November, 2011 (Revised) 1 

RULES 

OF 

TENNESSEE DEPARTMENT OF ENVIRONMENT AND CONSERVATION 

BUREAU OF ENVIRONMENT 

DIVISION OF AIR POLLUTION CONTROL 

CHAPTER 1200-03-09 

CONSTRUCTION AND OPERATING PERMITS 

TABLE OF CONTENTS 

1200-03-09-.01 Construction Permits 1200-03-09-.04 Exemptions 

1200-03-09-.02 Operating Permits 1200-03-09-.05 Appeal of Permit Application Denials and 

1200-03-09-.03 General Provisions Permit Conditions 

1200-03-09-.01 CONSTRUCTION PERMITS. 

(1) Application for Construction Permit 

(a) Except as specifically exempted in Rule 1200-03-09-.04, no person shall begin the 

construction of a new air contaminant source or the modification of an air contaminant 

source which may result in the discharge of air contaminants without first having 

applied for and received from the Technical Secretary a construction permit for the 

construction or modification of such air contaminant source. 

(b) The application for a construction permit shall be made on forms available from the 

Technical Secretary not less than ninety (90) days prior to the estimated starting date 

of construction. Sources identified in paragraph 1200-03-09-.01(4) shall make 

application for a construction permit not less than one hundred twenty (120) days prior 

to the estimated date of construction. 

(c) In addition to the information provided in the construction permit application forms, the 

Technical Secretary may require submission, by the owner or operator of a source to 

be constructed or modified of such information on the nature and amounts of air 

contaminants to be emitted by the source or emitted by associated mobile sources, and 

any other information necessary to insure compliance with the regulations of this 

Division, 1200-03, and the Board approved control strategy. 

(d) Construction of a new air contaminant source or the modification of an air contaminant 

source which may result in the discharge of air contaminants must be in accordance 

with the approved construction permit application, the provisions and stipulations set 

forth in the construction permit, all provisions of the regulations of this Division 1200-

03, any applicable measures of the control strategy, and all provisions of the 

Tennessee Air Quality Act. 

(e) No construction permit shall be issued by the Technical Secretary if the approval to 

construct or modify an air contaminant source would result in a violation of the ambient 

air quality standards specified in Chapter 1200-03-03, would cause a violation of any 

other regulatory requirement under this Division, 1200-03, would result in a violation of 

applicable portions of the control strategy, or would interfere with attainment or 

maintenance of a national ambient air quality standard in a neighboring state. In the 

case where a source or modification was constructed without first obtaining a 

construction permit, a construction permit may be issued to the source or modification 

to establish as conditions of the permit, the necessary emission limits and requirements 

to assure that these regulatory requirements are met. The appropriate enforcement 

action shall be pursued to insure that ambient air quality standards and other regulatory 
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requirements will be met. All emission limits and requirements of the construction 

permit must be met prior to issuance of an operating permit for the source or 

modification. 

(f) In the issuance of construction permits for new air contaminant sources, or 

modifications, source impact analysis shall demonstrate that allowable emission 

increases would not cause or contribute to air pollution in violation of any ambient air 

quality standard in Chapter 1200-03-03, of any national ambient air quality standard, or 

any applicable maximum allowable increase as defined in paragraph 1200-03-09-

.01(4). As required, all estimates of ambient concentrations shall be based on 

applicable air quality models, and data bases acceptable to the Technical Secretary, 

and meeting the requirements in the EPA publication No. 450/2-78-027R, “Guidelines 

on Air Quality Models (revised)” (1986), Supplement A (1987), and Supplement C 

(1995) which are incorporated by reference. The Technical Secretary may approve use 

of a modified or another model on a case-by-case basis after consultation with and 

upon written approval from the EPA Administrator. 

(g) In the issuance of construction permits for new air contaminant sources or 

modifications, the degree of emission limitation required of any source for control of 

any air contaminant must not be affected by so much of any source’s stack height that 

exceeds good engineering practice or by any other dispersion technique except as 

provided for in Chapter 1200-03-24 of these regulations. 

(h) The Department shall on a monthly basis notify the public, by advertisement in a 

newspaper of general circulation in each air quality control region in which the 

proposed source or modification would be constructed, of the applicants seeking to 

obtain a permit to construct or modify an air contaminant source. This notice shall 

specify the general vicinity or location of the proposed source or modification, the type 

of source or modification, and opportunity for public comment. Comments shall be in 

writing and delivered to the Technical Secretary within thirty (30) days after the 

publication of the public notice. 

(i) Reserved. 

(2) Definitions. As used in this chapter all terms not defined herein or in subsequent parts of this 

chapter shall have the meaning given them in Chapter 1200-03-02. 

(a) Reserved. 

(b) “Control Strategy” means a combination of measures, approved by the Board, 

designated to achieve the aggregate reduction of emissions necessary for attainment 

and maintenance of the ambient air quality standards specified in the regulations under 

this Division 1200-03, or of the national ambient air quality standards including, but not 

limited to measures such as: 

1. Emission limitations. 

2. State emission charges or other economic incentives or disincentives. 

3. Closing or relocation of residential, commercial, or industrial facilities. 

4. Changes in schedules or methods of operation of commercial or industrial 

facilities or transportation systems, including, but not limited to, short term 

changes made in accordance with standby plans. 
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5. Periodic inspection and testing of motor vehicle emission control systems, at 

such time it is determined that such programs are feasible and practicable. 

6. Emission control measures applicable to in-use motor vehicles, including, but not 

limited to, measures such as mandatory maintenance, installation of emission 

control devices, and conversion of gaseous fuels. 

7. Any transportation control measures considered feasible and practicable. 

8. Any variation of, or alternative to any measure delineated herein. 

9. Control or prohibition of a fuel or fuel additive used in motor vehicles, if such 

control or prohibition is necessary to achieve a primary or secondary air quality 

standard, or national primary or secondary standard, and is approved by the 

Technical Secretary. 

(c) “National Ambient Air Quality Standard” means any ambient standard for an air 

contaminant promulgated by the Administrator of the Environmental Protection Agency 

and published in the Code of Federal Regulations. 

(d) “Best available control technology (BACT)” means an emission limitation (including a 

visible emission standard) based on the maximum degree of reduction for each 

pollutant subject to regulation under these rules which would be emitted from any 

proposed new or modified air contaminant source which the Technical Secretary, on a 

case-by-case basis, taking into account energy, environmental, and economic impacts 

and other costs, determines is achievable for such source or modification through 

application of production processes or available methods, systems, and techniques, 

including fuel cleaning or treatment or innovative fuel combustion techniques for control 

of such pollutant. In no event shall application of best available control technology 

result in emissions of any pollutant which would exceed the emissions allowed by any 

applicable standard under Chapters 1200-03-11 and 1200-03-16 of these rules. If the 

Technical Secretary determines that technological or economic limitations on the 

application of measurement methodology to a particular class of sources would make 

the imposition of an emission standard infeasible, a design, equipment, work practice, 

or operational standard, or combination thereof, may be prescribed instead to require 

the application of best available control technology. Such standard shall, to the degree 

possible, set forth the emission reduction achievable by implementation of such design, 

equipment, work practice, or operation, and shall provide for compliance by means 

which achieve equivalent results. This definition does not apply to major sources and 

major modifications, as defined in subparagraph (4)(b) of this rule, which are subject to 

the provisions of paragraph (4) of this rule. 

(e) “Lowest achievable emission rate” (LAER) means, for any stationary source the more 

stringent rate of emissions based on the following: 

1. The most stringent emissions limitation which is contained in the applicable 

standards under this Division 1200-03, or in any State Implementation Plan for 

such class or category of stationary source, unless the owner or operator of the 

proposed source demonstrates that such limitations are not achievable; or 

2. The most stringent emissions limitation which is achieved in practice by such 

class or category of stationary source. This limitation, when applied to a 

modification, means the lowest achievable emissions rate for the new or modified 

emissions units within the stationary source. In no event shall the application of 

this term permit a proposed new or modified stationary source to emit any air 
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contaminant in excess of the amount allowable under applicable new source 

standards of performance. 

3. This definition does not apply to major sources and major modifications, as 

defined in part (5)(b)1. of this rule, which are subject to the provisions of 

subparagraph (5)(b) of this rule. The definition at subpart (5)(b)1.(xviii) of this 

rule applies to major sources and major modifications in non-attainment areas 

 

(3) Reserved. 

(4) Prevention of Significant Air Quality Deterioration 

(a) General Provisions 

1. No new major stationary source or major modification, as defined in parts (b) 1. 

and (b) 2. of this paragraph, shall begin actual construction unless the 

requirements of this paragraph, as applicable, have been met. 

2. The requirements of this paragraph shall only apply to a proposed major 

stationary source, or major modification with respect to any pollutant which is 

emitted in significant amounts, or would result in a significant net emissions 

increase of the pollutant respectively. Also, the requirements of this paragraph 

do not apply to proposed pollutant emission sources or modifications in a 

nonattainment area as defined in Chapter 1200-03-02 for any pollutant to be 

emitted by the proposed source or modification for which the area is classified 

nonattainment. 

3. Any owner or operator who constructs or operates a source or modification not in 

accordance with the application submitted pursuant to this paragraph or with the 

terms of any approval to construct, or any owner or operator of a source or 

modification subject to this paragraph who commences construction after 

June 3, 1981 without applying for and receiving approval hereunder, shall be 

subject to appropriate enforcement action. 

4. Approval to construct shall become invalid if construction is not commenced 

within 18 months after issuance of an approved permit, if construction is 

discontinued for a period of 18 months or more, or if construction is not 

completed within 18 months of the completion date specified on the construction 

permit application. The Tennessee Air Pollution Control Board may grant an 

extension to complete construction of the source provided adequate justification 

is presented. An extension shall not exceed 18 months in time. The 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. 

5. Approval to construct shall not relieve any owner or operator of the responsibility 

to comply fully with the applicable provisions under this Division 1200-03 and any 

other requirements under local, State, or Federal law. 

6. If 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 of this paragraph shall apply to the source or 

modification as though construction had not yet commenced on the source or 

modification. 
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7. Permit Rescission 

(i) Any permit for a prevention of significant air quality deterioration (PSD) 

source or modification that was issued prior to June 2, l990, will remain in 

effect and binding until such time as the permittee files a completed 

application to obtain rescission. This application for rescission may be filed 

at any time by the permittee. 

(ii) The Technical Secretary shall approve any application for rescission if the 

application shows that this paragraph 1200-03-09-.01(4), would not apply 

to the source or modification. 

(iii) If requested by the permittee, the Technical Secretary may rescind only 

certain elements required in a PSD permit issued on or before June 3, 

1981. 

(iv) Those sources subject to PSD review before August 7, 1977 shall not be 

allowed to apply for a PSD permit rescission if construction had 

“commenced” by August 7, 1977. 

(v) If a source or modification whose permit is rescinded were later found to be 

causing or contributing to an increment violation, additional control may be 

required if determined necessary by the Technical Secretary. 

(vi) If the Technical Secretary 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. 

8. Reserved. 

9. Reserved. 

10. Reserved. 

11. The following specific provisions apply to projects at existing emissions units at a 

major stationary source (other than projects at a source with a plantwide 

applicability limitation [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 items (b)38.(i)(I) through (III) of this paragraph for calculating 

projected actual emissions. 

(i) 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 
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emissions, the amount of emissions excluded under item (b)38.(i)(III) 

of this paragraph and an explanation for why such amount was 

excluded, and any netting calculations, if applicable. 

(ii) If the emissions unit is an existing electric utility steam generating unit, 

before beginning actual construction, the owner or operator shall provide a 

copy of the information set out in sub-part (a)11.(i) of this paragraph to the 

Technical Secretary. Nothing in this sub-part (a)11.(ii) shall be construed 

to require the owner or operator of such a unit to obtain any determination 

from the Technical Secretary before beginning actual construction. 

(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 item (a)11.(i)(II) of this paragraph; 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. 

(iv) If the unit is an existing electric utility steam generating unit, the owner or 

operator shall submit a report to the Technical Secretary within 60 days 

after the end of each year during which records must be generated under 

sub-part (a)11.(ii) of this paragraph 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 Technical Secretary 

if the annual emissions, in tons per year, from the project identified in subpart (a)11.(i) of this paragraph, exceed the baseline actual emissions (as 

documented and maintained pursuant to item (a)11.(i)(III) of this 

paragraph) by a significant amount (as defined in part (b)24. of this 

paragraph) for that regulated NSR pollutant, and if such emissions differ 

from the preconstruction projection as documented and maintained 

pursuant to item (a)11.(i)(III) of this paragraph. Such report shall be 

submitted to the Technical Secretary within 60 days after the end of such 

year. The report shall contain the following: 

(I) The name, address and telephone number of the major stationary 

source; 

(II) The annual emissions as calculated pursuant to sub-part (a)11.(iii) of 

this paragraph; and 

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

the report (e.g., an explanation as to why the emissions differ from 

the preconstruction projection). 

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

documented and maintained pursuant to part (a)11. of this paragraph available 

for review upon request for inspection by the Technical Secretary or the general 

public. 

(b) Definitions. As used in this paragraph, all terms not defined herein shall have the 

meaning given them in Chapter 1200-03-02. 
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1. “Major stationary source” means: 

(i) Any of the following stationary sources, which emit or have the potential to 

emit, 100 tons per year or more of a regulated NSR pollutant-. 

(I) Fossil-fuel fired steam electric plants of more than 250 million 

BTU per hour heat input. 

(II) Municipal incinerators (or combinations thereof) capable of 

charging more than 250 tons of refuse per day. 

(III) Fossil-fuel boilers (or combinations thereof) totaling more than 

250 million BTU per hour heat input. 

(IV) Petroleum storage and transfer facilities with a total storage 

capacity exceeding 300,000 barrels. 

(V) Coal cleaning plants (with thermal dryers) 

(VI) Kraft pulp mills 

(VII) Portland cement plants 

(VIII) Primary zinc smelters 

(IX) Iron and steel mill plants 

(X) Primary aluminum ore reduction plants 

(XI) Primary copper smelters 

(XII) Hydrofluoric acid plants 

(XIII) Sulfuric acid plants 

(XIV) Nitric acid plants 

(XV) Petroleum refineries 

(XVI) Lime plants 

(XVII) Phosphate rock processing plants 

(XVIII) Coke oven batteries 

(XIX) Sulfur recovery plants 

(XX) Carbon black plants (furnace process) 

(XXI) Primary lead smelters 

(XXII) Fuel conversion plants 

(XXIII) Sintering plants 
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(XXIV) Secondary metal production plants 

(XXV) Chemical process plants 

(XXVI) Taconite ore processing plants 

(XXVII) Glass fiber processing plants 

(XXVIII) Charcoal production plants 

(ii) Notwithstanding the stationary source size specified in subpart (b)1.(i) of 

this paragraph, any stationary source which emits or has the potential to 

emit, 250 tons per year or more of a regulated NSR pollutant-. 

(iii) Any physical change that would occur at a stationary source not otherwise 

qualifying under part (b)1. as a major stationary source if the change would 

constitute a major stationary source by itself. 

2. “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 part (b)34. of this paragraph) of a regulated NSR 

pollutant(as defined in part (b)47. of this paragraph)-; and a significant net 

emissions increase of that pollutant from the major stationary source. 

(i) A physical change or change in the method of operation shall not include: 

(I) Routine maintenance, repair, or replacement; 

(II) Use of an alternative fuel or raw material by reason of any order 

under section 2(a) and (b) of the Energy Supply and Environmental 

Coordination Act of 1974 (or any superseding legislation) or by 

reason of a natural gas curtailment plan pursuant to an applicable 

federal statute; 

(III) Use of an alternative fuel by reason of an order or rule under 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 as determined 

by the Tennessee Division of Solid Waste Management. 

(V) Use of an alternative fuel or raw material by a stationary source 

which the source was capable of accommodating before January 6, 

1975, unless such change would be prohibited under a legally 

enforceable permit condition which was established after January 6, 

1975, or under regulations of this Division 1200-03, or under 

regulations approved by the Environmental Protection Agency 

pursuant to 40 CFR 51.160-51.166; 

(VI) An increase in the hours of operation or in the production rate, 

unless such change would be prohibited under a legally enforceable 

permit condition which was established after January 6, 1975, or 

under regulations of this Division 1200-03. 

(VII) Any change in ownership at a stationary source. 
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(VIII) Reserved. 

(IX) The installation, operation, cessation, or removal of a temporary 

clean coal technology demonstration project, provided that the 

project complies with: 

I. The State Implementation Plan for the State in which the project 

is located, and 

II. Other requirements necessary to attain and maintain the national 

ambient air quality standards during the project and after it is 

terminated. 

(X) The installation or operation of a permanent clean coal technology 

demonstration project that constitutes re-powering, 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. 

(ii) This definition shall not apply with respect to a particular regulated NSR 

pollutant when the major stationary source is complying with the 

requirements under subparagraph (s) of this paragraph for a PAL for that 

pollutant. Instead, the definition at sub-part (s)2.(viii) of this paragraph shall 

apply. 

3. Major sources and modifications for ozone 

(i) A source that is major for either volatile organic compounds or nitrogen 

oxides shall be considered major for ozone. 

(ii) Any significant emissions increase from any emissions units or net 

emissions increase at a major stationary source that is significant for either 

volatile organic compounds or nitrogen oxides shall be considered 

significant for ozone. 

4. Net emission increases 

(i) “Net emissions increase” means, with respect to any regulated NSR 

pollutant emitted by a major stationary source, the amount by which the 

sum of the following exceeds zero: 

(I) The increase in emissions from a particular physical change or 

change in the method of operation at a stationary source, as 

calculated pursuant to part (c)4. of this paragraph; 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 item (b)4.(i)(II) shall 

be determined as provided in part (b)45., except that items 

(b)45.(i)(III) and (b)45.(ii)(IV) of this paragraph 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: 
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(I) The date five years before a completed application for the particular 

change is submitted; and 

(II) The date that the increase from the particular change occurs. 

(iii) An increase or decrease in actual emissions is creditable only if: 

(I) It occurs within the five years prior to the date a completed 

application for the particular change is submitted; and 

(II) The Technical Secretary has not relied on it in issuing a permit for 

the source under regulations approved pursuant to this rule, which 

permit is in effect when the increase in actual emissions from the 

particular change occurs; and 

(III) Reserved. 

(iv) An increase or decrease in actual emissions of sulfur dioxide, particulate 

matter, or nitrogen oxides 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: 

(I) The old level of actual emissions 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) It has approximately the same qualitative significance for public 

health and welfare as that attributed to the increase from the 

particular change; and 

(IV) Reserved. 

(vii) An increase that results from a physical change at a source occurs when 

the emissions unit on which construction occurred becomes operational 

and begins to emit a particular pollutant. Any replacement unit that 

requires shakedown becomes operational only after a reasonable 

shakedown period as determined by the Technical Secretary, not to 

exceed 180 days. 

(viii) Sub-part (b)22.(i) of this paragraph shall not apply for determining 

creditable increases and decreases. 

5. “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 
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if the limitation or the effect it would have on emissions is legally enforceable. 

Secondary emissions do not count in determining the potential to emit of a 

stationary source. 

6. “Stationary source” means any building, structure, facility, or installation which 

emits or may emit a regulated NSR pollutant -except the activities of any vessel. 

7. “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., described by the first two 

digits in the code which is specified 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)). 

8. “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 part (b)52. of this paragraph. For purposes 

of this paragraph, there are two types of emissions units as described in subparts (b)8.(i) and (ii) of this paragraph. 

(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. 

(ii) An existing emissions unit is any emissions unit that does not meet the 

requirements in sub-part (b)8.(i) of this paragraph. A replacement unit, as 

defined in part (b)33. of this paragraph, is an existing emissions unit.-. 

9. “Construction” means any physical change or change in the method of operation 

(including fabrication, erection, installation, demolition, or modification of an 

emissions unit) which would result in a change in actual emissions. 

10. “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 the time frame as 

allowed in part 1200-03-09-.01(4)(a)4, or 

(ii) Entered into binding agreements or contractual obligations, which cannot 

be canceled or modified without substantial loss to the owner or operator, 

to undertake a program of actual construction of the source to be 

completed within the time frame as allowed in part 1200-03-09-.01(4)(a)4. 

11. “Necessary preconstruction approvals or permits” means all permits or approvals 

required under air quality control laws and regulations. 

12. “Begin actual construction” means, in general, initiation of physical on-site 

construction activities on an emissions unit which are of a permanent nature. 

Such activities include, but are not limited to, installation of building supports and 

foundations, laying of underground pipework, and construction of permanent 

storage structures. With respect to a change in method of operation this term 
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refers to those on-site activities, other than preparatory activities, which mark the 

initiation of the change. 

13. “Pollutant” means those air contaminants which fall under the categories of 

criteria and non-criteria pollutants. Criteria pollutants are those for which an 

ambient air quality standard has been established. The non-criteria pollutants 

are air contaminants that are not criteria pollutants. 

14. “Baseline area” means any intrastate area (and every part thereof) not 

designated as a nonattainment area 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 ug/m3 (annual 

average) of the pollutant for which the minor source baseline date is established. 

(i) Area redesignations under this Division 1200-03 cannot intersect or be 

smaller than the area of impact of any major stationary source or major 

modification which establishes a minor source baseline date or is subject 

to the regulations in this paragraph. 

15. “Baseline date”: 

(i) “Major source baseline date” means in the case of particulate matter and 

sulfur dioxide, January 6, 1975, and 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 stationary source or a major modification submits a 

complete application to the Technical Secretary or to the EPA 

administrator. The trigger date is: 

(I) In the case of particulate matter and sulfur dioxide, August 7, 1977, 

and 

(II) 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: 

(I) The area in which the proposed source or modification would 

construct is not designated as a nonattainment area for the pollutant 

on the date of its complete application. 

(II) 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. 

16. “Baseline concentration” means that ambient concentration level which 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: 

(i) The actual emissions representative of sources in existence on the 

applicable minor source baseline date, except as provided in subpart 

(b)16.(iii); and 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 13

(ii) 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. 

(iii) The following will not be included in the baseline concentration and will 

affect the applicable maximum allowable increment increase(s): 

(I) Actual emissions from any major stationary source on which 

construction commenced after the major source baseline date; and 

(II) Actual emissions increases and decreases at any stationary source 

occurring after the minor source baseline date. 

17. “Allowable emissions” means the emissions rate of a stationary source calculated 

using the maximum rated capacity of the source (unless the source is subject to 

legally enforceable limits which restrict the operating rate, or hours of operation, 

or both) and the most stringent of the following: 

(i) The applicable standards under this Division 1200-03 or in the State 

Implementation Plan, including those with a future compliance date; or 

(ii) The emissions rate specified as a legally enforceable permit condition 

established pursuant to this Rule 1200-03-09-.01, including those with a 

future compliance date. 

18. “Legally enforceable” means all limitations and conditions which are enforceable 

by the Technical Secretary and the EPA Administrator, including those under this 

Division 1200-033 and the State Implementation Plan, and any permit 

requirements established pursuant to this Rule 1200-03-09-.01. 

19. “Secondary emissions” means emissions which 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 purpose of this rule, secondary emissions must be specific, well defined, 

quantifiable, and impact the same general area as the stationary source or 

modification which causes the secondary emissions. Secondary emissions 

include emissions from any offsite support facility which would not otherwise 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, or 

from a vessel. 

20. “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 non-air quality environmental impacts. 

21. “Fugitive emissions” means those emissions which could not reasonably pass 

through a stack, chimney, vent, roof monitor, or other functionally equivalent 

opening. 

22. “Actual emissions” means the actual rate of emissions of a regulated NSR 

pollutant from an emissions unit, as determined in accordance with subparts (i) 

through (iii) below, except that this definition shall not apply for calculating 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 14

whether a significant emissions increase has occurred, or for establishing a PAL 

under subparagraph (s) of this paragraph. Instead, parts (b)38. and (b)45. of this 

paragraph shall apply for those purposes. 

(i) 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 Technical 

Secretary may 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. 

(ii) The Technical Secretary may presume that source--specific allowable 

emissions for the unit are equivalent to the actual emissions of the unit. 

(iii) For any emissions unit that has not begun normal operations on the 

particular date, actual emissions shall equal the potential to emit of the unit 

on that date. 

23. “Complete” means, in reference to an application for a permit, that the application 

contains all the information necessary for processing the application. 

Designating an application complete for purposes of permit processing does not 

preclude the Technical Secretary from requesting or accepting any additional 

information. 

24. “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: 

(i) Pollutant and Emissions Rate 

(I) Carbon monoxide: 100 tons per year (tpy) 

(II) Nitrogen oxides: 40 tpy 

(III) Sulfur dioxide: 40 tpy 

(IV) Particulate matter: 25 tpy of particulate matter emissions; 15 tpy of 

PM10 emissions. 

(V) Ozone: 40 tpy of either volatile organic compounds or nitrogen 

oxides. 

(VI) Lead (elemental): 0.6 tpy 

(VII) Fluorides: 3 tpy 

(VIII) Sulfuric acid mist: 7 tpy 

(IX) Total reduced sulfur (including H2S): 10 tpy 

(X) Reduced sulfur compounds (including H2S): 10 tpy 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

November, 2011 (Revised) 15

(XI) Municipal waste combustor organics (measured as total tetrathrough octa- chlorinated dibenzo-p-dioxins and dibenzofurans): 3.2 

x 10-6 megagrams per year (3.5 x 10-6 tpy). 

(XII) Municipal waste combustor metals (measured as particulate matter): 

15 tpy 

(XIII) Municipal waste combustor acid gases (measured as sulfur dioxide 

and hydrogen chloride): 36 megagrams per year (40 tpy) 

(XIV) Ozone depleting substances (listed under Section 602 of the federal 

Clean Air Act): 40 tpy 

(XV) Hydrogen sulfide: 10 tpy 

(XVI) Municipal solid waste landfill emissions (measured as non-methane 

organic compounds): 50 tpy 

(XVII) PM2.5: 10 tpy of direct PM2.5 emissions; 40 tpy of sulfur dioxide 

emissions; 40 tpy of nitrogen oxide emissions unless demonstrated 

not to be a PM2.5 precursor under item 47(i)(III) of this subparagraph. 

(ii) “Significant” means, in reference to a net emissions increase or the 

potential of a source to emit a regulated NSR pollutant subject to 

regulations of EPA under the Clean Air Act and that subpart (b)24.(i) does 

not list, any emissions rate. 

(iii) Notwithstanding subpart (b)24.(i), “significant” means any emissions rate or 

any net emissions increase associated with a major stationary source or 

major modification, which would construct within 10 kilometers of a Class I 

area and have an impact on such area equal to or greater than 1 ug/m3

(24-hour average). 

25. “Federal Land Manager” means, with respect to any lands in the United States, 

the Secretary of the department with authority over such lands. 

26. “High terrain” means any area having an elevation 900 feet or more above the 

base of the stack of a source. 

27. “Low terrain” means any area other than high terrain. 

28. “Adverse impact on visibility” means visibility impairment which interferes with the 

management, protection, preservation or enjoyment of the visitors 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 impairments, and how these factors correlate with 

the times of visitor use of the Federal Class I area, and with the frequency and 

timing of natural conditions that reduce visibility. 

29. “Volatile organic compounds (VOC)” means any compound of carbon, excluding 

carbon monoxide, carbon dioxide, carbonic acid, metallic carbides or carbonates, 

and ammonium carbonate, which participates in atmospheric photochemical 

reactions. 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

November, 2011 (Revised) 16

(i) This includes any such organic compound other than the following, which 

have been determined to have negligible photochemical reactivity: 

methane; ethane; methylene chloride (dichloromethane); 1,1,1-

trichloroethane (methyl chloroform); 1,1,2-trichloro-1,2,2-trifluoroethane 

(CFC-113); trichlorofluoromethane (CFC-11); dichlorodifluoromethane 

(CFC-12); chlorodifluoromethane (HCFC-22); trifluoromethane (HFC-23); 

1,2-dichloro 1,1,2,2-tetrafluoroethane (CFC-114); chloropentafluoroethane 

(CFC-115); 1,1,1-trifluoro 2,2-dichloroethane (HCFC-123); 1,1,1,2-

tetrafluoroethane (HFC-134a); 1,1-dichloro 1-fluoroethane (HCFC-141b); 

1-chloro 1,1-difluoroethane (HCFC-142b); 2-chloro-1,1,1,2-

tetrafluoroethane (HCFC-124); pentafluoroethane (HFC-125); 1,1,2,2-

tetrafluoroethane (HFC-134); 1,1,1-trifluoroethane (HFC-143a); 1,1-

difluoroethane (HFC-152a); parachlorobenzotrifluoride (PCBTF); cyclic, 

branched, or linear completely methylated siloxanes; acetone; 

perchloroethylene (tetrachloroethylene); 3,3-dichloro-1,1,1,2,2-

pentafluoropropane (HCFC-225ca); 1,3-dichloro-1,1,2,2,3-

pentafluoropropane (HCFC-225cb); 1,1,1,2,3,4,4,5,5,5-decafluoropentane 

(HFC-43-10mee); difluoromethane (HFC-32); ethylfluoride (HFC-161); 

1,1,1,3,3,3-hexafluoropropane (HFC-236fa); 1,1,2,2,3-pentafluoropropane 

(HFC-245ca); 1,1,2,3,3-pentafluoropropane (HFC-245ea); 1,1,1,2,3-

pentafluoropropane (HFC-245eb); 1,1,1,3,3-pentafluoropropane (HFC245fa); 1,1,1,2,3,3-hexafluoropropane (HFC-236ea); 1,1,1,3,3-

pentafluorobutane (HFC-365mfc); chlorofluoromethane (HCFC-31); 1-

chloro-1-fluoroethane (HCFC-151a); 1,2-dichloro-1,1,2-trifluoroethane 

(HCFC-123a); 1,1,1,2,2,3,3,4,4-nonafluoro-4-methoxy-butane (C4F9OCH3); 

2-(difluoromethoxymethyl)-1,1,1,2,3,3,3-heptafluoropropane 

((CF3)2CFCF2OCH3); 1-ethoxy-1,1,2,2,3,3,4,4,4-nonafluorobutane 

(C4F9OC2H5); 2-(ethoxydifluoromethyl)-1,1,1,2,3,3,3-heptafluoropropane 

((CF3)2CFCF2OC2H5); methyl acetate; 1,1,1,2,2,3,3-heptafluoro-3-methoxypropane (n-C3F7OCH3, HFE–7000); 3-ethoxy-1,1,1,2,3,4,4,5,5,6,6,6-

dodecafluoro-2-(trifluoromethyl) hexane (HFE–7500); 1,1,1,2,3,3,3-

heptafluoropropane (HFC 227ea); methyl formate (HCOOCH3); propylene 

carbonate; dimethyl carbonate; and perfluorocarbon compounds which fall 

into these classes: 

(l) Cyclic, branched, or linear, completely fluorinated alkanes; 

(ll) Cyclic, branched, or linear, completely fluorinated ethers with no 

unsaturations; 

(lll) Cyclic, branched, or linear, completely fluorinated tertiary amines 

with no unsaturations; and 

(lV) Sulfur containing perfluorocarbons with no unsaturations and with 

sulfur bonds only to carbon and fluorine. 

(ii) For purposes of determining compliance with emissions limits, VOC will be 

measured by the test methods in the approved State implementation plan 

(SIP) or 40 CFR part 60, Appendix A, as applicable. Where such a method 

also measures compounds with negligible photochemical reactivity, these 

negligibility-reactive compounds may be excluded as VOC if the amount of 

such compounds is accurately quantified, and such exclusion is approved 

by the Technical Secretary. 

(iii) As a precondition to excluding these compounds as VOC or at any time 

thereafter, the Technical Secretary may require an owner or operator to 

provide monitoring or testing methods and results demonstrating, to the 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

November, 2011 (Revised) 17

satisfaction of the Technical Secretary, the amount of negligibly-reactive 

compounds in the source’s emissions. 

(iv) For purposes of enforcement for a specific source, the test methods 

specified in these regulations, in the approved SIP, or in a permit issued 

pursuant to these regulations shall be used. 

(v) The following compound(s) are VOC for purposes of all recordkeeping, 

emissions reporting, photochemical dispersion modeling and inventory 

requirements which apply to VOC and shall be uniquely identified in 

emission reports, but are not VOC for purposes of VOC emissions 

limitations or VOC content requirements: t-butyl acetate. 

30. “Dispersion technique” shall have the meaning as provided in Chapter 1200-03-

24. 

31. “Good engineering practice” (GEP) shall have the meaning as provided in 

Chapter 1200-03-24. 

32. “Welfare” all language referring to effects on welfare includes, but is not limited 

to, effects on soils, water, crops, vegetation, manmade materials, animals, 

wildlife, weather, visibility, and climate, damage to and deterioration of property, 

and hazards to transportation, as well as effects on economic values and on 

personal comfort and well-being, whether caused by transformation, conversion, 

or combination with other air pollutants. 

33. “Replacement unit” means an emissions unit for which all the criteria listed in 

sub-parts (b)33.(i) through (iv) of this paragraph are met. No creditable 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 part 54. of 

this subparagraph, 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 change the basic design parameter(s) 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. 

34. “Significant emissions increase” means, for a regulated NSR pollutant, an 

increase in emissions that is significant (as defined in part (b)24. of this 

paragraph) for that pollutant. 

35. Reserved. 

36. “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) 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 18

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. 

37. Reserved. 

38. “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. 

(i) In determining the projected actual emissions under part (b)38. of this 

paragraph (before beginning actual construction), the owner or operator of 

the major stationary source: 

(I) Shall consider all relevant information, including but not limited to, 

historical operational data, the company’s own representations, the 

company’s expected business activity and the company’s highest 

projections of business activity, the company’s filings with the State 

or Federal regulatory authorities, and compliance plans under the 

approved plan; and 

(II) Shall include fugitive emissions to the extent quantifiable and 

emissions associated with startups, shutdowns, and malfunctions; 

and 

(III) Shall exclude, in calculating any increase in emissions that results 

from the particular project, that portion of the unit’s emissions 

following the project that an existing unit could have accommodated 

during the consecutive 24-month period used to establish the 

baseline actual emissions under part (b)45. of this paragraph and 

that are also unrelated to the particular project, including any 

increased utilization due to product demand growth; or, 

(IV) In lieu of using the method set out in items (b)(38.(i)(I) through (III) of 

this paragraph, may elect to use the emissions unit’s potential to 

emit, in tons per year, as defined under part (b)5. of this paragraph. 

39. Reserved. 

40. “Prevention of Significant Deterioration Program” (PSD) program means a major 

source preconstruction permit program that has been approved by the 

Administrator and incorporated into the State Implementation Plan (SIP) to 

implement the requirements of 40 CFR 51.166. Any permit issued under such a 

program is a major NSR permit. 

41. “Continuous emissions monitoring system (CEMS)” means all of the equipment 

that may be required to meet the data acquisition and availability requirements of 

this section, to sample, condition (if applicable), analyze, and provide a record of 

emissions on a continuous basis. 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 19

42. “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, O 2

 or CO 2 concentrations), and 

calculate and record the mass emissions rate (for example, lb/hr) on a 

continuous basis. 

43. “Continuous parameter monitoring system (CPMS)” means all of the equipment 

necessary to meet the data acquisition and availability requirements of this 

paragraph, 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, O 2

 or CO 2 concentrations), and to 

record average operational parameter value(s) on a continuous basis. 

44. “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). 

45. “Baseline actual emissions” means the rate of emissions, in tons per year, of a 

regulated NSR pollutant, as determined in accordance with sub-parts (b)45.(i) 

through (iv) of this paragraph. 

(i) For any existing electric utility steam generating unit, baseline actual 

emissions means the average rate, in tons per year, at which the unit 

actually emitted the pollutant during any consecutive 24-month period 

selected by the owner or operator within the 5-year period immediately 

preceding when the owner or operator begins actual construction of the 

project. The Technical Secretary shall allow the use of a different time 

period upon a determination that it is more representative of normal source 

operation. 

(I) The average rate shall include fugitive emissions to the extent 

quantifiable, and emissions associated with startups, shutdowns, 

and malfunctions. 

(II) The average rate shall be adjusted downward to exclude any noncompliant emissions that occurred while the source was operating 

above an emission limitation that was legally enforceable during the 

consecutive 24-month period. 

(III) For a regulated NSR pollutant, when a project involves multiple 

emissions units, one consecutive 24-month period must be used to 

determine the baseline actual emissions for the emissions units 

being changed. However, the Technical Secretary is authorized to 

allow the use of multiple, pollutant specific consecutive 24-month 

baselines in determining the magnitude of a significant net emissions 

increase and the applicability of major new source review 

requirements if all of the following conditions are met: 

I. Construction of a new source or modification would become 

subject to major new source review if a single 2-year 

baseline is used for all pollutants. 

II. One or more pollutants were emitted during such 2-year 

period in amounts that were less than otherwise permitted 

for reasons other than operations at a lower production or 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 20

utilization rate. Qualifying examples include, but are not 

limited to, the voluntary use of: 

A. a cleaner fuel than otherwise permitted in a fuel 

burning operation (e.g., natural gas instead of coal in 

a multi-fuel boiler), 

B. a coating with a lower VOC content than otherwise 

permitted in a coating operation, 

C. a voluntary improvement in the control efficiency of 

an air pollution control device or the voluntary 

addition of a control device where one did not exist 

before, and 

D. alternate production methods, raw materials, or 

products that result in lower emissions of one or 

more pollutants. 

III. Use of alternate 2-year baselines for the pollutants described 

in subitem II above would result in the construction of the 

new source or modification not being subject to major new 

source review. 

IV. The use of the multiple baselines is not prohibited by any 

applicable provision of the USEPA’s new source review 

regulations. 

The burden for demonstrating that these conditions are met is upon 

the permit applicant. The demonstration and the Technical 

Secretary’s approval will be made a part of the permit record. 

(IV) 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 item (b)45.(i)(II) of this paragraph. 

(ii) For an existing emissions unit (other than an electric utility steam 

generating unit), baseline actual emissions means the average rate, in tons 

per year, at which the emissions unit actually emitted the pollutant during 

any consecutive 24-month period selected by the owner or operator within 

the 10-year period immediately preceding either the date the owner or 

operator begins actual construction of the project, or the date a complete 

permit application is received by the Technical Secretary for a permit 

required either under this section or under a plan approved by the 

Administrator, whichever is earlier, except that the 10-year period shall not 

include any period earlier than November 15, 1990. 

(I) The average rate shall include fugitive emissions to the extent 

quantifiable, and emissions associated with startups, shutdowns, 

and malfunctions. 

(II) The average rate shall be adjusted downward to exclude any noncompliant emissions that occurred while the source was operating 

above an emission limitation that was legally enforceable during the 

consecutive 24-month period. 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 21

(III) The average rate shall be adjusted downward to exclude any 

emissions that would have exceeded an emission limitation with 

which the major stationary source must currently comply, had such 

major stationary source been required to comply with such 

limitations during the consecutive 24-month period. However, if an 

emission limitation is part of a maximum achievable control 

technology standard that the Administrator proposed or promulgated 

under 40 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. 

(IV) For a regulated NSR pollutant, when a project involves multiple 

emissions units, one consecutive 24-month period must be used to 

determine the baseline actual emissions for the emissions units 

being changed. However, the Technical Secretary is authorized to 

allow the use of multiple, pollutant specific consecutive 24-month 

baselines in determining the magnitude of a significant net emissions 

increase and the applicability of major new source review 

requirements if all of the following conditions are met: 

I. Construction of a new source or modification would become 

subject to major new source review if a single 2-year 

baseline is used for all pollutants. 

II. One or more pollutants were emitted during such 2-year 

period in amounts that were less than otherwise permitted 

for reasons other than operations at a lower production or 

utilization rate. Qualifying examples include, but are not 

limited to, the voluntary use of: 

A. a cleaner fuel than otherwise permitted in a fuel 

burning operation (e.g., natural gas instead of coal in 

a multi-fuel boiler), 

B. a coating with a lower VOC content than otherwise 

permitted in a coating operation, 

C. a voluntary improvement in the control efficiency of 

an air pollution control device or the voluntary 

addition of a control device where one did not exist 

before, and 

D. alternate production methods, raw materials, or 

products that result in lower emissions of one or 

more pollutants. 

III. Use of alternate 2-year baselines for the pollutants described 

in Subitem II above would result in the construction of the 

new source or modification not being subject to major new 

source review. 

IV. The use of the multiple baselines is not prohibited by any 

applicable provision of the USEPA’s new source review 

regulations. 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 22

The burden for demonstrating that these conditions are met is upon 

the permit applicant. The demonstration and the Technical 

Secretary’s approval will be made a part of the permit record. 

