RULES OF TENNESSEE DEPARTMENT OF ENVIRONMENTAND CONSERVATION BUREAUOF ENVIRONMENT DIVISIONOFAIR POLLUTIONCONTROL CHAPTER 1200-03-09 CONSTRUCTIONAND OPERATINGPERMITS
TABLE OF CONTENTS

1200-0349-.01 Constnrction Permits 1200-0349-.02 Operating Permits 1200-03-09-.03 General Provisions 1200-03.05.04 Exemptions 1200-03-05.05 Appeal of PermitApplication Denialsand PermitConditions 1200-03-09-.O1 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 constructionor 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 lessthan one hundred twenty (120) days prior to the estimated date of construction. (c) In additionto 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 beemitted by the source or emitted byassociated 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 TennesseeAir QualityAct. (8) NOconstruction permit shall be issued by the Technical Secretary if the approval to construct or modifyan air contaminantsourcewould result ina 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 issuedto the source or modification to establish as conditions of the permit, the necessary emission limitsand requirements to assure that these regulatory requirements are met. The appropriate enforcement action shall be pursued to insurethat ambient air quality standards and other regulatory

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CHAPTER 1200-03-09

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.
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 meetingthe requirements in the EPA publication No. 45012-78-027R, "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 uponwritten approval from the EPAAdministrator.
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 1200-03-24of these regulations.
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 locationof 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.
Reserved (2) Definitions. As used inthis chapter all terms not defined hereinor insubsequent partsof this chapter shall havethe meaning given them inChapter 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 maintenanceof the ambient air quality standards specified inthe regulations under this Division 1200-03, or of the nationalambient air quality standards including, but not limitedto measures such as: 1. Emission limitations.
2. State emissioncharges or other economic incentivesor disincentives.
3. Closingor relocation of residential, commercial, or industrialfacilities.
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 inaccordancewithstandby plans.

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### 5. Periodic inspection and testing of motor vehicle emission control systems, at such time it isdeterminedthat such programsarefeasible 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 conversionof gaseous fuels.


### 7. Any transportation control measures considered feasible and practicable.


### 8. Any variation of, or alternativeto 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 promulgatedby the Administrator of the Environmental Protection Agency and published inthe Codeof 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 modifiedair 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 cleaningor treatmentor innovativ6fuel combustion techniques for control of such pollutant. In no event shall application of best available control technology result in emissions of any pollutantwhich would exceedthe emissions allowed by any applicable standard under Chapters 1200-03-11 and 1200-03-16of these rules. Ifthe Technical Secretary determines that technological or economic limitations on the application of measurement methodologyto 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, setforth the emission reduction achievableby implementationof 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 insubparagraph(4)(b) of this rule, which are subject to the provisionsof paragraph(4) of this rule. (e) "Lowest achievable emission rate" (LAER) means, for any stationary source the more stringent rateof emissions basedonthe 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, unlessthe owner or operator of the proposedsource demonstratesthatsuch limitationsare notachievable;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, meansthe lowest achievableemissions ratefor the newor modified emissions unitswithin the stationary source. Inno event shall the application of this term permit a proposed new or modified stationary source to emit any air

June, 2011 (Revised)

## - CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) 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)l. of this rule, which are subject to the provisions of subparagraph (5)(b) of this rule. The definition at subpart (5)(b)l.(xviii) of this ruleapplies to majorsources and major modifications in non-attainment areas (3) Reserved 

### (4) Preventionof SignificantAir Quality Deterioration (a) ~eneral 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 requirementsof this paragraph, as applicable, have been met.
2. The requirements of this paragraph shall only apply to a proposed major

I 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 owneror operatorwho constructsor operatesa source or modification not in accordancewith the application submitted pursuant to this paragraphor 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 subjectto appropriate enforcementaction. 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 monthsof the completiondatespecified 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 monthsof the projected and approved commencement date.
5. 

### ' Approval to construct shall not relieveany owner or operator of the responsibility to comply fully with the applicable provisions underthis Division 1200-03 and any other requirementsunder local, State, or Federal law.
If a particular source or modification becomes a major stationary source or major modification solely by virtue of a relaxation in any enforceable limitationwhich was established after August 

### 7, 1980, on the capacity of the source or mod~fication 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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### CONSTRUCTION AND OPERATING PERMITS (Rule 1200-03-09-.01, continued) CHAPTER 1200-03-09



### 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, 

### 1990, will remain in effect and binding until such time as the permittee files a completed application to obtain rescission. This applicationfor rescission may befiled at any time bythe 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" byAugust 7,1977. (v) Ifa source or modificationwhose permit is rescindedwere laterfound to be causing or contributing to an increment violation, additionalcontrol may be requiredifdetermined necessarybythe 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 projectsat existingemissions 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 possibilitythat 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 initems (b)38.(i)(i) through(IN) 

### of this paragraph for calculating projected actual emissions. (i) Before beginning actual construction of the project, the owner or operator shall document and maintaina recordof the following information: (I) A description ofthe project; (11) Identification of the emissions unit(s)whose emissionsof a regulated NSR pollutant could beaffectedbythe project; and (Ill) 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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### CONSTRUCTION AND OPERATINGPERMITS CHAPTER 1200-03-09 (Rule 1200-03119-.01. continued) emissions, the amount of emissions excluded under item (b)38.(i)(lll) of this paragraph and an explanation for why such amount was excluded, and any nettingcalculations, if applicable. (ii) If the emissions unit is an existing electric utility steam generating unit, before beginning actual construction,the owner or operatorshall provide a copy of the information set out in sub-part (a)ll.(i) of this paragraphto the Technical Secretary. Nothing in this sub-part (a)ll.(ii) shall be construed to require the owner or operatorof such a unit to obtain any determination from the Technical Secretarybeforebeginning actualconstruction. (iii) The owner or operator shall monitor the emissions of any regulated NSR pollutantthat could increaseas a resultof the project and that is emitted by any emissions unit identified in item (a)ll.(i)(ll) of this paragraph; and calculate and maintain a record of the annual emissions, intons per year on a calendar year basis, for a period of 

### 5 years following resumptionof 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 emissionsunit. (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)ll.(ii) of this paragraph setting out the unit's annual emissions duringthe calendar year that preceded submissionof 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 reportto the Technical Secretary if the annual emissions, intons peryear, from the project identifiedinsubpart (a)ll.(i) of this paragraph, exceed the baseline actual emissions (as documented and maintained pursuant to item (a)ll.(i)(lll) 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)ll.(i)(lll) of this paragraph. Such report shall be submitted to the Technical Secretarywithin 60 days after the end of such year. The report shall containthefollowing: (I) The name, address and telephone number of the major stationary source; (11) The annual emissions as calculated pursuantto sub-part (a)ll.(iii) of this paragraph; and (Ill) Any other informationthat the owner or operatorwishes 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)ll. of this paragraph available for review upon request for inspection by theTechnical Secretary or the general public. (b) Definitions. As used in this paragraph, all terms not defined herein shall have the meaning given them inChapter 1200-03-02.

June, 201 1 (Revised) 6CONSTRUCTIONAND OPERATINGPERMITS (Rule 1200-03-09-.01, continued) CHAPTER 1200-03-09

1. "Major stationarysource" means: (i) Any of the following stationary sources, which emit or have the potential to emit, 100tons peryear or more of a regulatedNSR pollutant. (1) Fossil-fuel fired steam electric plants of more than 250 million BTU per hour heat input. (11) Municipal incinerators (or combinations thereof) capable of charging morethan 250 tons of refuse perday. (Ill) 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 exceeding300,000 barrels. (v) Coalcleaningplants (withthermaldryers) (vl) Krafl pulp mills (VII) Portland cement plants (VIII) Primary zinc smelters (IX) Ironand steel mill plants (x) Primary aluminumore reduction plants (XI) Primarycopper 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 leadsmelters (XXII) Fuel conversion plants (XXIII) Sintering plants

June. 201

### 1(Revised)CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01. continued) (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)l.(i) of this paragraph, any stationary source which emits or has the potentialto emit, 250 tons per year or more of a regulatedNSR pollutant. (iii) Any physical change that would occur at a stationary source not otherwise qualifyingunder part (b)l. as a major stationary source ifthe 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 ina significantemissions 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 increaseof that pollutantfrom the major stationary source. (i) A physicalchange or change inthe method of operationshall not include: (I) Routine maintenance, repair,or replacement; (11) 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; (Ill) Use of an alternative fuel by reasonof an order or rule under section 125of 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 Divisionof SolidWaste 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 regulationsof this Division 1200-03. (VII) Any change inownershipat a stationarysource.

June, 201 1 (Revised)CONSTRUCTIONAND OPERATINGPERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01. continued) (VIII) Reserved. (IX) The installation, operation, cessation, or remova! of a temporary clean coal technology demonstration project, provided that the projectcomplies with:
I. The State ImplementationPlanfor the State in which the project is located, and
II. Other requirementsnecessaryto attain and maintainthe national ambient air quality standards during the project and afler 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 exemptionshall apply on a pollutant-by-pollutantbasis.

(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)Z.(viii) of this paragraphshall apply. 3. Major sources and modificationsfor ozone (i) A source that is major for either volatile organic compounds or nitrogen oxidesshall be considered majorfor ozone. (ii) Any significant emissions increase from any emissions units or net emissions increase at a major stationary source that issignificant for either volatile organic compounds or nitrogen oxides shall be considered significant for ozone. 4. Netemission 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 thefollowing exceedszero: (I) The increase in emissions from a particular physical change or change in the method of operation at a stationary source, as calculated pursuantto part(c)4. ofthis paragraph; and (11) 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)(ll) shall be determined as provided in part (b)45., except that items (b)45.(i)(lll) and (b)45.(ii)(lV) of this paragraph shall notapply. (ii) An increase or decrease in actual emissions is contemporaneouswith the increase from the particularchange only ifitoccurs between:

June, 2011 (Revised)CONSTRUCTION AND OPERATINGPERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) (I) The date five years before a completed application for the particular change issubmitted; and (11) The date thatthe increasefrom the particularchange occurs (iii) An increaseor decrease inactual emissions is creditable only if: (I) It occurs within the five years prior to the date a completed applicationfor the particularchange issubmitted;and (11) 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 particularchange occurs; and (Ill) Reserved. (iv) An increase or decrease in actual emissions of sulfur dioxide, particulate matter, or nitrogen oxides that occurs beforethe 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 inactual emissions is creditable onlyto the extent that the new level of actual emissions exceedsthe old level. (vi) A decrease inactual emissions is creditable only tothe 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; (11) Itisenforceableas a practical matter at and after the time that actual construction on the particular change begins; and (Ill) It has approximately the same qualitative significance for public health and welfare as that attributed to the 'increase from the particularchange; and (IV) Reserved. (vii) An increase that resultsfrom a physical change at a source occurswhen 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 180days. (viii) Sub-part (b)22.(i) of this paragraph shall not apply for determining creditableincreases and decreases.


### 5. "Potential to emf means the maximum capacity of a stationary source to emit a pollutant under its physical and operational design. Any physical or operational limitationon the capacity of the source to emit a pollutant, including air pollution control equipment and restrictionson hoursof operationor on the type or amount of materialcombusted, stored, or processed, shall be treatedas partof its design

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### CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-0309-.01, continued) if the limitation or the effect it would have on emissions is legally enforceable. Secondary em~ssions do not count in determining the potential to emit of a stationary source.
6. "Stationaty source" means any building, structure, facility, or installation which emitsor mayemit a regulated NSR pollutant exceptthe activitiesof 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 belongto the same "Major Group" (i.e., describedbythefirst two digits in the code which is specified in the Standard Industrial Classification Manual, 1972, as amended by the 1977 Supplement 

### (US. Government Printing 

## -- Officestock numbers41014066 and 003-005-001764, 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 unitfirstoperated. (ii) An existing emissions unit is any emissions unit that does not meet the requirements insub-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 inthe method of operation (including fabrication, erection, installation, demolition, or modification of an emissions unit)which would result ina change inactual emissions.
10. "Commence" as applied to construction of a major stationary source or major modificationmeansthat the owner or operator has all necessary preconstruction approvalsor permitsand 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 allowedin 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 completedwithinthe time frame as allowedinpart 1200-03-09-.01(4)(a)4.
11. "Necessary preconstruction approvalsor permits" means all permitsor approvals required under air quality control lawsand 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 activitiesinclude, but are not limitedto, installation of buildingsupportsand foundations, laying of underground pipework, and construction of permanent storage svuctures. With respect to a 

### change in method of operation this term

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### CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) refersto those on-site activities, other than preparatoryactivities, which markthe initiationof 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 notcriteria 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 ugh3 (annual average) of the pollutant for which the minor source baseline date isestablished. (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 inthis paragraph.
15. "Baselinedate": (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, February8, 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) Inthe case of particulate matter and sulfur dioxide, August 7, 

### 1977, and (11) Inthe &se of nitrogendioxide, February8, 1988. (iii) The baseline date is established for each pollutant for which incrementsor other equivalent measures have been established if: (I) The area in which the proposed source or modification would construct is not designatedas a nonattainment area for the pollutant onthe date of its complete application. (11) 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 levelwhich exists in the baseline area at the time of the applicable minor source baseline date. A baseline concentration is determined for each pollutantfor which a minorsource baselinedate 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)l6.(iii); and

June, 2011 (Revised)

I I

### CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, contmued) (ii) The allowable emissions of major stationary sources that commenced construction before the major source baseline date, but were not in operation bythe applicable minor source baselinedate. (iii) The following will not be included in the baseline concentration and will affectthe applicable maximum allowable increment increase(s): (I) Actual emissions from any major stationary source on which constructioncommenced after the major source baselinedate; and (11) Actual emissions increases and decreases at any stationary source occurringafterthe minorsource baselinedate.
17. "Allowableemissions"meansthe emissionsrate of a stationary source calculated using the maximum rated capacity of the source (unless the source is subjectto legallyenforceable limitswhich restrict the operating rate, or hours of operation, or both) and the moststringentof thefollowing: (i) The applicable standards under this Division 1200-03 or in the State lmplementation Plan, including thosewith a future compliancedate; 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 futurecompliancedate. 18. "Legally enforceable" means all limitations and conditions which are enforceable by theTechnical Secretaryand the EPAAdministrator, including those under this Division 1200-033 and the State lmplementation Plan, and any permit requirements established pursuantto this Rule 1200-03-09-.01. 19. "Secondary emissions" means emissions which occur as a result of the constructionor 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 avessel. 20. "Innovative control technology"meansany 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 incurrentpracticeor of achievingat least comparable reductionsat lower cost interms of energy, economics,or non-air quality environmentalimpacts.
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

June. 2011 (Revised) 13CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) whether a significant emissions increase has occurred, or for establishinga PAL under subparagraph (s) of this paragraph. Instead, palts (b)38. and (b)45. of this paragraph shall applyfor those purposes. 

