1 pmposed'newlocation andthe probable duration of operationat the new location. b. Notice shall 

### be given to the cabinet not less 

### than ten (10) days 

### in advance of the 

### 2 

# - 3 proposed relocation unless a different time duration 

### Is previously approved by 

### the 4 cabinet pursuantto this subsection. 

### [~Aiwk] 5 (e) The 

### source or modification 

### was not subject to this administrative regulationwith 

### 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 necessaryunderthe applicable SIP before July 31, 1987; 2-Commenced constructionwithin eighteen (18) monthsafterJuly 31, 1987; and 3. Did not 

### discontinueconstructionfor a periodof eighteen (18) months 

### or mote and completedconstructionwithin a reasonable periodof 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 designatedas nonattainmentpursuant

### 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 pollutantfrom 

### the source, or 

### the net 

### emissions increase of that pollutant

### from a modification: (a)Will not 

### impacta Class I 

### area or an areawhere 

### an applicable 

### increment is 

### known to be violated; and (b) Will betemporary. (4) Sections 9, 11, 

### and 13 of this 

### administrative regulation, as applicable 

### to a maximum allowable 

### increasefor 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 regulationfor a particular pollutant, 

### if: 

### (a) The 

### emissions increase 

### of the pollutant

### from the 

### new source orthe net 

### emissions increase of 

### the pollutant

### from the modification

### will cause 

### air quality 

### impacts In an area, which are less

### thanthe 

### amountslisted inthe followingtable; 

### or

Averaging

averageNitrogen 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 I00tons peryea1

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 

### concentrationsof the pollutant 

### in 

### theareathat the 

### source or modification

### will affect are less 

### than 

### the concentrations 

### listed 

### in 

### the table in paragraph 

### (a) of this subsection,

### orthepollutant is 

### not listed inthe 

### 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 increasefor nitrogenoxides, 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 KentuckySIP; 

### 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 

### increasesfor PMlotook 

### effect as part of 

### Kentucky'sSIP; and 

### (b) The cabinet subsequently 

### determined that the application as submitted before that datewas complete. (8)(a) The 

### cabinet 

### may determine that the requirementsfor 

### air quality monitoring 

### of PMIO

### inSection 11 of this administrative regulation shall not applyto 

### a particular 

### source

or modification, if: 1

- 

### The owner or operatorof the source or modification

### submitted an application

### fora pennit

### underthis section on or beforeJune 1,1988; and 2. The cabinet subsequently determinesthat the application as submitted 

### beforethat 

### date 

### was complete, except for the requirements for monitoring particulate 

### matter specified 

### in Section 11of this administrative regulation. (b) The requirements 

### for air quality monitoring 

### of PMto 

### in Section I1 of this administrative regulation shall applyto a particular source 

### or modification ifthe 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] laterthan December I, 1988. 

### 1.The 

### data shall have 

### been gathered

### overat 

### least

### the periodfrom 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 

### monitoringdata over a shorter 

### period, which may 

### not to be 

### less than 

### four(4) 

### months, the 

### data that 

### Section 11 

### of 

### this administmtive regulation requiresshalt have 

### been gathered over

### that shorter period. (9) The 

### requirements of Section 9(2) 

### of this administrative regulationshall not apply to 

### a stationary source or modificationfor 

### a maximumallowable increasefor PMlo, if: 

### (a) The 

### owner or operator of 

### the source or 

### modificationsubmitted 

### 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 subsequentlydetermined 

### that the applicationas 

### submitted before that date was 

### complete. (b) 

### Instead, the requirementsof 

### Section 9(2) 

### shall apply 

### for the maximum 

### allowabk increasesfor TSP as 

### ineffect 

### on the 

### daythe 

### applicationwas 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 pollutantforwhichthe 

### source hasthe potentialto emit in significant amounts. (3) A 

### major modfficationshall 

### apply BACT: 

### (a) 

### For each regulated NSR 

### pollutant that results 

### in 

### a significant net emissions 

### increaseat

### the 

### source; 

### and (b) For 

### each proposed 

### emissions unit at 

### which 

### a 

## net emissions 

### increase h 

### the pollutant omrsas 

### a result of 

### a physical 

### change 

### or change In

### the method 

### of operationof the unit. (4) For phased constructionprojects: (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 constructionof 

### each independent phase ofthe 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 BACTdeterminationfor the source. Section 

### 9. Source ImpactAnalysis. The owner or operator of the proposed source

or modification shall demonstrate that allowable emissions increasesfrom 

### the proposed

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

### or reducttons, including secondary emissions, shall not 

### cause or contributeto air pollution 

### in violationof: (1)A nationalambient air qualitystandard 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." MwndixA." 