(V) The average rate shall not be based on any consecutive 24-month 

period for which there is inadequate information for determining 

annual emissions, in tons per year, and for adjusting this amount if 

required by items (b)45.(ii)(II) and (III) of this paragraph. 

(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 sub-part (b)45.(i) of this paragraph, for 

other existing emissions units in accordance with the procedures contained 

in sub-part (b)45.(ii) of this paragraph, and for a new emissions unit in 

accordance with the procedures contained in sub-part (b)45.(iii) of this 

paragraph. 

46. “Subject to regulation” means, for any air pollutant, that the pollutant is subject to 

either a provision in the Clean Air Act, or a nationally-applicable regulation 

codified by the Administrator in subchapter C of Chapter I of Title 40 of the Code 

of Federal Regulations, that requires actual control of the quantity of emissions of 

that pollutant, and that such a control requirement has taken effect and is 

operative to control, limit or restrict the quantity of emissions of that pollutant 

released from the regulated activity. Except that: 

(i) Greenhouse gases (GHGs), the air pollutant defined in part 86.1818–12(a) 

of Chapter I of Title 40 of the Code of Federal Regulations as the 

aggregate group of six greenhouse gases: Carbon dioxide, nitrous oxide, 

methane, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride, 

shall not be subject to regulation except as provided in subparts (iv) 

through (v) of this part. 

(I) In the event that the U.S. Court of Appeals for the D.C. Circuit or the 

U.S. Supreme Court issues an order which would render GHG 

emissions not subject to regulation under the Prevention of 

Significant Deterioration, New Source Review provisions and/or the 

Title V operating permit program of the Federal Act, then GHGs shall 

not be subject to regulation, nor shall GHG emissions be required to 

be included in any construction or operating permit under this 

regulation 1200-03, as of the effective date of the Federal Register 

notice of vacatur. 

(II) In the event that there is a change to Federal law that supersedes 

regulation of GHGs under the Prevention of Significant Deterioration, 

New Source Review provisions and/or the Title V operating permit 

program of the Federal Act, then GHGs shall not be subject to 

regulation, nor shall GHG emissions be required to be included in 

any construction or operating permit under this regulation 1200-03, 

as of the effective date of the change in Federal law. 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 23

(ii) For purposes of subparts (iii) through (v) of this part, the term tpy CO2 

equivalent emissions (CO2e) shall represent an amount of GHGs emitted, 

and shall be computed as follows: 

(I) Multiplying the mass amount of emissions (tpy), for each of the six 

greenhouse gases in the pollutant GHGs, by the gas's associated 

global warming potential published at Table A–1 to subpart A of part 

98 of Chapter I of Title 40 of the Code of Federal Regulations - 

Global Warming Potentials. 

(II) Sum the resultant value from item (ii)(I) of this part for each gas to 

compute a tpy CO2e. 

(iii) The term emissions increase as used in subparts (iv) through (v) of this 

part shall mean that both a significant emissions increase (as calculated 

using the procedures in part (c)4 of this paragraph) and a significant net 

emissions increase (as defined in parts (b)4 and (b)24 of this paragraph) 

occur. For the pollutant GHGs, an emissions increase shall be based on 

tpy CO2e, and shall be calculated assuming the pollutant GHGs is a 

regulated NSR pollutant, and “significant” is defined as 75,000 tpy CO2e 

instead of applying the value in subpart (b)24(ii) of this paragraph. 

(iv) Beginning January 2, 2011, the pollutant GHGs is subject to regulation if: 

(I) The stationary source is a new major stationary source for a 

regulated NSR pollutant that is not GHGs, and also will emit or will 

have the potential to emit 75,000 tpy CO2e or more; or 

(II) The stationary source is an existing major stationary source for a 

regulated NSR pollutant that is not GHGs, and also will have an 

emissions increase of a regulated NSR pollutant, and an emissions 

increase of 75,000 tpy CO2e or more; and, 

(v) Beginning July 1, 2011, in addition to the provisions in subpart (iv) of this 

part, the pollutant GHGs shall also be subject to regulation: 

(I) At a new stationary source that will emit or have the potential to emit 

100,000 tpy CO2e; or 

(II) At an existing stationary source that emits or has the potential to emit 

100,000 tpy CO2e, when such stationary source undertakes a 

physical change or change in the method of operation that will result 

in an emissions increase of 75,000 tpy CO2e or more. 

47. “Regulated NSR pollutant,” for purposes of this paragraph, means the following: 

(i) Any pollutant for which a national ambient air quality standard has been 

promulgated and any pollutant identified under this part as a constituent or 

precursor to such pollutant. Precursors identified by the Administrator for 

purposes of NSR are the following: 

(I) Volatile organic compounds and nitrogen oxides are precursors to 

ozone in all attainment and unclassifiable areas. 

(II) Sulfur dioxide is a precursor to PM2.5 in all attainment and 

unclassifiable areas. 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 24

(III) Nitrogen oxides are presumed to be precursors to PM2.5 in all 

attainment and unclassifiable areas, unless the State has 

demonstrated to the satisfaction of the EPA Administrator or EPA 

demonstrates that emissions of nitrogen oxides from sources in a 

specific area are not a significant contributor to that area’s ambient 

PM2.5 concentrations. 

(IV) Volatile organic compounds are presumed not to be precursors to 

PM2.5 in any attainment or unclassifiable area, unless the State has 

demonstrated to the satisfaction of the EPA Administrator or EPA 

demonstrates that emissions of volatile organic compounds from 

sources in a specific area are a significant contributor to that area’s 

ambient PM2.5 concentrations. 

(ii) Any pollutant that is subject to any standard promulgated under section 

111 of the Federal Clean Air Act; 

(iii) Any Class I or II substance subject to a standard promulgated under or 

established by title VI of the Federal Clean Air Act; or 

(iv) Any pollutant that otherwise is subject to regulation under the Federal 

Clean Air Act as defined in part (b)46 of this paragraph. 

(v) Notwithstanding subparts (b)47(i) through (iv) of this paragraph, the term 

“regulated NSR pollutant” shall not include any or all hazardous air 

pollutants either listed in section 112 of the Federal Clean Air Act or added 

to the list pursuant to section 112(b)(2) of the Federal Clean Air Act, and 

which have not been delisted pursuant to section 112(b)(3) of the Federal 

Clean Air Act, unless the listed hazardous air pollutant is also regulated as 

a constituent or precursor of a general pollutant listed under section 108 of 

the Federal Clean Air Act. 

(vi) Particulate matter (PM) emissions, PM2.5 emissions, and PM10 emissions 

shall include gaseous emissions from a source or activity which condense 

to form particulate matter at ambient temperatures. On or after January 1, 

2011, such condensable particulate matter shall be accounted for in 

applicability determinations and in establishing emissions limitations for 

PM, PM2.5, and PM10 in PSD permits. Compliance with emissions 

limitations for PM, PM2.5, and PM10 issued prior to this date shall not be 

based on condensable particulate matter unless required by the terms and 

conditions of the permit or the applicable implementation plan. Applicability 

determinations made prior to this date without accounting for condensable 

particulate matter shall not be considered in violation of this paragraph 

unless the applicable implementation plan required condensable 

particulate matter to be included. 

48. “Reviewing authority” means the State air pollution control agency, local agency, 

other State agency, Indian tribe, or other agency authorized by the Administrator 

to carry out a permit program under 40 CFR 51.165, or the Administrator in the 

case of EPA-implemented permit programs under 40 CFR 52.21. 

49. “Project” means a physical change in, or change in method of operation of, an 

existing major stationary source. 

50. “Lowest achievable emission rate (LAER)” is as defined in sub-part (5)(b)1.(xviii) 

of this rule. 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 25

51. Reserved. 

52. 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. 

53. “Best available control technology” (BACT) means an emissions limitation 

(including a visible emissions standard) based on the maximum degree of 

reduction for each regulated NSR pollutant which would be emitted from any 

proposed major stationary source or major modification which the Technical 

Secretary, on a case-by-case basis, taking into account energy, environmental, 

and economic impacts and other costs, determines is achievable for such source 

or modification through application of production processes or available methods, 

systems, and techniques, including fuel cleaning or treatment or innovative fuel 

combustion techniques for control of such pollutant. In no event shall application 

of best available control technology result in emissions of any pollutant which 

would exceed the emissions allowed by any applicable standard under 40 CFR 

part 60 or 61. If the Technical Secretary determines that technological or 

economic limitations on the application of measurement methodology to a 

particular emissions unit would make the imposition of an emissions standard 

infeasible, a design, equipment, work practice, operational standard, or 

combination thereof, may be prescribed instead to satisfy the requirement for the 

application of BACT. Such standard shall, to the degree possible, set forth the 

emissions reduction achievable by implementation of such design, equipment, 

work practice or operation, and shall provide for compliance by means which 

achieve equivalent results. 

54. “Reconstruction” means the replacement of components of an existing facility to 

such an extent that: 

(i) The fixed capital cost of the new components exceeds 50 percent of the 

fixed capital cost that would be required to construct a comparable entirely 

new facility, and 

(ii) It is technologically and economically feasible to meet the applicable 

standards set forth in this chapter. 

(iii) This part applies only in this chapter 1200-03-09 unless specified 

otherwise. 

55. “Clean coal technology” means any technology, including technologies applied at 

the pre-combustion, 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. 

56. “Clean coal technology demonstration project” means a project using funds 

appropriated under the heading “Department of Energy—Clean Coal 

Technology”, up to a total amount of $2,500,000,000 for commercial 

demonstration of clean coal technology, or similar projects funded through 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 26

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. 

57. “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 plan for the State in which the 

project is located and other requirements necessary to attain and maintain the 

national ambient air quality standards during and after the project is terminated. 

58. “Re-powering” 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. Re-powering shall also include any oil and/or gasfired unit that has been awarded clean coal technology demonstration funding as 

of January 1, 1991, by the U.S. Department of Energy. The Technical Secretary 

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. 

(c) Applicability. 

1. The requirements of this paragraph apply to the construction of any new major 

stationary source (as defined in part (b)1. of this paragraph) or any project at an 

existing major stationary source in an area designated as attainment or 

unclassifiable under sections 107(d)(1)(A)(ii) or (iii) of the Federal Clean Air Act. 

2. The requirements of subparagraphs (j), (k), (l), and (n); parts (e)1. 2., and 7.; and 

parts (a)5., 6., 8., 9., and 10. of this paragraph apply to the construction of any 

new major stationary source or the major modification of any existing major 

stationary source, except as this rule otherwise provides. 

3. No new major stationary source or major modification to which the requirements 

of subparagraphs (j), (k), (l), and (n); parts (e)1. 2., and 7.; and parts (a)5., 6., 8., 

9., and 10. of this rule apply shall begin actual construction without a permit that 

states that the major stationary source or major modification will meet those 

requirements. 

4. (i) Except as otherwise provided in sub-parts (c)5. and 6. of this paragraph, 

and consistent with the definition of major modification contained in part 

(b)2. of this paragraph, 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 part (b)34. of this paragraph), and a 

significant net emissions increase (as defined in parts (b)4. and 24.of this 

paragraph). 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. 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 27

(ii) 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 sub-parts (c)4.(iii) through (vi) of this paragraph. 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 part 

(b)4. of this paragraph. Regardless of any such preconstruction 

projections, a major modification results if the project causes a significant 

emissions increase and a significant net emissions increase. 

(iii) 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 part (b)38. of this paragraph) and 

the baseline actual emissions (as defined in sub-parts (b)45.(i) and (ii) of 

this paragraph) for each existing emissions unit, equals or exceeds the 

significant amount for that pollutant (as defined in part (b)24. of this 

paragraph). 

(iv) 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 part (b)5. of this paragraph) from each new 

emissions unit following completion of the project and the baseline actual 

emissions (as defined in sub-part (b)45.(iii) of this paragraph) of these units 

before the project equals or exceeds the significant amount for that 

pollutant (as defined in part (b)24. of this paragraph). 

(v) Reserved. 

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

significant emissions increase of a regulated NSR pollutant is projected to 

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

the method specified in subparts (c)4(iii) through (iv) of this paragraph as 

applicable with respect to each emissions unit, for each type of emissions 

unit equals or exceeds the significant amount for that pollutant (as defined 

in part (b)24 of this paragraph). 

5. For any major stationary source for a PAL for a regulated NSR pollutant, the 

major stationary source shall comply with requirements under subparagraph (s) 

of this paragraph. 

6. Reserved. 

(d) Major stationary sources and major modifications are exempt from certain provisions of 

this paragraph in accordance with the following: 

1. Major stationary sources or major modifications as defined in this paragraph shall 

not be subject to the requirements of this paragraph (except as provided in part 

(4)(a)7. of this paragraph) if: 

(i) 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 such source does not belong to any of the categories 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 28

listed under subpart (b)1.(i), or any other stationary source category which, 

as of the (effective date of this rule) is being regulated under Chapters 

1200-03-11 and 1200-03-16. 

(ii) The source or modification was subject to the new construction rules and 

regulations as in effect before June 3, 1981, and the owner or operator: 

(I) Obtained all final Federal, State, and local preconstruction approvals 

or permits necessary before June 3, 1981. 

(II) Commenced construction within 18 months of receipt of all 

necessary Federal, State, and local preconstruction approvals or 

permits; and 

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

and completed construction within the time frame as allowed in part 

1200-03-09-.01(4)(a)4. 

(iii) The source or modification was subject to the prevention of significant 

deterioration rules and regulations as in effect before June 3, 1981, and 

the owner or operator: 

(I) Submitted a completed application before June 3, 1981. 

(II) Commenced construction within 18 months of receipt of all 

necessary Federal, State, and local preconstruction approvals or 

permits; and 

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

and completed construction within the time frame as allowed in part 

1200-03-09-.01(4)(a)4. 

(iv) The source or modification was not subject to this paragraph, with respect 

to particulate matter, as in effect before June 2, 1990 and the owner or 

operator: 

(I) Obtained all final Federal, State, and local preconstruction approvals 

or permits necessary before June 2, 1990. 

(II) Commenced construction within 18 months of receipt of all 

necessary Federal, State, and local preconstruction approvals or 

permits; and 

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

and completed construction within the time frame as allowed in part 

1200-03-09-.01(4)(a)4. 

2. A major stationary source or modification as defined in this paragraph that was 

subject to the prevention of significant deterioration rules and regulations, with 

respect to particulate matter, as in effect before June 2, 1990 does not have to 

meet the PM10 requirements effective on June 2, 1990 if the owner or operator: 

(i) Submitted a completed application (as determined by the Technical 

Secretary) before June 2, 1990. 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 29

(ii) Commenced construction within 18 months of receipt of all necessary 

Federal, State, and local preconstruction approvals or permits; and 

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

completed construction within the time frame as allowed in part 1200-03-

09-.01(4)(a)4. 

3. No major stationary source or major modification as defined in this paragraph 

shall be subject to the requirements of this paragraph 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 as 

defined in Rule 1200-03-02-.01. 

4. Source impact and air quality analysis as required in parts (e)1., (e)3., and (e)7. 

of this paragraph shall not apply to a proposed major stationary source or major 

modification with respect to a particular pollutant, if the allowable emissions of 

that pollutant from a new source, or the net emissions increase of that pollutant 

from a modification, would be temporary and impact no Class I area and no area 

where an applicable increment is known to be violated. 

5. Source impact and air quality analysis as required in parts (e)1.,(e)3., and (e)7. of 

this paragraph as they relate to any maximum allowable increase for a Class II 

area do not apply to a major modification of 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. 

6. Air quality analysis as required in this paragraph may be exempted with respect 

to preconstruction monitoring for a particular pollutant by the Technical Secretary 

if: 

(i) The emissions increase of the pollutant from a new stationary source or 

the net emissions increase of the pollutant from a modification would 

cause, in any area, air quality impacts less than the following amounts: 

(I) Carbon monoxide - 575 ug/m3

, 8-hour average; 

(II) Nitrogen dioxide - 14 ug/m3

, annual average; 

 

 (III) Particulate matter: 

 10 ug/m3

 of TSP, 24-hour average 

 10 ug/m3

 of PM10, 24-hour average; 

(IV) Sulfur dioxide - 13 ug/m3

, 24-hour average; 

(V) Ozone - no de minimis air quality level has been established. 

However, any net increase of 100 tons per year or more of either 

volatile organic compounds or nitrogen oxides subject to PSD would 

be required to perform an ambient impact analysis, including the 

gathering of ambient air quality data. 

(VI) Lead (elemental) - 0.1 ug/m3

, 3-month average; 

(VII) Fluorides - 0.25 ug/m3

, 24-hour average; 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 30

(VIII) Total reduced sulfur - 10 ug/ m3, 1-hour average; 

(IX) Reduced sulfur compounds - 10 ug/ m3

, 1-hour average; 

(X) Hydrogen sulfide—0.2 μg/m3

, 1-hour average; or 

(ii) The pollutants are not listed in sub-part (d)6.(i); or 

(iii) Representative existing ambient air quality data, consistent with the 

requirements of the Ambient Monitoring Guideline for Prevention of 

Significant Deterioration (PSD), EPA-450/4-87-007, are available for any 

pollutant as emitted by a major stationary source, or major modification; or 

(iv) The existing air pollutant levels are conservatively estimated to be less 

than the concentrations listed in subpart (i) of this part, and a monitoring 

network may not reliably measure the predicted background 

concentrations; or 

(v) The concentrations of the pollutant in the area that the source or 

modification would affect are less than the concentrations listed in 

subpart (d)6(i) of this paragraph. 

7. A portable stationary source which has previously received construction approval 

under the requirements of this paragraph may relocate if: 

(i) Emissions from the source would be temporary and would not exceed its 

allowable emissions; and 

(ii) The emissions from the source would impact no Class I area and no area 

where an applicable increment is known to be violated; and 

(iii) Notice shall be given to the Technical Secretary 30 days prior to the 

relocation, giving the new temporary location and the probable length of 

operation at the new location. 

8. Exclusions from Increment Consumption 

(i) Maximum allowable increases (ambient air increments) as specified in 

subparagraph 1200-03-09-.01(4)(f) shall not apply to concentrations as 

described below. 

(I) Concentrations attributable to the increase in emissions from 

stationary sources which have converted from the use of petroleum 

products, natural gas, or both by reason of an order in effect under 

sections 2 (a) and (b) of the Energy Supply and Environmental 

Coordination Act of 1974 (or any superseding legislation) over the 

emissions from such sources before the effective date of such an 

order; 

(II) Concentrations attributable to the increase in emissions from 

sources which have converted from using natural gas by reason of a 

natural gas curtailment plan in effect pursuant to an applicable 

Federal law over the emissions from such sources before the 

effective date of such plan; 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 31

(III) Concentrations of particulate matter attributable to the increase in 

emissions from construction or other temporary emissions-related 

activities of new or modified sources; 

(IV) Concentrations attributable to the temporary increase in emissions of 

sulfur dioxide, particulate matter, or nitrogen oxides from stationary 

sources which are affected by plan revisions approved as meeting 

the criteria specified in subpart 7.(iii). 

(ii) No exclusion of such concentrations shall apply more than five years after 

the effective date of the order to which item 7.(i)(I) refers or of the plan to 

which item 7.(i)(II) refers, whichever is applicable. If both such order and 

plan are applicable, no such exclusion shall apply more than five years 

after the later of such effective dates. 

(iii) For purposes of excluding concentrations pursuant to item 7.(i)(IV), the 

proposed plan revision shall: 

(I) Specify the time over which the temporary emissions increase of 

sulfur dioxide, particulate matter, or nitrogen oxides would occur. 

Such time is not to exceed two years in duration. 

(II) Specify that the time period for excluding certain contributions in 

accordance with item 7.(iii)(I) is not renewable. 

(III) Allow no emission increase from a stationary source which would: 

I. Impact a Class I area or an area where an applicable 

increment is known to be violated; or 

II. Cause or contribute to the violation of a national ambient air 

quality standard; 

(IV) Require limitations to be in effect at the end of the time period 

specified in accordance with item 7.(iii)(I) which would ensure that 

the emissions levels from stationary sources affected by the plan 

revision would not exceed those levels occurring from such sources 

before the plan revision was approved. 

9. With the approval of the Technical Secretary, the requirements for air quality 

monitoring of PM10 in part (e)7. of this paragraph may not apply to a particular 

major stationary source or major modification if the owner or operator submitted 

an application for a permit on or before June 1, l988 and the Technical Secretary 

determines that the application as submitted before that date was complete, 

except with respect to the particulate matter monitoring requirements in part (e)7. 

of this paragraph. 

10. Preapplication air quality analysis for ozone as required in part (e)7. of this 

paragraph will not be necessary if the source owner or operator chooses to meet 

the lowest achievable emission rate (LAER) in lieu of meeting the requirements 

to apply best available control technology (BACT) for emissions of volatile 

organic compounds or nitrogen oxides and is required to conduct postconstruction monitoring for ozone. 

(e) The owner or operator of the proposed major stationary source or major modification: 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.01, continued) 

November, 2011 (Revised) 32

1. Shall demonstrate by performing source impact analysis that allowable emission 

increases from the proposed source or modification, in conjunction with all other 

applicable emissions increases or reduction (including secondary emissions) 

would not cause or contribute to air pollution in violation of: 

(i) Any Tennessee ambient air quality standard in the source impact area. 

(ii) Any applicable maximum allowable increase over the baseline 

concentration in any area. 

2. Shall submit all data necessary to make the analyses and determinations 

required under this paragraph. 

(i) The data shall include: 

(I) A description of the nature, location, design capacity, and typical 

operating schedule of the source or modification, including 

specifications and drawings needed for the review showing its 

design and plant layout. 

(II) A detailed proposed 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 (BACT) would be applied where 

required by this paragraph. 

(IV) Additional impact analysis 

I. The impairment to visibility, soils, and vegetation that would 

occur as a result of the source or modification and the 

associated general commercial, residential, industrial, and 

other growth. Vegetation having no significant commercial or 

recreational value may be excluded from the analysis. 

II. The air quality impact projected for the area as a result of 

general commercial, residential, industrial, and other growth 

associated with the source or modification. 

III. The Technical Secretary may require monitoring of visibility in 

any Federal Class I area near the proposed new stationary 

source or major modification, for such purposes and by such 

means as the Technical Secretary deems necessary and 

appropriate. 

(ii) Upon request by the Technical Secretary, the owner or operator shall also 

provide information on: 

(I) The air quality impact of the source or modification, including 

meteorological and topographical data. 

(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 the PSD baseline date in the area the source or 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 33

modification would affect. Such data in the possession of the 

Division shall be made available to the owner or operator. 

3. Shall, after construction of the stationary source or modification, conduct such 

post-construction monitoring as the Technical Secretary 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. 

4. Shall meet the quality assurance requirements as specified in the Code of 

Federal Regulations, Title 40, Part 58, Appendix B, as published July 1, 1991, 

during the operation of monitoring stations for purposes of satisfying parts (e)3. 

and (e)7. of this paragraph. 

5. Shall insure that the major stationary source or the major modification be in 

compliance with all applicable emission limitations of this Division 1200-03. 

6. Shall pay the cost of all publications required under this paragraph. 

7. Shall perform the preapplication air quality analysis as outlined below: 

(i) Any application for a construction permit pursuant to the regulations of this 

paragraph shall contain an analysis of ambient air quality in the area that 

the major stationary source or major modification would affect for each of 

the following pollutants: 

(I) For the source, each pollutant that it would have the potential to emit 

in a significant amount; 

(II) For the modification, each pollutant for which it would result in a 

significant net emissions increase. 

(ii) For a pollutant for which an ambient air quality standard exists in these 

regulations (other than non-methane hydrocarbons), 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 unless 

specifically exempted in subparagraph 1200-03-09-.01(4)(d). 

(iii) In general, the continuous air monitoring data that is required shall have 

been gathered over a period of one year and shall represent the year 

preceding receipt of the application, except that, if the Technical Secretary 

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. 

(iv) (Reserved) 

(v) With respect to any pollutant for which no Tennessee Ambient Air Quality 

Standard exists, the analysis shall contain such air quality monitoring data 

as is determined by the Technical Secretary and EPA to be necessary to 

assess ambient air quality for that pollutant in any area that the emissions 

of the pollutant would affect. 

(vi) The requirements for air quality monitoring of PM10 in subparts (ii) and (iii) 

of this part shall apply to a particular source or modification if the owner or 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 34

operator of the source or modification submits an application for a permit 

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 (i through v) of this part, except that if the 

Technical Secretary 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 required in (i through v) shall have been 

gathered over that shorter period. 

(vii) For any application that becomes complete, except as to the requirements 

of subparts (ii) and (iii) of this part pertaining to PM10, after December 1, 

1988 and no later than August 1, 1989 the data that subpart (ii) 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 

Technical Secretary 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 subpart (ii) of this part requires shall 

have been gathered over that shorter period. 

(f) 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: 

MAXIMUM ALLOWABLE INCREASE 

(Micrograms per cubic meter) 

Class I

Pollutant ug/m3

PM-10: 

 PM-10, Annual arithmetic mean. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 

 PM-10, 24-hour maximum. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 

Sulfur dioxide: 

 Annual arithmetic mean. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 

 24-hour maximum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 

 3-hour maximum. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 

Nitrogen dioxide: 

 

Annual arithmetic mean. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ...... 2.5 

Class II

PM-10-:

 

PM-10-, Annual arithmetic mean. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 

 

PM-10-, 24-hour maximum. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 35

Sulfur dioxide: 

 

Annual arithmetic mean. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 

 

24-hour maximum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 

 

3-hour maximum. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 512 

Nitrogen dioxide: 

 

Annual arithmetic mean. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 

Class III

PM-10-: 

 

PM-10-, Annual arithmetic mean. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 

 

PM-10-, 24-hour maximum. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 

Sulfur dioxide: 

 

Annual arithmetic mean. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 

 

24-hour maximum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182 

 

3-hour maximum. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 700 

Nitrogen dioxide: 

 

Annual arithmetic mean. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 

 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. 

(g) Area classifications - For the purpose of this paragraph, the following classifications 

shall apply: 

1. Class I Areas - Great Smoky Mountains National Park, Joyce Kilmer Slickrock 

National Wilderness Area, and the Cohutta Wilderness Area. 

2. Class III Areas - None 

3. Class II Areas - Remainder of the state 

 Areas in surrounding states are classified as specified in the EPA approved 

implementation plan for each adjoining state. 

(h) 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, 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 36

(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 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 as 

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. 

5. In redesignation, the procedures specified in 40 CFR 51.166(g) as of July 1, 

1992, shall be applied. 

(i) Ambient air ceilings 

1. No concentration of a pollutant shall exceed the concentration permitted under 

the Tennessee secondary ambient air quality standard (Chapter 1200-03-03, 

Table 1), or the concentration permitted under the Tennessee primary ambient 

air quality standard (Chapter 1200-03-03, Table 1), whichever concentration is 

lowest for the pollutant for a period of exposure. 

2. Except as permitted by Section 123 of the Clean Air Act Amendments of 1977, 

dispersion techniques which exceed good engineering practice, and which were 

implemented after December 31, 1970, will not be considered when determining 

the emission limitations required for control of any pollutant. 

(j) Control Technology Review 

1. A major stationary source or major modification shall meet each applicable 

emissions limitation under this Division 1200-03 and the State Implementation 

Plan, and each applicable emission standard and standard of performance under 

40 CFR parts 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. 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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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) Air Quality Models. 

 All estimates of ambient concentrations required under this paragraph shall be based 

on the applicable air quality models, data bases, and other requirements specified in 40 

CFR Part 51 Appendix W, which is incorporated by reference. Where an air quality 

impact model specified in 40 CFR Part 51 Appendix W is inappropriate, the model may 

be modified or another model substituted by the Technical Secretary after consultation 

with the EPA Administrator. The use of a modified or substituted model must be subject 

to notice and opportunity for public comment under procedures developed in 

accordance with subparagraph (l) of this paragraph. 

(l) Public Participation 

1. Within 30 days after receipt of an application to construct, or any addition to such 

application, the Technical Secretary shall advise the applicant of any deficiency 

in the application or in the information submitted. In the event of such a 

deficiency, the date of receipt of the application shall be, for the purpose of this 

section, the date on which the Technical Secretary received all required 

information. 

2. The Technical Secretary shall make a final determination on the application no 

later than 6 months after receipt of a complete application. If there is a need for 

a longer period of time for review, it shall be agreed upon by mutual consent. In 

no case may this review period be longer than 1 year. The review process 

involves performing the following actions: 

(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 air quality control region in 

which the proposed source 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 air quality control region in which the proposed source or modification 

would be constructed, of the application, the preliminary determination, the 

degree of increment consumption that is expected from the source 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 and to 

officials and agencies having cognizance over the location where the 

proposed construction would occur as follows: State or local air pollution 

control agencies, the chief executives of the city and county where the 

source or modification would be located, any comprehensive regional land 

use planning agency, the EPA Administrator, and any State or Federal 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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Land Manager whose lands may be affected by emissions from the source 

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 source 

or modification, alternatives to it, 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 or request an extension for this purpose. The Technical 

Secretary shall consider the applicant’s response in making a final 

decision. The Technical Secretary shall make all comments available for 

public inspection in the same locations where the Technical Secretary 

made available preconstruction information relating to the proposed source 

or modification. 

(vii) Make a final determination whether construction should be approved, 

approved with conditions, or disapproved pursuant to this paragraph. 

(viii) Notify the applicant in writing of the final determination and make such 

notification available for public inspection at the same location where the 

Technical Secretary made available preconstruction information and public 

comments relating to the source or modification. 

(ix) All public comments and written comments prepared by the Technical 

Secretary will be maintained in the public depositories for one year from 

the date of issuance of the final determination. 

(m) Violations of Ambient Air Quality Increments or Standards 

 The Technical Secretary shall not issue a construction permit to a source or facility to 

construct in an area where the increment is known to be violated or the air quality 

review predicts a violation of the increment or the ambient air quality standards except 

in accordance with the following: 

1. All new or modified facilities shall utilize good engineering practice as determined 

by the Technical Secretary in designing stacks. In no event shall that part of a 

stack which exceeds good engineering practice stack height be taken into 

account for the purpose of determining the degree of emission limitation required 

for the control of any pollutant for which there is an ambient air quality standard 

established in Chapter 1200-03-03, Table 1. 

2. A major source or modification which would normally be required to meet BACT 

shall be required to meet the Lowest Achievable Emission Rate (LAER) for that 

type of source as determined at the time of the permit application. The term 

“lowest achievable emission rate” shall be defined as found in part 1200-03-09-

.01(4)(b)50. of this rule. 

3. If requirements of parts 1200-03-09-.01(4)(m)1. and 2. are not adequate to 

protect the increment or the ambient air quality standards, the source shall obtain 

emission offsets, legally enforceable at or before the time of PSD permit 

issuance, sufficient to predict that the increment or air quality standard will no 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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longer be violated. The offsets shall be accomplished on or before the time of 

the new source operation and demonstrated through a source test or through 

another method acceptable to the Technical Secretary. 

4. A major stationary source or major modification will be considered to cause or 

contribute to a violation of an ambient air quality standard when such source or 

modification would, at a minimum, exceed the following significance levels at any 

locality that does not or would not meet the applicable ambient air quality 

standard: 

Pollutant Annual 24 hour 8 hour 3 hour 1 hour 

PM10

 1 5 

Sulfur 

 Dioxide 1 5 25 

Carbon 

 Monoxide 500 2000 

Nitrogen 

 Dioxide 1 

(Levels are in units of micrograms per cubic meter.) 

5. This rule does not exempt the source from meeting the requirements of 

paragraph 1200-03-09-.01(5). 

(n) Sources Impacting Class I Areas - Additional Requirements 

1. Notice to Federal Land Managers and the EPA Administrator 

 The Technical Secretary shall promptly provide written notice of receipt of any 

permit application for a proposed major stationary source or major modification, 

the emissions from which may affect a Class I area or which may have an 

adverse impact on visibility in any Class I area to the EPA Administrator, the 

Federal Land Manager, and the Federal official charged with direct responsibility 

for management of any lands within any such area. The Technical Secretary 

shall transmit to the EPA Administrator and the Federal Land Manager a copy of 

each permit application relating to a major stationary source or major 

modification which would affect a Class I area. This application shall include a 

copy of all information relevant to the permit application and shall be given within 

30 days of receipt of the permit application, 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 Technical Secretary shall also provide the EPA 

Administrator, the Federal Land Manager and such Federal officials with a copy 

of the preliminary determination and shall make available to them any materials 

used in making that determination promptly after the Technical Secretary makes 

it. In addition, notification of public hearings, final determinations, and permits 

issued shall be provided. Finally, the Technical Secretary shall also notify all 

affected Federal Land Managers within 30 days of receipt of any advance 

notification of any such permit application. 

2. Denial - Impact on Air Quality Related Values 

 The Federal Land Manager of any such lands may demonstrate to the Technical 

Secretary that the emissions from a proposed source or modification would have 

an adverse impact on the air quality-related values (including visibility) of those 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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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 

Technical Secretary concurs with such demonstration, then he shall not issue the 

permit. 

3. 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 

he so certifies, the Technical Secretary, provided that the applicable 

requirements of this paragraph are otherwise met, may issue the permit with 

such emission limitations as may be necessary as approved by the Tennessee 

Air Pollution Control Board to assure that emissions of sulfur dioxide, particulate 

matter, and nitrogen oxides would not exceed the following maximum allowable 

increases over baseline concentration for such pollutants: 

 Maximum 

 allowable 

 increase 

Pollutant ug/m3 

PM-10-: 

 PM-10-, Annual arithmetic mean. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 

 PM-10-, 24 hr. maximum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 

Sulfur dioxide: 

 Annual arithmetic mean. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 

 24-hr. maximum. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 

 3-hr. maximum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 325 

Nitrogen dioxide: 

 Annual arithmetic mean. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25 

4. Visibility Analysis 

 The Technical Secretary shall consider any analysis performed by the Federal 

Land Manager, provided to the Technical Secretary within 30 days of the 

notification and analysis required in part 1. of this subparagraph, that a proposed 

new major stationary source or major modification may have an adverse impact 

on visibility in any Federal Class I area. If the Technical Secretary concurs with 

the analysis then he shall not issue the permit. Where the Technical Secretary 

finds that such an analysis does not demonstrate to the satisfaction of the 

Technical Secretary that an adverse impact on visibility will result in the Federal 

Class I area, the Technical Secretary must, in the notice of public hearing on the 

permit application, either explain his decision or give notice as to where the 

explanation can be obtained. 

(o) Innovative Control Technology 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 41

1. The owner or operator of a proposed major stationary source or major 

modification may request that the Technical Secretary approve a system of 

innovative control technology. 

2. The Technical Secretary, with the consent of the Governor(s) of the other 

affected State(s), may 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 part 

1200-03-09-.01(4)(j)1. by a date specified by the Technical Secretary. 

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 parts (e)1. and 

(j)1. based on the emission rate that the stationary source employing the 

system of innovative control technology would be required to meet on the 

date specified by the Technical Secretary. 

(iv) The source or modification shall not: 

(I) Cause or contribute to a violation of an applicable ambient air quality 

standard; or 

(II) Have an adverse impact on any Class I area; or 

(III) 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. 

3. The Technical Secretary shall withdraw any approval to employ a system of 

innovative control technology made under this subparagraph, 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 

ambient air quality violations, or to an unreasonable risk to public health, 

welfare, or safety; or 

(iii) The Technical Secretary decides at any time that the proposed system is 

unlikely to achieve the required level of control, or to protect the public 

health, welfare, or safety. 

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 part (o)3., the Technical Secretary may allow the source or 

modification up to an additional 3 years to meet the requirement for the 

application of best available control technology through use of a demonstrated 

system of control. 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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(p) Reserved. 

(q) Reserved. 

(r) Reserved. 

(s) Actuals PALs. 

1. Applicability. 

(i) The Technical Secretary may approve the use of an actuals PAL for any 

existing major stationary source if the PAL meets the requirements in parts 

(s)1. through 15. of this paragraph. The term “PAL” shall mean “actuals 

PAL” throughout sub-paragraph (s) of this paragraph. 

(ii) Any physical change in or change in the method of operation of a major 

stationary source that maintains its total source-wide emissions below the 

PAL level, meets the requirements in parts (s)1. through 15. of this 

paragraph, and complies with the PAL permit: 

(I) Is not a major modification for the PAL pollutant; 

(II) Does not have to be approved through the major NSR program; and 

(III) Is not subject to the provisions in part (a)6. of this paragraph 

(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 item (s)1.(ii)(III) of this paragraph, a major 

stationary source shall continue to comply with all applicable Federal or 

State requirements, emission limitations, and work practice requirements 

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

2. Definitions. When a term is not defined in these sub-parts, it shall have the 

meaning given in subparagraph (b) of this rule or in the Federal Clean Air Act. 

(i) “Actuals PAL” for a major stationary source means a PAL based on the 

baseline actual emissions (as defined in part (b)45. of this paragraph) of all 

emissions units (as defined in part (b)8. of this paragraph) at the source, 

that emit or have the potential to emit the PAL pollutant. 

(ii) “Allowable emissions” means “allowable emissions” as defined in part 

(b)17. of this paragraph, except as this definition is modified according to 

items (s)2.(ii)(I) and (II) of this paragraph. 

(I) The allowable emissions for any emissions unit shall be calculated 

considering any emission limitations that are enforceable as a 

practical matter on the emissions unit’s potential to emit. 

(II) An emissions unit’s potential to emit shall be determined using the 

definition in part (b)5. of this paragraph, except that the words “or 

enforceable as a practical matter” should be added after “federally 

enforceable.” 
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(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 part (b)24. of this paragraph or in 

the Federal Clean Air Act, whichever is lower. 

(iv) “Major emissions unit” means: 

(I) Any emissions unit that emits or has the potential to emit 100 tons 

per year or more of the PAL pollutant in an attainment area; or 

(II) Any emissions unit that emits or has the potential to emit the PAL 

pollutant in an amount that is equal to or greater than the major 

source threshold for the PAL pollutant as defined by the Federal 

Clean Air Act for nonattainment areas. For example, in accordance 

with the definition of major stationary source in section 182(c) of the 

Federal 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 parts (s)1. through 15. of this paragraph. 

(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 parts (b)2., 3., and 4. of 

this paragraph (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 a program that is approved into the plan, or 

the title V permit issued by the Technical Secretary 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 part (b)24. of this paragraph or in 

the Federal Clean Air Act, whichever is lower) for that PAL pollutant, but 

less than the amount that would qualify the unit as a major emissions unit 

as defined in sub-part (s)2.(iv) of this paragraph. 

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 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 44

following information in sub-parts (s)3.(i) through (iii) of this paragraph to the 

Technical Secretary 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 sub-part (s)13.(i) of this paragraph. 

4. General requirements for establishing PALs. 

(i) The Technical Secretary may establish a PAL at a major stationary source, 

provided that at a minimum, the requirements in items (s)4.(i)(I) through 

(VII) of this paragraph are met. 

(I) The PAL shall impose an annual emission limitation in tons per year, 

that is enforceable as a practical matter, for the entire major 

stationary source. For each month during the PAL effective period 

after the first 12 months of establishing a PAL, the major stationary 

source owner or operator shall show that the sum of the monthly 

emissions from each emissions unit under the PAL for the previous 

12 consecutive months is less than the PAL (a 12-month average, 

rolled monthly). For each month during the first 11 months from the 

PAL effective date, the major stationary source owner or operator 

shall show that the sum of the preceding monthly emissions from the 

PAL effective date for each emissions unit under the PAL is less 

than the PAL. 

(II) The PAL shall be established in a PAL permit that meets the public 

participation requirements in part (s)5. of this paragraph. 

(III) The PAL permit shall contain all the requirements of part (s)7. of this 

paragraph. 

(IV) The PAL shall include fugitive emissions, to the extent quantifiable, 

from all emissions units that emit or have the potential to emit the 

PAL pollutant at the major stationary source. 

(V) Each PAL shall regulate emissions of only one pollutant. 

(VI) Each PAL shall have a PAL effective period of 10 years. 

(VII) The owner or operator of the major stationary source with a PAL 

shall comply with the monitoring, recordkeeping, and reporting 

requirements provided in parts (s)12. through 14. of this paragraph 

for each emissions unit under the PAL through the PAL effective 

period. 
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(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 sub-part (5)(b)2.(v) 

of this rule unless the level of the PAL is reduced by the amount of such 

emissions reductions and such reductions would be creditable in the 

absence of the PAL. 