## I (i) Ingeneral, actual emissions as of a particular date shall equal the average rate, in tons per year, at which the unit actually emittedthe 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 combustedduringthe selectedtime period. (ii) The Technical Secretary may presume that source-specific allowable emissions for the unit are eq~ivalent o the actual emissions of the unit. (iii) For any emissions unit that has not begun normal operations on the particulardate, actual emissions shall equal the potential to emit of the unit onthat date.
23. "Complete" means, inreferenceto an applicationfor a permit, that the application contains all the information necessary for processing the application. Designating an application complete for purposes of permit processingdoes not preclude the Technical Secretary from requesting or accepting any additional information.
24. 'Significant" means, in referenceto 

### a net emissions increaseor the potential of a source to emit any of the following pollutants, a rate of emissions that would equal or exceed any of thefollowing rates: (i) Pollutantand Emissions Rate 

### (I) Carbon monoxide: 100tons per year (tpy) (11) Nitrogenoxides: 40 tpy (Ill) Sulfurdioxide: 40 tpy (IV) Particulate matter: 25 tpy of particulate matter emissions; 15tpy of PMq0 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: 

### 7tpy (IX) Total reduced sulfur (including H2S): 10tpy (X) Reduced sulfur compounds (including H2S): 10tpy

June, 201 1 (Revised)

### CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) (XI) Municipal waste combustor organics (measured as total tetrathrough octa- chlorinated dibenzo-pdioxins and dibenzofurans): 3.2 x 10-6 megagrams peryear (3.5 x tpy). (XII) Municipalwaste combustor metals (measured as particulate matter): 15tPY (XIII) Municipal waste combustor acid gases (measured as sulfur dioxide and hydrogenchloride): 36 megagrams peryear 

### (40 tpy) (XIV) Ozone depleting substances (listed under Section 602 of the federal Clean Air Act): 40 tpy (XV) Hydrogensulfide: 10tpy (XVI) Municipalsolid waste landfill emissions (measured as non-methane organic compounds): 50 tpy (XVII)PM25: 10 tpy of direct PM2~ emissions; 40 tpy of sulfur dioxide emissions; 40 tpy of nitrogen oxide emissions unless demonstrated not to bea PMz5 precursor under Item47(i)(lll) ofth~s ubparagraph. (ii) "Significant" means, in reference to a net emissions increase or the potential of a source to emit a regulated NSR pollutant subject to regulationsof EPA underthe Clean Air Act and that subpart (b)24.(i) does not list, any emissions rate. (iii) Notwithstanding subpart (b)24.(i),"significant" meansany emissionsrate or any net emissions increase associated with a major stationary source or major modification, which would constructwithin 10 kilometersof 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 authorityover 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 otherthan high terrain. 28. "Adverse impactonvisibility" 

### meansvisibility 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 basistaking into accountthe geographic extent, intensity, duration, frequencyand time of visibility impairments,and how these factors correlatewith the times of visitor use of the Federal Class I

### area, and with the frequency and timingof naturalconditions that reduce visibility.
29. "Volatileorganic compounds (VOC)" means any compound of carbon, excluding carbon monoxide, carbondioxide, carbonic acid, metallic carbidesor carbonates, and ammonium carbonate, which participates in atmospheric photochemical reactions.

June, 2011 (Revised)CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) (I) Thls includes any such organic compound other than the following, which have been determined to have negligible photochemical reactivity: methane; ethane; methylene chloride (dichloromethane); l,l,ltrichloroethane (methyl chloroform); 

### 1,1,2-trichloro-l,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 

### ,l ,l

-trifluoro 2,2-dichloroethane (HCFC-123); 1,I,I ,2- tetrafluoroethane (HFC-134a); 

### I ,ldichloro 1 -fluoroethane (HCFG14lb); lchloro 1,ldifluoroethane (HCFC-1426); 2-chloro-1.1.1.2- tetrafluoroethane (HCFC-124); pentafluoroethane (HFC-125); 1,1,2,2- tetrafluoroethane (HFC-134); 1

### .I ,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 ,l .l,2,2- pentafluoropropane (HCFG225ca); 1,3dichloro-l,l,2.2,3- pentafluoropropane (HCFG225cb); 

### 1,1,1,2,3,4,4,5,5,5decafluoropentane (HFC-43-lOmee); difluoromethane (HFC-32); ethylfluoride (HFC-161); 1,I 

### ,1,3,3,3hexafluoropropane (HFC-236fa); 1,1.2,2,3-pentafluoropropane (HFC-245ca); 1,I 

### ,2,3,3-pentafluoropropane (HFC-245ea); 1 ,?,I ,2,3- pentafluoropropane (HFC-245eb); 1

### ,I ,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-151 a); 1,2-dichloro-I ,l ,2-trifluoroethane (HCFC-123a); 

### 1,1,1,2,2,3,3.4,4-nonafluoro-4-methoxy-butane (C4F90CH3); 2-(difluoromethoxymethyl>l,1.1,2,3,3,3-heptafluoropropane ((CF3hCFCFzOCHd; 1-ethoxy-1

### ,1,2,2,3,3,4,4,4-nonafluorobutane (C~FQOCZH~); 

### 2-(ethoxydifl~0romethyl)-l,1,1,2,3,3,3-heptafluoropropane ((CF3)2CFCF20C2H5); methyl acetate; 

### 1,1,1,2,2,3,3-heptafluoro-5methoxypropane (n-C3F70CH3. HFE-7000); 3-ethoxy-1,l ,1,2.3,4,4,5,5,6,6,6- 

### dodecafluoro-2-(trifluoromethyl) hexane (HFE-7500), 1,l ,1,2,3,3,3- heptafluoropropane (HFC 227ea); methyl forrnate (HCOOCH3); propylene carbonate; dimethyl carbonate; and perfluorocarbon compounds which fall into theseclasses: (I) Cyclic, branched, or linear, completely fluorinated alkanes; (11) Cyclic, branched, or linear, completely fluorinated ethers with no unsaturations; (Ill) Cyclic, branched, or linear, completely fluorinated tertiaty amines with no unsaturations; and (IV) Sulfur containing perfluorocarbons with no unsaturations and with sulfur bonds only to carbon andfluorine. (ii) For purposesof 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 ifthe amount of such compounds is accurately quantified, and such exclusion is approved bythe Technical Secretaty. (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

June, 201 1 (Revised) 16

### CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) satisfaction of the Technical Secretary, the amount of negligibly-reactive compounds inthe 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 pursuantto 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 limitationsor 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 materiils, 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 personalcomfort and well-being, whether caused by transformation, conversion, or combinationwith 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 paragraphare 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 meaningof part 54. of this subparagraph, or the emissions unit completely takes the place of an existingemissions unit. (ii) The emissions unit is identicalto or functionally equivalentto 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 permanentlydisabled, or permanentlybarred from operation by a permit that is enforceable as a practical matter. If the replacedemissions 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. Resewed.
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)

June. 201

### 1(~evised) 17CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) and other pollutants to the environment priorto 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" meansthe maximum annual rate, in tons per year. at which an existing emissions unit is projectedto emita 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. ifthe Droiect involves increasinathe emissions unit's desian caoacitv or its 

## -. potentialtoemit that regulated NSR pollutant,and full utilization of the uniiwould result in a significant emissions increase, or a significant net emissions increase atthe 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 majorstationary 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 (11) Shall include fugitive emissions to the extent quantifiable and emissions associated with startups, shutdowns, and malfunctions; and (Ill) 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 utilizationdue to product demandgrowth; or, (IV) Inlieu of using the methodsetout in items (b)(38.(i)(l) through (Ill) of this paragraph, may elect-to use the emissions unit's potential to emit, intons peryear, as defined under part (b)5. of this paragraph.
39. Reserved.
40. "Preventionof Significant Deterioration Program" (PSD) program means a major source Dreconstruction oermit oroaram that has been ao~rovedbv the ~dminisirator and incorporated hto-the State lmplementatidn Plan (Sip) to implement the requirementsof 40 CFR 51.166. Any permit issued undersuch a program is a major NSR permit. \ 41. "Continuous emissions monitoring system (CEMS)" means all of the equipment that may be required to meetthe data acquisition and availability requirements of this section, to sample, condition (if applicable),analyze, and provide a record of emissionson a continuous basis.

June, 2011 (Revised)CONSTRUCTION AND OPERATING PERMITS (Rule 1200-03-09-.01. continued) CHAPTER 1200-03-09

"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 ~nd electrjc currents) and other information (for example, gas flow rate, 

### 0 or CO concentrations), and calculate and record the mass emissions rate (for example, Ibihr) on a continuous basis. '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, 

### 0 or CO concentrations), and to recordaverageoperational parametervalue@)on a continuous basis. "Continuous emissions rate monitoring system (CERMS)" means the total equipment required for the determination and recording of the pollutant mass emissions rate (interms of massper unitof time).
"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 precedingwhen the owner or operator begins actual construction of the project. The Technical Secretary shall allow the use of adifferent time period upona determination that it is more representativeof normalsource operation. (I) The average rate shall include fugitive emissions to the extent quantifiable, and emissions associated with startups, shutdowns, and malfunctions. (11) 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 consecutive24-month period. (Ill) 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 indeterminingthe magnitudeof a significant net emissions increase and the applicability of major new source review requirements if all of thefollowing conditionsare 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

June, 2011(Revised)CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) utilization rate. Qualifying examples include, but are not limitedto, thevoluntary 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 ina coatingoperation, C. a voluntaly improvement in the control efficiency of an air pollution control device or the voluntary addition of a control devicewhere one did not exist before, and 

### D. alternate production methods, raw materials, or products that result in lower emissions of one or more pollutants.
Ill. Use of alternate2-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 approvalwill be madea partof 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)(ll)of this paragraph. (ii) For an existing emissions unit (other than an electric utility steam generating unit), baseline actual emissions meansthe average rate, intons 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 10year 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, exceptthat the 10-year period shall not includeany 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. (11) 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.

June, 201 1 (Revised)CONSTRUCTIONAND OPERATINGPERMITS (Rule 1200-03-09-.01, continued) CHAPTER 1200-03-09

(Ill) 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 standardthat the Administrator proposedor promulgated under 40 CFR 63, the baseline actual emissions need only be adjusted if the State has taken credit for such emissions reductions inan attainment demonstrationor maintenanceplan. (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 indeterminingthe magnitudeof a significant netemissions increase and the applicability of major new source review requirementsif all of the following conditionsare met:
I. Construction of a new source or modification would become subject to major new source review if a single 2year baseline is usedfor 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 limitedto,thevoluntary useof:
A. a cleaner fuel than otherwise permitted in a fuel burning operation (e.g., natural gas insteadof coal in a multi-fuel boiler),


### B. a coating with a lower VOC content than otherwise permitted ina coatingoperation, 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. 

### Ill. Useof 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.

June, 2011(Revised)CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-0309-.01, continued) The burden for demonstrating that these conditions are met is upon the permit applicant. The demonstration and the Technical Secretary's approvalwill be madea part ofthe 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)(ll)and (Ill)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 constructionand operationof such unit shall equal zero; and thereafter, for all other purposes, shall equalthe 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 existingemissions units inaccordancewith 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. "Subjectto regulation" means, for any air pollutant, that the pollutantissubject to either a provision in the Clean Air Act, or a nationally-applicable regulation codified by the Administrator insubchapter C of Chapter IofTitle 40 of the Code of Federal Regulations, that requires actual control of the quantity of emissionsof 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. (ii) For purposes of subparts (iii) through (v) of this part, the term tpy COz equivalent emissions (C02e)shall represent an amount of GHGs emitted, and shall be computedas follows: (I) Multiplyingthe mass amount of emissions (tpy), for 

### each of the six greenhouse gases in the pollutant GHGs, by the gas's associated globalwarming potentialpublishedatTable A-I to subpattA of part 98 of Chapter 

### I of Title 40 of the Code of Federal Regulations 

## - Global Warming Potentials. (11) Sum the resultant value from item (ii)(l) of this part for each gas to compute atpy COze. (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 C02e, and shall be calculated assuming the pollutant GHGs is a

June, 201 1 (Revised)

### CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01. continued) regulated NSR pollutant, and "significant" is defined as 75,000 tpy C02e insteadof applyingthevalue insubpart (b)24(ii) of this paragraph. (iv) Beginning January 2, 

### 201 1,the pollutantGHGs issubjectto 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 havethe potential to emit 75,000 tpy C02e or more; or (11) 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 COzeor more;and, (v) Beginning July 1, 2011, in addition to the provisions in subpart (iv) of this part, the pollutant GHGs shall also besubjectto regulation: (I) At a new stationary sourcethat will emit or havethe potential to emit 100,000tpy C0,e; or 

### (11) At an existingstationary source that emitsor hasthe potential to emit 100,000 tpy C02e, when such stationary source undertakes a physical changeor change inthe methodof operation that will result inan emissionsincreaseof 75,000 tpy COzeor more. 47. 

### "Regulated NSR pollutant,"for purposesof this paragraph, meansthefollowing: (i) Any pollutant for which a national ambient air quality standard has been promulgatedand any pollutantidentified under this part as a constituent or precursor to such pollutant. Precursors identified by the Administrator for purposesof NSR are thefollowing: (I) Volatile organic compounds and nitrogen oxides are precursors to ozone in all attainmentand unclassifiableareas. (11) Sulfur dioxide is a precursor to PM2.5 in all attainment and unclassifiableareas. (Ill) Nitrogen oxides are liresumed to be precursors to PM25 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 s~gnificant contributorto that area's ambient PM, concentrations. (IV) Volatile organic compounds are presumed not to be precursors to PMz5 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 PMz5 concentrations. (ii) Any pollutant that is subject to any standard promulgated under section 111of the Federal CleanAir Act; (iii) Any Class 

### I or I1 substance subject to a standard promulgated under or established by titleVI ofthe FederalClean Air Act; or

June, 2011

### (Revised)CONSTRUCTIONAND OPERATING PERMITS (Rule 1200-03-09-.01. continued) CHAPTER 1200-03-09

(iv) Any pollutant that otherwise is subject to regulation under the Federal Clean Air Act as defined inpart (b)46of this paragraph. (v) Notwithstandingsubparts (b)47(i) through (iv) of this paragraph, the term "regulated NSR pollutant" shall not include any or all hazardous air pollutants either listed insection 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 hazardousair 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, PMz5emissions, and PMlo 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. PMz5. and PMlo in PSD permits. Compliance with emissions limitationsfor PM, PMz.~, and PMlo issued prior to this date shall not be based on condensable particulatematter unless required by the terms and conditions of the permit or the applicable implementationplan. Applicability determinations made prior to this date without accountingfor condensable particulate matter shall not be considered in violation of this paragraph unless the applicable implementation plan required condensable particulate matter to be included. "Reviewing authority" means the State air pollution control agency, localagency, other State agency, Indiantribe, 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 under40 CFR 52.21. "Project" means a physical change in, or change in method of operation of, an existing major stationarysource. 'Lowest achievable emission rate (LAER)" is as defined insub-part (5)(b)l.(xviii) of this rule.
Resewed 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 determiningthe electrical energy output capacityofthe affected facility.
"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 isachievablefor such source or modification through application of production processesor available methods, systems, and techniques, including fuel cleaning or treatment or innovative fuel

June, 2011 (Revised)CONSTRUCTIONAND OPERATING PERMITS CHAPTER 120003-09 (Rule 1200-03-09-.01, continued) 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 satisfythe 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 existingfacility to such an extentthat: (i) The fixed capital cost of the new components exceeds 50 percent of the fixed capital cost thatwould be requiredto construct a comparable entirely new facility, and (ii) It is technologically and economically feasible to meet the applicable standards setforth inthis chapter. (iii) This part applies only in this chapter 1200-03-09 unless specified otherwise.


