraph (g)(7) is issued or the date that the emissions unit's air pollution control 

technology is placed into service, whichever is later.

(6) Clean Unit expiration. If the owner or operator demonstrates that the emission limitation 

achieved by the emissions unit's control technology is comparable to the LAER requirements that applied 

at the time the control technology was installed, then the Clean Unit designation expires 10 years from the 

date that the control technology was installed. For all other emissions units, the Clean Unit designation 

expires 10 years from the effective date of the Clean Unit designation, as determined according to 

paragraph (g)(5). In addition, for all emissions units, the Clean Unit designation expires any time the 

owner or operator fails to comply with the provisions for maintaining the Clean Unit designation in 

paragraph (g)(9).

(7) Procedures for designating emissions units as Clean Units. The Department shall designate an 

emissions unit a Clean Unit only by issuing a permit through a permitting program that has been approved 

by the Administrator and that conforms with the requirements of 40 CFR 51.160 through 51.164 

including requirements for public notice of the proposed Clean Unit designation and opportunity for 

public comment. Such permit must also meet the requirements in paragraph (g)(8).

(8) Required permit content. The permit required by paragraph (g)(7) shall include the terms and 

conditions set forth in paragraphs (g)(8)(i) through (vi). Such terms and conditions shall be incorporated 

into the major stationary source's title V permit in accordance with the provisions of the applicable title V 

permit program under 40 CFR part 70 or 40 CFR part 71, but no later than when the title V permit is 

renewed.

(i) A statement indicating that the emissions unit qualifies as a Clean Unit and identifying the 

pollutant(s) for which this designation applies.

(ii) The effective date of the Clean Unit designation. If this date is not known when the 

Department issues the permit (e.g., because the air pollution control technology is not yet in service), then 

the permit must describe the event that will determine the effective date (e.g., the date the control 

technology is placed into service). Once the effective date is known, then the owner or operator must 

notify the Department of the exact date. This specific effective date must be added to the source's title V 

permit at the first opportunity, such as a modification, revision, reopening, or renewal of the title V permit 

for any reason, whichever comes first, but in no case later than the next renewal.

(iii) The expiration date of the Clean Unit designation. If this date is not known when the 

Department issues the permit (e.g., because the air pollution control technology is not yet in service), then 

the permit must describe the event that will determine the expiration date (e.g., the date the control 

technology is placed into service). Once the expiration date is known, then the owner or operator must 

notify the Department of the exact date. The expiration date must be added to the source's title V permit at 

the first opportunity, such as a modification, revision, reopening, or renewal of the title V permit for any 

reason, whichever comes first, but in no case later than the next renewal.

(iv) All emission limitations and work practice requirements adopted in conjunction with 

emission limitations necessary to assure that the control technology continues to achieve an emission 

limitation comparable to LAER, and any physical or operational characteristics that formed the basis for 

determining that the emissions unit's control technology achieves a level of emissions control comparable 

to LAER (e.g., possibly the emissions unit's capacity or throughput).
(v) Monitoring, recordkeeping, and reporting requirements as necessary to demonstrate that the 

emissions unit continues to meet the criteria for maintaining its Clean Unit designation. (See paragraph 

(g)(9).)

(vi) Terms reflecting the owner or operator's duties to maintain the Clean Unit designation and 

the consequences of failing to do so, as presented in paragraph (g)(9).

(9) Maintaining Clean Unit designation. To maintain Clean Unit designation, the owner or 

operator must conform to all the restrictions listed in paragraphs (g)(9)(i) through (v). This paragraph 

(g)(9) applies independently to each pollutant for which the Department has designated the emissions unit 

a Clean Unit. That is, failing to conform to the restrictions for one pollutant affects the Clean Unit 

designation only for that pollutant.

(i) The Clean Unit must comply with the emission limitation(s) and/or work practice 

requirements adopted to ensure that the control technology continues to achieve emission control 

comparable to LAER.

(ii) The owner or operator may not make a physical change in or change in the method of 

operation of the Clean Unit that causes the emissions unit to function in a manner that is inconsistent with 

the physical or operational characteristics that formed the basis for the determination that the control 

technology is achieving a level of emission control that is comparable to LAER (e.g., possibly the 

emissions unit's capacity or throughput).

(iii) The Clean Unit may not emit above a level that has been offset.

(iv) The Clean Unit must comply with any terms and conditions in the title V permit related to 

the unit's Clean Unit designation.

(v) The Clean Unit must continue to control emissions using the specific air pollution control 

technology that was the basis for its Clean Unit designation. If the emissions unit or control technology is 

replaced, then the Clean Unit designation ends.

(10) Offsets and Netting at Clean Units. Emissions changes that occur at a Clean Unit must not be 

included in calculating a significant net emissions increase (that is, must not be used in a "netting 

analysis"), or be used for generating offsets unless such use occurs before the effective date of plan 

requirements adopted to implement this paragraph (g) or after the Clean Unit designation expires; or, 

unless the emissions unit reduces emissions below the level that qualified the unit as a Clean Unit. 

However, if the Clean Unit reduces emissions below the level that qualified the unit as a Clean Unit, then 

the owner or operator may generate a credit for the difference between the level that qualified the unit as a 

Clean Unit and the emissions unit's new emission limitation if such reductions are surplus, quantifiable, 

and permanent. For purposes of generating offsets, the reductions must also be federally enforceable. For 

purposes of determining creditable net emissions increases and decreases, the reductions must also be 

enforceable as a practical matter.

(11) Effect of redesignation on the Clean Unit designation. The Clean Unit designation of an 

emissions unit is not affected by redesignation of the attainment status of the area in which it is located. 

That is, if a Clean Unit is located in an attainment area and the area is redesignated to nonattainment, its 

Clean Unit designation is not affected. Similarly, redesignation from nonattainment to attainment does not 

affect the Clean Unit designation. However, if a Clean Unit's designation expires or is lost pursuant to 

paragraphs (f)(2)(iii) and (g)(2)(iii), it must re-qualify under the requirements that are currently 

applicable.
(h) [Reserved] PCP exclusion procedural requirements. PCPs shall be provided according to the 

provisions in paragraphs (h)(1) through (6).

(1) Before beginning actual construction of a PCP project, the owner or operator shall satisfy the 

requirements of Regulation 61-62.1, Section II.A, “Construction Permit.”

(2) Any project that relies on the PCP exclusion must meet the requirements in paragraphs (h)(2)(i) 

and (ii).

(i) Environmentally beneficial analysis. The environmental benefit from the emission 

reductions of pollutants regulated under the Clean Air Act must outweigh the environmental detriment of 

emissions increases in pollutants regulated under the Clean Air Act. A statement that a technology from 

paragraphs (c)(10)(A) through (F) is being used shall be presumed to satisfy this requirement.

(ii) Air quality analysis. The emissions increases from the project will not cause or contribute 

to a violation of any national ambient air quality standard or PSD increment, or adversely impact an air 

quality related value (such as visibility) 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.

(3) Content of notice or permit application. In the notice or permit application sent to the 

Department, the owner or operator must include, at a minimum, the information listed in paragraphs 

(h)(3)(i) through (v).

(i) A description of the project.

(ii) The potential emissions increases and decreases of any pollutant regulated under the Clean 

Air Act and the projected emissions increases and decreases using the methodology in paragraph (b), that 

will result from the project, and a copy of the environmentally beneficial analysis required by paragraph 

(h)(2)(i).

(iii) A description of monitoring and recordkeeping, and all other methods, to be used on an 

ongoing basis to demonstrate that the project is environmentally beneficial. Methods should be sufficient 

to meet the requirements in Regulation 61-62.70, “Title V Operating Permit Program.”

(iv) A certification that the project will be designed and operated in a manner that is consistent 

with proper industry and engineering practices, in a manner that is consistent with the environmentally 

beneficial analysis and air quality analysis required by paragraphs (h)(2)(i) and (ii), with information 

submitted in the notice or permit application, and in such a way as to minimize, within the physical 

configuration and operational standards usually associated with the emissions control device or strategy, 

emissions of collateral pollutants.

(v) Demonstration that the PCP will not have an adverse air quality impact (e.g., modeling, 

screening level modeling results, or a statement that the collateral emissions increase is included within 

the parameters used in the most recent modeling exercise) as required by paragraph (h)(2)(ii). An air 

quality impact analysis is not required for any pollutant which will not experience a significant emissions 

increase as a result of the project.

(4) Review process for listed projects. Before beginning actual construction of a PCP project that is 

listed in paragraphs (c)(10)(A) through (F), the owner or operator shall meet the requirements of 
Regulation 61-62.1 Section II. A, “Construction Permit” and paragraphs (h)(2) and (h)(3) of this 

regulation.

(5) Permit process for unlisted projects. Before beginning actual construction of a PCP project that 

is not listed in paragraphs (c)(10)(A) through (F) the owner or operator shall meet the requirements of 

paragraphs A. and G.5 of Regulation 61-62.1, Section II, “Construction Permit,” paragraph (d)(6) and 

(d)(7) of this regulation, and (h)(2) and (h)(3) of this regulation. 

(6) Operational requirements. Upon installation of the PCP, the owner or operator must comply 

with the requirements of paragraphs (h)(6)(i) through (iii).

(i) General duty. The owner or operator must operate the PCP in a manner consistent with 

proper industry and engineering practices, in a manner that is consistent with the environmentally 

beneficial analysis and air quality analysis required by paragraphs (h)(2)(i) and (ii), with information 

submitted in the notice or permit application required by paragraph (h)(3), and in such a way as to 

minimize, within the physical configuration and operational standards usually associated with the 

emissions control device or strategy, emissions of collateral pollutants.

(ii) Recordkeeping. The owner or operator must maintain copies on site of the environmentally 

beneficial analysis, the air quality impacts analysis, and monitoring and other emission records to prove 

that the PCP operated consistent with the general duty requirements in paragraph (h)(6)(i).

(iii) Permit requirements. The owner or operator must comply with any provisions in the planapproved permit or title V permit related to use and approval of the PCP exclusion.

(iv) Generation of emission reduction credits. Emission reductions created by a PCP shall not 

be included in calculating a significant net emissions increase, or be used for generating offsets, unless the 

emissions unit further reduces emissions after qualifying for the PCP exclusion (e.g., taking an 

operational restriction on the hours of operation). The owner or operator may generate a credit for the 

difference between the level of reduction which was used to qualify for the PCP exclusion and the new 

emission limitation if such reductions are surplus, quantifiable, and permanent. For purposes of 

generating offsets, the reductions must also be federally enforceable. For purposes of determining 

creditable net emissions increases and decreases, the reductions must also be enforceable as a practical 

matter.

No change to (i) through (j) 
ATTACHMENT 2 

SOUTH CAROLINA 

DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL 

AIR POLLUTION CONTROL REGULATIONS AND STANDARDS 

REGULATION 61-62.5 

AIR POLLUTION CONTROL STANDARDS 

STANDARD NO. 7 

PREVENTION OF SIGNIFICANT DETERIORATION

(a)(1) Reserved. 

 (2) Applicability procedures. 

 (i) The requirements of this regulation apply to the construction of any new major stationary source (as 

defined in paragraph (b)(32)) or any project at an existing major stationary source in an area designated as 

attainment or unclassifiable under 40 CFR 81.341. 

 (ii) The requirements of paragraphs (j) through (r) apply to the construction of any new major 

stationary source or the major modification of any existing major stationary source, except as this section 

otherwise provides. 

 (iii) No new major stationary source or major modification to which the requirements of paragraphs (j) 

through (r)(5) apply shall begin actual construction without a permit that states that the major stationary 

source or major modification will meet those requirements. The Department has authority to issue any such 

permit. 

 (iv) The requirements of the program will be applied in accordance with the principles set out in 

paragraphs (a)(2)(iv)(a) through (f). 

 (a) Except as otherwise provided in paragraphs (a)(2)(v) and (vi), and consistent with the definition 

of major modification contained in paragraph (b)(30), a project is a major modification for a regulated New 

Source Review (NSR) pollutant if it causes two types of emissions increases – a significant emissions 

increase (as defined in paragraph (b)(50)), and a significant net emissions increase (as defined in paragraphs 

(b)(34) and (b)(49)). 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. 

 (b) The procedure for calculating (before beginning actual construction) whether a significant 

emissions increase (i.e., the first step of the process) will occur depends upon the type of emissions units 

being modified, according to paragraphs (a)(2)(iv)(c) through (f). The procedure for calculating (before 

beginning actual construction) whether a significant net emissions increase will occur at the major stationary 

source (i.e., the second step of the process) is contained in the definition in paragraph (b)(34). Regardless of 

any such preconstruction projections, a major modification results if the project causes a significant emissions 

increase and a significant net emissions increase. 

 (c) Actual-to-projected-actual applicability test for projects that only involve existing 

April 24, 2009 62.5, St. 7 - Page 1
emissions units. A significant emissions increase of a regulated NSR pollutant is projected to occur if the 

sum of the difference between the projected actual emissions (as defined in paragraph (b)(41)) and the 

baseline actual emissions (as defined in paragraphs (b)(4)(i) and (ii)), for each existing emissions unit, equals 

or exceeds the significant amount for that pollutant (as defined in paragraph (b)(49)). 

 (d) Actual-to-potential test for projects that only involve construction of a new emissions 

unit(s). A significant emissions increase of a regulated NSR pollutant is projected to occur if the sum of the 

difference between the potential to emit (as defined in paragraph (b)(37)) from each new emissions unit 

following completion of the project and the baseline actual emissions (as defined in paragraph (b) (4)(iii)) of 

these units before the project equals or exceeds the significant amount for that pollutant (as defined in 

paragraph (b)(49)). 

 (e) [Reserved] 

 (f) 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 paragraphs (a)(2)(iv)(c) and (d) as applicable with respect 

to each emissions unit, equals or exceeds, the significant amount for that pollutant (as defined in paragraph 

(b)(49)). 

 (v) For any major stationary source for a Plantwide Applicability Limitation (PAL) for a regulated NSR 

pollutant, the major stationary source shall comply with the requirements under paragraph (aa). 

(b) Definitions. 

 For the purposes of this regulation: 

 (1)(i) “Actual emissions” means the actual rate of emissions of a regulated NSR pollutant from an 

emissions unit, as determined in accordance with paragraphs (b)(1)(ii) through (iv), except that this 

definitions shall not apply for calculating whether a significant emissions increase has occurred, or for 

establishing a PAL under paragraph (aa). Instead, paragraphs (b)(41) and (b)(4) shall apply for those 

purposes. 

 (ii) In general, actual emissions as of a particular date shall equal the average rate, in tons per year, 

at which the unit actually emitted the pollutant during a consecutive 24-month period which precedes the 

particular date and which is representative of normal source operation. The Department shall allow the use of 

a different time period upon a determination that it is more representative of normal source operation. Actual 

emissions shall be calculated using the unit's actual operating hours, production rates, and types of materials 

processed, stored, or combusted during the selected time period. 

 (iii) The Department may presume that source-specific allowable emissions for the unit are 

equivalent to the actual emissions of the unit. 

 (iv) 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. 

 

 (2) “Adverse impact on visibility” means visibility impairment which interferes with the management, 

protection, preservation or enjoyment of the visitor's visual experience of the Federal Class I area. This 

determination must be made on a case-by-case basis taking into account the geographic extent, intensity, 

duration, frequency and time of visibility impairment, and how these factors correlate with (1) times of visitor 

use of the Federal Class I area, and (2) the frequency and timing of natural conditions that reduce visibility. 

April 24, 2009 62.5, St. 7 - Page 2
 (3)“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 federally enforceable limits which restrict the 

operating rate, or hours of operation, or both) and the most stringent of the following: 

 (i) The applicable standards as set forth in 40 CFR 60 and 61; 

 (ii) The applicable State Implementation Plan emissions limitation, including those with a future 

compliance date; or 

 (iii) The emissions rate specified as a federally enforceable permit condition, including those with a 

future compliance date. 

 (4) “Baseline actual emissions” means the rate of emissions, in tons per year, of a regulated NSR 

pollutant, as determined in accordance with paragraphs (b)(4)(i) through (iv). 

 (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 Department shall allow the use of a different time period upon a 

determination that it is more representative of normal source operation. 

 (a) The average rate shall include fugitive emissions to the extent quantifiable, and emissions 

associated with startups and shutdowns. 

 (b) 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. 

 (c) For a regulated NSR pollutant, when a project involves multiple emissions units, only one 

consecutive 24-month period must be used to determine the baseline actual emissions for the emissions units 

being changed. A different consecutive 24-month period can be used for each regulated NSR pollutant. 

 (d) 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 paragraph (b)(4)(i)(b). 

 

 (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 Department for a permit required 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. The Department reserves the right to determine if the 24-

month period selected is appropriate. 

 (a) The average rate shall include fugitive emissions to the extent quantifiable, and emissions 

associated with startups and shutdowns. 

 (b) 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 

April 24, 2009 62.5, St. 7 - Page 3
consecutive 24-month period. 

 (c) 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 CFR 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 40 CFR 51.165(a)(3)(ii)(G). 

 (d) For a regulated NSR pollutant, when a project involves multiple emissions units, only one 

consecutive 24-month period must be used to determine the baseline actual emissions for all the emissions 

units being changed. A different consecutive 24-month period can be used for each regulated NSR pollutant. 

 (e) 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 paragraphs (b)(4)(ii)(b) and (c). 

 (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. 

 (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 paragraph (b)(4)(i), for 

other existing emissions units in accordance with the procedures contained in paragraph (b)(4)(ii), and for a 

new emissions unit in accordance with the procedures contained in paragraph (b)(4)(iii). 

 (5)(i) “Baseline area” means any intrastate area (and every part thereof) designated as attainment or 

unclassifiable under section 107(d)(1)(D) or (E) of the Clean Air Act in which the major source or major 

modification establishing the minor source baseline date would construct or would have an air quality impact 

equal to or greater than 1 μg/m3

 (annual average) of the pollutant for which the minor source baseline date is 

established. 

 (ii) Area redesignations under section 107(d)(1)(D) or (E) of the Clean Air Act cannot intersect or be 

smaller than the area of impact of any major stationary source or major modification which: 

 (a) Establishes a minor source baseline date; or 

 (b) Is subject to 40 CFR 51.166 and would be constructed in the same state as the state proposing 

the redesignation. 

 (iii) Any baseline area established originally for the TSP increments shall remain in effect and shall 

apply for purposes of determining the amount of available PM10 increments, except that such baseline area 

shall not remain in effect if the Department rescinds the corresponding minor source baseline date in 

accordance with paragraph (b)(31)(iv). 

 (6)(i) “Baseline concentration” means that ambient concentration level that exists in the baseline area at 

the time of the applicable minor source baseline date. A baseline concentration is determined for each 

pollutant for which a minor source baseline date is established and shall include: 

 (a) The actual emissions, as defined in paragraph (b)(1), representative of sources in existence on 

April 24, 2009 62.5, St. 7 - Page 4
the applicable minor source baseline date, except as provided in paragraph (b) (6)(ii); and 

 (b) The allowable emissions of major stationary sources that commenced construction before the 

major source baseline date, but were not in operation by the applicable minor source baseline date. 

 (ii) The following will not be included in the baseline concentration and will affect the applicable 

maximum allowable increase(s): 

 (a) Actual emissions, as defined in paragraph (b)(1), from any major stationary source on which 

construction commenced after the major source baseline date; and 

 (b) Actual emissions increases and decreases, as defined in paragraph (b)(1), at any stationary 

source occurring after the minor source baseline date. 

 (7)“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 underground pipework and construction of permanent storage 

structures. With respect to a change in method of operations, this term refers to those on-site activities other 

than preparatory activities which mark the initiation of the change. 

 (8) “Best available control technology” means an emissions limitation (including a visible emission 

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 Department, on a caseby-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 CFR 60 and 61. If the Department 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 best available control 

technology. 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. 

 (9) “Building, structure, facility, or installation” means all of the pollutant-emitting activities which 

belong to the same industrial grouping, are located on one or more contiguous or adjacent properties, and are 

under the control of the same person (or persons under common control) except the activities of any vessel. 

Pollutant-emitting activities shall be considered as part of the same industrial grouping if they belong to the 

same "Major Group" (i.e., which have the same first two digit code) as described in the Standard Industrial 

Classification Manual, 1972, as amended by the 1977 Supplement (U.S. Government Printing Office stock 

numbers 4101-0066 and 003-005-00176-0, respectively). 