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 40 CFR 51.160 and 51.161, subparagraph (l) of this paragraph, 

part (5)(b)3. of this rule, or 1200-03-09-.02(11)(f)8. This includes the requirement 

that the Technical Secretary provide the public with notice of the proposed 

approval of a PAL permit and at least a 30-day period for submittal of public 

comment. The Technical Secretary 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 sub-part (s)6.(ii) of this paragraph, the actuals PAL 

level for a major stationary source shall be established as the sum of the 

baseline actual emissions (as defined in part (b)(45) of this paragraph) 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 part 

(b)24. of this paragraph or under the Federal 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. Emissions associated with 

units that were permanently shut down after this 24-month period must be 

subtracted from the PAL level. The Technical Secretary 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 Technical Secretary 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 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 actual construction began after the 24-month period, in lieu 

of adding the baseline actual emissions as specified in sub-part (s)6.(i) of 

this paragraph, the emissions must be added to the PAL level in an 

amount equal to the potential to emit of the units. 

7. Contents of the PAL permit. The PAL permit shall contain, at a minimum, the 

information in sub-parts (s)7.(i) through (x) of this paragraph. 

(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 part (s)10. of this 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 46

paragraph 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 Technical Secretary. 

(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 part (s)9. of this paragraph. 

(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 sub-part (s)13.(i) of this paragraph. 

(vii) A requirement that the major stationary source owner or operator monitor 

all emissions units in accordance with the provisions under part (s)13. of 

this paragraph. 

(viii) A requirement to retain the records required under part (s)12. of this 

paragraph on site. Such records may be retained in an electronic format. 

(ix) A requirement to submit the reports required under part (s)14. of this 

paragraph by the required deadlines. 

(x) Any other requirements that the Technical Secretary deems necessary to 

implement and enforce the PAL. 

8. PAL effective period and reopening of the PAL permit. 

(i) PAL effective period. The Technical Secretary shall specify a PAL effective 

period of 10 years. 

(ii) Reopening of the PAL permit. 

(I) During the PAL effective period, the Technical Secretary shall 

reopen the PAL permit to: 

 I Correct typographical/calculation errors made in setting the PAL 

or reflect a more accurate determination of emissions used to 

establish the PAL; 

 II Reduce the PAL if the owner or operator of the major stationary 

source creates creditable emissions reductions for use as offsets 

under sub-part (5)(b)2.(v) of this rule; and 

 III Revise the PAL to reflect an increase in the PAL as provided 

under part (s)11. of this paragraph. 

(II) The Technical Secretary may reopen the PAL permit for the 

following: 

I Reduce the PAL to reflect newly applicable Federal 

requirements (for example, NSPS) with compliance dates after 

the PAL effective date; 
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II Reduce the PAL consistent with any other requirement, that is 

enforceable as a practical matter, and that the State may 

impose on the major stationary source under the plan; and 

III Reduce the PAL if the Technical Secretary determines that a 

reduction is necessary to avoid causing or contributing to a 

NAAQS or PSD increment violation, or to an adverse impact 

on an AQRV that has been identified for a Federal Class I area 

by a Federal Land Manager and for which information is 

available to the general public. 

(III) Except for the permit reopening in sub-item (s)8.(ii)(I)I of this 

paragraph for the correction of typographical/calculation errors that 

do not increase the PAL level, all reopenings shall be carried out in 

accordance with the public participation requirements of part (s)5. of 

this paragraph. 

9. Expiration of a PAL. Any PAL that is not renewed in accordance with the 

procedures in part (s)10. of this paragraph shall expire at the end of the PAL 

effective period, and the requirements in sub-part (s)9.(i) through (v) of this 

paragraph 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 items (s)9.(i)(I) and (II) of 

this paragraph. 

(I) Within the time frame specified for PAL renewals in sub-part (s)10.(ii) 

of this paragraph, 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 Technical Secretary) 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 sub-part 

(s)10.(v) of this paragraph, such distribution shall be made as if the 

PAL had been adjusted. 

(II) The Technical Secretary 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 Technical Secretary determines is 

appropriate. 

(ii) Each emissions unit(s) shall comply with the allowable emission limitation 

on a 12-month rolling basis. The Technical Secretary 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 Technical Secretary issues the revised permit incorporating 

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

as required under item (s)9.(i)(II) of this paragraph, the source shall 

continue to comply with a source-wide, multi-unit emissions cap equivalent 

to the level of the PAL emission limitation. 
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(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 parts (b)2. and 3. of this 

paragraph. 

(v) The major stationary source owner or operator shall continue to comply 

with any State or Federal applicable requirements (BACT, RACT, NSPS, 

etc.) that may have applied either during the PAL effective period or prior 

to the PAL effective period except for those emission limitations that had 

been established pursuant to part (a)6. of this paragraph, but were 

eliminated by the PAL in accordance with the provisions in item (s)1.(ii)(III) 

of this paragraph. 

10. Renewal of a PAL. 

(i) The Technical Secretary shall follow the procedures specified in part (s)5. 

of this paragraph 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 Technical Secretary. 

(ii) Application deadline. A major stationary source owner or operator shall 

submit a timely application to the Technical Secretary 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 items (s)10.(iii)(I) through (IV) of this 

paragraph. 

(I) The information required in sub-parts (s)3.(i) through (iii) of this 

paragraph. 

(II) A proposed PAL level. 

(III) The sum of the potential to emit of all emissions units under the PAL 

(with supporting documentation). 

(IV) Any other information the owner or operator wishes the Technical 

Secretary to consider in determining the appropriate level for 

renewing the PAL. 

(iv) PAL adjustment. In determining whether and how to adjust the PAL, the 

Technical Secretary shall consider the options outlined in items (s)10.(iv)(I) 

and (II) of this paragraph. However, in no case may any such adjustment 

fail to comply with item (s)10.(iv)(III) of this paragraph. 

(I) If the emissions level calculated in accordance with part (s)6. of this 

paragraph is equal to or greater than 80 percent of the PAL level, the 
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Technical Secretary may renew the PAL at the same level without 

considering the factors set forth in item (s)10.(iv)(II) of this 

paragraph; or 

(II) The Technical Secretary 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 Technical Secretary in its written rationale. 

(III) Notwithstanding items (s)10.(iv)(I) and (II) of this paragraph: 

I If the potential to emit of the major stationary source is less 

than the PAL, the Technical Secretary shall adjust the PAL to 

a level no greater than the potential to emit of the source; and 

II The Technical Secretary shall not approve a renewed PAL 

level higher than the current PAL, unless the major stationary 

source has complied with the provisions of part (s)11. of this 

paragraph (increasing a PAL). 

(v) If the compliance date for a State or Federal requirement that applies to 

the PAL source occurs during the PAL effective period, and if the Technical 

Secretary has not already adjusted for such requirement, the PAL shall be 

adjusted at the time of PAL permit renewal or title V permit renewal, 

whichever occurs first. 

11. Increasing a PAL during the PAL effective period. 

(i) The Technical Secretary may increase a PAL emission limitation only if the 

major stationary source complies with the provisions in items (s)11.(i)(I) 

through (IV) of this paragraph. 

(I) 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. 

(II) 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. 
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(III) The owner or operator obtains a major NSR permit for all emissions 

unit(s) identified in item (s)11.(i)(I) of this paragraph, regardless of 

the magnitude of the emissions increase resulting from them (that is, 

no significant levels apply). These emissions unit(s) shall comply 

with any emissions requirements resulting from the major NSR 

process (for example, BACT), even though they have also become 

subject to the PAL or continue to be subject to the PAL. 

(IV) 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 Technical Secretary 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 item (s)11.(i)(II) of this paragraph), 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 part (s)5. of this paragraph. 

12. Monitoring requirements for PALs 

(i) General requirements. 

(I) 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. 

(II) The PAL monitoring system must employ one or more of the four 

general monitoring approaches meeting the minimum requirements 

set forth in items (s)12.(ii)(I) through (IV) of this paragraph and must 

be approved by the Technical Secretary. 

(III) Notwithstanding item (s)12.(i)(II) of this paragraph, you may also 

employ an alternative monitoring approach that meets item 

(s)12.(i)(I) of this paragraph if approved by the Technical Secretary. 

(IV) Failure to use a monitoring system that meets the requirements of 

this paragraph 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 sub-parts 

(s)12.(iii) through (ix) of this paragraph: 

(I) Mass balance calculations for activities using coatings or solvents; 
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(II) CEMS; 

(III) CPMS or PEMS; and 

(IV) 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: 

(I) 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; 

(II) 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 

(III) 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 Technical 

Secretary 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: 

(I) CEMS must comply with applicable Performance Specifications 

found in 40 CFR part 60, appendix B; and 

(II) 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: 

(I) 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 

(II) Each CPMS or PEMS must sample, analyze, and record data at 

least every 15 minutes, or at another less frequent interval approved 

by the Technical Secretary, 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: 

(I) All emission factors shall be adjusted, if appropriate, to account for 

the degree of uncertainty or limitations in the factors’ development; 

(II) The emissions unit shall operate within the designated range of use 

for the emission factor, if applicable; and 
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(III) 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 

site-specific emission factor within 6 months of PAL permit issuance, 

unless the Technical Secretary 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 sub-parts (s)12.(iii) through (vii) of this 

paragraph, where an owner or operator of an emissions unit cannot 

demonstrate a correlation between the monitored parameter(s) and the 

PAL pollutant emissions rate at all operating points of the emissions unit, 

the Technical Secretary shall, at the time of permit issuance: 

(I) Establish default value(s) for determining compliance with the PAL 

based on the highest potential emissions reasonably estimated at 

such operating point(s); or 

(II) 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 revalidated through performance testing or other scientifically valid means 

approved by the Technical Secretary. Such testing must occur at least 

once every 5 years after issuance of the PAL. 

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 

subparagraph (s) of this paragraph 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: 

(I) A copy of the PAL permit application and any applications for 

revisions to the PAL; and 

(II) 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 Technical 

Secretary in accordance with the applicable title V operating permit program. The 

reports shall meet the requirements in sub-parts (s)14.(i) through (iii) of this 

paragraph. 
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(i) Semi-annual report. The semi-annual report shall be submitted to the 

Technical Secretary within 30 days of the end of each reporting period. 

This report shall contain the information required in items (s)14.(i)(I) 

through (VII) of this paragraph. 

(I) The identification of owner and operator and the permit number. 

(II) Total annual emissions (tons/year) based on a 12-month rolling total 

for each month in the reporting period recorded pursuant to sub-part 

(s)13.(i) of this paragraph. 

(III) All data relied upon, including, but not limited to, any Quality 

Assurance or Quality Control data, in calculating the monthly and 

annual PAL pollutant emissions. 

(IV) A list of any emissions units modified or added to the major 

stationary source during the preceding 6-month period. 

(V) 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. 

(VI) 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 sub-part (s)12.(vii) of this paragraph. 

(VII) 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 item .02(11)(e)1.(iii)(III) of this chapter shall satisfy 

this reporting requirement. The deviation reports shall be submitted within 

the time limits prescribed by item .02(11)(e)1.(iii)(III) of this chapter. The 

reports shall contain the following information: 

(I) The identification of owner and operator and the permit number; 

(II) The PAL requirement that experienced the deviation or that was 

exceeded; 

(III) Emissions resulting from the deviation or the exceedance; and 

(IV) 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. 
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(iii) Re-validation results. The owner or operator shall submit to the Technical 

Secretary the results of any re-validation test or method within three 

months after completion of such test or method. 

15. Transition requirements. 

(i) The Technical Secretary may not issue a PAL that does not comply with 

the requirements in parts (s)1. through 15. of this paragraph after the 

Administrator has approved regulations incorporating these requirements 

into the State Implementation Plan (SIP). 

(ii) The Technical Secretary 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 parts (s)1. through 15. of this 

paragraph. 

(t) If any provision of this section, or the application of such provision to any person or 

circumstance, is held invalid, the remainder of this section, 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. 

(5) Growth Policy 

(a) Attainment and Unclassified Areas 

 The Technical Secretary shall not grant a permit for the construction or modification of 

any air contaminant source in an attainment or unclassified area if such construction or 

modification will interfere with the maintenance of an air quality standard or PSD 

increment where applicable, or will violate any provisions of the Tennessee Air Quality 

Act, or section 165 (a)(3) of the Clean Air Act, Amendments of 1990. 

(b) Nonattainment Areas 

1. Definitions as used in this subparagraph are not alphabetized. All terms not 

defined herein shall have the meaning given them in Chapter 1200-3-2. 

(i) “Stationary source” means any building, structure, facility, or installation 

which emits or may emit -a regulated NSR pollutant. 

(ii) “Building, structure, facility, or installation” means all of the air contaminantemitting 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). Air 

contaminant-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 two digit code) which is specified in the Standard Industrial 

Classification Manual, 1972, as amended by the 1977 Supplement (U.S. 

Government Printing Office stock numbers 4101-0065 and 003-005-00176-

0, respectively)). 

(iii) “Potential to emit” means the maximum capacity of a stationary source to 

emit an air contaminant under its physical and operational design. Any 

physical or operational limitation on the capacity of the source to emit an 

air contaminant, including air contaminant 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 only 
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if the limitation or the effect it would have on emissions is “legally 

enforceable.” Secondary emissions do not count in determining the 

“potential to emit” of a stationary source. 

(iv) “Major stationary source” means: 

(I) Any stationary source of air contaminants which emits, or has the 

potential to emit, 100 tons per year or more of any regulated NSR 

pollutant, except that lower emissions thresholds shall apply in areas 

subject to subpart 2, subpart 3, or subpart 4 of part D, title I of the 

Clean Air Act, according to sub-items I through VI of this item. 

I. 50 tons per year of either volatile organic compounds or nitrogen 

oxides in any serious ozone non-attainment area. 

II. 50 tons per year of either volatile organic compounds or nitrogen 

oxides in an area within an ozone transport region, except for 

any severe or extreme ozone non-attainment area. 

III. 25 tons per year of either volatile organic compounds or nitrogen 

oxides in any severe ozone non-attainment area. 

IV. 10 tons per year of either volatile organic compounds or nitrogen 

oxides in any extreme ozone non-attainment area. 

V. 50 tons per year of carbon monoxide in any serious nonattainment area for carbon monoxide, where stationary sources 

contribute significantly to carbon monoxide levels in the area (as 

determined under rules issued by the Administrator of the U.S. 

EPA). 

VI. 70 tons per year of PM–10 in any serious non-attainment area 

for PM–10; or 

(II) Any physical change that would occur at a stationary source not 

qualifying under item (iv)(I) as a major stationary source, if the change 

would constitute a major stationary source by itself. 

(III) A major stationary source that is major for volatile organic 

compounds or nitrogen oxides shall be considered major for ozone. 

(IV) The fugitive emissions of a stationary source shall not be included in 

determining for any of the purposes of this Item, whether it is a major 

stationary source, unless the source belongs to one of the following 

categories of stationary sources: 

I Coal cleaning plants (with thermal dryers); 

II Kraft pulp mills; 

III Portland cement plants; 

IV Primary zinc smelters; 

V Iron and steel mills; 
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VI Primary aluminum ore reduction plants; 

VII Primary copper smelters; 

VIII Municipal incinerators (or combination thereof) capable of 

charging more than 250 tons of refuse per day; 

IX Hydrofluoric, sulfuric, or nitric acid plants; 

X Petroleum refineries; 

XI Lime plants; 

XII Phosphate rock processing plants; 

XIII Coke oven batteries; 

XIV Sulfur recovery plants; 

XV Carbon black plants (furnace process); 

XVI Primary lead smelters; 

XVII Fuel conversion plants; 

XIII Sintering plants; 

XIX Secondary metal production plants; 

XX Chemical process plants; 

XXI Fossil-fuel boilers (or combination thereof) totaling more 

than 250 million British thermal units per hour heat input; 

XXII Petroleum storage and transfer units with a total storage 

capacity exceeding 300,000 barrels; 

XXIII Taconite ore processing plants; 

XXIV Glass fiber processing plants; 

XXV Charcoal production plants; 

XXVI Fossil fuel-fired steam electric plants of more than 250 

million British thermal units per hour heat input; and 

XXVII Any other stationary source category which, as of August 7, 

1980, is being regulated under Chapter 1200-03-16, New 

Source Performance Standards or Chapter 1200-03-11, 

Hazardous Air Contaminants or Chapter 1200-03-31, 

Standards For Hazardous Air Contaminants For Source 

Categories. 

(v) Major modification: 
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(I) “Major modification” means any physical change in or change in the 

method of operation of a major stationary source that would result in: 

I A significant emissions increase of a regulated NSR pollutant 

(as defined in sub-part 1.(xlix) of this subparagraph). 

II. A significant net emissions increase of that pollutant from the 

major stationary source. 

(II) Any significant emissions increase (as defined in sub-part 1.(xxxix) of 

this subparagraph) from any emissions units or net emissions 

increase (as defined in sub-part 1(vi) of this subparagraph) at a 

major stationary source that is significant for volatile organic 

compounds and/or nitrogen oxides shall be considered significant for 

ozone. 

(III) A physical change or change in the method of operation shall not 

include: 

I Routine maintenance, repair, and replacement; 

II Use of an alternative fuel or raw material by reason of any 

order under section 2(a) and (b) of the Energy Supply and 

Environmental Coordination Act of 1974 (or any superseding 

legislation) or by reason of a natural gas curtailment plan 

pursuant to the federal power act; 

III Use of an alternative fuel by reason of an order or Rule under 

Section 125 of the Clean Air Act Amendments, August 7, 

1977; 

IV Use of an alternative fuel at a steam generating unit (burning 

equipment of 250 million BTU’s per hour or larger) to the 

extent that the fuel is generated from municipal solid waste as 

determined by the Tennessee Division of Solid Waste 

Management. 

V Use of an alternative fuel or raw material by a stationary 

source which the source was capable of accommodating 

before December 12, 1976, unless such change would be 

prohibited under a legally enforceable permit condition which 

was established after December 12, 1976, pursuant to 40 CFR 

Part 52.21 (July 1, 1993), or under regulations approved 

pursuant to 40 CFR Part 51 Subpart I or 51.166 (July 1, 1993), 

or the source is approved to use under any permit issued 

pursuant to this paragraph; 

VI An increase in the hours of operation or in the production rate, 

unless such change would be prohibited under a legally 

enforceable permit condition which was established after 

December 21, 1976, pursuant to 40 CFR Part 52.21 (July 1, 

1993) or regulations approved pursuant to 40 CFR Part 51 

Subpart I or 40 CFR Part 51.166 (July 1, 1993). 

VII Any change in ownership at a stationary source. 
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VIII Reserved. 

IX. The installation, operation, cessation, or removal of a temporary 

clean coal technology demonstration project, provided that the 

project complies with: 

 

A. The State Implementation Plan for the State in which the 

project is located, and 

 B. Other requirements necessary to attain and maintain the 

national ambient air quality standards during the project 

and after it is terminated. 

(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 part 10 of this 

subparagraph for a PAL for that pollutant. Instead, the definition 

at item 10.(ii)(VIII) of this subparagraph shall apply. 

(V) Any physical change in, or change in the method of operation of, 

a major stationary source of volatile organic compounds that 

results in any increase in emissions of volatile organic 

compounds from any discrete operation, emissions unit, or other 

pollutant emitting activity at the source shall be considered a 

significant net emissions increase and a major modification for 

ozone, if the major stationary source is located in an extreme 

ozone non-attainment area that is subject to subpart 2, part D, 

title I of the Clean Air Act. 

(VI) Any physical change in, or change in the method of operation of, 

a major stationary source of nitrogen oxides that results in any 

increase in emissions of nitrogen oxides from any discrete 

operation, emissions unit, or other pollutant emitting activity at 

the source shall be considered a significant net emissions 

increase and a major modification for ozone, if the major 

stationary source is located in an extreme ozone non-attainment 

area that is subject to subpart 2, part D, title I of the Clean Air 

Act. 

(vi) Net emission increases 

(I) “Net emissions increase” means, with respect to any regulated NSR 

pollutant emitted by a major stationary source, the amount by which 

the sum of the following exceeds zero: 

I The increase in emissions from a particular physical change or 

change in the method of operation at a stationary source as 

calculated pursuant to sub-parts 2.(xii) through (xvii) of this 

subparagraph; and 

II Any other increases and decreases in actual emissions at the 

major stationary source that are contemporaneous with the 

particular change and are otherwise creditable. Baseline actual 

emissions for calculating increases and decreases under this 

sub-item II shall be determined as provided in sub-part 1.(xlvii) 
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November, 2011 (Revised) 59

of this subparagraph, except that sub-items 1.(xlvii)(I)III and IV 

of this subparagraph shall not apply. 

(II) An increase or decrease in the 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. 

(III) An increase or decrease in actual emissions is creditable only if; 

I It occurs within a reasonable period to be specified by the 

Technical Secretary; and 

II The Technical Secretary has not relied on it in issuing a permit 

for the source under regulations approved pursuant to 40 CFR 

Part 51 Subpart I, which permit is in effect when the increase 

in actual emissions from the particular change occurs; and 

III Reserved. 

(IV) An increase in actual emissions is creditable only to the extent that 

the new level of actual emissions exceeds the old level. 

(V) A decrease in actual emissions is creditable only to the extent that: 

I The old level of actual emission or the old level of allowable 

emissions which ever is the lower, exceeds the new level of 

actual emissions; and 

II It is enforceable as a practical matter at and after the time that 

actual construction on the particular change begins; and 

III The Technical Secretary has not relied on it in issuing any 

permit under regulation approved pursuant to 40 CFR Part 51 

Subpart I or the Technical Secretary has not relied on it in 

demonstrating attainment or reasonable further progress; and 

IV It has approximately the same qualitative significance for 

public health and welfare as that attributed to the increase 

from the particular change; and. 

V Reserved. 

(VI) An increase that results from a physical change at a stationary 

source occurs when the emissions unit on which construction 

occurred becomes operational and begins to emit a particular air 

contaminant. Any replacement unit that requires shakedown 

becomes operational only after a reasonable shakedown period as 

determined by the Technical Secretary, not to exceed 180 days. 

(VII) Item 1.(xiii)(I) of this subparagraph shall not apply for determining 

creditable increases and decreases or after a change. 

(vii) “Emissions unit” means any part of a stationary source that emits or would 

have the potential to emit any regulated NSR pollutant. This definition 

includes an electric steam generating unit as defined in sub-part 1.(lvi) of 

this subparagraph. For purposes of this section, there are two types of 
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emissions units as described in items 1.(vii)(I) and (II) of this 

subparagraph. 

(I) A new emissions unit is any emissions unit which is (or will be) newly 

constructed and which has existed for less than 2 years from the 

date such emissions unit first operated. 

(II) An existing emissions unit is any emissions unit that does not meet 

the requirements in item 1.(vii)(I) of this subparagraph. A 

replacement unit, as defined in sub-part 1.(xxxvi) of this 

subparagraph, is an existing emissions unit.- 

(viii) “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 rule, secondary emissions 

must be specific, well defined, quantifiable, and impact the same general 

area as the stationary source or modification which causes the secondary 

emissions. Secondary emissions include, emissions from any off-site 

support facility which would not otherwise be constructed or increase its 

emissions except as a result of the construction or operation of the major 

stationary source of 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, or from a 

vessel. 

(ix) “Fugitive emissions” means those emissions which could not reasonably 

pass through a stack, chimney, vent or other functionally equivalent 

opening. 

(x) “Significant” means, in reference to a net emissions increase or the 

potential of a source to emit any of the following air contaminants, a rate of 

emissions that would equal or exceed any of the following rates: 

(I) Air Contaminant and Emissions Rate 

I Carbon monoxide: 100 tons per year (tpy) 

II Nitrogen Oxides: 40 tpy 

III Sulfur dioxide: 40 tpy 

IV Ozone: 40 tpy of an ozone precursor 

V Lead: 0.6 tpy 

VI PM10: 15 tpy 

VII. PM2.5: 10 tpy of direct PM2.5 emissions; 40 tpy of sulfur dioxide 

emissions; 40 tpy of nitrogen oxide emissions unless 

demonstrated not to be a PM2.5 precursor under subitem 

1(xlix)(III)III of this subparagraph. 

(II) Notwithstanding the significant emissions rate for ozone in item (I) of 

this subpart, significant means, in reference to an emissions increase 

or a net emissions increase, any increase in actual emissions of 
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either volatile organic compounds or nitrogen oxides that would 

result from any physical change in, or change in the method of 

operation of, a major stationary source located in a serious or severe 

ozone non-attainment area that is subject to subpart 2, part D, title I 

of the Clean Air Act, if such emissions increase of either volatile 

organic compounds or nitrogen oxides exceeds 25 tons per year. 

(III) Reserved 

(IV) Notwithstanding the significant emissions rate for carbon monoxide 

under item (I) of this subpart, significant means, in reference to an 

emissions increase or a net emissions increase, any increase in 

actual emissions of carbon monoxide that would result from any 

physical change in, or change in the method of operation of, a major 

stationary source in a serious non-attainment area for carbon 

monoxide if such increase equals or exceeds 50 tons per year, 

provided the Administrator of the U.S. EPA has determined that 

stationary sources contribute significantly to carbon monoxide levels 

in that area. 

(V) Notwithstanding the significant emissions rates for ozone under 

items (I) and (II) of this subpart, any increase in actual emissions of 

either volatile organic compounds or nitrogen oxides from any 

emissions unit at a major stationary source of either volatile organic 

compounds or nitrogen oxides located in an extreme ozone nonattainment area that is subject to subpart 2, part D, title I of the Clean 

Air Act shall be considered a significant net emissions increase. 

(xi) “Allowable emissions” means the emissions rate of a stationary source 

calculated using the maximum rated capacity of the source (unless the 

source is subject to legally enforceable limits which restrict the operating 

rate, or hours of operation, or both) and the most stringent of the following: 

(I) The applicable standards set forth in: 

I The New Source Performance Standards (NSPS) or; 

II The National Emission Standards for Hazardous Air Pollutants 

(NESHAP) contained in Chapter 1200-03-11 and Chapter 

1200-03-31 or; 

III Limits established pursuant to the applicable standards under 

Division 1200-03 or; 

IV In the State Implementation Plan, emissions rates, specified as 

a legally enforceable permit condition established pursuant to 

this rule 1200-03-09-.01 including those with a future 

compliance date 

(xii) “Legally enforceable” means all limitations and conditions which are 

enforceable by the Technical Secretary and the EPA Administrator and are 

included under this Division 1200-03 and the State Implementation Plan. 

All orders issued by the Tennessee Air Pollution Control Board, operating 

permits and their respective special conditions issued in accordance with 

the Act and Regulations, and any certificate authorized by the Act or the 
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Regulations shall be taken to public hearing and made part of the State 

Implementation Plan by the Board to be legally enforceable. 

(xiii) “Actual emissions” means the actual rate of emissions of a regulated NSR 

pollutant from an emissions unit, as determined in accordance with items 

1.(xiii)(I) through (III) of this subparagraph, except that this definition shall 

not apply for calculating whether a significant emissions increase has 

occurred, or for establishing a PAL under part 10. of this subparagraph. 

Instead, sub-parts 1.(xxxix) and (xlvii) of this subparagraph shall apply for 

those purposes. 

(I) In general, actual emissions as of a particular date shall equal the 

average rate, in tons per year, at which the emissions unit actually 

emitted the air contaminant during a -consecutive 24-month period 

which precedes the particular date and which is representative of 

normal source operation. The Technical Secretary may 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. 

(II) In the absence of reliable data, the Technical Secretary may 

presume that permitted-specific allowable emissions for the 

emissions unit are equivalent to the actual emissions of the 

emissions unit. 

(III) For any emissions unit that has not begun normal operations on the 

particular date, actual emissions shall equal the potential to emit of 

the unit on that date. 

(xiv) “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 

emissions. 

(xv) “Commence Construction” 

 “Commence construction” as applied to a major stationary source or major 

modification means that the owner or operator has all necessary 

construction permits and either has begun, or caused to begin, a 

continuous program of actual on-site construction of the stationary source, 

to be completed within a reasonable time; or entered into binding 

agreements or contractual obligations, which cannot be canceled or 

modified without substantial loss to the owner or operator, to undertake a 

program of actual construction of the stationary source to be completed 

within a reasonable time. 

(xvi) “Necessary Preconstruction permits” means those permits required under 

the Federal air quality control laws and regulations which are part of the 

approved SIP under Division 1200-03. 

(xvii) “Begin actual construction” means, in general, initiation of physical on-site 

construction activities on an emissions unit which are of a permanent 

nature. Such activities include, but are not limited to, installation of building 

supports and foundations, laying of underground pipe work, and 
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construction of permanent storage structures. With respect to a change in 

method of operation this term refers to those on-site activities, other than 

preparatory activities, which mark the initiation of the change. 

(xviii) “Lowest achievable emission rate” (LAER) means, for any source, the 

more stringent rate of emissions based on the following: 

(I) The most stringent emissions limitation which is contained in the 

applicable standards under this Division 1200-03, or in any State 

Implementation Plan for such class or category of stationary source, 

unless the owner or operator of the proposed source demonstrates 

that such limitations are not achievable; or 

(II) 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 the stationary 

source. In no event shall the application of this term permit a 

proposed new or modified stationary source to emit any pollutant in 

excess of the amount allowable under applicable New Source 

Standards of Performance. 

(xix) “Significantly impact” means the contribution by a new stationary source or 

modification to the air quality in a nonattainment area in concentrations 

equal to or greater than the amount as follows: 

AVERAGING TIME AND APPLICABLE CONCENTRATION

Pollutant Annual 24 Hour 3 Hour 8 Hour 1 Hour. 

Sulfur 

 Dioxide 1 μg/m3 5 μg/m3 25 μg/m3 

 

PM10 1 μg/m3 5 μg/m3

 

Carbon 

 Monoxide 500 μg/m3 2000 

μg/m3

 

Nitrogen 

 Oxide 1 μg/m3

 

(xx) “Minor stationary source” means any source which is not a major stationary 

source 

(xxi) “Minor modification” means 

(I) Any modification which is not a major modification; or 
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(II) Any modification which is a physical change in or a change in the 

method of operation of a minor stationary source provided the 

change would not constitute a major stationary source by itself. 

(xxii) “Reasonable stack heights” means a stack height which will minimize air 

quality impact, not to exceed the Tennessee ambient air quality standards 

in any case. The Technical Secretary shall on a case-by-case basis, taking 

into account the existing air quality in the area and the economic costs to 

the stationary source, determine the achievable stack height to be used by 

the stationary source or modification. In no circumstance shall the stack 

height be less than 20 feet above ground level, or be required to exceed 

stack height procedure. Stacks not emitting the nonattainment pollutants 

are not required to meet the minimum stack height requirement. Stationary 

sources which emit volatile organic compounds and nitrogen oxide and are 

located in ozone nonattainment areas will not be required to meet the 

minimum stack height requirement. 

(xxiii) “Reasonable Further Progress” (RFP) means such annual incremental 

reductions in emissions of the relevant air pollutant as are required by this 

part or may reasonably be required by the Technical Secretary or the EPA 

Administrator for the purpose of ensuring attainment of the applicable 

ambient air quality standard by the applicable date. 

(xxiv) “Reasonable available control technology” (RACT) means devices, 

systems, process modifications, or other apparatus or techniques that are 

reasonably available taking into account: 

(I) The necessity of imposing such controls in order to attain and 

maintain an ambient air quality standard, 

(II) The social, environmental and economic impact of such controls, 

and 

(III) Alternative means of providing for attainment and maintenance of 

such standard. 

(xxv) “Compliance schedule” means a chronology of actions to be taken by a 

noncomplying source to bring it into full compliance with Division 1200-03 

or permits issued thereto. Generally speaking, compliance schedule 

increments will be divided into (1) engineering evaluation for problem 

solution, (2) procurement of the equipment and/or services necessary to 

solve the problem, (3) on-site delivery of the equipment, (4) completion of 

the equipment’s installation including startup of said equipment and (5) 

source testing to establish the air contaminant emission levels of the 

completed installation if required by the Technical Secretary. 

(xxvi) “Air contaminant” is particulate matter, dust, fumes, gas, mist, smoke, or 

vapor, or any combinations thereof, total suspended particulates, PM10, 

sulfur dioxide, carbon monoxide, ozone, nitrogen oxides, lead, and 

gaseous fluorides expressed as HF. 

(xxvii) “Good Engineering Practice” (GEP) 

 (GEP) Stack height means the greater of: 
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(I) 65 meters, measured from the ground-level elevation at the base of 

the stack or, 

(II) I For a stack in existence on January 12, 1979, and for which 

the owner or operator had obtained all applicable permits or 

approvals required under 40 CFR part 51 and 52 (July 1, 

1993) 

Hg = 2.5 H, 

provided the owner or operator produces evidence that this 

equation was actually relied on in establishing an emission 

limitation; 

II For all other stacks, 

Hg = H + 1.5L 

where 

Hg = good engineering practice stack height, measured 

from the ground-level elevation at the base of the stack. This 

is the height at which structural downwash no longer 

influences computer modeled ambient impacts. 

H = height of nearby structure(s) measured from the 

ground-level elevation at the base of the stack. 

L = lesser dimension, height or projected width, of nearby 

structure(s) 

provided that the Technical Secretary may require the use of a 

field study or fluid model to verify GEP stack height for the 

source; or 

(III) The height demonstrated by a fluid model or a field study approved 

by the Technical Secretary, which ensures that the emissions from a 

stack do not result in excessive concentrations of any air pollutant as 

a result of atmospheric downwash, wakes, or eddy effects created 

by the source itself, nearby structures or nearby terrain features. 

(xxviii) “Nonattainment Area” means any area that does not meet (or that 

contributes to ambient air quality in a nearby area that does not meet) any 

ambient air quality standard for the pollutant. As used in this chapter 

“nonattainment area” includes all the areas as defined by 1200-03-02-

.01(1)(ffff) plus any areas determined as not meeting any ambient air 

quality standards as a result of required monitoring as part of a 

construction permit application. The demonstration required under section 

165(a)(3) of the 1990 Clean Air Act, shall not apply to maximum allowable 

increases for Class II areas in the case of an expansion or modification of 

a major emitting facility which was in existence on the date of enactment of 

the Clean Air Act, Amendments of 1977, and whose allowable emissions of 

air pollutants is established as required in sub section 165(a)(4) of the 

1990 Clean Air Act. 

(xxix) (Reserved) 
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(xxx) “Volatile Organic Compounds” and “exempt compounds” have the same 

meaning as defined in Division 1200-3-18-.01 Definitions. 

(xxxi) “Ambient Air Quality Standard” (AAQS) means any Primary Ambient Air 

Quality Standard or Secondary Ambient Air Quality Standard or Tennessee 

Ambient Air Quality Standard as defined in Chapter 1200-03-03. 

(xxxii) “Class I, Class II, or Class III” areas means areas of the state as defined by 

Division 1200-03-09-.01(4)(g). 

(xxxiii) “Ozone precursor” means volatile organic compounds and/or nitrogen 

oxides. A proposed new source or a net emissions increase at an existing 

source in an ozone transport region (or an ozone nonattainment area) can 

be classified as major based on either VOC or NOx emissions or both (but 

not in combination). That is, the determination of major must be made 

individually for each pollutant, since VOC and NOx emissions cannot be 

added to meet the minimum level required for such a demonstration. 

(I) Notwithstanding sub-part (xxxiii) of this part, NOx shall not be 

considered an ozone precursor when: 

I Additional NOx emissions reductions would not be expected to 

decrease ozone; 

II The Administrator of EPA determines, for certain classes or 

categories of sources (when the Administrator approves the 

Tennessee State Implementation Plan or Plan revision), that 

net air quality benefits would be greater in the absence of 

further nitrogen oxides reductions from sources concerned; 

and 

III. The Administrator of the U.S. EPA has granted a NOX waiver 

applying the standards set forth under section 182(f) of the 

Clean Air Act and the waiver continues to apply. 

(xxxiv) “Stack height procedures” means those procedures that must provide that 

the degree of emission limitation required of any source for control of any 

air pollutant must not be affected by so much of any source’s stack height 

that exceed good engineering practice or by any other dispersion 

technique, except as provided in 40 CFR Part 51.118(b) (July 1, 1993). 

Such procedures must provide that before the Technical Secretary issues 

a permit to a source based on a good engineering practice stack height 

that exceeds the height allowed by 40 CFR Part 51.100(ii) (1) or (2)(July 1, 

1993), the Technical Secretary must notify the public of the availability of 

the demonstration study and must provide opportunity for public hearing on 

it. This subpart does not require such procedures to restrict in any manner 

the actual stack height of any source. 

(xxxv) “Portable Stationary Source” means any source that is mounted on any 

chassis or skids and may be moved by the application of a lifting or pulling 

force. In addition, there shall be no cable, chain, turnbuckle, bolt or other 

means (except electrical connections) by which any piece of equipment is 

attached or clamped to any anchor, slab, or structure, including bedrock 

that must be removed prior to the application of a lifting or pulling force for 

the purpose of transporting the unit, except that such connection as 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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deemed appropriate by the Technical Secretary may be exempted for 

safety considerations from the specified restrictions on a qualifying source. 

(xxxvi) Replacement unit means an emissions unit for which all the criteria listed in 

items 1.(xxxvi)(I) through (IV) of this subparagraph are met. No creditable 

emission reductions shall be generated from shutting down the existing 

emissions unit that is replaced. 

(I) The emissions unit is a reconstructed unit within the meaning of part 

(4)(b)54. of this rule, 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. 

(xxxvii) Reserved. 

(xxxviii) “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. 

(xxxix) “Significant emissions increase” means, for a regulated NSR pollutant, an 

increase in emissions that is significant (as defined in sub-part 1.(x) of this 

subparagraph) for that pollutant. 

(xl) “Projected actual emissions” means, the maximum annual rate, in tons per 

year, at which an existing emissions unit is projected to emit a regulated 

NSR pollutant in any one of the 5 years (12-month period) following the 

date the unit resumes regular operation after the project, or in any one of 

the 10 years following that date, if the project involves increasing the 

emissions unit’s design capacity or its potential to emit of that regulated 

NSR pollutant and full utilization of the unit would result in a significant 

emissions increase or a significant net emissions increase at the major 

stationary source. 

(I) In determining the projected actual emissions under sub-part 1.(xl) of 

this subparagraph before beginning actual construction, the owner or 

operator of the major stationary source: 

I Shall consider all relevant information, including but not limited 

to, historical operational data, the company’s own 

representations, the company’s expected business activity and 

the company’s highest projections of business activity, the 
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company’s filings with the State or Federal regulatory 

authorities, and compliance plans under the approved plan; 

and 

II Shall include fugitive emissions to the extent quantifiable, and 

emissions associated with startups, shutdowns, and 

malfunctions; and 

III Shall exclude, in calculating any increase in emissions that 

results from the particular project, that portion of the unit’s 

emissions following the project that an existing unit could have 

accommodated during the consecutive 24-month period used 

to establish the baseline actual emissions under sub-part 

1.(xlvii) of this subparagraph and that are also unrelated to the 

particular project, including any increased utilization due to 

product demand growth; or, 

(II) In lieu of using the method set out in sub-items 1.(xl)(I)I through III of 

this subparagraph, may elect to use the emissions unit’s potential to 

emit, in tons per year, as defined under sub-part 1.(iii) of this 

subparagraph. 

(xli) Reserved. 

(xlii) “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 SIP to implement the requirements 

of this subparagraph, 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. 

(xliii) “Continuous emissions monitoring system” (CEMS) means all of the 

equipment that may be required to meet the data acquisition and 

availability requirements of this section, to sample, condition (if applicable), 

analyze, and provide a record of emissions on a continuous basis. 

(xliv) “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. 

(xlv) “Continuous parameter monitoring system” (CPMS) means all of the 

equipment necessary to meet the data acquisition and availability 

requirements of this section, to monitor process and control device 

operational parameters (for example, control device secondary voltages 

and electric currents) and other information (for example, gas flow rate, O2

or CO2 concentrations), and to record average operational parameter 

value(s) on a continuous basis. 

(xlvi) “Continuous emissions rate monitoring system” (CERMS) means the total 

equipment required for the determination and recording of the pollutant 

mass emissions rate (in terms of mass per unit of time). 
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(xlvii) “Baseline actual emissions” means the rate of emissions, in tons per year, 

of a regulated NSR pollutant, as determined in accordance with items 

1.(xlvii)(I) through (IV) of this subparagraph. 

(I) For any existing electric utility steam generating unit, baseline actual 

emissions means the average rate, in tons per year, at which the unit 

actually emitted the pollutant during any consecutive 24-month 

period selected by the owner or operator within the 5-year period 

immediately preceding when the owner or operator begins actual 

construction of the project. The Technical Secretary shall allow the 

use of a different time period upon a determination that it is more 

representative of normal source operation. 