### 55. "Clean coaltechnology" 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.
56. "Clean coal technology demonstrat~on project" means a project using funds appropriated under the head~ng "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 appropriationsfor the Environmental ProtectionAgency. The Federalcontribution 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 demonstrabon projectthat is operated for a periodof 5 years or less, and which complieswith the State implementation plan for the State inwhich the project is located and other requirements necessary to attain and maintain the nationalambient air qualitystandards during and afterthe project isterminated.


### 58. "Re-powering" means replacementof an existingcoal-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

June, 201 1 (Revised) 25CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) useas of November 15, 1990. Re-powering shall also include any oil andlor gasfired unit that has been awarded clean coal technology demonstration funding as of January 1, 1991, by the US. Department of Energy. The Technical Secretary shall give expedited consideration to pernit applications for any source that satisfies the requirements of this subsection and is granted an extension under section409 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)l. of this paragraph) or any project at an existing major stationary source in an area designated as attainment or unclassifiableunder sections 107(d)(l)(A)(ii)or (iii) of the Federal Clean Air Act.
2. The requirementsof subparagraphs

### (j). (k). (I), and (n); parts (e)l. 

### 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, exceptas this ruleotherwise provides. 

### 3. No new major stationary source or major modificationto which the requirements of subparagraphs

### (j), (k), (I), and (n); parts(e)l. 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)

(ii)

(iii) 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 significantemissions increase. Ifthe project causesa significant emissions increase,then the project is a major modification only if it also results in a significantnet emissions increase.
The procedure for calculating (before beginning actual construction) whether a significant emissions increase (ie., 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 procedurefor calculating (before beginning actual construction) whether a significant net emissions increasewill 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 preconst~ction projections, a major modification results if the project causes a significant emissions increase and a significant net emissions increase. Actual-to-projected-actual applicability test for projects that only involve existing emissions units. A significant emissions increase of a regulated NSR pollutantiS projected to occur ifthe sum of the difference betweenthe projected actualemissions (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).

June, 201 1 (Revised)CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) (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 potentialto 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 insub-part (b)45.(iii)of this paragraph)of these units before the project equals or exceeds the significant amount for that pollutant(asdefined in part (b)24. of this paragraph). (v) Resewed. (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. Resewed. (d) Majorstationary sources and major modificationsare exemptfrom certain provisions of this paragraph inaccordancewith the following:
1. Majorstationary sources or major modificationsas defined inthis paragraphshall not be subject to the requirementsof this paragraph (except as provided in part (4)(a)7. of this paragraph) if: (i) The source or modificationwould 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 listed under subpart (b)l.(i), or any other stationary source category which, as of the (effective date of this rule) is being regulated underChapters 1200-03-11and 1200-03-16. (ii) The source or modification was subject to the new construction rules and regulationsas ineffect before June 3, 1981, and the owner or operator: (I) Obtained all final Federal, State, and local preconstruction approvals or permitsnecessary beforeJune 3,1981. (11) Commenced construction within 18 months of receipt of all necessary Federal, State, and local preconstruction approvals or permits; and (Ill) 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.

June, 2011 (Revised)CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-0349 (Rule 1200-03-09-.01. continued) (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) Submitteda completed application before June 3, 1981 (11) Commenced construction within 18 months of receipt of all necessary Federal, State, and local preconstruction approvals or permits; and (Ill) 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 moditicationwas 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. (11) Commenced construction within 18 months of receipt of all necessary Federal, State, and local preconstruction approvals or permits;and (Ill) 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 modificationas 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 meetthe PMlo requirementseffectiveon June2, 1990ifthe owneror operator: (i) Submitted a completed application (as determined by the Technical Secretary) beforeJune 2, 1990. (ii) Commenced construction within 18 months of receipt of all necessary Federal, State, and local preconstruction approvalsor permits; and (iii) Did not discontinue construction for a period of 18 months or more and completed constructionwithin 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 subjectto the requirementsof this paragraphwith 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)l., (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 pollutantfrom a new source, or the net emissions increase of that pollutant from a modification, would be temporary and impact no Class 

### Iarea and no area where an applicable incrementis known to beviolated.

June, 2011 (Revised) 28

### CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, contmued)
5. Source impactand air quality analysis as required in parts (e)l.,(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 controltechnologywould be less than 50 tons peryear. 6. Air quality analysis as required inthis paragraph may be exempted with respect to 

### reconstruction monitoringfor a particular pollutant by the Technical Secretary

The emissions increase of the pollutant from a new stationaly source or the net emissions increase of the pollutant from a modification would cause, inany area, air quality impacts less than the following amounts: (I) Carbon monoxide

## - 575 uglm3,8-hour average; (11) Nitrogendioxide

## - 14uglm3, annual average: (Ill) Particulatematter:
10ugh3 ofTSP, 24-hour average 10uglm3of PMw, 24-hour average; (IV) Sulfur dioxide

## - 13 uglm3,24-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 compoundsor nitrogen oxides subjectto PSDwould be required to perform an ambient impact analysis, including the gatheringof ambientair qualitydata. (VI) Lead (elemental)

## - 0.1 uglm3,3-month average; (VII) Fluorides

## -0.25 uglm3, 24-hour average; (VIII) Total reduced sulfur

# - 10uglm3, 1-hour average; (IX) Reducedsulfurcompounds

## - 10uglm3, 1-hour average; 

### (X) Hydrogensulfide--0.2 !.~~lm~, 1-hour average; or The pollutants are not listed insub-parl (d)6.(i); or Representative existing ambient air quality data, consistent with the requirements of the Ambient Monitoring Guideline for Prevention of Significant Deterioration (PSD), EPA-45014-87-007, are available for any pollutant as emitted by a majorstationalysource, or major modification; or 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

June, 201 1 (Revised)

### CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) (I) Specify me time over which the temporary emissions increase of sulfur dioxide, particulate matter, or nitrogen oxides would occur. Such time is not to exceedtwoyears induration. (11) Specify that the time period for excluding certain contributions in accordance with item 7.(iii)(l) is not renewable. (Ill) Allow no emission increase from a stationary source whichwould: 

### I. Impact a Class 

### I area or an area where an applicable incrementis knownto be violated; or II. Cause or contribute to the violation of a national ambient air qualitystandard; (IV) Require limitations to be in effect at the end of the time period specified in accordance with item 7.(iii)(l) which would ensure that the emissions levels from stationary sources affected by the plan revisionwould not exceed those levels occurringfrom such sources beforethe plan revisionwas approved.
9. With the approval of the Technical Secretary, the requirements for air quality monitoring of PMlo 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 permiton or before June 1, 1988 and the TechnicalSecretary determines that the application as submitted before that date was complete, exceptwith respect to the particulate matter monitoring requirementsinpart (e)7. of this paragraph.
10. Preapplication air quality analysis for ozone as required in part (e)7. of this paragraphwill not be necessaryifthe source owneror operator chooses to meet the lowest achievable emission rate 

### (LAER) in lieu of meetingthe requirements to apply best available control technology (BACT) for emissions of volatile organic compounds or nitrogen oxides and is required to conduct post-construction monitoringfor ozone. (e) The owner or operatorof the proposed major stationary source or majormodification:
1. Shall demonstrate by performing source impact analysis that allowable emission increases from the proposed source or modification, in conjunctionwith all other applicable emissions increases or reduction (including secondary emissions) would not causeor contribute to air pollution inviolation of: (i) Any Tennessee ambient air qualitystandard inthe source impact area (ii) Any applicable maximum allowable increase over the baseline concentration inany 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

June, 2011

### (Revised)

### CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 120003-09-.01, continued) specifications and drawings needed for the review showing its design and plant layout. (11) A detailed proposed schedule for construction of the source or modification. (Ill) A detailed description as to what system of continuous emission reduct~onis 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 bythis 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 recreationalvalue may be excludedfrom 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. 

### Ill. The Technical Secretary may require monitoringof 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 provideinformationon: (I) The air quality impact of the source or modification, including meteorological and topographicaldata. (11) 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 baselinedate inthe area the source or modification would affect. Such data in the possession of the Division shall be madeavailableto the owner or operator. 

### 3. Shall, after construction of the stationary source or modification, conduct such postconstruction monitoringas theTechnical Secretarydetermines is necessary to determine the effectemissions from the stationary source or modification may have, or are having on air quality inany 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 applicableemission limitations of this Division 1200-03.
6. 

### Shall pay the cost of all publications required underthis paragraph.

June, 201 1 (Revised) 32CONSTRUCTION AND OPERATING PERMITS (Rule 1200-03-09-.01,continued) CHAPTER 1200-03-09



### 7. Shall performthe preapplicationair quality analysisas outlined below: (i) Any applicationfor a construction permit pursuant to the regulationsof 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) Forthe source, each pollutant that itwould have Ule potential to emit ina significantamount; (11) 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 regul$ons (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 exemptedinsubparagraph 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 precedingreceipt 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 leastthatshorter period. (iv) (Resewed) (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 pollutantwould affect. (vi) The requirements for air quality monitoring of PMl0 insubparts (ii) and (iii) of this part shall apply to a particularsource or modification ifthe owner or 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 periodfrom February 

### 1, 1988 to the date the application becomes otherwise complete in accordancewith 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 accomplishedwith monitoringdata over a shorter period (not to be less than 4 months), the data required in (ithrough v) shall have been gathered overthatshorter period. (vii) For any application that becomes complete, except as to the requirements of subparts (ii) and (iii) of this part pertaining to PMlo, 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 periodfrom August 1, 1988to the date the application becomes othe~lise complete, except that if the Technical Secretary determines that a complete and adequate analysis can be accomplishedwith monitoring data over a shorter period (not

### to be

June, 201 1 (Revised) 33

### CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) 

### PM-Io-, 24-hour maximum.



## ....................................... 60 Sulfurdioxide: Annual arithmetic mean. 

## ........................................ 40 

### 24-hourmaximum..



### .......................................... 182 3-hourmaximum



## .............................................. 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 peryear 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 WildernessArea, and the CohuttaWildernessArea.
2. Class Ill

### Areas - 

### None
3. Class IIAreas - 

### Remainderofthe state Areas in surrounding states are classified as specified in the EPA approved implementationplanfor eachadjoiningstate. 

### (h) Restrictionson 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) Internationalparks, (ii) Nationalwilderness areas which exceed 5,000 acres insize, (iii) National memorial parkswhich exceed 5,000 acres insize, and (iv) National parkswhich exceed 6,000acres insize
2. Areas which were redesignated as Class 

### I before August 7, 1977, shall remain Class I, but may be redesignatedas providedinthis section.
3. Any other area, unless otherwise specified in the legislation creating such as area, is initially designated Class 

### II, but may be redesignatedas provided inthis section.
4. Thefollowing areas may be redesignated onlyas 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

June, 201 1 (Revised)CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 120003-09-.01, continued) national recreational area, a national wild and scenic river, a national wildlife refuge, a nationallakeshoreor seashore; and (ii) A national park or national wilderness area established after August 7. 1977,which exceeds 10,000 acres insize.
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 120003-03, Table 1). or the concentration permitted under the Tennessee primary ambient air sualih, standard (Cha~ler 1200-03-03.Table 1). whichever concentration is

. 

### . . . lowest for the pollutant for a periodof exposure 2. Except as permitted by Section 123 of the Clean Air Act Amendments of 1977, dispersiontechniques which exceed good engineering practice, and which were implemented after December 31, 1970,will not be considered when determining the emission limitationsrequiredfor control of any pollutant. 

### (j) ControlTechnology 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 applicableemission standard and standardof performance under 40 CFR parts60 and 61.
2. A new major stationary source shall apply best available control technology for each regulated NSR pollutant that itwould havethe potential to emit insignificant 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 inthe pollutantwould occur as a result of a physical changeor change inthe method of operation inthe unit.
4. For phased construction projects, the determination of best available control technology shall be reviewed and modified as appropriate at the latest reasonable time which occursno laterthan 18 months prior to commencementof constructionof 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 previousdetermination of best availablecontrol technology for the source. (k) Air Quality Models.
All estimates of ambient concentrations required under this paragraph shall be based onthe applicable air quality models, data bases, and other requirementsspecified in

### 40 CFR Part 51 Appendix W, which is incorporated by reference. Where an air quality impact modelspecified in40 CFR Part 51 Appendix

### W is inappropriate, the model may be modified or another model substituted bythe Technical Secretaryafter consultation withthe EPA Administrator. The use of a modified or substituted model must be subject

June, 2011 (Revised)CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) to notice and opportunity for public comment under procedures developed in accordance with subparagraph(I) of this paragraph. (I) Public Participation
1. Within 30 days after receipt of an applicationto construct, or any addition to such application, the Technical Secretary shall advisethe 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 laterthan 

### 6 months afler receipt of a complete application. If there is a need for a longer period of time for review, itshall be agreed upon by mutual consent. In no case may this review period be longer than 1 year. The review process involves performingthe following actions: (i) Make a preliminary determination whether construction should be approved, approvedwith 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 UJnSt~cted a copy of all materials the applicant submitted, a copy of the preliminary determination, and a copy or summary of other materials, if any, consideredin making the preliminarydetermination. (iii) Notifythe public, by advertisement ina newspaper of general circulation in each air quality control region inwhich 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 aswritten publiccomment. (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 modificat~on would be located, any comprehensive regional land use planning agency, the EPA Administrator, and any State or Federal Land Managerwhose lands may beaffected by emissionsfrom 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, alternativesto it, the controltechnology 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 makinga final decision on the approvabilityof the application. No later than 10 days afler 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 apphcant's response in making a final decision. The Technical Secretary shall make all comments available for

June, 2011 (Revised) 37

### CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) public inspection 

### in the same locations where the Technical Secretary madeavailable preconstructioninformation relatingtothe proposedsource or modification. (vii) Make a final determination whether construction should be approved, approved with conditions,or disapproved pursuantto 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 madeavailable 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 dateof issuanceof 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 predictsa violation of the increment or the ambient air quality standards except inaccordancewith the following:


### 1. All newor modifiedfacilities shall utilizegood engineering practiceas 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 purposeof determining the degree of emission limitation required for the control of any pollutantfor which there is an ambient air quality standard establishedinChapter 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)l. and 2. are not adequate to protect the incrementor the ambient air quality standards, the source shallobtain 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 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 modificationwould, at a minimum, exceedthe following significance levelsat 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 PMl0 1 5 Sulfur

Dioxide 1 5 25 Carbon

June, 2011 (Revised)CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) Monoxide 500 2000 Nitrogen

Dioxide 1 (Levels are in unitsof micrograms percubic meter.)
5. This rule does not exempt the source from meeting the requirements of paragraph 1200-03-09-.01(5). (n) Sources ImpactingClass I Areas -Additional Requirements
1. Notice to FederalLand Managers andthe 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 Managera copy of each permit application relating to a major stationary source or major modification which would affect a Class Iarea. This application shall include a copy of all information relevant to the permitapplication 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 permitto construct. Such notificationshall include an analysisof the proposed source's anticipated impacts on visibility in the Federal Class 

### I area. The Technical Secretarv shall also orovide the EPA Administrator, the Federal Land Manager and suci Federal offihals with a copy of the preliminarydetermination and shall make available to them any materials used in makingthat determinationpromptly 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 notificationof any such permitapplication.
2. Denial

## - Impacton Air Quality RelatedValues
The Federal Land Manager of any such lands may demonstrateto 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 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 

### Iarea. If the Technical Secretary concurs with such demonstration, then he shall not issue the permit. 

### 3. Class 

### IVariances The owner or operatorof a proposedsource or modification may demonstrate to the Federal Land Manager that the emissions from such source or modification would have noadverse impactonthe air quality relatedvalues of any such lands (including visibility), notwithstandmg that the change in air quality resultingfrom 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

June, 2011(Revised) 39CONSTRUCTION AND OPERATINGPERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) 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 concentrationfor such pollutants:

Pollutant Maximum allowable Increase -3 PM-lo-: PM-lo-, Annual arithmetic mean.