 (10) “Clean coal technology” means any technology, including technologies applied at the 

precombustion, combustion, or post combustion stage, at a new or existing facility which will achieve 

significant reductions in air emissions of sulfur dioxide or oxides of nitrogen associated with the utilization of 

coal in the generation of electricity, or process steam which was not in widespread use as of November 15, 

1990. 

 (11) “Clean coal technology demonstration project” means a project using funds appropriated under the 

April 24, 2009 62.5, St. 7 - Page 5
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. 

 (12) [Reserved] 

 (13) “Commence” as applied to construction of a major stationary source or major modification means 

that the owner or operator has all necessary preconstruction approvals or permits and either has: 

 (i) Begun, or caused to begin, a continuous program of actual on-site construction of the source, to be 

completed within a reasonable time; or 

 (ii) Entered into binding agreements or contractual obligations, which cannot be cancelled or modified 

without substantial loss to the owner or operator, to undertake a program of actual construction of the source 

to be completed within a reasonable time. 

 (14) “Complete” means in reference to an application for a permit, that the application contains all of the 

information necessary for processing the application. 

 (15) “Construction” means any physical change or change in the method of operation (including 

fabrication, erection, installation, demolition, or modification of an emissions unit) that would result in a 

change in actual emissions. 

 (16) “Continuous emissions monitoring system (CEMS)” means all of the equipment that may be 

required to meet the data acquisition and availability requirements of this regulation, to sample, condition (if 

applicable), analyze, and provide a record of emissions on a continuous basis. 

 (17) “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). 

 (18) “Continuous parameter monitoring system (CPMS)” means all of the equipment necessary to 

meet the data acquisition and availability requirements of this regulation, 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. 

 (19) “Electric utility steam generating unit” 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. 

 (20) “Emissions unit” means any part of a stationary source that emits or would have the potential to emit 

any regulated NSR pollutant and includes an electric utility steam generating unit as defined in paragraph 

(b)(19). For purposes of this regulation, there are two types of emissions units as described in paragraphs 

(b)(20)(i) and (ii). 

 (i) A new emissions unit is any emissions unit that is (or will be) newly constructed and that has existed 

for less than 2 years from the date such emissions unit first operated. 

April 24, 2009 62.5, St. 7 - Page 6
 (ii) An existing emissions unit is any emissions unit that does not meet the requirements in paragraph 

(b)(20)(i). A replacement unit, as defined in paragraph (b)(45), is an existing emissions unit. 

 (21) “Federal Land Manager” means, with respect to any lands in the United States, the Secretary of the 

department with authority over such lands. 

 (22) “Federally enforceable” means all limitations and conditions which are enforceable by the 

Administrator, including those requirements developed pursuant to 40 CFR 60 and 61, requirements within 

any applicable State implementation plan, any permit requirements established pursuant to 40 CFR 52.21 or 

under regulations approved pursuant to 40 CFR 51, subpart I, including operating permits issued under an 

EPA-approved program that is incorporated into the State implementation plan and expressly requires 

adherence to any permit issued under such program. 

 (23) “Fugitive emissions” means those emissions which could not reasonably pass through a stack, 

chimney, vent, or other functionally equivalent opening. 

 (24) “High terrain” means any area having an elevation 900 feet or more above the base of the stack of a 

source. 

 (25) “Indian Governing Body” means the governing body of any tribe, band, or group of Indians subject 

to the jurisdiction of the United States and recognized by the United States as possessing power of self 

government. 

 (26) “Indian Reservation” means any federally recognized reservation established by Treaty, Agreement, 

Executive Order, or Act of Congress. 

 (27) “Innovative control technology” means any system of air pollution control that has not been 

adequately demonstrated in practice, but would have a substantial likelihood of achieving greater continuous 

emissions reduction than any control system in current practice or of achieving at least comparable reductions 

at lower cost in terms of energy, economics, or nonair quality environmental impacts. 

 (28) “Low terrain” means any area other than high terrain. 

 (29) “Lowest achievable emission rate (LAER)” is as defined in paragraph (c)(5) of Regulation 61-62.5 

Standard 7.1, “Nonattainment New Source Review.” 

 (30)(i) “Major modification” means any physical change in or change in the method of operation of a 

major stationary source that would result in: a significant emissions increase (as defined in paragraph (b)(50)) 

of a regulated NSR pollutant (as defined in paragraph (b)(44)); and a significant net emissions increase of that 

pollutant from the major stationary source. 

 (ii) Any significant emissions increase (as defined in paragraph (b)(50)) from any emissions units or net 

emissions increase (as defined in paragraph (b)(34)) at a major stationary source that is significant for volatile 

organic compounds or oxides of nitrogen shall be considered significant for ozone. 

 (iii) A physical change or change in the method of operation shall not include: 

 (a) Routine maintenance, repair and replacement; 

 (b) Use of an alternative fuel or raw material by reason of an order under sections 2(a) and (b) of the 

April 24, 2009 62.5, St. 7 - Page 7
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; 

 (c) Use of an alternative fuel by reason of an order or rule under section 125 of the Clean Air Act; 

 (d) Use of an alternative fuel at a steam generating unit to the extent that the fuel is generated from 

municipal solid waste; 

 (e) Use of an alternative fuel or raw material by a stationary source which: 

 (1) The source was capable of accommodating before January 6, 1975, unless such change 

would be prohibited under any federally enforceable permit condition which was established after January 6, 

1975 pursuant to 40 CFR 52.21 or under regulations approved pursuant to 40 CFR subpart I or 40 CFR 

51.166; or 

 (2) The source is approved to use under any permit issued under 40 CFR 52.21 or under 

regulations approved pursuant to 40 CFR 51.166; 

 (f) An increase in the hours of operation or in the production rate, unless such change would be 

prohibited under any federally enforceable permit condition which was established after January 6, 1975, 

pursuant to 40 CFR 52.21 or under regulations approved pursuant to 40 CFR subpart I or 40 CFR 51.166. 

 (g) Any change in ownership at a stationary source. 

 (h) [Reserved] 

 

 (i) The installation, operation, cessation, or removal of a temporary clean coal technology 

demonstration project, provided that the project complies with: 

 (1) The State implementation plan for the State in which the project is located, and 

 (2) Other requirements necessary to attain and maintain the national ambient air quality 

standards during the project and after it is terminated. 

 (j) The installation or operation of a permanent clean coal technology demonstration project that 

constitutes repowering, provided that the project does not result in an increase in the potential to emit of any 

regulated pollutant emitted by the unit. This exemption shall apply on a pollutant-by-pollutant basis. 

 (k) The reactivation of a very clean coal-fired electric utility steam generating unit. 

 (iv) This definition shall not apply with respect to a particular regulated NSR pollutant when the major 

stationary source is complying with the requirements under paragraph (aa) for a PAL for that pollutant. 

Instead, the definition at paragraph (aa)(2)(viii) shall apply. 

 (31)(i) “Major source baseline date” means: 

 (a) In the case of particulate matter and sulfur dioxide, January 6, 1975, and 

 (b) In the case of nitrogen dioxide, February 8, 1988. 

 (ii) “Minor source baseline date” means the earliest date after the trigger date on which a major 

April 24, 2009 62.5, St. 7 - Page 8
stationary source or a major modification subject to 40 CFR 52.21 or to regulations approved pursuant to 40 

CFR 51.166 submits a complete application under the relevant regulations. The trigger date is: 

 (a) In the case of particulate matter and sulfur dioxide, August 7, 1977, and 

 (b) In the case of nitrogen dioxide, February 8, 1988. 

 (iii) The baseline date is established for each pollutant for which increments or other equivalent 

measures have been established if: 

 (a) The area in which the proposed source or modification would construct is designated as 

attainment or unclassifiable under section 107(d)(i)(D) or (E) of the Federal Clean Air Act for the pollutant on 

the date of its complete application under 40 CFR 52.21; and 

 (b) In the case of a major stationary source, the pollutant would be emitted in significant amounts, 

or, in the case of a major modification, there would be a significant net emissions increase of the pollutant. 

 (iv) Any minor source baseline date established originally for the TSP increments shall remain in effect 

and shall apply for purposes of determining the amount of available PM10 increments, except that the 

Department shall rescind a minor source baseline date where it can be shown, to the satisfaction of the 

Department, that the emissions increase from the major stationary source, or net emissions increase from the 

major modification, responsible for triggering that date did not result in a significant amount of PM10

emissions. 

 (32)(i) “Major stationary source” means: 

 (a) Any of the following stationary sources of air pollutants which emits, or has the potential to 

emit, 100 tons per year or more of any regulated NSR pollutant: Fossil fuel-fired steam electric plants of more 

than 250 million British thermal units per hour heat input, coal cleaning plants (with thermal dryers), kraft 

pulp mills, portland cement plants, primary zinc smelters, iron and steel mill plants, primary aluminum ore 

reduction plants, primary copper smelters, municipal incinerators capable of charging more than 250 tons of 

refuse per day, hydrofluoric, sulfuric, and nitric acid plants, petroleum refineries, lime plants, phosphate rock 

processing plants, coke oven batteries, sulfur recovery plants, carbon black plants (furnace process), primary 

lead smelters, fuel conversion plants, sintering plants, secondary metal production plants, chemical process 

plants (which does not include ethanol production facilities that produce ethanol by natural fermentation 

included in NAICS codes 325193 or 312140), fossil fuel boilers (or combinations thereof) totaling more than 

250 million British thermal units per hour heat input, petroleum storage and transfer units with a total storage 

capacity exceeding 300,000 barrels, taconite ore processing plants, glass fiber processing plants, and charcoal 

production plants; 

 (b) Notwithstanding the stationary source size specified in paragraph (b)(32)(i), any stationary 

source which emits, or has the potential to emit, 250 tons per year or more of a regulated NSR pollutant; or 

 (c) Any physical change that would occur at a stationary source not otherwise qualifying under 

paragraph (b)(32), as a major stationary source, if the changes would constitute a major stationary source by 

itself. 

 (ii) A major stationary source that is major for volatile organic compounds or oxides of nitrogen shall 

be considered major for ozone. 

 (iii) The fugitive emissions of a stationary source shall not be included in determining for any of the 

April 24, 2009 62.5, St. 7 - Page 9
purposes of this regulation whether it is a major stationary source, unless the source belongs to one of the 

following categories of stationary sources: 

 (a) Coal cleaning plants (with thermal dryers); 

 (b) Kraft pulp mills; 

 (c) Portland cement plants; 

 (d) Primary zinc smelters; 

 (e) Iron and steel mills; 

 (f) Primary aluminum ore reduction plants; 

 (g) Primary copper smelters; 

 (h) Municipal incinerators capable of charging more than 250 tons of refuse per day; 

 (i) Hydrofluoric, sulfuric, or nitric acid plants; 

 (j) Petroleum refineries; 

 (k) Lime plants; 

 (l) Phosphate rock processing plants; 

 (m) Coke oven batteries; 

 (n) Sulfur recovery plants; 

 (o) Carbon black plants (furnace process); 

 (p) Primary lead smelters; 

 (q) Fuel conversion plants; 

 (r) Sintering plants; 

 (s) Secondary metal production plants; 

 (t) Chemical process plants – The term chemical processing plant shall not include ethanol 

production facilities that produce ethanol by natural fermentation included in NAICS codes 325193 or 

312140; 

 (u) Fossil-fuel boilers (or combination thereof) totaling more than 250 million British thermal units 

per hour heat input; 

 (v) Petroleum storage and transfer units with a total storage capacity exceeding 300,000 barrels; 

 (w) Taconite ore processing plants; 

April 24, 2009 62.5, St. 7 - Page 10
 (x) Glass fiber processing plants; 

 (y) Charcoal production plants; 

 (z) Fossil fuel-fired steam electric plants of more that 250 million British thermal units per hour heat 

input, and 

 (aa) Any other stationary source category which, as of August 7, 1980, is being regulated under 

section 111 or 112 of the Federal Clean Air Act. 

 (33) “Necessary preconstruction approvals or permits” means those permits or approvals required 

under federal air quality control laws and regulations and those air quality control laws and regulations which 

are part of the applicable State Implementation Plan. 

 (34)(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: 

 (a) The increase in emissions from a particular physical change or change in method of operation at 

a stationary source as calculated pursuant to paragraph (a)(2)(iv); and 

 (b) 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 paragraph (b)(34)(i)(b) shall be determined as provided in 

paragraph (b)(4), except that paragraphs (b)(4)(i)(c) and (b)(4)(ii)(d) shall not apply. 

 (ii) An increase or decrease in actual emissions is contemporaneous with the increase from the 

particular change only if it occurs between: 

 (a) The date five years before construction on the particular change commences; and 

 (b) The date that the increase from the particular change occurs. 

 (iii) An increase or decrease in actual emissions is creditable only if: 

 (a) The Department has not relied on it in issuing a permit for the source under this section, which 

permit is in effect when the increase in actual emissions from the particular change occurs; and 

 (b) [Reserved] 

 (c) It occurs within five years before the date that the increase from the particular change occurs. 

 (iv) An increase or decrease in actual emissions of sulfur dioxide, particulate matter, or nitrogen oxide, 

that occurs before the applicable minor source baseline date is creditable only if it is required to be considered 

in calculating the amount of maximum allowable increases remaining available 

 (v) An increase in actual emissions is creditable only to the extent that the new level of actual 

emissions exceeds the old level. 

 (vi) A decrease in actual emissions is creditable only to the extent that: 

April 24, 2009 62.5, St. 7 - Page 11
 (a) The old level of actual emissions or the old level of allowable emissions, whichever is lower, 

exceeds the new level of actual emissions; 

 (b) It is federally enforceable at and after the time that actual construction on the particular change 

begins; and 

 (c) It has approximately the same qualitative significance for public health and welfare as that 

attributed to the increase from the particular change. 

 (vii) [Reserved] 

 (viii) 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, not to exceed 

180 days. 

 (ix) Paragraph (b)(1)(ii) shall not apply for determining creditable increases and decreases. 

 (35) [Reserved]

 (36) [Reserved]

 (37) “Potential to emit” means the maximum capacity of a stationary source to emit a pollutant under its 

physical and operational design. Any physical or operational limitation on the capacity of the source to emit a 

pollutant, including air pollution control equipment and restrictions on hours of operation or on the type or 

amount of material combusted, stored, or processed, shall be treated as part of its design if the limitation or 

the effect it would have on emissions is federally enforceable. Secondary emissions do not count in 

determining the potential to emit of a stationary source. 

 (38) “Predictive emissions monitoring system (PEMS)” means all of the equipment necessary 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 

calculate and record the mass emissions rate (for example, lb/hr) on a continuous basis. 

 (39) “Prevention of Significant Deterioration (PSD) program” means the EPA-implemented major 

source preconstruction permit programs or a major source preconstruction permit program that has been 

approved by the Administrator and incorporated into the State Implementation Plan pursuant to 40 CFR 

51.166 to implement the requirements of that section. Any permit issued under such a program is a major 

NSR permit. 

 (40) “Project” means a physical change in, or change in the method of operation of, an existing major 

stationary source. 

 (41)(i) “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 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. 

 (ii) In determining the projected actual emissions under paragraph (b)(41)(i) (before beginning actual 

April 24, 2009 62.5, St. 7 - Page 12
construction), the owner or operator of the major stationary source: 

 (a) 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 State Implementation Plan; and 

 (b) Shall include fugitive emissions to the extent quantifiable and emissions associated with startups 

and shutdowns; and 

 (c) 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 paragraph (b)(4) 

and that are also unrelated to the particular project, including any increased utilization due to product demand 

growth; or 

 (d) In lieu of using the method set out in paragraph (b)(41)(ii)(a) through (c), may elect to use the 

emissions unit's potential to emit, in tons per year, as defined under paragraph (b)(37). 

 (42) “Reactivation of a very clean coal-fired electric utility steam generating unit” means any physical 

change or change in the method of operation associated with the commencement of commercial operations by 

a coal-fired utility unit after a period of discontinued operation where the unit: 

 (i) Has not been in operation for the two-year period prior to the enactment of the Clean Air Act 

Amendments of 1990, and the emissions from such unit continue to be carried in the permitting authority's 

emissions inventory at the time of enactment; 

 (ii) Was equipped prior to shut-down with a continuous system of emissions control that achieves a 

removal efficiency for sulfur dioxide of no less than 85 percent and a removal efficiency for particulates of no 

less than 98 percent; 

 (iii) Is equipped with low-NOx burners prior to the time of commencement of operations following 

reactivation; and 

 (iv) Is otherwise in compliance with the requirements of the Clean Air Act. 

 (43) “Reasonably available control technology (RACT)” is as defined in 40 CFR 51.100(o). 

 (44) “Regulated NSR pollutant,” for purposes of this regulation, means the following: 

 (i) Any pollutant for which a national ambient air quality standard has been promulgated and any 

constituents or precursors for such pollutants identified by the Administrator (e.g., volatile organic 

compounds are precursors for ozone); 

 (ii) Any pollutant that is subject to any standard promulgated under section 111 of the Clean Air Act; 

 (iii) Any Class I or II substance subject to a standard promulgated under or established by title VI of the 

Clean Air Act; or 

 (iv) Any pollutant that otherwise is subject to regulation under the Clean Air Act; except that any or all 

hazardous air pollutants either listed in section 112 of the Clean Air Act or added to the list pursuant to 

April 24, 2009 62.5, St. 7 - Page 13
section 112(b)(2) of the Clean Air Act, which have not been delisted pursuant to section 112(b)(3) of the 

Clean Air Act, are not regulated NSR pollutants unless the listed hazardous air pollutant is also regulated as a 

constituent or precursor of a general pollutant listed under section 108 of the Clean Air Act. 

 (45) “Replacement unit” means an emissions unit for which all the criteria listed in paragraphs 

(b)(45)(i) through (iv) are met. No credible emission reductions shall be generated from shutting down the 

existing emissions unit that is replaced. 

 (i)The emissions unit is a reconstructed unit within the meaning of 40 CFR 60.15(b)(1), or the 

emissions unit completely takes the place of an existing emissions unit. 

 (ii) The emissions unit is identical to or functionally equivalent to the replaced emissions unit. 

 (iii) The replacement does not alter the basic design parameters of the process unit. 

 (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. 

 (46)(i) “Repowering” means replacement of an existing coal-fired boiler with one of the following clean 

coal technologies: atmospheric or pressurized fluidized bed combustion, integrated gasification combined 

cycle, magnetohydrodynamics, direct and indirect coal-fired turbines, integrated gasification fuel cells, or as 

determined by the Administrator, in consultation with the Secretary of Energy, a derivative of one or more of 

these technologies, and any other technology capable of controlling multiple combustion emissions 

simultaneously with improved boiler or generation efficiency and with significantly greater waste reduction 

relative to the performance of technology in widespread commercial use as of November 15, 1990. 

 (ii) Repowering shall also include any oil and/or gas-fired unit which has been awarded clean coal 

technology demonstration funding as of January 1, 1991, by the Department of Energy. 

 (iii) The Department shall give expedited consideration to permit applications for any source that 

satisfies the requirements of this subsection and is granted an extension under section 409 of the Clean Air 

Act. 

 

 (47) Reserved 

 (48) “Secondary emissions” means emissions which would occur as a result of the construction or 

operation of a major stationary source or major modification, but do not come from the major stationary 

source or major modification itself. For the purposes of this section, secondary emissions must be specific, 

well defined, quantifiable, and impact the same general areas the stationary source modification which causes 

secondary emissions. Secondary emissions include emissions from any offsite support facility which would 

not be constructed or increase its emissions except as a result of the construction or operation of the major 

stationary source or major modification. Secondary emissions do not include any emissions which come 

directly from a mobile source, such as emissions from the tailpipe of a motor vehicle, from a train, from a 

vessel; or from the following: 

 (i) Emissions from ships or trains coming to or from the new or modified stationary source; and 

 (ii) Emissions from any offsite support facility which would not otherwise be constructed or increase its 

emissions as a result of the construction or operation of the major stationary source or major modification. 