I The average rate shall include fugitive emissions to the extent 

quantifiable, and emissions associated with startups, 

shutdowns, and malfunctions. 

II The average rate shall be adjusted downward to exclude any 

non-compliant emissions that occurred while the source was 

operating above any emission limitation that was legally 

enforceable during the consecutive 24-month period. 

III. For a regulated NSR pollutant, when a project involves 

multiple emissions units, one consecutive 24-month period 

must be used to determine the baseline actual emissions for 

the emissions units being changed. However, the Technical 

Secretary is authorized to allow the use of multiple, pollutant 

specific consecutive 24-month baselines in determining the 

magnitude of a significant net emissions increase and the 

applicability of major new source review requirements if all of 

the following conditions are met: 

A. Construction of a new source or modification would 

become subject to major new source review if a single 

2-year baseline is used for all pollutants. 

B. One or more pollutants were emitted during such 2-

year period in amounts that were less than otherwise 

permitted for reasons other than operations at a lower 

production or utilization rate. Qualifying examples 

include, but are not limited to, the voluntary use of: 

(A) a cleaner fuel than otherwise permitted in a 

fuel burning operation (e.g., natural gas 

instead of coal in a multi-fuel boiler), 

(B) a coating with a lower VOC content than 

otherwise permitted in a coating operation, 

(C) a voluntary improvement in the control 

efficiency of an air pollution control device or 

the voluntary addition of a control device 

where one did not exist before, and 

(D) alternate production methods, raw materials, 

or products that result in lower emissions of 
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one or more pollutants. 

C. Use of alternate 2-year baselines for the pollutants 

described in Subitem II above would result in the 

construction of the new source or modification not being 

subject to major new source review. 

D. The use of the multiple baselines is not prohibited by any 

applicable provision of the USEPA’s new source review 

regulations. 

The burden for demonstrating that these conditions are met is 

upon the permit applicant. The demonstration and the 

Technical Secretary’s approval will be made a part of the 

permit record. 

IV The average rate shall not be based on any consecutive 24-

month period for which there is inadequate information for 

determining annual emissions, in tons per year, and for 

adjusting this amount if required by sub-item 1.(xlvii)(I)II of this 

subparagraph. 

(II) For an existing emissions unit (other than an electric utility steam 

generating unit), baseline actual emissions means the average rate, 

in tons per year, at which the emissions unit actually emitted the 

pollutant during any consecutive 24-month period selected by the 

owner or operator within the 10-year period immediately preceding 

either the date the owner or operator begins actual construction of 

the project, or the date a complete permit application is received by 

the Technical Secretary for a permit required either under this 

subparagraph or under a plan approved by the Administrator, 

whichever is earlier, except that the 10-year period shall not include 

any period earlier than November 15, 1990. 

I The average rate shall include fugitive emissions to the extent 

quantifiable, and emissions associated with startups, 

shutdowns, and malfunctions. 

II The average rate shall be adjusted downward to exclude any 

non-compliant emissions that occurred while the source was 

operating above an emission limitation that was legally 

enforceable during the consecutive 24-month period. 

III The average rate shall be adjusted downward to exclude any 

emissions that would have exceeded an emission limitation 

with which the major stationary source must currently comply, 

had such major stationary source been required to comply with 

such limitations during the consecutive 24-month period. 

However, if an emission limitation is part of a maximum 

achievable control technology standard that the Administrator 

proposed or promulgated under 40 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 item 2.(v)(VII) of this subparagraph. 
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IV. For a regulated NSR pollutant, when a project involves 

multiple emissions units, one consecutive 24-month period 

must be used to determine the baseline actual emissions for 

the emissions units being changed. However, the Technical 

Secretary is authorized to allow the use of multiple, pollutant 

specific consecutive 24-month baselines in determining the 

magnitude of a significant net emissions increase and the 

applicability of major new source review requirements if all of 

the following conditions are met: 

A. Construction of a new source or modification would 

become subject to major new source review if a single 

2-year baseline is used for all pollutants. 

B. One or more pollutants were emitted during such 2-

year period in amounts that were less than otherwise 

permitted for reasons other than operations at a lower 

production or utilization rate. Qualifying examples 

include, but are not limited to, the voluntary use of: 

(A) a cleaner fuel than otherwise permitted in a 

fuel burning operation (e.g., natural gas 

instead of coal in a multi-fuel boiler), 

(B) a coating with a lower VOC content than 

otherwise permitted in a coating operation, 

(C) A voluntary improvement in the control 

efficiency of an air pollution control device or 

the voluntary addition of a control device 

where one did not exist before, and 

(D) alternate production methods, raw materials, 

or products that result in lower emissions of 

one or more pollutants. 

C. Use of alternate 2-year baselines for the pollutants 

described in section B above would result in the 

construction of the new source or modification not being 

subject to major new source review. 

D. The use of the multiple baselines is not prohibited by any 

applicable provision of the USEPA’s new source review 

regulations. 

The burden for demonstrating that these conditions are met is upon 

the permit applicant. The demonstration and the Technical 

Secretary’s approval will be made a part of the permit record. 

V The average rate shall not be based on any consecutive 24-

month period for which there is inadequate information for 

determining annual emissions, in tons per year, and for 

adjusting this amount if required by sub-items 1.(xlvii)(II)II and 

III of this subparagraph. 
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(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 major stationary source, the baseline actual 

emissions shall be calculated for existing electric utility steam 

generating units in accordance with the procedures contained in item 

1.(xlvii)(I) of this subparagraph, for other existing emissions units in 

accordance with the procedures contained in item 1.(xlvii)(II) of this 

subparagraph, and for a new emissions unit in accordance with the 

procedures contained in item 1.(xlvii)(III) of this subparagraph. 

(xlviii) Reserved 

(xlix) “Regulated NSR pollutant,” for purposes of this subparagraph, means the 

following: 

(I) Nitrogen oxides or any volatile organic compounds; 

(II) Any pollutant for which a national ambient air quality standard has 

been promulgated; or 

(III) Any pollutant that is a constituent or precursor of a general pollutant 

listed under items 1(xlix)(I) or (II) of this subparagraph, provided that 

a constituent or precursor pollutant may only be regulated under 

NSR as part of regulation of the general pollutant. Precursors for 

purposes of NSR are the following: 

I. Volatile organic compounds and nitrogen oxides are 

precursors to ozone in all ozone nonattainment areas. 

II. Sulfur dioxide is a precursor to PM2.5 in all PM2.5 nonattainment 

areas. 

III. Nitrogen oxides are presumed to be precursors to PM2.5 in all 

PM2.5 nonattainment areas, unless the State demonstrates to 

the satisfaction of the EPA Administrator or EPA demonstrates 

that emissions of nitrogen oxides from sources in a specific 

area are not a significant contributor to that area’s ambient 

PM2.5 concentrations. 

IV. Volatile organic compounds and ammonia are presumed not to 

be precursors to PM2.5 in any PM2.5 nonattainment area, 

unless the State demonstrates to the satisfaction of the EPA 

Administrator or EPA demonstrates that emissions of volatile 

organic compounds or ammonia from sources in a specific 

area are a significant contributor to that area’s ambient PM2.5

concentrations; or 

(IV) PM2.5 emissions and PM10 emissions shall include gaseous 

emissions from a source or activity which condense to form 

particulate matter at ambient temperatures. On or after January 1, 

2011, such condensable particulate matter shall be accounted for in 

applicability determinations and in establishing emissions limitations 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 73

for PM2.5 and PM10 in nonattainment major NSR permits. Compliance 

with emissions limitations for PM2.5 and PM10 issued prior to this date 

shall not shall not be based on condensable particulate matter 

unless required by the terms and conditions of the permit or the 

(Tennessee) State Implementation Plan. Applicability determinations 

made prior to this date without accounting for condensable 

particulate matter shall not be considered in violation of this rule 

unless the State Implementation Plan required condensable 

particulate matter to be included. 

(l) “Reviewing authority” means the State air pollution control agency, local 

agency, other State agency, Indian tribe, or other agency authorized by the 

Administrator to carry out a permit program under this subparagraph and 

40 CFR 51.166, or the Administrator in the case of EPA-implemented 

permit programs under 40 CFR 52.21. 

(li) “Project” means a physical change in, or change in the method of 

operation of, an existing major stationary source. 

(lii) “Best available control technology” (BACT) means an emissions limitation 

(including a visible emissions standard) based on the maximum degree of 

reduction for each regulated NSR pollutant which would be emitted from 

any proposed major stationary source or major modification which the 

Technical Secretary, on a case-by-case basis, taking into account energy, 

environmental, and economic impacts and other costs, determines is 

achievable for such source or modification through application of 

production processes or available methods, systems, and techniques, 

including fuel cleaning or treatment or innovative fuel combustion 

techniques for control of such pollutant. In no event shall application of 

best available control technology result in emissions of any pollutant which 

would exceed the emissions allowed by any applicable standard under 40 

CFR part 60 or 61. If the Technical Secretary determines that technological 

or economic limitations on the application of measurement methodology to 

a particular emissions unit would make the imposition of an emissions 

standard infeasible, a design, equipment, work practice, operational 

standard, or combination thereof, may be prescribed instead to satisfy the 

requirement for the application of BACT. Such standard shall, to the 

degree possible, set forth the emissions reduction achievable by 

implementation of such design, equipment, work practice or operation, and 

shall provide for compliance by means which achieve equivalent results. 

This definition does not apply to minor stationary sources and minor 

modifications proposing to construct in a nonattainment area. For these 

sources, the definition in subparagraph (2)(d) of this rule applies. 

(liii) “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 SIP to 

implement the requirements of 40 CFR 51.166. Any permit issued under 

such a program is a major NSR permit. 

(liv) Federal Land Manager means, with respect to any lands in the United 

States, the Secretary of the department with authority over such lands. 

(lv) Reserved 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 74

(lvi) “Electric utility steam generating unit” (EUSGU) means any steam electric 

generating unit that is constructed for the purpose of supplying more than 

one-third of its potential electric output capacity and more than 25 MW 

electrical output to any utility power distribution system for sale. Any steam 

supplied to a steam distribution system for the purpose of providing steam 

to a steam-electric generator that would produce electrical energy for sale 

is also considered in determining the electrical energy output capacity of 

the affected facility. 

(lvii) “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 Plan 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. 

(lviii) “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. 

(lix) Clean coal technology demonstration project means a project using funds 

appropriated under the heading “Department of Energy-Clean Coal 

Technology,” up to a total amount of $2,500,000,000 for commercial 

demonstration of clean coal technology, or similar projects funded through 

appropriations for the Environmental Protection Agency. The Federal 

contribution for a qualifying project shall be at least 20 percent of the total 

cost of the demonstration project. 

2. No major stationary source or major modification to which the requirements of 

this subparagraph apply shall begin actual construction without a permit that 

states that the stationary source or modifications will meet the requirements of 

this Paragraph. 

 The requirements of this subparagraph shall apply to any new stationary source 

or major modification that is major for a regulated NSR pollutant, or precursor to 

a regulated NSR pollutant as applicable, if the stationary source or modification 

would be constructed anywhere in an area designated nonattainment (as of the 

date of the permit issued in accordance with this subparagraph) for such 

pollutant pursuant to the Clean Air Act Title I Part A Section 107(d). 

 The requirements of this subparagraph shall apply to each nonattainment 

pollutant (and in some cases each precursor to the nonattainment pollutant) that 

the source will emit, or will have the potential to emit, in major amounts. In the 

case of a modification, the requirements shall apply to the significant net 

emissions increase of each nonattainment pollutant (and each precursor to the 

nonattainment pollutant, as applicable) for which the source is major. 

(i) All new stationary sources or modifications shall utilize “stack height 

procedures.” 

(ii) All minor stationary sources, and minor modifications proposing to 

construct in a nonattainment area shall utilize best available control 

technology (BACT), as defined in subparagraph (2)(d) of this rule, for the 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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nonattainment pollutant as specified by the Technical Secretary at the time 

of the completed permit application, but all major stationary sources and 

major modifications are required to install LAER in nonattainment areas for 

the nonattainment pollutant. 

(iii) Major stationary sources or major modifications shall meet the following 

criteria: 

(I) A major stationary source or major modification shall meet each 

applicable emissions limitation under the State Implementation Plan 

and each applicable requirement for sources subject to the New 

Source Performance Standards, and the National Emission 

Standards for Hazardous Air Pollutants. 

(II) A new major stationary source shall apply the lowest achievable 

emission rate for each contaminant for which the area is designated 

nonattainment that it would have the potential to emit in an amount 

sufficient to make the source or modification a major stationary 

source or modification. This provision applies to each new 

emissions unit at which emissions would occur. 

(III) A major modification shall apply the lowest achievable emission rate 

for each air contaminant for which the area is designated 

nonattainment and for which it would result in a significant net 

emissions increase at the source. This requirement applies to each 

proposed emissions unit at which a net emissions increase in the air 

contaminant would occur as the result of a physical change or 

change in the method of operation in the unit. 

(IV) For phased construction projects, the determination of lowest 

achievable emission rate 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 the 

lowest achievable emission rate. 

(V) The Technical Secretary shall, for each new major source and major 

modification, submit to the RACT/BACT/LAER Clearinghouse within 

60 days of issuance of the permit, all information on the emissions 

prevention or control technology for the new major source or major 

modification. 

(iv) Reasonable Further Progress (RFP) 

(I) Timing and exemptions: 

I By the time that the proposed source or modification is to 

commence operation, sufficient offsetting emissions reductions 

shall be in effect such that the total emissions from existing 

sources in the area, from new or modified sources which are 

not major stationary sources, and from the proposed source 

will be sufficiently less than total emissions from existing 

sources prior to the application for such permit to construct or 

modify so as to represent (when considered together with the 
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November, 2011 (Revised) 76

plan provisions required under the Clean Air Act Title I Part D 

Subpart 1 Section 172 (as amended November 15,1990) 

reasonable further progress; or 

II In the case of a new major stationary source or major 

modification which is located in a zone (within the 

nonattainment area) identified by the Administrator of EPA, in 

consultation with the Secretary of Housing and Urban 

Development, as a zone to which economic development 

should be targeted, the emissions of such air contaminant 

resulting from the proposed new or modified major stationary 

source will not cause or contribute to emissions levels which 

exceed the allowance permitted as contained in the State’s 

approved Implementation Plan pursuant to the Clean Air Act 

Title I Part D Subpart 1 Section 172(c)(4) (as amended 

November 15,1990). 

(II) For the purposes of satisfying the requirements of sub-item (iv)(I)I. of 

this sub-part, the determination of total emissions at both the time 

prior to the application for a permit subject to the requirements of this 

sub-part and the time such permitted source or modification would 

commence operation, shall be made by the Technical Secretary in a 

manner consistent with the assumptions in the applicable 

implementation plan approved by the Administrator of EPA 

concerning baseline emissions for the demonstration of reasonable 

further progress and attainment of the ambient air quality standards 

for the particular air contaminant subject to review under this subpart. 

(v) Emissions Offsets. In meeting the emission offset requirements of this 

paragraph, the ratio of total actual emissions reductions to the emissions 

increase shall be at least 1:1 unless an alternative ratio is provided for the 

applicable nonattainment area in items (III), (IV) and (XIV) of this subpart. 

(I) Prior to the issuance of a permit under this subpart, legally 

enforceable emission offsets shall be obtained from the same source 

or other sources in the same non-attainment area, except that such 

emissions reduction may be obtained from a source in another nonattainment area if: 

I. The other area has an equal or higher non-attainment 

classification than the area in which the source is located; and, 

II. Emissions from such other area contribute to a violation of an 

air quality standard in the non-attainment area in which the 

proposed new or modified source would construct. 

(II) By the time that the new or modified source commences operation, 

such reductions shall be in place such that the total tonnage of 

emissions of any applicable non-attainment air contaminant allowed 

from the proposed new source, or net emissions increase from the 

modification, shall be offset by an equal or greater reduction, as 

applicable, in the actual emissions of such air contaminant from the 

same or other sources. 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 77

(III) In meeting the requirements of item (v)(II) of the subpart for ozone 

non-attainment areas that are subject to subpart 2, part D, title I of 

the Clean Air Act, the ratio of total actual emission reductions of 

Volatile Organic Compounds and/or Nitrogen Oxides to the net 

emissions increase of Volatile Organic Compounds and/or Nitrogen 

Oxides shall be as follows: 

I. In any Marginal non-attainment area for ozone - at least 1.1 to 

1; 

II. In any Moderate non-attainment area for ozone - at least 1.15 

to 1; 

III. In any Serious non-attainment area for ozone - at least 1.2 to 

1; 

IV. In any Severe non-attainment area for ozone - at least 1.3 to 1; 

V. In any Extreme non-attainment area for ozone - at least 1.5 to 

1. 

(IV) Within an ozone transport region that is subject to subpart 2, part D, 

title I of the Clean Air Act, for any area designated for ozone 

attainment, unclassified, or Marginal non-attainment, the ratio of total 

actual emission reductions of Volatile Organic Compounds and/or 

Nitrogen Oxides to net emissions increase of Volatile Organic 

Compounds and/or Nitrogen Oxides shall be at least 1.15 to 1. 

(V) I. Emissions reductions achieved by shutting down an existing 

emission unit or curtailing production or operating hours may 

be generally credited for offsets if they meet the requirements 

in sections IA and B of this item. 

A. Such reductions are surplus, permanent, quantifiable, 

and federally enforceable. 

B. The shutdown or curtailment occurred after the last day 

of the base year for the SIP planning process. For 

purposes of this paragraph, the Technical Secretary may 

choose to consider a prior shutdown or curtailment to 

have occurred after the last day of the base year if the 

projected emissions inventory used to develop the 

attainment demonstration explicitly includes the 

emissions from such previously shutdown or curtailed 

emission units. However, in no event may credit be 

given for shutdowns that occurred before August 7, 

1977. 

II. Emissions reductions achieved by shutting down an existing 

emissions unit or curtailing production or operating hours and 

that do not meet the requirements in section IB of this item 

may be generally credited only if: 

A. The shutdown or curtailment occurred on or after the 

date the construction permit application is filed; or 
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November, 2011 (Revised) 78

B. The applicant can establish that the proposed new 

emissions unit is a replacement for the shutdown or 

curtailed emissions unit, and the emissions reductions 

achieved by the shutdown or curtailment met the 

requirements of section IA of this item. 

(VI) With respect to a proposed increase in VOC emissions, no 

emissions credit shall be allowed for reductions in any organic 

compound specifically excluded from the definitions of “VOC” in this 

Division 1200-03. 

(VII) Credit for an emissions reduction may be claimed to the extent that 

the reduction has not been relied on in any permit already issued 

under regulations approved pursuant to 40 CFR Parts 51, 52, and 

70, (July 1, 1993) or the State has not relied on it in demonstrating 

attainment or reasonable further progress. Incidental emissions 

reductions which are not otherwise required under the federal Clean 

Air Act (As amended November 15, 1990) may be credible as 

emissions reductions for such purposes if such emissions reductions 

meet the applicable requirements of this part. 

(VIII) Procedures relating to the permissible locations of offsetting 

emissions shall be followed which are at least as stringent as those 

set out in 40 CFR Part 51, Appendix S, Section IV.D. (July 1, 1993 ). 

(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 Federal Clean Air Act shall be determined by 

summing the difference between the allowable emissions after the 

modification (as defined by subpart 1(xi) of this subparagraph) and 

the actual emissions before the modification (as defined in subpart 

1(xiii) of this subparagraph) for each emissions unit. 

(XII) Where the emissions limit under this division 1200-03 allows greater 

emissions than the potential to emit of the source, emissions offset 

credit will be allowed only for control below this potential. 

(XIII) For an existing fuel combustion source, credit shall be based on the 

allowable emissions under this division 1200-03 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. The Technical Secretary shall ensure that adequate long-term 

supplies of the new fuel are available before granting emissions 

offset credit for fuel switches. 

(XIV) Within an ozone non-attainment area that is subject to subpart 1, 

part D, title I of the Clean Air Act (but is not subject to subpart 2, part 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 79

D, title I of the Act, including 8-hour ozone non-attainment areas 

subject to 40 CFR 51.902(b)), the ratio of total actual emissions 

reductions of either volatile organic compound or nitrogen oxides to 

the emissions increase of either volatile organic compounds or 

nitrogen oxides shall be at least 1:1. 

(XV) In meeting the emissions offset requirements of this subpart for fine 

particulate matter (PM2.5), the emissions offsets obtained shall be for 

the same regulated NSR pollutant unless interprecursor trading is 

allowed in the approved State Implementation Plan (SIP) for the 

affected PM2.5 nonattainment area. For those nonattainment areas in 

which interprecursor trading is allowed by the approved SIP, the 

offset requirements for direct PM2.5 emissions or emissions of 

precursors of PM2.5 may be satisfied by offsetting reductions in direct 

PM2.5 emissions or emissions of any PM2.5 precursor identified under 

item (b)1(xlix)(III) of this paragraph if such offsets comply with the 

interprecursor trading hierarchy and ratio established in the 

approved SIP for the affected nonattainment area. 

(vi) In a nonattainment area, prior to the issuance of a permit to a new major 

stationary source or major modification an analysis of alternate sites, sizes, 

production processes, and environmental control techniques for the 

proposed source shall be made. A permit shall only be issued if the 

benefits of the proposed source significantly outweigh the environmental 

and social costs imposed on the public as a result of the sources location, 

construction, or modification in the nonattainment area. The Technical 

Secretary shall require the submittal of such information as he deems 

necessary for this analysis. 

(vii) The Technical Secretary shall not issue a permit to any major stationary 

source or major modification locating in or significantly impacting a 

nonattainment area unless all other sources owned or operated by the 

applicant (or any entity controlling, controlled by, or under common control 

with the applicant) anywhere in the State are in compliance or on an 

approved compliance schedule. 

(viii) If the nonattainment area is designated as attainment by the EPA 

Administrator between the date construction is approved under this 

subparagraph and before the new source start up date, the source has the 

option of applying for a new construction permit and relief from the 

requirements of this subparagraph. 

(I) Any permit issued under this part shall remain in effect, unless it 

expires under subpart (xi) of this part or is rescinded. 

(II) The Technical Secretary shall grant an application for rescission if 

the application shows that this part would not apply to the source or 

modification. 

(III) If the Technical Secretary rescinds a permit under this subparagraph, the public shall be given adequate notice of the 

rescission. Publication by the Technical Secretary 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. 
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(ix) 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 “legally 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 

of Subparagraph 1200-03-09-.01(5)(b) shall apply to the source or 

modification as though construction had not yet commenced on the source 

or modification. 

(x) 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. 

(xi) Approval to construct shall become invalid if construction is not 

commenced within 18 months after issuance of an approved construction 

permit, if construction is discontinued for a period of 18 months or more, or 

if construction is not completed within 18 months of the completion date 

specified on the construction permit application unless an extension has 

been granted from the Tennessee Air Pollution Control Board. Also, each 

phase of a phased construction project must meet the requirements stated 

above. An extension of time for a phased construction project may be 

requested for each phase or for the whole project. The above requirements 

do not apply to the time period between the construction of the approved 

phases of a phased construction project. The Tennessee Air Pollution 

Control Board may issue a variance granting an extension to complete 

construction of a source provided adequate justification is presented. Each 

extension shall not exceed 12 months in time. 

(xii) Except as otherwise provided in sub-parts 2.(xviii) and 2.(xix) of this 

subparagraph, and consistent with the definition of major modification 

contained in item 1.(v)(I) of this subparagraph, a project is a major 

modification for a regulated NSR pollutant if it causes two types of 

emissions increases—a significant emissions increase (as defined in subpart 1.(xxxix) of this subparagraph), and a significant net emissions 

increase (as defined in sub-parts 1.(vi) and 1.(x) of this subparagraph). The 

project is not a major modification if it does not cause a significant 

emissions increase. If the project causes a significant emissions increase, 

then the project is a major modification only if it also results in a significant 

net emissions increase. 

(xiii) 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 sub-parts 2.(xiv) and 2.(xvii) of this subparagraph. 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 subpart 1.(vi) of this subparagraph. Regardless of any such preconstruction 

projections, a major modification results if the project causes a significant 

emissions increase and a significant net emissions increase. 

(xiv) 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 sub-part 1.(xl) of this 

subparagraph) and the baseline actual emissions (as defined in items 
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November, 2011 (Revised) 81

1.(xlvii)(I) and (II) of this subparagraph, as applicable), for each existing 

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

(as defined in sub-part 1.(x) of this subparagraph). 

(xv) 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 sub-part 1.(iii) of this subparagraph) from 

each new emissions unit following completion of the project and the 

baseline actual emissions (as defined in item 1.(xlvii)(III) of this 

subparagraph) of these units before the project equals or exceeds the 

significant amount for that pollutant (as defined in sub-part 1.(x) of this 

subparagraph). 

(xvi) Reserved. 

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

significant emissions increase of a regulated NSR pollutant is projected to 

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

the method specified in subparts 2(xiv) through (xv) of this subparagraph 

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 subpart 1(x) of this subparagraph). 

(xviii) Any major stationary source with a PAL for a regulated NSR pollutant shall 

comply with the requirements under part 10. of this subparagraph. 

(xix) Reserved. 

3. Public Participation 

(i) The Technical Secretary shall provide opportunity for public comment on 

information submitted by owners and operators. The public information 

must include the agency’s analysis of the effect of construction or 

modification on ambient air quality, including the agency’s proposed 

approval or disapproval. The opportunity for public comment shall include, 

as a minimum - 

(I) Availability for public inspection in at least one location in the area 

affected of the information submitted by the owner or operator and of 

the Technical Secretary’s analysis of the effect on air quality; 

(II) A 30-day period for submittal of public comment; and 

(III) A notice by prominent advertisement in the area affected of the 

location of the source information and analysis specified in Item (I) of 

the Sub-part. This notice shall be provided by the source owner or 

operator. 

(ii) Where the 30-day comment period required in Item II of Sub-part (i) would 

conflict with existing requirements for acting on requests for permission to 

construct or modify, the Technical Secretary may submit for approval a 

comment period which is consistent with such existing requirements. 

(iii) The Technical Secretary shall provide a copy of the notice required by 

Sub-part (i) of this part to the Administrator through the appropriate 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 82

Regional Office, and to all other State and local air pollution control 

agencies having jurisdiction in the region in which such new or modified 

installation will be located. The notice also must be sent to any other 

agency in the region having responsibility for implementing the procedures 

required under this part. For lead, a copy of the notice is required for all 

point sources. The definition of point source for lead is given in 40 CFR 

Part 51.100(k)(2). (July 1, 1993). 

4. Emissions banking for an air contaminant for which an area is designated 

nonattainment must be conducted in accordance with the EPA Part III, Emissions 

Trading Policy Statement..., Federal Register / Vol. 51, No. 233 / Thursday, 

December 4, 1986. 

5. The following specific 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 subitems 1(xl)(I)I 

through III of this subparagraph for calculating projected actual emissions. 

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

documented and maintained pursuant to part 5. of this subparagraph available 

for review upon a request for inspection by the Technical Secretary or the 

general public pursuant to the requirements contained in sub-part 

.02(11)(e)1.(iii)of this chapter. 

7. Reserved. 

8. Reserved. 

9. Reserved. 

10. Actuals PALs. 

(i) Applicability. 

(I) The Technical Secretary may approve the use of an actuals PAL for 

any existing major stationary source (except as provided in item 

10.(i)(II) of this subparagraph) if the PAL meets the requirements in 

sub-parts 10.(i) through (xv) of this subparagraph. The term “PAL” 

shall mean “actuals PAL” throughout part 10. of this subparagraph. 

(II) The Technical Secretary 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 sub-parts 

10.(i) through (xv) of this subparagraph, and complies with the PAL 

permit: 

I Is not a major modification for the PAL pollutant; 

II Does not have to be approved through the nonattainment 

major NSR program; and 
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III Is not subject to the provisions in sub-part 2.(ix) of this 

subparagraph (restrictions on relaxing enforceable emission 

limitations that the major stationary source used to avoid 

applicability of the nonattainment major NSR program). 

(IV) Except as provided under sub-item 10.(i)(III)III of this subparagraph, 

a major stationary source shall continue to comply with all applicable 

Federal or State requirements, emission limitations, and work 

practice requirements that were established prior to the effective 

date of the PAL. 

(ii) Definitions. When a term is not defined in these paragraphs, it shall have 

the meaning given in part 1. of this subparagraph or in the Federal Clean 

Air Act. 

(I) Actuals PAL for a major stationary source means a PAL based on 

the baseline actual emissions (as defined in sub-part 1.(xlvii) of this 

subparagraph) of all emissions units (as defined in sub-part 1.(vii) of 

this subparagraph) at the source, that emit or have the potential to 

emit the PAL pollutant. 

(II) Allowable emissions means “allowable emissions” as defined in subpart 1.(xi) of this subparagraph, except as this definition is modified 

according to sub-items 10.(ii)(II)I through II of this subparagraph. 

I The allowable emissions for any emissions unit shall be 

calculated considering any emission limitations that are 

enforceable as a practical matter on the emissions unit’s 

potential to emit. 

II An emissions unit’s potential to emit shall be determined using 

the definition in sub-part 1.(iii) of this subparagraph, except 

that the words “or enforceable as a practical matter” should be 

added after “federally enforceable.” 

(III) Small emissions unit means an emissions unit that emits or has the 

potential to emit the PAL pollutant in an amount less than the 

significant level for that PAL pollutant, as defined in sub-part 1.(x) of 

this subparagraph or in the Federal Clean Air Act, whichever is 

lower. 

(IV) Major emissions unit means: 

I Any emissions unit that emits or has the potential to emit 100 

tons per year or more of the PAL pollutant in an attainment 

area; or 

II Any emissions unit that emits or has the potential to emit the 

PAL pollutant in an amount that is equal to or greater than the 

major source threshold for the PAL pollutant as defined by the 

Federal Clean Air Act for nonattainment areas. 

(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 
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source-wide in accordance with sub-parts 10.(i) through (xv) of this 

subparagraph. 

(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 sub-parts 1.(v) and 

1.(vi) of this subparagraph (the definitions for major modification and 

net emissions increase), any physical change in or change in the 

method of operation of the PAL source that causes it to emit the PAL 

pollutant at a level equal to or greater than the PAL. 

(IX) PAL permit means the major NSR permit, the minor NSR permit, or 

the State operating permit under a program that is approved into the 

plan, or the title V permit issued by the Technical Secretary 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 sub-part 1.(x) of this 

subparagraph or in the Federal Clean Air Act, whichever is lower) for 

that PAL pollutant, but less than the amount that would qualify the 

unit as a major emissions unit as defined in item 10.(ii)(IV) of this 

subparagraph. 

(iii) Permit application requirements. As part of a permit application requesting 

a PAL, the owner or operator of a major stationary source shall submit the 

following information to the Technical Secretary for approval: 

(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 item 10.(xiii)(I) of this 

subparagraph. 

(iv) General requirements for establishing PALs. 
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(I) The Technical Secretary may establish a PAL at a major stationary 

source, provided that at a minimum, the requirements in sub-items 

10.(iv)(I)I through VII of this subparagraph are met. 

I The PAL shall impose an annual emission limitation in tons per 

year, that is enforceable as a practical matter, for the entire 

major stationary source. For each month during the PAL 

effective period after the first 12 months of establishing a PAL, 

the major stationary source owner or operator shall show that 

the sum of the monthly emissions from each emissions unit 

under the PAL for the previous 12 consecutive months is less 

than the PAL (a 12-month average, rolled monthly). For each 

month during the first 11 months from the PAL effective date, 

the major stationary source owner or operator shall show that 

the sum of the preceding monthly emissions from the PAL 

effective date for each emissions unit under the PAL is less 

than the PAL. 

II The PAL shall be established in a PAL permit that meets the 

public participation requirements in sub-part 10.(v) of this 

subparagraph. 

III The PAL permit shall contain all the requirements of sub-part 

10.(vii) of this subparagraph. 

IV The PAL shall include fugitive emissions, to the extent 

quantifiable, from all emissions units that emit or have the 

potential to emit the PAL pollutant at the major stationary 

source. 

V Each PAL shall regulate emissions of only one pollutant. 

VI Each PAL shall have a PAL effective period of 10 years. 

VII The owner or operator of the major stationary source with a 

PAL shall comply with the monitoring, recordkeeping, and 

reporting requirements provided in sub-parts 10.(xii) through 

(xiv) of this subparagraph 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 subpart 2.(v) of this subparagraph 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. 

(v) Public participation requirement for PALs. PALs for existing major 

stationary sources shall be established, renewed, or increased through a 

procedure that is consistent with 40 CFR 51.160 and 51.161, part 3. of this 

subparagraph, subparagraph (4)(l) of this rule, or 1200-03-09-.02(11)(f)8. 

This includes the requirement that the Technical Secretary provide the 

public with notice of the proposed approval of a PAL permit and at least a 

30-day period for submittal of public comment. The Technical Secretary 

must address all material comments before taking final action on the 

permit. 
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(vi) Setting the 10-year actuals PAL level. 

(I) Except as provided in item 10.(vi)(II) of this subparagraph, the 

actuals PAL level for a major stationary source shall be established 

as the sum of the baseline actual emissions (as defined in sub-part 

1.(xlvii) of this subparagraph) 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 sub-part 1.(x) of this subparagraph 

or under the Federal 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. Emissions 

associated with units that were permanently shut down after this 24-

month period must be subtracted from the PAL level. The Technical 

Secretary 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 

Technical Secretary 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 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 actual construction began after the 24-month 

period, in lieu of adding the baseline actual emissions as specified in 

item 10.(vi)(I) of this subparagraph, the emissions must be added to 

the PAL level in an amount equal to the potential to emit of the units. 

(vii) Contents of the PAL permit. 

(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 subpart 10.(x) of this subparagraph 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 Technical Secretary. 

(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 sub-part 10.(ix) of this 

subparagraph. 

(VI) The calculation procedures that the major stationary source owner or 

operator shall use to convert the monitoring system data to monthly 
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emissions and annual emissions based on a 12-month rolling total 

for each month as required by item 10.(xiii)(I) of this subparagraph. 

(VII) A requirement that the major stationary source owner or operator 

monitor all emissions units in accordance with the provisions under 

sub-part 10.(xii) of this subparagraph. 

(VIII) A requirement to retain the records required under sub-part 10.(xiii) 

of this subparagraph on site. Such records may be retained in an 

electronic format. 

(IX) A requirement to submit the reports required under sub-part 10.(xiv) 

of this subparagraph by the required deadlines. 

(X) Any other requirements that the Technical Secretary deems 

necessary to implement and enforce the PAL. 

(viii) PAL effective period and reopening of the PAL permit. 

(I) PAL effective period. The Technical Secretary shall specify a PAL 

effective period of 10 years. 

(II) Reopening of the PAL permit. 

I During the PAL effective period, the Technical Secretary shall 

reopen the PAL permit to: 

A Correct typographical/calculation errors made in setting 

the PAL or reflect a more accurate determination of 

emissions used to establish the PAL. 

B Reduce the PAL if the owner or operator of the major 

stationary source creates creditable emissions 

reductions for use as offsets under sub-part 2.(v) of this 

subparagraph. 

C Revise the PAL to reflect an increase in the PAL as 

provided under sub-part 10.(xi) of this subparagraph. 

II The Technical Secretary may reopen the PAL permit for the 

following: 

A Reduce the PAL to reflect newly applicable Federal 

requirements (for example, NSPS) with compliance 

dates after the PAL effective date. 

B Reduce the PAL consistent with any other requirement, 

that is enforceable as a practical matter, and that the 

State may impose on the major stationary source under 

the plan. 

C Reduce the PAL if the Technical Secretary determines 

that a reduction is necessary to avoid causing or 

contributing to a NAAQS or PSD increment violation, or 

to an adverse impact on an air quality related value that 

has been identified for a Federal Class I area by a 
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Federal Land Manager and for which information is 

available to the general public. 

III Except for the permit reopening in section 10.(viii)(II)IA of this 

subparagraph 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 sub-part 10.(v) of this subparagraph. 

(ix) Expiration of a PAL. Any PAL which is not renewed in accordance with the 

procedures in sub-part 10.(x) of this subparagraph shall expire at the end 

of the PAL effective period, and the requirements in items 10.(ix)(I) through 

(V) of this subparagraph 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 

sub-items 10.(ix)(I)I through II of this subparagraph. 

I Within the time frame specified for PAL renewals in item 

10.(x)(II) of this subparagraph, 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 Technical 

Secretary) 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 item 

10.(x)(V) of this subparagraph, such distribution shall be made 

as if the PAL had been adjusted. 

II The Technical Secretary 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 

Technical Secretary determines is appropriate. 

(II) Each emissions unit(s) shall comply with the allowable emission 

limitation on a 12-month rolling basis. The Technical Secretary 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 Technical Secretary issues the revised permit incorporating 

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

units, as required under sub-item 10.(ix)(I)I of this subparagraph, 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 sub-part 1.(v) of this subparagraph. 
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(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 sub-part 

2.(ix) of this subparagraph, but were eliminated by the PAL in 

accordance with the provisions in sub-item 10.(i)(III)III of this 

subparagraph. 

(x) Renewal of a PAL. 

(I) The Technical Secretary shall follow the procedures specified in subpart 10.(v) of this subparagraph 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 Technical Secretary. 

(II) Application deadline. A major stationary source owner or operator 

shall submit a timely application to the Technical Secretary 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 sub-items 10.(x)(III)I through 

IV of this subparagraph. 

I The information required in items 10.(iii)(I) through (III) of this 

subparagraph. 

II A proposed PAL level. 

III The sum of the potential to emit of all emissions units under 

the PAL (with supporting documentation). 

IV Any other information the owner or operator wishes the 

Technical Secretary to consider in determining the appropriate 

level for renewing the PAL. 

(IV) PAL adjustment. In determining whether and how to adjust the PAL, 

the Technical Secretary shall consider the options outlined in subitems 10.(x)(IV)I and II of this subparagraph. However, in no case 

may any such adjustment fail to comply with sub-item 10.(x)(IV)III of 

this subparagraph. 

I If the emissions level calculated in accordance with sub-part 

10.(vi) of this subparagraph is equal to or greater than 80 

percent of the PAL level, the Technical Secretary may renew 
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the PAL at the same level without considering the factors set 

forth in sub-item 10.(x)(IV)II of this subparagraph; or 

II The Technical Secretary 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 Technical 

Secretary in its written rationale. 

III Notwithstanding sub-items 10.(x)(IV)I and II of this 

subparagraph, 

A If the potential to emit of the major stationary source is 

less than the PAL, the Technical Secretary shall adjust 

the PAL to a level no greater than the potential to emit of 

the source; and 

B The Technical Secretary shall not approve a renewed 

PAL level higher than the current PAL, unless the major 

stationary source has complied with the provisions of 

sub-part 10.(xi) of this subparagraph (increasing a PAL). 

(V) If the compliance date for a State or Federal requirement that applies 

to the PAL source occurs during the PAL effective period, and if the 

Technical Secretary has not already adjusted for such requirement, 

the PAL shall be adjusted at the time of PAL permit renewal or title V 

permit renewal, whichever occurs first. 

(xi) Increasing a PAL during the PAL effective period. 

(I) The Technical Secretary may increase a PAL emission limitation 

only if the major stationary source complies with the provisions in 

sub-items 10.(xi)(I)I through IV of this subparagraph. 

I 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. 

II 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 
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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. 

III The owner or operator obtains a major NSR permit for all 

emissions unit(s) identified in sub-item 10.(xi)(I)I of this 

subparagraph, 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. 

IV 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 Technical Secretary 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 sub-item 10.(xi)(I)I), 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 sub-part 10.(v) of this 

subparagraph. 

(xii) Monitoring requirements for PALs 

(I) General requirements. 

I 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. 

II The PAL monitoring system must employ one or more of the 

four general monitoring approaches meeting the minimum 

requirements set forth in sub-items 10.(xii)(II)I through IV of 

this subparagraph and must be approved by the Technical 

Secretary. 