### .............................. 17 PM-lo-, 24 hr. maximum..



### ............................... 30 Sulfurdioxide: Annual arithmetic mean. 

## .................................... .20 24-hr.maximum



## ............................................91 3-hr.maximum



## ........................................... 325 Nitrogendioxide: 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 onvisibility in any Federal Class 

### Iarea. 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 inthe Federal Class Iarea, the Technical Secretary must, inthe notice of public hearingon the permit application, either explain his decision or give notice as to where the explanation can beobtained. (0) InnovativeControlTechnology
1. The owner or operator of a proposed major stationary source or major modification may request that the Technical Secretary approve a system of innovativecontroltechnology.
2. The Technical Secretary, with the consent of the Govemor(s) of the other affected State(s), may determine that the source or modification may employ a system of innovative control technology if:
The proposed control system would not cause or contribute to an unreasonable risk to public health, welfare, or safety in its operation or function. 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)(i)l. 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.

June, 2011 (Revised)CONSTRUCTIONAND OPERATING PERMITS (Rule 1200-03-09-.01, continued) CHAPTER 1200-03-09

(iii) The source or modification would meet the requirements of parts (e)l. and (j)l. 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 bythe Technical Secretary. (iv) The sourceor modification shall not: 

### (I) Cause or contributeto a violation of an applicable ambient air quality standard; or (11) Have an adverse impactonany Class I area; 01 (Ill) 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. 7he Technical Secretary shall withdraw any approval to employ a system of innovativecontroltechnology made under this subparagraph, if: (i) The proposed system fails by the specified date to achieve the required continuousemissions 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 meetthe required level of continuous emission reduction within the specified time period or the approval is withdrawn in accordance with part (0)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. (p) Resewed. (q) Resewed. (r) Reserved. (8) 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 meetsthe requirements in parts (s)l. through 

### 15. of this paragraph. The term "PAL" shall mean "actuals PAL" throughout sub-paragraph (s) of this paragraph. 4

June, 2011(Revised)CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-0349-.01, continued) (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)l. through 15. of this paragraph, and complies with the PALpermit: (I) Is not a major modification for the PAL pollutant; (11) Does not haveto be approvedthrough the major NSR program; and (Ill) 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)l.(ii)(lll) of this paragraph, a major stationary source shall continue to comply with all applicable Federal or State requirements, emission limitations, and work practice requirements thatwere established priortothe effective date of the PAL.
2. Definitions. When a term is not defined in these sub-parts, it shall have the meaning given insubparagraph(b) of this ruleor inthe Federal CleanAir Act. (i) "Actuals PAL" for a major stationary source means a PAL based on the baselineactual 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 emitor havethe potentialto emitthe PALpollutant. (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)(l) and (11) 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 onthe emissions unit's potentialto emit. (11) 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 mattef should be added afier "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 part (b)24. of this paragraphor in the Federal CleanAir Act, whichever is lower. (iv) "Major emissions unit" means: (I) Any emissions unit that emits or has the potential to emit 100 tons peryear or moreof the PAL pollutant inan attainmentarea; or (11) 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

June, 2011 (Revised)

### CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) 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 peryear. (v) "Plantwide applicability limitation (PAL)" means an emission limitation expressed intons peryear, for a pollutantat a major stationarysource, that is enforceable as a practical matter and established source-wide in accordancewith parts (s)l. 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 beginsto emitthe PAL pollutant. (vii) "PAL effective period" means the period beginningwith the PAL effective date and ending 10 years later. (viii) "PAL major modification" means, nomithstanding 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 methodof 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 bythe Technical Secretary that establishes a PAL for a major stationarysource. (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 definedinsub-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 following information in sub-parts (s)3.(i) through (iii) of this paragraph to the TechnicalSecretary for approval. (i) A list of all emissions units atthe source designatedas small, significantor major based ontheir potential to emit. Inaddition, the owner or operator of the source shall indicate which, if any, Federal or State applicable requirements, emission limitations, orwork 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 useto convertthe monitoring system data to monthly



### ' June, 2011 (Revised)

### CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) emissionsand annual emissions based on a 12-monthrolling total for each month as required by sub-part (s)13.(i)of this paragraph.
4. General requirements for establishing PALs. (i) The TechnicalSecretary may establisha PALat a major stationary source, provided that at a minimum, the requirements in items (s)4.(i)(l) through (VII)of this paragraphare met. (I) The PAL shall impose an annual emission limitation intons peryear, 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 emissionsfrom the PAL effective date for each emissions unit under the PAL is less thanthe PAL. (11) The PAL shall be established in a PAL permit that meets the public participation requirementsin part (s)5. of this paragraph. (Ill) The PALpermit shall contain all the requirementsof 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 pollutantatthe majorstationary source. (V) Each PALshall regulateemissionsof only one pollutant. (VI) Each PALshall have a PALeffective periodof 10years. (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. (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 07 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 (I) 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

June, 2011 (Revised)CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) comment. The Technical Secretary must address all material comments before takingfinal actiononthe 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 emissionsfor all existing emissions units. Emissionsassociatedwith 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@)(in tonslyr) inthe PAL permit to become effective on the future compliance date@)of any applicable Federal or State regulatory requirement(s)that the TechnicalSecretary isaware 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 NOxto 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 reducedby halfofthe original baseline emissionsof such unit(s). (ii) For newly constructed units (which do not include modifications to existing units)onwhich actual construction began afler 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 ofthe units.
7. Contents of the PAL permit. The PAL permit shall contain, at a minimum, the information insub-parts (s)7.(i) through (x)ofthis paragraph. (i) The PAL pollutant and the applicable source-wide emission limitation in tons peryear. (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 paragraph before the end of the PAL effective period, then the PAL shall not expire at the end of the PAL effedive period. It shall remain in effect until a revised PAL permitis issued bythe TechnicalSecretary. (iv) A requirement that emission calculations for compliance purposes include emissionsfrom startups, shutdowns and malfunctions. (v) A requirementthat, 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 monitorina svstem data to monthlv emissions and annualemissions based on a l%m&th rolling total for each monthas requiredbysub-part (s)l3.(i) ofthis paragraph.

June, 2011 (Revised) 45CONSTRUCTION AND OPERATING PERMITS (Rule 1200-03-09-.01, continued) CHAPTER 1200-03-09

(vii) A requirement that the major stationary source owner or operator monitor ail 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 retainedinan electronic format. (ix) A requirement to submit the reports required under part (s)14. of this paragraphby the required deadlines. 

### (x) Any other requirements that the Technical Secretary deems necessary to implement and enforcethe PAL.
8. PALeffective period and reopeningof the PAL permit. (i) PALeffective period.The Technical Secretary shallspecify a PAL effective period of 10years. (ii) Reopeningofthe PAL permit. (I) During the PAL effective period, the Technical Secretary shall reopenthe PALpermitto:
I Correct

### typographical/calculation errors made in setting the PAL or reflect a more accurate determination of emissions used to establish the PAL;
I1 Reducethe PAL if the owner or operator of the major stationary source creates creditable emissions reductions for use as offsets undersub-part (5)(b)Z.(v) of this rule; and 

### Ill Revise the PAL to reflect an increase in the PAL as provided under part (s)l1. of this paragraph. (11)

. 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 effectivedate; 

### II Reduce the PAL consistent with any other requirement, that is enforceable as a practical matter, and that the State may impose onthe major stationary source underthe plan; and
Ill 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 Iarea by a Federal Land Manager and for which information is availableto the general public. (Ill) Except for the permit reopening in sub-item (s)8.(ii)(l)l of this paragraph for the correction of typographical/calculation errors that do not increasethe PAL level, all reopeningsshall be carried out in

June, 2011 (Revised)CONSTRUCTIONAND OPERATING PERMITS CHAPTER 120003-09 (Rule 1200-0309-.01, continued) accordancewith the public participation requirementsof part (95. 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 permitestablished according to the proceduresin items (s)9.(i)(l) and (11) of this paragraph. (I) Within the time frame specified for PAL renewals insub-part (s)lO.(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 anapplicable requirement that became effective during the PAL effective period, as required under sub-part (s)lO.(v) of this paragraph, such distribution shall be made as if the PAL had been adjusted. (11) The Technical Secretary shall decide whether and how the PAL allowable emissions will be distributed and issue a revised permit incorporatingallowable limitsfor each emissions unit, or each group of emissions units, as the Technical Secretary determines is appropriate. (ii) Each emissions unit@)shall comply with the allowable emission limitation on a 12-month rolling basis. The Technical Secretary may approvethe 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)(ll) of this paragraph, the source shall continueto wmply with a source-wide, multi-unit emissions cap equivalent to the levelofthe PAL emission limitat~on. (iv) Any physical change or change in the method of operation at the major stationary sourcewill besubject to major NSR requirementsif 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 limitationsthat had been established pursuant to part (a)6. of this paragraph, but were eliminated by the PAL in accordancewith the provisions in item (s)l.(ii)(lll) of this paragraph.

June, 201 1 (Revised)

### CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) 10. Renewalof a PAL. (i) The Technical Secretary shall follow the proceduresspecified 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. Duringsuch public review, any person may propose a PAL level for the source for considerationbytheTechnical Secretary. (ii) Application deadline. A major stationary source owner or operator shall submit a timely applicationtothe Technical Secretaryto request renewalof a PAL. A timely application is one that issubmitted at least 6 months prior to, but not earlier than 18 monthsfrom, the date of permit expiration. This deadline for application submittal is to ensurethat the permitwill not expire before the permit is renewed. Ifthe owner or operatorof a majorstationary 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 PALisissued. (iii) Application requirements. The application to renew a PAL permit shall contain the information required in items (s)lO.(iii)(l) through (IV) of this paragraph. (I) The information required in sub-parts (s)3.(i) through (iii) of this paragraph. (11) A proposed PAL level. (Ill) The sum of the potential to emit of all emissions units underthe PAL (with supporting documentation). (IV) Any other information the owner or operator wishes the Technical Secretary to consider in determining the appropriate level for renewingthe PAL. (iv) PAL adjustment. In determining whether and how to adjust the PAL, the TechnicalSecretary shall considerthe options outlined in items (s)lO.(iv)(l) and (11) of this paragraph. However, in no case may any such adjustment fail to complywith item (s)lO.(iv)(lll) of this paragraph. (I) If the emissions level calculated inaccordancewith part (s)6. of this paragraph isequalto or greaterthan 80 percentof the PAL level, the Technical Secretary may renew the PAL at the same level without considering the factors set forth in item (s)lO.(iv)(ll) of this paragraph:or (11) The Technical Secretary may set the PAL at a level that it determinesto be more representativeof 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 identifiedby the Technical Secretary in itswritten rationale. (Ill) Notwithstanding items (s)lO.(iv)(l) and (11) of this paragraph:

June, 2011

### (Revised)

### CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) 

### 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 potentialto 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)ll. of this paragraph (increasinga PAL). (v) If the compliance date for a State or Federal requirement that applies to the PAL source occurs duringthe PALeffectiveperiod, and iftheTechnical 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 PALeffectiveperiod. (i) The Technical Secretarymay increasea PAL emission limitationonly ifthe major stationary source complies with the provisions in items (s)ll.(i)(l) through (IV) of this paragraph. 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 identifythe emissions unit(s) contributing to the increase in emissions so as to cause the major stationarysource's emissionsto equalor exceed its PAL. 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, plusthe sum of the baseline actual emissions of the significant and major emissions units assuming apphcation 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 LAERwith which that emissions unit must currently comply. The owner or operator obtains a major NSR permitfor all emissions unit(s) identified in item (s)ll.(i)(l) of this paragraph, regardless of the magnitudeof the emissions increase resultingfrom them (that is, no significant levels apply). These emissions unit(?.) 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. 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.

June. 201 1 (Revised)

### CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) (ii) The Technical Secretary shall calculate the new PAL as the sum of the allowable emissionsfor each modifiedor 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)ll.(i)(ll) of this paragraph), plus the sum of the baselineactual emissionsof the small emissions units. (iii) The PALpermitshall be revised to reflect the increased PAL level pursuant to the public notice requirementsof part (s)5. of this paragraph.
12. Monitoringrequirements for PALS (i) General requirements. (I) Each PAL permit must contain enforceable requirements for the monitoring system that accurately determines plantwideemissions 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 inajudicial proceeding to enforce the PAL permit. (11) The PAL monitoring system must employ one or more of the four general monitoring approaches meeting the minimum requirements set forth in items (s)l2.(ii)(l) through (IV) of this paragraph and must beapproved by theTechnical Secretary. (Ill) Notwithstanding item (s)12.(i)(ll) of this paragraph, you may also employ an alternative monitoring approach that meets item (s)12.(i)(l)of this paragraphif approved bytheTechnical Secretary. (IV) Failure to use a monitoring system that meets the requirements of this paragraph rendersthe 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)lZ.(iii) through (ix)of this paragraph: (I) Mass balance calculationsfor activities using coatingsor solvents; (11) CEMS; (Ill) CPMS or PEMS; and (IV) Emissionfactors. (iii) Mass balance calculations. An owner or operator using mass balance calculations to monitor PAL pollutant emissions from activities using coating or solvents shall meetthe following requirements: (I) Provide a demonstratedmeans of validating the published content of the PAL pollutant that iscontained in or created byall materials used inor atthe emissions unit;

June, 201

### 1(Revised)

### CONSTRUCTION AND OPERATINGPERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) (viii) Notwithstandingthe requirements insub-parts (s)lZ.(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, theTechnical 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 (11) 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 issuanceof the PAL.
13. Recordkeepingrequirements. (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 rollingtotal emissions, for 

### 5years 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 '(11) Each annual certification of compliance pursuant to title V and the data relied on incertifyingthe compliance.
14. Reporting and notification requirements. The owner or operator shall submit semiannual monitoring reports and prompt deviation reports to the Technical Secretary inaccordancewith the applicabletitle V operating permit program.The reports shall meet the requirements in sub-parts (s)14.(i) through (iii) of this paragraph. (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)(l) through (VII) of this paragraph. (I) The identificationof owner and operator andthe permit number. (11) Total annual emissions (tonslyear) 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.