# m] (2) If an air quality model specified in 40 C.F.R. Part 51, Appendix 

### W, is inappropriate,

### the model may be modifiedor another model 

### substituted. 

### (a) The 

### useof 

### a modified

### or substitute 

### modelshall 

### be:I 1. Subject

### to noticeand opportunityfor 

### public

### comment 

### under401 

### 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 comparabilityof air quality modets. Section 11. Air QualityAnalysis. (1 ) Preapplicationanalysis. 

### (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 

### inthe area that the 

### majorstationarysource or major modification

### wiU 

### affectfor 

### each of the following: 

### 1. For a 

### source, each pollutant that the 

### source wilt have the potential to 

### emit in 

### a significantamount; 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, otherthan 

### nonmethanehydrocarbons, 

### for which a standard exists, 

### the analysis 

### shall contain continuous 

### air quality 

### monitoring data gatheredto 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 gatheredover 

### 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 lessthan four (4) months. (e) For analysis of volatile organic compounds, 

### the owner or operator of 

### a proposed major stationary source or 

### major modificationwho satisfies all conditions 

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

### ozone insteadof providing preconstructiondata as required inthis 

### 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 

### modificationshall



### 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 bythe cabinet

### pursuantto 40 C.F.R Part 58. ADpendixA. (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 

### necessaryto 

### determine the effect 

### emissions from the Stati01W'y

source or 

### modification may 

### have, or are having, on air quality inan 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 

### satisfythe air 

# I quality analysis requirementsofthis section.

### Section 12. Source Information. 

### The owner 

### or operator 

### of a proposed 

### source or modificationshall 

### submitto the cabinet all information 

### necessaryto 

### perform an analysis



### or make a 

### determination required underthis 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 schedulefor 

### consbudinof

### thesource 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 

### necessaryto 

### determinethat 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 meteomlogicaland 

### topographicaldata necessary

### to estimatethe 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 vegetationthat 

### will occur 

### as a result

### of: (a) 

### The 

### source or modification;

### and 

### (b) General commercial, residential, 

### industrial. and 

# ri] other growth

### associatedwith 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 [*] othergrowth associated with 

### the source or modification. (4)Visibility monitoring. 

### (a) The cabinet may require 

### monitoringof 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 methodsas 

### specified bythe U.S. 

### EPA. (b) The method 

### selected shall be determined 

### on acase-by-case basis bythe 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 

### thefederal land manager, upon request. Section 14. 

### Sources Impacting class 

### I 

### Areas; Additional 

### Requirements. (1) 

### Notice to 

### U.S. 

### EPAand federal land managers.

### The cabinetshall 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 

### Iarea of a permit applicationfor 

### a proposed 

### majorstationary

### source or major modification

### that may affectthe Class I

### area. (b) Notice promptlyafter receiving

### the permit application.The notice shall:



## . . I.

lndudea copy

### of all information relevantto 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 applicationfor 

### a permitto construct; 

## and 3. 

### Includean analysis of the 

### proposed 

### source's anticipatedjmpacts onvisibility inthe Class Iarea. (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 affectedfederal land managerswithin

### thirty (30) days of receiptof 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 responsibilityto protectvisibility 