April 24, 2009 62.5, St. 7 - Page 14
 (49)(i) “Significant” means, in reference to a net emissions increase or the potential of a source to emit 

any of the following pollutants, a rate of emissions that would equal or exceed any of the following rates: 

Pollutant and Emissions Rate 

 Carbon monoxide: 100 tons per year (tpy) 

 Nitrogen oxides: 40 tpy 

 Sulfur dioxide: 40 tpy 

 Particulate matter: 

 25 tpy of particulate matter emissions; 

 15 tpy of PM10 emissions 

 Ozone: 40 tpy of volatile organic compounds or oxides of nitrogen 

 Lead: 0.6 tpy 

 Fluorides: 3 tpy 

 Sulfuric acid mist: 7 tpy 

 Hydrogen sulfide (H2S): 10 tpy 

 Total reduced sulfur (including H2S): 10 tpy 

 Reduced sulfur compounds (including H2S): 10 tpy 

 Municipal waste combustor organics (measured as total tetra- through octa-chlorinated dibenzo-p-dioxins 

and dibenzofurans): 3.2 x 10-6 megagrams per year (3.5 x 10-6 tons per year). 

 Municipal waste combustor metals (measured as particulate matter): 14 megagrams per year (15 tons per 

year) 

 Municipal waste combustor acid gases (measured as sulfur dioxide and hydrogen chloride): 36 megagrams 

per year (40 tons per year) 

 Municipal solid waste landfills emissions (measured as nonmethane organic compounds): 45 megagrams 

per year (50 tons per year) 

 (ii) “Significant” means, in reference to a net emissions increase or the potential of a source to emit a 

regulated NSR pollutant that paragraph (b)(49)(i), does not list, any emissions rate. 

 (iii) Notwithstanding paragraph (b)(49)(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 μg/m3

, (24-hour 

average). 

 (50) “Significant emissions increase” means, for a regulated NSR pollutant, an increase in emissions that 

April 24, 2009 62.5, St. 7 - Page 15
is significant (as defined in paragraph (b)(49)) for that pollutant. 

 (51) “Stationary source” means any building, structure, facility, or installation which emits or may emit a 

regulated NSR pollutant. 

 (52) “Temporary clean coal technology demonstration project” means a clean coal technology 

demonstration project that is operated for a period of 5 years or less, and which complies with the State 

implementation plans for the State in which the project is located and other requirements necessary to attain 

and maintain the national ambient air quality standards during the project and after it is terminated. 

 (53) “Volatile organic compounds (VOC)” is as defined in Regulation 61-62.1, Section I, Definitions. 

(c) Ambient air increments.

 In areas designated as Class I, II or III, increases in pollutant concentration over the baseline concentration 

shall be limited to the following: 

CLASS I 

Pollutant Maximum Allowable Increase 

(micrograms per cubic meter) 

PM10, annual arithmetic mean 4 Particulate matter: PM10, 24-hr maximum 8 

annual arithmetic mean 2 

Sulfur dioxide: 24-hr maximum 5 

3-hr maximum 25 

Nitrogen dioxide: annual arithmetic mean 2.5 

CLASS II 

Pollutant Maximum Allowable Increase 

(micrograms per cubic meter) 

PM10, annual arithmetic mean 17 Particulate matter: PM10, 24-hr maximum 30 

annual arithmetic mean 20 

Sulfur dioxide: 24-hr maximum 91 

3-hr maximum 512 

Nitrogen dioxide: annual arithmetic mean 25 

CLASS III 

Pollutant Maximum Allowable Increase 

(micrograms per cubic meter) 

PM10, annual arithmetic mean 34 Particulate matter: PM10, 24-hr maximum 60 

annual arithmetic mean 40 

Sulfur dioxide: 24-hr maximum 182 

3-hr maximum 700 

Nitrogen dioxide: annual arithmetic mean 50 

April 24, 2009 62.5, St. 7 - Page 16
 For any period other than an annual period, the applicable maximum allowable increase may be exceeded 

during one such period per year at any one location. 

(d) Ambient air ceilings. 

 No concentration of a pollutant shall exceed: 

 (1) The concentration permitted under the national secondary ambient air quality standard, or 

 (2) The concentration permitted under the national primary ambient air quality standard, whichever 

concentration is lowest for the pollutant for a period of exposure. 

(e) Restrictions on area classifications. 

 (1) All of the following areas which were in existence on August 7, 1977, shall be Class I areas and may 

not be redesignated: 

 (i) International parks, 

 (ii) National wilderness areas which exceed 5,000 acres in size, 

 (iii) National memorial parks which exceed 5,000 acres in size, and 

 (iv) National parks which exceed 6,000 acres in size. 

 (2) Areas which were redesignated as Class I under regulations promulgated before August 7, 1977, shall 

remain Class I, but may be redesignated as provided in this section. 

 (3) Any other area, unless otherwise specified in the legislation creating such an area, is initially 

designated Class II, but may be redesignated as provided in this section. 

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

 (i) An area which 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 

 (ii) A national park or national wilderness area established after August 7, 1977, which exceeds 10,000 

acres in size. 

(f) [Reserved] 

(g) Redesignation. 

 (1) All areas (except as otherwise provided under paragraph (e)) are designated Class II as of December 5, 

1974. Redesignation (except as otherwise precluded by paragraph (e)) may be proposed by the respective 

States or Indian Governing Bodies, as provided below, subject to approval by the Administrator as a revision 

to the applicable State implementation plan. 

 (2) The State may submit to the Administrator a proposal to redesignate areas of the State Class I or Class 

II provided that: 

April 24, 2009 62.5, St. 7 - Page 17
 (i) At least one public hearing has been held in accordance with procedures established in 40 CFR 

51.102; 

 (ii) Other States, Indian Governing Bodies, and Federal Land Managers whose lands may be affected 

by the proposed redesignation were notified at least 30 days prior to the public hearing; 

 (iii) A discussion of the reasons for the proposed redesignation, including a satisfactory description and 

analysis of the health, environmental, economic, social and energy effects of the proposed redesignation, was 

prepared and made available for public inspection at least 30 days prior to the hearing and the notice 

announcing the hearing contained appropriate notification of the availability of such discussion; 

 (iv) Prior to the issuance of notice respecting the redesignation of an area that includes any Federal 

lands, the State has provided written notice to the appropriate Federal Land Manager and afforded adequate 

opportunity (not in excess of 60 days) to confer with the State respecting the redesignation and to submit 

written comments and recommendations. In redesignating any area with respect to which any Federal Land 

Manager had submitted written comments and recommendations, the State shall have published a list of any 

inconsistency between such redesignation and such comments and recommendations (together with the 

reasons for making such redesignation against the recommendation of the Federal Land Manager); and 

 (v) The State has proposed the redesignation after consultation with the elected leadership of local and 

other substate general purpose governments in the area covered by the proposed redesignation. 

 (3) Any area other than an area to which paragraph (e) refers may be redesignated as Class III if – 

 (i) The redesignation would meet the requirements of paragraph (g)(2); 

 (ii) The redesignation, except any established by an Indian Governing Body, has been specifically 

approved by the Governor of the State, after consultation with the appropriate committees of the legislature, if 

it is in session, or with the leadership of the legislature, if it is not in session (unless State law provides that 

the redesignation must be specifically approved by State legislation) and if general purpose units of local 

government representing a majority of the residents of the area to be redesignated enact legislation or pass 

resolutions concurring in the redesignation: 

 (iii) The redesignation would not cause, or contribute to, a concentration of any air pollutant which 

would exceed any maximum allowable increase permitted under the classification of any other area or any 

national ambient air quality standard; and 

 (iv) Any permit application for any major stationary source or major modification, subject to review 

under paragraph (l), which could receive a permit under this section only if the area in question were 

redesignated as Class III, and any material submitted as part of that application, were available insofar as was 

practicable for public inspection prior to any public hearing on redesignation of the area as Class III. 

 (4) Lands within the exterior boundaries of Indian Reservations may be redesignated only by the 

appropriate Indian Governing Body. The appropriate Indian Governing Body may submit to the Department a 

proposal to redesignate areas Class I, Class II, or Class III: Provided, That: 

 (i) The Indian Governing Body has followed procedures equivalent to those required of a State under 

paragraphs (g)(2), (g)(3)(iii), and (g)(3)(iv); and 

 (ii) Such redesignation is proposed after consultation with the State(s) in which the Indian Reservation 

April 24, 2009 62.5, St. 7 - Page 18
is located and which border the Indian Reservation. 

 (5) The Administrator shall disapprove, within 90 days of submission, a proposed redesignation of any 

area only if it is found, after notice and opportunity for public hearing, that such redesignation does not meet 

the procedural requirements of this paragraph or is inconsistent with paragraph (e). If any such disapproval 

occurs, the classification of the area shall be that which was in effect prior to the redesignation which was 

disapproved. 

 (6) If the Administrator disapproves any proposed redesignation, the State or Indian Governing Body, as 

appropriate, may resubmit the proposal after correcting the deficiencies noted by the Administrator. 

(h) Stack heights. 

 (1) The degree of emission limitation required for control of any air pollutant under this section shall not 

be affected in any manner by-- 

 (i) So much of the stack height of any source as exceeds good engineering practice, or 

 (ii) Any other dispersion technique. 

 (2) Paragraph (h)(1) shall not apply with respect to stack heights in existence before December 31, 1970, 

or to dispersion techniques implemented before then. 

(i) Exemptions

 (1) The requirements of paragraphs (j) through (r) shall not apply to a particular major stationary source or 

major modification, if: 

 (i) Construction commenced on the source or modification before August 7, 1977. The regulations at 

40 CFR 52.21 as in effect before August 7, 1977, shall govern the review and permitting of any such source 

or modification; or 

 (ii) The source or modification was subject to the review requirements of 40 CFR 52.21(d)(1) as in 

effect before March 1, 1978, and the owner or operator: 

 (a) Obtained under 40 CFR 52.21 a final approval effective before March 1, 1978; 

 (b) Commenced construction before March 19, 1979; and 

 (c) Did not discontinue construction for a period of 18 months or more and completed construction 

within a reasonable time; or 

 (iii) The source or modification was subject to 40 CFR 52.21 as in effect before March 1, 1978, and the 

review of an application for approval for the stationary source or modification under 40 CFR 52.21 would 

have been completed by March 1, 1978, but for an extension of the public comment period pursuant to a 

request for such an extension. In such case, the application shall continue to be processed, and granted or 

denied, under 40 CFR 52.21 as in effect prior to March 1, 1978; or 

 (iv) The source or modification was not subject to 40 CFR 52.21 as in effect before March 1, 1978, and 

the owner or operator: 

April 24, 2009 62.5, St. 7 - Page 19
 (a) Obtained all final Federal, state and local preconstruction approvals or permits necessary under 

the applicable State Implementation Plan before March 1, 1978; 

 (b) Commenced construction before March 19, 1979; and 

 (c) Did not discontinue construction for a period of 18 months or more and completed construction 

within a reasonable time; or 

 (v) The source or modification was not subject to 40 CFR 52.21 as in effect on June 19, 1978 or under 

the partial stay of regulations published on February 5, 1980 (45 FR 7800), and the owner or operator: 

 (a) Obtained all final Federal, state and local preconstruction approvals or permits necessary under 

the applicable State Implementation Plan before August 7, 1980; 

 (b) Commenced construction within 18 months from August 7, 1980, or any earlier time required 

under the applicable State Implementation Plan; and 

 (c) Did not discontinue construction for a period of 18 months or more and completed construction 

within a reasonable time; or 

 (vi) The source or modification would be a nonprofit health or nonprofit educational institution, or a 

major modification would occur at such an institution, and the governor of the state in which the source or 

modification would be located requests that it be exempt from those requirements; or 

 (vii) The source or modification would be 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: 

 (a) Coal cleaning plants (with thermal dryers); 

 (b) Kraft pulp mills; 

 (c) Portland cement plants; 

 (d) Primary zinc smelters; 

 (e) Iron and steel mills; 

 (f) Primary aluminum ore reduction plants; 

 (g) Primary copper smelters; 

 (h) Municipal incinerators capable of charging more than 250 tons of refuse per day; 

 (i) Hydrofluoric, sulfuric, or nitric acid plants; 

 (j) Petroleum refineries; 

 (k) Lime plants; 

 (l) Phosphate rock processing plants; 

April 24, 2009 62.5, St. 7 - Page 20
 (m) Coke oven batteries; 

 (n) Sulfur recovery plants; 

 (o) Carbon black plants (furnace process); 

 (p) Primary lead smelters; 

 (q) Fuel conversion plants; 

 (r) Sintering plants; 

 (s) Secondary metal production plants; 

 (t) Chemical process plants – The term chemical processing plant shall not include ethanol 

production facilities that produce ethanol by natural fermentation included in NAICS codes 325193 or 

312140; 

 (u) Fossil-fuel boilers (or combination thereof) totaling more than 250 million British thermal units 

per hour heat input; 

 (v) Petroleum storage and transfer units with a total storage capacity exceeding 300,000 barrels; 

 (w) Taconite ore processing plants; 

 (x) Glass fiber processing plants; 

 (y) Charcoal production plants; 

 (z) Fossil fuel-fired steam electric plants of more than 250 million British thermal units per hour 

heat input; 

 (aa) Any other stationary source category which, as of August 7, 1980, is being regulated under 

section 111 or 112 of the Clean Air Act; or 

 (viii) The source is a portable stationary source which has previously received a permit under this 

section, and 

 (a) The owner or operator proposes to relocate the source and emissions of the source at the new 

location would be temporary; and 

 (b) The emissions from the source would not exceed its allowable emissions; and 

 (c) The emissions from the source would impact no Class I area and no area where an applicable 

increment is known to be violated; and 

 (d) Reasonable notice is given to the Department prior to the relocation identifying the proposed 

new location and the probable duration of operation at the new location. Such notice shall be given to the 

Department not less than 10 days in advance of the proposed relocation unless a different time duration is 

previously approved by the Department. 

April 24, 2009 62.5, St. 7 - Page 21
 (ix) The source or modification was not subject to section 52.21 with respect to particulate matter, as in 

effect before July 31, 1987, and the owner or operator: 

 (a) Obtained all final Federal, State, and local preconstruction approvals or permits necessary under 

the applicable State implementation plan before July 31, 1987; 

 (b) Commenced construction within 18 months after July 31, 1987, or any earlier time required 

under the State implementation plan; and 

 (c) Did not discontinue construction for a period of 18 months or more and completed construction 

within a reasonable period of time. 

 (x) The source or modification was subject to 40 CFR 52.21, with respect to particulate matter, as in 

effect before July 31, 1987 and the owner or operator submitted an application for a permit under this section 

before that date, and the Department subsequently determines that the application as submitted was complete 

with respect to the particulate matter requirements then in effect in this section. Instead, the requirements of 

paragraphs (j) through (r) that were in effect before July 31, 1987 shall apply to such source or modification. 

 (2) The requirements of paragraphs (j) through (r) shall not apply to a major stationary source or major 

modification with respect to a particular pollutant if the owner or operator demonstrates that, as to that 

pollutant, the source or modification is located in an area designated as nonattainment under section 107 of 

the Clean Air Act. 

 (3) The requirements of paragraphs (k), (m) and (o) shall not apply to a major stationary source or major 

modification with respect to a particular pollutant, if the allowable emissions of that pollutant from the source, 

or the net emissions increase of that pollutant from the modification: 

 (i) Would impact no Class I area and no area where an applicable increment is known to be violated, 

and 

 (ii) Would be temporary. 

 (4) The requirements of paragraphs (k), (m) and (o) as they relate to any 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 best available control technology would be less than 50 tons per year. 

(5) The Department may exempt a stationary source or modification from the requirements of paragraph 

(m), with respect to monitoring for a particular pollutant if: 

 (i) The emissions increase of the pollutant from the new source or the net emissions increase of the 

pollutant from the modification would cause, in any area, air quality impacts less than the following amounts: 

 Carbon monoxide--575 μg/m3

, 8-hour average; 

 Nitrogen dioxide--14 μg/m3

, annual average; 

 Particulate matter--10 μg/m3

 of PM10, 24-hour average; 

 Sulfur dioxide--13 μg/m3

, 24-hour average; 

 Ozone;1

 

 Lead--0.1 μg/m3

, 3-month average; 

 Fluorides--0.25 μg/m3

, 24-hour average; 

April 24, 2009 62.5, St. 7 - Page 22
 Total reduced sulfur--10 μg/m3

, 1-hour average; 

 Hydrogen sulfide--0.2 μg/m3

, 1-hour average; 

 Reduced sulfur compounds--10 μg/m3

, 1-hour average; or 

 1

 No de minimis air quality level is provided for ozone. However, any net increase of 100 tons 

per year or more of volatile organic compounds subject to PSD would be required to perform an ambient 

impact analysis including the gathering of ambient air quality data. 

 (ii) The concentrations of the pollutant in the area that the source or modification would affect are less 

than the concentrations listed in paragraph (i)(8)(i), or the pollutant is not listed in paragraph (i)(8)(i). 

 (6) The requirements for best available control technology in paragraph (j) and the requirements for air 

quality analyses in paragraph (m)(1), shall not apply to a particular stationary source or modification that was 

subject to 40 CFR 52.21 as in effect on June 19, 1978, if the owner or operator of the source or modification 

submitted an application for a permit under those regulations before August 7, 1980, and the Department 

subsequently determines that the application as submitted before that date was complete. Instead, the 

requirements at 40 CFR 52.21(j) and (n) as in effect on June 19, 1978 apply to any such source or 

modification. 

 (7)(i) The requirements for air quality monitoring in paragraphs (m)(1)(ii) through (iv) shall not apply to a 

particular source or modification that was subject to 40 CFR 52.21 as in effect on June 19, 1978, if the owner 

or operator of the source or modification submits an application for a permit under this section on or before 

June 8, 1981, and the Department subsequently determines that the application as submitted before that date 

was complete with respect to the requirements of this regulation other than those in paragraphs (m)(1)(ii) 

through (iv), and with respect to the requirements for such analyses at 40 CFR 52.21(m)(2) as in effect on 

June 19, 1978. Instead, the latter requirements shall apply to any such source or modification. 

 (ii) The requirements for air quality monitoring in paragraphs (m)(1)(ii) through (iv) shall not apply to 

a particular source or modification that was not subject to 40 CFR 52.21 as in effect on June 19, 1978, if the 

owner or operator of the source or modification submits an application for a permit under this section on or 

before June 8, 1981, and the Department subsequently determines that the application as submitted before that 

date was complete, except with respect to the requirements in paragraphs (m)(1)(ii) through (iv). 

 (8)(i) At the discretion of the Department, the requirements for air quality monitoring of PM10 in 

paragraphs (m)(1)(i)--(iv) may not apply to a particular source or modification when the owner or operator of 

the source or modification submits an application for a permit under this section on or before June 1, 1988 

and the Department subsequently determines that the application as submitted before that date was complete, 

except with respect to the requirements for monitoring particulate matter in paragraphs (m)(1)(i) through (iv). 

 (ii) The requirements for air quality monitoring of PM10 in paragraphs (m)(1), (ii) and (iv) and (m)(3) 

shall apply to a particular source or modification if the owner or operator of the source or modification 

submits an application for a permit under this section after June 1, 1988 and no later than December 1, 1988. 

The data shall have been gathered over at least the period from February 1, 1988 to the date the application 

becomes otherwise complete in accordance with the provisions set forth under paragraph (m)(1)(viii), except 

that if the Department determines that a complete and adequate analysis can be accomplished with monitoring 

data over a shorter period (not to be less than 4 months), the data that paragraph (m)(1)(iii) requires shall have 

been gathered over a shorter period. 

 (9) The requirements of paragraph (k)(2) shall not apply to a stationary source or modification with respect 

to any maximum allowable increase for nitrogen oxides if the owner or operator of the source or modification 

submitted an application for a permit under this section before the provisions embodying the maximum 

April 24, 2009 62.5, St. 7 - Page 23
allowable increase took effect as part of the applicable implementation plan and the Department subsequently 

determined that the application as submitted before that date was complete. 

 (10) The requirements in paragraph (k)(2) shall not apply to a stationary source or modification with 

respect to any maximum allowable increase for PM10 if 

 (i) the owner or operator of the source or modification submitted an application for a permit under this 

section before the provisions embodying the maximum allowable increases for PM10 took effect in an 

implementation plan to which this section applies, and 

 (ii) the Department subsequently determined that the application as submitted before that date was 

otherwise complete. Instead, the requirements in paragraph (k)(2) shall apply with respect to the maximum 

allowable increases for TSP as in effect on the date the application was submitted. 

(j) Control technology review. 

 (1) A major stationary source or major modification shall meet each applicable emissions limitation under 

the State Implementation Plan and each applicable emissions standard and standard of performance under 40 

CFR 60 and 61. 

 (2) A new major stationary source shall apply best available control technology for each regulated NSR 

pollutant that it would have the potential to emit in significant amounts. 