III Notwithstanding sub-item 10.(xii)(I)II of this subparagraph, you 

may also employ an alternative monitoring approach that 

meets sub-item 10.(xii)(I)I of this subparagraph if approved by 

the Technical Secretary. 
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IV Failure to use a monitoring system that meets the 

requirements of this section 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 items 10.(xii)(III) through (IX) of this subparagraph: 

I Mass balance calculations for activities using coatings or 

solvents; 

II CEMS; 

III CPMS or PEMS; and 

IV 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: 

I 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; 

II 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 

III 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 Technical Secretary determines there is sitespecific 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: 

I CEMS must comply with applicable Performance 

Specifications found in 40 CFR part 60, appendix B; and 

II 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: 

I The CPMS or the PEMS must be based on current sitespecific data demonstrating a correlation between the 
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monitored parameter(s) and the PAL pollutant emissions 

across the range of operation of the emissions unit; and 

II Each CPMS or PEMS must sample, analyze, and record data 

at least every 15 minutes, or at another less frequent interval 

approved by the Technical Secretary, 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: 

I All emission factors shall be adjusted, if appropriate, to 

account for the degree of uncertainty or limitations in the 

factors’ development; 

II The emissions unit shall operate within the designated range 

of use for the emission factor, if applicable; and 

III 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 site-specific emission factor within 6 months of 

PAL permit issuance, unless the Technical Secretary 

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 items 10.(xii)(III) through (VII) of 

this subparagraph, where an owner or operator of an emissions unit 

cannot demonstrate a correlation between the monitored 

parameter(s) and the PAL pollutant emissions rate at all operating 

points of the emissions unit, the Technical Secretary shall, at the 

time of permit issuance: 

I Establish default value(s) for determining compliance with the 

PAL based on the highest potential emissions reasonably 

estimated at such operating point(s); or 

II 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 Technical Secretary. Such testing must 

occur at least once every 5 years after issuance of the PAL. 

(xiii) Recordkeeping requirements. 
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(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 part 10. of this subparagraph 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: 

I A copy of the PAL permit application and any applications for 

revisions to the PAL; and 

II Each annual certification of compliance pursuant to title V and 

the data relied on in certifying the compliance. 

(xiv) Reporting and notification requirements. The owner or operator shall 

submit semi-annual monitoring reports and prompt deviation reports to the 

Technical Secretary in accordance with the applicable title V operating 

permit program. The reports shall meet the requirements in items 

10.(xiv)(I) through (III). 

(I) Semi-Annual Report. The semi-annual report shall be submitted to 

the Technical Secretary within 30 days of the end of each reporting 

period. This report shall contain the information required in sub-items 

10.(xiv)(I)I through VII of this subparagraph. 

I The identification of owner and operator and the permit 

number. 

II Total annual emissions (tons/year) based on a 12-month 

rolling total for each month in the reporting period recorded 

pursuant to item 10.(xiii)(I) of this subparagraph. 

III All data relied upon, including, but not limited to, any Quality 

Assurance or Quality Control data, in calculating the monthly 

and annual PAL pollutant emissions. 

IV A list of any emissions units modified or added to the major 

stationary source during the preceding 6-month period. 

V 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. 

VI 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 item 10.(xii)(VII) 

of this subparagraph. 
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VII 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 item .02(11)(e)1.(iii)(III) of this chapter 

shall satisfy this reporting requirement. The deviation reports shall be 

submitted within the time limits prescribed by item .02(11)(e)1.(iii)(III) 

of this chapter. The reports shall contain the following information: 

I The identification of owner and operator and the permit 

number; 

II The PAL requirement that experienced the deviation or that 

was exceeded; 

III Emissions resulting from the deviation or the exceedance; and 

IV 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 

Technical Secretary the results of any re-validation test or method 

within 3 months after completion of such test or method. 

(xv) Transition requirements. 

(I) The Technical Secretary may not issue a PAL that does not comply 

with the requirements in sub-parts 10.(i) through (xv) of this 

subparagraph after the Administrator has approved regulations 

incorporating these requirements into the SIP. 

(II) The Technical Secretary 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 subparts 10.(i) through (xv) of this subparagraph. 

11. If any provision of this section, or the application of such provision to any person 

or circumstance, is held invalid, the remainder of this section, 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. 

12. The requirements of this subparagraph applicable to major stationary sources 

and major modifications of PM10 shall also apply to major stationary sources and 

major modifications of PM10 precursors, except where the Administrator of the 

U.S. EPA determines that such sources do not contribute significantly to PM10

levels that exceed the PM10 ambient standards in the area. 

(6) Construction permits issued under this rule are based on the control of air contaminants only 

and do not in any way affect the applicant’s obligation to obtain necessary permits from other 

governmental agencies. 
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(7) The applicant for a construction permit (or its equivalent by Board order) shall pay the cost of 

publication of any notices required by state or federal law or regulations to effectuate the 

rights applied for. 

(8) Visibility Protection 

(a) Definitions - Unless specifically defined in this part, all terms shall have the meaning 

given them in Chapter 1200-03-02, paragraph 1200-03-09-.01(4) and Chapter 1200-

03-23. 

1. “Visibility protection area” means any of the mandatory Federal Class I areas 

listed below. These areas are those mandatory Federal Class I areas where 

visibility values may be impacted by sources in Tennessee: 

(i) Great Smoky Mountains National Park(NP), TN-NC. 

(ii) Joyce Kilmer-Slickrock National Wilderness Area(NWA), TN-NC. 

(iii) Cohutta National Wilderness Area, TN-GA. 

(iv) Linville Gorge National Wilderness Area, NC. 

(v) Shining Rock National Wilderness Area, NC. 

(vi) Sipsey National Wilderness Area, AL. 

(vii) Mammoth Cave National Park, KY. 

(viii) Mingo National Wilderness Area, MO. 

2. (Reserved) 

3. Class II areas in Tennessee are those areas not already designated as 

mandatory Federal Class I areas. This corresponds to all areas of the State 

which are not part of Cohutta NWA or Great Smoky Mountains N.P., or Joyce 

Kilmer-Slickrock National Wilderness Area(NWA). 

(b) Review of major stationary sources and major modifications - source applicability and 

exemptions. 

1. No stationary source or modification to which the requirements of this part apply 

shall begin actual construction without a permit which states that the stationary 

source or modification would meet the applicable requirements. 

2. The requirements of this part shall apply to construction of any new major 

stationary source or major modification that would be constructed in an area 

classified as nonattainment and potentially have an impact on visibility in any 

visibility protection area. 

3. The requirements of this part shall apply to any major stationary source and any 

major modification with respect to each air contaminant that it would emit, except 

as this part otherwise provides. 

4. The requirements of this part shall not apply to a particular major stationary 

source or major modification, if: 
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(i) 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 

(ii) The source or modification that 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: 

(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; 

(XI) Lime plants; 

(XII) Phosphate rock processing plants; 

(XIII) Coke oven batteries; 

(XIV) Sulfur recovery plants; 

(XV) Carbon black plants (furnace process); 

(XVI) Primary lead smelters; 

(XVII) Fuel conversion plants; 

(XVIII) Sintering plants; 

(XIX) Secondary metal production plants; 

(XX) Chemical process plants; 

(XXI) Fossil-fuel boilers (or combination thereof) totaling more than 250 

million British thermal units per hour heat input; 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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(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 hear input; 

(XXVII) Any other stationary source category which, as of August 7, 1980, 

is being regulated under Chapter 1200-03-16, New Source 

Performance Standards, or Chapter 1200-03-11, Hazardous Air 

Contaminants. or Chapter 1200-03-31, Standards For Hazardous 

Air Contaminants For Source Categories, or 40 CFR Part 60 and 

61 (July 1, 1993). 

(iii) The source is a portable stationary source which has previously received a 

permit under this part; and 

(I) The owner or operator proposes to relocate the source and 

emissions of the source at the new location would be temporary (a 

two year period); and 

(II) The emissions from the source would not exceed its allowable 

emissions; and 

(III) The emissions from the source would impact no visibility protection 

area and no area where an applicable increment is known to be 

violated; and 

(IV) Reasonable notice is given to the Technical Secretary 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 Technical Secretary not less than 10 days in advance of the 

proposed relocation unless a different time duration is previously 

approved by the Technical Secretary. 

5. The requirements of this part 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 attainment. 

6. The requirements of this part 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 visibility protection area and no area where an applicable 

increment is known to be violated, and 

(ii) Would be temporary. 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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(c) Visibility impact analyses. 

 The owner or operator of a source shall provide an analysis of the impairment to 

visibility 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. 

(d) Federal land manager notification. 

1. The Federal Land Manager (FLM) and the Federal official charged with direct 

responsibility for management of Federal Class I areas have an affirmative 

responsibility to protect the air quality related values (including visibility) of such 

lands and to consider, in consultation with the Technical Secretary whether a 

proposed source or modification will have an adverse impact on such values. 

2. The Technical Secretary shall provide written notification to all affected Federal 

Land Managers of any permit application for any proposed new major stationary 

source or major modification that may affect visibility in any visibility protection 

area. The Technical Secretary shall also provide such notification to 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 any visibility protection area. The Technical Secretary shall also 

notify all affected FLM’s within 30 days of receipt of any advance notification of 

any such permit application. 

3. The Technical Secretary shall consider any analysis performed by the Federal 

Land Manager provided within 30 days of the notification and analysis required 

by part 2. of this subparagraph, that such proposed new major stationary source 

or major modification may have an adverse impact on visibility in any visibility 

protection area. Where the Technical Secretary finds that such an analysis does 

not demonstrate to the satisfaction of the Technical Secretary that an adverse 

impact on visibility will result in the visibility protection area, the Technical 

Secretary must, in the notice of public hearing, either explain his decision or give 

notice as to where the explanation can be obtained. 

(e) National visibility goal. 

 The Technical Secretary shall only issue permits to those sources whose emissions will 

be consistent with making reasonable further progress toward the national goal of 

preventing any future, and remedying any existing, impairment of visibility in visibility 

protection areas in which impairment results from man-made air pollution. In making 

the decision to issue a permit the Technical Secretary may take into account the costs 

of compliance, the time necessary for compliance, the energy and non-air quality 

environmental impacts of compliance, and the useful life of the source. 

(f) Monitoring. 

 The Technical Secretary may require monitoring of visibility in any visibility protection 

area near the proposed new stationary source or major modification for such purposes 

and by such means as the Technical Secretary deems necessary and appropriate. 

Authority: T.C.A. §§ 4-5-201 et seq., 4-5-201 et seq., 4-5-202 et seq., 68-201-101 et seq., and 68-201-

105. Administrative History: Original rule certified June 4, 1974. Amendment filed and effective 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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February 9, 1977. Amendment filed and effective April 12, 1978. Amendment filed and effective June 16, 

1978. Amendment filed and effective March 21, 1979. Amendment filed and effective June 21, 1979. 

Amendment filed and effective November 16, 1979. Emergency rule effective June 3, 1981 through 

October 1, 1981. Revised effective July 31, 1981. Amendment filed and effective October 2, 1981. 

Amendment filed and effective January 22, 1982. Amendment filed and effective March 2, 1983. 

Amendment filed and effective August 22, 1983. Amendment filed and effective November 6, 1988. 

Amendment filed April 19, 1990; effective June 2, 1990. Amendment filed May 17, 1990; effective July 1, 

1990. Amendment filed May 12, 1993; effective June 26, 1993. Amendment filed September 7, 1993; 

effective November 21, 1993. Amendment filed April 18, 1994; effective July 2, 1994. Amendment filed 

June 2, 1994; effective August 15, 1994. Amendment filed March 29, 1995; effective June 14, 1995. 

Amendment filed June 3, 1996; effective August 14, 1996. Amendment filed June 7, 1996, effective 

August 18, 1996. Amendment filed October 14, 1996; effective December 28, 1996. Amendment filed 

November 12, 1998; effective January 26, 1999. Amendment filed June 8, 1999; effective August 22, 

1999. Amendment filed December 30, 1999; effective March 14, 2000. Repeal and new rule filed 

December 1, 2005; effective February 14, 2006. Amendment filed February 24, 2009; effective May 10, 

2009. Amendment filed February 24, 2009; effective May 10, 2009. Amendments filed February 24, 2009; 

effective May 10, 2009. Amendment filed May 12, 2010; effective August 10, 2010. Amendments filed 

November 10, 2010; effective February 8, 2011. Amendments filed March 29, 2011; effective June 27, 

2011. Amendment filed August 29, 2011; effective November 27, 2011. 

1200-03-09-.02 OPERATING PERMITS. 

(1) Any person planning to operate an air contaminant source constructed or modified in 

accordance with a construction permit issued by the Technical Secretary in rule 1200-03-09-

.01 of this chapter shall apply for and receive an operating permit from the Technical 

Secretary after initial start-up of this said air contaminant source. Ninety (90) days shall be 

allowed for this, provided paragraph (3) of this rule is complied with. This time period is 

extended from ninety (90) to one hundred twenty (120) days if stack sampling has been 

required as a condition on the construction permit, which is further extended to sixty (60) 

days after the stack sampling report is required on the construction if a certain time is 

specified, provided the stack sampling report is filed with the Division within sixty (60) days of 

initial start-up or the time specified on the construction permit as that paragraph (3) of this 

rule is complied with. 

(2) No person shall operate an air contaminant source in Tennessee without first obtaining an 

operating permit from the Technical Secretary except as specifically exempted in rule 1200-

03-09-.04 of this chapter. New sources operating with a valid construction permit may 

operate with the construction permit for the time period specified in paragraph (1) above. 

(3) Application for an operating permit shall be made on forms available from the Technical 

Secretary and signed by the applicant. Such application for an operating permit shall be filed 

with the Technical Secretary. 

(a) Not less than sixty (60) days prior to the expiration of an existing operating permit. 

(b) 1. Not more than thirty (30) days after initial start-up of an air contaminant source 

constructed or modified in accordance with a construction permit issued by the 

Technical Secretary. 

2. If stack sampling or other test data has been required as a condition on the 

construction permit, this time period is extended to the time specified on the 

construction permit for submittal of the test report(s). In no case shall this period 

exceed the period allowed in the applicable regulation. 

(4) Sources that do not comply with the requirements of Division 1200-03 or any permit issued 

thereunder shall have their operating permit applications processed in the following manner: 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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(a) Sources subject to the requirements of paragraph 1200-03-09-.02(11) shall be subject 

to a compliance schedule in their permit in accordance with the provisions of that 

paragraph. 

(b) Sources that are not subject to the requirements of paragraph 1200-03-09-.02(11) 

shall be issued temporary operating permits containing a schedule of corrective action 

for returning to compliance that is acceptable to the Technical Secretary. The schedule 

shall require the permittee to file a written report or their progress toward compliance 

with the Technical Secretary no later than 10 days after the passage of each increment 

in the schedule. 

(5) Any person in possession of an operating permit shall maintain said operating permit readily 

available for inspection by the Technical Secretary or his designated representative on the 

operating premises. A person required by these regulations to have one or more operating 

permits shall keep at least one operating permit prominently and conspicuously displayed on 

the operating premises. 

(6) Operation of each air contaminant source shall be in accordance with the provisions and 

stipulations set forth in the operating permit, all provisions of these regulations, and all 

provisions of the Tennessee Air Quality Act. However, some excursions, as defined under 

part 1200-03-09-.02(11)(b)31., or as defined in the operating permit, which occur during 

periodic monitoring for compliance assurance at an air contaminant source subject to 

paragraph 1200-03-09-.02(11), may be excused by the Technical Secretary, and this 

authority is not extended to excursions that demonstrate noncompliance with an applicable 

emission limitation. 

(7) The owner or operator of any air contaminant source to which any of the following changes 

are made, but would not be a modification requiring a construction permit, must notify the 

Technical Secretary thirty (30) days before the change is commenced. These changes are: 

(a) Change in air pollution control equipment, 

(b) Change in stack height or diameter, 

(c) Change in exit velocity (of more than twenty five percent (25%) or exit temperature of 

more than fifteen percent (15%) (absolute temperature basis). 

(8) Any stack sampling report required on a construction permit is part of the operating permit 

application. Any stack sampling report required on an operating permit is a part of the 

application for renewal of that operating permit. 

(9) The owner or operator of any air contaminant source subject to an order or variance issued 

so as to allow the source by its terms to operate while exceeding an emission standard, shall 

pay the cost of publication of any notices (including, but not limited to, a copy of the order) 

required by state or federal law or regulations to effectuate the right of continued operation. 

(10) Those sources possessing a valid permit on the data chapter 1200-03-19 becomes effective 

and subject to a specified compliance schedule in chapter 1200-03-19 must comply with all 

the requirements contained in the permit and the requirements of rule 1200-03-09-.02 of this 

chapter. All permits shall expire on the date the emission standard specified in chapter 1200-

03-19 becomes effective. If a source possessing a valid operating permit and subject to a 

specified compliance schedule contained in chapter 1200-03-19 fails to comply with the 

specified schedule, such permit will be revoked upon notification that the source has not 

complied with the schedule and opportunity for hearing by the Technical Secretary. 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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(11) Major Stationary Source Operating Permits 

(a) Statement of Purpose and General Intent 

 The requirements of paragraph 1200-03-09-.02(11) are promulgated in order to fulfill 

the requirements of Title V of the federal Clean Air Act (42 U.S.C. 7661a - 7661e) and 

the federal regulations promulgated thereunder at 40 C.F.R. Part 70. (FR Vol. 57, No. 

140, Tuesday, July 21, 1992 p.32295-32312). The federal law and regulations require 

unique approaches pertaining to federal involvement in the permitting activities 

specified in this paragraph. The federal government, acting by and through the United 

States Environmental Protection Agency (EPA), is a key party in the review, issuance, 

and revisions of permits issued under the provisions of this paragraph. It is the intent 

of the Board to comply with these federal requirements to the full extent allowed under 

the laws of the State of Tennessee. In the event that the federal law or regulations 

should require something that the Board has not yet promulgated as a rule, the permit 

applicant and the Technical Secretary may mutually agree to be governed by whatever 

emission limitations and/or procedural requirements that the federal rules require and 

that shall become a binding condition of the applicant’s permit to operate. In addition, 

sources that are subject to this paragraph 1200-03-09-.02(11) may opt out of being 

subject to the provisions of paragraph 1200-03-09-.02(11) by limiting their potential to 

emit such that they are below the applicability threshold. In order to exercise this 

option, the source must agree to be bound by a permit which specifies the more 

restrictive limit and to be subject to detailed monitoring, reporting and recordkeeping 

requirements that prove the source is abiding by its more restrictive emission and/or 

production limits. The permit shall have a term not to exceed 10 years and shall be 

subjected to the opportunity for comment and hearing by EPA, affected states and the 

public consistent with the provisions of this paragraph. The permit shall contain a 

statement of basis comparing the source’s potential to emit with the synthetic limit to 

emit and the procedures to be followed that will insure that the more restrictive limit is 

not exceeded. If the source later decides to increase its potential to emit, the new 

source review permit procedures of rule 1200-03-09-.01 shall apply. 

1. Initial Start-Up of the Major Stationary Source Operating Permit Program 

 Consistent with the provisions of subparagraph 1200-03-09-.02(11)(d), all 

operating permits in the possession of sources subject to the requirements of 

paragraph 1200-03-09-.02(11) are subject to permit revocation proceedings if the 

source does not file a timely, complete major source operating permit application 

within 120 days after the Technical Secretary files his written notification to the 

source that their major stationary source operating permit applications are due, 

regardless of the expiration date on the permit. Anything in this paragraph 1200-

03-09-.02(11) to the contrary not withstanding, the current permit(s) in the 

possession of the source shall be effective until superseded by the issuance of 

major source operating permits under the provisions of this paragraph 1200-03-

09-.02(11), except that if a complete application or additional information 

requested by the Technical Secretary is not timely filed, then (i) the effectiveness 

of the current operating permits shall be suspended until such application or 

information is filed, and (ii), the current operating permits shall be subject to 

revocation proceedings at the discretion of the Technical Secretary. The 

preceding sentence shall also apply to renewals of major source operating 

permits. In addition, any operating permit application that does not seek to 

amend an existing operating permit without first undergoing construction permit 

review being processed by the Technical Secretary for such a source will be 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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canceled upon such notification and the source shall abide by the terms of their 

most recent permit until it is superseded by the major source operating permit. 

2. Once an operating permit has been issued to a source pursuant to the provisions 

of paragraph 1200-03-09-.02(11), the permit, its shield, (if one was granted) and 

its respective conditions will be extended and effective after its expiration date 

provided that the source has submitted a timely, complete renewal application to 

the Technical Secretary consistent with the provisions of item 1200-03-09-

.02(11)(d)1.(i)(III) and section 1200-03-09-.02(11)(d)1.(ii)(I)III. The extension 

shall cease upon final permit action by the Technical Secretary. If the Technical 

Secretary’s final permit action is contested, the provisions of TCA 4-5-320(b) 

shall rule as to the continued validity of the previous permit. 

3. Judicial review of a permit issued pursuant to paragraph 1200-03-09-.02(11) 

 A person aggrieved by an action of the Technical Secretary on a permit 

processed pursuant to paragraph 1200-03-09-.02(11) may initially seek 

administrative review of the permit before the Board and later, judicial review in 

Chancery Court by following the procedures detailed below: 

(i) The person seeking administrative/judicial review shall be: 

(I) The applicant for the permit request under dispute; or 

(II) A person who participated in the public participation process 

provided pursuant to part 1200-03-09-.02(11)(f)8; or 

(III) Any other person who can obtain judicial review of the permit under 

State law. 

(ii) The Technical Secretary’s failure to take timely final action on an 

application filed under the provisions of paragraph 1200-03-09-.02(11) is 

grounds for seeking administrative/judicial review. Timely, final action shall 

be determined according to the schedules for action established in 

paragraph 1200-03-09-.02(11). 

(iii) The procedures specified in part 1200-03-09-.02(11)(a)3 are the exclusive 

means for obtaining administrative/judicial review of the terms and 

conditions of permits issued pursuant to paragraph 1200-03-09-.02(11). 

Petitions for administrative review of a permit term or action of the 

Technical Secretary on a permit shall be filed by a person identified in 

subpart 1200-03-09-.02(11)(a)3(i) in accordance with the procedures 

specified in Rule 1200-03-09-.05. A person aggrieved by the final action of 

the Board on their petition may seek judicial review within 60 days of the 

entry of the Board’s final action consistent with the provisions of T.C.A. 4-

5-322. A person conforming to the criteria of subpart 1200-03-09-

.02(11)(a)3(i) may petition for administrative/judicial review later than the 

deadlines of Rule 1200-03-09-.05 or T.C.A. 4-5-322 only if the petition is 

based solely on grounds arising after the deadlines for 

administrative/judicial review. Petitions in this category must be filed within 

sixty days after the occurrence of the new grounds for administrative 

review. Petitions for review of the Technical Secretary’s failure to take a 

final permit action may be filed at any time prior to his issuance or denial of 

the permit, but only after the permit processing deadlines of paragraph 

1200-03-09-.02(11) have not been met by the Technical Secretary. 
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November, 2011 (Revised) 104

4. Operational Flexibility 

 The owner or operator of a source subject to paragraph 1200-03-09-.02(11) may 

make certain changes at their facility that are contrary to or not addressed by the 

permit as provided in part 1200-03-09-.02(11)(a)4. 

(i) The following changes can be made by the permittee without requiring a 

permit revision, if the changes are not modifications under Title I of the 

federal Act or Division 1200-03 and the changes do not exceed the 

emissions allowable under the permit (whether expressed therein as a rate 

of emissions or in the terms of total emissions): Provided, that the facility 

provides the Administrator and Technical Secretary with written notification 

as required below in advance of the proposed changes, which shall be a 

minimum of 7 days. The Technical Secretary may waive the 7 day 

advance notice in instances where the source demonstrates in writing that 

an emergency necessitates the change. Emergency shall be demonstrated 

by the criteria of part 1200-03-09-.02(11)(e)7 and in no way shall it include 

changes solely to take advantages of an unforeseen business opportunity. 

The source, Technical Secretary and EPA shall attach each such notice to 

their copy of the relevant permit: 

(I) The source may make a Section 502(b)(10) change if their written 

notification: 

I. Contains a brief description of the change within the permitted 

facility; 

II. Specifies the date on which the change will occur; 

III. Declares any change in emissions; and 

IV. Declares any permit term or condition that is no longer 

applicable as a result of the change. 

A. The permit shield provisions of part 1200-03-09-

.02(11)(e)6 shall not apply to Section 502(b)(10) 

changes. 

(II) [Reserved] 

(III) The source may trade emissions increases and decreases at their 

facility solely for the purpose of complying with a federally 

enforceable emissions cap. In order to exercise such an option, the 

permit applicant must ask the Technical Secretary to issue such a 

permit. The permit must contain all terms required under part 1200-

03-09-.02(11)(e)1 and part 1200-03-09-.02(11)(e)3 to determine 

compliance, allowing for the trading of such emissions increases and 

decreases with the emissions cap specified in the permit, 

independent of otherwise applicable requirements. 

I. The applicant for a permit under item 1200-03-09-

.02(11)(a)4(i)(III) shall include in its application, proposed 

replicable procedures and permit terms that ensure the 

emission trades are quantifiable and enforceable. The 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 105

Technical Secretary shall not be required to include in the 

emissions trading provisions any emissions units for which 

emissions are not quantifiable or for which there are no 

replicable procedures to enforce the emissions trades. 

II. The permit shall require compliance with all applicable 

requirements. 

III. The written notification required under subpart 1200-03-09-

.02(11)(a)4(i) shall state: 

A. When the change will occur; 

B. Describe the changes in emissions that will result; and 

C. How these increases and decreases will comply with the 

terms and conditions of the permit. 

IV. The permit shield described in part 1200-03-09-.02(11)(e)6 

may be extended to the terms and conditions which allow such 

increases and decreases in emissions. 

(ii) The source may make operational flexibility changes that are not 

addressed or prohibited by the permit without a permit revision subject to 

the following requirements: 

(I) The change cannot be subject to a requirement of Title IV of the 

Federal Act or Chapter 1200-03-30. 

(II) The change cannot be a modification under any provision of Title I of 

the federal Act or Division 1200-03. 

(III) Each change shall meet all applicable requirements and shall not 

violate any existing permit term or condition. 

(IV) The source must provide contemporaneous written notice to the 

Technical Secretary and EPA of each such change, except for 

changes that are below the threshold of insignificant activities and 

emission levels that are specified in Rule 1200-03-09-.04. 

(V) Each change shall be described in the notice including the date, any 

change in emissions, pollutants emitted, and any applicable 

requirements that would apply as a result of the change. 

(VI) The change shall not qualify for a permit shield under the provisions 

of part 1200-03-09-.02(11)(e)6. 

(VII) The permittee shall keep a record describing the changes made at 

the source that result in emissions of a regulated air pollutant subject 

to an applicable requirement, but not otherwise regulated under the 

permit, and the emissions resulting from those changes. The records 

shall be retained until the changes are incorporated into 

subsequently issued permits. 

5. Opt -In Opportunity 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 106

Any source that is not subject to the provisions of paragraph 1200-03-09-.02(11) 

may opt into being subject to paragraph 1200-03-09-.02(11) by filing a written 

request to be so bound with the Technical Secretary. Upon execution of a 

mutual, signed letter of agreement binding the person to the provisions of 

paragraph 1200-03-09-.02(11), the Technical Secretary shall issue a major 

stationary source operating permit to the source that subjects them to all of the 

requirements of paragraph 1200-03-09-.02(11). 

(b) Definitions - The following terms are defined as they uniquely apply to this paragraph. 

All other terms shall have the meaning given to them in Chapter 1200-03-02, Chapter 

1200-03-11, Chapter 1200-03-30 Chapter 1200-03-31, Chapter 1200-03-32 and 

Chapter 1200-03-20. 

 -NOTICE- 

 THE READER IS CAUTIONED THAT ADDITIONAL DEFINITIONS HAVE BEEN 

ADDED TO SUBPARAGRAPH 1200-03-09-.02(11)(B) DURING RULEMAKING. AS A 

RESULT, NOT ALL DEFINITIONS ARE ALPHABETIZED. 

1. “Federal Act” means the Clean Air Act, as amended, 42 U.S.C. 7401, et. seq. as 

amended by Public Law No. 101-549 (November 15, 1990) 

2. “Affected source” shall have the meaning given to it in the federal regulations 

promulgated under title IV of the Federal Act and Chapter 1200-03-30. 

3. “Affected States” may be Illinois, Kentucky, Virginia, North Carolina, South 

Carolina, Georgia, Alabama, Mississippi, West Virginia, Arkansas or Missouri if 

either of the following criteria are met: 

(i) the State’s air quality may be affected by the issuance of a permit pursuant 

to the provisions of paragraph 1200-03-09-.02(11); or 

(ii) the State noted above is within 50 miles of the source’s site or proposed 

site. 

4. “Affected unit” shall have the meaning given it in the regulations promulgated 

under title IV of the Federal Act and Chapter 1200-03-30. 

5. “Applicable requirement” means all of the following as they apply to emissions 

units in a source subject to paragraph 1200-03-09-.02(11) (including 

requirements that have been promulgated or approved by EPA through 

rulemaking at the time of issuance but have future-effective compliance dates): 

(i) Any standard or other requirement provided for in the Tennessee 

implementation plan approved or promulgated by EPA through rulemaking 

under title I of the Federal Act that implements the relevant requirements of 

the Federal Act, including any revisions to that plan promulgated in, 40 

C.F.R. part 52, but not including any standard or other requirement 

provided for in the Tennessee implementation plan that does not 

implement relevant requirements of the Federal Act; 

(ii) Any terms or conditions of any preconstruction permits issued pursuant to 

regulations approved or promulgated through rulemaking under title I, 
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including parts C or D, of the Federal Act, but not any terms or conditions 

that do not implement relevant requirements of the Federal Act; 

(iii) Any standard or other requirement under Section 111 of the Federal Act, 

including section 111(d); 

(iv) Any standard or other requirement under section 112 of the Federal Act, 

including any requirement concerning accident prevention under section 

112(r)(7) of the Federal Act; 

(v) Any standard or other requirements of the acid rain program under title IV 

of the Federal Act or the Federal regulations promulgated thereunder; 

(vi) Any requirements established pursuant to section 504(b) or section 

114(a)(3) of the Federal Act; 

(vii) Any standard or other requirement governing solid waste incineration, 

under section 129 of the Federal Act; 

(viii) Any standard or other requirement for consumer and commercial products, 

under section 183(e) of the Federal Act; 

(ix) Any standard or other requirement for tank vessels, under section 183(f) of 

the Federal Act; 

(x) Any standard or other requirement of the program to control air pollution 

from outer continental shelf sources, under section 328 of the Federal Act; 

(xi) Any standard or other requirement of the regulations promulgated to 

protect stratospheric ozone under title VI of the Federal Act, unless the 

Administrator has determined that such requirements need not be 

contained in a title V permit; and 

(xii) Any national ambient air quality standard or increment or visibility 

requirement under part C of title I of the Federal Act, but only as it would 

apply to temporary sources permitted pursuant to section 504(e) of the 

Federal Act. 

6. “Designated representative” shall have the meaning given to it in section 402(26) 

of the Federal Act, the Federal regulations promulgated thereunder and Chapter 

1200-03-30. 

7. “Draft permit” means the version of a permit for which the Technical Secretary 

offers public participation under part 1200-03-09-.02(11)(f)8 or affected State 

review under subparagraph 1200-03-09-.02(11)(g). 

8. “Emissions allowable under the permit” means a federally enforceable permit 

term or condition determined at issuance to be required by an applicable 

requirement that establishes an emission limit (including a work practice 

standard) or a federally enforceable emissions cap that the source has assumed 

to avoid an applicable requirement to which the source would otherwise be 

subject. 

9. “Emissions unit” means any part or activity of a stationary source that emits or 

has the potential to emit any regulated air pollutant or any pollutant listed under 
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section 112(b) of the Federal Act. This term is not meant to alter or affect the 

definition of the term “unit” for purposes of title IV of the Federal Act or Chapter 

1200-03-30. 

10. “EPA” or the “Administrator” means the Administrator of the EPA or his designee. 

11. “Final permit” means the version of a permit issued by the Technical Secretary 

that has completed all review procedures required by subparagraph 1200-03-09-

.02(11)(f) and subparagraph 1200-03-09-.02(11)(g). 

12. “Fugitive emissions” are those emissions which could not reasonably pass 

through a stack, chimney, vent, or other functionally-equivalent opening. 

13. “General permit” means a permit issued pursuant to paragraph 1200-03-09-

.02(11) that meets the requirements of part 1200-03-09-.02(11)(e)4. 

14. “Major source” means any stationary source (or any group of stationary sources 

that are located on one or more contiguous or adjacent properties, and are under 

common control of the same person [or persons under common control]) 

belonging to a single major industrial grouping and that are described in subparts 

(i), (ii), (iii) or (iv) of this definition. For the purposes of defining “major source,” a 

stationary source or group of stationary sources shall be considered part of a 

single industrial grouping if all of the pollutant emitting activities at such source or 

group of sources on contiguous or adjacent properties belong to the same Major 

Group (i.e., all have the same two-digit code) as described in the Standard 

Industrial Classification Manual, 1987. 

(i) A major source under section 112 of the Federal Act, which is defined as: 

(I) For pollutants other than radionuclides, any stationary source or 

group of stationary sources located within a contiguous area and 

under common control that emits or has the potential to emit, in the 

aggregate, 10 tons per year (tpy) or more of any hazardous air 

pollutant which has been listed pursuant to section 112(b) of the 

Federal Act, 25 tpy or more of any combination of such hazardous 

air pollutants, or such lesser quantity as the Administrator may 

establish by rule. Notwithstanding the preceding sentence, 

emissions from any oil or gas exploration or production well (with its 

associated equipment) and emissions from any pipeline compressor 

or pump station shall not be aggregated with emissions from other 

similar units, whether or not such units are in a contiguous area or 

under common control, to determine whether such units or stations 

are major sources; or 

(II) For radionuclides, “major source” shall have the meaning specified 

by the Administrator by rule. 

(ii) A major stationary source of air pollutants, as defined in section 302 of the 

Federal Act, that directly emits or has the potential to emit, 100 tpy or more 

of any air pollutant subject to regulation (including any major source of 

fugitive emissions of any such pollutant, as determined by rule by the 

Administrator). The fugitive emissions of a stationary source shall not be 

considered in determining whether it is a major stationary source for the 

purposes of section 302(j) of the Federal Act, unless the source belongs to 

one of the following categories of stationary sources: 
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(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; 

(XI) Lime plants; 

(XII) Phosphate rock processing plants 

(XIII) Coke oven batteries; 

(XIV) Sulfur recovery plants; 

(XV) Carbon black plants (furnace process); 

(XVI) Primary lead smelters; 

(XVII) Fuel conversion plants; 

(XVIII) Sintering plants; 

(XIX) Secondary metal production plants; 

(XX) Chemical process plants; 

(XXI) Fossil-fuel boilers (or combination thereof) totaling more than 250 

million British thermal units per hour heat input; 

(XXII) Petroleum storage and transfer units with a total storage capacity 

exceeding 300,000 barrels; 

(XXIII) Taconite ore processing plants; 

(XXIV) Glass fiber processing plants; 

(XXV) Charcoal production plants; 
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(XXVI) Fossil-fuel-fired steam electric plants or more than 250 million 

British thermal units per hour heat input; or 

(XXVII) All other stationary source categories regulated by a standard 

promulgated under section 111 or 112 of the Act, but only with 

respect to those air pollutants that have been regulated for that 

category; 

(iii) A major stationary source as defined in part D of title I of the Federal Act, 

including: 

(I) For ozone nonattainment areas, sources with the potential to emit 

100 tpy or more of volatile organic compounds or oxides of nitrogen 

in areas classified as “marginal” or “moderate,” 50 tpy or more in 

areas classified as “serious,” 25 tpy or more in areas classified as 

“severe,” and 10 tpy or more in areas classified as “extreme”; except 

that the references in this paragraph to 100, 50, 25, and 10 tpy of 

nitrogen oxides shall not apply with respect to any source for which 

the Administrator has made a finding, under section 182(f)(1) or (2) 

of the Federal Act, that requirements under section 182(f) of the 

Federal Act do not apply; 

(II) For ozone transport regions established pursuant to section 184 of 

the Federal Act, sources with the potential to emit 50 tpy or more of 

volatile organic compounds; 

(III) For carbon monoxide nonattainment areas (1) that are classified as 

“serious,” and (2) in which stationary sources contribute significantly 

to carbon monoxide levels as determined under rules issued by the 

Administrator, sources with the potential to emit 50 tpy or more of 

carbon monoxide; and 

(IV) For particulate matter (PM-10) nonattainment areas classified as 

“serious,” sources with the potential to emit 70 tpy or more of PM-10. 

(iv) For purposes of these regulations, a research and development facility 

may be treated as a separate source from other stationary sources that are 

located on a contiguous or adjacent property and are under common 

control. However, all activities claimed by an applicant to be research and 

development at the contiguous or adjacent property shall have their 

emissions aggregated as a single source for the purposes of determining 

whether or not the research and development activities constitute a major 

source. 

15. “Permit modification” means a revision to a permit issued pursuant to paragraph 

1200-03-09-.02(11) that meets the requirements of part 1200-03-09-.02(11)(f)5. 

16. “Permit revision” means any permit modification or administrative permit 

amendment. 

17. “Potential to emit” means the maximum capacity of a stationary source to emit 

any air pollutant under its physical and operational design. Any physical or 

operational limitation on the capacity of a source to emit an air 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 
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treated as part of its design if the limitation is enforceable by the Administrator. 

This term does not alter or affect the use of this term for any other purposes 

under the Federal Act, or the term “capacity factor” as used in title IV of the 

Federal Act or the Federal regulations promulgated thereunder or chapter 1200-

03-30. 

18. “Proposed permit” means the version of a permit that the Technical Secretary 

proposes to issue and forwards to the Administrator for review in compliance with 

subparagraph 1200-03-09-.02(11)(g). 

19. “Regulated air pollutant” means the following: 

(i) Nitrogen oxides or any volatile organic compounds; 

(ii) Any pollutant for which a national ambient air quality standard has been 

promulgated; 

(iii) Any pollutant that is subjected to any standard promulgated under section 

111 of the Federal Act; 

(iv) Any Class I or II substance subject to a standard promulgated under or 

established by title VI of the Federal Act; or 

(v) Any pollutant subject to a standard promulgated under section 112 or other 

requirements established under section 112 of the Federal Act, including 

sections 112(g), (j), and (r) of the Act, including the following: 

(I) Any pollutant subject to requirements under section 112(j) of the 

Federal Act. If the Administrator fails to promulgate a standard by 

the date established pursuant to section 112(e) of the Federal Act, 

any pollutant for which a subject source would be major shall be 

considered to be regulated on the date 18 months after the 

applicable date established pursuant to section 112(e) of the Federal 

Act; and 

(II) Any pollutant for which the requirements of section 112(g)(2) of the 

Federal Act have been met, but only with respect to the individual 

source subject to section 112(g)(2) requirement. 

20. “Renewal” means the process by which a permit is reissued at the end of its 

term. 

21. “Responsible official” means one of the following: 

(i) For a corporation: a president, secretary, treasurer, or vice-president of 

the corporation in charge of a principal business function, or any other 

person who performs similar policy or decision-making functions for the 

corporation, or a duly authorized representative of such person if the 

representative is responsible for the overall operation of one or more 

manufacturing, production, or operating facilities applying for or subject to 

a permit and either: 

(I) The facilities employ more than 250 persons or have gross annual 

sales or expenditures exceeding $25 million (in second quarter 1980 

dollars); or 
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(II) The delegation of authority to such representative is approved in 

advance by the Technical Secretary; 

(ii) For a partnership or sole proprietorship: a general partner or the 

proprietor, respectively; 

(iii) For a municipality, State, Federal, or other public agency: either a principal 

executive officer or ranking elected official. For the purposes of this part, a 

principal executive officer of a Federal agency includes the chief executive 

officer having responsibility for the overall operations of a principal 

geographic unit of the agency (e.g., a Regional Administrator of EPA); or 

(iv) For affected sources: 

(I) The designated representative in so far as actions, standards, 

requirements, or prohibitions under title IV of the Federal Act or the 

regulations promulgated thereunder are concerned; and 

(II) The designated representative for any other purposes under 

paragraph 1200-03-09-.02(11). However, a person other than the 

designated representative may serve as the responsible official for 

non title IV activities. 

22. “Section 502(b)(10) changes” are changes that contravene an express permit 

term. Such changes do not include changes that would violate applicable 

requirements or contravene federally enforceable permit terms and conditions 

that are monitoring (including test methods), recordkeeping, reporting, or 

compliance certification requirements. 

23. “Stationary source” means any building, structure, facility, or installation that 

emits or may emit any regulated air pollutant or any pollutant listed under section 

112(b) of the Federal Act. 

24. “Research and Development Facility” means any stationary source whose 

primary purpose is to conduct research and development into new processes 

and products, where such source is operated under the close supervision of 

technically trained personnel and is not engaged in the manufacture of products 

for commercial sale in commerce, except in a de minimis manner. 

