1 pmposed'new location and the probable duration of operation at the new location. 

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

3 proposed relocation unless a different time duration Is previously approved by the 

4 cabinet pursuant to this subsection. [~Aiwk] 

5 (e) The source or modification was not subject to this administrative regulation with 

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

7 or operator: 

1. Obtained all final federal, state, and local prtxmnstruction approvals or permits 

necessary under the applicable SIP before July 31, 1987; 

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

3. Did not discontinue construction for a period of eighteen (18) months or mote and 

completed construction within a reasonable period of time. 

(f) & The source or modification was subject to this administrative regulation for 

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

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

before that date; and 

2. The [G~~AWWW] cabinet subsequently determined that the application as 

submitted was complete with resped to the particulate matter requirements then in 

effect. 

20 (2) Sections 8 to 16 of this administrative regulation shall not apply to a major 

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

22 demonstrates that, for that pollutant, the source or modification is located in an area 

23 designated as nonattainment pursuant to 42 U.S.C. 7407(d)(1)(A)(i). 
(3) Sections 9, 11, and 13 of this administrative regulation shall not apply to a 

proposed major stationary source or major modification for a particular pollutant, if the 

allowable emissions of that pollutant from the source, or the net emissions increase of 

that pollutant from a modification: 

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

to be violated; and 

(b) Will be temporary. 

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

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

at a stationary source that was in existence on March I, 1978, if the net increase in 

allowable emissions of each regulated NSR pollutant from the modification after the 

application of BACT will be less than fi (50) tons per year. 

(5) The cabinet may exempt a proposed major stationary source or major 

modification from the monitoring requirements of Section 11 of this administrative 

regulation for a particular pollutant, if: 

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

increase of the pollutant from the modification will cause air quality impacts In an area, 

which are less than the amounts listed in the following table; or 

Averaging 

average 
Nitrogen 

dioxide 

Particulate 

matter 

v 

Sulfur 

dioxide 

Ozone 

Lead 

Fiuorides 

qualrty data. 

14 ygim3 

average 

annual 

average 

10 pgim' of 24-hour 

PMio average 

13 pg/rn3 24-hour 

average 

4 [Rle] de minimis air qualmQ 

level is provided fo~ 

ozone. However, a nel 

increase of I00 tons per yea1 

or more of volatile organic 

compounds or nitmer 

oxides subject to thi: 

administrative regulatior 

shall be [if] required tc 

perform an ambient impac 

analysis including thc 

gathering of ambient ail 
Hydrogen 

sulfde 

Total 

reduced 

sulfur 

Reduced 

sulfur 

compounds 

1 -hour 

average 

1 -hour 

average 

1 -hour 

average 

(b) The concentrations of the pollutant in the area that the source or modification will 

affect are less than the concentrations listed in the table in paragraph (a) of this 

subsection, or the pollutant is not listed in the table. 

(6) Pemitting requirements equivalent to Section 9(2) of this administrative 

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

allowable increase for nitrogen oxides, if: 

(a) The owner or operator of the source or modification submitted an application for 

a permit or p.ermit revision under the applicable permit program before the date on 

which the provisions embodying the maximum allowable increase took effect in the 

Kentucky SIP; and 

(b) The cabinet subsequently determined that the application as submitted before 

that date was complete. 

(7) Permitting requirements equivalent to Section 1 O(2) of this administrative regulation 

shall not a~dv to a stationarv source or modifcation for a maximum allowable inc~~t3 
for PNllo, if: 

(a) The owner or operator of the source or modification submitted an application for 

a permit under the applicable permlt program before the provisions embodying the 

maximum allowable increases for PMlo took effect as part of Kentucky's SIP; and 

(b) The cabinet subsequently determined that the application as submitted before 

that date was complete. 

(8)(a) The cabinet may determine that the requirements for air quality monitoring of 

PMIO in Section 11 of this administrative regulation shall not apply to a particular source 

or modification, if: 

1 - The owner or operator of the source or modification submitted an application for a 

pennit under this section on or before June 1,1988; and 

2. The cabinet subsequently determines that the application as submitted before that 

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

specified in Section 11 of this administrative regulation. 

(b) The requirements for air quality monitoring of PMto in Section I1 of this 

administrative regulation shall apply to a particular source or modification if the owner or 

operator of the source or modification submitted an application for a permit under 40 

C.F.R. 52.21 or this administrative regulation after June I, 1988, and not [tie] later than 

December I, 1988. 

1. The data shall have been gathered over at least the period from February 1,1988, 

to the date the application becomes oomplete in accordance with Section 11 of this 

administrative regulation; and 

2. If the cabinet determines that a complete and adequate analysis can be 
accomplished with monitoring data over a shorter period, which may not to be less than 

four (4) months, the data that Section 11 of this administmtive regulation requires shalt 

have been gathered over that shorter period. 

(9) The requirements of Section 9(2) of this administrative regulation shall not apply 

to a stationary source or modification for a maximum allowable increase for PMlo, if: 

(a) The owner or operator of the source or modification submitted an application for 

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

provisions embodying the maximum allowable increases for PMlo took effect, and the 

cabinet subsequently determined that the application as submitted before that date was 

complete. 

(b) Instead, the requirements of Section 9(2) shall apply for the maximum allowabk 

increases for TSP as in effect on the day the application was submitted. 

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

modification shall meet each applicable emissions limitation under the Kentucky SIP 

and each applicable emissions standard and standard of performance pursuant to 40 

C.F.R. [t&eMQ C.!?.&] Parts 60 and 61. 

(2) A new major stationary source shail apply BACT for each regulated NSR 

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

(3) A major modffication shall apply BACT: 

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

increase at the source; and 

(b) For each proposed emissions unit at which a net emissions increase h the 

pollutant omrs as a result of a physical change or change In the method of operation 
of the unit. 

(4) For phased construction projects: 

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

the latest reasonable time occumng [rref later than eighteen (18) months prior to 

commencement of construction of each independent phase of the pmject; and 

(b) If reauested by the cabinet, the owner or operator of he applicable 

stationary source &aJ 1-1 demonstrate the adequacy of a 

previous BACT determination for the source. 

Section 9. Source Impact Analysis. The owner or operator of the proposed source 

or modification shall demonstrate that allowable emissions increases from the proposed 

source or modification, in conjunction with all other applicable emissions increases or 

reducttons, including secondary emissions, shall not cause or contribute to air pollution 

in violation of: 

(1) A national ambient air quality standard in an air quality control region: or 

(2) An applicable maximum allowable increase over the baseline concentration in 

any area. 

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

based on the applicable air quality models, databases, [dakAwxhJ and other 

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

Models." Mwndix A." m] 

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

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

(a) The use of a modified or substitute model shall be: 
I 

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

2. A~oroved in writing bv the U.S. EPA ~ursuant to 40 C.F.R. 51.166(1). [kkxkewa 

-1 . . 

(b) Methods similar to those outlined in the 'WorWxMk for the Comparison of Air 

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

the comparability of air quality modets. 

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

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

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

the major stationary source or major modification wiU affect for each of the following: 

1. For a source, each pollutant that the source wilt have the potential to emit in a 

significant amount; 

2. For a modification, each pollutant that the modification will result in a significant 

net emissions increase. 

(b) For a pollutant that does not have a national ambient air qualii standard, the 

analysis shall contain air quality monitoring data the cabinet determines necessary to 

assess ambient air quality for that pollutant in an area that the emissions of that 

pollutant will affect. 

(c) For pollutants, other than nonmethane hydrocarbons, for which a standard exists, 

the analysis shall contain continuous air quality monitoring data gathered to determine if 

emissions of that pollutant will cause or contribute to a violation of the standard or a 

maximum allowable increase. 

(d) 4. The required continuous air quality monitoring data shall have been gathered 
over a period of at least one (1) year and shall represent at least the year preceding 

receipt of the application. 

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

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

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

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

major stationary source or major modification who satisfies all conditions of 40 C.F.R. 

Part 51, Appendix S, section IV may provide postapproval monitoring data for ozone 

instead of providing preconstruction data as required in this section. 

(9 For air quali monitoring of PMio under Section 7(8)(a) and (b) of this 

administrative regulation, the owner or operator of the source or major modification shall 

use a monitoring method approved by the cabinet pursuant to 40 C.F.R. Part 53 and 

shall estimate the ambient concentrations of PMlo using the data collected by that 

approved monitoring method in accordance with estimating procedures approved by the 

cabinet pursuant to 40 C.F.R Part 58. ADpendix A. 