June, 2011 (Revised)

### CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) (Ill) All data relied upon, including, but not limited to, any Quality Assurance or Quality Control data, in calculating the monthly and annual PAL pollutantemissions. (IV) A list of any emissions units modified or added to the major stationary source duringthe 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 calibrationchecks), 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 providedby sub-part(s)lZ.(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 periodswhere no monitoring is available. A report submitted pursuant to item .02(11)(e)1.(iii)(lll) of this chapter shall satisfy this reporting requirement. The deviation reports shall be submitted within the time limits prescribed by item .02(11)(e)l.(iii)(lll) of this chapter. The reports shall containthe following information: (I) The identificationof owner and operator and the permit number; (11) The PAL requirement that experienced the deviation or that was exceeded; (Ill) Emissions resulting from the deviationor 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 three months aftercompletionof 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)l. through 15. of this paragraph after the Administrator has approved regulations incorporating these requirements intothe State Implementation Plan (SIP).

June, 2011

### (Revised)CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01,continued) (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)l. 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 invahd, shall not be affected thereby. (5) Growth Policy (a) Attainment and Unclassified Areas
The Technical Secretaryshall not grant a permitfor the construction or modification of any air contaminant source in an attainmentor unclassifiedarea if such construction or modification will interfere with the maintenance of an air quality standard or PSD increment where a~~licable. or will violate anv ~rovisions ofthe TennesseeAir Qualitv Act, or section 165'(a)(3) of the CleanAir ~ct.*~mendments of 1990. (b) Nonattainment Areas
1. Definitions as used in this subparagraph are not alphabetized. All terms not defined hereinshall havethe meaning giventhem inChapter 1200-3-2. (i) "Stationary source" means any building, structure, facility, or installation which emitsor may emit a regulated NSR pollutant. (ii) 'Building, structure, facility, or installation" means all of the air contaminant-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). Air contaminantemitting activities shall be considered as part of the same industrialgrouping ifthey belongto 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 (US. Government Printing Office stock numbers 4101-0065 and 003-005-001 76-0. respectively)). (iii) "Potentialto 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 betreated as part of its design only if the limitation or the effect it would have on emissions is "legally enforceable." Secondary emissions do not count in determining the "potentialto emit" of a stationarysource. (iv) "Major stationaly 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 CleanAir Act, accordingto sub-items IthroughVI of this item.

June, 201 1 (Revised)CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued)
1. 50tons per year of either volatile organic compounds or nitrogen oxides inany seriousozone non-attainmentarea. 

### 11. 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-attainmentarea. 111. 25tons per year of either volatile organic compounds or nitrogen oxides inany severe ozone non-attainmentarea. IV. 10tons peryear of either volatile organic compoundsor nitrogen oxides inany extreme ozone non-attainmentarea. V. 50 tons per year of carbon monoxide in any serious nonattainment area for carbon monoxide, where stationary sources contributesignificantlyto carbon monoxide levels inthe area (as determined under rules issued by the Administrator of the US. EPA).
VI. 

### 70 tons per year of PM-10 in any serious non-attainment area for PM-10; or (11) Any physical change that would occur at a stationary source not qualifying under item (iv)(l) as a major stationary source, if the change would constitute a major stationary source by itself. 

### (Ill) A major stationary source that is major for volatile organic compoundsor nitrogen oxides shall beconsidered major for ozone. (IV) The fugitiveemissionsof a stationary source shall not be included in determining for any of the purposesof this Item, whether it is a major stationary source, unless the source belongs to one of the following categories of stationarysources: I Coalcleaning plants (with thermal dryers); 

### II Kraflpulp mills;
111 Portlandcement plants;
IV Primaryzinc smelters;
V Ironand steel mills;
VI Primaryaluminum ore reduction plants;
VII Primarycopper smelters;
Vlll Municipal incinerators (or combination thereof) capable of charging morethan 250tons of refuse perday;
IX Hydrofluoric, sulfuric, or nitricacid plants;
X Petroleum refineries;

June, 2011 (Revised)I j i



### CONSTRUCTIONAND OPERATING PERMITS (Rule 1200-03-09-.01, continued) XI
XII Xlll XIV 

### XV
XVI XVll Xlll XIX 

### XX XXI

Xxl

### l Lime plants; Phosphate rock processingplants; Coke oven batteries; Sulfur recoveryplants; carbon black plants (furnace process); Primary lead smelters; Fuel conversion plants; Sintering plants; Secondary metal production plants; Chemical process plants; CHAPTER 1200-03-09

Fossil-fuel boilers (or combination thereof) totaling more than 250 million British thermal units per hour heat input; Petroleum storage and transfer units with a total storage capacity exceeding300,000 barrels; Taconite ore processing plants; Glass fiber processingplants; Charcoal productionplants; Fossil fuel-fired steam electric plants of more than 250 million Britishthermal units per hour heat input; and Any other stationary source categorywhich, as ofAugust 

### 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: (I) "Major modification" means any physical change in or change in the methodof operationof a major stationary source thatwould result in:
I 

### A significant emissions increase of a regulated NSR pollutant (asdefined insub-parl l.(xlix) of this subparagraph).
II. 

### A significant net emissions increase of that pollutant from the major stationarysource. (11) Any significantemissions increase (as defined insub-parl l.(xxxix) of this subparagraph) from any emissions units or net emissions increase (as defined in sub-parl l(vi) of this subparagraph) at a

June, 201

### 1(Revised)CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-0309-.01, continued) major stationary source that is significant for volatile organic compoundsand/or nitrogen oxides shall beconsidered significant for ozone. (Ill) 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 pursuantto thefederal power act; 

### Ill Use of an alternativefuel 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 isgenerated 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, pursuantto 

### 40 CFR Part 52.21 (July 1, 1993), or under regulations approved pursuantto 40 CFR Part 51 Subpart Ior 51.166 (July 1,1993), or the source is approved to use under any permit issued pursuanttothis paragraph;
VI An increase inthe 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 

### Ior40 CFR Part51.166 (July 1,1993). VII Any change inownership at a stationary source. Vlll Reserved,
IX. The installation, operation, cessation, or removal of a temporary clean coal technology demonstration project, provided that the projectcomplieswith:
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 itisterminated.

June, 201 1 (Revised)

### CONSTRUCTIONAND OPERATING PERMITS (Rule 1200-03-09-.01, continued) (IV) CHAPTER 1200-03-09

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 lO.(ii)(VIII) of this subparagraph shallapply. Any physicalchange in,or change inthe method of operation of, a major stationary source of volatile organic compounds that results in any increase in emissions of volatile organic compoundsfrom 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 CleanAir Act. Any physical change in,or change inthe 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) Netemission increases (I) "Net emissions increase" means, with respectto any regulated NSR pollutant emitted by a major stationary source, the amount by which the sum of the following exceedszero: I 

### The increase 

### in emissions from a particular physicalchange 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 particularchange and areotherwisecreditable. Baselineactual emissions for calculating increases and decreases under this sub-item IIshall be determinedas provided insub-part l.(xlvii) of this subparagraph, except that sub-items l.(xlvii)(l)lll and IV of this subparagraphshall notapply. (11) An increase or decrease inthe actual emissions is contemporaneous with the increase from the particular change only if it occurs before the datethat the increasefrom the particular change occurs. (Ill) An increaseor decreaseinactual emissions iscreditable only if; 

### I It occurs within a reasonable period to be specified by the Technical Secretary: and

June, 201 1 (Revised)

### CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) II TheTechnical Secretary has not reliedon it in issuinga permit for the source under regulations approved pursuantto 40 CFR Part 51 Subpart I, 

### which permit is in effect when the increase inactual emissionsfrom the particular change occurs; and Ill Reserved. (IV) An increase in actual emissions is creditable only to the extent that the new level of actual emissions exceedsthe old level. (V) A decrease inactual emissionsiscreditable only to the extentthat:
I 

### The old level of actual emission or the old level of allowable emissions which ever is the lower, exceeds the new level of actualemissions; and 

### II It isenforceableas a practical matter at and after the time that actual construction on the particular change begins; and 

### Ill 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 attainmentor reasonablefurther progress; and
IV It has approximately the same qualitative significance for public health and welfare as that attributed to the increase fromthe particularchange; and. V Reserved.

June, 2011 (Revised) (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 afler a reasonable shakedown period as determinedby theTechnical Secretary, not to exceed 180days. (VII) Item l.(xiii)(l) of this subparagraph shall not apply for determining creditable increasesand decreasesor aftera change. (vii) "Emissions unit" means any part of a stationary source that emits orwould have the potential to emit any regulated NSR pollutant. This definition includes an e1ecb.i~ steam generating unit as defined in sub-part l.(lvi) of this subparagraph. For purposes of this section, there are two types of emissions units as described in items l.(vii)(l) and (11) of this subparagraph. (I) A new emissions unit is any emissions unitwhich is (or will be) newly constructed and which has existed for less than 2 

### years from the date such emissions unit first operated. (11) An existing emissions unit is any emissions unit that does not meet the requirements in item l.(vii)(l) of this subparagraph. A replacement unit, as defined in sub-part l.(xxxvi) of this subparagraph, isan existing emissions unit.CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01. 

### continued) (vlil) "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 modificationwhich 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 asource to emit any of the following air contaminants, a rate of emissions that would equalor exceedany of the following rates: (I) Air Contaminantand Emissions Rate 

### I Carbonmonoxide: 100tons per year (tpy)
II NitrogenOxides: 40 tpy
Ill Sulfurdioxide: 40 tpy
IV Ozone: 40 tpy of an ozone precursor V Lead: 0.6 tpy
VI PM10: 15tpy
VII. PM2,: 10tpy of direct PMz5 emissions; 40 tpy of sulfur dioxide emissions; 40 tpy of nitrogen oxide emissions unless demonstrated not to be a PM2., precursor under subitem l(xlix)(lll)lll of this subparagraph. (11) Notwithstandingthe significant emissions rate for ozone in item (I) of this subpart, significant means, inreferenceto anemissions increase or a net emissions increase, any increase in actual emissions of 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 ina seriousor severe ozone non-attainmentarea that is subject to subpart 

### 2, part D, title I of the Clean Air Act, if such emissions increase of either volatile organic compoundsor nitrogen oxides exceeds

### 25 tons peryear. (Ill) 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

June, 2011 (Revised)

### CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-0309-.01,continued) actual emissions of carbon monoxide that would result from any physical change in, or change inthe 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 US. EPA has determined that stationary sources contribute significantly to carbon monoxide levels inthat area. (V) Notwithstanding the significant emissions rates for ozone under items (I) and (11) 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 nonattainmentareathat issubject to subpart

### 2, partD, title I

### of the Clean Air Act shall beconsidereda significant net emissions increase. (xi) "Allowable emissions" means the emissions rate of a stationary source calculated using the maximum rated ca~acihl 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 thefollowing: (I) The applicable standardsset forth in:
I 

### The New Source PerformanceStandards(NSPS) or; II The National Emission Standards for HazardousAir Pollutants (NESHAP) contained in Chapter 1200-03-11 and Chapter 1200-03-31or; Ill 

### Limits established pursuantto the applicable standards under Division 1200-03or; IV Inthe State Implementation Plan, emissions rates, specified as a legally enforceable permit condition established pursuant to this rule 1200-03-09-.O1 including those with a future compliance date (xii) "Legally enforceable" means all limitations and conditions which are enforceable by the Technical Secretary and the EPAAdministratorand are included under this Division 1200-03 and the State lmplementation Plan. All orders issued by the Tennessee Air Pollution Control Board, operating permits and their respective special conditions issued in accordance with the Act and Regulations, and any certificate authorized by the Act or the Regulations shall be taken to public hearing and made part of the State lmplementation Plan by the Boardto be legallyenforceable. (xiii) "Actual emissions" meansthe actual rate of emissionsof a regulated NSR pollutant from an emissions unit, as determined in accordancewith items 1



### .(xiii)(l) through (Ill) 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-park l.(xxxix) and (xlvii) of this subparagraphshall 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

June, 201 1 (Revised)

### CONSTRUCTION AND OPERATINGPERMITS CHAPTER 12000349 (Rule 12000309-.01,continued) 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 representativeof normal source operation. Actual emissionsshall be calculated using the unit's actual operating hours, production rates, and types of materials processed, stored, or combusted during the selected time period. (11) 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. (Ill) 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 onthat 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 appliedto 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 programof actual on-site constructionof 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 reasonabletime. (mi) "Necessary Preconstruction permits" means those permits required under the Federal air quality control laws and regulationswhich are part of the approvedSIP under Division 120043. (xvii) 'Begin actual construction" means, in general, initiation of physicalon-site construction activities on an emissions unit which are of a permanent nature. Such activitiesinclude, butare not limitedto, installationof building supports and foundations, laying of underground pipe work, and constructionof permanent storage structures. With respectto a change in method of operation this term refers to those on-site activities, other than preparatory activities,which markthe initiationof the change. (xviii) "Lowest achievable emission rate" (LAER) means, for any source, the more stringent rateof 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 ImplementationPlanfor such class or category of stationary source, unless the owner or operator ofthe proposed source demonstrates that such limitationsare notachievable; or

June, 201 1 (Revised)

### CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) (11) The most stringent emissions limitation which isachieved 

### in practice by such classor category of stationarysources. 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 Standardsof Performance. (xix) "Significantly impacr meansthe contribution by a new stationary source or modification to the air aualitv in a nonattainment area in concentrations equalto or greater than iheamount as follows: AVERAGINGTIME AND APPLICABLE CONCENTRATION Pollutant Annual 24 Hour 3 Hour 8 Hour 

### 1Hour. Sulfur

Dioxide 1 pglm3 5 

### pg/m3 25 pglm3

Carbon

Monoxide ug/m3
Nitrogen

Oxide 1 pglm3

(xx) "Minor stationarysource" means any source which is nota majorstationary source (mi) 'Minor modification"means (I) Any modification which is nota major modification; or (11) Any modification which is a physical change in or a change in the method of operation of a minor stationary source provided the changewould notconstitute a major stationary source by itself. (Mi) "Reasonable stack he~ghts" means a stack height which will minimize air quality impact, not to exceed the Tennessee ambient air quality standards inany case. TheTechnical Secretary shall ona case-bycase basis,taking into account the existing air quality in the area and the economic costs to the stationary source, determinethe achievablestack 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 meetthe minimum stack height requirement. Stationary

June, 201

### 1(Revised)

### CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) sourceswhich emit volatile organic compounds and nitrogen oxideand are located in ozone nonattainment areas will not be required to meet the minimumstack height requirement. (xxiii) "Reasonable Further Progress" (RFP) means such annual incremental reductions in emissionsof 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 maintainan ambient air qualitystandard, (11) The social, environmental and economic impact of such controls, and (Ill) Alternative means of providing for attainment and maintenance of such standard. (m) '"Compliance schedule" means a chronology of actions to be taken by a noncomplying source to bring it into full compliancewith 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 andlor 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 requiredbythe TechnicalSecretary. (mi)"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 expressedas HF. (xxvii) "Good Engineering Practice"(GEP) (GEP) Stack height meansthe greater of: (1) 65 meters, measured from the ground-level elevation at the base of the stack or, (11) I 