25. “Final Permit Action” means the action by the Technical Secretary to grant or 

deny an application, petition or objection submitted under the provisions of 

paragraph 1200-03-09-.02(11) pursuant to the following classifications: 

(i) An initial operating permit application 

(ii) A renewal operating permit application 

(iii) A modification - administrative amendment, minor modification, group 

processed minor modification or significant modification. 

(iv) A reopening for cause as determined by the Technical Secretary 

(v) A reopening of a permit in response to EPA’s request - on their own or in 

response to a citizen’s petition. 
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If the Technical Secretary’s actions are contested and brought to the Board 

for a hearing on the matter, “final permit action”, means any of the above 

actions taken by the Board. 

26. “Final Permit” means the permit arising from any final permit action. 

27. “Federally enforceable” means any emission standard and/or procedural 

requirement that can be enforced against an air contaminant source by EPA or 

citizens under authority granted them by the Federal Act. 

28. “Title I Modification” or “modification under any provision of Title I of the federal 

Act” means any modification under Section 111 and Section 112 of the Federal 

Act and any physical change or change in method of operations that is subject to 

the preconstruction regulations promulgated under Parts C and D of the Federal 

Act. 

29. “Timely” when used with respect to a submittal, means that the application was 

delivered to the Technical Secretary or deposited in the United States mail 

(evidenced by postmark) or recognized delivery service (evidenced by receipt) 

addressed to the Technical Secretary on or before the date it is due. However, 

the definition of “timely” with respect to timelines for action placed upon the 

Technical Secretary and/or Division shall not commence until receipt of the 

submittal in the office of the Technical Secretary. 

30. “Exceedance” shall mean a condition that is detected by monitoring that provides 

data in terms of an emission limitation or standard and that indicates that 

emissions (or opacity) are greater than the applicable emission limitation or 

standard (or less than the applicable standard in the case of a percent reduction 

requirement) consistent with any averaging period specified for averaging the 

results of the monitoring. 

31. “Excursion” shall mean a departure from an indicator range established for 

monitoring under this paragraph, consistent with any averaging period specified 

for averaging the results of the monitoring. 

32. “Subject to regulation” means, for any air pollutant, that the pollutant is subject to 

either a provision in the Clean Air Act, or a nationally-applicable regulation 

codified by the Administrator in subchapter C of Chapter I of Title 40 of the Code 

of Federal Regulations, that requires actual control of the quantity of emissions of 

that pollutant, and that such a control requirement has taken effect and is 

operative to control, limit or restrict the quantity of emissions of that pollutant 

released from the regulated activity. Except that: 

(i) Greenhouse gases (GHGs), the air pollutant defined in 40 CFR 86.1818–

12(a) as the aggregate group of six greenhouse gases: carbon dioxide, 

nitrous oxide, methane, hydrofluorocarbons, perfluorocarbons, and sulfur 

hexafluoride, shall not be subject to regulation unless, as of July 1, 2011, 

the GHG emissions are at a stationary source emitting or having the 

potential to emit 100,000 tpy CO2equivalent emissions. 

(ii) The term tpy CO2equivalent emissions (CO2e) shall represent an amount 

of GHGs emitted, and shall be computed by multiplying the mass amount 

of emissions (tpy), for each of the six greenhouse gases in the pollutant 

GHGs, by the gas's associated global warming potential published at Table 
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A–1 to subpart A of 40 CFR 98 - Global Warming Potentials, and summing 

the resultant value for each to compute a tpy CO2e. 

(iii) In the event that the U.S. Court of Appeals for the D.C. Circuit or the U.S. 

Supreme Court issues an order which would render GHG emissions not 

subject to regulation under the Prevention of Significant Deterioration, New 

Source Review provisions and/or the Title V operating permit program of 

the Federal Act, then GHGs shall not be subject to regulation, nor shall 

GHG emissions be required to be included in any construction or operating 

permit under this regulation 1200-03, as of the effective date of the Federal 

Register notice of vacatur. 

(iv) In the event that there is a change to Federal law that supersedes 

regulation of GHGs under the Prevention of Significant Deterioration, New 

Source Review provisions and/or the Title V operating permit program of 

the Federal Act, then GHGs shall not be subject to regulation, nor shall 

GHG emissions be required to be included in any construction or operating 

permit under this regulation 1200-03, as of the effective date of the change 

in Federal law. 

(c) Applicability - 

1. The following air contaminant sources are subject to the requirements of 

paragraph 1200-03-09-.02(11): 

(i) Any major source; 

(ii) Any source, including an area source, subject to a standard, limitation, or 

other requirement under section 111 of the Federal Act, Part 1200-03-07-

.07(4), part 1200-03-07-.07(5) or Chapter 1200-03-16; 

(iii) Any source, including an area source, subject to a standard or other 

requirement under section 112 of the Federal Act, chapter 1200-03-11, or 

chapter 1200-03-31 except that a source is not required to obtain a permit 

solely because it is subject to regulations or requirements under section 

112(r) of the Federal Act or Chapter 1200-03-32; 

(iv) Any affected source; and 

(v) Any source in a source category designated by the Administrator or 

Technical Secretary pursuant to the federal 40 C.F.R. Part 70 rules (FR 

Vol 57, No. 140, Tuesday, July 21, 1992 p 32295-32312) or this paragraph 

respectively. 

2. The following air contaminant sources are exempt from the requirements of 

paragraph 1200-03-09-.02(11): 

(i) All non-major sources including those subject to Section 112 of the Federal 

Act or chapter 1200-03-11 or Chapter 1200-03-31 and section 111 of the 

Federal Act or chapter 1200-03-16. If the Administrator promulgates future 

regulations which prohibit the exemption of a non-major source from the 

requirements of paragraph 1200-03-09-.02(11), such source will be so 

permitted by the Technical Secretary. Upon the Administrator’s written 

notification to the Technical Secretary that such sources must be permitted 

according to the provisions of this paragraph 1200-03-09-.02(11), the 
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Technical Secretary shall notify the sources that the applications are due 

within 180 days of his written notice. The Technical Secretary shall have 

up to 90 days to accomplish the notification commencing upon his 

notification from the Administrator. 

(ii) An affected source does not qualify for exemption from the provisions of 

paragraph 1200-03-09-.02(11) even if it is a non-major source. 

(iii) A solid waste incinerator unit that is required to obtain a permit pursuant to 

section 129(e) of the Federal Act does not qualify for exemption from the 

provisions of paragraph 1200-03-09-.02(11) even if it is a non-major 

source. 

(iv) All sources and source categories that would be required to obtain a permit 

solely because they are subject to 40 C.F.R. part 60, Subpart AAA - 

Standards of Performance for New Residential Wood Heaters are exempt 

from the provision of paragraph 1200-03-09-.02(11). 

(v) All sources and source categories that would be required to obtain a permit 

solely because they are subject to 40 C.F.R. part 61, Subpart M - National 

Emissions Standard for Hazardous Air Pollutants for Asbestos, section 

61.145, Standard for Demolition and Renovation are exempt from the 

provision of paragraph 1200-03-09-.02(11). 

3. Sources subject to paragraph 1200-03-09-.02(11) shall have all applicable 

requirements specified in their permit for all relevant emission units in the major 

source except those emission units which are exempted from permitting in rule 

1200-03-09-.04. 

4. Sources subject to paragraph 1200-03-09-.02(11) must declare their fugitive 

emissions in their permit application and the Technical Secretary must regulate 

the fugitive emissions as terms of their permit. 

5. Unless specifically exempted elsewhere in this paragraph 1200-03-09-.02(11), 

research and development facilities shall be considered as a separate and 

discrete stationary source in determining whether such facilities constitute a 

major source subject to the operating permit requirements. Except where 

research and development facilities by themselves constitute a major source, 

such facilities shall be exempt from the permit requirements of paragraph 1200-

03-09-.02(11), but not from any other permitting requirements of Chapter 1200-

03-09. 

(d) Permit Applications - 

1. The owner or operator of a source subject to paragraph 1200-03-09-.02(11) has 

a duty to submit a timely and complete permit application in accordance with this 

part. The timelines for application under the provision of paragraph 1200-03-09-

.02(11) supersede the application deadlines specified in paragraphs 1200-03-09-

.02(1), (3) and (10). 

(i) Timely application. 

(I) A timely initial application for a source subject to the provisions of 

paragraph 1200-03-09-.02(11) is one that is submitted within 120 

days of the Technical Secretary’s written notification to the source 
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November, 2011 (Revised) 116

that such application must be filed or as stipulated on their 

construction permit. The Technical Secretary will not require an 

application to be filed, either by written notification or imposition of a 

construction permit condition until the Administrator approves the 

Governor’s Part 70 program submittal, filed in accordance with 40 

C.F.R. Part 70.4. Application notices shall be served over a period 

of time in accordance with the Board’s approved schedule. The 

Technical Secretary shall submit a proposed schedule for Board 

approval and incorporation into the State Major Source Fee 

Workload Analysis as a Board Order no later than March 1, 1994. 

(II) Sources subject to the provisions of paragraph 1200-03-09-.01(4), 

paragraph 1200-03-09-.01(5) and/or rule 1200-03-31-.05 apply for 

an operating permit according to the schedule prescribed on their 

construction permit. The Technical Secretary shall allow sufficient 

time to prepare the application, but in no case shall the time allotted 

to file an application exceed 360 days commencing upon startup of 

the constructed source. 

(III) A timely renewal application for a source subject to the provisions of 

paragraph 1200-03-09-.02(11) is one that is submitted at least 180 

days, but no more than 270 days prior to the expiration of an existing 

major source operating permit. 

(IV) Applications for initial phase II acid rain permits shall be submitted to 

the Technical Secretary by January 1, 1996 for sulfur dioxide, and by 

January 1, 1998 for nitrogen oxides. 

(V) Construction occurring under the provisions of rule 1200-03-09-.01 at 

a source already in possession of a major source operating permit 

issued pursuant to the provisions of paragraph 1200-03-09-.02(11) 

shall be governed by the following: 

I. Sources shall designate in their construction permit application 

the route that they desire to follow for the purposes of 

incorporating the newly constructed sources into their existing 

operating permit. The Technical Secretary shall use that 

information to prepare the operating permit application 

submittal deadlines in their construction permit. 

II. Sources desiring the permit shield shall choose the 

administrative amendment route of subpart 1200-03-09-

.02(11)(f)(4)(iv) or the significant modification route of subpart 

1200-03-09-.02(11)(f)5(iv). 

III. Sources desiring expediency instead of the permit shield shall 

choose the minor permit modification procedure route of 

Subpart 1200-03-09-.02(f)5(ii) or group processing of minor 

modifications under the provisions of subpart 1200-03-09-

.02(11)(f)5(iii) as applicable to the magnitude of their 

construction. 

(VI) Existing sources making the transition from an existing operating 

permit to an initial major source operating permit consistent with the 

provisions of part 1200-03-09-.02(11)(a)1 shall continue to construct 
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November, 2011 (Revised) 117

under the provision of rule 1200-03-09-.01 and supplement their 

major source operating permit application in accordance with the 

provisions of part 1200-03-09-.02(11)(d)2. 

(VII) Existing sources that were not initially subject to the provisions of 

paragraph 1200-03-09-.02(11), but later became subject through a 

change in operations such that their potential to emit crosses the 

applicability threshold of paragraph 1200-03-09-.02(11), shall file 

their major source operating permit application within 360 days of 

their start up of such operations that caused them to cross the major 

source operating permit applicability provisions of paragraph 1200-

03-09-.02(11). 

(ii) Complete Application 

(I) The owner or operator of a source that is subject to the provisions of 

paragraph 1200-03-09-.02(11) shall file a complete application for a 

major source operating permit. Applications shall be made on forms 

approved by the Board and available from the Technical Secretary. 

The applications shall be evaluated for completeness by using the 

Board’s approved checklist. The checklist list shall be made 

available to applicants to assist them in preparing a complete 

application. “Insignificant Activities” designated as those activities or 

emission / production thresholds listed at rule 1200-03-09-.04 and 

their listing, if required under rule 1200-03-09-.04, in the permit 

application shall be governed by the Board’s approved forms, 

instruction sheets and check lists. In addition to the information 

requested on the application forms, the applicant shall provide 

sufficient information to determine which applicable requirements will 

apply to the source and whether or not the source is in compliance 

with the applicable requirements. The application must be signed 

and dated by a responsible official attesting to its accuracy in 

accordance with part 1200-03-09-.02(11)(d)4. 

I. The application shall be dated and stamped as to its date of 

receipt in the Office of the Technical Secretary. 

II. Sixty (60) days will be allotted to the Technical Secretary from 

his receipt of the application for the purpose of determining 

whether or not the application is complete according to the 

Board-approved completeness checklist. This timeline is not 

applicable to minor modifications conducted under the 

provisions of subparts 1200-09-.02(11)(f) 5.(ii) & (iii). 

III. The applicant must file an application for the entire source 

upon initial application and for renewal applications. 

Applications for a permit revision need only address the 

portions of the source impacted by the revision. 

IV. The Technical Secretary shall have up to 60 days from his 

receipt of the application to review an application for 

completeness. At the conclusion of that period, the Technical 

Secretary shall notify the applicant of his findings in writing. In 

the absence of his timely notification that an application is 

incomplete, an application will be considered to be complete. 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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Such status is limited to only provide enforcement immunity for 

the applicant for failing to have filed a complete application and 

to place them in an application shield status. Should the 

Technical Secretary find that additional information is 

necessary to properly evaluate the application, the applicant 

must provide the additional information in accordance with the 

Technical Secretary’s written request which will set a 

reasonable deadline to provide the information. The source 

may operate under the authority of their most recent permit 

consistent with the application shield provisions of part 1200-

03-09-.02(11)(f)2, provided that the application is determined 

or deemed to be complete and further provided that the 

applicant submits any requested additional information by the 

deadline specified by the Technical Secretary. However, the 

source shall abide by the terms of its most recently issued 

permit until final action is taken upon their application. 

(iii) Confidential Information: 

 A source which claims that its information is confidential is subject to a 

review of confidentiality. If the Technical Secretary determines that the 

information should not be protected as confidential, he shall notify the 

source in writing and hold the information in protected status until such 

time that the Board can resolve the dispute via a contested case hearing. 

During this time of dispute, the applicant will be required to make a direct 

submittal of the information to the Administrator if the EPA desires to 

review the disputed information being used to prepare the permit. The 

following information shall not be considered confidential: 

(I) The composition and quantity of air contaminants emitted from the 

facility. 

(II) The applicable requirements that a source must fulfill and the 

source’s compliance status with each applicable requirement. 

(III) The business name, address, and location of the source and the 

name of the source’s responsible official. 

(IV) Any other information which the Board may determine through a 

hearing of the matter. 

2. The owner or operator of a source subject to paragraph 1200-03-09-.02(11) has 

a duty to supplement or correct their application upon discovery that their 

application was incorrect or failed otherwise to address any facts relevant to 

permitting at the source. The applicant must also provide additional information 

as necessary to address any requirements that become applicable to the source 

after the date that it has filed a complete application but prior to the release of a 

draft permit. 

3. The Board has approved and mandated the use of permit applications, 

instruction sheets and a completeness checklist which should facilitate the 

applicant’s duty to provide all of the information required by 40 C.F.R. Part 

70.5(c) and (d). Those requirements are printed on the completeness checklist 

and that information is the primary basis by which an application shall be judged 

for completeness. Application must be made using the forms available from the 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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Technical Secretary. The Technical Secretary may request a refilling of 

applications that are illegible, vague or ambiguous. In such cases, the timelines 

for action on the application will restart when the clarified application is received. 

4. Any application form, report, or compliance certification submitted pursuant to the 

requirements of paragraph 1200-03-09-.02(11) shall contain certification by a 

responsible official of truth, accuracy and completeness. This certification and 

any other certification required under paragraph 1200-03-09-.02(11) shall state 

that, based on information and belief formed after reasonable inquiry, the 

statements and information in the document are true, accurate and complete. 

(e) Permit Content - 

1. The applicant shall propose the number of permits that they want and the 

Technical Secretary shall determine the number of permits that a facility is to 

receive. In determining the number of permits, consideration shall be given to the 

ease of evaluating compliance at a complex facility. To the extent possible, a 

complex facility should be divided into major operating divisions with one permit 

per division. Each permit issued by the Technical Secretary pursuant to the 

provisions of paragraph 1200-03-09-.02(11) shall include the following elements: 

(i) Emission limitations and standards, including those operational 

requirements and limitations that assure compliance with all applicable 

requirements at the time of permit issuance. 

(I) The permit shall specify and reference the origin of and authority for 

each term or condition, and identify any difference in form as 

compared to the applicable requirement upon which the term or 

condition is based. 

(II) The permit shall state that, where an applicable requirement of the 

Federal Act is more stringent than the Federal regulations 

promulgated under title IV of the Federal Act, both provisions shall 

be incorporated into the permit and shall be enforceable by the 

Administrator. 

(III) Sources that qualify and choose an alternate emission standard 

pursuant to the provisions of chapter 1200-03-21 shall be issued a 

permit that contains the alternate standard with sufficient provisions 

to ensure that any resulting emission limit has been demonstrated to 

be quantifiable, accountable, enforceable and based upon replicable 

procedures. 

(ii) Permit Duration - The Technical Secretary shall issue permits for a fixed 

term of 5 years in the case of affected sources, and for a term not to 

exceed 5 years in the case of all other sources. Notwithstanding this 

requirement, the Technical Secretary shall issue permits for solid waste 

incineration units combusting municipal waste subject to standards under 

section 129(e) of the Federal Act for a period not to exceed 12 years and 

shall review such permits at least every 5 years. 

(iii) Monitoring and related recordkeeping and reporting requirements: 

(I) Monitoring Requirements 
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I. The Technical Secretary shall prescribe monitoring and related 

recordkeeping and reporting requirements in accordance with 

the powers granted to him at chapter 1200-03-10. 

II. Where the applicable requirement does not require periodic 

testing or instrumental or noninstrumental monitoring (which 

may consist of recordkeeping designed to serve as 

monitoring), periodic monitoring shall be required sufficient to 

yield reliable data from the relevant time period that are 

representative of the source’s compliance with the permit, as 

required pursuant to item 1200-03-09-.02(11)(e)1(iii)(III). Such 

monitoring requirements shall assure use of such terms, test 

methods, units, averaging periods, and other statistical 

conventions consistent with the applicable requirements. 

Recordkeeping provisions shall be sufficient to meet the 

requirements of this sub-item 1200-03-09-.02(11)(e)(1)(iii)(I)II if 

it is the judgment of the Technical Secretary that 

recordkeeping alone is sufficient to prove compliance; and 

III. As necessary, the Technical Secretary may impose 

requirements concerning the use, maintenance, and where 

appropriate, installation of monitoring equipment or methods. 

(II) With respect to recordkeeping, the permit shall incorporate all 

applicable recordkeeping requirements and require, where 

applicable, the following: 

I. Records of required monitoring information that include the 

following: 

A. The date, place as defined in the permit, and time of 

sampling or measurements; 

B. The date(s) analyses were performed; 

C. The company or entity that performed the analysis; 

D. The analytical techniques or methods used; 

E. The results of such analyses; and 

F. The operating conditions as existing at the time of 

sampling or measurement. 

II. Retention of records of all required monitoring data and 

support information for a period of at least 5 years from the 

date of the monitoring sample, measurement, report, or 

application. Support information includes all calibration and 

maintenance records and all original strip chart recordings for 

continuous monitoring instrumentation, and copies of all 

reports required by the permit. 

(III) With respect to reporting, the permit shall incorporate all applicable 

reporting requirements and require the following: 
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I. Submittal of reports of any required monitoring at least every 

180 days. All instances of deviations from permit requirements 

must be clearly identified in such reports. All required reports 

must be certified by a responsible official consistent with part 

1200-03-09-.02(11)(d)4. 

II. Prompt reporting of deviations from permit requirements, 

including those attributable to upset, malfunction or emergency 

conditions as defined in the permit and/or chapter 1200-03-20. 

The provisions of Rule 1200-03-20-.03 shall define “prompt 

reporting” for periods in between the 180 day reports in sub 

item 1200-03-09-.02(11)(e)1(iii)(III)I. 

III. Digital data accumulation which utilizes valid data compression 

techniques shall be acceptable for compliance determination 

as long as such compression does not violate an applicable 

requirement and its use has been approved in advance by the 

Technical Secretary. 

(iv) Permits issued to affected sources shall contain a permit condition that 

prohibits emissions exceeding any allowances that the source lawfully 

holds under title IV of the Federal Act of the Federal regulations 

promulgated thereunder and chapter 1200-03-30. 

(I) The permittee shall not be subject to the permit revision 

requirements of subparagraph 1200-03-09-.02(11)(f) for increases in 

emissions that are authorized by allowances acquired pursuant to 

the acid rain program, provided that such increases do not require a 

permit revision under any other applicable requirement. 

(II) No limit shall be placed on the number of allowances held by the 

source. The source may not, however, use allowances as a defense 

to noncompliance with any other applicable requirement. 

(III) Any such allowance shall be accounted for according to the 

procedures established in the Federal regulations promulgated 

under title IV of the Federal Act and in State rules promulgated in 

chapter 1200-03-30. 

(v) The permit requirements of a permit issued pursuant to paragraph 1200-

03-09-.02(11) are severable. A dispute regarding one or more permit 

requirements in such a permit does not invalidate or otherwise excuse a 

permittee from their duty to comply with the remaining portion of the permit. 

(vi) The following general provisions shall appear on each permit issued 

pursuant to paragraph 1200-03-09-.02(11): 

(I) The permittee shall comply with all conditions of its permit. Except 

for requirements specifically designated herein as not being federally 

enforceable, non-compliance with the permit requirements is a 

violation of the Federal Act and the Tennessee Air Quality Act and is 

grounds for enforcement action; for a permit termination, revocation 

and reissuance, or modification; or for denial of a permit renewal 

application. Non-compliance with permit conditions specifically 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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designated herein as not being federally enforceable is a violation of 

the Tennessee Air Quality Act and may be grounds for these actions. 

(II) The need to halt or reduce activity is not a defense for 

noncompliance. It shall not be a defense for a permittee in an 

enforcement action that it would have been necessary to halt or 

reduce the permitted activity in order to maintain compliance with the 

conditions of the permit. However, nothing in this item shall be 

construed as precluding consideration of a need to halt or reduce 

activity as a mitigating factor in assessing penalties for 

noncompliance if the health, safety or environmental impacts of 

halting or reducing operations would be more serious than the 

impacts of continuing operations. 

(III) The permit may be modified, revoked, reopened, and reissued, or 

terminated for cause. The filing of a request by the permittee for a 

permit modification, revocation and reissuance, or termination, or of 

a notification of planned changes or anticipated noncompliance does 

not stay any permit condition. 

(IV) The permit does not convey any property rights of any sort, or any 

exclusive privilege. 

(V) The permittee shall furnish to the Technical Secretary, within a 

reasonable time, any information that the Technical Secretary may 

request in writing to determine whether cause exists for modifying, 

revoking and reissuing, or termination of the permit or to determine 

compliance with the permit. Upon request, the permittee shall also 

furnish to the Technical Secretary copies of records required to be 

kept by the permit. If the permittee claims that such information is 

confidential, the Technical Secretary may review that claim and hold 

the information in protected status until such time that the Board can 

hear any contested proceedings regarding confidentiality disputes. If 

the information is desired by EPA, the permittee may mail the 

information directly to EPA. 

(vii) A permittee must pay fees in accordance with rule 1200-03-26.02 as a 

condition of its permit. 

(viii) A permit revision will not be required under any approved economic 

incentives, marketable permits, emissions trading and other similar 

programs or process for changes that are provided for in the permit. 

(ix) Reasonable anticipated operating scenarios may be established in the 

permit to address variable operating modes at a source provided that each 

scenario is fully addressed in the source’s application. Such scenarios are 

permissible only if: 

(I) The source, contemporaneously with making a change from one 

operating scenario to another, shall record in a log at the permitted 

facility the scenario under which it is operating; 

(II) The terms and conditions of each such alternate scenario shall meet 

all applicable requirements and the rules of Division 1200-03. The 

Technical Secretary is authorized to extend the permit shield 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 123

described under part 1200-03-09-.02(11)(e)6 to all terms and 

conditions under each operating scenario. 

(x) An applicant in possession of a certificate of alternate emission control 

issued pursuant to the provisions of chapter 1200-03-21 may trade 

emissions increases and decreases in the permitted facility to the extent 

that said certificate allows for such trading. The certificate and its terms 

shall be made part of the permit and must conform to the following 

requirements: 

(I) The certificate’s terms shall include all terms required under part 

1200-03-09-.02(11)(e)1 and part 1200-03-09-.02(11)(e)3 to 

determine compliance; and 

(II) The certificate terms must meet all other applicable requirements 

and the rules of Division 1200-03 that were not altered by the 

certificate. The Technical Secretary is authorized to extend the 

permit shield described in part 1200-03-09-.02(11)(e)6 to all terms 

and conditions that allow such increase and decreases in emissions. 

2. A permit issued under the provisions of paragraph 1200-03-09-.02(11) is a permit 

issued pursuant to the requirements of title V of the Federal Act and its 

implementing Federal regulations promulgated at 40 C.F.R. part 70. As such, the 

permittee is advised that: 

(i) All terms and conditions in a permit issued pursuant to paragraph 1200-03-

09-.02(11) including any provisions designed to limit a source’s potential to 

emit, are enforceable by the Administrator and citizens under the Federal 

Act. 

(ii) Notwithstanding subpart 1200-03-09-.02(11)(e)2(i), the Technical 

Secretary shall specifically designate as not being federally enforceable 

under the Federal Act any terms and conditions included in the permit that 

are not required under the Federal Act or under any of its applicable 

requirements. Terms and conditions so designated are not subject to the 

requirements of subparagraphs 1200-03-09-.02(11)(f) and 1200-03-09-

.02(11)(g), other than those contained in this part 1200-03-09-.02(11)(e)2. 

3. All permits issued pursuant to paragraph 1200-03-09-.02(11) shall contain the 

following elements with respect to compliance: 

(i) Consistent with subpart 1200-03-09-.02(11)(e)1(iii), compliance 

certification, testing, monitoring, reporting, and recordkeeping requirements 

sufficient to assure compliance with the terms and conditions of the permit. 

Any document (including reports) required by a permit issued pursuant to 

paragraph 1200-03-09-.02(11) shall contain a certification by a responsible 

official that meets the requirements of part 1200-03-09-.02(11)(d)4. 

(ii) Inspection and entry requirements that require that, upon presentation of 

credentials and other documents as may be required by law, the permittee 

shall allow the Technical Secretary or his authorized representative to 

perform the following for the purposes of determining compliance with the 

permit applicable requirements: 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 124

(I) Enter upon the permittee’s at reasonable times premises where a 

source subject to paragraph 1200-03-09-.02(11) is located or 

emissions-related activity is conducted, or where records must be 

kept under the conditions of the permit; 

(II) Have access to and copy, at reasonable times, any records that 

must be kept under the conditions of the permit; 

(III) Inspect at reasonable times any facilities, equipment (including 

monitoring and air pollution control equipment), practices, or 

operations regulated or required under the permit; and 

(IV) As authorized by chapter 1200-03-10, sample or monitor at 

reasonable times substances or parameters for the purpose of 

assuring compliance with the permit or applicable requirements. 

(V) “Reasonable times” shall be considered to be customary business 

hours unless reasonable cause exists to suspect noncompliance 

with the Act, Division 1200-03 or any permit issued pursuant thereto 

and the Technical Secretary specifically authorizes an inspector to 

inspect a facility at any other time. 

(iii) A schedule of compliance consistent with that declared by the applicant or 

as otherwise modified by the Technical Secretary utilizing the Board 

approved application forms in part 1200-03-09-.02(11)(d)3. 

(iv) The requirement that the permittee submit progress reports consistent with 

an applicable schedule of compliance and part 1200-03-09-.02(11)(d)3. 

The reports shall be submitted at least semiannually, or at a more frequent 

period if specified in the applicable requirement or by the Technical 

Secretary. Such progress reports shall contain the following: 

(I) Dates for achieving the activities, milestones, or compliance required 

in the schedule of compliance, and dates when such activities, 

milestones or compliance were achieved; and 

(II) An explanation of why any dates in the schedule of compliance were 

not or will not be met, and any preventative or corrective measures 

adopted. 

(v) The permit shall include requirements for compliance certification with 

terms and conditions contained in the permit, including emission 

limitations, standards, or work practices. Specifically, the permits shall 

include each of the following: 

(I) The frequency (not less than annually or such more frequent periods 

as specified in the applicable requirement or by the Technical 

Secretary) of submissions of compliance certifications; 

(II) A means of monitoring the compliance of the source with its 

emission limitations, standards and work practices. The means of 

monitoring shall conform to subpart 1200-03-09-.02(11)(e)1(iii). 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 125

(III) A requirement that compliance certification include all of the following 

(provided that the identification of applicable information may crossreference the permit or previous reports, as applicable): 

I. The identification of each term or condition of the permit that is 

the basis of the certification; 

II. The identification of the method(s) or other means used by the 

owner or operator for determining the compliance status with 

each term and condition during the certification period, and 

whether such methods or other means provide continuous or 

intermittent data. Such methods and other means shall 

include, at a minimum, the methods and means required under 

subpart 1200-03-09-.02(11)(e)1.(iii). If necessary, the owner 

or operator also shall identify any other material information 

that must be included in the certification to comply with section 

113(c)(2) of the Federal Act (see sub-item V), which prohibits 

knowingly making a false certification or omitting material 

information; 

III. The status of compliance with the terms and conditions of the 

permit for the period covered by the certification, based on the 

method or means designated in sub-item 1200-03-09-

.02(11)(e)3.(v)(III)II. The certification shall identify each 

deviation and take it into account in the compliance 

certification. The certification shall also identify as possible 

exceptions to compliance any periods during which 

compliance is required and in which an excursion or 

exceedance as defined under subparagraph 1200-03-09-

.02(11)(b) occurred; and 

IV. Such other facts as the permitting authority may require to 

determine the compliance status of the source. 

V. SECTION 113(c)(2) of the Federal Act SEC. 113. FEDERAL 

ENFORCEMENT. 

A. Criminal Penalties.- 

B. Any person who knowingly - 

(A) makes any false material statement, 

representation, or certification in, or omits material 

information from, or knowingly alters, conceals, or 

fails to file or maintain any notice, application, 

record, report, plan, or other document required 

pursuant to this Act to be either filed or maintained 

(whether with respect to the requirements 

imposed by the Administrator or by a State); 

(B) fails to notify or report as required under this Act; 

or 

(C) falsifies, tampers with, renders inaccurate, or fails 

to install any monitoring device or method required 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 126

to be maintained or followed under this Act shall, 

upon conviction, be punished by a fine pursuant to 

title 18 of the United States Code, or by 

imprisonment for not more than 2 years, or both. 

If a conviction of any person under this paragraph 

is for a violation committed after a first conviction 

of such person under this paragraph, the 

maximum punishment shall be doubled with 

respect to both the fine and imprisonment. 

(IV) A requirement that all compliance certifications be submitted to the 

Administrator as well as to the Technical Secretary; and 

(V) Such additional requirements as may be specified pursuant to 

sections 114(a)(3) and 504(b) of the Federal Act. 

(vi) Any other compliance requirement deemed necessary by the Technical 

Secretary may be imposed in the permit. 

4. General Permits 

(i) The Air Pollution Control Board may issue general permits for the purpose 

of covering numerous similar sources that are owned or operated by 

different persons at different facilities. A general permit satisfies the 

definition of a rule pursuant to the Uniform Administrative Procedures Act, 

T.C.A. §4-5-101 et seq. As such, general permits must be promulgated as 

rules. The general permit must be subjected to the notice and an 

opportunity for public participation, as specified in part 1200-03-09-

.02(11)(f)8. Further, the general permit must comply with the other 

requirements applicable to permits issued pursuant to paragraph 1200-03-

09-.02(11). The permit must specify the eligibility criteria by which sources 

may qualify for the general permit. The general permits shall state the 

process by which a source notifies the Technical Secretary that it intends 

to be authorized under the general permit. The general permit shall state 

the means by which the Technical Secretary confirms that the source is 

covered by the general permit or that the source requires an individual 

permit. Notwithstanding the shield provisions of part 1200-03-09-

.02(11)(e)6, the source operating under the provisions of a general permit 

shall be subject to enforcement action for operation without the permit 

required by paragraph 1200-03-09-.02(11) if the source requested 

coverage under a general permit by representing themselves to be eligible 

for a general permit in their notice of intent and it is later determined that 

the source does not qualify for the eligibility terms and conditions of the 

general permit. General permits shall not be authorized for affected 

sources under the acid rain program unless otherwise provided in 

regulations promulgated under title IV of the federal Act or chapter 1200-

03-30. 

(ii) Sources subject to the provisions of paragraph 1200-03-09-.02(11) that 

would qualify for a general permit must submit a notice of intent to the 

Technical Secretary for coverage under the terms of the general permit or 

must apply for the standard major stationary source operating permit 

consistent with subparagraph 1200-03-09-.02(11)(d) according to their 

choice of permitting routes as detailed in this part 1200-03-09-.02(11)(e)4. 

The Board may, in the general permit, provide for the requirements for the 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 127

notice of intent which may deviate from the requirements of subparagraph 

1200-03-09-.02(11)(d), provided that they meet the requirements of title V 

of the federal Act, and include all information necessary to determine 

qualifications for and to assure compliance with, the general permit. When 

the Technical Secretary confirms that a source may operate under the 

terms of a general permit, that action is not subject to public participation 

under part 1200-03-09-.02(11)(f)8 and shall not be a final permit action for 

purposes of judicial review. 

5. Temporary Sources 

The Technical Secretary may issue a single permit authorizing emissions from 

similar operations by the same source owner or operator at multiple temporary 

locations. The operation must be temporary and involve at least one change of 

location during the term of the permit. No affected source shall be permitted as a 

temporary source. Permits for temporary sources shall include the following: 

(i) Conditions that will assure compliance with all applicable requirements at 

all authorized locations: 

(ii) Requirements that the owner or operator notify the Technical Secretary at 

least 10 days in advance of each change in location; and 

(iii) Conditions that assure compliance with all other provisions of this 

paragraph 1200-03-09-.02(11). 

6. Permit Shield 

(i) Except as provided in paragraph 1200-03-09-.02(11), the Technical 

Secretary shall if requested by the applicant, expressly include in a permit 

issued pursuant to paragraph 1200-03-09-.02(11) a provision stating that 

compliance with the conditions of the permit shall be deemed compliance 

with any applicable requirements as of the date of permit issue, provided 

that: 

(I) Such applicable requirements are included and are specifically 

identified in the permit; or 

(II) The Technical Secretary, in acting on the permit application or 

revision, determines in writing that other requirements specifically 

identified are not applicable to the source, and the permit includes 

the determination or a concise summary thereof. 

(ii) A permit issued pursuant to paragraph 1200-03-09-.02(11) that does not 

expressly state that a permit shield exists shall be presumed not to provide 

such a shield. 

(iii) Nothing in this part or in any permit issued pursuant to paragraph 1200-03-

09-.02(11) shall alter or affect the following: 

(I) The provisions of section 303 of the federal Act (emergency orders), 

including the authority of the Administrator under that section. 

Similarly, the provisions of T.C.A. 68-201-109 (emergency orders) 

including the authority of the Governor under the section; 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 128

(II) The liability of an owner or operator of a source for any violation of 

applicable requirements prior to or at the time of permit issuance; 

(III) The applicable requirements of the acid rain program, consistent with 

section 408(a) of the federal Act; or 

(IV) The ability of EPA to obtain information from a source pursuant to 

section 114 of the federal Act. 

7. Emergency Provisions 

(i) Definition An “emergency” means any situation arising from sudden and 

reasonably unforeseeable events beyond the control of the source, 

including acts of God, which situation requires immediate corrective action 

to restore normal operation, and that causes the source to exceed a 

technology based emission limitation under the permit issued pursuant to 

paragraph 1200-03-09-.02(11), due to unavoidable increases in emissions 

attributable to the emergency. An emergency shall not include 

noncompliance to the extent caused by improperly designed equipment, 

lack of preventative maintenance, careless or improper operation, or 

operator error. For the purposes of this definition, “permit issued pursuant 

to paragraph 1200-03-09-.02(11)” shall also include any construction 

permit issued under the provisions of rule 1200-03-09-.01 to a source 

subject to the permitting requirements of paragraph 1200-03-09-.02(11). 

(ii) An emergency constitutes an affirmative defense to an enforcement action 

brought against a source for noncompliance with such technology based 

emission limitations if the conditions of subpart 1200-03-09-.02(II)(e)7(iii) 

are met. 

(iii) The affirmative defense of the emergency shall be demonstrated through 

properly signed, contemporaneous operating logs, or other relevant 

evidence that: 

(I) An emergency occurred and that the permittee can identify the 

probable cause(s) of the emergency. “Probable” must be supported 

by a credible investigation into the incident that seeks to identify the 

causes and results in an explanation supported by generally 

accepted engineering or scientific principles. 

(II) The permitted facility was at the time being properly operated. In 

determining whether or not a facility was being properly operated, 

the Technical Secretary shall examine the source’s written standard 

operating procedures which were in effect at the time of the 

noncompliance and any other code as detailed below that would be 

relevant to preventing the noncompliance. Adherence to the source’s 

standard operating procedures will be the test of adequate 

preventative maintenance, careless operation, improper operation or 

operator error to the extent that such adherence would prevent 

noncompliance. The source’s failure to follow recognized standards 

of practice to the extent that adherence to such a standard would 

have prevented noncompliance will disqualify the source from any 

claim of an emergency and an affirmative defense. The Board will 

specifically recognize the National Fire Protection Association codes, 

the codes of the American National Standards Institute, the codes of 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 129

the American Society of Testing Materials, the codes of the United 

States Department of Transportation, the codes of the United States 

Occupational Safety and Health Administration and any State of 

Tennessee statute or regulation if applicable. Recognition of these 

codes, statutes, regulations and standards of practice is limited to 

the test of determining whether or not a facility was operated 

properly for the purposes of preventing actual (not potential) 

noncompliance and in no way should it be viewed as the Board’s 

imposition of the standards administered by other agencies, Boards, 

or organizations. 

(III) During the period of the emergency, the permittee took all 

reasonable steps to minimize levels of emissions that exceeded the 

emission standards, or other requirements in the permit. 

(IV) The permittee submitted notice of the emergency to the Technical 

Secretary according to the notification criteria for malfunctions in rule 

1200-03-20-.03. For the purposes of this item 1200-03-09-

.02(11)(e)7(iii)(IV), “emergency” shall be substituted for 

“malfunctions(s)” in rule 1200-03-20-.03 to determine the relevant 

notification threshold. The notice shall include a description of the 

emergency, any steps taken to mitigate emissions, and corrective 

actions taken. 

(iv) In any enforcement proceeding the permittee seeking to establish the 

occurrence of an emergency has the burden of proof. 

(v) The provisions of this part 1200-03-09-.02(11)(e)7 are in addition to any 

emergency, malfunction or upset requirement contained in Division 1200-3 

or other applicable requirement. 

(f) Permit Issuance, Renewal, Reopening and Revision

1. Action on an Application 

(i) A permit, permit modification, or renewal may be issued only if all of the 

following conditions have been met: 

(I) The Technical Secretary has received a complete application for a 

permit, permit modification, or permit renewal, except that a 

complete application need not be received before issuance of a 

general permit under part 1200-03-09-.02(11)(e)4; 

(II) Except for modifications qualifying for the minor permit modification 

procedures under subpart 1200-03-09-.02(11)(f)5(ii) or subpart 

1200-03-09-.02(11)(f)5(iii), the Technical Secretary has complied 

with the requirements for public participation under part 1200-03-09-

.02(11)(f)8; 

(III) The Technical Secretary has complied with the requirements for 

notifying and responding to affected States under part 1200-03-09-

.02(11)(g)2; 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.02, continued) 

November, 2011 (Revised) 130

(IV) The conditions of the permit provide for compliance with all 

applicable requirements and the requirements of paragraph 1200-

03-09-.02(11); 

(V) The Administrator has received a copy of the proposed permit and 

any notices required under part 1200-03-09-.02(11)(g)1 and part 

1200-03-09-.02(11)(g)2, and has not objected to the issuance of the 

permit under part 1200-03-09-.02(11)(g)3 within the time period 

specified therein. 