(2) Postconstruction monitoring. After construction of a major stationary source or 

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

cabinet determines is necessary to determine the effect emissions from the Stati01W'y 

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

(3) Operatiin of monitoring stations. During the operation of air quality monitoring i 

stations, the owner or operator of a major stationary source or major modification shall 

I 

meet the requirements of 40 C.F.R. Part 58, Apoendix A [m] to satisfy the air I 

quality analysis requirements of this section. 
Section 12. Source Information. The owner or operator of a proposed source or 

modification shall submit to the cabinet all information necessary to perform an analysis 

or make a determination required under this administrative regulation. 

(1) The infomation shall include: 

(a) A description of the nature, location, design capacrty, and typical operating 

schedule of the source or modification, including specifications and drawings showing 

its design and plant layout; 

(b) A detailed schedule for consbudin of the source or modification; and 

(c) A detailed description of the system of continuous emissions reduction planned 

for the source or modification, emissions estimates, and any [&b] information 

necessary to determine that BACT will be applied. 

(2) Upon request of the cabinet, the owner or operator shall also provide information 

on: 

(a) The air quality impact of the source or modification, induding meteomlogical and 

topographical data necessary to estimate the impact; and 

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

residential, industrial, and other growth that has occurred since August 7, 1977, In the 

area the source or modbtion will affect. 

Section 43. Additional Impact Analysis. (1) The owner or operator shall provide an 

analysis of the impairment to visibility, soils. and [se&a&l vegetation that will occur as 

a result of: 

(a) The source or modification; and 

(b) General commercial, residential, industrial. and ri] other growth 
associated with the source or modification. 

(2) The owner or operator shall not be required to provide an analysis of the impact 

on vegetation having [w] significant commercial or recreational value. 

(3) The owner or operator shall provide an analysis of the air quality impact 

projected for the area as a result of general commercial, residential, industrial, and 

[*] other growth associated with the source or modification. 

(4) Visibility monitoring. 

(a) The cabinet may require monitoring of visibility in a Class I area impacted by the 

proposed new stationary source or major modincation using: 

(I) Human observations; 

(2) Teleradiometers; 

(3) Photographic cameras; 

(4) Nephelorneters; 

(5) Fine particulate monitors; or 

(0) Other appmpriate methods as specified by the U.S. EPA. 

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

pp[€&ifWk] 

(c) Visibility monitoring required by the cabinet in a Class I area shall be approved by 

the federal land manager. 

(d) Data obtained from visibility monitoring shall be made available to the mbinet, 

the US. EPA, and the federal land manager, upon request. 

Section 14. Sources Impacting class I Areas; Additional Requirements. (1) Notice 

to U.S. EPA and federal land managers. The cabinet shall provide; 
(a) Written notice to the U.S. €PA, the federal land manager, and the federal official 

charged with direct responsibility for management of lands within a Class I area of a 

permit application for a proposed major stationary source or major modification that may 

affect the Class I area. 

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

. . I. lndude a copy of all information relevant to the permit ap~lication; 

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

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

3. Include an analysis of the proposed source's anticipated jmpacts on visibility in the 

Class I area. 

(c) The cabinet shall also provide the federal land manager and other federal 

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

the materials used in making that determination, promptly after the cabinet makes it. 

The cabinet shall also not@ all affected federal land managers within thirty (30) days of 

receipt of an advanced nomcation of the permit application. 

(2) Federal land manager. The federal land manager and the federal official charged 

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

an affirmative responsibility to protect visibility and other air quality related values of the 

lands and to consider, in consuitation with the cabinet, if a proposed source or 

mod'ffion will have an adverse impact on those values. 

(3) Visibility analysis. 

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

which is provided within thirty (30) days of the notice and analysis required by 
subsection (I) of this section, which shows that a proposed new major stationary source 

or major modifition may have an adverse impact on visibility in a Class I area. 

(b) If the cabinet finds the analysis does not demonstrate to the cabinet's satisfaction 

that an adverse impact on visibility will result in the Class I area, the cabinet shall, In the 

public notice required in 401 KAR 52:100, either explain that decision or give notice as 

to where the explanation may be obtained. 

(4) Denial; impact on air quality related values. 

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

the cabinet that the emissions from a proposed source or modifition will have an 

adverse impad on the visibility and other air quality related values of those lands, even 

though the change in air quality resulting from emissions from the proposed source or 

modification will not cause or contribute to concentrations that will exceed the maximum 

allowable increases for a Class I area. 

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

su bsedion, the cabinet shall not issue the permit or permit revision. 

(5) Class 1 variances. 

(a) The owner or operator of a pmposed source or modification may demonstrate to 

the federal land manager that the emissions from the source or modification will not 

- have -1 adverse impact on the visibility or other air quality related values of lands 

located in a Class I area, even though the change in air quality resuiting from emissions 

from the source or modification will cause or contribute to concentrations that will 

exceed the maximum allowable increases for a Class I area as specified in Section 2(1) 

of this administrative regulation. 
(b) If the federal land manager concurs with the demonsttation specified in 

paragraph (a) of this subsection and [ke-se] certifies acwrdincrlv, the cabinet may, if the 

other applicable requirements of this administrative regulation are met, issue the permit 

or permit revision with emissions limitations [WtGa~e] necessary to assure that 

emissions of sulfur dioxide, particulate matter, and nhgen oxides will not exceed the 

maximum allowable increases over minor source baseline concentration for the 

pollutants as specified in Section 2(1) of this administrative regulation. 

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

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

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

constructed without exceeding a maximum allowable increase in sulfur dioxide 

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

demonstrate to the Governor of the Commonwealth of Kentucky that a vatlance will not 

adversely affect the visibility or other air quality related values of the area. 

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

if applicable, and subject to the federal land manager's concurrence, -1 

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

increase. 

(c) If a variance is granted, the cabinet shalt issue a permit or pennit revision to the 

source or modification under the requirements of 4111 KAR Chapter 52 if the other 

applicable requirements of this administrative regulation are met. 

(7) Variance by the governor with the President's concurrence. 

(a) If the Governor of the Commonwealth of Kentucky recommends a variance in 
which the federal land manager does not concur, the recommendations of the governor 

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

of America. 

(b) If the variance is approved by the President, the cabinet shatl issue a permit or 

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

applicable requirements of this administrative regutation are met. 

(8) Emissions limitations for presidential or gubernatorial variance. For a permit or 

permit revision issued pursuant to subsections (6) or (7) of this section, the [se&k&e] 

source or modification shall comply with the emissions limitations necessary to assure 

that: 

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

on which the other applicable maximum allowable increases are exceeded, cause or 

contribute to concentrations that will exceed the maximum allowable inasas& over the 

baseline concentration as specified in the following table; and 

" 

Maximum AIlowable Increase 

1 (Migrams per cubic meter) 

Period of LOW High 

~xposure I I I 

24-hour maximum 

I I J 

(b) Emissions shall not cause or conttibute to concentrations that exceed other 

3-hour maximum 

16 applicable maximum allowable increases for periods of exposure of twenty-four (24) 

36 62 

130 221 
hours or less for more than a total of eighteen (1 8) days that [nrki&t] are not necessarily 

consecutive during an annual period. 

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

of 401 KAR 52:100, [a&] 40 C.F.R. 51.166(qk, [€444%(@] and this administrative 

regulation in processing applications under this administrative regulation. 

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

subject to this administrative regulation who begins actual construction after September 

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

application submitted to the cabinet under this administrative regulation and 401 KAR 

52:020 or under the terms of an approval to construct. 

(2)(a) Approval to construct shall become invalid if construction: 

1. Is not commenced within eighteen (1 8) months after receipt of the approval; 

2. Is discontinued for a period of eighteen (I 8)months or more; or 

3. Is not completed within a reasonable time. 

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

demonstration [m] that an extension is justified. 

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

approved phases of a phased construction project; and 

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

projected and approved commencement date. 