 (3) A major modification shall apply best available control technology for each regulated NSR pollutant 

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 pollutant would occur as a result of a 

physical change or change in the method of operation in the unit. 

 (4) For phased construction projects, the determination of best available control technology shall be 

reviewed and modified as appropriate at the latest reasonable time which occurs no later than 18 months prior 

to commencement of construction of each independent phase of the project. At such time, the owner or 

operator of the applicable stationary source may be required to demonstrate the adequacy of any previous 

determination of best available control technology for the source. 

(k) Source impact analysis. 

 The owner or operator of the proposed source or modification shall demonstrate that allowable emission 

increases from the proposed source or modification, in conjunction with all other applicable emissions 

increases or reductions (including secondary emissions), would not cause or contribute to air pollution in 

violation of: 

 (1) Any national ambient air quality standard in any air quality control region; or 

 (2) Any applicable maximum allowable increase over the baseline concentration in any area. 

(l) Air Quality Models 

 (1) All estimates of ambient concentrations required under this paragraph shall be based on applicable air 

quality models, data bases, and other requirements specified in 40 CFR 51 appendix W (Guideline on Air 

Quality Models). 

April 24, 2009 62.5, St. 7 - Page 24
 (2) Where an air quality model specified in 40 CFR 51 appendix W (Guideline on Air Quality Models) is 

inappropriate, the model may be modified or another model substituted. Such a modification or substitution of 

a model may be made on a case-by-case basis or, where appropriate, on a generic basis for a specific state 

program. Written approval of the Department must be obtained for any modification or substitution. In 

addition, use of a modified or substituted model must be subject to notice and opportunity for public comment 

under procedures developed in accordance with paragraph (q). 

(m) Air quality analysis-- 

 (1) Preapplication analysis. 

 (i) Any application for a permit under this section 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: 

 (a) For the source, each pollutant that it would have the potential to omit in a significant amount; 

 (b) For the modification, each pollutant for which it would result in a significant net emissions 

increase. 

 (ii) With respect to any such pollutant for which no National Ambient Air Quality Standard exists, the 

analysis shall contain such air quality monitoring data as the Department determines is necessary to assess 

ambient air quality for that pollutant in any area that the emissions of that pollutant would affect. 

 (iii) With respect to any such pollutant (other than nonmethane hydrocarbons) for which such a 

standard does exist, the analysis shall contain continuous air quality monitoring data gathered for purposes of 

determining whether emissions of that pollutant would cause or contribute to a violation of the standard or 

any maximum allowable increase. 

 (iv) In general, the continuous air quality monitoring data that is required shall have been gathered over 

a period of at least one year and shall represent at least the year preceding receipt of the application, except 

that, if the Department determines that a complete and adequate analysis can be accomplished with 

monitoring data gathered over a period shorter than one year (but not to be less than four months), the data 

that is required shall have been gathered over at least that shorter period. 

 (v) For any application which becomes complete, except as to the requirements of paragraphs 

(m)(1)(iii) and (iv), between June 8, 1981, and February 9, 1982, the data that paragraph (m)(1)(iii), requires 

shall have been gathered over at least the period from February 9, 1981, to the date the application becomes 

otherwise complete, except that: 

 (a) If the source or modification would have been major for that pollutant under 40 CFR 52.21 as in 

effect on June 19, 1978, any monitoring data shall have been gathered over at least the period required by 

those regulations. 

 (b) If the Department determines that a complete and adequate analysis can be accomplished with 

monitoring data over a shorter period (not to be less than four months), the data that paragraph (m)(1)(iii), 

requires shall have been gathered over at least that shorter period. 

 (c) If the monitoring data would relate exclusively to ozone and would not have been required under 

40 CFR 52.21 as in effect on June 19, 1978, the Department may waive the otherwise applicable requirements 

of this paragraph (v) to the extent that the applicant shows that the monitoring data would be unrepresentative 

of air quality over a full year. 

April 24, 2009 62.5, St. 7 - Page 25
 (vi) The owner or operator of a proposed stationary source or modification of volatile organic 

compounds who satisfies all conditions of 40 CFR 51 Appendix S, section IV may provide post-approval 

monitoring data for ozone in lieu of providing preconstruction data as required under paragraph (m)(1). 

 (vii) For any application that becomes complete, except as to the requirements of paragraphs (m)(1)(iii) 

and (iv) pertaining to PM10, after December 1, 1988 and no later than August 1, 1989 the data that paragraph 

(m)(1)(iii) requires shall have been gathered over at least the period from August 1, 1988 to the date the 

application becomes otherwise complete, except that if the Department determines that a complete and 

adequate analysis can be accomplished with monitoring data over a shorter period (not to be less than 4 

months), the data that paragraph (m)(1)(iii) requires shall have been gathered over that shorter period. 

 (viii) With respect to any requirements for air quality monitoring of PM10 under paragraphs (i)(11)(i) 

and (ii) the owner or operator of the source or modification shall use a monitoring method approved by the 

Department and shall estimate the ambient concentrations of PM10 using the data collected by such approved 

monitoring method in accordance with estimating procedures approved by the Department. 

 (2) Post-construction monitoring. The owner or operator of a major stationary source or major 

modification shall, after construction of the stationary source or modification, conduct such ambient 

monitoring as the Department determines is necessary to determine the effect emissions from the stationary 

source or modification may have, or are having, on air quality in any area. 

 (3) Operations of monitoring stations. The owner or operator of a major stationary source or major 

modification shall meet the requirements of Appendix B to 40 CFR 58 of during the operation of monitoring 

stations for purposes of satisfying paragraph (m). 

(n) Source information. 

 The owner or operator of a proposed source or modification shall submit all information necessary to 

perform any analysis or make any determination required under this section. 

 (1) With respect to a source or modification to which paragraphs (j), (l), (n) and (p) apply, such 

information shall include: 

 (i) 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; 

 (ii) A detailed schedule for construction of the source or modification; 

 (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 would be applied. 

 (2) Upon request of the Department, the owner or operator shall also provide information on: 

 (i) The air quality impact of the source or modification, including meteorological and topographical 

data necessary to estimate such impact; and 

 (ii) The air quality impacts, and the nature and extent of any or all general commercial, residential, 

industrial, and other growth which has occurred since August 7, 1977, in the area the source or modification 

would affect. 

April 24, 2009 62.5, St. 7 - Page 26
(o) Additional impact analyses. 

 (1) The owner or operator shall provide an analysis of the impairment to visibility, soils and vegetation 

that would occur as a result of the source or modification and general commercial, residential, industrial and 

other growth associated with the source or modification. The owner or operator need not provide an analysis 

of the impact on vegetation having no significant commercial or recreational value. 

 (2) 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. 

 (3) Visibility monitoring. The Department may require monitoring of visibility in any Federal class I area 

near the proposed new stationary source for major modification for such purposes and by such means as the 

Administrator deems necessary and appropriate. 

(p) Sources impacting Federal Class I areas--additional requirements-- 

 (1) Notice to Federal land managers. The Department shall provide written notice of any permit 

application for a proposed major stationary source or major modification, the emissions from which may 

affect a Class I area, to the Federal land manager and the Federal official charged with direct responsibility for 

management of any lands within any such area. Such notification shall include a copy of all information 

relevant to the permit application and shall be given within 30 days of receipt and at least 60 days prior to any 

public hearing on the application for a permit to construct. Such notification shall include an analysis of the 

proposed source's anticipated impacts on visibility in the Federal Class I area. The Department shall also 

provide the Federal land manager and such Federal officials with a copy of the preliminary determination 

required under paragraph (q), and shall make available to them any materials used in making that 

determination, promptly after the Department makes such determination. Finally, the Department shall also 

notify all affected Federal land managers within 30 days of receipt of any advance notification of any such 

permit application. 

 (2) Federal Land Manager. The Federal Land Manager and the Federal official charged with direct 

responsibility for management of such lands have an affirmative responsibility to protect the air quality 

related values (including visibility) of such lands and to consider, in consultation with the Department, 

whether a proposed source or modification will have an adverse impact on such values. 

 (3) Visibility analysis. The Department shall consider any analysis performed by the Federal land 

manager, provided within 30 days of the notification required by paragraph (p)(1), that shows that a proposed 

new major stationary source or major modification may have an adverse impact on visibility in any Federal 

Class I area. Where the Department finds that such an analysis does not demonstrate to the satisfaction of the 

Department that an adverse impact on visibility will result in the Federal Class I area, the Department must, in 

the notice of public hearing on the permit application, either explain its decision or give notice as to where the 

explanation can be obtained. 

 (4) Denial--impact on air quality related values. The Federal Land Manager of any such lands may 

demonstrate to the Department that the emissions from a proposed source or modification would have an 

adverse impact on the air quality-related values (including visibility) of those lands, notwithstanding that the 

change in air quality resulting from emissions from such source or modification would not cause or contribute 

to concentrations which would exceed the maximum allowable increases for a Class I area. If the Department 

concurs with such demonstration, then the permit shall not be issued. 

April 24, 2009 62.5, St. 7 - Page 27
 (5) Class I variances. The owner or operator of a proposed source or modification may demonstrate to the 

Federal Land Manager that the emissions from such source or modification would have no adverse impact on 

the air quality related values of any such lands (including visibility), notwithstanding that the change in air 

quality resulting from emissions from such source or modification would cause or contribute to 

concentrations which would exceed the maximum allowable increases for a Class I area. If the Federal Land 

Manager concurs with such demonstration and so certifies, the State may authorize the Administrator: 

Provided, That the applicable requirements of this regulation are otherwise met, to issue the permit with such 

emission limitations as may be necessary to assure that emissions of sulfur dioxide and particulate matter, and 

nitrogen oxides would not exceed the following maximum allowable increases over minor source baseline 

concentration for such pollutants: 

Pollutant Maximum Allowable Increase 

(micrograms per cubic meter) 

PM10, annual arithmetic mean 17 Particulate matter: PM10, 24-hr maximum 30 

annual arithmetic mean 20 

Sulfur dioxide: 24-hr maximum 91 

3-hr maximum 325 

Nitrogen dioxide: annual arithmetic mean 25 

 (6) Sulfur dioxide variance by Governor with Federal Land Manager's concurrence. The owner or operator 

of a proposed source or modification which cannot be approved under paragraph (q)(4) may demonstrate to 

the Governor that the source cannot be constructed by reason of any maximum allowable increase for sulfur 

dioxide for a period of twenty-four hours or less applicable to any Class I area and, in the case of Federal 

mandatory Class I areas, that a variance under this clause would not adversely affect the air quality related 

values of the area (including visibility). The Governor, after consideration of the Federal Land Manager's 

recommendation (if any) and concurrence, may, after notice and public hearing, grant a variance from such 

maximum allowable increase. If such variance is granted, the Department shall issue a permit to such source 

or modification pursuant to the requirements of paragraph (q)(7): Provided, that the applicable requirements 

of this regulation are otherwise met. 

 (7) Variance by the Governor with the President's concurrence. In any case where the Governor 

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. The President may approve the 

Governor's recommendation if it is found that the variance is in the national interest. If the variance is 

approved, the Department shall issue a permit pursuant to the requirements of paragraph (q)(7): Provided, that 

the applicable requirements of this regulation are otherwise met. 

 (8) Emission limitations for Presidential or gubernatorial variance. In the case of a permit issued pursuant 

to paragraph (q)(5) or (6) the source or modification shall comply with such emission limitations as may be 

necessary to assure that emissions of sulfur dioxide from the source or modification would not (during any 

day on which the otherwise applicable maximum allowable increases are exceeded) cause or contribute to 

concentrations which would exceed the following maximum allowable increases over the baseline 

concentration and to assure that such emissions would not cause or contribute to concentrations which exceed 

the otherwise applicable maximum allowable increases for periods of exposure of 24 hours or less for more 

than 18 days, not necessarily consecutive, during any annual period: 

MAXIMUM ALLOWABLE INCREASE 

(Micrograms per cubic meter) 

April 24, 2009 62.5, St. 7 - Page 28
Terrain Areas Period of exposure Low High 

24-hr maximum 36 62 

3-hr maximum 130 221 

 (q) Public participation. 

 (1) Within 30 days after receipt of an application to construct, or any addition to such application, the 

Department shall advise the applicant of any deficiency in the application or in the information submitted and 

transmit a copy of such application to EPA. In the event of such a deficiency, the date of receipt of the 

application shall be, for the purpose of this regulation, the date on which the Department received all required 

information. 

 (2) In accordance with Regulation 61-30, Environmental Protection Fees, the Department shall make a 

final determination on the application. This involves performing the following actions in a timely manner: 

 (i) Make a preliminary determination whether construction should be approved, approved with 

conditions, or disapproved. 

 (ii) Make available in at least one location in each region in which the proposed plant or modification 

would be constructed a copy of all materials the applicant submitted, a copy of the preliminary determination 

and a copy or summary of other materials, if any, considered in making the preliminary determination. 

 (iii) Notify the public, by advertisement in a newspaper of general circulation in each region in which 

the proposed plant or modification would be constructed, of the application, the preliminary determination, 

the degree of increment consumption that is expected from the plant or modification, and the opportunity for 

comment at a public hearing as well as written public comment. 

 (iv) Send a copy of the notice of public comment to the applicant, the Administrator of EPA, and to 

officials and agencies having cognizance over the location where the proposed construction would occur as 

follows: The chief executives of the city and county where the plant or modification would be located, any 

comprehensive regional land use planning agency and any State, Federal Land Manager, or Indian Governing 

Body whose lands may be affected by emissions from the plant or modification. 

 (v) Provide opportunity for a public hearing for interested persons to appear and submit written or oral 

comments on the air quality impact of the plant or modification, alternatives to the plant or modification, the 

control technology required, and other appropriate considerations. 

 (vi) Consider all written comments submitted within a time specified in the notice of public comment 

and all comments received at any public hearing(s) in making a final decision on the approvability of the 

application. No later than 10 days after the close of the public comment period, the applicant may submit a 

written response to any comments submitted by the public. The Department shall consider the applicant’s 

response in making a final decision. The Department shall make all comments available for public inspection 

in the same locations where the Department made available preconstruction information relating to the 

proposed plant or modification. 

 (vii) Make a final determination whether construction should be approved, approved with conditions, or 

disapproved pursuant to this section. 

 (viii) Notify the applicant in writing of the final determination and make such notification available for 

public inspection at the same location where the Department made available preconstruction information and 

April 24, 2009 62.5, St. 7 - Page 29
public comments relating to the plant or modification. 

 (ix) Notify EPA of every action related to the consideration of the permit. 

 (3) The requirements of Section (q), Public Participation, of this standard shall not apply to any major 

plant or major modification which Section (i), Review of Major Stationary Sources and Major Modifications, 

would exempt from the requirements of Sections (k), (m), and (o), but only to the extent that, with respect to 

each of the criteria for construction approval under the South Carolina State Implementation Plan and for 

exemption under Section (i), requirements providing the public with at least as much participation in each 

material determination as those of Section (q) have been met in the granting of such construction approval. 

(r) Source obligation. In addition to all other applicable requirements specified in this regulation, the owner 

or operator shall comply with the requirements of paragraphs (r)(1) through (r)(8). 

 (1) Any owner or operator who constructs or operates a source or modification not in accordance with the 

application submitted pursuant to this section or with the terms of any approval to construct, or any owner or 

operator of a source or modification subject to this section who commences construction after the effective 

date of these regulations without applying for and receiving approval hereunder, shall be subject to 

appropriate enforcement action. 

 (2) Approval to construct shall become invalid if construction is not commenced within 18 months after 

receipt of such approval, if construction is discontinued for a period of 18 months or more, or if construction 

is not completed within a reasonable time. The Department may extend the 18-month period upon a 

satisfactory showing that an extension is justified. This provision does not apply to the time period between 

construction of the approved phases of a phased construction project; each phase must commence 

construction within 18 months of the projected and approved commencement date. 

 (3) Approval to construct shall not relieve any owner or operator of the responsibility to comply fully with 

applicable provisions of the State implementation plan and any other requirements under local, State, or 

Federal law. 

 (4) At such time that a particular source or modification becomes a major stationary source or major 

modification solely by virtue of a relaxation in any enforceable limitation which was established after August 

7, 1980, on the capacity of the source or modification otherwise to emit a pollutant, such as a restriction on 

hours of operation, then the requirements or paragraphs (j) through (s) shall apply to the source or 

modification as though construction had not yet commenced on the source or modification. 

 (5) Reserved 

 (6) Monitoring, recordkeeping and reporting. The provisions of this paragraph (r)(6) apply to projects 

at an existing emissions unit at a major stationary source (other than projects at a source with a PAL) in 

circumstances where there is a reasonable possibility that a project that is not a part of a major modification 

may result in a significant emissions increase and the owner or operator elects to use the method specified in 

paragraphs (b)(41)(ii)(a) through (c) for calculating projected actual emissions. 

 (i) If the project requires construction permitting under Regulation 61-62.1, Section II “Permit 

Requirements”, the owner or operator shall provide a copy of the information set out in paragraph (r)(6)(ii) as 

part of the permit application to the Department. If construction permitting under Regulation 61-62.1, Section 

II “Permit Requirements” is not required, the owner or operator shall maintain the information set out in 

paragraph (r)(6)(ii). 

April 24, 2009 62.5, St. 7 - Page 30
 (ii) Before beginning actual construction of the project, the owner or operator shall document and 

maintain a record of the following information: 

 (a) A description of the project; 

 (b) Identification of the emissions unit(s) whose emissions of a regulated NSR pollutant could be 

affected by the project; and 

 (c) A description of the applicability test used to determine that the project is not a major 

modification for any regulated NSR pollutant, including the baseline actual emissions, the projected actual 

emissions, the amount of emissions excluded under paragraph (b)(41)(ii)(c) and an explanation for why such 

amount was excluded, and any netting calculations, if applicable. 

 (iii) The owner or operator shall monitor the emissions of any regulated NSR pollutant that could 

increase as a result of the project and that is emitted by any emissions unit identified in paragraph (r)(6)(ii)(b); 

and calculate and maintain a record of the annual emissions, in tons per year on a calendar year basis, for a 

period of 5 years following resumption of regular operations after the change, or for a period of 10 years 

following resumption of regular operations after the change if the project increases the design capacity of or 

potential to emit that regulated NSR pollutant at such emissions unit. 

 (iv) If the unit is an existing electric utility steam generating unit, the owner or operator shall submit a 

report to the Department within 60 days after the end of each year during which records must be generated 

under paragraph (r)(6)(iii) setting out the unit's annual emissions during the calendar year that preceded 

submission of the report. 

 (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 Department if the annual emissions, in tons per year, from the project 

identified in paragraph (r)(6)(ii), exceed the baseline actual emissions (as documented and maintained 

pursuant to paragraph (r)(6)(ii)(c)), by a significant amount (as defined in paragraph (b)(49)) for that regulated 

NSR pollutant, and if such emissions differ from the preconstruction projection as documented and 

maintained pursuant to paragraph (r)(6)(ii)(c). Such report shall be submitted to the Department within 60 

days after the end of such year. The report 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 (r)(6)(iii); and 

 (c) Any other information needed to make a compliance determination (e.g., an explanation as to 

why the emissions differ from the preconstruction projection). 

 (7) If a project at a source with a PAL requires construction permitting under Regulation 61-62.1, Section 

II, “Permit Requirements”, the owner or operator shall provide notification of source status as part of the 

permit application to the Department. 

 (8) The owner or operator of the source shall make the information required to be documented and 

maintained pursuant to paragraph (r)(6) available for review upon a request for inspection by the Department 

or the general public pursuant to the requirements contained in 40 CFR 70.4(b)(3)(viii). 

(s) through (u)(3) - Reserved. 

(u)(4) In the case of a source or modification which proposes to construct in a class III area, emissions from 

April 24, 2009 62.5, St. 7 - Page 31
which would cause or contribute to air quality exceeding the maximum allowable increase applicable if the 

area were designated a class II area, and where no standard under section 111 of the act has been promulgated 

for such source category, the Administrator must approve the determination of best available control 

technology as set forth in the permit. 

(v) Innovative control technology. 

 (1) An owner or operator of a proposed major stationary source or major modification may request the 

Department in writing no later than the close of the comment period under 40 CFR 124.10 to approve a 

system of innovative control technology. 