### For a stack in existence on Jailuary 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)

provided the owner or operator produces evidence that this equation was actually relied on in establishing an emission limitation;

June, 2011 (Revised)

### CONSTRUCTION AND OPERATING PERMITS (Rule 1200-03-09-.01, continued) 

### II For all other stacks, CHAPTER 1200-03-09

where Hg

### = good engineering practice stack height, measured from the ground-level elevationat 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(?,) measured from the ground-level elevation atthe base of the stack.
L 

### = lesser dimension, height or projected width, of nearby structure(s) providedthat theTechnical Secretary may require the use of a field study or fluid model to verify GEP stack height for the source; or (Ill) The height demonstrated by a fluid model or a field study approved bythe TechnicalSecretary, which ensures that the emissions from a stack do not result inexcessive concentrationsof any air pollutantas a result of atmospheric downwash, wakes, or eddy effects created bythe source itself, nearbystructures or nearbyterrainfeatures. (xxviii)"Nonattainment Area" means any area that does not meet (or that contributesto ambient air quality ina 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 standardsas a resultof 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 increasesfor Class II areas inthe case of an expansion or modification of a major emitting facility which was inexistence on the date of enactmentof the Clean Air Act. Amendments of 1977, and whose allowable emissionsof air pollutants IS 

### established as required in sub section 165(a)(4) of the 1990CieanAir Act. (xxix) (Reserved) (xxx) "Volatile Organic Compounds" and "exempt compounds" have the same meaningas defined in Division 1200-3-18-.O1Definitions. (xxxi) "Ambient Air Quality Standard" (AAQS) means any Primary Ambient Air Quality Standard or SecondalyAmbient Air Quality StandardorTennessee Ambient Air Quality Standardas definedin Chapter 1200-03-03. (xxxii)"Class I, Class II, or Class Ill"areas means areas of the state as defined by Division 1200-03-09-.01(4)(g). (xxxiii)"Ozone precursor" means volatile organic compounds andlor 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

June, 201 1 (Revised) 65CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01. continued) be classified as major based on either VOC or NO, emissionsor both (but not in combination). That is, the determination of major must bemade individually for each pollutant, since VOC and NO, emissions cannot be added to meet the minimum level requiredfor such a demonstration. (I) Notwithstanding sub-part (xxxiii) of this part, NO, shall not be consideredan ozone precursorwhen:
I Additional NO, emissions reductionswould 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 

### Ill. The Administrator of the U.S. EPA has granted a NO~waiver applying the standards set forth under section 182(f) of the CleanAir Act and the waiver continuesto apply. (xxxiv)"Stack height procedures" meansthose procedures that must provide that the degree of emission!imitation 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 beforethe Technical Secretary issues a permit to a source based on a good engineering practice stack height that exceeds the height allowed by40 CFR Part 51.100(ii) (1) or (2)(July 1, 1993). the Technical Secretam must notifv the ~ublic of the availabilitv of the demonstration study and must provideoppo&nity for public hearingon it. This subpart does not require such proceduresto restrict inany manner the actualstack heightof any source. (xxxv)"Portable Stationary Source" means any source that is mounted on any chassisor skids and may be moved bythe 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 pullingforce for the purpose of transporting the unit, except that such connection as deemed appropriate by the Technical Secretary may be exempted for safety considerationsfrom the specified restrictionsona qualifyingsource. (xxxvi)Replacementunit meansan emissions unitfor which all the criteria listed in items l.(xxxvi)(l) through (IV) of this subparagraph are met. No creditable emission reductions shall be generated from shutting down the existing emissions unit that isreplaced. (I) The emissions unit is a reconst~cted unit within the meaningof part (4)(b)54. ofthis rule, or the emissions unit completely takes the place of an existingemissions unit. (11) The emissions unit is identical to or functionally equivalent to the replacedemissions unit.

June, 2011 (Revised), 

# .

CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) (111)
(V The replacement does not alter the basic design parameters of the process unit. The replaced emissions unit is permanently removed from the major stationary source, otherwise permanently disabled, or permanently barredfrom operation by a permit that is enforceable as a practical matter. If the replaced emissions unit is brought back into operation, itshall constitute a new emissions unit. (xxxvii) Resewed. (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 certam "in-process recycling" practices), energy recovery, treatment, or disposal. (xxxix)"Significantemissions increase" means, for a regulated NSR pollutant, an increase in emissionsthat issignificant (as defined in sub-part l.(x) of this subparagraph) for that pollutant. (XI) "Projected actual emissions" means, the maximum annual rate, intons 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 capac~ty or its potential to emit of that regulated NSR pollu7ant and full utilization of the unit would result in a significant emissions increase or a significant net emissions increase at the major stationarysource. (I) Indeterminingthe projected actual emissions undersub-part 

### 1.(XI)of this subparagraphbeforebeginningactual construction,the owner or operatorof the majorstationary source: 

### I Shall considerall relevant information,including but not limited to, historical operational data, the company's own representations,the company's expected businessactivityand 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 

### Ill Shall exclude, in calculating any increase in emissions that results from the particular project, that portion of the un~t'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 I.(xlvii) of this subparagraph and that are also unrelatedto the

June, 2011 (Revised)

### CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.Of, continued) particular project, including any increased utilization due to product demand growth; or. (11) In lieuof usingthe methodset out in sub-items l.(xl)(l)l through Illof this subparagraph, may electto usethe emissions unit's potentialto emit, in tons per year, as defined under sub-part l.(iii) of this subparagraph. (xli) Resewed. (xlii) "Nonattainment major new source revlew (NSR) program" means a major source preconstruction permit program that has been approved by the Administrator and incorporated into the SIPto implementthe requirements of this subparagraph, or a program that implements40 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 requirementsof this section, to sample, condition (if applicable), analyze, and providea recordof 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, 

### O2or COz concentrations), and calculate and record the mass emissions rate (for example, lblhr) 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, 02 

### or C02 concentrations), and to record average operational parameter value(s) ona continuous basis. (xlvi) 'Continuous emissions rate monitoring system" (CERMS) meansthe total equipment required for the determination and recording of the pollutant mass emissions rate (interms of mass per unit of time). (xlvii) "Baseline actual emissions" means the rate of emissions, intons per year, of a regulated NSR pollutant, as determined in accordance with items I 

### .(xlvii)(l) through (IV) of this subparagraph. (I) For any existing electric utility steam generating unit, baseline actual emissions means Beaverage rate, intons peryear, atwhichthe 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 representativeof normal sourceoperation.

June. 201 1 (Revised)

### CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) I The average rate shall include fugitive emissionsto 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 duringthe consecutive 24-month period. Ill. 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 becomesubject to major new source review if a single 2-year baseline is usedfor 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 limitedto, the voluntary useof: (A) a cleaner fuel than otherwise permitted in a fuel burning operation (e.g., natural gas insteadof coal ina multi-fuel boiler), (B) a coating with a lower VOC content than otherwise permittedina coatingoperation, (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 morepollutants. C. Use of alternate 2-year baselines for the pollutants described in Subitem II above would result in the constructionof the new source or modification not being subjectto major newsource review. D. The useofthe multiple baselines isnot prohibitedby any. applicable provisionof 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

June, 2011 (Revised)CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-0349 (Rule 1200-0349-.01. continued) 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 l.(xlvii)(l)ll of this subparagraph. (11) 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 constructionof the project, or the date a complete permit appl~cation 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 includefugitive 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 duringthe consecutive 24-month period. 

### Ill 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, hadsuch majorstationary 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 requirementsof item2.(v)(Vll) ofthis subparagraph.
IV. For a regulated NSR pollutant, when a project involves multiple emissions units, one consecutive 24-month period must be used to determine the baseline actual emissions for the emissions units being changed. However, the Technical Secretary is authorized to allow the use of multiple, pollutant specific consecutive 24-month baselines in determining the magnitude of a significant net emissions increase and the applicabilityof major new source review requirements if all of the following conditions are met:

June, 2011 (Revised) A. Construction of a new source or modification would becomesubject to major new source review if a single 2year baseline is used for all pollutants.CONSTRUCTIONAND OPERATINGPERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued)
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, butare not limitedto, thevoluntary use of: 

### (A) a cleaner fuel than otherwise permitted in a fuel burning operation (e.g., natural gas insteadof coal ina multi-fuel boiler), (8) a coating with a lower VOC content than otherwise permittedina coatingoperation, (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 subjectto major new source review.
D. The useof the multiple baselinesis 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 madea padof 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 adjustingthis amount 

### if required by sub-items l.(xlvii)(ll)ll and Ill of this subparagraph. (Ill) Fora new emissionsunit, the baseline actual emissions for purposes of determinino the emissions increasethat 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 inaccordance with the procedures contained in item l.(xlvii)(l) of this subparagraph, for other existing emissions units in accordance with the procedures contained in item l.(xlviiXII) of this subparagraph, and 

### for a new emissions unit in accordance with the procedures contained in item l.(xlvii)(lll) of this subparagraph.

June. 2011 (Revised)

'I

### CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-0309 (Rule 1200-03-09-.01, continued) (xiviii) Reserved (xlix) "Regulated NSR pollutant." for purposes of this subparagraph, means the following: (I) Nitrogenoxidesor anyvolatileorganic compounds; (11) Any pollutant for which a national ambient air quality standard has been promulgated;or (Ill) Any pollutantthat is a constituent or precursorof a general pollutant listed under items l(xlix)(l) or (11) 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 purposesof NSR are thefollowing:
I. 

### Volatile organic compounds and nitrogen oxides are precursors to ozone inall ozone nonattainmentareas. II. Sulfur dioxideisa precursor to PM2.~ inall PM2.5 nonattainment areas. Ill. Nitrogen oxides are presumed to be precursors to PMz5in all PMz5 nonattainment areas, unless the State demonstrates to the satisfaction of the EPAAdministrator 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.~ concentrations. IV. Volatile organic compoundsand ammoniaare presumed notto be precursors to PM2, in any PM2, 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 PMz5 concentrations; or (IV) PM2.~ emissions and PMlo emissions shall include gaseous emissions from a source or activity which condense to form particulate matter at ambient temperatures. On or after January 1, 201

### 1, such condensable particulate matter shall be accounted for in applicability determinations and in establishing emissions limitations for PM2, 

# .,,,, PMlo in nonattainment major NSR permits. Compliance with emissions limitations for PMz5 PMI0 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. (I) "Reviewing authority" means the State air pollution control agency, local agency, other State agency, Indian tribe, or other agency authorized bythe Administrator to carry out a permit program under this subparagraph and

June, 2011 (Revised)CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01. continued) 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 operationof, an existing major stationarysource. (lii) 'Best available control technology" (BACT) means an emissions limitation (includinga 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 bestavailable control technology result in emissions of any pollutantwhich would exceed the emissions allowed by any applicable standard under 40 CFR part 60 or 61. Ifthe Technical Secretalydetermines that technological or economic limitations onthe applicationof measurement methodologyto 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 implementationof 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 insubparagraph(2)(d)of this ~le applies. (liii) "Prevention of Significant Deterioration (PSD) permit" means any permit that is issued under a major source preconst~ction 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 Secretaryof the departmentwith authority over such lands. (Iv) Resewed (Ivi) "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 outputto any utility power distribution system for sale. Any steam supplied to a steam distribution system for the purpose of providingsteam to a steam-electric generator that would produce electricalenergy for sale is also considered in determining the electrical energy output capacity of the affected facility. (Ivii) "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 inwhich the project is located and other requirements necessary

June. 201 1 (Revised)CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) to attain and maintain the national ambient air quality standards during the project and after it isterminated. (Iviii) '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 inwidespread useas 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 projectshall 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 modificationthat is majorfor a regulated NSR pollutant, or precursorto 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 pollutantpursuantto the CleanAir Act Title 

### IPartA Section 107(d).
The requirements of this subparagraph shall apply to each nonattainment pollutant (and in some cases each precursor to the nonattainrnent pollutant) that the source will emit, or will have the potential to emit, in major amounts. Inthe case of a modification, the requirements shall apply to the significant net emissions increase of each nonattainment pollutant (and each precursor to the nonattainrnent pollutant,as applicable) for whichthe source is major. (i) All new stationary sources or modifications shall utilize "stack height procedures."

June, 201 I (Revised) (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 nonattainment pollutant as specified by the Technical Secretatyat the time of the completed permit application. but ail major stationary sources and major modificationsare requiredto 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 rnajw 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 HazardousAir Pollutants.

### CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01,continued) (11) A new major stationary source shall apply the lowest achievable emission ratefor each contaminant for which the area isdesignated nonattainmentthat itwould 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 unitatwhich emissionswould occur. (Ill) 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 proposedemissions unit atwhich a netemissions increase 

### in the air contaminant would occur as the result of a physical change or change inthe method of operationinthe 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 RACTIBACTILAER 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 andexemptions: 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 sourceswhich 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 mod~fy so as to represent (when considered together with the plan provisions required underthe 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

June, 201 1 (Revised)

### CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 12004349-.01, continued) approved Implementation Plan pursuant to the Clean Air Act Title 

### I Part D Subpart 1 Section 172(c)(4) (as amended November 15,1990). (11) Forthe purposesof satisfyingthe requirementsof sub-item (iv)(l)l. of this sub-part, the determination of total emissions at both the time prior to the application for a permitsubject to the requirementsofthis sub-part and the time such permitted source or modificationwould commence operation, shall be made bythe 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 progressand attainment ofthe 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 reductionsto the emissions increaseshall be at least 1:l unless an alternative ratio is provided for the applicable nonattainment area in items (Ill). (IV)and (XIV) ofthis subpart. (I) Prior to the issuance of a permit under this subpart, legally enforceableemission offsets shall be obtained from the same source or other sources inthe same non-attainment area, except that such emissions reduction may be obtainedfrom a source in another nonattainment area if:
I. 

### The other area has an equal or higher non-attainment classification than the area inwhich the source islocated; 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 newor modified source would construct. (11) 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. (Ill) In meeting the requirements of item (v)(ll) 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 andlor Nitrogen Oxides to the net emissions increase of Volatile Organic Compounds andlor Nitrogen Oxides shall beasfollows: 

### I. Inany Marginalnon-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;

June, 2011

### (Revised)CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01. continued) 

### Ill. In any Serious non-attainment area for ozone 

## - at least 1.2 to

IV. Inany Severe non-attainmentarea for ozone-at least 1.3 to 1;
V. Inany Extreme non-attainmentarea for ozone

## - at least 1.5 to 

### 1. (IV) Within an ozone transport region that is subjectto 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 andlor Nitrogen Oxides to net emissions increase of Volatile Organic Compounds andlor 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 insections IA and Bof this item.
A. Such reductions are surplus, permanent, quantifiable, and federally enforceable.
B. The shutdown or curtailment ocwrred afler the last day of the base year for the SIP planning process. For purposesof this paragraph,the TechnicalSecretary may choose to consider a prior shutdown or curtailment to have occurred afler 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 

### I6 of this item may begenerally credited only if:
A. The shutdown or curtailment occurred on or afler the date the construction permit application isfiled; or
6. 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 requirementsof section IA ofthis 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" inthis 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

June, 2011 (Revised)

### CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01. continued) 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 reductionsfor such purposes if such emissions reductions meetthe applicablerequirementsof 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 in40 CFR Part51, Appendix S, Section 1V.D. (July 1,1993 ). 