(3) Approval to construct shalt not relieve an owner or operator of the responsibility 

to comply fully with 401 KAR Chapters 50 to 68 and other requirements of local, state, 

or federal law. 
(4) If a particular source or modification becomes a major stationary source or major 

modification solely by virtue of a relaxation in an enforceable limitation that was 

established after August 7,1980, on the capacity of the source or modification to emit a 

pollutant, Sections 8 to 16 of this administrative regulation shall apply to the source or 

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

modification. 

(@(a) The provisions of this subsection shall apply to pmjects at existing emissions 

units at a major stationary source other than projects at a 1-3 source with 

a PAL, if: 

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

modification may result in a significant emissions increase; and 

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

Section 1 (199Xb) [0&4 to calculate projected actual emissions. 

(b) Before beginning actual construction of a project specifii in paragraph (a) of this 

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

information: 

1. A description of the project; 

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

pollutant could be affected by the project; and 

3. A description of the applicability test used to determine that the project is not a 

major modificatiin for any regulated NSR pollutant, including: 

a. Baseline actual emissions; 

b. Projected actual emissions; 
I c. Amount of emissions excluded in calculating projected actual emissions and an 

2 explanation for why that amount was excluded; and 

3 d. Any applicable netting calculations. 

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

shall: 

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

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

(b)2 of this subsection; and 

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

calendar year basis for: 

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

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

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

at the emissions unit. 

15 (d)[&] If the emissions unit is an existing EUSGU, before beginning actual 

1 6 construction, the owner or omrator. 

17 I. Shall ~rovide a co~v of the information in ~aranra~h (b) of this subsection to the 

18 cabinet. but shall not be reauired to obtain a determination from the cabinet before 

19 bwinnincl actual construction: and [qwak 

20 

21 6t&m&b& 
2. Shall submit a report to the cabinet within sixty (60) days after the end of each 

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

subsection that remrts [wt-wt] the unit's annual emissions during the calendar year 

that preceded submission of the report. 

(e)l. For an existing unit other than an EUSGU, the owner or operator shall submit a 

report to the cabinet if: 

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

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

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

that regulated NSR pollutant; and 

b. The emissions differ from the preconstrudion projection as documented and 

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

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

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

subsection and shall contain the fotlowing: 

a. The name, address, and [aWeeaM] telephone number of the major stationary 

source; 

b. The annual emissions as calculated pursuant to paragraph (c) of this subsection; 

and 

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

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

documented and maintained under to this subsection available for dew upon request 

for inspection by the cabinet or the general public pursuant to 401 KAR 52:100. 

29 
Section 17. Envimnmental Impact Statements. If a proposed source or modification 

is subject to action by a federal agency that mav [wkhwgkt] necessitate preparation 

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

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

administrative regulation shall be coordinated with the broad environmental reviews 

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

reasonable. 

Section 18. Innovative Control Technology. (I) An owner or operator of a proposed 

major stationary source or major modification may make written reauest that the cabinet 

aeDmve a svstem of innovative control technoloav. [v . . 

-1 

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

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

technology if: 

(a) The proposed control system will not cause or contribute to an uneasonable risk 

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

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

redudin equivalent to that which would have been required under Section 8(2) of this 

administrative regulation by a date, specified [-] by the cabinet that is not 

later than four (4) years fmm the time of start-u~ or seven (7) wars from oermit 

issuance; [[ 

[I 

(c) The source or modification shall [w meet requirements equivalent to those in 
Sections 8 and 9 of this administrative regulation based on the emissions rate that the 

stationary source employing the system of innovative control technology shall [W] be 

required to meet on the date specified by the cabinet; 

(d) The source or modification shalt [MI not before the date specified by the 

cabinet: 

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

standard; or 

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

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

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

(f) All other applicable requirements including those for public partidpation have 

been met. 

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

technology if: 

(a) The proposed system fails by the specMed date to- achieve the required 

continuous emissions reduction rate; 

(b) The proposed system fails before the specMed date and contributes to an 

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

(c) The cabinet decides that the proposed system is unlikely to achieve the required 

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

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

emissions reduction within the specified time period or the appmval is withdrawn in 

accordance with subsection (3) of this section, the cabinet may allow the source or 
modification up to an additional three (3) years to meet the requirement for the 

application of BACT through use of a demonstrated system of control. 

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

permit for a stationary source or modification that [wkkh] contains conditions pursuant 

to 401 KAR 51:015 or [m] 51:016E may request that the cabinet rescind the 

applicable conditions. 

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

for the source or modification [MI was issued under this administrative 

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

regulation, may request that the cabinet rescind the permit or a particular portion of the 

permit. 

(2) The cabinet shall rescind a permit condition if requested and if the applicant can 

demonstrate to the satisfaction of the cabinet that this administrative regulation does not 

apply to the source or modification or to a potiin of the source or modfimtion. 

C





















7 r V. l 

81 

Section 20.f&] Ptant-wide Applicability Limit Provisions. The cabinet may approve 

the use of an actuals PAL (PAL) for an existing major stationary source if the PAL 

meets the requirements of this section. 

(1) General provisions. 

(a) An owner or operator may execute a project without triggering major NSR, if the 

source maintains its total source-wide emissions below the PAL level, meets the 

requirements in this section, and complies with the PAL permit. If these conditions are 

met, a project: 

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

2. Shall not have to be approved through Kentucky's major NSR program; and 

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

regulation concerning restrictions on relaxing enforceable emission IimitaPlons that a 

major stationary source used to avow applicability of the major NSR program. 

(b) Except as provlded under subparagraph (1 Ka)3 of this sedion, a major stationary 

source shall continue to comply with all applicable federal or state requirements, 

emissions limitations, and work practice requirements that were established prior to the 

effective date of the PAL. 

(2) Permit application requirements. The owner or operator of a major statiooary 
source shall submit the foliowing information to the cabinet for approval as part of an 

application for a permit or permit revision requesting a PAL: 

(a) A list of all emissions units at the source designated as small, sinnificant, or 

[s@dkmb~] major, based on their potential to emit; 

(b) Identification of the federal and state applicable requirements, emissions 

limitations, and work practice requirements that apply to each emissions unit; 

(c) Calculations of the baseline actual emissions for 'the emissions units with 

supporting documentation, including emissions associated with startup, shutdown, and 

[- malfunction; and 

(d) The calculation procedures the owner or operator proposes to use to convert the 

monitoring system data to monthty emissions and annual emissions based on a twehte 

(12) month rolling total for each month as required by subsection (12Xa) of this Won. 

(3) Establishing a PAL. The cabinet shall establish a PAL at a major stationary 

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

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

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

17 1. For each month during the PAL effective period after the first twelve (12) months 

1 8 of establishing a PAL, the owner or operator shall demonstrate [rsRew] that the sum of 

19 the monthly emissions from each emissions unit under the PAL for the previous twelve 

20 (12) consecutive months is less than the PAL as a twelve (12) month average, rolled 

21 monthly; and 

22 2. For each month during the first eleven (11) months from the PAL effective date, 

23 the owner or operator shall demonstrate [shew] that the sum of the preceding monthly 
emissions from the PAL effective date for each emissions unit under the PAL is less 

than the PAL. 

(b) The PAL shall be established in a PAL permit that: 

1. Meets the public participation requirements in subsection (4) of this section; and 

2. Contains all the requirements of subsection (6) of this section. 1-3 

(c) A PAL shall include fugitive emissions, to the extent quantifiable, from all 

emissions units that emit or have the potential to emit the PAL pollutant at the major 

stationary source. [same+] 

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

(e) Each PAL shall have a PAL effective period of ten (10) years. [MI 

(f) The owner or operator of a major stationary source with a PAL shall comply with 

the monftoring, recordkeeping, and reporting requirements of subsections (1 1) to (13) of 

this section for each emissions unit under the PAL through the PAL effectbe period. 

-1 

(g) Emissions redudins of a PAL pollutant that occur during the PAL effective 

period shall not be creditable as decreases for offsets under 40 C.F.R 51.165(a)(3)(ii), 

unless: 

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

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

(4) Public participation requirements. PALS for existing major stationary sources 

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

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

(a) Provide the public with notice of the proposed appmval d a PAL permit with at 
least a thirty (30) day period for submittal of public comment; and 

(b) Address all material comments before taking final action on a PAL permit or 

permit revision. 

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

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

actual emissions of the PAL pollutant for each emissions unit at the source during the 

chosen twentyfour (24) month period plus the applicable significant level for the PAL 

pollutant under the definition for "significantu in 401 KAR 51:001, Sectin l[w] or

under 42 U.S.C. 7401 -7671 Q, [#be+%&] whichever is lower. 