 (2) The Department shall, with the consent of the governor(s) of the affected state(s), determine that the 

source or modification may employ a system of innovative control technology, if:-- 

 (i) The proposed control system would not cause or contribute to an unreasonable risk to public health, 

welfare, or safety in its operation or function; 

 (ii) The owner or operator agrees to achieve a level of continuous emissions reduction equivalent to 

that which would have been required under paragraph (j)(2), by a date specified by the Department. Such date 

shall not be later than 4 years from the time of startup or 7 years from permit issuance; 

 (iii) The source or modification would meet the requirements of paragraphs (j) and (k), based on the 

emissions rate that the stationary source employing the system of innovative control technology would be 

required to meet on the date specified by the Department; 

 (iv) The source or modification would not before the date specified by the Department: 

 (a) Cause or contribute to a violation of an applicable national ambient air quality standard; or 

 (b) Impact any area where an applicable increment is known to be violated; and 

 (v) All other applicable requirements including those for public participation have been met. 

 (vi) The provisions of paragraph (p) (relating to Class I areas) have been satisfied with respect to all 

periods during the life of the source or modification. 

 (3) The Department shall withdraw any approval to employ a system of innovative control technology 

made under this section, if: 

 (i) The proposed system fails by the specified date to achieve the required continuous emissions 

reduction rate; or 

 (ii) The proposed system fails before the specified date so as to contribute to an unreasonable risk to 

public health, welfare, or safety; or 

 (iii) The Department 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. 

 (4) If a source or modification fails to meet the required level of continuous emission reduction within the 

specified time period or the approval is withdrawn in accordance with paragraph (v)(3), the Department may 

allow the source or modification up to an additional 3 years to meet the requirement for the application of best 

April 24, 2009 62.5, St. 7 - Page 32
available control technology through use of a demonstrated system of control. 

(w) Permit rescission. 

 (1) Any permit issued under this section or a prior version of this regulation shall remain in effect, unless 

and until it expires under paragraph (s) or is rescinded. 

 (2) Any owner or operator of a stationary source or modification who holds a permit for the source or 

modification which was issued under 40 CFR 52.21 as in effect on July 30, 1987, or any earlier version of this 

regulation, may request that the Administrator rescind the permit or a particular portion of the permit. 

 (3) The Department shall grant an application for rescission if the application shows that this section 

would not apply to the source or modification. 

 (4) If the Department rescinds a permit under this paragraph, the public shall be given adequate notice of 

the rescission. Publication of an announcement of rescission in a newspaper of general circulation in the 

affected region within 60 days of the rescission shall be considered adequate notice. 

(x) [Reserved]

(y) [Reserved]

(z) [Reserved]

(aa) Actuals PALs. The provisions in paragraphs (aa)(1) through (15) govern actuals PALs. 

 (1) Applicability. 

 (i) The Department may approve the use of an actuals PAL for any existing major stationary source if 

the PAL meets the requirements in paragraphs (aa)(1) through (15). The term "PAL" shall mean "actuals 

PAL" throughout paragraph (aa). 

 (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 paragraphs (aa)(1) 

through (15), and complies with the PAL permit: 

 (a) Is not a major modification for the PAL pollutant; 

 (b) Does not have to be approved through Regulation 61-62.5, Standard 7, Prevention of Significant 

Deterioration. However, will be reviewed through R. 61-62.1, Section II A. Permit Requirements; and 

 (c) Is not subject to the provisions in paragraph (r)(4) (restrictions on relaxing enforceable emission 

limitations that the major stationary source used to avoid applicability of the major NSR program). 

 (iii) Except as provided under paragraph (aa)(1)(ii)(c), 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. 

 (2) Definitions. The definitions in paragraphs (aa)(2)(i) through (xi) shall apply to actual PALs consistent 

with paragraphs (aa)(1) through (15). When a term is not defined in these paragraphs, it shall have the 

meaning given in paragraph (b) or in the Clean Air Act. 

April 24, 2009 62.5, St. 7 - Page 33
 (i) Actuals PAL for a major stationary source means a PAL based on the baseline actual emissions (as 

defined in paragraph (b)(4)) of all emissions units (as defined in paragraph (b)(20)) at the source, that emit or 

have the potential to emit the PAL pollutant. 

 (ii) “Allowable emissions” means "allowable emissions" as defined in paragraph (b)(3), except as this 

definition is modified according to paragraphs (aa)(2)(ii)(a) and (b). 

 (a) 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. 

 (b) An emissions unit's potential to emit shall be determined using the definition in paragraph 

(b)(37), 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 paragraph (b)(49) or 

in the Clean Air Act, whichever is lower. 

 (iv) “Major emissions unit” means: 

 (a) 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 

 (b) 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 Clean Air Act for 

nonattainment areas. For example, in accordance with the definition of major stationary source in section 

182(c) of the Clean Air Act, an emissions unit would be a major emissions unit for VOC if the emissions unit 

is located in a serious ozone nonattainment area and it emits or has the potential to emit 50 or more tons of 

VOC per year. 

 (v) “Plantwide applicability limitation (PAL)” means an emission limitation expressed in tons per 

year, for a pollutant at a major stationary source, that is enforceable as a practical matter and established 

source-wide in accordance with paragraphs (aa)(1) through (15). 

 (vi) “PAL effective date” generally means the date of issuance of the PAL permit. However, the PAL 

effective date for an increased PAL is the date any emissions unit that is part of the PAL major modification 

becomes operational and begins to emit the PAL pollutant. 

 (vii) “PAL effective period” means the period beginning with the PAL effective date and ending 10 

years later. 

 (viii) “PAL major modification” means, notwithstanding paragraphs (b)(30) and (b)(34) (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. 

 (ix) “PAL permit” means the major NSR permit, the minor NSR permit, or the State operating permit 

under Regulation 61-62.1, Section II G, or the title V permit issued by the Department that establishes a PAL 

for a major stationary source. 

April 24, 2009 62.5, St. 7 - Page 34
 (x) “PAL pollutant” means the pollutant for which a PAL is established at a major stationary source. 

 (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 paragraph (b)(49) or 

in the 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 paragraph (aa)(2)(iv). 

 (3) 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 Department for approval: 

 (i) A list of all emissions units at the source designated as small, significant or major based on their 

potential to emit. In addition, the owner or operator of the source shall indicate which, if any, Federal or State 

applicable requirements, emission limitations, or work practices apply to each unit. 

 (ii) Calculations of the baseline actual emissions (with supporting documentation). Baseline actual 

emissions are to include emissions associated not only with operation of the unit, but also emissions 

associated with startup, shutdown, and malfunctions. 

 (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 paragraph (aa)(13)(i). 

 (4) General requirements for establishing PALs. 

 (i) The Department is allowed to establish a PAL at a major stationary source, provided that at a 

minimum, the requirements in paragraphs (aa)(4)(i)(a) through (g) are met. 

 (a) 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. 

 (b) The PAL shall be established in a PAL permit that meets the public participation requirements in 

paragraph (aa)(5). 

 (c) The PAL permit shall contain all the requirements of paragraph (aa)(7). 

 (d) 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. 

 (e) Each PAL shall regulate emissions of only one pollutant. 

 (f) Each PAL shall have a PAL effective period of 10 years. 

 (g) The owner or operator of the major stationary source with a PAL shall comply with the 

monitoring, recordkeeping, and reporting requirements provided in paragraphs (aa)(12) through (14) for each 

emissions unit under the PAL through the PAL effective period. 

April 24, 2009 62.5, St. 7 - Page 35
 (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 40 CFR 

51.165(a)(3)(ii) 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. 

 (5) Public participation requirements for PALs. PALs for existing major stationary sources shall be 

established, renewed, or increased through a procedure that is consistent with section (q) “Public 

Participation” of this regulation. The Department must address all material comments before taking final 

action on the permit. 

 (6) Setting the 10-year actuals PAL level.

 (i) Except as provided in paragraph (aa)(6)(ii), the actuals PAL level for a major stationary source shall 

be established as the sum of the baseline actual emissions (as defined in paragraph (b)(4)) of the PAL 

pollutant for each emissions unit at the source; plus an amount equal to the applicable significant level for the 

PAL pollutant under paragraph (b)(49) or under the Clean Air Act, whichever is lower. When establishing the 

actuals PAL level, for a PAL pollutant, only one consecutive 24-month period must be used to determine the 

baseline actual emissions for all existing emissions units. However, a different consecutive 24-month period 

may be used for each different PAL pollutant. Emissions associated with units that were permanently shut 

down after this 24-month period must be subtracted from the PAL level. The Department shall specify a 

reduced PAL level(s) (in tons/yr) in the PAL permit to become effective on the future compliance date(s) of 

any applicable Federal or State regulatory requirement(s) that the Department is aware of prior to the issuance 

of the PAL permit. For instance, if the source owner or operator will be required to reduce emissions from 

industrial boilers in half from baseline emissions of 60 ppm NOx to a new rule limit of 30 ppm, then the 

permit shall contain a future effective PAL level that is equal to the current PAL level reduced by half of the 

original baseline emissions of such unit(s). 

 (ii) Emissions from units (which do not include modification to existing units) on which operation 

began less than 24-months prior to the date of the PAL permit application must be added to the PAL level in 

an amount equal to the potential to emit of the units. 

 (7) Contents of the PAL permit. The PAL permit must contain, at a minimum, the information in 

paragraphs (aa)(7)(i) through (x). 

 (i) The PAL pollutant and the applicable source-wide emission limitation in tons per year. 

 (ii) The PAL permit effective date and the expiration date of the PAL (PAL effective period). 

 (iii) Specification in the PAL permit that if a major stationary source owner or operator applies to 

renew a PAL in accordance with paragraph (aa)(10) before the end of the PAL effective period, then the PAL 

shall not expire at the end of the PAL effective period. It shall remain in effect until a revised PAL permit is 

issued by the Department. 

 (iv) A requirement that emission calculations for compliance purposes must include emissions from 

startups, shutdowns, and malfunctions. 

 (v) A requirement that, once the PAL expires, the major stationary source is subject to the requirements 

of paragraph (aa)(9). 

April 24, 2009 62.5, St. 7 - Page 36
 (vi) 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 12-month rolling total as 

required by paragraph (aa)(13)(i). 

 (vii) A requirement that the major stationary source owner or operator monitor all emissions units in 

accordance with the provisions under paragraph (aa)(12). 

 (viii) A requirement to retain the records required under paragraph (aa)(13) on site. Such records may 

be retained in an electronic format. 

 (ix) A requirement to submit the reports required under paragraph (aa)(14) by the required deadlines. 

 (x) Any other requirements that the Department deems necessary to implement and enforce the PAL. 

 (8) PAL effective period and reopening of the PAL permit. The requirements in paragraphs (aa)(8)(i) 

and (ii) apply to actuals PALs. 

 (i) PAL effective period. The Department shall specify a PAL effective period of 10 years. 

 (ii) Reopening of the PAL permit. 

 (a) During the PAL effective period, the Department must reopen the PAL permit to: 

 (1) Correct typographical/calculation errors made in setting the PAL or reflect a more accurate 

determination of emissions used to establish the PAL; 

 (2) Reduce the PAL if the owner or operator of the major stationary source creates creditable 

emissions reductions for use as offsets under 40 CFR 51.165(a)(3)(ii); and 

 (3) Revise the PAL to reflect an increase in the PAL as provided under paragraph (aa)(11). 

 (b) The Department shall have discretion to reopen the PAL permit for the following: 

 (1) Reduce the PAL to reflect newly applicable Federal requirements (for example, NSPS) with 

compliance dates after the PAL effective date; 

 (2) 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 State Implementation Plan; 

and 

 (3) Reduce the PAL if the Department 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 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. 

 (c) Except for the permit reopening in paragraph (aa)(8)(ii)(a)(1) for the correction of 

typographical/calculation errors that do not increase the PAL level, all other reopenings shall be carried out in 

accordance with the public participation requirements of paragraph (aa)(5). 

 (9) Expiration of a PAL. Any PAL that is not renewed in accordance with the procedures in paragraph 

(aa)(10) shall expire at the end of the PAL effective period, and the requirements in paragraphs (aa)(9)(i) 

April 24, 2009 62.5, St. 7 - Page 37
through (v) shall apply. 

 (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 paragraphs 

(aa)(9)(i)(a) and (b). 

 (a) Within the time frame specified for PAL renewals in paragraph (aa)(10)(ii), the major stationary 

source shall submit a proposed allowable emission limitation for each emissions unit (or each group of 

emissions units, if such a distribution is more appropriate as decided by the Department) by distributing the 

PAL allowable emissions for the major stationary source among each of the emissions units that existed under 

the PAL. If the PAL had not yet been adjusted for an applicable requirement that became effective during the 

PAL effective period, as required under paragraph (aa)(10)(v), such distribution shall be made as if the PAL 

had been adjusted. 

 (b) The Department shall decide whether and how the PAL allowable emissions will be distributed 

and issue a revised permit incorporating allowable limits for each emissions unit, or each group of emissions 

units, as the Department determines is appropriate. 

 (ii) Each emissions unit(s) shall comply with the allowable emission limitation on a 12-month rolling 

basis. The Department may approve the use of monitoring systems (source testing, emission factors, etc.) 

other than CEMS, CERMS, PEMS, or CPMS to demonstrate compliance with the allowable emission 

limitation. 

 (iii) Until the Department issues the revised permit incorporating allowable limits for each emissions 

unit, or each group of emissions units, as required under paragraph (aa)(9)(i)(b), the source shall continue to 

comply with a source-wide, multi-unit emissions cap equivalent to the level of the PAL emission limitation. 

 (iv) Any physical change or change in the method of operation at the major stationary source will be 

subject to major NSR requirements if such change meets the definition of major modification in paragraph 

(b)(30). 

 (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 paragraph (r)(4), but were eliminated by the PAL in accordance with the provisions in paragraph 

(aa)(1)(ii)(c). 

 (10) Renewal of a PAL. 

 (i) The Department shall follow the procedures specified in paragraph (aa)(5) in approving any request 

to renew a PAL for a major stationary source, and shall provide both the proposed PAL level and a written 

rationale for the proposed PAL level to the public for review and comment. During such public review, any 

person may propose a PAL level for the source for consideration by the Department. 

 (ii) Application deadline. A major stationary source owner or operator shall submit a timely 

application to the Department to request renewal of a PAL. A timely application is one that is submitted at 

least 6 months prior to, but not earlier than 18 months from, the date of permit expiration. This deadline for 

application submittal is to ensure that the permit will not expire before the permit is renewed. If the owner or 

operator of a major stationary source submits a complete application to renew the PAL within this time 

period, then the PAL shall continue to be effective until the revised permit with the renewed PAL is issued. 

April 24, 2009 62.5, St. 7 - Page 38
 (iii) Application requirements. The application to renew a PAL permit shall contain the information 

required in paragraphs (aa)(10)(iii)(a) through (d). 

 (a) The information required in paragraphs (aa)(3)(i) through (iii). 

 (b) A proposed PAL level. 

 (c) The sum of the potential to emit of all emissions units under the PAL (with supporting 

documentation). 

 (d) Any other information the owner or operator wishes the Department to consider in determining 

the appropriate level for renewing the PAL. 

 (iv) PAL adjustment. In determining whether and how to adjust the PAL, the Department shall 

consider the options outlined in paragraphs (aa)(10)(iv)(a) and (b). However, in no case may any such 

adjustment fail to comply with paragraph (aa)(10)(iv)(c). 

 (a) If the emissions level calculated in accordance with paragraph (aa)(6) is equal to or greater than 

80 percent of the PAL level, the Department may renew the PAL at the same level without considering the 

factors set forth in paragraph (aa)(10)(iv)(b); or 

 (b) The Department may set the PAL at a level that it determines to be more representative of the 

source's baseline actual emissions, or that it determines to be more appropriate considering air quality needs, 

advances in control technology, anticipated economic growth in the area, desire to reward or encourage the 

source's voluntary emissions reductions, or other factors as specifically identified by the Department in its 

written rationale. 

 (c) Notwithstanding paragraphs (aa)(10)(iv)(a) and (b): 

 (1) If the potential to emit of the major stationary source is less than the PAL, the Department 

shall adjust the PAL to a level no greater than the potential to emit of the source; and 

 (2) The Department shall not approve a renewed PAL level higher than the current PAL, unless 

the major stationary source has complied with the provisions of paragraph (aa)(11) (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 Department 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. 

 (11) Increasing a PAL during the PAL effective period. 

 (i) The Department may increase a PAL emission limitation only if the major stationary source 

complies with the provisions in paragraphs (aa)(11)(i)(a) through (d). 

 (a) The owner or operator of the major stationary source shall submit a complete application to 

request an increase in the PAL limit for a PAL major modification. Such application shall identify the 

emissions unit(s) contributing to the increase in emissions so as to cause the major stationary source's 

emissions to equal or exceed its PAL. 

 (b) As part of this application, the major stationary source owner or operator shall demonstrate that 

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

April 24, 2009 62.5, St. 7 - Page 39
emissions of the significant and major emissions units assuming application of BACT equivalent controls, 

plus the sum of the allowable emissions of the new or modified emissions unit(s) exceeds the PAL. The level 

of control that would result from BACT equivalent controls on each significant or major emissions unit shall 

be determined by conducting a new BACT analysis at the time the application is submitted, unless the 

emissions unit is currently required to comply with a BACT or LAER requirement that was established within 

the preceding 10 years. In such a case, the assumed control level for that emissions unit shall be equal to the 

level of BACT or LAER with which that emissions unit must currently comply. 

 (c) The owner or operator obtains a major NSR permit for all emissions unit(s) identified in 

paragraph (aa)(11)(i)(a), 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. 

 (d) The PAL permit shall require 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. 

 (ii) The Department 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 as determined in accordance with 

paragraph (aa)(11)(i)(b)), plus the sum of the baseline actual emissions of the small emissions units. 

 (iii) The PAL permit shall be revised to reflect the increased PAL level pursuant to the public notice 

requirements of paragraph (aa)(5). 

 (12) Monitoring requirements for PALs. (i) General requirements. (a) Each PAL permit must contain 

enforceable requirements for the monitoring system that accurately determines plantwide emissions of the 

PAL pollutant in terms of mass per unit of time. Any monitoring system authorized for use in the PAL permit 

must be based on sound science and meet generally acceptable scientific procedures for data quality and 

manipulation. Additionally, the information generated by such system must meet minimum legal 

requirements for admissibility in a judicial proceeding to enforce the PAL permit. 

 (b) The PAL monitoring system must employ one or more of the four general monitoring 

approaches meeting the minimum requirements set forth in paragraphs (aa)(12)(ii)(a) through (d) and must be 

approved by the Department. 

 (c) Notwithstanding paragraph (aa)(12)(i)(b), the owner or operator may also employ an alternative 

monitoring approach that meets paragraph (aa)(12)(i)(a) if approved by the Department. 

 (d) Failure to use a monitoring system that meets the requirements of this regulation renders the 

PAL invalid. 

 (ii) Minimum performance requirements for approved monitoring approaches. The following are 

acceptable general monitoring approaches when conducted in accordance with the minimum requirements in 

paragraphs (aa)(12)(iii) through (ix): 

 (a) Mass balance calculations for activities using coatings or solvents; 

 (b) CEMS; 

April 24, 2009 62.5, St. 7 - Page 40
 (c) CPMS or PEMS; and 

 (d) Emission factors. 

 (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: 

 (a) Provide a demonstrated means of validating the published content of the PAL pollutant that is 

contained in or created by all materials used in or at the emissions unit; 

 (b) Assume that the emissions unit emits all of the PAL pollutant that is contained in or created by 

any raw material or fuel used in or at the emissions unit, if it cannot otherwise be accounted for in the process; 

and 

 (c) Where the vendor of a material or fuel, which is used in or at the emissions unit, publishes a 

range of pollutant content from such material, the owner or operator must use the highest value of the range to 

calculate the PAL pollutant emissions unless the Department determines there is site-specific data or a sitespecific monitoring program to support another content within the range. 

 (iv) CEMS. An owner or operator using CEMS to monitor PAL pollutant emissions shall meet the 

following requirements: 

 (a) CEMS must comply with applicable Performance Specifications found in 40 CFR 60, appendix 

B; and 

 (b) CEMS must sample, analyze and record data at least every 15 minutes while the emissions unit 

is operating. 

 (v) CPMS or PEMS. An owner or operator using CPMS or PEMS to monitor PAL pollutant emissions 

shall meet the following requirements: 

 (a) The CPMS or the PEMS must be based on current site-specific data demonstrating a correlation 

between the monitored parameter(s) and the PAL pollutant emissions across the range of operation of the 

emissions unit; and 

 (b) Each CPMS or PEMS must sample, analyze, and record data at least every 15 minutes, or at 

another less frequent interval approved by the Department, while the emissions unit is operating. 