### (IX) Resewed. (X) Resewed (XI) The total tonnage of increased emissions, in tons peryear, 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 l(xi) of this subparagraph) and the actual emissions before the modification (as defined in subpart l(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 creditwill be allowedonly for control below this potential. (XIII) For an existing fuel combustionsource, credit shall be based on the allowable emissions under this division 1200-03for 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 reductionshouldthe source switch backto a dirtier fuel atsome 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 CleanAir Act (but is not subjectto subpart 2, 

### part 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 nitrogenoxides to the emissions increase of either volatile organic compounds or nitrogenoxides shall be at least 1:l. (XV) In meeting the emissions offset requirementsof this subpart for fine particulatematter (PM,), 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 PMz., nonattainmentarea. Forthose nonattainment areas in which interprecursor trading is allowed by the approved SIP, the offset requirements for direct PM2, emissions or emissions of

June, 2011 (Revised)

### CONSTRUCTION AND OPERATINGPERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) precursorsof PMz5 may be satisfied by offsetting reductions indirect PMz5 emissions or emissionsof any PMz5 precursor identifiedunder item (b)l(xlix)(lll) of this paragraph if such offsets comply with the interprecursor trading hierarchy and ratio established in the approved SIPfor the affected nonattainment area. (vi) In a nonattainment area, prior to the issuance of a permitto a new major stationary sourceor major modificat~on 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 publicas a result of the sources location, construction, or modification in the nonattainrnent 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 entitycontrolling, 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 subparagraphand before the new source start up date, the source has the option of ,applying for a new construction permit and relief from the requirementsof this subparagraph. (I) Any permit issued under this part shall remain in effect, unless it expires undersubpart (xi)of this part or is rescinded. (11) The Technical Secretary shall grant an application for rescission if the application shows that this part would not apply to the source or modification.

. . 

### (Ill) 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 announcementof rescission ina newspaper of general'circulation in the affected region within 60 

### days of the rescission shall be considered adequate notice. (ix) At such time that a particular source or modification becomes a major stationary source or major modificationsolely by virtue 

### of a relaxation in any "legally enforceable limitation" which was established afler August 

### 7, 1980, on the capacity of the source or modification otherwise to emit a pollutant, such as a restrictionon 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 notyet commencedon 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.

June, 2011 (Revised)CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-0309 (Rule 1200-03-09-.01, continued) (xi) Approval to construct shall become invalid if construction is not commenced within 18 months after issuance of an approved consbuction permit, if construction is discontinuedfor 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 unlessan extension has been granted from the Tennessee Air Pollution Control Board. Also, each phase of a phasedconstructionproject must meet the requirements stated above. An extension of time for a phased construction project may be requested for each phaseor 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 constructionof a source providedadequatejustification is presented. Each extension shall notexceed 12 monthsintime. (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 l.(v)(l) of this subparagraph, a project is a major modification for a regulated NSR pollutant if it causes two types of emissions increases-a significant em~ssions increase (as defined in subpart l.(xxxix) of this subparagraph), and a significant net emissions increase (as definedinsub-parts l.(vi) and l.(x) of this subparagraph).The project is not a major modification if it does not cause a significant emissions increase. Ifthe project causes a significant emissions increase, then the project is a major modification only if it also results ina significant netemissions 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 procedurefor 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 l.(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 netemissions 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 ifthe sum of the differencebetweenthe projected actual emissions (as defined in sub-part l.(xl) of this subparagraph) and the baseline actual emissions (as defined in items l.(xlvii)(I) and (11) of this subparagraph, as applicable), for each existing emissions unit, equals or exceeds the significant amount for that pollutant (asdefined insub-part 1.(x) of this subparagraph). (xv) Actual-to-potential test for projectsthat only involve constructionof 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 potentialto emit (as defined in sub-part l.(iii) of this subparagraph) from each new emissions unit following completion of the project and the baseline actual emissions (as defined in item l.(xlvii)(lll) of this subparagraph) of these units before the project equals or exceeds the significant amount for that pollutant (as defined in sub-part l.(x) of this subparagraph).

June, 2011 (Revised)

### CONSTRUCTIONAND OPERATING PERMITS (Rule 1200-03-09-.01, continued) CHAPTER 1200-03-09

(xvi) Resewed. (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 (asdefinedinsubpart l(x)of this subparagraph). (xviii) Any major stationary source with a PAL for a regulatedNSR pollutantshall comply with the requirementsunder part 10. of this subparagraph. (xix) Resewed.
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 informationsubmitted hythe owneror operator and of theTechnicalSecretary'sanalysis of the effectonair quality; (11) A 30day periodfor submittalof publiccomment; and (Ill) A notice by prominent advertisement in the area affected of the location of the source informationand analysis specified in ltem (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 ltem 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 commentperiod which isconsistent 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 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 inthe region having responsibilityfor implementingthe 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 

### I. 1993).
4. Emissions banking for an air contaminant for which an area is designated nonattainment must be conducted in accordancewith the EPA Part Ill, Emissions Trading Policy Statement

## ..., Federal Register 

### I Vol. 51, No. 233 

### 1Thursday, December4,1986.

June, 2011 (Revised)

### CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) 

### 5. Thefollowingspecific provisions apply to projects at existingemissions unitsat a major stationary source (other than projects at a source with a PAL) in circumstanceswhere 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 l(xl)(l)l through 

### Illof this subparagraph for calculatingprojectedactualemissions.


### 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(ll)(e)l.(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 PALfor any existing major stationary source (except as provided in item lO.(i)(ll) 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. ofthis subparagraph. (11) 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. (Ill) 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, meetsthe requirements in sub-parts 10.(i) through 

## (xv)of this subparagraph, and complies with the PAL permit: 

### I Isnota major modification for the PAL pollutant; II Does-not have to be approved through the nonattainment major NSR program; and 

### Ill 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 lO.(i)(lll)lll of this subparagraph, a major stationary source shall continue to comply withall applicable Federal or State requirements, emission limitations, and work practice requirements that were established prior to the effective date of the PAL.

June. 2011

### (Revised)CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 

### 3200-03-09-.01. continued) (ii) Definitions. When a term is not defined inthese paragraphs, it shall have the meaning given in part 

### 1. of this subparagraph or inthe 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 l.(xlvii) of this subparagraph) of all emissions units (as defined in sub-part l.(vii) of this subparagraph) at the source, that emit or have the potential to emit the PAL pollutant. (11) Allowableemissions means"allowable emissions" as defined in subpart l.(xi) of this subparagraph, except as this definition is modified according to sub-items lO.(ii)(ll)l through IIofthis 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 potentiai to emit.
II 

### An emissions unit's potentialto emit shall be determined using the definition in sub-part l.(iii) of this subparagraph, except that the words "or enforceable as a practical matter" should be addedafter "federally enforceable." (Ill) 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 l.(x) of this subparagraph or in the Federal Clean Air Act, whichever is lower. (IV) Majoremissions unitmeans: 

### I Any emissions unit that emits or has the potentiai to emit 100 tons per year or more of the PAL pollutant in an attainment area; or

June, 2011 (Revised) 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 pollutantas defined by the FederalCleanAirAct 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 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 effectivedate for an increasedPAL is the date any emissions unit which is part of the PAL major modification becomes operational and beginsto emit the PAL pollutant. (VII) PAL effective period means the period beginning with the PAL effective date and ending 10years later.

### CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) (VIII) PAL major modification means, notwithstanding sub-parts l.(v) and l.(vi) of this subparagraph (the definitions for major modification and net emissions increase), any physical change in or change in the method of operationof the PALsource that causes itto emitthe PAL pollutant at a level equal to or greater thanthe 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 PALfor a major stationarysource. (X) PAL pollutant meansthe pollutantfor which a PALisestablishedata majorstationarysource: (XI) Significant emissions unit meansan emissions unit that emits or has the potentialto emit a PAL pollutant in an amount that is equal to or greater than the significant level (as defined in sub-part l.(x) of this subparagraph or inthe Federal CleanAir 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)(lV) of this subparagraph. (iii) Permit application requirements. As part of a permit application requesting a PAL, the owner or operatorof 

### a major stationary source shall submit the followinginformationto theTechnical Secretaryfor 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 indicatewhich, if any, Federal or State applicable requirements, emission limitations or work practices applyto each unit. (11) 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 associatedwithstartup, shutdown and malfunction. (Ill) The calculation procedures thatthe 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 lO.(xiii)(l) of this subparagraph. (iv) Generalrequirements for establishing PALS. (I) The Technical Secretary may establish a PAL at a major stationary source, provided that at a minimum, the requirements in sub-items lO.(iv)(l)lthroughVII of this subparagraph are met. 

### I The PALshall impose an annual emission limitation intons per year, that is enforceable as a practical matter, for the entire major stationary source. For each month during the PAL effective period after thefirst 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

June, 201 1 (Revised)

### CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) than the PAL (a 12-month average, rolled monthly). For each month during the first 11 months from the PAL effectivedate, 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 thanthe PAL. The PAL shall be established in a PAL permit that meets the public participation requirements in sub-part 10.(v) of this subparagraph. The PAL permit shall contain all the requirements of sub-part 10.(vii) of this subparagraph. 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. Each PAL shall regulateemissions of only one pollutant. Each PALshall have a PALeffective period of 10years. 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 PALthroughthe PALeffectiveperiod. (11) 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 subpart2.(v) of this subparagraph unlessthe level of the PAL is reduced by the amount of such emissions reductions and such reductions would becreditable 

### inthe absence of the PAL. (v) Public participation requirement for PALs. PALs for existing major stationary sources shall be established, renewed, or increased through a procedurethat is consistentwith40 CFR 51.160 and 51.161, part 3. of this subparagraph, subparagraph (4)(1) 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 30day period for submittal of public comment. The Technical Secretary must address all material comments before taking final action on the permit. (vi) Settingthe 10-year actuals PALlevel. 

### (I) Except as provided 

### in item IO.(vi)(ll) of this subparagraph, the actuals PAL levelfor a major stationary source shall be established as the sum of the baseline actual emissions (as defined in sub-part 

### I .(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 l.(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

June, 2011 (Revised)

### CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-0309 (Rule 1200-03-09-.Of, continued) consecutive 24-month period must be used to determine the baselineactual emissions for all existing emissions units. Emissions associatedwith units thatwere permanently shut down after this 24- month period must be subtractedfrom the PAL level. The Technical Secretary shall specify a reduced PAL level(s)(intonslyr) inthe PAL permit to become effective on the future compliance date(s) of any applicable Federal or State regulatory requirement(s) that the Technical Secretary isaware 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 baselineemissions of such unit(s). (11) For newly constructed units (which do not include modificationsto existing units) on which actualconstruction began after the 24-month period, in lieu of addingthe baseline actual emissions as specified in item 10.(vi)(l) of this subparagraph, the emissions must be added to the PAL levelin an amount equalto the potential to emitofthe units. (vii) Contents of the PAL permit. (I) The PAL pollutant andthe applicable source-wide emission limitation intons peryear. (11) The PAL permit effective date and the expiration date of the PAL (PAL effectiveperiod). (Ill) 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 beforethe end of the PAL effective period, then the PAL shall not expire at the end of the PAL effectlve period. Itshall remain ineffect until a revised PAL permit is issuedby the TechnicalSecretary. (IV) A requirement that emission calculations for compliance purposes includeemissions from startups, shutdownsand malfunctions. 

### (V) A requirement that, once the -PAL expires, the major stationaly source is subject to the requirements of sub-part 10.(ix) of this subparagraph. (VI) The calculationprocedures that the majorstationary sourceowner or operator shall use to convert the monitoring system data to monthly emissions and annual emissions based on a 12month rolling total for each month as required by item IO.(xiii)(I) ofthis 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.

June, 2011 (Revised)

### CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) (IX) A requirement to submit the reports required under sub-part 10.(xiv) ofthis subparagraph bythe requireddeadlines. (X) Any other requirements that the Technical Secretary deems necessaryto implement and enforce the PAL. (viii) PALeffective periodand reopeningof the PALpermit. (I) PAL effective period. The Technical Secretary shall specify a PAL effective periodof 10years. (11) Reopeningof the PALpermit. I During the PAL effective period, the Technical Secretary shall reopenthe PAL permitto: A Correct typographicallcalculation errors made in setting the PAL or reflect a more accurate determination of emissions usedtoestablishthe 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-part2.(v) of this subparagraph. C Revise the PAL to reflect an increase in the PAL as provided undersub-part 10.(xi) ofthis 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 afler the PALeffectivedate.
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 contributingto a NAAQS or PSD incrementviolation, or to an adverse impact on an air quality related value that has been identified for a Federal Class I 

### area by a Federal Land Manager and for which information is availableto the general public. 

### Ill Except for the permit reopening in section IO.(viii)(ll)lA of this subparagraph for the correction of typographicallcalculation errors that do not increasethe PAL level, all other reopenings shall be carried out in accordance with the public participation requirementsof sub-part 10.(v)of this subparagraph. (ix) Expirationofa PAL.Any PALwhich 

### is not renewed inaccordance with the procedures in sub-part 10.(x) of this subparagraph shall expire at the end

June, 2011 (Revised)CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01,continued) of the PAL effectiveperiod, and the requirementsinitems 10.(ix)(l) through (V) ofthis 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 lO.(ix)(l)l through II ofthis subparagraph. 

### I Within the time frame specified for PAL renewals in item 10.(x)(Il) 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 distributionshall be made as ifthe PAL had beenadjusted. 

### 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 determinesisappropriate. (11) 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 emissionlimitation. (Ill) Until the Technical Secretary issuesthe revised permit incorporating allowable limits for each emissions unit, or each group of emissions units, as required undersub-item IO.(ix)(l)l of this subparagraph, the source shall continue to comply with a source-wide, multi-unit emissions cap equivalenttothe level of the PALemission limitation. (IV) Any physical change or change in the method of operation at Vle major stationary source will be subject to the nonattainment major NSR requirements if such change meets the definition of major modificationinsub-part l.(v) ofthis subparagraph. 

### (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 limitationsthat had been established pursuant to subpart 2.(ix) of this subparagraph, but were eliminated by the PAL in accordance with the provisions in sub-item lO.(i)(lll)lll of this subparagraph. (x) Renewal of a PAL.

June, 2011(Revised)

### CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) (I) The Technical Secretary shall follow the procedures specifiedinsubpart 10.(v) of this subparagraphin approvingany 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 bythe Technical Secretary. (11) 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 isto ensurethat 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 permitw~th the renewed PAL is issued. (Ill) Application requirements. The application to renew a PAL permit shall containthe information required insub-items 1O.(x)(111)1 through IV of this subparagraph. 

### I The information required in items lO.(iii)(l) through (Ill) of this subparagraph.
II 

### A proposed PAL level.
Ill 

### The sum of the potential to emit of all emissions units under the PAL (withsupportingdocumentation).
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)(lV)I and 

### I1 of this subparagraph. However, in no case may any such adjustment failto comply with sub-itern lO.(x)(lV)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 the PAL aP the same levelwithout considering the factors set forth in sub-item lO.(x)(lV)II ofthis subparagraph;or II The Technical Secretary may set.the PAL at a level that it determines to be more representativeof the source's baseline actual emissions, or that it determines to be appropriate considering air quality needs, advances incontrol 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 Secretaryin itswritten rationale.