### and other air quality

### related values of the 

### lands and 

### to consider, in consuitation with the cabinet, 

### if a proposed source 

### or mod'ffionwill have an adverse impacton 

### 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 bysubsection 

### (I) of this 

### section, which 

### showsthat 

### a proposed 

### new major stationary

### source 

### or major modifition

### may have an 

### adverse impact

### on visibility in 

### a Class 

### Iarea. 

### (b) Ifthe cabinetfinds the analysis does notdemonstrateto

### the cabinet's satisfaction that an adverse impact

### on visibility will 

### result inthe Class Iarea, the cabinet shall, 

### Inthe public 

### notice required 

### in 401 

### KAR 52:100, either explain that decision or give notice as to 

### where theexplanation may

### be obtained. (4) Denial; impacton air quality related values. 

### (a) The federal land manager of lands located in 

### a Class 

### Iarea may demonstrate 

### to the cabinet that the emissions 

### from a proposed source or modifition will have 

### an adverse impadon 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 

### increasesfor a 

### Class

### I area. (b) If the 

### cabinet 

### concurs with the demonstration 

### specified 

### in paragraph 

### (a) of this



### subsedion, the cabinetshall not issue

### the permitor permit revision. (5) 

### Class 1variances. 

### (a) 

### The owneror operator

### of a pmposed 

### source or modification

### may demonstrateto 

### the 

### federal land manager that the 

### emissions from the 

### source or modification 

### will 

# not have

### -1 adverse impact

### on the visibilityor other air quality relatedvalues of lands 

# - located

### in a Class 

### Iarea, 

### even though the 

### change 

### inair quality resuiting

### from emissions 

### from the 

### source or modification will cause 

### or contribute to concentrations that will 

### exceed the maximum allowable 

### increasesfor 

### a Class 

### I 

### area 

### as specified in 

### Section2(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]

### certifiesacwrdincrlv, 

### the cabinet

### may,if 

### the other applicable requirementsof 

### 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 pollutantsas specified in Section 2(1) of this administrative regulation. (6) Sulfur dioxide variance bygovernor

### with federal land manager'sconcurrence. (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

### orother air quality relatedvalues of

### the area. (b) The governor, after consideration of thefederal 

### land manager's recommendation, if

applicable, 

### and subject to 

### thefederal 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

### ofthis administrative regulationare 

### met. (7) 

### Variance bythe governor

### withthe 

### 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 transmittedto 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 

### accordancewith the requirements of 401 KAR Chapter 52, if the 

### other applicable 

### requirementsof this administrative regutationare 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 

### necessaryto 

### assure that: (a) 

### Emissionsof 

### sulfur dioxidefrom the source 

### or modification shall not, during 

### a day

on 

### which the other applicable 

### maximum allowable 

### increases 

### are exceeded, 

### cause or 

### contributeto 

### concentrationsthat will exceed the maximum allowable inasas& over 

### the 

### baselineconcentration

### as specified in

### the following table; and "MaximumAIlowable Increase 

# 1 (Migramspercubic 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 

### lessfor morethan 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 regulationin processing applications 

### underthis administrative 

### regulation. Setiin 16. Source 

### Obligation. (1) An owner or operator of 

### a 

### sourceor modification subject to this administrative regulationwho begins actual construction after September 22, 1982, 

### shall construct and operate 

### the source 

### or modification 

### in accordancewith 

### the application submitted 

### to the cabinet under this administrative regulation 

### and 401 KAR 52:020

### or underthe terms of 

### an approvalto construct. (2)(a) 

### Approvalto 

### constructshall become invalid ifconstruction: 

### 1. Is

### not commencedwithin 

### eighteen (1 8) 

### months after 

### receiptof the 

### approval; 

### 2. Isdiscontinuedfor a period

### of eighteen 

### (I 8) monthsor more; or 

### 3. Is not completedwithin a 

### reasonable time. (b) The 

### cabinet may extend the eighteen (18) month period 

### upon a satisfactory demonstration 

# [m] that an 

### extension 

### isjustified. 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 projectedand 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,



### orfederal 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 modificationto 

### 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 otherthan projectsat 

### 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 projectedactual 

### emissions. (b) Before beginningactual construction

### of a project

### specifii in paragraph 

### (a) of this subsection, the 

### owneror operator shall document and maintaina 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 applicabilitytest 