(ii) Except as otherwise required by subparagraph 1200-3-30-.06(4)(d) 

affected sources shall have final action taken on permit applications filed 

with the 

 Technical Secretary within 18 months of the date that they file their 

complete permit application. The Technical Secretary is authorized to set 

the due date of their initial applications to mesh with their Phase II acid rain 

permit applications such that their initial permit will contain both acid rain 

requirements and standard emission/procedural requirements. The 

Technical Secretary is instructed to consider any guidance promulgated by 

the Administrator relative to meshing Title V and Title IV at affected 

facilities when setting such application submittal dates. 

(iii) To the extent practicable, the Technical Secretary shall give priority to the 

processing of operating permit applications to sources which are subject to 

either paragraph 1200-03-09-.01(4) or paragraph 1200-03-09-.01(5). 

Sources subject to paragraph 1200-03-09-.02(11) shall have final action 

taken on permit applications filed with the Technical Secretary within 18 

months of the date that their application is deemed complete. 

(iv) The Technical Secretary shall provide notice to the applicant of whether 

the application is complete within 60 days of receipt of an application in his 

office. Unless the Technical Secretary requests additional information or 

otherwise notifies the applicant of incompleteness within 60 days of receipt 

of an application, the application shall be deemed complete. For 

modifications processed through minor permit modification procedures, 

such as those in subpart 1200-03-09-.02(11)(f)5(ii) or subpart 1200-03-09-

.02(11)(f)5(iii) a completeness determination shall not be required of the 

Technical Secretary. An application that defaults to complete status 

through the Technical Secretary’s failure to notify the applicant of its 

incompleteness within 60 days of his receipt, does not relieve the applicant 

of the duty to provide such supplemental information that the Technical 

Secretary must have in order to process the permit application. 

(v) The Technical Secretary shall provide a statement that sets forth the legal 

and factual basis for the draft permit conditions (including references to the 

applicable statutory or regulatory provisions). The Technical Secretary 

shall send this statement to EPA and to any other person provided that 

such person requests the statement in writing and pays a fee sufficient to 

pay for postage, copying costs and staff time to respond to the request. 

(vi) The submittal of a complete operating permit application shall not affect the 

requirement that any source have a construction permit as required under 

rule 1200-03-09-.01. 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.02, continued) 

November, 2011 (Revised) 131

2. Requirement for a Permit 

 Except as provided in the following sentence, item 1200-03-09-.02(11)(a)4(i)(I) 

Section 502(b)(10) changes, and item 1200-03-09-.02(11)(f)5(ii)(V) and item 

1200-03-09-.02(11)(f)5(iii)(V), no source subject to paragraph 1200-03-09-

.02(11) may operate after the time that it is required to submit a timely and 

complete application as provided for in subpart 1200-03-09-.02(11)(d)1(i), except 

in compliance with a permit issued pursuant to paragraph 1200-03-09-.02(11). 

Consistent with the provisions of parts 1200-03-09-.02(11)(a)1 and 2, a source 

subject to paragraph 1200-03-09-.02(11) that submits a timely and complete 

application for permit issuance (including for renewal) will not be considered in 

violation of paragraph 1200-03-09-.02(11) until the Technical Secretary takes 

final action on the permit application, except as otherwise noted in paragraph 

1200-03-09-.02(11). If the final action on a permit by the Technical Secretary has 

been appealed to the Board as a contested case, the application shield will 

remain in effect until final action of the Board. This protection shall cease to 

apply if, subsequent to the completeness determination made pursuant to 

subpart 1200-03-09-.02(11)(f)1(iv), and as required by subpart 1200-03-09-

.02(11)(d)1(ii), the applicant fails to submit by the deadline specified in writing by 

the Technical Secretary any additional information identified as being needed to 

process the application. 

3. Permit Renewal and Expiration 

(i) Permits that are being renewed are subject to the same procedural 

requirements, including those for public participation, affected State and 

EPA review, that apply to initial permit issuance; and 

(ii) Consistent with the provisions of part 1200-03-09-.02(11)(a)2 permit 

expiration terminates the source’s right to operate unless a timely and 

complete renewal application has been submitted consistent with part 

1200-03-09-.02(11)(f)2 and item 1200-03-09-.02(11)(d)1(i)(III). 

4. Administrative Permit Amendments 

(i) An “administrative permit amendment” is a permit revision that: 

(I) Corrects typographical errors; 

(II) Identifies a change in the name, address, or phone number of any 

person identified in the permit, or provides a similar minor 

administrative change at the source; 

(III) Requires more frequent monitoring or reporting by the permittee; 

(IV) Allows for a change of ownership or operational control of a source 

where the Technical Secretary determines that no other change in 

the permit is necessary, provided that a transfer of ownership permit 

application is filed consistent with the provisions of paragraph 1200-

03-09-.03(6) and further provided that a written agreement 

containing a specific date for transfer of permit responsibility, 

coverage, and liability between the current and new permittee has 

been submitted to the Technical Secretary; 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 132

(V) Incorporates into the operating permit issued pursuant to paragraph 

1200-03-09-.02(11) the requirements of a construction permit issued 

pursuant to rule 1200-03-09-.01 provided that the construction permit 

meets the requirements of subparagraph 1200-03-09-.02(11)(f), 

subparagraph 1200-03-09-.02(11)(g) and the compliance 

requirements of subparagraph 1200-03-09-.02(11)(e). 

(ii) Administrative permit amendments for purposes of the acid rain portion of 

the permit shall be governed by regulations promulgated under title IV of 

the federal Act and corresponding regulations in chapter 1200-03-30. 

(iii) Administrative permit amendment procedures shall be made according to 

the following criteria: 

(I) The Technical Secretary shall take no more than 60 days from 

receipt of a request for an administrative permit amendment to take 

final action on such request, and may incorporate such changes 

without providing notice to the public or affected States provided that 

he designates any such permit revisions as having been made 

pursuant to part 1200-03-09-.02(11)(f)4. 

(II) After making an administrative permit amendment, the Technical 

Secretary shall submit a copy of the revised permit to the 

Administrator. 

(III) The source may implement the changes addressed in the request for 

an administrative amendment immediately upon submittal of the 

request. 

(iv) The Technical Secretary may extend the permit shield as part of an 

administrative permit amendment revision consistent with the provisions of 

part 1200-03-09-.02(11)(e)6 for such revisions made pursuant to item 

1200-03-09-.02(11)(f)4(i)(V) which meet the relevant requirements of 

subparagraph 1200-03-09-.02(11)(e), subparagraph 1200-03-09-.02(11)(f) 

and subparagraph 1200-03-09-.02(11)(g) for significant permit 

modifications. 

(v) Proceedings to review and grant administrative permit amendments shall 

be limited to only those parts of the permit for which cause to amend 

exists, and not the entire permit. 

5. Permit Modifications 

(i) A permit modification is any revision to a permit issued pursuant to 

paragraph 1200-03-09-.02(11) that cannot be accomplished as an 

administrative permit amendment. A permit modification for purposes of 

the acid rain portion of the permit shall be governed by regulations 

promulgated under Title IV of the federal Act and corresponding 

regulations at chapter 1200-03-30. Proceedings to review and modify 

permits shall be limited to only those parts of the permit for which cause to 

modify the permit exists, and not the entire permit. 

(ii) Minor permit modification procedures: 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.02, continued) 

November, 2011 (Revised) 133

(I) Minor permit modification procedures may be used only for those 

permit modifications that: 

I. Do not violate any applicable requirement; 

II. Do not involve significant changes to existing monitoring, 

reporting or recordkeeping requirements in the permit; 

III. Do not require or change a case-by-case determination of an 

emission limitation or other standard required by the federal 

Act, or a source-specific determination for temporary sources 

of ambient impacts as required by the federal Act, or a visibility 

or increment analysis as required by the federal Act; 

IV. Do not seek to establish or change a permit term or condition 

for which there is no corresponding underlying applicable 

requirement and that the source has assumed to avoid an 

applicable requirement to which the source would otherwise be 

subject. Such terms and conditions include: 

A. A federally enforceable emissions cap assumed to avoid 

classification as a modification under any provision of 

Title I of the federal Act. Further, federally enforceable 

emission caps assumed to avoid classification as a 

modification under chapter 1200-03-11, chapter 1200-

30-16, Chapter 1200-03-31, paragraph 1200-03-09-

.01(4) or paragraph 1200-03-09-.01(5) are included in 

the criteria of this section 1200-03-09-.02(11)(f)5(ii)(I)IV 

A. 

B. An alternate emission limit approved pursuant to section 

112(i)(5) of the federal Act or rule 1200-03-31-.06; 

V. Are not modifications under Title I of the federal Act or the 

federal regulations promulgated pursuant thereto. Further, the 

minor permit modification process may be used only for 

changes that are not modifications under chapter 1200-03-11, 

Chapter 1200-03-31, chapter 1200-03-16, paragraph 1200-03-

09-.01(4) or paragraph 1200-03-09-.01(5); and 

VI. Are not otherwise required in paragraph 1200-03-09-.02(11) to 

be processed as a significant modification. 

(II) Application 

 An application requesting the use of minor permit modification 

procedures shall meet the requirements of part 1200-03-09-

.02(11)(d)3 and shall include the following: 

I. A description of the change, the emissions resulting from the 

change, and any new applicable requirements that will apply if 

the change occurs; 

II. The source’s suggested draft permit; 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.02, continued) 

November, 2011 (Revised) 134

III. Certification by a responsible official, consistent with part 

1200-03-09-.02(11)(d)4, that the proposed modification meets 

the criteria for use of minor permit modification procedures and 

a request that such procedures be used; and 

IV. Completed forms for the Technical Secretary to use to notify 

the Administrator and affected States as required under 

subparagraph 1200-03-09-.02(11)(g). 

(III) EPA and affected State notification. 

 Within 5 working days of receipt of a complete permit modification 

application the Technical Secretary shall notify the Administrator and 

affected States of the requested permit modification consistent with 

the provisions of subpart 1200-03-09-.02(11)(g)1(i) and subpart 

1200-03-09-.02(11)(g)2(i). The Technical Secretary shall promptly 

send any notice required under subpart 1200-03-09-.02(11)(g)2(ii) to 

the Administrator. 

(IV) The Technical Secretary shall not issue a final permit modification 

until after EPA’s 45-day review period or until EPA has notified the 

Technical Secretary that EPA will not object to the issuance of the 

permit modification, whichever is first, although the Technical 

Secretary can approve the permit modification prior to that time. 

Within 90 days of the Technical Secretary’s receipt of an application 

under minor permit modification procedures or 15 days after the end 

of the Administrator’s 45-day review period under the provisions of 

subpart 1200-03-09-.02(11)(g)3, whichever is later, the Technical 

Secretary shall: 

I. Issue the permit modifications as proposed; or 

II. Deny the permit modification application; or 

III. Determine that the requested modification does not meet the 

minor permit modification criteria and should be reviewed 

under the significant modification procedures; or 

IV. Revise the draft permit modification and transmit to the 

Administrator the new proposed permit modification as 

required by part 1200-03-09-.02(11)(g)1. 

(V) The source may make the change proposed in its minor permit 

modification immediately after it files such application. After the 

source makes the change allowed by the preceding sentence, and 

until the Technical Secretary takes any of the actions specified in 

sub items 1200-03-09-.02(11)(f)5(ii)(IV)I-III the source must comply 

with both the applicable requirements governing the change and the 

proposed permit terms and conditions. During this time period, the 

source need not comply with the existing permit terms and 

conditions it seeks to modify. However, if the source fails to comply 

with its proposed permit terms and conditions during this time period, 

the existing permit terms and conditions it seeks to modify may be 

enforced against it. 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.02, continued) 

November, 2011 (Revised) 135

(VI) Permit Shield - The permit shield under part 1200-03-09-.02(11)(e)6 

may not extend to minor permit modifications. 

(VII) [Reserved] 

(iii) Group processing of minor permit modifications: 

 A source may group its applications for certain modifications eligible for 

minor permit modification processing according to the following 

requirements: 

(I) Criteria - Group processing of modifications may be used only for 

those permit modifications: 

I. That meet the criteria for minor permit modification procedures 

under item 1200-03-09-.02(11)(f)5(ii)(I); and 

II. That are collectively below the least of the following threshold 

criteria levels: 

A. 10 percent of the emissions allowed by the permit for the 

emissions unit for which the change is requested; 

B. 20 percent of the applicable definition of “major source” 

in part 1200-03-09-.02(11)(b)14; or 

C. 5 tons per year. 

(II) Application 

 An application requesting the use of the group processing of minor 

permit modifications procedure shall meet the requirements of part 

1200-03-09-.02(11)(d)3 and shall include the following: 

I. A description of the change, the emissions resulting from the 

change, and any new applicable requirements that will apply if 

the change occurs; 

II. The source’s suggested draft permit; 

III. Certification by a responsible official consistent with part 1200-

03-09-.02(11)(d)4, that the proposed modification meets the 

criteria for use of group processing procedures and a request 

that such procedures be used. 

IV. A list of the source’s other pending applications awaiting group 

processing, and a determination of whether the requested 

modification, aggregated with these other applications, equals 

or exceeds the threshold set under sub item 1200-03-09-

.02(11)(f)5(iii)(I)II. 

V. Certification, consistent with the provisions of part 1200-03-09-

.02(11)(d)4, that the source has notified EPA of the proposed 

modification. Such notification need only contain a brief 

description of the requested modification. 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.02, continued) 

November, 2011 (Revised) 136

VI. Completed forms for the Technical Secretary to use to notify 

the Administrator and affected States as required under 

subparagraph 1200-03-09-.02(11)(g). 

(III) EPA and affected State Notification; 

 On a quarterly basis or within 5 business days of receipt of an 

application demonstrating that the aggregate of a source’s pending 

applications equals or exceeds the threshold level set under sub 

item 1200-03-09-.02(11)(f)5(iii)(I)II, whichever is earlier, the 

Technical Secretary promptly shall meet his obligation under subpart 

1200-03-09-.02(11)(g)1(i) and subpart 1200-03-09-.02(11)(g)2(i) to 

notify the Administrator and affected States of the requested permit 

modifications. The Technical Secretary shall send any notice 

required under subpart 1200-03-09-.02(11)(g)2(ii) to the 

Administrator. 

(IV) Timetable for issuance; 

 The provisions of item 1200-03-09-.02(11)(f)5(ii)(IV) shall apply to 

modifications eligible for group processing except that the Technical 

Secretary shall take one of the actions specified in subitems 1200-

03-09-.02(11)(f)5(ii)(IV) I through IV within 180 days of receipt of the 

application or 15 days after the end of the Administrator’s 45 day 

review period under part 1200-03-09-.02(11)(g)3, whichever is later. 

(V) Source’s ability to make change; 

 The provisions of item 1200-03-09-.02(11)(f)5(ii)(V) shall apply to 

modifications eligible for group processing. 

(VI) Permit Shield 

 The provisions of item 1200-03-09-.02(11)(f)5(ii)(VI) shall apply to 

modifications eligible for group processing. 

(iv) Significant modification procedures 

(I) Criteria 

 Significant modification procedures shall be used for applications 

requesting permit modifications that do not qualify as minor permit 

modifications or as administrative amendments. In addition to the 

criteria of the preceding sentence, a relaxation of monitoring, 

reporting or recordkeeping requirements shall be considered 

significant. In the event that the Technical Secretary issues a 

statement of clarification to clarify a permit requirement that is 

ambiguous or otherwise unclear, such clarification will not be 

considered a significant modification if it results in the less restrictive 

interpretation, provided however, that the less restrictive 

interpretation was the intent of the Technical Secretary in issuing the 

original permit requirement. Nothing herein shall be construed to 

preclude the permittee from making changes consistent with 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.02, continued) 

November, 2011 (Revised) 137

paragraph 1200-03-09-.02(11) that would render existing permit 

compliance terms and conditions irrelevant. 

(II) Significant modifications shall meet all requirements of paragraph 

1200-03-09-.02(11) including those for applications, public 

participation, review by affected States, and review by EPA, as they 

apply to permit issuance and permit renewal. The Technical 

Secretary shall endeavor to process all significant permit 

modification requests within 9 months after receipt of a complete 

application. The Technical Secretary is directed to program the 

resources of the Department’s Division of Air Pollution Control such 

that at least 51 percent of the significant modification requests are 

processed within the 9 month period on a calendar year basis. 

6. Reopening for Cause 

(i) Each issued permit shall include provisions specifying the conditions under 

which the permit will be reopened prior to the expiration of the permit. A 

permit shall be reopened and revised under any of the following 

circumstances: 

(I) Additional applicable requirements under the federal Act become 

applicable to a major source subject to paragraph 1200-03-09-

.02(11) with a remaining permit term of 3 or more years. Such a 

reopening shall be completed not later than 18 months after 

promulgation of the applicable requirement. No such reopening is 

required if the effective date of the requirement is later than the date 

on which the permit is due to expire, unless the original has been 

extended pursuant to part 1200-03-09-.02(11)(a)2. 

(II) Additional requirements (including excess emission requirements) 

become applicable to an affected source under the acid rain 

program. Upon approval by the Administrator, excess emissions 

offset plans shall be deemed to be incorporated into the permit. 

(III) The Technical Secretary or EPA determines that the permit contains 

a material mistake or that inaccurate statements were made in 

establishing the emissions standards or other terms or conditions of 

the permit. 

(IV) The Technical Secretary or EPA determines that the permit must be 

revised or revoked to assure compliance with the applicable 

requirements. 

(ii) Proceedings to reopen and issue a permit shall follow the same 

proceedings as apply to initial permit issuance and shall affect only those 

parts of the permit for which cause to reopen exists, and not the entire 

permit. Such reopening shall be made as expeditiously as practicable. 

(iii) Reopening under subpart 1200-03-09-.02(11)(f)6(i) shall not be initiated 

before a notice of such intent is provided to the permittee by the Technical 

Secretary at least 30 days in advance of the date that the permit is to be 

reopened except that the Technical Secretary may provide a shorter time 

period in the case of an emergency. An emergency shall be established 

by the criteria of T.C.A. 68-201-109 or other compelling reasons that public 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.02, continued) 

November, 2011 (Revised) 138

welfare is being adversely effected by the operation of a source that is in 

compliance with its permit requirements. 

7. Reopenings for Cause by EPA 

(i) If the Administrator finds that cause exists to terminate, modify, or revoke 

and reissue a permit pursuant to part 1200-03-09-.02(11)(f)6, he is 

required under federal rules to notify the Technical Secretary and the 

permittee of such findings in writing. Upon receipt of such notification, the 

Technical Secretary shall investigate the matter in order to determine if he 

agrees or disagrees with the Administrator’s findings. If he agrees with the 

Administrator’s findings, the Technical Secretary shall conduct the 

reopening in the following manner: 

(ii) The Technical Secretary shall within 90 days after receipt of such 

notification, forward to EPA a proposed determination of termination, 

modification, or revocation and reissuance, as appropriate. If the 

Administrator grants additional time to secure permit applications or 

additional information from the permittee, the Technical Secretary shall 

have the additional time period added to the standard 90 day time period. 

(iii) EPA will evaluate the Technical Secretary’s proposed revisions and 

respond as to their evaluation. 

(iv) If EPA agrees with the proposed revisions, the Technical Secretary shall 

proceed with the reopening in the same manner prescribed under subparts 

1200-03-09-.02(11)(f)6(ii) and (iii). 

(v) If the Technical Secretary disagrees with either the findings of the 

Administrator that a permit should be reopened or an objection of the 

Administrator to a proposed revision to a permit submitted pursuant to 

subpart 1200-03-09-.02(11)(f)7(ii), he shall bring the matter to the Board at 

its next regularly scheduled meeting for instructions as to how he should 

proceed. The permittee shall be required to file a written brief expressing 

their position relative to the Administrator’s objection and have a 

responsible official present at the meeting to answer questions of the 

Board. If the Board agrees that EPA is wrong in their demand for a permit 

revision, they shall instruct the Technical Secretary to conform to EPA’s 

demand, but to issue the permit under protest preserving all rights 

available for litigation against EPA. 

8. Public Participation 

(i) Except for modifications qualifying for minor permit modifications 

procedures, all permit proceedings, including initial permit issuance, 

significant modifications and renewals, shall provide adequate procedures 

for public notice including offering an opportunity for public comment and a 

hearing on the draft permit. These procedures shall include the following: 

(I) Notice shall be given by the applicant by publication in a newspaper 

of general circulation in the area where the source is located or by 

other means designated by the Technical Secretary if necessary to 

assure adequate notice to the affected public. The applicant shall 

bear the expense of the newspaper notice. Notice shall also be 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.02, continued) 

November, 2011 (Revised) 139

given by the Technical Secretary to persons on a mailing list who 

meet the following criteria: 

I. Such persons shall request to be on the list in writing on an 

annual basis. 

II. Such persons shall pay a fee of $10.00 per year to the 

Department to defray the cost of postage and handling and list 

management. 

(II) The notice shall identify the facility to be permitted; the name and 

address of the permittee; the Technical Secretary and his address; 

the activity or activities involved in the permit action; the emission 

change involved in any permit modification; the name, address and 

telephone number of a person from whom interested parties may 

obtain additional information, including copies of the permit draft, the 

application, all relevant supporting materials including the source’s 

compliance plan and monitoring reports, and all other materials 

available to the Technical Secretary that are relevant to the permit 

decision. These materials will be placed in a public depository for 

public inspection. Those persons unwilling to view these materials at 

the public depositories may request copies to be mailed to them at a 

cost of $0.50 (50 cents) per page. The notice shall also include a 

brief description of the comment procedure specified in part 1200-

03-09-.02(11)(f)8; and the time and place of any hearing that may be 

held, including a statement of procedures to request a hearing 

(unless a hearing has already been scheduled); 

(III) The Technical Secretary shall provide such notice and opportunity 

for participation by affected States as is provided for by 

subparagraph 1200-03-09-.02(11)(g); 

(IV) The Technical Secretary shall provide at least 30 days for public 

comment and shall give notice of any public hearing at least 30 days 

in advance of the hearing. 

(V) The Technical Secretary shall keep a record of the commentors and 

also of the issues raised during the public participation process so 

that the Administrator may fulfill his obligation under Section 

505(b)(2) of the federal Act to determine whether a citizen petition 

may be granted, and such records shall be available to both the 

public and the applicant. 

(g) Permit Review by EPA and Affected States 

1. Transmission of Information to the Administrator 

(i) The Technical Secretary shall provide a copy of each permit application 

submitted pursuant to the provisions of paragraph 1200-03-09-.02(11) to 

the Administrator. Upon agreement with the Administrator the Technical 

Secretary is permitted to send less than a complete copy to the 

Administrator as long as the Administrator is satisfied with the level of 

detail in the partial submittal. Additionally, the Technical Secretary shall 

provide the Administrator a copy of each proposed permit and each final 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.02, continued) 

November, 2011 (Revised) 140

permit that will be issued to a source subject to the provisions of paragraph 

1200-03-09-.02(11). 

(ii) The Technical Secretary shall keep for 5 years such records and submit to 

the Administrator such information as the Administrator may reasonably 

require to ascertain whether or not the provisions of paragraph 1200-03-

09-.02(11) are being followed. 

2. Review by affected States 

(i) The Technical Secretary shall give notice of each draft permit prepared 

pursuant to the provisions of paragraph 1200-03-09-.02(11) to any affected 

State on or before the time that he provides this notice to the public under 

part 1200-03-09-.02(11)(f)8, except to the extent that subpart 1200-03-09-

.02(11)(f)5(ii) or subpart 1200-03-09-.02(11)(f)5(iii) requires the timing of 

the notice to be different. The affected State review and comment period 

shall close simultaneously with the closure of the public review and 

comment period. The affected States will have thirty days to review and 

comment upon minor modifications. 

(ii) The Technical Secretary shall notify the Administrator and any affected 

State in writing of his refusal to accept all recommendations for the 

proposed permit that the affected State submitted during the public or 

affected State review period. Said notice shall be filed when the proposed 

permit is sent to the Administrator or as soon as possible after the 

submittal for minor permit modification procedures allowed under subpart 

1200-03-09-.02(11)(f)5(ii) or subpart 1200-03-09-.02(11)(f)5(iii). The notice 

shall include the Technical Secretary’s reasons for not accepting any such 

recommendation. The Technical Secretary is not required to accept 

recommendations that are not based upon applicable requirements or the 

requirements of 40 C.F.R. Part 70. 

3. EPA Objection

(i) No permit for which an application must be transmitted to the Administrator 

under part 1200-03-09-.02(11)(g)1 shall be issued if the Administrator 

objects to its issuance in writing within 45 days of receipt of the proposed 

permit and its level of supporting information as prescribed in subpart 

1200-03-09-.02(11)(g)1(i). 

(ii) The Technical Secretary shall respond to the objections of the 

Administrator and restructure the permit consistent with the provisions of 

the federal Act, federal regulations promulgated thereunder or any lawfully 

promulgated federal policy and the provisions of the State Act, the 

regulations comprising division 1200-03 and any policies of the Board. 

4. Public Petitions to the Administrator

 Any person can petition the Administrator to object to a permit according to the 

criteria of 40 C.F.R. 70.8(d). An objection to a permit by the Administrator that is 

filed in response to a public petition under the provisions of paragraph 40 C.F.R. 

70.8(d) shall be answered by the Technical Secretary in the same manner 

prescribed by subpart 1200-03-09-.02(11)(g)3(ii). If the Technical Secretary has 

issued the permit prior to the Administrator’s objection in response to a public 

petition, the Administrator’s modification, revocation or termination of the issued 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.02, continued) 

November, 2011 (Revised) 141

permit shall not cause the source to be in violation of the requirement to have 

submitted a timely and complete application as specified in part 1200-03-09-

.02(11)(d)1 and in keeping with the application shield provisions of part 1200-03-

09-.02(11)(f)2. If the Technical Secretary disagrees with the Administrator’s 

objections and demand for revision of the permit, the provisions of subpart 1200-

03-09-.02(11)(f)7(v) shall apply. 

Authority: T.C.A. §§ 68-201-101 et. seq., 68-201-105, 4-5-201 et. seq., and 4-5-202 et. seq. 

Administrative History: Original rule certified June 7, 1974. Amendment filed and effective February 9, 

1977. Amendment filed and effective March 21, 1979. Amendment filed May 17, 1990; effective July 1, 

1990. Amendment filed July 8, 1994; effective September 20, 1994. Amendment filed May 11, 1998; 

effective July 25, 1998. Amendment filed October 15, 1998; effective December 28, 1998. Amendment 

filed November 12, 1998; effective January 26, 1999. Amendment filed December 14, 1999; effective 

February 27, 2000. Amendment filed December 30, 1999; effective March 14, 2000. Amendments filed 

February 24, 2009; effective May 10, 2009. Amendments filed November 10, 2010; effective February 8, 

2011. Amendment filed August 29, 2011; effective November 27, 2011. 

1200-03-09-.03 GENERAL PROVISIONS. 

(1) Irrespective of the provisions of the preceding paragraphs of this chapter, the owner or 

operator of any air contaminant source shall be responsible for complying with emission 

regulations as contained in other chapters of these regulations at the earliest practicable time 

and for this purpose the Board shall have the authority and responsibility to require 

compliance with these regulations at an earlier date than indicated where such earlier 

compliance may reasonably be accomplished. 

(2) No person shall use any plan, activity, device, or contrivance which the Technical Secretary 

determines will, without resulting in an actual reduction of air contaminants, conceal or 

appear to minimize the effects of an emission which would otherwise constitute a violation of 

these regulations. Methods considered circumvention of the regulations include but are not 

limited to the following: 

(a) Air (or other gases) introduced for dilution purposes only. 

(b) The staggered installation and operation of a facility to avoid coverage by a standard 

that applies only to operations larger than a specified size. 

(3) No person shall discharge from any source whatsoever such quantities of air contaminant, 

uncombined water, or other materials which cause a traffic hazard. 

(4) Any person affected by any of these regulations shall file emissions data with the Technical 

Secretary on forms available from the Secretary. If any changes are made that invalidate this 

data, the owner or operator shall file within thirty (30) days new forms with the appropriate 

revisions to the data. 

(5) Any source operating under a variance or Board Order (whether effective under T.C.A. §§68-

25-116 or 68-25-118) shall prominently and conspicuously display a copy of said variance or 

Board Order on the operating premises. 

(6) An operation and/or construction permit is not transferable from one person to another 

person, nor from one air contaminant source to another air contaminant source, nor from one 

location to another location. Applications for construction permits by the new owner or 

operator of the new air contaminant source, or by the owner or operator of the air 

contaminant source at the new location shall be required as if there had been no previous 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.03, continued) 

November, 2011 (Revised) 142

construction permit issued. The new construction permit will address only rules in effect at 

the time of its issuance. 

(7) The Technical Secretary may suspend or revoke any construction or operating permit if the 

permit holder fails to comply with the provisions, stipulations, or compliance schedules 

specified in the permit; all provisions of these regulations; and all provisions of the 

Tennessee Air Quality Act. Upon permit suspension or revocation, if the permit holder fails to 

take remedial action, he shall become immediately subject to enforcement actions prescribed 

by law. 

(8) The Technical Secretary may include on all permits issued under the Tennessee Air Quality 

Act conditions to directly impose all provisions applicable to sources that are necessary 

under the federal Clean Air Act and effective federal regulations pursuant to this act, e.g., 

National Emission Standards for Hazardous Air Pollutants, as well as provisions necessary 

under Tenn. Code Ann. 68-201-101 et. seq. and rules of this Division 1200-03. Issuance of a 

permit containing conditions imposing such applicable provisions necessary under the federal 

Clean Air Act and effective federal regulations pursuant to this act shall not be treated as a 

repeal by implication of any otherwise applicable provisions of Division 1200-03. That is, 

simply the inclusion of such conditions containing federal standards or requirements that are 

less restrictive than standards or requirements in Division 1200-03 concerning the same 

matter shall not thereby effect a relaxation of the more restrictive provisions of Division 1200-

03. 

Authority: T.C.A. §§ 68-25-105, 68-201-105, and 4-5-202 et. seq. Administrative History: Original 

rule certified June 7, 1974. Amendment filed and effective February 9, 1977. Amendment filed and 

effective November 6, 1988. Amendment filed May 17, 1990; effective July 1, 1990. Amendment filed 

July 20, 1999; effective October 2, 1999. Amendment filed July 22, 2003; effective October 5, 2003. 

Amendment filed February 24, 2009; effective May 10, 2009. 

1200-03-09-.04 EXEMPTIONS. 

(1) The exemptions listed in paragraph (4) of this rule, do not apply if an air contaminant source 

is subject to a standard or requirement contained in the following except where specifically 

stated: 

Chapter 1200-03-11 (Hazardous air contaminants) 

Chapter 1200-03-18 (Volatile organic compounds) 

Chapter 1200-03-19 (Emission standards and monitoring requirements for additional control 

areas) 

Chapter 1200-03-22 (Lead emission standards) 

Chapter 1200-03-27 (Nitrogen oxides) 

Paragraph 1200-03-31-.05(2) (Case by case determinations of hazardous air pollutant 

requirements) 

In addition, the exemption provided for the air contaminant sources in paragraph (4) of this 

rule does not exempt them from inclusion in determining if a major stationary source or major 

modification construction permit is required under paragraph 1200-03-09-.01(4) and 

paragraph 1200-03-09-.01(5). 

(2) (a) Definitions. 

As used in paragraphs (1), (2), (3), and (4) of this Rule, all terms not defined herein 

shall have the meaning given them in Paragraph 1200-03-09-.02(11) and Chapter 

1200-03-02 with the terms in Paragraph 1200-03-09-.02(11) taking precedence over 

Chapter 1200-03-02. 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 143

1. “Emissions unit” means any part or activity of a stationary source that emits or 

has the potential to emit any regulated air pollutant or any pollutant listed in 

paragraph 1200-03-31-.02(6). Emissions unit includes within its meaning the 

smallest discrete or identifiable structure, device, item, equipment, or enclosure 

or group of discrete or identifiable structures, devices, items, equipment, or 

enclosures that emit or have the potential to emit any regulated air pollutant or 

any pollutant listed in paragraph 1200-03-31-.02(6). A point of origin of fugitive 

emissions resulting from equipment leaks of individual pieces of equipment, e.g., 

valves, flanges, pumps, and compressors, shall not be considered an individual 

emissions unit. Such equipment leaks shall be collectively considered an 

emissions unit based on their relationship to the associated process unit and 

shall be considered separately from other emissions from the process unit when 

defining insignificant emissions. 

2. “Fugitive emissions” are those emissions which could not reasonably pass 

through a stack, chimney, vent, or other functionally-equivalent opening. 

3. “Insignificant activity” or “insignificant emissions unit” means any activity or 

emissions unit at a stationary source for which the emissions unit or activity has 

a potential to emit less than 5 tons per year of each air contaminant and each 

regulated air pollutant that is not a hazardous air pollutant, and less than 1,000 

pounds per year of each hazardous air pollutant. 

4. “Potential to emit” means the maximum capacity of a stationary source to emit 

any air pollutant under its physical and operational design. Any physical or 

operational limitation on the capacity of a source to emit an air 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 is federally enforceable. 

5. “Process unit” means equipment assembled and connected by pipes or ducts to 

manufacture an intended product. A process unit can operate independently if 

supplied with sufficient feed or raw materials and sufficient storage facilities for 

the product. 

6. “Regulated air pollutant” has the same definition as found in subparagraph 1200-

03-09-.02(11)(b)19. 

7. “Stationary source” means any building, structure, facility, or installation that 

emits or may emit any regulated air pollutant or any pollutant listed under 

paragraph 1200-03-31-.02(6). 

8. “Applicable requirement” has the same definition as in part 1200-03-09-.02 

(11)(b)5. 

9. “Federally enforceable” means any emission standard and/or procedural 

requirement that can be enforced against an air contaminant source by EPA or 

citizens under authority granted them by the Federal Act. 

10. “Hazardous air pollutant” means any air contaminant regulated in Chapter 1200-

03-11, or listed in Chapter 1200-03-31-.02(6). 

(b) Notwithstanding the exemptions granted in paragraph 1200-03-09-.04(4), no person 

shall discharge, from any source whatsoever, such quantities of air contaminants or 

other materials which cause or have a tendency to cause injury, detriment, annoyance, 

or adverse effect to the public. 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 144

(c) Notwithstanding any other provision of Division 1200-3, no emissions unit or activity 

subject to a federally enforceable applicable requirement (other than generally 

applicable requirements of the state implementation plan) shall qualify as an 

insignificant emissions unit or activity. For purposes of this paragraph, generally 

applicable requirements of the state implementation plan are those federally 

enforceable requirements that apply universally to all emission units or activities 

without reference to specific types of emission units or activities except for the sulfur 

dioxide standards for those categories and classes included in Chapter 1200-03-14. 

(d) Designation of an emissions unit or activity as insignificant for purposes of this rule 

does not exempt the unit or activity from any applicable requirement. 

(e) The emissions from any exempt air contaminant source shall comply with all applicable 

rules and regulations of the Tennessee Air Pollution Control Board. 

(3) Any person may request that a federally enforceable permit be issued for any of the air 

contaminant sources that are exempted in paragraph 1200-03-09-.04(4). “Federally 

enforceable” shall have the meaning as provided in paragraph 1200-03-09-.02(11). 

(4) The list of exempted air contaminant sources contained in this paragraph shall not be used 

as “insignificant activities” or “insignificant emission units” when applying for a major source 

operating permit under paragraph 1200-03-09-.02(11). These exemptions shall not be used 

to lower the source’s potential to emit below “major source” applicability thresholds or to 

avoid any “applicable requirement”. Otherwise, no person shall be required to obtain or file a 

request for a permit due to ownership, operation, construction, or modification of the following 

types of air contaminant sources unless specifically required to do so by the Board or as 

provided for in paragraph (3) of this rule: 

(a) Any “insignificant activity” or “insignificant emissions unit”: 

In order to receive designation as an “insignificant activity” or “insignificant emissions 

unit”, a written notification must be submitted to the Technical Secretary. The 

notification for designation shall include calculations and sufficient documentation to 

substantiate the applicant’s claim. Upon receipt of the notification, the Technical 

Secretary will respond with a determination of agreement or disagreement with the 

applicant’s claim. In issuance of determination as “insignificant”, the Technical 

Secretary may base the determination upon any criteria that are relevant to the 

determination. For new sources, the request for designation must be made at least 30 

days prior to the estimated starting date of construction. For new sources, if it is 

determined that the emissions unit does not qualify as an “insignificant emissions unit”, 

the source must apply for a construction permit. The request for designation as an 

“insignificant emissions unit” may be made at any time for an existing source. In the 

absence of being designated as an “insignificant emissions unit” by the Technical 

Secretary under subparagraph 1200-03-09-.04 (4)(a) or in the absence of being 

exempt under subparagraphs 1200-03-09-.04 (4)(b) or 1200-03-09-.04 (4)(c), any 

emission unit or activity must have a valid construction and / or operating permit. 

(b) The categorical emission units or activities listed in subparagraph 1200-03-09-.04(5)(f), 

excluding parts 1. and 2. 

To be categorically insignificant, with the exception of parts 19. and 84., the emissions 

unit or activity must have a potential to emit less than 5 tons per year of each air 

contaminant and each regulated air pollutant that is not a hazardous air pollutant, and 

less than 1,000 pounds per year of each hazardous air pollutant. Such emission units 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 145

or activities, with the exception of parts 19. and 84., are not required to be listed in the 

construction or operating permit applications for the facility. 

(c) The emission units or activities listed in subparagraph 1200-03-09-.04(5)(g). Such 

emission units or activities are not required to be listed in the construction or operating 

permit applications for the facility. 

(d) Any one of the following emission units or activities: 

Such emission units or activities are not required to be listed in the construction or 

operating permit applications for the facility. 

1. Fuel burning equipment of less than 500,000 Btu per hour capacity. This 

exemption shall not apply where the total capacity of such equipment operated 

by one person exceeds 2.00 million Btu per hour. 

2. Single stack of an air contaminant source that emits no hazardous air 

contaminants or pollutants, and which does not have the potential for emitting 

more than 0.50 pounds per hour of nonhazardous particulates and 0.5 pounds 

per hour of any regulated nonhazardous gas (particulates and gases not defined 

as hazardous air contaminants or pollutants), provided that the total potential 

particulate emissions from the air contaminant source amounts to less than two 

(2) pounds per hour, and the total regulated gaseous emissions from the air 

contaminant source amounts to less than two (2) pounds per hour. For the 

purpose of this part, an air contaminant source includes all sources located 

within a contiguous area, and under common control. 

3. Any air contaminant source constructed and operated at a domestic residence 

solely for domestic use. 

4. Equipment used exclusively to store, hold, or distribute natural gas or propane 

excluding all associated fuel burning equipment not specifically exempted. 

5. Brazing, soldering, or welding equipment which does not emit lead in amounts 

equal to or greater than 0.6 tons per year. 

6. Sources within the counties of Shelby, Davidson, Hamilton, and Knox until such 

time as the Board shall determine that air pollution is not being controlled in such 

county to a degree at least as stringent as the substantive provisions of the 

Tennessee Air Quality Act and regulations adopted pursuant thereto. This 

exemption does not apply to any air contaminant source in those counties if the 

local regulation is less stringent than the applicable state regulation. 

7. Automobile body shops - including paint spraying, grinding and polishing 

operations. This exemption does not apply to sources in ozone nonattainment 

areas which emit more than 15 pounds per day of volatile organic compounds. 

8. Any process emission source emitting less than 0.1 pounds per hour of a 

pollutant. 

9. Any emission unit with the potential to emit radionuclides which will result in a 

dose to the most exposed member of the public of less than 0.1 millirem per 

year. Even though radionuclide air contaminant sources are regulated under 

Chapter 1200-03-11, this exemption is still valid except that recordkeeping and 

reporting requirements must be met. 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 146

10. Any modification (as defined in Rule 1200-03-02-.01) to an existing process 

emission source, incinerator, or fuel-burning installation to add sources of 

equipment leaks (e.g. valves, flanges, pumps, compressors, etc.) as long as the 

estimated increase in annual emissions attributable to the modification does not 

exceed 5 tons per year. However, such emissions increases shall be considered 

when making major modification determinations pursuant to paragraphs 1200-

03-09-.01(4) and (5). 

11. All livestock (including poultry) operations and associated fuel burning and 

incineration equipment. This exemption from permitting requirements does not 

extend to: 

(i) An incineration unit which has a manufacturer’s rated capacity greater than 

500 pounds per hour or has a total burner rated capacity greater than 

400,000 Btu per hour. 

(ii) An incineration unit into which is charged materials or wastes other than 

livestock and poultry carcasses; or 

(iii) A commercial incineration unit. 