 (vi) Emission factors. An owner or operator using emission factors to monitor PAL pollutant emissions 

shall meet the following requirements: 

 (a) All emission factors shall be adjusted, if appropriate, to account for the degree of uncertainty or 

limitations in the factors' development; 

 (b) The emissions unit shall operate within the designated range of use for the emission factor, if 

applicable; and 

 (c) If technically practicable, 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 sitespecific emission factor within 6 months of PAL permit issuance, unless the Department determines that 

testing is not required. 

April 24, 2009 62.5, St. 7 - Page 41
 (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 paragraphs (aa)(12)(iii) through (vii), 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 Department shall, at the time of 

permit issuance: 

 (a) Establish default value(s) for determining compliance with the PAL based on the highest 

potential emissions reasonably estimated at such operating point(s); or 

 (b) Determine that operation of the emissions unit during operating conditions when there is no 

correlation between monitored parameter(s) and the PAL pollutant emissions is a violation of the PAL. 

 (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 Department. Such testing must occur 

at least once every 5 years after issuance of the PAL. 

 (13) Recordkeeping requirements. (i) The PAL permit shall require an owner or operator to retain a copy 

of all records necessary to determine compliance with any requirement of paragraph (aa) and of the PAL, 

including a determination of each emissions unit's 12-month rolling total emissions, for 5 years from the date 

of such record. 

 (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: 

 (a) A copy of the PAL permit application and any applications for revisions to the PAL; and 

 (b) Each annual certification of compliance pursuant to title V and the data relied on in certifying 

the compliance. 

 (14) Reporting and notification requirements. The owner or operator shall submit semi-annual 

monitoring reports and prompt deviation reports to the Department in accordance with the applicable title V 

operating permit program. The reports shall meet the requirements in paragraphs (aa)(14)(i) through (iii). 

 (i) Semi-annual report. The semi-annual report shall be submitted to the Department within 30 days 

of the end of each reporting period. This report shall contain the information required in paragraphs 

(aa)(14)(i)(a) through (g). 

 (a) The identification of owner and operator and the permit number. 

 (b) Total annual emissions (tons/year) based on a 12-month rolling total for each month in the 

reporting period recorded pursuant to paragraph (aa)(13)(i). 

 (c) 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. 

 (d) A list of any emissions units modified or added to the major stationary source during the 

April 24, 2009 62.5, St. 7 - Page 42
preceding 6-month period. 

 (e) 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 taken. 

 (f) A notification of a shutdown of any monitoring system, whether the shutdown was permanent or 

temporary, the reason for the shutdown, the anticipated date that the monitoring system will be fully 

operational or replaced with another monitoring system, and whether the emissions unit monitored by the 

monitoring system continued to operate, and the calculation of the emissions of the pollutant or the number 

determined by method included in the permit, as provided by (aa)(12)(vii). 

 (g) A signed statement by the responsible official (as defined by the applicable title V operating 

permit program) certifying the truth, accuracy, and completeness of the information provided in the report. 

 (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 40 CFR 70.6(a)(3)(iii)(B) shall satisfy this reporting requirement. The deviation 

reports shall be submitted within the time limits prescribed by the applicable program implementing 40 CFR 

70.6(a)(3)(iii)(B). The reports shall contain the following information: 

 (a) The identification of owner and 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 the applicable title V operating 

permit program) certifying the truth, accuracy, and completeness of the information provided in the report. 

 (iii) Re-validation results. The owner or operator shall submit to the Department the results of any revalidation test or method within 3 months after completion of such test or method. 

 (15) Transition requirements. 

 (i) The Department may not issue a PAL that does not comply with the requirements in paragraphs 

(aa)(1) through (15) after the date these provisions become effective. 

 (ii) The Department may supersede any PAL that was established prior to the date these provisions 

become effective with a PAL that complies with the requirements of paragraphs (aa)(1) through (15). 

(bb) If any provision of this regulation, or the application of such provision to any person or circumstance, is 

held invalid, the remainder of this regulation, or the application of such provision to persons or circumstances 

other than those as to which it is held invalid, shall not be affected thereby. 

R. 61-62.5, Standard No. 7 History - South Carolina State Register:

 Vol. 9, Issue No. 5, (Doc. No. 457), May 24, 1985; 

 Vol. 9, Issue No. 5, (Doc. No. 577), May 24, 1985; 

 Vol. 13, Issue No. 2, (Doc. No. 868), February 24, 1989; 

 Vol. 12, Issue No. 4, (Doc. No. 970), April 22, 1988; 

 Vol. 13, Issue No. 3, (Doc. No. 1053), March 24, 1989; 

 Vol. 14, Issue No. 9, (Doc. No. 1310), August 24, 1990; 

April 24, 2009 62.5, St. 7 - Page 43
April 24, 2009 62.5, St. 7 - Page 44

 Vol. 16, Issue No. 6, (Doc. No. 1507), June 26, 1992; 

 Vol. 18, Issue No. 11, (Doc. No. 1799), November 25, 1994; 

 Vol. 20, Issue No. 4, (Doc. No. 1926), April 26, 1996; 

 Vol. 25, Issue No. 10, (Doc. No. 2648), October 26, 2001; 

 Vol. 29, Issue No. 6. (Doc. No. 2943), June 24, 2005; 

 Vol. 33, Issue No. 4, (Doc. No. 4056), April 24, 2009. 
SOUTH CAROLINA 

DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL 

AIR POLLUTION CONTROL REGULATIONS AND STANDARDS 

REGULATION 61-62.5 

AIR POLLUTION CONTROL STANDARDS 

STANDARD NO. 7.1 

NONATTAINMENT NEW SOURCE REVIEW (NSR) 

(a) Applicability 

 (1) This rule applies to all major stationary sources constructed or modified in any 

nonattainment area as designated in 40 CFR 81.341 ("nonattainment area") if the emissions from 

such facility will cause or contribute to concentrations of a regulated NSR pollutant (as defined in 

paragraph (c)(13)) for which the nonattainment area was designated as nonattainment. 

Applicability to this regulation shall be based on the pollutant emission rate set out in paragraph 

(c)(14) for only those pollutants for which the area’s designation is based. 

 (A) The requirements of paragraph (d) apply to the construction of any new major 

stationary source or the major modification of any existing major stationary source, except as 

provided in paragraph (b). 

 (B) No new major stationary source or major modification to which the requirements of 

paragraph (d) apply shall begin actual construction without a permit that states that the major 

stationary source or major modification will meet those requirements. The Department has 

authority to issue any such permit. 

 (2) Redesignation to attainment. If any nonattainment area to which this regulation applies is 

later designated in 40 CFR 81.341 as attainment, all sources in that nonattainment area subject to 

this regulation before the redesignation date shall continue to comply with this regulation. 

 (3) For any area designated as nonattainment a major stationary source or major modification 

that is major for volatile organic compounds or oxides of nitrogen is also major for ozone. 

(b) Applicability procedures. 

 (1) Except as otherwise provided in paragraphs (b)(7) and (8), and consistent with the 

definition of major modification contained in paragraph (c)(6)(A), 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 paragraph (c)(15), and a significant net emissions 

increase (as defined in paragraphs (c)(8) and (15). 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. 

 (2) The procedure for calculating (before beginning actual construction) whether a significant 

emissions increase (i.e., the first step of the process) will occur depends upon the type of 

emissions units being modified, according to paragraphs (b)(1) through (6). The procedure for 

calculating (before beginning actual construction) whether a significant net emissions increase 

April 24, 2009 62.5, St. 7.1 – Page 1 
will occur at the major stationary source (i.e., the second step of the process) is contained in the 

definition in paragraph (c)(8). Regardless of any such preconstruction projections, a major 

modification results if the project causes a significant emissions increase and a significant net 

emissions increase. 

 (3) Actual-to-projected-actual applicability test for projects that only involve existing 

emissions units. A significant emissions increase of a regulated NSR pollutant is projected to 

occur if the sum of the difference between the projected actual emissions (as defined in paragraph 

(c)(11)) and the baseline actual emissions (as defined in paragraphs (c)(2)(A) and (B), as 

applicable), for each existing emissions unit, equals or exceeds the significant amount for that 

pollutant (as defined in paragraph (c)(14)). 

 (4) Actual-to-potential test for projects that only involve construction of a new emissions 

unit(s). A significant emissions increase of a regulated NSR pollutant is projected to occur if the 

sum of the difference between the potential to emit (as defined in paragraph (b)(37) of Regulation 

61-62.5 Standard 7, “Prevention of Significant Deterioration” (“Standard 7”)) from each new 

emissions unit following completion of the project and the baseline actual emissions (as defined 

in paragraph (c)(2)(C)) of these units before the project equals or exceeds the significant amount 

for that pollutant (as defined in paragraph (c)(14)). 

 (5) [Reserved] 

 (6) 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 paragraphs (b)(3) and (4) 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 paragraph (c)(14)). 

 (7) For any major stationary source for a Plantwide Applicability Limitation (PAL) for a 

regulated NSR pollutant, the major stationary source shall comply with requirements under 

paragraph (i). 

(c) Definitions. The following definitions apply to this Standard only. Any other term contained 

within this Standard is as defined where indicated in Regulation 61-62.5, Standard 7, “Prevention 

of Significant Deterioration.” 

 (1)(A) “Actual emissions” means the actual rate of emissions of a regulated NSR pollutant 

from an emissions unit, as determined in accordance with paragraphs (c)(1)(B) through (D), 

except that this definition shall not apply for calculating whether a significant emissions increase 

has occurred, or for establishing a PAL under paragraph (i). Instead, paragraphs (c)(2) and (c)(11) 

shall apply for those purposes. 

 (B) In general, actual emissions as of a particular date shall equal the average rate, in tons 

per year, at which the unit actually emitted the pollutant during a consecutive 24-month period 

which precedes the particular date and which is representative of normal source operation. The 

Department shall allow the use of a different time period upon a determination that it is more 

representative of normal source operation. Actual emissions shall be calculated using the unit's 

actual operating hours, production rates, and types of materials processed, stored, or combusted 

during the selected time period. 

 (C) The Department may presume that source-specific allowable emissions for the unit 

April 24, 2009 62.5, St. 7.1 – Page 2 
are equivalent to the actual emissions of the unit. 

 (D) 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. 

 (2) “Baseline actual emissions” means the rate of emissions, in tons per year, of a regulated 

NSR pollutant, as determined in accordance with paragraphs (c)(2)(A) through (D). 

 (A) 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 

Department 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, and shutdowns. 

 (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, only one consecutive 24-month period must be used to determine the baseline actual 

emissions for the emissions units being changed. A different consecutive 24-month period can be 

used for each regulated NSR pollutant. 

 (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 paragraph (c)(2)(A)(ii). 

 (B) 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 Department 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. The Department reserves the right to determine if the 24-month 

period selected is appropriate. 

 (i) The average rate shall include fugitive emissions to the extent quantifiable, 

and emissions associated with startups and shutdowns. 

 (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 

April 24, 2009 62.5, St. 7.1 – Page 3 
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 

CFR 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 paragraph (d)(1)(c)(viii). 

 (iv) For a regulated NSR pollutant, when a project involves multiple emissions 

units, only one consecutive 24-month period must be used to determine the baseline actual 

emissions for the emissions units being changed. A different consecutive 24-month period can be 

used for each regulated NSR pollutant. 

 (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 paragraphs (c)(2)(B)(ii) and (iii). 

 (C) 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. 

 (D) For a PAL for a major stationary source, the baseline actual emissions shall be 

calculated for existing electric utility steam generating units in accordance with the procedures 

contained in paragraph (c)(2)(A), for other existing emissions units in accordance with the 

procedures contained in paragraph (c)(2)(B), and for a new emissions unit in accordance with the 

procedures contained in paragraph (c)(2)(C). 

 (3) “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 Department, 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 CFR 60 or 61. If the Department 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. 

 (4) [Reserved] 

 (5) “Lowest achievable emission rate (LAER)” means, for any source, the more stringent 

rate of emissions based on the following: 

 (A) The most stringent emissions limitation which is contained in the implementation 

plan of any State for such class or category of stationary source, unless the owner or operator of 

the proposed stationary source demonstrates that such limitations are not achievable; or 

April 24, 2009 62.5, St. 7.1 – Page 4 
 (B) The most stringent emissions limitation which is achieved in practice by such class or 

category of stationary sources. This limitation, when applied to a modification, means the lowest 

achievable emissions rate for the new or modified emissions units within a stationary source. In 

no event shall the application of the term permit a proposed new or modified stationary source to 

emit any pollutant in excess of the amount allowable under an applicable new source standard of 

performance. 

 (6)(A) “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 

paragraph (c)(13)); and 

 (ii) A significant net emissions increase of that pollutant from the major 

stationary source. 

 (B) Any significant emissions increase (as defined in paragraph (c)(15)) from any 

emissions units or net emissions increase (as defined in paragraph (c)(8)) at a major stationary 

source that is significant for volatile organic compounds or oxides of nitrogen shall be considered 

significant for ozone. 

 (C) 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 an order under sections 

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 section 125 of the 

Clean Air Act; 

 (iv) Use of an alternative fuel at a steam generating unit to the extent that the fuel 

is generated from municipal solid waste; 

 (v) Use of an alternative fuel or raw material by a stationary source which; 

 (a) The source was capable of accommodating before December 21, 

1976, unless such change would be prohibited under any federally enforceable permit condition 

which was established after December 12, 1976, or 

 (b) The source is approved to use under any permit issued under 

regulations approved pursuant to this section; 

 (vi) An increase in the hours of operation or in the production rate, unless such 

change is prohibited under any federally enforceable permit condition which was established after 

December 21, 1976. 

 (vii) Any change in ownership at a stationary source. 

April 24, 2009 62.5, St. 7.1 – Page 5 
 (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 South Carolina State Implementation Plan, and 

 (b) Other requirements necessary to attain and maintain the national 

ambient air quality standard during the project and after it is terminated. 

 (D) This definition shall not apply with respect to a particular regulated NSR pollutant 

when the major stationary source is complying with the requirements under paragraph (i) for a 

PAL for that pollutant. Instead, the definition at paragraph (i)(2)(viii) shall apply. 

 (7)(A) “Major stationary source” means: 

 (i) Any stationary source of air pollutants which emits, or has the potential to 

emit 100 tons per year or more of any regulated NSR pollutant, or 

 (ii) Any physical change that would occur at a stationary source not qualifying 

under paragraph (c)(7)(A)(i) as a major stationary source, if the change would constitute a major 

stationary source by itself. 

 (B) A major stationary source that is major for volatile organic compounds or oxides of 

nitrogen shall be considered major for ozone. 

 (C) The fugitive emissions of a stationary source shall not be included in determining for 

any of the purposes of this paragraph 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 capable of charging more than 250 tons of refuse per 

day; 

 (ix) Hydrofluoric, sulfuric, or nitric acid plants; 

 (x) Petroleum refineries; 

April 24, 2009 62.5, St. 7.1 – Page 6 
 (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 – The term chemical processing plant shall not 

include ethanol production facilities that produce ethanol by natural fermentation included in 

NAICS codes 325193 or 312140; 

 (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 which, as of August 7, 1980, is 

being regulated under section 111 or 112 of the Clean Air Act. 

(8)(A) “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 paragraph (b); 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 paragraph (c)(8)(A)(ii) shall be 

determined as provided in paragraph (c)(2), except that paragraphs (c)(2)(A)(iii) and (c)(2)(B)(iv) 

shall not apply. 

April 24, 2009 62.5, St. 7.1 – Page 7 
 (B) An increase or decrease in actual emissions is contemporaneous with the increase 

from the particular change only if it occurs before the date that the increase from the particular 

change occurs; 

 (C) An increase or decrease in actual emissions is creditable only if: 

 (i) It occurs within five years before construction on the particular change 

commences; and 

 (ii) The Department has not relied on it in issuing a permit for the source, which 

permit is in effect when the increase in actual emissions from the particular change occurs. 

 (D) An increase in actual emissions is creditable only to the extent that the new level of 

actual emissions exceeds the old level. 

 (E) 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 

whichever is lower, exceeds the new level of actual emissions; 

 (ii) It is enforceable as a practical matter at and after the time that actual 

construction on the particular change begins; and 

 (iii) The Department has not relied on it in issuing any permit or the Department 

has not relied on it in demonstrating attainment or reasonable further progress; 

 (iv) It has approximately the same qualitative significance for public health and 

welfare as that attributed to the increase from the particular change. 

 (F) 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, not to exceed 180 days. 

 (G) Paragraph (c)(1)(B) shall not apply for determining creditable increases and 

decreases or after a change. 

(9) “Nonattainment major new source review (NSR) program” means a major source 

preconstruction permit program that has been approved by the Administrator and incorporated 

into the plan to implement the requirements of this regulation, or a program that implements 40 

CFR 51, appendix S, Sections I through VI. Any permit issued under such a program is a major 

NSR permit. 

(10) [Reserved]

 (11)(A) “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 

April 24, 2009 62.5, St. 7.1 – Page 8 
the unit would result in a significant emissions increase or a significant net emissions increase at 

the major stationary source. 

 (B) In determining the projected actual emissions under paragraph (c)(11)(A) 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, and shutdowns; 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 paragraph (c)(2) and that are also unrelated to the particular project, 

including any increased utilization due to product demand growth; or, 

 (iv) In lieu of using the method set out in paragraphs (c)(11)(B)(i) through (iii) 

may elect to use the emissions unit's potential to emit, in tons per year, as defined under 

paragraph (b)(37) of Standard 7. 

(12) “Prevention of Significant Deterioration (PSD) permit” means any permit that is 

issued under a major source preconstruction permit program that has been approved by the 

Administrator and incorporated into the plan to implement the requirements of 40 CFR 51.166, or 

under the program in 40 CFR 52.21. 

(13) “Regulated NSR pollutant,” for purposes, means the following: 

 (A) Oxides of nitrogen or any volatile organic compounds; 

 (B) Any pollutant for which a national ambient air quality standard has been 

promulgated; or 

 (C) Any pollutant that is a constituent or precursor of a general pollutant listed under 

paragraphs (c)(13)(A) or (B), provided that a constituent or precursor pollutant may only be 

regulated under NSR as part of regulation of the general pollutant. 

(14) “Significant” means, in reference to a net emissions increase or the potential of a source 

to emit any of the following pollutants, as rate of emissions that would equal or exceed any of the 

following rates: 

Pollutant Emission Rate 

Carbon monoxide: 100 tons per year (tpy) 

Nitrogen oxides: 40 tpy 

Particulate matter: 

April 24, 2009 62.5, St. 7.1 – Page 9 
 15 tpy of PM10 emissions 

Sulfur dioxide: 40 tpy 

Ozone: 40 tpy of volatile organic compounds or oxides of nitrogen 

Lead: 0.6 tpy 

(15) “Significant emissions increase” means, for a regulated NSR pollutant, an increase in 

emissions that is significant (as defined in paragraph (c)(14)) for that pollutant. 

(16) “Volatile organic compounds (VOC)” is as defined in Regulation 61-62.1, Section I, 

Definitions. 

(d) Permitting requirements 

(1) Conditions for approval. If the Department finds that the major stationary source or 

major modification would be constructed in an area designated in 40 CFR 81.341 as 

nonattainment for a pollutant for which the stationary source or modification is major, approval 

may be granted only if the following conditions are met: 

 (A) The major stationary source or major modification is required to meet an 

emission limitation which specifies the lowest achievable emission rate (LAER) for such source. 

 (B) The applicant must certify that all existing major sources owned or operated by 

the applicant (or any entity controlling, controlled by, or under common control with the 

applicant) in the same State as the proposed source are in compliance with all applicable emission 

limitations and standards under the Clean Air Act (or are in compliance with an expeditious 

schedule which is Federally enforceable or contained in a court decree). 

 (C) The owner or operator of the proposed new major stationary source or major 

modification will obtain sufficient emission reductions of the nonattainment pollutant from other 

sources. Emission reductions shall be in effect and enforceable prior to the date the new source or 

modification commences operation. The emission reductions shall be obtained in accordance with 

the following provisions: 

 

 (i) Where the permitted emissions limit allows greater emissions than the 

potential to emit of the source, emissions offset credit will be allowed only for control below this 

potential; 

 (ii) For an existing fuel combustion source, credit shall be based on the allowable 

emissions for the type of fuel being burned at the time the application to construct is filed. If the 

existing source commits to switch to a cleaner fuel at some future date, emissions offset credit 

based on the allowable (or actual) emissions for the fuels involved is not acceptable, unless the 

permit is conditioned to require the use of a specified alternative control measure which would 

achieve the same degree of emissions reduction should the source switch back to a dirtier fuel at 

some later date. 