### used to determine that the project is not a major modificatiinfor 

### any regulated NSR pollutant, 

### including:



### a. Baselineactual emissions; b. Projected actual emissions;

### I 

### c. Amount 

### of emissions 

### excluded in 

### calculating projected actual 

### emissions and 

### an 

### 2 explanationforwhy 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 calendaryear basisfor:

a. Five(5) years 

### following resumption of 

### regularoperations after 

### the change; 

### or b. Ten (10) 

### years following resumption of regular operations 

### after the change if the project 

### increasesthe design capacity

### or 

### potentialto 

### 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 

### bwinninclactual 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 peryear, 

### 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 informationthat 

### the 

### owneror 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 

### dewupon 

### request 

### for inspection

### by 

### the cabinet orthe 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 reauestthat 

### 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 

### operationorfunction; (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 

# [wmeet requirements equivalent to 

### those inSections 

### 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 requiredto 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. Impactan area inwhich an applicable increment 

### is known to be violated; (e) Section 14 of this administrative regulation relating to Class I 

### areas has been 

### satisfiedfor all periodsduring the lieof 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 riskto public 

### health, welfare, or 

### safety; or 

### (c) The cabinet decidesthat the proposed system 

### is unlikelyto achieve the required levelof controlor 

### to protectthe 

### 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 

### BACTthrough 

### 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 satisfactionof 

### the cabinet 

### that this 

### administrative regulationdoes not applyto 

### the source or modification

### orto 

### a potiinof

### the source or modfimtion. 

### C[7 r V. l



### 81 Section 

## 20.f&] Ptant-wideApplicability Limit 

### Provisions. The cabinet may approve the 

### use 

### of an actuals PAL 

### (PAL) for an existing 

### major stationary 

### source if

### the PAL 

### meets

### the requirementsof 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 

### inthis section, 

### and complies 

### with the PAL 

### permit. If 

### these conditions 

### are met, a project: 1. 

### Shall not be 

### considered 

### a major modificationfor 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 

### majorstationary 

### source 

### used to 

### avow applicabilityof the 

### major NSR program. (b) Except

### as provlded undersubparagraph (1

### Ka)3 of this 

### sedion, a majorstationary

source shall 

### continue to 

### comply 

### with all applicable federal or 

### state requirements, emissions limitations, 

### and 

### work practice requirementsthat 

### were established prior

### to the 

### effectivedate ofthe PAL. (2) 

### Permit application requirements. 

### The owner or operator of a 

### major 

### statiooarysource shall submit the foliowing information to the cabinet for approval 

### as part of 

### an applicationfor 

### a permitor 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 potentialto emit; (b) Identification of the federal and state applicable requirements, emissions limitations, 

### and work practice requirementsthat applyto 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 owneror 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 monthas required bysubsection(12Xa) of this Won. (3) Establishing a PAL. The cabinet shall establish 