(b) In establishing a PAL level for a PAL pollutant, only one (1) consecutive twentyfour (24) month period shall be used to determine the baseline actual emissions for all 

existing emissions units. 

(c) A different consecutive twenty-four (24) month pertod may be used for each 

different PAL pollutant. 

(d) Emissions associated with units that were permanently shutdown after the 

chosen twenty-four (24) month period shall be subtracted from the PAL level. 

(e) Emissions from units for which actual construction began after the twenty-four 

(24) fn~nth period shall be added to the PAL led In an amount equal to the potential to 

19 emit of the units. 

20 (f) The cabinet shall specify a reduced PAL level in the PAL permit to become 

21 effective on the future compliance date of any applicable federal or state regulatory 

22 requirement that the cabinet is aware of prior to issuance of the PAL permit. 

23 (6) Contents of the PAL permit. The PAL permit shall contain the following 
I information: 

2 (a) The PAL pollutant and the applicable source-wide emissions lim'btion in tons per 

3 year; 

4 (b) The PAC permit effective date and the expiration date of the PAL or PAL effedive 

5 period; 

6 (c) Specification in the PAL permit that if a major stationary source owner or operator 

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

8 effective period, the PAL shall remain in effect until a revised PAL permit is issued by 

9 the cabinet; 

10 (d) A requirement that emissions calculations for compliance purposes include 

11 emissions from startups, shutdowns. and [-I malfunctions; 

12 (e) A requirement that, once the PAL expires, the major stationary source shall be 

13 re] subject to the requirements of subsection (8) of this section; 

14 (f) The calculation procedures that the major stationary source owner or operator 

15 shall use to oonvert the monitoring system data to monthly emissions and annual 

?6 emissions based on a twelve (12) month rolling total for each month as required by 

1 7 subsection (12Xa) of this section; 

4 8 (g) A requirement that the major stationary source owner or operator shall monitor all 

1 9 emissions units in accordance with the provisions in subsectiin (1 2) of this section; 

20 (h) A requirement that the owner or operator shall retain the records required under 

21 subsectiin (12) of this sedion on site. Records may be retained in an electronic format 

22 or other ~enerally-acce~table [-I format appmd by the cabinet; 

23 (i) A requirement for the owner or operator to submit the reports required under 
subsection (13) of this section by the required deadlines; and 

(j) Anv [8tkeF] requirements necessary to implement and enforce the PAL. 

(7) PAL effective period and reopening of a PAL permit. 

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

(b) The cabinet shall reopen a PAL permit to: 

1. Correct typographical or calculation errors made in setting the PAL; 

2. Reflect a more accurate determination of emissions used to establish the PAL; 

3. Reduce the PAL if the owner or operator of the major stationary source creates 

creditable emissions reductions for use as offsets under 40 C.F.R. 51 .I M(aK3Xli); or 

4. Revise the PAL to reflect an increase In the PAL according to subsection (10) of 

this section. 

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

1. Reduce the PAL to reflect newly applicable federal requirements with compliance 

dates after the PAL effective date; 

2. Reduce the PAL consistent with any [&w] requirement [#bat+] enforceable as a 

practical matter and imposed on the major stationary source under the SIP; and 

3. Reduce the PAL if the cabinet determines that a reduction is necessary to avoid 

causing or contributing to: 

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

b. An adverse impad on visibility or another air quali related value that has been 

identified for a federal Class I area by a federal land manager and for which information 

is available to the general public. 

(d) All permit reopenings shall be camed out under the public participation 
requirements of subsection (4) of this section except for permit reopenings to correct 

typographical or calculation of errors that do not increase the PAL level. 

(8) Expiration of a PAL. A PAL that is not renewed shall expire at the end of the PAL 

effective period. and [+wM-md] the requirements of this subsection shall then apply. 

(a) Each emissions unit, or each group of emissions units, that existed under the 

PAL shall comply with an allowable emissions limitations under a revised permit 

established as follows: 

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

proposed allowable emissions limitation for each emissions unit, or each group of 

emissions units, by distributing the PAL allowable emissions for the major stationary 

source among each of the emissions units that existed under the PAL. 

a. This proposal shall be submitted to the cabinet at least six (6) months before the 

expiration of the PAL permit but not sooner than eighteen (18) months before permit 

expiration. 

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

effective during the PAL effective period, as required under subsection (gxe) of this 

sectiorl, distribution of allowable emissions shall be made as if the PAL has been 

adjusted. 

2. The cabinet shall decide the date and procedure the owner or operator shall use 

to distribute the PAL allowable emissions. 

3. The cabinet shall issue a revised permit incorporating allowable limits fot each 

emissions unit, or each group of emissions units, as the cabinet determines is 

appropriate. 
(b) Each emissions unit shall comply with the allowable emissions limitation on a 

twelve (1 2) month rotling basis. The cabinet may approve the use of monitoring systems 

other than CEMS, CERMS, PEMS, or [WMhx] CPMS to demonstrate compliance 

with the allowable emissions limitation. 

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

equivalent to the level of the PAL emissions limitatin until the caMnet issues the 

revised pennit incorporating allowable. limits for each emissions unit or each group of 

emissions units. 

(d) A major modifition at the major stationary source shall be subject to major NSR 

requirements. 

(e) The major stationary source owner or operator shall continue to comply with any 

state or federal applicable requirements eliminated by the PAL that applied during or 

before the PAL effective period, except for those emissions limitations established 

pursuant to Section 1q4) of this administrative regulation. 

(9) Renewal of a PAL. 

(a) Public participation requirements. 

I. The cabinet shall follow the public participation procedures specffied in subsection 

(4) of this section in appmving a request to renew a PAL for a major stationary source. 

2. The cabinet shall provide a written rationale for the proposed PAL level for public 

review and comment. 

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

cabinet during the public review period. 

(b) Application deadline. 
1 I. A major stationary source owner or operator shall submit an application for 

2 renewal of a PAL at least six (6) months before the date of permit expiration but not 

3 earlier than eighteen (1 8) months before permit expiration. 

4 2. The deadline for application submittal shall ensure that the permit shall not expire 

5 before the permit is renewed. 

6 3. If a complete application for renewal is submitted within the timeframe spedfied in 

7 subparagraph 'I of this paragraph, the PAL shall continue to be effective until the 

revised permit with the renewed PAL is issued. 

(c) Application requirements. The application to renew a PAL pennit shall contain: 

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

2. A proposed PAL level; 

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

supporting documentation; and 

4. Any other information the owner or operator wishes the cabinet to consider in 

determining the appropriate level to renew the PAL. 

(d) PAL adjustment. 

1. A PAL shall not exceed the source's potential to emit. The cabinet shall adjust the 

PAL downward if a soum's potential to emit has declined below the PAL level. 

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

the baseline actual emissions for all emissions units at the source plus an amount equal 

to the significant level is equal to or greater than eighty (80) percent of the current PAL 

22 level, unless the sum is greater than the soum's potential to emit. 

23 3. If the sum of the baseline actual emissions for all emissions units at the source 
plus an amount equal to the significant level is less than eighty (80) percent of the 

current PAL level, the cabinet may set the PAL at a level that is determined to be: 

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

b. Appropriate considering the following factors: 

(i) Air quality needs; 

(ii) Advances in control technology; 

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

(iv) The cabinet's goal of promoting voluntary emissions reductions; 

(v) Cost effective emissions conhi alternatives; and 

(vi) Other factors as specificaliy identified by the cabinet in its written rationale for 

setting the PAL level. 

4. The cabinet shall not approve a renewed PAL level higher than the current PAL, 

unless the major stationary source has complied with the provisions of subsectbn (20) 

of this section. 

(e) The PAL shall be adjusted in.coniunction with [- PAL permit femwal 

or Tiie V permit renewal, whichever comes first, if: 

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

the PAL source occurs during the PAL effective period; and 

2. The cabinet has not already adjusted for [sclsk] requirement 

(1 0) Increasing a PAL during the PAL effectii period. The cabinet my increase a 

PAL missions limitation during the PAL effective period if the major Stationary source 

complies with the provisions of this subsection. 