 (iii)(a) Emissions reductions achieved by shutting down an existing source or 

curtailing production or operating hours below baseline levels may be generally credited if such 

reductions are permanent, quantifiable, federally enforceable, occurred on or after the date of the 

most recent emissions inventory, and if the area has an EPA-approved attainment plan. 

April 24, 2009 62.5, St. 7.1 – Page 10 
 

 (b) Such reductions may be credited if the shutdown or curtailment 

occurred on or after the date the new source permit application is filed, or, if the applicant can 

establish that the proposed new source is a replacement for the shutdown or curtailed source, and 

the cutoff date provision of paragraph (d)(C)(iii)(a) are observed. 

 (iv) No emissions credit may be allowed for replacing one hydrocarbon 

compound with another of lesser reactivity, except for those compounds listed in Table 1 of 

EPA's "Recommended Policy on Control of Volatile Organic Compounds" (42 FR 35314, July 8, 

1977); 

 (v) All emission reductions claimed as offset credit shall be federally enforceable 

and surplus; 

 (a) Eligibility as Emission Offsets. Any facility that has the potential to 

emit any NAAQS pollutant in an amount greater than 5 tons per year and that is located in a 

federally-designated nonattainment area shall be eligible to create emission offsets. 

 

 (1) To be eligible to be an emission offset: 

 (A) A reduction in emissions shall be real, permanent, 

quantifiable, enforceable, and surplus and must have occurred after December 31 of the base year 

inventory for those pollutants that are designated nonattainment by the EPA. The base year 

inventory date is two years preceding the date of nonattainment designation. However, the 

Department 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. 

 (B) Emission reductions shall have been created by a 

facility that has obtained an enforceable air quality permit or letter of permit cancellation 

resulting from the surrender of the source’s permit(s). 

 

 (2) Emission reductions may be created by any or a combination 

of the following methods: 

 (A) Installation of control equipment beyond what is 

necessary to comply with existing requirements; 

 (B) A change in process inputs, formulations, products 

or product mix, fuels, or raw materials; 

 (C) A reduction in actual emission rates; 

 (D) A reduction in hours of operation; 

 (E) Production curtailment or reduction in throughput; 

 (F) Shutdown of emitting sources; or 

 

 (G) Any other enforceable method that the Department 

determines to result in real, permanent, quantifiable, enforceable, and surplus reduction of 

April 24, 2009 62.5, St. 7.1 – Page 11 
emissions. 

 (3) A completed emissions offset submittal must be received by 

the Department within one year of the date of the creation of the reductions. Emission offsets not 

requested within one year of the date of the creation of the reductions will be permanently retired. 

Prior to commencing operation of a permitted emissions unit, Department approval for the 

required emission offsets must be granted. 

 (4) The following are ineligible for emission offsets: 

 (A) Emission reductions that are not considered surplus, 

such as: 

 (i) Emission reductions that have previously 

been used to avoid Regulation 61-62.5 Standard No. 7, Prevention of Significant Deterioration,

or Regulation 61-62.5 Standard No. 7.1, Nonattainment New Source Review (NSR), through a 

netting demonstration; 

 (ii) Emission reductions of hazardous air 

pollutants, listed in Section 112(b) of the Clean Air Act, to the extent needed to comply with 

Regulation 61-62.61, National Emission Standards for Hazardous Air Pollutants (NESHAP), and 

Regulation 61-62.63, National Emission Standards for Hazardous Air Pollutants (NESHAP) for 

Source Categories, (however, emission reductions of hazardous volatile organic compound 

(VOC) and/or hazardous particulate matter (PM) air pollutants beyond the amount of reductions 

necessary to comply with Regulation 61-62.61, NESHAP, and Regulation 61-62.63, NESHAP for 

Source Categories, are considered surplus); 

 (iii) Emission reductions of nitrogen oxides 

(NOx), sulfur dioxide (SO2), particulate matter (PM) and VOCs to the extent needed to comply 

with Section 111 of the CAA and Regulation 61-62.60, South Carolina Designated Facility Plan 

and New Source Performance Standards (NSPS), (however, emission reductions of VOCs, NOx, 

SO2, PM and VOCs beyond the amount of reductions necessary to comply with Regulation 61-

62.60, South Carolina Designated Facility Plan and NSPS, are considered surplus); 

 (iv) Emission units covered under an agreement, 

order or variance for exceeding an emission standard until compliance is demonstrated with the 

emission standard that is the subject of the agreement, order or variance; 

 (v) Sources that have operated less than 12 

months; 

 (vi) Emission reductions required in order to 

comply with any State or Federal regulation not listed above, unless these reductions are in excess 

of the amount required by the State or Federal regulation; or 

 (vii) Facilities that have received a Department 

transmittal letter notifying of permit cancellation due to the facility’s decision to close out its 

operating permit without a request to qualify facility emission reductions as offsets. 

 (b) Calculation of Emission Offsets

April 24, 2009 62.5, St. 7.1 – Page 12 
 (1) The following procedure shall be followed to calculate 

emission offsets: 

 

 (A) The source shall calculate average annual actual 

emissions, in tons per year (tpy), before the emission reduction using data from the 24-month 

period immediately preceding the reduction in emissions. With the Department’s approval, the 

use of a different time period, not to exceed 10 years immediately preceding the reduction in 

emissions, may be allowed if the owner or operator of the source documents that such period is 

more representative of normal source operation, but not prior to the base year inventory date, 

which is the last day of the two years preceding the date of nonattainment designation; and 

 (B) The emission offsets created shall be calculated by 

subtracting the allowable emissions following the reduction from the average annual actual 

emissions prior to the reduction. 

 (2) For any emissions unit that has been operating for a 

consecutive period of at least 12 months but less than 24 months on the base year inventory date, 

based on the unit’s potential to emit, emissions shall be calculated equal to the amount needed to 

complete a 24 month period on the base year inventory date. 

 (vi) Location of offsetting emissions. Emission offsets shall be obtained from 

sources currently operating within the same designated nonattainment area as the new or 

modified stationary source. Emission offsets may be obtained from another nonattainment area 

with the Department’s approval only if (a) the other area has an equal or higher nonattainment 

classification then the area in which the proposed source is located and (b) emissions from the 

other area contribute to a violation of the NAAQS in the nonattainment area in which the source 

is located. 

 (vii) Emission offsetting ratios. Emission offsets shall be required in 

nonattainment areas in accordance with the following provisions: 

 (a) Emissions for carbon monoxide (CO), nitrogen dioxide (NO2), 

sulfur dioxide (SO2), lead (Pb), particulate matter (PM10 and PM2.5) nonattainment areas shall be 

offset at a ratio greater than one to one. 

 (b) Emissions for ozone nonattainment areas shall be offset for 

volatile organic compounds (VOCs) and nitrogen oxides (NOx) in accordance with the following 

table: 

Designation Offset ratios 

Subpart I >1 to 1 

Marginal 1.1 to 1 

Moderate 1.15 to 1 

Serious 1.2 to 1 

Severe 1.3 to 1 

Extreme 1.5 to 1 

 (viii) Credit for an emissions reduction can be claimed to the extent that the 

Department has not relied on it in issuing any permit under regulations approved pursuant to 40 

CFR part 51 subpart I or the Department has not relied on it in demonstrating attainment or 

April 24, 2009 62.5, St. 7.1 – Page 13 
reasonable further progress. 

 (ix) [Reserved] 

 (x) [Reserved] 

 (xi) The total tonnage of increased emissions, in tons per year, resulting from a 

major modification that must be offset in accordance with section 173 of the Clean Air Act shall 

be determined by summing the difference between the allowable emissions after the modification 

(as defined by paragraph (b)(3) of Standard 7) and the actual emissions before the modification 

(as defined in paragraph (c)(1)) for each emissions unit. 

 (D) The emission offsets must provide a positive net air quality benefit in the affected 

area as determined by 40 CFR 51, Appendix S, Emission Offset Interpretative Ruling. 

 (E) Alternative Sites Analysis. An analysis of alternative sites, sizes, production 

processes, and environmental control techniques for such proposed source demonstrates that 

benefits of the proposed source significantly outweigh the environmental and social costs 

imposed as a result of its location, construction, or modification shall be required. 

(2) (A) Any owner or operator who constructs or operates a source or modification not in 

accordance with the application submitted pursuant to this section or with the terms of any 

approval to construct, or any owner or operator of a source or modification subject to this section 

who commences construction after the effective date of these regulations without applying for 

and receiving approval hereunder, shall be subject to appropriate enforcement action. 

 (B) Approval to construct shall become invalid if construction is not commenced within 

18 months after receipt of such approval, if construction is discontinued for a period of 18 months 

or more, or if construction is not completed within a reasonable time. The Department may 

extend the 18-month period upon a satisfactory showing that an extension is justified. This 

provision does not apply to the time period between construction of the approved phases of a 

phased construction project; each phase must commence construction within 18 months of the 

projected and approved commencement date. 

 (C) Approval to construct shall not relieve any owner or operator of the responsibility to 

comply fully with applicable provisions of the plan and any other requirements under local, State 

or Federal law. 

 (D) At such time that a particular source or modification becomes a major stationary 

source or major modification solely by virtue of a relaxation in any enforcement limitation which 

was established after August 7, 1980, on the capacity of the source or modification otherwise to 

emit a pollutant, such as a restriction on hours of operation, then the requirements of regulations 

approved pursuant to this section shall apply to the source or modification as though construction 

had not yet commenced on the source or modification; 

 (3) The following provisions apply to projects at existing emissions units at a major stationary 

source (other than projects at a source with a PAL) in circumstances where there is a reasonable 

possibility that a project that is not a part of a major modification may result in a significant 

emissions increase and the owner or operator elects to use the method specified in paragraphs 

(c)(11)(B)(i) through (iii) for calculating projected actual emissions. 

April 24, 2009 62.5, St. 7.1 – Page 14 
 (A) If the project requires construction permitting under Regulation 61-62.1, Section II 

“Permit Requirements,” the owner or operator shall provide a copy of the information set out in 

paragraph (d)(3)(B) as part of the permit application to the Department. If construction permitting 

under Regulation 61-62.1, Section II “Permit Requirements” is not required, the owner or 

operator shall maintain the information set out in paragraph (d)(3). 

 

 (B) Before beginning actual construction of the project, the owner or operator shall 

document and maintain a record of the following information: 

 (i) A description of the project; 

 (ii) Identification of the emissions unit(s) whose emissions of a regulated NSR 

pollutant could be affected by the project; and 

 (iii) A description of the applicability test used to determine that the project is not 

a major modification for any regulated NSR pollutant, including the baseline actual emissions, 

the projected actual emissions, the amount of emissions excluded under paragraph (c)(11)(B)(iii) 

and an explanation for why such amount was excluded, and any netting calculations, if 

applicable. 

 (C) The owner or operator shall monitor the emissions of any regulated NSR pollutant 

that could increase as a result of the project and that is emitted by any emissions units identified 

in paragraph (d)(3)(B)(ii); and calculate and maintain a record of the annual emissions, in tons per 

year on a calendar year basis, for a period of 5 years following resumption of regular operations 

after the change, or for a period of 10 years following resumption of regular operations after the 

change if the project increases the design capacity or potential to emit of that regulated NSR 

pollutant at such emissions unit. 

 (D) If the unit is an existing electric utility steam generating unit, the owner or operator 

shall submit a report to the Department within 60 days after the end of each year during which 

records must be generated under paragraph (d)(3)(B) setting out the unit's annual emissions 

during the year that preceded submission of the report. 

 (E) 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 Department if the annual emissions, in tons per 

year, from the project identified in paragraph (d)(3)(B), exceed the baseline actual emissions (as 

documented and maintained pursuant to paragraph (d)(3)(B)(iii)), by a significant amount (as 

defined in paragraph (c)(14)) for that regulated NSR pollutant, and if such emissions differ from 

the preconstruction projection as documented and maintained pursuant to paragraph (d)(3)(B)(iii). 

Such report shall be submitted to the Department within 60 days after the end of such year. The 

report shall contain the following: 

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

 (ii) The annual emissions as calculated pursuant to paragraph (d)(3)(C); and 

 (iii) Any other information needed for to make a compliance determination (e.g., 

an explanation as to why the emissions differ from the preconstruction projection). 

 (4) If a project at a source with a PAL requires construction permitting under Regulation 61-

April 24, 2009 62.5, St. 7.1 – Page 15 
62.1, Section II, “Permit Requirements,” the owner or operator shall provide notification of 

source status as part of the permit application to the Department. 

(5) The owner or operator of the source shall make the information required to be documented 

and maintained pursuant to paragraph (d)(3) for review upon a request for inspection by the 

Department or the general public pursuant to the requirements contained in 40 CFR 

70.4(b)(3)(viii). 

 (6) Public Participation. Within 30 days after receipt of an application to construct, or any 

addition to such application, the Department shall advise the applicant of any deficiency in the 

application or in the information submitted and transmit a copy of such application to EPA. In the 

event of such a deficiency, the date of receipt of the application shall be, for the purpose of this 

regulation, the date on which the Department received all required information. 

 (7) In accordance with Regulation 61-30, Environmental Protection Fees, the Department 

shall make a final determination on the application. This involves performing the following 

actions in a timely manner: 

 (i) For the purposes of this paragraph (d)(7), the time frame for making a final 

determination shall be consistent with R. 61-30, Environmental Protection Fees, paragraph 

(H)(2)(c)(iii). 

 (ii) Make a preliminary determination whether construction should be approved, 

approved with conditions, or disapproved. 

 (iii) Make available in at least one location in each region in which the proposed plant or 

modification would be constructed a copy of all materials the applicant submitted, a copy of the 

preliminary determination and a copy or summary of other materials, if any, considered in 

making the preliminary determination. 

 (iv) Notify the public, by advertisement in a newspaper of general circulation in each 

region in which the proposed plant or modification would be constructed, of the application, the 

preliminary determination, the degree of increment consumption that is expected from the plant 

or modification, and the opportunity for comment at a public hearing as well as written public 

comment. 

 (v) Send a copy of the notice of public comment to the applicant, the Administrator of 

EPA, and to officials and agencies having cognizance over the location where the proposed 

construction would occur as follows: The chief executives of the city and county where the plant 

or modification would be located, any comprehensive regional land use planning agency and any 

State, Federal Land Manager, or Indian Governing Body whose lands may be affected by 

emissions from the plant or modification. 

 (vi) Provide opportunity for a public hearing for interested persons to appear and submit 

written or oral comments on the air quality impact of the plant or modification, alternatives to the 

plant or modification, the control technology required, and other appropriate considerations. 

 (vii) Consider all written comments submitted within a time specified in the notice of 

public comment and all comments received at any public hearing(s) in making a final decision on 

the approvability of the application. No later than 10 days after the close of the public comment 

period, the applicant may submit a written response to any comments submitted by the public. 

April 24, 2009 62.5, St. 7.1 – Page 16 
The Department shall consider the applicant’s response in making a final decision. The 

Department shall make all comments available for public inspection in the same locations where 

the Department made available preconstruction information relating to the proposed plant or 

modification. 

 (viii) Make a final determination whether construction should be approved, approved 

with conditions, or disapproved pursuant to this section. 

 (ix) Notify the applicant in writing of the final determination and make such notification 

available for public inspection at the same location where the Department made available 

preconstruction information and public comments relating to the plant or modification. 

 (x) Notify EPA of every action related to the consideration of the permit. 

(e) Exemptions. The provisions of paragraph (d) shall not apply to a particular major stationary 

source or major modification if the source or modification would be 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: 

(A) Coal cleaning plants (with thermal dryers); 

 (B) Kraft pulp mills; 

 (C) Portland cement plants; 

 (D) Primary zinc smelters; 

 (E) Iron and steel mills; 

 (F) Primary aluminum ore reduction plants; 

 (G) Primary copper smelters; 

 (H) Municipal incinerators capable of charging more than 250 tons of refuse per day; 

 (I) Hydrofluoric, sulfuric, or nitric acid plants; 

 (J) Petroleum refineries; 

 (K) Lime plants; 

 (L) Phosphate rock processing plants; 

 (M) Coke oven batteries; 

 (N) Sulfur recovery plants; 

 (O) Carbon black plants (furnace process); 

 (P) Primary lead smelters; 

April 24, 2009 62.5, St. 7.1 – Page 17 
 (Q) Fuel conversion plants; 

 (R) Sintering plants; 

 (S) Secondary metal production plants; 

 (T) Chemical process plants - The term chemical process plant shall not include ethanol 

production facilities that produce ethanol by natural fermentation included in NAICS codes 

325193 or 312140; 

 (U) Fossil-fuel boilers (or combination thereof) totaling more than 250 million British 

thermal units per hour heat input; 

 (V) Petroleum storage and transfer units with a total storage capacity exceeding 300,000 

barrels; 

 (W) Taconite ore processing plants; 

 (X) Glass fiber processing plants; 

 (Y) Charcoal production plants; 

 (Z) Fossil fuel-fired steam electric plants of more than 250 million British thermal units 

per hour heat input; and 

 (AA) Any other stationary source category which, as of August 7, 1980, is being 

regulated under section 111 or 112 of the Clean Air Act. 

(f) [Reserved]

(g) [Reserved]

(h) [Reserved]

(i) Actuals PALs. The provisions in paragraphs (i)(1) through (15) govern actuals PALs. 

(1) Applicability. 

 (i) The Department may approve the use of an actuals PAL for any existing major 

stationary source (except as provided in paragraph (i)(1)(ii)) if the PAL meets the requirements in 

paragraphs (i)(1) through (15). The term "PAL" shall mean "actuals PAL" throughout paragraph 

(i). 

 (ii) The Department shall not allow an actuals PAL for VOC or NOx for any major 

stationary source located in an extreme ozone nonattainment area. 

 (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 paragraphs (i)(1) through (15), and complies with the PAL permit: 

April 24, 2009 62.5, St. 7.1 – Page 18 
 (A) Is not a major modification for the PAL pollutant; 

 (B) Does not have to be approved through Regulation 61-62.5, Standard 7.1, 

“Nonattainment New Source Review”; however, will be reviewed through Regulation 61-62.1, 

Section II A. “Permit Requirements,” and 

 (C) Is not subject to the provisions in paragraph (d)(2)(D) (restrictions on 

relaxing enforceable emission limitations that the major stationary source used to avoid 

applicability of the nonattainment major NSR program). 

 (iv) Except as provided under paragraph (i)(1)(iii)(C), 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. 

 (2) Definitions. The definitions in paragraphs (i)(2)(i) through (xi) shall apply to actuals PALs 

consistent with paragraphs (i)(1) through (15). When a term is not defined in these paragraphs, it 

shall have the meaning given in paragraph (c) of this regulation; paragraph (b) of Regulation 61-

62.5, Standard 7, “Prevention of Significant Deterioration”(“Standard 7”); or in the Clean Air 

Act. 

 (i) Actuals PAL for a major stationary source means a PAL based on the baseline actual 

emissions (as defined in paragraph (c)(1)) of all emissions units (as defined in paragraph (b)(20) 

of Standard 7) at the source, that emit or have the potential to emit the PAL pollutant. 

 (ii) Allowable emissions means "allowable emissions" as defined in paragraph (b)(3) of 

Standard 7, except as this definition is modified according to paragraphs (i)(2)(ii)(A) through (B). 

 (A) 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. 

 (B) An emissions unit's potential to emit shall be determined using the definition 

in paragraph (b)(37) of Standard 7, 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 

paragraph (c)(14) or in the Clean Air Act, whichever is lower. 

 (iv) Major emissions unit means: 

 (A) 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 

 (B) 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 Clean Air Act for nonattainment areas. For example, in accordance with the 

definition of major stationary source in section 182(c) of the Clean Air Act, an emissions unit 

would be a major emissions unit for VOC if the emissions unit is located in a serious ozone 

nonattainment area and it emits or has the potential to emit 50 or more tons of VOC per year. 

April 24, 2009 62.5, St. 7.1 – Page 19 
 (v) Plantwide applicability limitation (PAL) means an emission limitation expressed in 

tons per year, for a pollutant at a major stationary source, that is enforceable as a practical matter 

and established source-wide in accordance with paragraphs (i)(1) through (i)(15). 