June. 201

### 1(Revised)CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01. continued) 

### Ill Notwithstanding sub-items IO.(x)(lV)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 nogreater than the potential to emit of the source: and
B The Technical Secretary shall not approve a renewed PAL level higherthan the current PAL, unless the major stationary source has complied with the provisions of sub-part 10.(xi) ofthis subparagraph(increasinga PAL). (V) Ifthe 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 PALshall be adjustedat the time of PAL permit renewalor title V permit renewal, whichever occurs first. (xi) Increasing a PALduring the PAL effectiveperiod. (I) The Technical Secretary may increase a PAL emission limitation only if the major stationary source complies with the provisions in sub-items IO.(xi)(l)l through IVofthis 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 applicationshall identify the emissions unit(s) contributing to the increase in emissions so as to cause the major stationary source's emissionsto equalor 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 ofthe allowable emissions of the new or modified emissions unit@) exceeds the PAL. The level of control that would result-from BACT equivalent controls on each s~gnificant or majoremissions unit shall be determined by conductina a new BACT analvsis at the time the a~~lication is submitted: unless the ernissibns unit is currently'iequired to comply with a BACT or LAER requirement that was established within the preceding 10years. In such a case, the assumed control levelfor that emissions unit shall be equal to the level of BACTor LAERwithwhich that emissions unit must currentlycomply. 

### Ill The owner or operator obtains a major NSR permit for all emissions unit(s) identified in sub-item IO.(xi)(l)l 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

June, 2011(Revised) 90CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) though they have also become subject to the PAL or continue to be subjectto the PAL.
IV The PAL permit shall require that the increased PAL levelshall be effective on the day any emissions unit that is part of the PAL major modification becomes operational and begins to emitthe PAL pollutant. (11) The Technical Secretaly 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 inaccordance with sub-item IO.(xi)(l)l), plus the sum of the baseline actual emissions of the small emissions units. (Ill) The PAL permit shall be revised to reflect the increased PAL level pursuantto the public notice requirements of sub-part 10.(v) of this subparagraph. (xii) Monitoringrequirementsfor 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 scient~fic procedures for data qualib and manipulation. Additionally, the informationgenerated by such system must meet minimum legal requirements for admissibility ina judicial proceedingto 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 IO.(xii)(ll)l through IV of this subparagraph and must be approved by the Technical Secretary. 

### Ill Notwithstandingsub-item IO.(xii)(l)ll of this subparagraph, you may also employ an alternative monitoring approach that meets sub-item IO.(xii)(l)l of this subparagraph if approved by the Technical Secretary.
IV Failure to use a monitoring system that meets the requirements of this section renders the PALinvalid. (11) Minimum Performance Requirements for Approved Monitoring A~~roaches. The following are acceptable general monitoring abbroaches when conducted in accordance with the minimum requirements in items lO.(xii)(lll) through (IX) ofthis subparagraph: 

### I Mass balance calculations for activities using coatings or solvents;

June, 2011 (Revised)

### CONSTRUCTION AND OPERATING PERMITS (Rule 1200-03-09-.01, continued) 

### II CEMS; CHAPTER 1200-03-09

Ill 

### CPMSor PEMS; and IV 

## mission Factors (Ill) Mass Balance Calculations. An owner or operator using mass balance calculations to monitor PAL pollutant emissions from activities usmg 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 usedinor atthe emissions unit; II Assume that the emissions unit emits all of the PAL pollutant that is contained inor created by any raw materialor fuel used in or at the emissions unit, if it cannot otherwise be accounted for inthe process;and 

### Ill Where the vendor of'a material or fuel, which is used in or at the emissions unit, publishes a rangeof pollutant contentfrom 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 anothercontentwithinthe range. (IV) CEMS. An owner or operator using CEMS to monitor PAL pollutant emissions shall meetthe following requirements: 

### I CEMS must comply with applicable Performance Specificationsfound in40 CFR part 60, appendix B; and
II CEMS mustsample, analyze and record data at leastevery 15 minutes while the emissions unit isoperating. (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 monitored parameter(s) and the PAL pollutant emissions acrossthe rangeof 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 isoperating. (VI) Emission factors. An owner or operator using emission factors to monitor PAL pollutant emissions shall meet the following requirements:

June, 2011 (Revised)CONSTRUCTION AND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-0309-.01, continued) 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 usefor the emissionfactor, ifapplicable: and


### Ill Iftechnically 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 limitationsor operational restrictionsfor an emissions unit duringany period of time that there is no monitoring data, unless another methodfor determining emissions during such periods is specified in the PAL permit. (VIII) Notwithstandingthe requirementsin items lO.(xii)(lll) 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 permitissuance: 

### I Establish defaultvalue(s) for determin~ng compliance with the PAL based on the highest potential emissions reasonably estimated at such operat~ng point(s): or 

### II Determine that operat~onof the emissions unit during operating conditions when there is no correlation between monitored parameter(s) and the PAL pollutant emissions is a violationofthe 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 testlng must occur at least once every 5years afler issuance of the PAL (xiii) Recordkeepingrequirements. (I) The PAL permit shall require an owneror operatorto retaina copyof all records necessaryto determine compliancewith 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 5years from the date of such record. (11) The PAL permit shall require an owner or operatorto retaina copy of the following recordsfor the durationofthe PALeffective period plus 5years: 

### I A copy of the PAL permit application and any applications fo~ revisionsto the PAL; and

June. 2011 (Revised)CONSTRUCTIONAND OPERATING PERMITS (Rule 1200-03-09-.Of, continued) CHAPTER 1200-03-09

June, 2011 (Revised) II Each annual certification of compliance pursuant to title V and the data reliedon incertifyingthe compliance. (xiv) Reporting and notification requirements. The owner or operator shall submit semi-annual monitoringreports 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 IO.(xiv)(l)through (Ill). (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 reportshall contain the information required insub-items lO.(xiv)(l)lthrough VII ofthis subparagraph. 

### I The identification of owner and operator and the permit number. 

### II Total annual emissions (tonslyear) based on a 12-month rolling total for each month in the reporting period recorded pursuant to item lO.(xiii)(l) ofthis subparagraph. 

### Ill All data relied upon, including, but not limited to, any Quality Assurance or Quality Control data, in calculating the monthly and annual PAL pollutantemissions.
IV A list of any emissions units modified or added to the major stationary source duringthe preceding6-monthperiod. 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 notificationof a shutdownof any monitoringsystem, whether the shutdown was permanent or temporary, the reasonfor the shutdown, the anticipated date that the monitoringsystem will be fully operational or replaced with another monitoring system, and whether the emissions unit monitored by the monitoringsystem continued to operate, and the-calculation of the emissions of the pollutant or the number determined by method includedinthe permit, as provided by item lO.(xii)(VII) ofthis subparagraph.
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 informationprovided inthe report. (11) Deviationreport. The majorstationary 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 reoorl submitted oursuant to item .021111(e)l.(iiiYlll1of this cha~ter

~ ,~, ~ ,~, siallsatisfythis rkporting requirement. The deviationreports shail be submitted within the time limits prescribed by item .02(1l)(e)l.(iii)(lll) ofthis chapter. The reports shall contain the following information:

### CONSTRUCTIONAND OPERATING PERMITS (Rule 1200-03-09-.01, continued) CHAPTER 1200-03-09



### I The identification of owner and operator and the permit number; II The PAL requirement that experienced the deviation or that was exceeded; 

### Ill Emissions resultingfrom the deviationor the exceedance; and IV 

### A signed statement by the responsible official (as defined by the applicable title V operating permit program) certifying the tmth, accuracy, and completeness of the information provided inthe report. (Ill) Revalidation results. The owner or operator shall submit to the Technical Secretary the results of any re-validation test or method within 3 monthsafter completion of suchtest 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. 

### (11) The Technical Secretary may supersede any PAL which was established prior to the date of approval of the plan by the Administratorwith a PAL that complieswith the requirements of subparts 10.(i) through (xv)afthis subparagraph.
11. If any provision of this section, or the applicationof such provision to any person or circumstance, is held invalid, the remainder of this section, or the application of such provisionto persons or circumstances other than those as to which it is held invalid, shall not beaffectedthereby.
12. The requirements of this subparagraph applicable to major stationary sources and major modificationsof PMlo shall also apply to major stationary sources and major modifications of PMlo precursors, except where the Administrator of the 

### U.S. EPA determines that such sources do not contribute significantly to PMlo levels that exceedthe PMlo ambient standards inthe area. 

### (6) Construction permits issued under this rule are basedonthe control of air contaminants only and do not inanyway affect the applicant's obligation to obtain necessary permitsfrom other governmental agencies. (7) 

### The applicantfor a construction permit (or its equivalent by Board order) shall paythe cost of publication of any notices required by state or federal law or regulations to effectuate the rightsapplied for. (8) Visibility Protection (a) Definitions

# - Unless specifically defined in this part, all terms shall have the meaning given them in Chapter 120003-02, paragraph 1200-0309-.01(4) and Chapter 1200-03-23.

June, 2011

### (Revised)CONSTRUCTIONAND OPERATING PERMITS CHAPTER 120003-09 (Rule 1200-03-09-.01, continued). 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 visibilityvalues may be impactedby sources inTennessee: (i) Great Smoky Mountains National Park(NP), TN-NC (ii) Joyce Kilmer-SlickrockNationalWilderness Area(NWA), TN-NC. (iii) Cohutta National Wilderness Area, TN-GA. (iv) Linville Gorge NationalWildernessArea, NC. (v) Shining Rock NationalWildernessArea, NC (vi) Sipsey National Wilderness Area, AL (vii) Mammoth Cave NationalPark, 

### KY. (viii) Mmgo 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 WildemessArea(NWA). (b) Review of major stationary sources and major modifications

## - source applicabilityand exemptions.
1. Nostationary source or modification to which the requirementsof this part apply shall begin actual construction without a permit which states that the stationary sourceor 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 protectionarea. 

### 3. The requirements ofthis part shall apply to any major stationary source and any major modificationwith respect to each air contaminant that itwould emit, except as this part othewise provides. 

### 4. The requirements of this part shall not apply to a particular major stationary source or major modification, if: (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

June, 2011 (Revised)

### CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) modification 

### and the source does not belong to any of the following categories: Coal cleaning plants (withthermal dryers); Kraft pulp mills; Portland cement plants; Primaryzinc smelters; Ironand steel mills; Primaryalumlnumore reducbonplants, Primarycoppersmelters; Municipal incinerators capable of charging more than 250 tons of refuse perday; Hydrofluor~c, sulfuric, or nitricacid plants; Petroleum refineries; Lime plants; Phosphate rock processingplants; Coke oven batteries; Sulfur recovery plants; Caaonblack plants(furnaceprocess); Primary leadsmelters; (XVII) Fuel conversion plants; (XVIII) Sintering plants; (XIX) Secondary metal productionplants; (XX) Chemical process plants; (XXI) Fossil-fuel boilers (or combinationthereof) totaling more than 250 millionBritish thermal unitsper hour heat input; (XXII) Petroleum storage and transfer units with a total storage capacity exceeding 300,000 barrels; (XXIII) Taconite ore processing plants; (XXIV) Glassfiber processingplants; (XXV) Charcoal production plants;

June, 2011 (Revised)CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) (XXVI) Fossil fuel-fired steam electric plants of more than 250 million British thermal units per hour hear input: (XXVII) Any other stationary source categorywhich, 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 

### I. 1993). (iii) The source is a portable stationary sourcewhich 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 twoyear period); and (11) The emissions from the source would not exceed its allowable emissions; and (Ill) 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 theTechnical 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 demonstratesthat, as to that pollutant,the sourceor modificationis located inan areadesignated 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 pollutantfrom the source, or the net emissions increaseof that pollutant from the modification: (i) Would impact novisibility protection area and no area where an applicable increment is knownto be violated, and (ii) Would be temporary. (c) Visibility impactanalyses 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.

June, 20.11 (Revised)CONSTRUCTION AND OPERATING PERMITS CHAPTER 

### 1200-03-09 (Rule 

### 1200-03-09-.01, continued) 

### 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 relatedvalues (including visibility) of such lands and to consider, in consultation with the Technical Secretary whether a proposed source or modificationwill have an adverse impacton such values.
2. The Technical Secretary shall provide written notification to all affected Federal Land Managersof 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 responsibilityfor management of any landswithin any such area. Such notification shall include a copy of all information relevantto the permit application and shall be given within 

### 30 days of receipt and at least 

### 60 days priorto any public hearing on the application for a permitto construct. Such notification shall includean analysisof the proposedsource's anticipated impacts on visibility in any visibility protection area. The Technical Secretary shall also notify all affected FLM's w~thin 

### 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 providedwithin 

### 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, inthe notice of public hearing, either explain his decision or give notice astowhere the explanationcan beobtained. (e) Nationalvisibility goal.
The TechnicalSecretary shall only issuepermitstothose sourceswhose emissionswill 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 impactsof compliance, andthe useful lifeof 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 modificationfor such purposes and by such meansas the TechnicalSecretary deems necessary and appropriate. Authority: T.C.A. 

### $54-5-201 et seq., 

### 4-5-202 et seq., 

### 68-201-101 et seq., and 

### 68-201-105. Administrative History: Originalrule certifiedJune 

### 4, 1974. Amendment filedandeffective February

### 9, 1977. Amendment filed and effectiveApril 

### 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. AmendmentfiledApri1 

### 19, 1990;effectiveJune 

### 2, 1990. Amendment filed May 

### 17,1990;effective July 

## I, 1990. Amendment filed May 

### 12, 1993;effective June 

### 26, 1993. Amendment filed September 

### 7,1993; effective November

### 21, 1993. Amendment filedApril 

### 18, 1994;effective July 

### 2, 1994. Amendment filed

June, 

### 201

### 1 (Revised) 

### 99

### CONSTRUCTIONAND OPERATING PERMITS CHAPTER 1200-03-09 (Rule 1200-03-09-.01, continued) June 2, 1994; effective August 15, 1994. AmendmentfiledMarch 29, 1995; effectiveJune 14, 1995. Amendment filedJune 3, 1996; effective August 14, 1996. AmendmentfiledJune 7, 1996, effective August 18, 1996.Amendment filed October 14, 1996;effective December28, 1996.Amendment filed November 12, 1998; effectiveJanuary 26, 1999. AmendmentfiledJune 8, 1999; effective August22, 1999.Amendment filedDecember 30, 1999;effectiveMarch 14,2000. Repealandnewrule filed December 1, 2005; effective February 14, 2006. AmendmentfiledFebruary 24, 2009; effective May 10, 2009.AmendmentfiledFebruary24, 2009; effective May 10, 2009. Amendments filed February24, 2009; effective May 10,2009. Amendment filed May 12,2010; effectiveAugust 10, 2010.Amendments filed November 10,2010; effective February8, 2011.Amendments filedMarch29,2011; effectiveJune 27, 2011.

June, 2011 (Revised)