(a) Application procedures. To request an increase in the PAL limit for a PAL major 
modification, the owner or operator of the major stationary source shall submit a 

complete application, which shall include: 

1. Identification of the emissions units contributing to the increase in emissions that 

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

2. Demonstration that the increased PAL, as calculated in paragraph (c) of this 

subsection, exceeds the PAL; and 

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

or major emissions unit shall be determined by conducting a new BACT analysis 

the amlication submittal, [[ ... ,] unless the emissions 

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

established within the preceding ten (10) years; 

b. If an emissions unit currently complies with BACT or LAER, the assumed control 

level for that emissions unit shall be equal to the current level of BACT or LAER for that 

emissions unit; and 

3. A statement that the increased PAL level shall be effective on the day any 

emissions unit that is part of the PAL major modification becomes operational and 

beglns to emit the PAL pollutant. 

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

major NSR permit for all emissions units contributing to the inctease in emissions for the 

PAL major rnodifilcation. 

1. A significant level shall not apply in deciding for which emissions units a major 

NSR permit shall be obtained; and 

2. Emissions units that obtain a major NSR permit shall comply with any emissions 
requirements resulting from the major NSR process, even though the units shall also 

become subject to the PAL or shall continue to be subject to the PAL. 

(c) Calculation of increased PAL. The cabinet shall calculate the new PAL as the 

sum of the allowable emissions for each modified or new emissions unit, plus the sum 

of the baseline actual emissions of the significant and major emissions units assuming 

application of BACT equivalent controls, plus the sum of the baseline actual emissions 

of the small emissions units. 

(d) Public notice requirement. The public notice requirements of subsection (4) of 

this section shall be followed during PAL permit revision for an increased PAL level. 

- 

(1 1 ) Monitoring requirements for PALS. 

(a) General requirements. 

1. Each PAL permit shall contain enforceable requirements for the chosen 

monitoring system that accurately determines plant-wide emissions of the PAL pollutant 

in terms of mass per unit of time; 

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

a. Approved by the cabinet ~ursuant to this subsedion; [eabk&] and 

b. Based on sound science and meet generally acceptable scientific pracedum for 

data quality and manipulation; 

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

requirements for admissibility in a judicial proceeding to enforce the PAL permit; 

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

monitoring approaches meeting the minimum requirements set forth in paregraph (b) of 

this subsection; 

-- - 
5. The cabinet may approve an alternative monitoring approach that meets the 

requirements of subparagraphs 1 to 3 of this paragraph; and 

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

shall render the PAL invalid. 

(b) Minimum performance requirements for approved monitoring approaches. If 

conducted in accordance with the minimum requirements in paragraphs (c) to (i) of this 

subsection, the following shall be acceptable monitoring approaches: 

1. Mass balance calculations for activities using coatings or solvents; 

2. CEMS; 

3. CPMS or PEMS; and 

4. Emission factors. 

(c) Mass balance calculations. An owner or operator using mass balance 

calculations to monitor PAL pollutant emissions from atiities using coatings or 

solvents shall: 

1. Provide a demonstrated means of validating the published content of the PAL 

pollutant [W] contained in or created by all materials used in or at the emissions 

unit; 

2. If the PAL pollutant cannot be accounted for in the process, assume that the 

emissions unit emits all of the PAL pollutant [Wt-k] contained in or created by any raw 

material or fuel used in or at the ernisdons unit; and 

3. If the vendor of the material or fuel from which the pollutant originates publishes a 

range, use the highest value of the published range of pollutant amtent to calculate the 

PAL pollutant emissions, unless the cabinet determines there is site-specific data or a 
site-speciftc monitoring program to support another pollutant content within the range. 

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

shall meet the following requirements: 

1. CEMS shaH comply with applicable performance specifications found in 40 C.F.R. 

Part 60, Appendix B; and 

2. CEMS shall sample, analyze, and record data at least every fifteen (15) minutes 

while the emissions unit is operating. 

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

poilutant emissions shall meet the foltowing requirements: 

1. The CPMS or the PEMS shall be based .on current site-spedf~c data 

demonstrating a correlation between the monitored parameter and the PAL pollutant 

emissions across the range of operation of the emissions unit; and 

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

record data at least every ffleen (15) minutes, or at another less frequent interval 

approved by the cabinet. 

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

pollutant emissions shall meet the following requirements: 

18 1. All emission factors shall be adjusted, if appropriate, to account for the degree of 

19 uncertainty or imitations in the factors' development; 

20 2. The emissions unit shall operate within the designated range of use for the 

21 emission fador, if applicable; and 

22 3. If technically practicable, the owner or operator of a significant emissions unit that 

23 relies on an emission factor to calculate PAL pollutant emissions shalt conduct 
validation testing to determine a site-specif~c emission factor within six (6) months of 

PAL permit issuance, unless the cabinet determines that testing is not required. 

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

without considering enforceable emissions limitations or operational restrictions for an 

emissions unit during any period of time there is no monitoring data, unless another 

method for determining emissions during such periods is specified in the PAL permit. 

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

between the monitored parameters and the PAL pollutant emissions rate at all operating 

points of the emissions unit, as an attemative to the requirements of paragraphs (c) to 

(g) of this subsection, in coniunction with [- permit issuance the cabinet 

shall: 

t . Establish default values for determining compliance with the PAL bad on the 

highest potential emissions reasonably estimated at operating points; or 

2. Determine that opetation of the emissions unit during operating conditions if 

[wb~] there is not a [rre] correlation between monitored parameters and the PAL 

poltutant emissions is a violation of the PAL 

(i) Revalidation. All data used to establish the PAL pollutant shatl be revalidated 

through pe&rmance testing or other scientiically-valid means approved by the cabinet. 

Validation testing shall occur at least once every five (5) years after issuance of the 

PAL. 

(1 2) Recordkeeping requirements. 

(a) The PAL permit shall require an owner or operator to retain a copy of all records 

necessary to determine compliance with any requirement of this section and of the PAL, 
+l including a determination of each emissions unit's twelve (12) month rolling total 

2 emissions for five (5) years from the date of the determination. 

3 (b) The PAL permit shall require an owner or operator to retain a copy of the 

following records for the duration of the PAL effective period plus five (5) years: 

I. A copy of the PAL permit application and any applications for revisions to the 

PAL; and 

2. Each annual certification of compliance pursuant to Title V and the data used to 

certify compliance. 

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

semiannual monitoring reports and prompt deviation reports to the cabinet in 

accordance with 401 KAR Chapter 52 that meet the following requirements: 

(a) Semiannual report. The semiannual report shall be submitted to the cabinet 

within thirty (30) days of the end of each reporting period and shall contain: 

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

2. Total annual emissions, in tpy, based on a twelve (12) month rolling total for each 

month in the reporting period recorded pursuant to subsection (12Xa) of this aectiin; 

17 3. All data used in calculating the monthly and annual PAL pollutant emissions, 

18 including any quality assurance or quality control data; 

19 4. A list of any emissions units modified or added to the major stationary source 

20 during the preceding six (6) month period; 

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

22 ' other than the time associated with zero and span calibration checks, and any 

23 corrective action following a deviation; 
6. A notification of permanent or temporary shutdown of any monitoring system 

including: 

a. The reason for the shutdown; 

b. The anticipated date that the monitoring system shall be fully operational or shall 

be replaced with another monitoring system; 

c. If applicable, a statement that the emissions unit monitored by the monitoring 

system continued to operate without the monitoring system; and 

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

according to subsection (1 l)(g) of this section that is included in the permit; and 

7. A signed statement by the responsible official, as defined by 401 KAR 51:001, 

Section 1(210), 1-1 certifying the truth, accuracy, and completeness of the 

information provided in the semiannuat report. 

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

reports of any deviation or exceedance of the PAL requirements, including periods 

monitoring is unavailable. 

1. A report submitted pursuant to 40 C.F.R. 70.6(a)(3)(iiiXB) shall satisfy the 

deviation reporting requirement; 

2. The deviation report shall be submitted within the time limits prescribed by 40 

C.F.R. 70.6(a)(3)(iii)(B); 

3. The deviation report shall contain the following information: 

a. The identification of the owner, the omrator, and the ~mit 

number; 

b. The PAL requirement that experienced the deviation or that was exceeded; 
c. Emissions resulting from the deviation or the exceedance; and 

d. A signed statement by the responsible official, as defined by 401 KAR 51:001, 

Section 1(210), 1-1 certifying the truth, accuracy, and completeness of the 

information provided in the report. 