 (vi) PAL effective date generally means the date of issuance of the PAL permit. 

However, the PAL effective date for an increased PAL is the date any emissions unit which is 

part of the PAL major modification becomes operational and begins to emit the PAL pollutant. 

 (vii) PAL effective period means the period beginning with the PAL effective date and 

ending 10 years later. 

 (viii) PAL major modification means, notwithstanding paragraphs (c)(6) and (8) (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. 

 (ix) PAL permit means the major NSR permit, the minor NSR permit, or the State 

operating permit under Regulation 61-62.1 Section II G, or the title V permit issued by the 

Department that establishes a PAL for a major stationary source. 

 (x) PAL pollutant means the pollutant for which a PAL is established at a major 

stationary source. 

 (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 paragraph (c)(13) or in the 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 paragraph 

(i)(2)(iv). 

(3) 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 

Department for approval: 

 (i) A list of all emissions units at the source designated as small, significant or major 

based on their potential to emit. In addition, the owner or operator of the source shall indicate 

which, if any, Federal or State applicable requirements, emission limitations or work practices 

apply to each unit. 

 (ii) Calculations of the baseline actual emissions (with supporting documentation). 

Baseline actual emissions are to include emissions associated not only with operation of the unit, 

but also emissions associated with startup, shutdown and malfunction. 

 (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 paragraph (i)(13)(i). 

(4) General requirements for establishing PALs. 

 (i) The Department is allowed to establish a PAL at a major stationary source, provided 

that at a minimum, the requirements in paragraphs (i)(4)(i)(A) through (G) are met. 

April 24, 2009 62.5, St. 7.1 – Page 20 
 (A) 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. 

 (B) The PAL shall be established in a PAL permit that meets the public 

participation requirements in paragraph (i)(5). 

 (C) The PAL permit shall contain all the requirements of paragraph (i)(7). 

 (D) 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. 

 (E) Each PAL shall regulate emissions of only one pollutant. 

 (F) Each PAL shall have a PAL effective period of 10 years. 

 (G) The owner or operator of the major stationary source with a PAL shall 

comply with the monitoring, recordkeeping, and reporting requirements provided in paragraphs 

(i)(12) through (14) for each emissions unit under the PAL through the PAL effective period. 

 (ii) At no time (during or after the PAL effective period) are emissions reductions of a 

PAL pollutant, which occur during the PAL effective period, creditable as decreases for purposes 

of offsets under paragraph (d)(1)(c) 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. 

(5) Public participation requirement for PALs. PALs for existing major stationary sources 

shall be established, renewed, or increased through a procedure that is consistent paragraph (d)(6) 

and (d)(7). The Department must address all material comments before taking final action on the 

permit. 

(6) Setting the 10-year actuals PAL level. (i) Except as provided in paragraph (i)(6)(ii), the 

actuals PAL level for a major stationary source shall be established as the sum of the baseline 

actual emissions (as defined in paragraph (c)(2)) of the PAL pollutant for each emissions unit at 

the source; plus an amount equal to the applicable significant level for the PAL pollutant under 

paragraph (c)(14) or under the Clean Air Act, whichever is lower. When establishing the actuals 

PAL level, for a PAL pollutant, only one consecutive 24-month period must be used to determine 

the baseline actual emissions for all existing emissions units. However, a different consecutive 

24-month period may be used for each different PAL pollutant. Emissions associated with units 

that were permanently shut down after this 24-month period must be subtracted from the PAL 

level. The Department shall specify a reduced PAL level(s) (in tons/yr) in the PAL permit to 

become effective on the future compliance date(s) of any applicable Federal or State regulatory 

requirement(s) that the Department is aware of prior to issuance of the PAL permit. For instance, 

if the source owner or operator will be required to reduce emissions from industrial boilers in half 

April 24, 2009 62.5, St. 7.1 – Page 21 
from baseline emissions of 60 ppm NOX to a new rule limit of 30 ppm, then the permit shall 

contain a future effective PAL level that is equal to the current PAL level reduced by half of the 

original baseline emissions of such unit(s). 

 (ii) For newly constructed units (which do not include modifications to existing units) on 

which operation began less than 24-months prior to the date of the PAL permit application, the 

emissions must be added to the PAL level in an amount equal to the potential to emit of the units. 

(7) Contents of the PAL permit. The PAL permit must contain, at a minimum, the 

information in paragraphs (i)(7)(i) through (x). 

 (i) The PAL pollutant and the applicable source-wide emission limitation in tons per year. 

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

period). 

 (iii) Specification in the PAL permit that if a major stationary source owner or operator 

applies to renew a PAL in accordance with paragraph (i)(10) before the end of the PAL effective 

period, then the PAL shall not expire at the end of the PAL effective period. It shall remain in 

effect until a revised PAL permit is issued by the Department. 

 (iv) A requirement that emission calculations for compliance purposes include emissions 

from startups, shutdowns and malfunctions. 

 (v) A requirement that, once the PAL expires, the major stationary source is subject to the 

requirements of paragraph (i)(9). 

 (vi) 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 

12-month rolling total for each month as required by paragraph (i)(13)(i). 

 (vii) A requirement that the major stationary source owner or operator monitor all 

emissions units in accordance with the provisions under paragraph (i)(12). 

 (viii) A requirement to retain the records required under paragraph (i)(13) on site. Such 

records may be retained in an electronic format. 

 (ix) A requirement to submit the reports required under paragraph (i)(14) by the required 

deadlines. 

 (x) Any other requirements that the Department deems necessary to implement and 

enforce the PAL. 

(8) PAL effective period and reopening of the PAL permit. The requirements in paragraphs 

(i)(8)(i) and (ii) apply to actuals PALs. 

 (i) PAL effective period. The Department shall specify a PAL effective period of 10 

years. 

 (ii) Reopening of the PAL permit. 

April 24, 2009 62.5, St. 7.1 – Page 22 
 (A) During the PAL effective period, the Department must reopen the PAL 

permit to: 

 (1) Correct typographical/calculation errors made in setting the PAL or 

reflect a more accurate determination of emissions used to establish the PAL. 

 (2) Reduce the PAL if the owner or operator of the major stationary 

source creates creditable emissions reductions for use as offsets under paragraph (d)(2). 

 (3) Revise the PAL to reflect an increase in the PAL as provided under 

paragraph (i)(11). 

 (B) The Department shall have discretion to reopen the PAL permit for the 

following: 

 (1) Reduce the PAL to reflect newly applicable Federal requirements (for 

example, NSPS) with compliance dates after the PAL effective date. 

 (2) Reduce the PAL consistent with any other requirement, that is 

enforceable as a practical matter, and that the Department may impose on the major stationary 

source under the State Implementation Plan. 

 (3) Reduce the PAL if the Department 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 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. 

 (C) Except for the permit reopening in paragraph (i)(8)(ii)(A)(1) for the 

correction of typographical/calculation errors that do not increase the PAL level, all other 

reopenings shall be carried out in accordance with the public participation requirements of 

paragraph (i)(5). 

(9) Expiration of a PAL. Any PAL which is not renewed in accordance with the procedures 

in paragraph (i)(10) shall expire at the end of the PAL effective period, and the requirements in 

paragraphs (i)(9)(i) through (v) shall apply. 

 (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 paragraphs (i)(9)(i)(A) through (B). 

 (A) Within the time frame specified for PAL renewals in paragraph (i)(10)(ii), 

the major stationary source shall submit a proposed allowable emission limitation for each 

emissions unit (or each group of emissions units, if such a distribution is more appropriate as 

decided by the Department) by distributing the PAL allowable emissions for the major stationary 

source among each of the emissions units that existed under the PAL. If the PAL had not yet been 

adjusted for an applicable requirement that became effective during the PAL effective period, as 

required under paragraph (i)(10)(v), such distribution shall be made as if the PAL had been 

adjusted. 

 (B) The Department shall decide whether and how the PAL allowable emissions 

April 24, 2009 62.5, St. 7.1 – Page 23 
will be distributed and issue a revised permit incorporating allowable limits for each emissions 

unit, or each group of emissions units, as the Department determines is appropriate. 

 (ii) Each emissions unit(s) shall comply with the allowable emission limitation on a 12-

month rolling basis. The Department may approve the use of monitoring systems (source testing, 

emission factors, etc.) other than CEMS, CERMS, PEMS or CPMS to demonstrate compliance 

with the allowable emission limitation. 

 (iii) Until the Department issues the revised permit incorporating allowable limits for 

each emissions unit, or each group of emissions units, as required under paragraph (i)(9)(i)(A), 

the source shall continue to comply with a source-wide, multi-unit emissions cap equivalent to 

the level of the PAL emission limitation. 

 (iv) Any physical change or change in the method of operation at the major stationary 

source will be subject to the nonattainment major NSR requirements if such change meets the 

definition of major modification in paragraph (c)(6). 

 (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 paragraph (d)(2)(D), but were 

eliminated by the PAL in accordance with the provisions in paragraph (i)(1)(iii)(C). 

(10) Renewal of a PAL. 

 (i) The Department shall follow the procedures specified in paragraph (i)(5) in approving 

any request to renew a PAL for a major stationary source, and shall provide both the proposed 

PAL level and a written rationale for the proposed PAL level to the public for review and 

comment. During such public review, any person may propose a PAL level for the source for 

consideration by the Department. 

 (ii) Application deadline. A major stationary source owner or operator shall submit a 

timely application to the Department to request renewal of a PAL. A timely application is one 

that is submitted at least 6 months prior to, but not earlier than 18 months from, the date of permit 

expiration. This deadline for application submittal is to ensure that the permit will not expire 

before the permit is renewed. If the owner or operator of a major stationary source submits a 

complete application to renew the PAL within this time period, then the PAL shall continue to be 

effective until the revised permit with the renewed PAL is issued. 

 (iii) Application requirements. The application to renew a PAL permit shall contain the 

information required in paragraphs (i)(10)(iii)(A) through (D). 

 (A) The information required in paragraphs (i)(3)(i) through (iii). 

 (B) A proposed PAL level. 

 (C) The sum of the potential to emit of all emissions units under the PAL (with 

supporting documentation). 

 (D) Any other information the owner or operator wishes the Department to 

consider in determining the appropriate level for renewing the PAL. 

April 24, 2009 62.5, St. 7.1 – Page 24 
 (iv) PAL adjustment. In determining whether and how to adjust the PAL, the 

Department shall consider the options outlined in paragraphs (i)(10)(iv)(A) and (B). However, in 

no case may any such adjustment fail to comply with paragraph (i)(10)(iv)(C). 

 (A) If the emissions level calculated in accordance with paragraph (i)(6) is equal 

to or greater than 80 percent of the PAL level, the Department may renew the PAL at the same 

level without considering the factors set forth in paragraph (i)(10)(iv)(B); or 

 (B) The Department may set the PAL at a level that it determines to be more 

representative of the source's baseline actual emissions, or that it determines to be appropriate 

considering air quality needs, advances in control technology, anticipated economic growth in the 

area, desire to reward or encourage the source's voluntary emissions reductions, or other factors 

as specifically identified by the Department in its written rationale. 

 (C) Notwithstanding paragraphs (i)(10)(iv)(A) and (B), 

 (1) If the potential to emit of the major stationary source is less than the 

PAL, the Department shall adjust the PAL to a level no greater than the potential to emit of the 

source; and 

 (2) The Department shall not approve a renewed PAL level higher than 

the current PAL, unless the major stationary source has complied with the provisions of 

paragraph (i)(11) (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 Department 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. 

(11) Increasing a PAL during the PAL effective period.

 (i) The Department may increase a PAL emission limitation only if the major stationary 

source complies with the provisions in paragraphs (i)(11)(i)(A) through (D). 

 (A) The owner or operator of the major stationary source shall submit a complete 

application to request an increase in the PAL limit for a PAL major modification. Such 

application shall identify the emissions unit(s) contributing to the increase in emissions so as to 

cause the major stationary source's emissions to equal or exceed its PAL. 

 (B) As part of this application, the major stationary source owner or operator 

shall demonstrate that the sum of the baseline actual emissions of the small emissions units, 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 allowable emissions of the new or 

modified emissions unit(s) exceeds the PAL. The level of control that would result from BACT 

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

a new BACT analysis at the time the application is submitted, unless the emissions unit is 

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

preceding 10 years. In such a case, the assumed control level for that emissions unit shall be equal 

to the level of BACT or LAER with which that emissions unit must currently comply. 

April 24, 2009 62.5, St. 7.1 – Page 25 
 (C) The owner or operator obtains a major NSR permit for all emissions unit(s) 

identified in paragraph (i)(11)(i)(A), 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 nonattainment major NSR program process 

(for example, LAER), even though they have also become subject to the PAL or continue to be 

subject to the PAL. 

 (D) The PAL permit shall require 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. 

 (ii) The Department 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 as 

determined in accordance with paragraph (i)(11)(i)(B)), plus the sum of the baseline actual 

emissions of the small emissions units. 

 (iii) The PAL permit shall be revised to reflect the increased PAL level pursuant to the 

public notice requirements of paragraph (i)(5). 

(12) Monitoring requirements for PALs. 

 (i) General Requirements. 

 (A) Each PAL permit must contain enforceable requirements for the monitoring 

system that accurately determines plantwide emissions of the PAL pollutant in terms of mass per 

unit of time. Any monitoring system authorized for use in the PAL permit must be based on 

sound science and meet generally acceptable scientific procedures for data quality and 

manipulation. Additionally, the information generated by such system must meet minimum legal 

requirements for admissibility in a judicial proceeding to enforce the PAL permit. 

 (B) The PAL monitoring system must employ one or more of the four general 

monitoring approaches meeting the minimum requirements set forth in paragraphs (i)(12)(ii)(A) 

through (D) and must be approved by the Department. 

 (C) Notwithstanding paragraph (i)(12)(i)(B), you may also employ an alternative 

monitoring approach that meets paragraph (i)(12)(i)(A) if approved by the Department. 

 (D) Failure to use a monitoring system that meets the requirements of this 

regulation renders the PAL invalid. 

 (ii) Minimum Performance Requirements for Approved Monitoring Approaches. The 

following are acceptable general monitoring approaches when conducted in accordance with the 

minimum requirements in paragraphs (i)(12)(iii) through (ix): 

 (A) Mass balance calculations for activities using coatings or solvents; 

 (B) Continuous emissions monitoring system (CEMS); 

 (C) Continuous parameter monitoring system (CPMS) or Predictive emissions 

monitoring system (PEMS); and 

April 24, 2009 62.5, St. 7.1 – Page 26 
 (D) Emission Factors. 

 (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: 

 (A) Provide a demonstrated means of validating the published content of the PAL 

pollutant that is contained in or created by all materials used in or at the emissions unit; 

 (B) Assume that the emissions unit emits all of the PAL pollutant that is 

contained in or created by any raw material or fuel used in or at the emissions unit, if it cannot 

otherwise be accounted for in the process; and 

 (C) Where the vendor of a material or fuel, which is used in or at the emissions 

unit, publishes a range of pollutant content from such material, the owner or operator must use the 

highest value of the range to calculate the PAL pollutant emissions unless the Department 

determines there is site-specific data or a site-specific monitoring program to support another 

content within the range. 

 (iv) CEMS. An owner or operator using CEMS to monitor PAL pollutant emissions shall 

meet the following requirements: 

 (A) CEMS must comply with applicable Performance Specifications found in 40 

CFR part 60, appendix B; and 

 (B) CEMS must sample, analyze and record data at least every 15 minutes while 

the emissions unit is operating. 

 (v) CPMS or PEMS. An owner or operator using CPMS or PEMS to monitor PAL 

pollutant emissions shall meet the following requirements: 

 (A) The CPMS or the PEMS must be based on current site-specific data 

demonstrating a correlation between the monitored parameter(s) and the PAL pollutant emissions 

across the range of operation of the emissions unit; and 

 (B) Each CPMS or PEMS must sample, analyze, and record data at least every 15 

minutes, or at another less frequent interval approved by the Department, while the emissions unit 

is operating. 

 (vi) Emission factors. An owner or operator using emission factors to monitor PAL 

pollutant emissions shall meet the following requirements: 

 (A) All emission factors shall be adjusted, if appropriate, to account for the 

degree of uncertainty or limitations in the factors' development; 

 (B) The emissions unit shall operate within the designated range of use for the 

emission factor, if applicable; and 

 (C) If technically practicable, the owner or operator of a significant emissions 

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

April 24, 2009 62.5, St. 7.1 – Page 27 
validation testing to determine a site-specific emission factor within 6 months of PAL permit 

issuance, unless the Department determines that testing is not required. 

 (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 paragraphs (i)(12)(iii) through (vii), 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 Department shall, at the time of permit issuance: 

 (A) Establish default value(s) for determining compliance with the PAL based on 

the highest potential emissions reasonably estimated at such operating point(s); or 

 (B) Determine that operation of the emissions unit during operating conditions 

when there is no correlation between monitored parameter(s) and the PAL pollutant emissions is 

a violation of the PAL. 

 (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 Department. 

Such testing must occur at least once every 5 years after issuance of the PAL. 

(13) Recordkeeping requirements. 

 (i) The PAL permit shall require an owner or operator to retain a copy of all records 

necessary to determine compliance with any requirement of paragraph (i) and of the PAL, 

including a determination of each emissions unit's 12-month rolling total emissions, for 5 years 

from the date of such record. 

 (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: 

 (A) A copy of the PAL permit application and any applications for revisions to 

the PAL; and 

 (B) Each annual certification of compliance pursuant to title V and the data relied 

on in certifying the compliance. 

(14) Reporting and notification requirements. The owner or operator shall submit semiannual monitoring reports and prompt deviation reports to the Department in accordance with the 

applicable title V operating permit program. The reports shall meet the requirements in 

paragraphs (i)(14)(i) through (iii). 

 (i) Semi-Annual Report. The semi-annual report shall be submitted to the Department 

within 30 days of the end of each reporting period. This report shall contain the information 

required in paragraphs (i)(14)(i)(A) through (G). 

 (A) The identification of owner and operator and the permit number. 

April 24, 2009 62.5, St. 7.1 – Page 28 
 (B) Total annual emissions (tons/year) based on a 12-month rolling total for each 

month in the reporting period recorded pursuant to paragraph (i)(13)(i). 

 (C) 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. 

 (D) A list of any emissions units modified or added to the major stationary source 

during the preceding 6-month period. 

 (E) 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 taken. 

 (F) A notification of a shutdown of any monitoring system, whether the 

shutdown was permanent or temporary, the reason for the shutdown, the anticipated date that the 

monitoring system will be fully operational or replaced with another monitoring system, and 

whether the emissions unit monitored by the monitoring system continued to operate, and the 

calculation of the emissions of the pollutant or the number determined by method included in the 

permit, as provided by paragraph (i)(12)(vii). 

 (G) A signed statement by the responsible official (as defined by Regulation 61-

62.70, Title V Operating Permit Program) certifying the truth, accuracy, and completeness of the 

information provided in the report. 

 (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 40 CFR 70.6(a)(3)(iii)(B) shall satisfy 

this reporting requirement. The deviation reports shall be submitted within the time limits 

prescribed by the applicable program implementing 40 CFR 70.6(a)(3)(iii)(B). The reports shall 

contain the following information: 

 (A) The identification of owner and 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 the applicable 

title V operating permit program) certifying the truth, accuracy, and completeness of the 

information provided in the report. 

 (iii) Re-validation results. The owner or operator shall submit to the Department the 

results of any re-validation test or method within 3 months after completion of such test or 

method. 

(15) Transition requirements. 

 (i) The Department may not issue a PAL that does not comply with the requirements in 

paragraphs (aa)(1) through (15) after the date these provisions become effective. 

April 24, 2009 62.5, St. 7.1 – Page 29 
April 24, 2009 62.5, St. 7.1 – Page 30 

 (ii) The Department may supersede any PAL which was established prior to the date of 

approval of the plan by the Administrator with a PAL that complies with the requirements of 

paragraphs (i)(1) through (15). 

(j) If any provision of this regulation, or the application of such provision to any person or 

circumstance, is held invalid, the remainder of this regulation, or the application of such provision 

to persons or circumstances other than those as to which it is held invalid, shall not be affected 

thereby. 

R. 61-62.5, Standard No. 7 History - South Carolina State Register: 

 Vol. 29, Issue No. 6. (Doc. No. 2943), June 24, 2005; 

 Vol. 33, Issue No. 4, (Doc. No. 4056), April 24, 2009.