12. All storage tanks with a capacity less than 10,000 gallons and all process tanks 

with a capacity less than 3,000 gallons. 

13. Mobile sources such as: automobiles, trucks, buses, locomotives, planes, boats, 

and ships. This exemption only applies to the emissions from the internal 

combustion engines used exclusively to propel such vehicles. 

14. Diesel fuel or fuel oil storage tanks with a capacity of forty thousand (40,000) 

gallons or less. 

15. Surface coating and degreasing operations which do not exceed a combined 

total usage of more than 60 gallons/month of coatings, thinners, clean-up 

solvents, and degreasing solvents at any one plant location, and does not 

exceed 1,000 pounds per year of each hazardous air pollutant. 

16. Repair and maintenance, cleaning and degreasing operations which do not 

exceed more than 145 gallons in any twelve (12) month period, and does not 

exceed 1,000 pounds per year of each hazardous air pollutant. 

17. Fuel burning sources that are either gas fired or #2 oil fired with a heat input rate 

under 10 million Btu/hour, where the combined total heat input rate at each 

location does not exceed 10 million Btu/hour. 

18. Machining of metals where total solvent usage does not exceed more than 60 

gallons/month at any one plant location, and does not exceed 1,000 pounds per 

year of each hazardous air pollutant. 

19. Equipment used exclusively for steam or dry cleaning of fabrics, plastics, rubber, 

wood, or vehicle engines or drive trains, provided the total solvent usage on all 

equipment of this type at the same plant location is less than 60.0 gallons per 

month, and does not exceed 1,000 pounds per year of each hazardous air 

pollutant. 

20. Heat treating, soaking, case-hardening, or surface conditioning of metal objects, 

such as carbonizing, nitriding, carbonnitriding, siliconizing, or diffusion treating 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.04, continued) 

November, 2011 (Revised) 147

using sweet natural gas or liquid petroleum gas as in process fuel and where the 

heat input rate is under 10 million Btu per hour. 

21. Natural gas fired and #2 oil fired ovens which have no emissions other than 

products of combustion which have a heat input rate under 10 million Btu per 

hour. 

22. Degreasing operations with solvent usage less than 30 gallons/month, and where 

hazardous air pollutant emissions are less than 1,000 pounds per year. 

23. Silk screen operations with solvent usage less than 30 gallons per month, and 

where hazardous air pollutant emissions are less than 1,000 pounds per year. 

24. The procedures for the on-site remediation of soil or water contaminated with 

organic compounds as follows: 

(i) Landspreading, aeration or bioremediation of contaminated soil. 

(ii) Negative pressure venting of contaminated soil, provided the remediation 

is completed within 18 months and volatile organic compound emissions 

do not exceed one (1) pound per hour. 

(iii) Installation and use of air strippers for treatment of contaminated water, 

provided the remediation is completed within 18 months, and the 

emissions are no more than 5 tons per year of any regulated pollutant that 

is not a hazardous air pollutant, and less than 1,000 pounds per year of 

each hazardous air pollutant. 

25. Temporary-use air curtain destructors or temporary-use air curtain incinerators 

used in disaster recovery solely for disposal of materials resulting from a natural 

disaster, and when conducted in conformity with the following conditions: 

(i) Fires disposing of structural and household materials and vegetation are 

allowed only when those structures or materials are destroyed or severely 

damaged by natural disaster. The air curtain destructor or air curtain 

incinerator shall only be used to combust debris in an area declared a 

State of Emergency by a local or State government, or the President, 

under the authority of the Stafford Act, has declared that an emergency or 

a major disaster exists in the area. Input from Emergency Management 

personnel may be requested in determining qualification with this criterion. 

(ii) The maximum rated capacity for each temporary-use air curtain destructor 

or temporary-use air curtain incinerator shall not exceed 35 tons per day 

per unit. 

(iii) The persons using temporary-use air curtain destructors or temporary-use 

air curtain incinerators under this provision must make a reasonable effort 

to remove all tires and other rubber products, vinyl shingles and siding, 

vinyl flooring, carpet, other plastics, asphalt shingles and other asphalt 

roofing materials, and/or asbestos containing materials from the materials 

to be burned before ignition. The Technical Secretary reserves the right to 

inspect the proposed materials to be burned before ignition. The 

alternative use of chippers and grinders, landfilling, or on-site burial of 

waste in lieu of burning, if lawful, is encouraged. 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 148

(iv) The person responsible for such burning must notify the Division of Air 

Pollution Control of the proposed location. The notification must be 

delivered to the Division of Air Pollution Control at the appropriate regional 

Environmental Field Office at least three (3) days prior to commencing the 

burn. The Division may request that alternate sites be identified to 

minimize impact to air quality. The alternative use of chippers and grinders 

in lieu of burning is encouraged. 

(v) No fire shall be ignited while any air pollution emergency episode is in 

effect in the area of the burn. 

(vi) The air curtain destructor or air curtain incinerator shall only be used during 

a period that begins on the date the unit started operation and lasts 8 

weeks or less within the boundaries of the same emergency or disaster 

declaration area. 

(vii) Disposal via temporary-use air curtain destructors or temporary-use air 

curtain incinerators conducted under this exception is only allowed where 

no other safe and/or practical means of disposal is available. 

(viii) The Technical Secretary reserves the right to require a person to cease or 

limit burning if emissions from the air curtain destructor or air curtain 

incinerator are deemed by the Technical Secretary or his designee to 

jeopardize public health or welfare, create a public nuisance or safety 

hazard, create a potential safety hazard, or interfere with the attainment or 

maintenance of the air quality standards. 

(5) Major Source Operating Permits Insignificant Emission Units 

(a) Definitions. 

As used in this Rule, all terms not defined herein shall have the meaning given them in 

Paragraph 1200-03-09-.02(11) and Chapter 1200-03-02 with the terms in Paragraph 

1200-03-09-.02(11) taking precedence over Chapter 1200-03-02. 

1. “Emissions unit” means any part or activity of a stationary source that emits or 

has the potential to emit any regulated air pollutant or any pollutant listed in 

paragraph 1200-03-31-.02(6). Emissions unit includes within its meaning the 

smallest discrete or identifiable structure, device, item, equipment, or enclosure 

or group of discrete or identifiable structures, devices, items, equipment, or 

enclosures that emit or have the potential to emit any regulated air pollutant or 

any pollutant listed in paragraph 1200-03-31-.02(6). A point of origin of fugitive 

emissions resulting from equipment leaks of individual pieces of equipment, e.g., 

valves, flanges, pumps, and compressors, shall not be considered an individual 

emissions unit. Such equipment leaks shall be collectively considered an 

emissions unit based on their relationship to the associated process unit and 

shall be considered separately from other emissions from the process unit when 

defining insignificant emissions. 

2. “Federal Act” has the same definition as found in subparagraph 1200-03-09-

.02(11)(b). 

3. “Fugitive emissions” are those emissions which could not reasonably pass 

through a stack, chimney, vent, or other functionally-equivalent opening. 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 149

4. “Insignificant activity” or “insignificant emissions unit” means any activity or 

emissions unit which qualifies as insignificant based on any one of the following: 

(i) Any air emissions from an air emissions unit or activity at a stationary 

source for which the emissions unit or activity has a potential to emit less 

than 5 tons per year of each regulated air pollutant that is not a hazardous 

air pollutant, and less than 1,000 pounds per year of each hazardous air 

pollutant. Such emission units and activities or types of emission units and 

activities must be listed in the permit application. 

(ii) The emission unit or activity, with the exception of parts 19. and 84., is 

listed in subparagraph (5)(f) as not having to be included in a Title V 

application. For an activity listed in subparagraph (5) (f), with the exception 

of parts 1., 2., 19., and 84., the emissions unit or activity must have a 

potential to emit less than 5 tons per year of each regulated air pollutant 

that is not a hazardous air pollutant, and less than 1,000 pounds per year 

of each hazardous air pollutant. 

(iii) The emission unit or activity is listed in subparagraph (5)(g) as not having 

to be included in a Title V application. 

(iv) Any emission unit with the potential to emit radionuclides which will result 

in a dose to the most exposed member of the public of less than 0.1 

millirem per year. Such emission unit must be listed in the permit 

application. 

(v) Any emission units or activities considered by the Division to be 

insignificant and approved by EPA. The Division shall maintain a list of 

emission units or activities which are considered to be insignificant by the 

Division and EPA. Such emission units or activities must be listed in the 

permit application. 

5. “Potential to emit” means the maximum capacity of a stationary source to emit 

any air pollutant under its physical and operational design. Any physical or 

operational limitation on the capacity of a source to emit an air 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 is enforceable by the Administrator. 

This term does not alter or affect the use of this term for any other purposes 

under the Federal Act, or the term “capacity factor” as used in title IV of the 

Federal Act or the Federal regulations promulgated thereunder or chapter 1200-

03-30. 

6. “Process unit” means equipment assembled and connected by pipes or ducts to 

manufacture an intended product. A process unit can operate independently if 

supplied with sufficient feed or raw materials and sufficient storage facilities for 

the product. 

7. “Regulated air pollutant” has the same definition as found in subparagraph 1200-

03-09-.02(11)(b). 

8. “Stationary source” means any building, structure, facility, or installation that 

emits or may emit any regulated air pollutant or any pollutant listed under 

paragraph 1200-03-31-.02(6). 

9. “Major source” has the same definition as in part 1200-03-09-.02(11)(b)14. 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 150

10. “Applicable requirement” has the same definition as in part 1200-03-09-.02 

(11)(b)5. 

11. “EPA” or the “Administrator” means the Administrator of the EPA or his designee. 

12. “Permit revision” means any permit modification or administrative permit 

amendment. 

13. “Renewal” means the process by which a permit is reissued at the end of its 

term. 

14. “Federally enforceable” means any emission standard and/or procedural 

requirement that can be enforced against an air contaminant source by EPA or 

citizens under authority granted them by the Federal Act. 

15. “Hazardous air pollutant” means any air contaminant regulated in Chapter 1200-

03-11, or listed in Chapter 1200-03-31-.02(6). 

(b) General 

1. This paragraph contains criteria for identifying insignificant emission units or 

activities for purposes of issuance of major stationary source operating permits, 

Paragraph 1200-03-09-.02(11). 

2. Notwithstanding the classifications as insignificant emissions units or activities 

granted in this paragraph, no person shall discharge, from any source 

whatsoever, such quantities of air contaminants or other materials which cause 

or have a tendency to cause injury, detriment, annoyance, or adverse effect to 

the public. 

3. Designation of an emission unit or activity as insignificant for purposes of this 

paragraph and paragraph 1200-03-09-.02(11) does not exempt the unit or 

activity from any applicable requirement. 

4. No insignificant activities or emission units shall be exempt from inclusion in the 

permit application if the information omitted is needed to: 

(i) Determine or impose any applicable requirement, or the requirement to 

obtain a permit under paragraph 1200-03-09-.02(11). 

(ii) Determine if a source is major. 

(c) Applicable Requirements 

1. Notwithstanding any other provision of paragraph 1200-03-09-.02(11), no 

emissions unit or activity subject to a federally enforceable applicable 

requirement (other than generally applicable requirements of the state 

implementation plan) shall qualify as an insignificant emissions unit or activity. 

For purposes of this paragraph, generally applicable requirements of the state 

implementation plan are those federally enforceable requirements that apply 

universally to all emission units or activities without reference to specific types of 

emission units or activities except for the sulfur dioxide standards for those 

categories and classes included in Chapter 1200-03-14. 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 151

2. The permit application shall list and the permit shall contain all generally 

applicable requirements that apply to insignificant emission units or activities at 

the major source. For compliance purposes, the Technical Secretary may require 

monitoring, recordkeeping, and reporting for insignificant emission units or 

activities. 

3. Any emission unit or activity which is a subset of a process emission source, fuel 

burning installation, or incinerator, and which has a potential to emit less than 5 

tons per year of a regulated air pollutant , by annual certification of compliance 

as required in item 1200-03-09-.02(11)(d)1.(ii)(I), may, at the discretion of the 

Technical Secretary, be considered to meet the monitoring and related 

recordkeeping and reporting requirements of subpart 1200-03-09-.02(11)(e)1.(iii) 

and 1200-03-10-.04(2)(b)(1), and the compliance requirements of subpart 1200-

03-09-.02(11)(e)3.(i) for that regulated air pollutant except where generally 

applicable requirements of the state implementation plan specifically impose 

monitoring and related record keeping and reporting requirements, or except 

where any applicable procedures and methods are required pursuant to rule 

1200-03-10-.04. This provision shall not relieve any emissions unit or activity 

from any applicable standard or requirement under Chapters 1200-03-11 and 

1200-03-31, and subparagraph 1200-03-02-.01(1)(dd). 

(d) (Reserved) 

(e) Documentation 

1. Upon request from the Technical Secretary the applicant must provide sufficient 

documentation to enable the Technical Secretary to determine that the emission 

unit or activity has been appropriately listed on the permit application as 

insignificant. 

2. Upon request from the Technical Secretary, at any time during the term of the 

permit, an applicant who lists an activity or emissions unit as insignificant under 

subpart 1200-03-09-.04(5)(a)4.(i) of this paragraph shall demonstrate to the 

Technical Secretary that the actual emissions of the unit or activity are below the 

emission thresholds listed in that subpart. 

(f) Unless specifically required under part 1200-03-09-.04(5)(b)4., the following emission 

units or activities, or stationary sources that qualify as ‘insignificant activities’, with the 

exception of parts 19. and 84. of this subparagraph, are not required to be included in a 

permit application under paragraph 1200-03-09-.02(11). For the following listed 

activities to be considered insignificant, with the exception of parts 1., 2., 19., and 84 of 

this subparagraph, the emissions unit or activity must have a potential to emit less 

than 5 tons per year of each regulated air pollutant that is not a hazardous air pollutant 

and less than 1000 pounds per year of each hazardous air pollutant. No emissions unit 

or activity subject to a federally enforceable applicable requirement (other than 

generally applicable requirements of the state implementation plan) shall qualify as an 

insignificant emissions unit or activity. 

1. Unpaved roadways and parking areas unless permits have specific conditions 

limiting fugitive emissions. This activity is not insignificant if it is subject to new 

source performance standards for nonmetallic mineral processing plants under 

Chapter 1200-03-16 or under 40 CFR part 60. 

2. Paved roadways and parking areas unless permits have specific conditions 

limiting fugitive emissions. This activity is not insignificant if it is subject to new 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 152

source performance standards for nonmetallic mineral processing plants under 

Chapter 1200-03-16 or under 40 CFR part 60. 

3. Equipment used on farms for soil preparation, tending or harvesting of crops, or 

for preparation of feed to be used on the farm where prepared. This activity is not 

insignificant if it is subject to new source performance standards under Chapter 

1200-03-16 or under 40 CFR part 60. 

4. Barbecue pits and cookers; if the products are edible (intended for human 

consumption), and are sold on site, or at one location. 

5. Vacuum pump exhausts when evacuating air conditioning units. This activity is 

not insignificant if emissions exhausted are subject to any standard or other 

requirement of the regulations promulgated to protect stratospheric ozone under 

title VI of the Federal Act. 

6. Wood smoking operations to cure tobacco in barns. 

7. Operations regulated under Chapter 1200-03-04 (Open Burning) of these 

Regulations. 

8. Sewer vents. This activity is not insignificant if it is subject to the new source 

performance standards for petroleum refinery wastewater systems under 

Chapter 1200-03-16 or under 40 CFR part 60. 

9. Natural gas mixing and treatment operations including sampling and testing. 

This activity is not insignificant if it is subject to the new source performance 

standards for onshore natural gas processing plants under Chapter 1200-03-16 

or under 40 CFR part 60. 

10. Wire drawing including drawing coolants and lubricants provided that they are 

water based. 

11. Air drying of wood. 

12. Washing of trucks and vehicles where no solvent cleaners are used. 

13. Sealing or cutting plastic film or foam with heat or hot wires provided no 

chlorofluorocarbons (CFCs)s are emitted. 

14. Combustion units designed and used exclusively for comfort heating purposes 

employing liquid petroleum gas, or propane or natural gas as fuel. 

15. Water cooling towers (except for those at nuclear power plants), water treating 

systems for process cooling water or boiler feedwater, and water tanks, 

reservoirs, or other water containers designed to cool, store, or otherwise handle 

water (including rainwater) that has not been used in direct contact with gaseous 

or liquid process streams containing carbon compounds, sulfur compounds, 

halogens or halogen compounds, cyanide compounds, inorganic acids, or acid 

gases. This activity is not insignificant if chromium-based water treatment 

chemicals are used. 

16. Equipment used exclusively to store, hold, or distribute natural gas. This activity 

is not insignificant if it is subject to the new source performance standards for 

onshore natural gas processing plants under Chapter 1200-03-16 or under 40 

CFR part 60. 
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November, 2011 (Revised) 153

17. Gasoline, diesel fuel, and fuel oil handling facilities, equipment, and storage 

tanks, except those subject to new source performance standards and those 

subject to standards in Chapter 1200-03-18. However, facilities, equipment, and 

storage tanks which are subject only to Chapter 1200-03-18 requirements for 

submerged fill and for maintenance of records documenting quantities of 

gasoline, diesel fuel, and fuel oil dispensed are entitled to the exemption 

provided by this paragraph, despite the qualification of exemption specified in the 

first sentence of this subparagraph. This activity is not insignificant if it is subject 

to the new source performance standards for bulk gasoline terminals under 

Chapter 1200-03-16 or under 40 CFR part 60 and the Stage I gasoline 

distribution MACT standard under Chapter 1200-03-31. 

18. Blast cleaning equipment using a suspension of abrasives in water. 

19. Laboratory equipment, used for research and development or for chemical and 

physical analyses, including ventilating and exhaust systems for laboratory 

hoods used for air contaminants. 

20. Equipment used for inspection of metal products. 

21. Portable, hand operated brazing, soldering, or welding equipment. Portable 

means as being able to be moved by hand from one location to another by an 

individual without the assistance of any motorized or non-motorized vehicle, 

conveyance, or device. 

22. Equipment used for washing or drying products fabricated from metal or glass, 

provided no volatile organic compounds (solvents) are used in the process and 

that no oil or solid fuel is burned. 

23. Foundry sand mold forming equipment to which no heat is applied, and from 

which no organics are emitted. 

24. Equipment used for compression molding and injection molding of plastics which 

emit no hazardous air pollutants. 

25. Mixers, blenders, roll mills, or calendars for rubber or plastics where no materials 

in powder form are added and in which no organic solvents, dilluents, or thinners 

are used. 

26. Equipment used exclusively to package pharmaceuticals and cosmetics or to 

coat pharmaceutical tablets where no hazardous air pollutants are emitted. Any 

associated fuel burning is not included. 

27. Electrically heated equipment used exclusively for heat treating, soaking, case 

hardening, or surface conditioning of metal objects, such as carbonizing, 

nitriding, carbonitriding, siliconizing, or diffusion treating. 

28. Vacuum cleaning systems used exclusively for industrial, commercial, or 

residential housekeeping purposes, except those systems used to collect 

hazardous air contaminants regulated by Chapter 1200-03-11. 

29. Sewage treatment facilities (excluding combustion or incineration equipment, 

land farms, storage silos for dry material, or grease trap waste handling or 

treatment facilities). This activity is not insignificant if it is subject to new source 

performance standards for volatile organic compounds emissions under Chapter 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 154

1200-03-16 or under 40 CFR part 60, MACT standard under Chapter 1200-03-

31, and hazardous organic NESHAP under 40 CFR part 63. 

30. Emergency smoke relief vents that activate only in the event of fire. 

31. Alkaline/phosphate washers and associated burners. 

32. Outdoor kerosene heaters. 

33. Livestock and poultry feedlots. 

34. Wire insulation marking provided the marking materials are water based. 

35. Portable equipment used for the on-site painting of buildings, towers, bridges, 

and roads. 

36. Powder coating operations. 

37. The following equipment, when used exclusively for emergency replacement or 

standby service: 

Internal combustion engines burning natural gas, gasoline, or diesel fuel 

including stationary reciprocating engines, internal combustion (IC) engine driven 

compressors, IC engine driven electric generator sets and IC driven water 

pumps, and equipment components for gas dehydration units, gas-oil separators, 

free water knockouts, iron sponge units, production tank batteries, and natural 

gas liquids separation plants. 

38. Equipment used exclusively to mill or grind coatings and holding compounds 

where all materials charged are in paste form. 

39. Stenciling of cartons or boxes for purposes of shipment and content identification 

provided the inks are water based. 

40. Firefighting equipment and the equipment used for training of firefighting. 

41. Clean steam condensate and steam relief vents where steam has not contacted 

any process organics or other production materials. 

42. End paper labeling of books or other reading material provided no organic or 

solvent based materials are used. 

43. Pressurized vessels designed to operate in excess of 30 psig storing a petroleum 

fuel. This activity is not insignificant if it is subject to new source performance 

standards for petroleum liquid storage vessels under Chapter 1200-03-16 or 

under 40 CFR part 60. 

44. Herbicide and pesticide mixing, application, and storage activities for on site use. 

45. Maintenance activities, such as: machining of metals and plastic curing for nonproduction related operations, vehicle repair shops, carpenter shops, spraying, 

grinding and polishing operations, maintenance shop vents, and miscellaneous 

non-production surface cleaning, preparation, and painting operations. Repairs 

not involving structural changes where no new or permanent stationary source is 

installed. Internal combustion (IC) engine driven welders not part of a production 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 155

process. Any maintenance activity is not insignificant if it is part of a 

manufacturing process. 

46. Miscellaneous activities and equipment, such as: aerosol spray cans, cafeteria 

vents, locker room vents, photo copying, photographic processes, blue print 

machines, decommissioned equipment, solid waste dumpsters, fire training, and 

space heaters. Miscellaneous means as being unrelated to the primary business 

activity of the source. 

47. Cold storage refrigerator equipment powered by electric motors and that do not 

use Class I or Class II ozone depleting substances. 

48. Sampling systems used to withdraw materials for testing and analysis, and vents 

from process instrumentation systems, including area monitors. 

49. Laboratories in primary and secondary schools and in schools of higher 

education used for instructional purposes. 

50. Hydrovactor air separator tanks. 

51. Equipment used exclusively for rolling, forging, pressing, stamping, spinning, or 

extruding either hot or cold plastics provided hazardous air pollutants are not 

emitted. 

52. Grain, metal or mineral extrusion process. This activity is not insignificant if it is 

subject to new source performance standards for metallic mineral processing 

plants under Chapter 1200-03-16 or under 40 CFR part 60. 

53. Bioremediation operations. 

54. Equipment used exclusively for rolling, forging, pressing, stamping, spinning, 

drawing, or extruding either hot or cold metals. 

55. Equipment used exclusively for sintering of ceramics, glass or metals, but not 

exempting equipment used for sintering metal-bearing ores, metal scale, clay, fly 

ash, or metal compounds. This activity is not insignificant if it is subject to new 

source performance standards for primary zinc smelters and glass manufacturing 

operations under Chapter 1200-03-16 or under 40 CFR part 60. 

56. Equipment for the mining and screening of uncrushed native sand and gravel. 

This activity is not insignificant if it is subject to new source performance 

standards for nonmetallic mineral processing plants under Chapter 1200-03-16 

or under 40 CFR part 60. 

57. Equipment used exclusively for mixing and blending water-based adhesives and 

coatings at ambient temperatures. Materials containing less than 5 percent 

volatile organic compounds qualify as water-based for purposes of this 

exemption. 

58. Pulp and paper industry, and cellulosic fiber industry insignificant activities: Any 

of the following activities is not insignificant if it is subject to new source 

performance standards for kraft pulp mills under Chapter 1200-03-16 or under 40 

CFR part 60, and MACT standard under Chapter 1200-03-31. 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.04, continued) 

November, 2011 (Revised) 156

(i) Ash sluice tanks 

(ii) Black liquor mix boxes (e.g., for sulfur addition) 

(iii) Caustic tanks 

(iv) Chemical spills less than reportable quantity 

(v) Deinking cell 

(vi) Demineralized water tanks 

(vii) Dredging 

(viii) Dregs washer 

(ix) Dryer can steam/condensate blowdown 

(x) Electrical charging station 

(xi) Green liquor clarifiers 

(xii) Green liquor tanks 

(xiii) Grinding/blasting for nondestructive testing of metals 

(xiv) High density pulp storage tanks 

(xv) Hydrapulper 

(xvi) Hydroblasting (e.g., evaporators) 

(xvii) Instrument air dryers and distribution 

(xviii) Lime mud filter filtrate tanks 

(xix) Lime mud piles 

(xx) Liquid sodium hydrosulfide storage tanks 

(xxi) Log flumes 

(xxii) Neutralized spent cooking acid tanks 

(xxiii) Oilers on chain, etc. 

(xxiv) Open containers 

(xxv) Paper machine “blowdown” with air for cleanup 

(xxvi) Pressure filters 

(xxvii) Pressurized pulp washers 

(xxviii) Process raw water treatment (e.g., phosphate) 

(xxix) Pulp tanks and stock chests 

(xxx) Railroad flares 

(xxxi) Saltcake storage tanks vented to the recovery system 

(xxxii) Slaker vents 

(xxxiii) Smelt spout cooling water tanks 

(xxxiv) Smelt spout covers (dog houses) 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

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November, 2011 (Revised) 157

(xxxv) Starch or dye make-down tanks 

(xxxvi) Strong black liquor tanks 

(xxxvii) Tank interior coatings (epoxy resins) 

(xxxviii) Turpentine loading 

(xxxix) Weak wash tanks 

(xl) Wheel barrows 

(xli) White liquor clarifiers 

(xlii) White liquor oxidizer 

(xliii) White liquor tanks 

(xliv) Winder 

59. Steam heated wood drying kilns excluding chemically treated wood. 

60. Warehouse storage of packaged raw materials and finished goods emitting no 

hazardous air pollutants. 

61. Electric stations, including transformers, and substations. Any activity is not 

insignificant if it is subject to MACT standard under Chapter 1200-03-31. 

62. Groundwater monitoring wells. 

63. Lubricants and waxes used for machinery lubrication. 

64. Use of materials for marking and grading of lumber, and the storage of lumber. 

65. Equipment used exclusively to package photographic chemicals, and food 

preservatives excluding any associated fuel burning. 

66. Air purification systems. This activity is not insignificant if emissions exhausted 

are from any manufacturing or other industrial processes and subject to any 

standard or other requirement of the regulations promulgated to protect 

stratospheric ozone under title VI of the Federal Act. 

67. Equipment used in the production of enteric food coatings. 

68. Equipment used in the production of aqueous inks in which no organic solvents, 

dilutents, or thinners are used. 

69. Equipment used to transport or store process wastewater streams to a 

wastewater treatment facility (i.e. floor drains, sumps, drain headers, manhole 

covers). This activity is not insignificant if it is subject to the new source 

performance standards for petroleum refinery wastewater systems under 

Chapter 1200-03-16 or under 40 CFR part 60. 

70. Drum melter operations for low-volatility solid and semi-solid materials using 

steam or electrical heating. This activity is not insignificant if it is subject to the 

new source performance standards for electric arc furnaces under Chapter 1200-

03-16 or under 40 CFR part 60. 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.04, continued) 

November, 2011 (Revised) 158

71. Vacuum producing equipment including vacuum seal pots and vacuum pumps. 

Any associated internal combustion engines are excluded. 

72. Presses used exclusively for extruding metals, minerals, plastics, rubber, or 

wood except where halogenated carbon compounds or hydrocarbon organic 

solvents are used as foaming agents. Presses used for extruding scrap materials 

or reclaiming scrap materials are not exempt. 

73. Tank trucks, railcars, barges, and trailers excluding transfer operations at loading 

and unloading stations, and internal cleaning operations. 

74. Portable dumpsters and other containers for liquids (excluding transfer 

operations), and solid waste dumpsters, including handling equipment and 

associated activities. 

75. Environmental field sampling activities. 

76. Parts washer where the vapor pressure of cleaners is less than 1.52 psia. Any 

activity is not insignificant if it is subject to the halogenated solvent cleaning 

MACT standard under Chapter 1200-03-31. 

77. Instrument air dryers and distribution. 

78. Automatic oiling operations (e.g., oiler on chains). 

79. Machine blowdown with air for cleanup. 

80. Storage tanks of any size containing exclusively soaps, detergents, surfactants, 

waxes, glycerine, vegetable oils, greases, animal fats, sweeteners, corn syrup, 

aqueous salt solutions or aqueous caustic solutions provided an organic solvent 

has not been mixed with such materials. This activity is not insignificant if 

appropriate lids and / or covers are not utilized. 

81. Loading and unloading systems for railcars, tank trucks, or watercraft that handle 

only the following liquid materials provided an organic solvent has not been 

mixed with such materials: soaps, detergents, surfactants, waxes, glycerine, 

vegetable oils, greases, animal fats, sweeteners, corn syrup, aqueous salt 

solutions, or aqueous caustic solutions. This activity is not insignificant if 

appropriate lids and / or covers are not utilized. 

82. Sanitary sewer systems. 

83. Treatment systems for potable water. 

84. Any pilot plant provided that the following conditions are satisfied: 

(i) Pilot plant facilities which demonstrate to the satisfaction of the Technical 

Secretary, that such facilities do not significantly impact ambient air quality. 

Air quality modeling may be required by the Technical Secretary. 

(ii) The facility is constructed and operated only for the purpose of: 

(I) Testing the manufacturing or marketing potential of a proposed 

product, or 

(II) Defining the design of a larger plant or future processes, or 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.04, continued) 

November, 2011 (Revised) 159

(III) Studying the behavior of an existing plant through modeling in the 

pilot plant. 

85. Sodium hypochlorite storage tanks. 

86. Industrial-Commercial-Institutional Steam Generating Facility exemptions are as 

follows: Any of the following activities is not insignificant if it is subject to new 

source performance standards for steam-generating facilities under Chapter 

1200-03-16 or under 40 CFR part 60. 

(i) Bunker room exhaust 

(ii) Coal sampling and weighing operations 

(iii) Alternative solid fuel handling 

(iv) Vents from ash transport systems not operating at positive 

pressure (e.g. ash hoppers) 

(v) Coal combustion by-product disposal (except for dry stacking 

and intermittent ash hauling and disposal) 

(vi) Building ventilation other than boiler room, coal handling, and 

ash loading (e.g. turbine room, battery room) 

(vii) Lubrication of equipment 

(viii) Hydrogen vents 

(ix) Steam vents 

(x) Air compressor and distribution systems 

(xi) Emergency equipment 

(xii) Fugitive dust from operation of a passenger automobile, station 

wagon, pickup truck, or van. 

(xiii) Pressure relief valves 

(xiv) Test gases and bottled gases 

(xv) Emissions from a laboratory. If a facility manufactures or 

produces products for profit in any quantity, it may not be 

considered to be a laboratory under this item. Support part of 

the laboratory. Support activities do not include the provision of 

power to the laboratory from sources that provide power to 

multiple projects or from sources which would otherwise require 

permitting, such as boilers that provide power to an entire 

facility. 

(xvi) Safety devices such as fire extinguishers 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.04, continued) 

November, 2011 (Revised) 160

(xvii) Equipment used for hydraulic or hydrostatic testing 

(xviii) Food preparation for onsite consumption 

(xix) Oil vapor extractor (e.g. turbine seal oil, turbine lube oil) 

87. Sulfuric acid tanks. This activity is not insignificant if it is subject to new source 

performance standards for sulfuric acid plants under Chapter 1200-03-16 or 

under 40 CFR part 60. 

88. Soil “borrow” pits. This activity is not insignificant if it is subject to new source 

performance standards for nonmetallic mineral processing plants under Chapter 

1200-03-16 or under 40 CFR part 60. 

89. Phosphoric acid tanks. This activity is not insignificant if it is subject to new 

source performance standards for phosphate fertilizer industry under Chapter 

1200-03-16 or under 40 CFR part 60. 

90. Sodium carbonate tanks. 

91. Firearms, firing ranges, and protective services facilities. 

92. Physical testing of air filtration. This activity is not insignificant if emissions 

exhausted are from any manufacturing or other industrial processes and subject 

to any standard or other requirement of the regulations promulgated to protect 

stratospheric ozone under title VI of the Federal Act. 

93. Safe venting of compressed gas cylinders which have lost structural integrity. 

94. Testing, inspection, cleaning or drying of personal protective equipment such as 

respirators, clothing, gloves, shoe scuffs, etc. 

95. Equipment used to process or handle solid materials or solid wastes such as 

bottle smashers, bulb crushers, balers, compactors, and can puncturers. 

(g) Unless specifically required under part 1200-03-09-.04(5)(b)4., the following emission 

units or activities, or stationary sources that qualify as ‘insignificant activities’ are not 

required to be included in a permit application under paragraph 1200-03-09-.02(11). 

1. Combustion emissions from propulsion of mobile sources, except for vessel 

emissions from Outer Continental Shelf sources. 

2. Air-conditioning units used for human comfort that do not have applicable 

requirements under title VI of the Act. 

3. Ventilating units used for human comfort that do not exhaust air pollutants into 

the ambient air from any manufacturing/industrial or commercial process. 

4. Non-commercial food preparation. 

5. Consumer use of office equipment and products, not including printers or 

businesses primarily involved in photographic reproduction. 

6. Janitorial services and consumer use of janitorial products. 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.04, continued) 

November, 2011 (Revised) 161

7. Internal combustion engines used for landscaping purposes. 

8. Laundry activities, except for dry-cleaning and steam boilers. 

9. Bathroom/toilet vent emissions. 

10. Emergency (backup) electrical generators at residential locations. 

11. Tobacco smoking rooms and areas. 

12. Blacksmith forges. 

13. Plant maintenance and upkeep activities (e.g., grounds-keeping, general repairs, 

cleaning, painting, welding, plumbing, re-tarring roofs, installing insulation, and 

paving parking lots) provided these activities are not conducted as part of a 

manufacturing process, are not related to the source’s primary business activity, 

and not otherwise triggering a permit modification. 

14. Repair or maintenance shop activities not related to the source’s primary 

business activity, not including emissions from surface coating or de-greasing 

(solvent metal cleaning) activities, and not otherwise triggering a permit 

modification. 

15. Portable electrical generators that can be moved by hand from one location to 

another. 

16. Hand-held equipment for buffing, polishing, cutting, drilling, sawing, grinding, 

turning or machining wood, metal or plastic. 

17. Brazing, soldering and welding equipment, and cutting torches related to 

manufacturing and construction activities that do not result in emission of HAP 

metals. 

18. Air compressors and pneumatically operated equipment, including hand tools. 

19. Batteries and battery charging stations, except at battery manufacturing plants. 

20. Storage tanks, vessels, and containers holding or storing liquid substances that 

will not emit any VOC or HAP. 

21. Storage tanks, reservoirs, and pumping and handling equipment of any size 

containing soaps, vegetable oil, grease, animal fat, and nonvolatile aqueous salt 

solutions, provided appropriate lids and covers are utilized. 

22. Equipment used to mix and package, soaps, vegetable oil, grease, animal fat, 

and nonvolatile aqueous salt solutions, provided appropriate lids and covers are 

utilized. 

23. Drop hammers or hydraulic presses for forging or metalworking. 

24. Equipment used exclusively to slaughter animals, but not including other 

equipment at slaughterhouses, such as rendering cookers, boilers, heating 

plants, incinerators, and electrical power generating equipment. 

25. Vents from continuous emissions monitors and other analyzers. 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.04, continued) 

November, 2011 (Revised) 162

26. Natural gas pressure regulator vents, excluding venting at oil and gas production 

facilities. 

27. Hand-held applicator equipment for hot melt adhesives with no VOC in the 

adhesive formulation. 

28. Equipment used for surface coating, painting, dipping or spraying operations, 

except those that will emit VOC or HAP. 

29. CO2 lasers, used only on metals and other materials which do not emit HAP in 

the process. 

30. Consumer use of paper trimmers/binders. 

31. Electric or steam-heated drying ovens and autoclaves, but not the emissions 

from the articles or substances being processed in the ovens or autoclaves or 

the boilers delivering the steam. 

32. Salt baths using nonvolatile salts that do not result in emissions of any regulated 

air pollutants. 

33. Laser trimmers using dust collection to prevent fugitive emissions. 

34. Bench-scale laboratory equipment used for physical or chemical analysis, but not 

lab fume hoods or vents. 

35. Routine calibration and maintenance of laboratory equipment or other analytical 

instruments. 

36. Equipment used for quality control/assurance or inspection purposes, including 

sampling equipment used to withdraw materials for analysis. 

37. Hydraulic and hydrostatic testing equipment. 

38. Environmental chambers not using hazardous air pollutant (HAP) gasses. 

39. Shock chambers. 

40. Humidity chambers. 

41. Solar simulators. 

42. Fugitive emission related to movement of passenger vehicles, provided the 

emissions are not counted for applicability purposes and any required fugitive 

dust control plan or its equivalent is submitted. 

43. Process water filtration systems and demineralizes. 

44. Demineralized water tanks and demineralizer vents. 

45. Boiler water treatment operations, not including cooling towers. 

46. Oxygen scavenging (de-aeration) of water. 

47. Ozone generators. 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.04, continued) 

November, 2011 (Revised) 163

48. Fire suppression systems. 

49. Emergency road flares. 

50. Steam vents and safety relief valves. 

51. Steam leaks. 

52. Steam cleaning operations. 

53. Steam sterilizers. 

Authority: T.C.A. §§ 4-5-202 et. seq. and 68-201-105. Administrative History: Original Rule certified 

June 7, 1974. Amendment filed January 10, 1977; effective February 9, 1977. Amendment filed March 

31, 1987; effective May 10, 1987. Amendment field September 27, 1989; effective November 11, 1989. 

Amendment filed May 17, 1990; effective July 1, 1990. Amendment filed April 22, 1993; effective June 5, 

1993. Amendment filed September 7, 1993; effective November 21, 1993. Amendment filed June 12, 

1995; effective August 26, 1995. Amendment filed July 25, 1996; effective October 6, 1996. Amendment 

filed November 30, 1999; effective February 6, 2000. Amendment filed November 29, 2001; effective 

February 12, 2002. Amendments filed September 9, 2005; effective November 23, 2005. Amendment 

filed June 1, 2009; effective August 15, 2009. 

1200-03-09-.05 APPEAL OF PERMIT APPLICATION DENIALS AND PERMIT CONDITIONS. 

(1) In any case where the Technical Secretary or the Department denies a permit application, 

this denial is appealable to the Board if a petition of appeal is received by the Technical 

Secretary within thirty (30) days of receipt of the denial letter by the owner or operator. 

(2) The letter of denial of the application shall include the basis for denial and notify the party of 

their right to appeal and of the right to legal counsel. 

(3) The reasons the petitioner feels the permit should have been granted must be filed as part of 

the petition. Additionally a party may request prehearing discovery, as provided in T.C.A. §4-

5-306, by filing and detailing the request with the petition. 

(4) Within thirty (30) days of receipt of the petition for appeal of a permit denial, the Technical 

Secretary shall notify the petitioner of the time and place for the hearing. 

(5) In any case where a condition is placed on a permit, the imposition of that permit condition 

may be appealed by filing a petition for reconsideration of the permit conditions. The petition 

for reconsideration of permit conditions shall specify which conditions and portions of 

conditions are objected to and specifying in detail the objections. The petition of appeal must 

be delivered to the Technical Secretary within thirty (30) days after the mailing date of the 

permit. 

 If the Technical Secretary is considering denying the petition he shall schedule a conference 

with the petitioner to discuss the matters under appeal within forty-five (45) days of receipt of 

the petition. If the Technical Secretary’s resultant decision on the matter under appeal 

aggrieves the petitioner, the petitioner may request a hearing pursuant to T.C.A. §68-25-108. 

(6) All applicable provisions of T.C.A. §4-5-301 et seq., on contested cases shall apply to the 

hearing before the Board on such appeals. 

(7) The denial of a permit application by the Technical Secretary stands, unless the majority of a 

quorum of the Board votes to overturn the denial after the hearing. 
CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 

(Rule 1200-03-09-.05, continued) 

November, 2011 (Revised) 164

(8) A permit condition specified by the Technical Secretary after the hearing provided for in 

paragraph (5) stands unless on appeal the Board votes to modify or delete the condition by a 

majority of a quorum of the Board. 

Authority: T.C.A. §§ 68-25-105 and 4-5-202 et. seq. Administrative History: Original rule filed 

October 1, 1979; effective November 16, 1979. Amendment filed May 17, 1990; effective July 1, 1990. 

Administrative History has been edited to delete a November 6, 1988 Amendment. No evidence of this 

filing exists, and this is an editorial mistake by the Secretary of State. June 30, 2001.