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

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

method. 

(1 4) Transition requirements. 

(a) After the US. EPA approves the Kentucky SIP revisions for the PAL provisions 

published in 67 Fed. Reg. 80186, December 31, 2002, the cabinet shall only issue a 

PAL that complies with the requirements of this section. 

(b) The cabinet may supersede a PAL that was established before Aunust 10.2008, 

I4 1-1 with a PAL that complies with 

15 therequirementsofthisadministrativereaulation.[~ 

16 

17 


. Date Leonard K. Peters, Secretary 

Energy and Environment Cabinet 
PUBLIC HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this 

administrative regulation shall be held on October 28,2009, at 10:OO a.m. (local time) in 

Conference Room 201 B on the first floor of the Division for Air Quality at 200 Fair Oaks 

Lane, Frankfort, Kentucky. Individuals interested in being heard at this hearing shall 

notify this agency five (5) workdays prior to the hearing of their intent to attend. If no 

notification of intent to attend the hearing is received by that date, the hearing may be 

canceled. 

This heating is open to the public. Any person who wishes to be heard shall be given an 

opportunity to comment on the proposed administrative regulation. If you do not wish to 

be heard at the public hearing, you may submit written comments on the proposed 

administrative regulation. Written comments shall be accepted until close of business on 

November 2, 2009. Send written notification of intent to be heard at the public hearing 

or written comments on the pmposed administrative regulation to the contact person 

listed bebw. 

The hearing facility is accessible to persons with disabilities. Requests for reasonable 

accommodations, including auxiliary aids and services necessary to participate in the 

hearing, may be made to the contact person at least five (5) workdays prior to the 

hearing. 

CONTACT PERSON: Laura Lund, Environmental Technologist II, Division for Air 

Quality, 1" Floor, 200 Fair Oaks Lane, Frankfort, Kentucky 40601, telephone (502) 564- 

3999, ex-. 4428, fax (502) 5644666, and electronic mail Laura_Lund@ ky.gov. 
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT 

Administrative Regulation 8: 401 KAR 51:017 

Contact person: Laura Lund, Environmental Technologist II 

(1 Provide a brief summary of: 

What this administrative regulation does: This administrative regulation 

provides for the prevention of significant deterioration (PSD) of ambient air 

quality, and applies to major stationary sources and major modifications 

constructing in areas designated as either attainment or unclassified. 

The necessity of this administrative regulation: This administrative 

regulation is necessary in order to continue to receive full delegation of 

authority for the federal PSD program in Kentucky. 

How this administrative regulation conforms to the content of the 

authorizing statutes: KRS 224.10-100 authorizes the cabinet to 

promulgate administrative regulations for the prevention, abatement, and 

control of air pollution. KRS 224.10-100(26) mandates the preservation of 

dean air resources while ensuring economic growth. This regulation 

conforms to the statutes because it is no more stringent than the federal 

mandate. 

How this administrative regulation currently assists or will assist in 

the effective administdon of the statutes: This administrative 

regulation is no more stringent than the federal mandate, codified in 40 

C.F.R. 51.1 66. 

(2) If this Is an amendment to an existing administrative regulatlon,'provide a 

brief summary of: 

(a) How the amendment will change this existing admin'btmtive 

regulation: This amendment revises the list of exempted major stationary 

sources codified in 40 C.F.R Part 51, and the list of major sources codified 

in 40 C.F.R. Part 70, as they relate to PSD, NSR, and Title V applicability. 

The amendment removes the existing standards and requirements for 

clean units (CU) and pollution control projects (PCP) that have been 

vacated at the federal kvel in a D.C. Court of Appeab decision. This 

amendment requires major sources emitting more than 100 tons per year 

of nitrogen oxides (NOx) to conduct an ambient air qualrty analysis for 

ozone. 

(b) The necessity of the amendment to this administrative regulatkm: 

These regulatory revisions are necessaty in order to implement changes 

in the KY State Implementation Plane (SIP) in response to changes in the 

federal rules and to pmvide the applicable sources with the appropriate 

regulatory mechanism to submit an orone air quality analysis. 

(c) How the amendment conforms to the content of the authorizing 

statutes: Kentucky's federally-approved PSD SIP provides the permitting 

and enforcement authority delegated from the US. €PA to the 

Commonwealth. 
(d) How the amendment will assist in the effective administration of 

statutes: This administrative regulation amendment is modeled after the 

federal regulations. 

List the type and number of individuals, businesses, organizations, or state 

and local governments affected by this administrative regulation. The 

amendment revises the applicability of major sources by specifically excluding 

"chemicat process plants" that produce ethanol through a natural fermentation 

process. In addition, sources meeting standards and requirements for CU and 

PCP, and sources emitting more than 100 tons per year of NOx, are affected by 

this administrative regulation. 

Provide an assessment of how the entities identifled in question (3) wlll be 

impacted by either the implementation of this administrative regulation, if 

new, or by the change if it is an amendment: 

(a) List the actions that each of the regulated entities identified in 

question (3) will have to take to comply with this administrative 

regulation or amendment: Regulated entities shall continue to comply 

with this administrative regulation. This regulation includes an 

amendment that affects existing or proposed facilities that pmduce ethanol 

through a natural fermentation process as it specifically excludes them, 

under the component term "chemical process plants," from having to 

comply with the PSDINSR requirements. Sources will no longer be 

required to meet standards and requirements for CU and PCP. In 

addition, major sources emitting more than 100 tons per year of NOx wilt 

be required to conduct an ambient air quality analysis for ozone. 

(b) In complying with this administrative regulation or amendment, how 

much wlll it cost each of the entities identifled in question (3): There 

are no additional costs involved in compliance with this regulation. 

(c) As a result of compliance, what Benefits will accrue to the entities 

identifled in question (3): Ethanol facilities, as defined in C.F.R. 51.166 

and this administrative regulation, are no longer included under the 100 

tons per year PTE limit for major source categories under the PSDINSR 

rules. As a result of not having to apply additional emission controls, 

growth of the ethanol industry will increase. 

Pmvkle an estimate of how much it will cost the administrative body to 

implement this administrative regulation: 

(a) Initially: The Cabinet will not incur any additionai costs for the 

implementation of this regulation. 

(b) On a continuing basis: There will not be any additional continuing costs 

for the implementation of this regulation. 

What is the source of the funding to be used for the implementation and 

enforcement of this administrative regulation: The Cabinet's current 

operating budget will be used for the implementation and enforcement of this 
regulation. 

(7) Provide an assessment of whether an increase in fees or funding wlll be 

necessary to Implement this administrative regulation, if new, or by the 

change if it is an amendment. No increase in fees or funding is necessary to 

implement this regulation. 

(8) State whether or not this administrative regulation established any fees or 

directly or indirectly increased any fees. This regulation does not establish, 

nor does it directly or indirectly increase any fees. 

(9) 'TERING: Is tiering applied? Yes. The applicability and compliance 

requirements that are tiered in this administrathre regulation are modeled after 

the federal PSD and NSR rules. 
FEDERAL MANDATE ANALYSIS COMPARISON 

I. Federal statute or regulation constituting the federal mandate. 42 U.S.C. 7401- 

7671q provides the statutory mandate codified in 40 C.F.R. Part 51.166, as 

amended in 72 Fed. Reg. 24077, May 1,2007, and in 72 Fed. Reg. 32528, June 13, 

2007. 

2. State compliance standards. The state compliance standards are found in KRS 

224.10-I 00(5). 

3. Minimum or uniform standards contained in the federal mandate. The federal 

PSD mandate requires sources described in Section 1 of this administrative 

regulation to demonstrate that any construction or modification will not cause 

emissions to increase by specific incremental amounts; that the source's emissions 

will not cause or contribute to a violation of the National Ambient Air Quali 

Standards (NAAQS); and that the source will use best available control technology 

(BACT) to control emissions. 

The amendment to this administrative regulation excludes "chemical process plantsw 

that produce ethanol by a natural fermentation process in the revised definition of 

major statlonary source. Further revisions include the removal of clean unit (CU) 

and pollution control project (PCP) requirements because they have been vacated at 

the federal level by a decision fmm the D.C. Court of Appeals. This amendment 

requires major sources emitting more than 100 tons per year of nltrogen oxides 

(NOx) to conduct an ambient air quality analysis for ozone. 

4. Will this administrative regulation impose stricter requirements, or additional 

or different responsibilities or requirements, than those requised by the federal 

mandate? No. This regulation is modeled after the federal regulations. 

5. Justffication for ttre imposition of the stricter standard, or additional or 

different responsibilities or requirements. Stricter standards and requirements 

are not imposed. 
FISCAL NOTE ON STATE OR LOCAL GOVERNMENT 

Administrative Regulation #: 401 KAR 51 :017 

Contact person: Laura Lund, Envlmnmental Technologist H 

Does this administrative regulatron relate to any program, service, or 

requlmments of a state or local government (including cities, counties, fire 

departments, or school districts)? Yes. 

What units, parts or divisions of state or local govemment (including cities, 

counties, fire departments, or school disbicts) will be impacted by this 

administrative regulation? The Division for Air Quality will continue to 

implement and enforce the Prevention of Significant Deterioration (PSD) program 

in the Commonwealth. 

Identify each state or federal statute or federal regulation that requires or 

authorizes the action taken by the administrative regulation. KRS 224.10- 

100(5), 42 U.S.C. 7401-7671q. 

Estimate the effect of thls administrative regulation on the expenditures 

and revenues of a state or local government agency (including cities, 

counties, fire departments, or schoot districts) for the first full year the 

administrative regulation is to be in effect. 

How muck revenue will this administrative regulation generate for 

the state or local government (including cities, counties, fire 

departments, or school districts) for the first year? This regulation 

generates no revenues. 

How much revenue will thls administrative regulation generate for 

the state or local government (including cities, counties, fire 

departments, or school districts) for subsequent yeam? This 

regulation generates no revenues. 

How much will it cost to administer this program for the first year? 

The Cabinet's existing operating budget continues as the source of 

funding for the implementation of this program. 

How much will it cost to administer this program for subsequent 

years? There will be no additional costs for administering the program in 

subsequent years. 

Note: If specific dollar estimates cannot be determined, provide a 

brief narrative to explain the fiscal impact of the administrative 

regulation. 

Revenues (+I-): There is no known effect on current revenues. 

Expenditures (+I.): There is no known effect on current expenditures. 

Other Explanation: There is no further explanation. 
ENERGY AND ENVIRONMENT CABINET 

Department for Environmental Protection 

Division for Air Quality 

(Amendment) 

401 KAR 51 :052. Review of new sources in or impacting upon nonatiainment areas. 

RELATES TO: KRS 224.20-IOO(51, 224.20-1 10,224.20-920,40 C.F.R Part 51, 

Subpart 1, 51.165, 51.166[0), 52.21, [&XH++] 60, 61, 81, Subpart D, 81.318, 42 

U.S.C. 7401-7671q. . .. ... I1 s I 

STATUTORY AUTHORITY: KRS 224.1 0-1 OOM, [4C C.F.!?. 52 .%&I 42 U.S.C. 

7401 -7671 a. EO 2009-538 -1 

NECESSITY, FUNCTION, AND CONFORMITY: KRS 224.1 0-1 00 authorizes 

(-1 the cabinet t] to promulgate 

administrative regulations for the prevention, abatement and control of air pollution. EO 

2009-538. effective June 12. 2009, establishes the Enemy and Environment Cabinet. 

This administrative regulation establishes requirements for the construction or 

modification of stationary sources within, or impacting upon, areas where the national 

ambient air quality standards have not been attained. The pmvisions of this 

administrative regulation are neither different nor more stringent than the federal 

regulation 40 C.F.R. 51 -1 65. 

Section 1. Applicability. This administratibe regulation shall apply to the 

construction of a new major stationary source or g [any] project that is a major 
modification at an existing major stationary source, which commences construction after 

September 22, 1982, and locates in or impacts upon an area designated nonattainment 

under 42 U.S.C. 7407(dXl )(A)(i). 

(I) The provisions of this administrative regulation relating to visibility protection 

shall also apply to major sources or major modifications in nonattainment areas that 

potentially have an impact on visibility in a mandatory Class I federal area. 

(2) Applicability tests for projects. Except as provided in subsection (3) 

[-1 of this section, a project shall be a major modificatiin for a 

regulated NSR pollutant only if the project causes a significant emissions increase and 

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

subsection. 

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

determine if a significant emissions increase will occur for the applicable type of unit 

being constructed or modified according to sub&ragraphs 1 to 3 (41 of this paragraph. 

1. Actual-to-projected actual applicability test for projects that only invohe 

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

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

emissions and the baseline actual emissions for each existing emissioris unit equals or 

exceeds the significant amount for that pollutant. 

2. Actual-to-potential test for projects that involve only constnrction of new 

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

projected to occur if the sum of the potential to emit from each new emissions unit 

following completion of the project equals or exceeds the significant amount for that 
pollutant. 

. . 3. 

----41 Hybrid test for projects that involve multiple types of emissions units. A 

significant emissions increase of a regufated NSR pollutant shall be projected to occur if 

the sum of the emissions increases for each emissions unit, using the methods 

specified in subparagraphs 1 and 2 [MI of this paragraph as applicable for each 

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

(b) Priir to beginning actual construction and after completing the applicable test 

in paragraph (a) of this subsection, the owner or operator shall determine for each 

regulated NSR pollutant if a signifint net emissions 

401 KAR 51:001, Section l(1441 and (218). [4&4€+] 

(3) For a plant-wide applicability limit (PAL) for 

increase will occur pursuant to 

a regulated NSR pollutant at a 

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

comply with the applicable requirements of Section 11 [MI of this administrative 

regulation. 

tip: 

-1 

Section 2. Initial Screening Analyses and Determinertion of Applicable 

Requirements. (1) Review of all sources for emissions limitation compliance. 

(a) The cabinet shall examine each proposed major new source and pmposed 
major modification to determine if the source or modification will meet all applicable 

emissions requirements in the Kentucky State Implementation Plan (SIP) and 40 C.F.R. 

Parts 60 and 64. 

(b) If the cabinet determines from the application and all other available 

information that the proposed source or modification will not meet the applicable 

emissions requirements, the permit to construct shall be denied. 

(2) Review of specified sources of air qualm@ impact. 

(a) The cabinet shall determine if a proposed major stationary source or major 

modification will be constructed in an area designated as nonattainment pursuant to 42 

U.S.C. 7407(d)(I)(A)(i) for a pollutant for which the stationary source or modification is 

major. 

(b) If a designated nonattainment area is projected to be an attainment area as 

part of an approved control strategy by the new source start-up date, &sets shall not be 

required if the new source will not cause a new violation. 

(3) Fugitive emissions sources. Sections 4 and 10 of this administrative 

regulation shall not apply to a source or modification that will be a major stationary 

source or major modification only if fugitive emissions, to the extent quantifiable, are 

considered in calculating the potential to emit of the stationary source or modification 

and the source does not belong to one (1) of the following categories: 

(a) Coal cleaning plants with thermal dryers; 

(b) Kraft pulp mills; 

(c) Portland cement plants; 

(d) Primary zinc smelters; 

4 
1 

2 

3 

4 

5 day; 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

I6 

17 

(e) Iron and steel mills; 

(f) Primary aluminum ore reduction plants; 

(g) Primary copper smelters; 

(h) Municipal incinerators capable of charging more than 250 tons of refuse per 

(i) Hydrofluoric, sulfuric, or nitric add plants; 

(j) Petroleum refineries; 

(k) Lime plants; 

(I) Phosphate rock processing plants; 

(m) Coke oven batteries; 

(n) Sulfur re&very plants; 

(0) Carbon black plants, furnace process; 

(p) Primary lead smelters; 

(q) Fuel conversion plants; 

(r) Sinterlng plants; 

(s) Secondary metal production plants; 

(t) Chemical pmcess plants, except ethanol ~raduction fadlities produdn~l 

18 ethanol by natural fermentation- under the North American Industry Classification 

1 9 Svstem (MAICS) codes 3251 93 or 31 21 40; [pkwtsi] 

20 (u) Fossil-fuel boilers, or combination of fo&\-fuel boilers, totaling more than 250 

21 million BTUs per hour heat input; 

22 (v) Petroleum storage and transfer units with a total storage capacity exceeding 

23 300,000 barrels; 
(w) Taconite ore processing plants; 

(x) Glass fiber processing plants; 

(y) Charcoal production plants; 

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

heat input; or 

(aa) Another stationary source category which, as of August 7, 1980, is being 

regulated under 42 U.S.C. 741 1 or 7412. 

Section 3. Sources Locating in Designated Attainment or Unclassifiable Areas 

that will Cause or Contribute to a Violation of a National Ambient Air Quality Standard. 

(1) This section shall apply only to new major stationary sources or new major 

modifications that will locate in designated attainment or unclassifiable areas, pursuant 

to 42 U.S.C. 7407(d)(1 )(A)@) or (ili), if the source or modification will cause impacts that 

exceed the significance levels, as listed in the table in this subsection, at a totality that 

does not or will not meet the national ambient air quality standards. 

Pollutant 

Sulfur 

Dioxide 

PMo 

Nitrogen 

Dioxide 

Annual 

Average 

1.0 ug 

/m 

1.0 ug 

/m3 

Carbon 

Monoxide 

1.0 ug 

/m3 

Averaging Time 

- 

1 I 

1- 

Hour 

- 

- 

24- 

Hour 

5 ug 

/m3 

------- 

5ug 

/m3 

.- - 

- 

2 

wm3 

8- 

Hour 

- 

- 

- 

3- 

Hour 

25 

Ug 

/m3 

- 

- 

0.5 

mdm3 

- 
(2) Sources to which this section applies shall meet the requirements in Section 

*A), (2) and (4) of this administrative regulation and may be exempt from Section 4(3) 

of this administrative regulation. 

(3) For sources of sulfur dioxide (SO2), particulate matter, and carbon monoxide 

(CO), the determination that a new major source or major modification will cause or 

contribute to a violation of a national ambient air quality standard shall be made on a 

case-by-case basis using the source's allowable emissions in an approved atmospheric 

simulation model listed in 40 C.F.R. Part 51. Aopendix [app~k] W. "Guideline on Air 

Quality Models". 

(4) For sources of NOx, the initial determination that a new major source or major 

modification will cause or contribute to a violation of the national ambient air quality 

standard for nitrogen dioxide (Na) shall be made using an approved atmospheric . 

simulation model assuming all the nitric oxide emitted is oxidized to N02 by the time the 

plume reaches ground level. The initial concentration estimates may be adjusted if 

adequate data are available to account for the expected oxidation rate. 

(5) For ozone, sources of VOCs or NOx locating outside a designated ozone 

nonattainment area shalt be presumed to not have a -1 signifiint impact on the 

designated nonattainment area. If ambient monitoring indicates that the area of source 

location is in fact nonattainment, the source shall be permitted pursuant to [w 

. . this administrative regutation and 401 KAR 52920 until the 

area is designated nonattainment pursuant to 42 U.S.C. 7407(dX'l )(A)(@ 

(6) The determination that a new major source or major modification will cause or 

contribute to a violation of a national ambient air quality standard shall be made as of 
the start-up date. 

(7) Applications for major new sources and major modifications locating in 

attainment or unclassifiable amas, the operation of which will cause a new violation of a 

national ambient air quality standard but will not contribute to an existing violation, may 

be approved only if the following conditions are met: 

(a) The new source shall: 

I. Meet an emissions limitation; 

2. Meet a design, ooerational. or [epWwdw] equipment standard; or 

3. Control existing sources so that the new soufce will not cause a violation of a 

national ambient air quality standard. 

(b) The new emissions limitations for the new and existing sources affected shaW 

be state and federally enforceable in accordance with Section 6 of this administrative 

reguiation. 

Section 4. Sources Locating in a Designated Nonattainment Area. This section 

shall apply to a new major stationary source or major modification that will be 

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

7407(d)(l )(A)(i) for a pollutant for which the stationary source or modification is major. 

Approval to construct may be granted only if the conditions of this section are met. 

(1) The new major source or major modification shall be required to meet an 

emissions limitation that specifies the lowest achievable emissions rate (LAER) for the 

source. 

(2) The applicant shall demonstrate that all existing major sources owned or 

operated by the applicant, or an entii controlling, controlled by, or under common 
control with the applicant, in the Commonwealth of Kentucky are in compliance with all 

applicable emissions limitations and standards specified in Tile 401, Chapters 50 to 65, 

[a] and 40 C.F.R. Parts 60 and 61 and 42 U.S.C. 7401-7626, or are in compliance 

with an expeditious state and federally enforceable compliance schedule or a court 

decree establishing a compliance schedule. 

(3Xa) Except for VOCs or NOx emissions, emissions from existing sources in the 

affected area of the proposed new major source or modification, whether or not under 

the same ownership, shall be reduced or [RX&&+F] offset, so that there will be 

reasonable further progress toward attainment of the applicable national ambbnt air 

quality standard (NAAQS). Only those transactions in which the emissions being offset 

are from the same criteria pollutant category shall be accepted. 

(b) The ratio of total emissions reductions of VOCs or NOx to total increased 

efnissions of the same air pollutant shall be at least the ratio indiated for the following 

ozone nonattainment area classifications: 

1. For marginal nonattainment areas, at least 1 .I to 1; 

2. For maderate nonattainrnent areas, at least 1 .I5 to 1; 

3. For serious nonattainment areas, at least 1.2 to 1 ; 

4. For severe nonattainment areas, at least 1.3 to 1; 

5. For extreme nonattainment areas, at least 1.5 to 1. 

(4) The emissions reductions shall pmvide a positive net alr quality benefit in the 

affected area. 

(a) Atmospheric simulation modeling shall not be required for VOCs and NOx. 

(b) Except as provided in Section 3(5) of this administrative regulation, 
compliance with subsection (3) of this section and Section 5(3)(e) of this administrative 

regulation shall be adequate to meet this condition. 

(5) The proposed major stationary source or major modification shall indude in 

the application for a construction permit an analysis of the alternative sites, sizes, 

production processes, and environmental control techniques for the proposed source, 

which demonstrates that benefits of the proposed source significantly outweigh the 

environmental and social costs imposed as a result of its location, construction, or 

mod if ication. 

Section 5. Determining Credit for Emissions Offsets. (1) The baseline for 

determining credit for emissions reductions or offsets shall be: 

(a) The emissions limitations in effect when [aMke-UFFle] the application to 

construct or modify a source is filed; or 

(b) The actual emissions of the source from which offset credit is attained if: 

1. The demonstdon of reasonable further progress and attainment of ambient 

air quality standards for the SIP was based on actual emissions; or 

2. The SIP does not contain an emissions limitation for that source or source 

category. 

(c) Baseline actual emissions as defined in 401 KAR 51 :001, Section 1 (20), shall 

not be used for determining the baseline for emissions offsets. 

(2) Credit for emissions offsets. Credit for emissions offset may be allowed for 

existing control that goes beyond the control required under 401 KAR Chapters 50 to & 

(3) General provisions for calculating offset values. 
(a) Offset calculations shall be made on a pound-per-hour basis if all facilities 

involved in the emissions offset calculations are operating at their maximum or allowed 

production rate. 

(b) Offsets may be calculated on a tons-per-year basis if baseline emissions for 

existing sources providing the offsets are calculated using the actual annual operating 

hours for the previous two (2) year period. 

(c) If the cabinet requires certain hardware controls instead of an emissions 

limitation, baseline allowable emissions shall be based on actual operating conditions 

for the previous two (2) year period in conjunction with the required hardware controls. 

(d) If the emissions limitations required by the cabinet allow greater emissions 

than the uncontrolled emissions rate of the source, emissions offset credit shall be 

allowed only for control below the uncontrolled emissions rate. 

(e) The owner or operator of a new or modtorfied major stationary source shall 

comply with any offset requirement in effect under this administratiwe regulation to 

increase emissions of an air pollutant by: 

1. Obtaining emissions reductions of the air pollutant from the same source or 

other sources in the same nonattainment area; or 

2. From sources in another nonattainment area if: 

a. The other area has an equal or higher nonattainment classification than the 

area in which the source is located; and 

b. Emissions from the other area contribute to a violation of the national ambient 

air quality standard in the nonattainment area in which the source is located. 

(4) Calculating offsets an [w] applicabk emissions limitation does not exist.