### a PAL 

### at a 

### major stationary

source 

### inafederally 

### enforceable permit pursuant

### tothe requirements

### of this 

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

### is enforceable 

### as a practical 

### matterfor the entire majorstationary

### source. 17 1. For 

### each month during 

### the 

### PAL effective period 

### after the first 

### twelve (12) months 

### 18 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 

### PALshall 

### be established in a PAL permit

### that: 1. Meets

### the public participation requirements in 

### subsection(4) 

### of this section; and 2. 

### Containsall the 

### requirementsof 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 PALshall have a PAL 

### effective period of ten (10)years. 

## [MI (f) 

### The owner or operator of a major stationary 

### sourcewith a PAL shall comply with the 

### monftoring, recordkeeping, and reporting requirements

### of subsections (11)

### 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 

### reductionswill 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 

### atleasta thirty (30) day periodfor submittal

### of public comment; and 

### (b) Address all material comments before taking final action 

### on a 

### PAL permit or permit revision. (5) 

### Settingthe 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) 

### consecutivetwentyfour (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 amountequalto 

### the potentialto 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 

### requirementthat 

### the cabinet 

### isaware of 

### prior

### to issuanceof the 

### PAL permit. 

### 23 

### (6) Contents 

### of the 

### PAL 

### permit. 

### The PAL permit shall contain the followingI 

### information: 

### 2 (a)The 

### PAL pollutant

### and the applicable 

### source-wide emissions lim'btion intons per 3 year; 4 (b)The 

### PAC permit 

### effective date and 

### the expiration date of

### the PALor PALeffedive 5 period; 6 

### (c) Specification 

### inthe 

### PAL permitthat if 

### a major

### stationarysource 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 

### emissionsfrom 

### startups, shutdowns. and 

## [-I malfunctions; 12 (e) A 

### requirement that, once 

### the PAL 

### expires, the 

### major stationary source shall be 13 

# re]subject 

### tothe requirementsof 

### subsection (8) 

### ofthis 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; 

### 48 (g) A 

### requirementthat 

### the major

### stationarysource 

### owner or operator shall monitorall 1

9 

### emissions units in accordancewith 

### the provisions insubsectiin(1 2) 

### of this section; 20 (h) 

### A requirementthat the 

### owner 

### or operator shall retain

### the records 

### required 

### under 21 

### subsectiin (12) of 

### this sedion

### on site. 

### Records may be 

### retained 

### in 

### an 

### electronicformat 

### 22 or

### other ~enerally-acce~table 

## [-I format appmdby

### the cabinet; 23 

### (i) 

### A requirement 

### for the 

### owner or operator 

### to 

### submit the reports 

### required 

### undersubsection (13) of this section by

### the required deadlines; 

### and (j)

### Anv [8tkeF]requirements 

### necessary

### to implement and enforce

### the PAL. 

### (7) PALeffective period

### and reopeningof a PAL permit. 

### (a)A PALeffective period shall beten (10) years. 

### (b)The cabinet shall reopen a PAL permitto: 1. Correcttypographicalor calculation

### errors made insetting the PAL; 2. Reflecta

### more accurate determination of emissions usedto establishthe PAL; 3. 

### Reduce the PAL if the owner or operator of the major stationary source creates creditable emissions reductionsfor use as offsets under40 C.F.R. 51 .I M(aK3Xli); or 4. Revisethe PAL to reflect 

### an increase In 

### the PAL according to subsection (10) of this section. (c) The cabinet may reopenthe PAL permit,during the PAL effective period, to: 

### 1. Reducethe PALto reflect 

### newly applicable federal requirementswith compliance dates afterthe PAL effectivedate; 2. Reduce

### the PAL 

### consistentwith any 

### [&w]requirement 

### [#bat+] enforceable 

### as a practical matter and imposedon the 

### majorstationary source underthe 

### SIP; 

### and 

### 3. Reduce the 

### PAL ifthe 

### cabinet determines 

### that 

### a reduction 

### is necessaryto avoid 

### causing or contributingto:



### a. A 

### NationalAmbientAir Quality

### Standard (NAAQS) or 

### PSD 

### incrementvblation; or b. An adverse impad on visibility 

### or another air 

### quali related value that has 

### been 

### identifiedfor 

### a federal Class 

### Iarea by 

### a federal land manager

### and for which 

### information is availableto 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 typographicalor calculation of

### errorsthat 

### do not increase

### the 

### PAL level. (8) 

### Expirationof 

### a PAL. A PALthat 

### is not 

### renewed shall 

### expire at the end of the PAL effectiveperiod. 

### and [+wM-md] 

### the requirements of 

### this subsection shallthen 

### 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 underthe 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 PALallowableemissions. 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 (12) month rotling basis. The cabinet may 

### approvethe 

### use of monitoring

### systems other than CEMS, CERMS, 

### PEMS, or 

### [WMhx]CPMS to demonstrate compliance with the allowableemissions limitation. (c) The source shall continue to comply with a source-wide, multiunitemissions 

### 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 modifitionat 

### the major stationary source shall 

### be 

### subjectto 

### major NSR requirements. (e) The major stationary 

### source owner or operator shall continue to complywith 

### 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 

### pursuantto 

### Section 1q4)of this administrative regulation. (9) Renewalof a PAL. (a) Public participation requirements. 

### I.

The cabinet 

### shall follow the public participation 

### proceduresspecffied 

### insubsection (4) of this section inappmving a requestto renewa PALfor a majorstationary source. 

### 2. The cabinet shall provide a

### written rationale for 

### the proposed PAL level for public 

### reviewand 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 

### earlierthan eighteen (1 8) 

### months before 

### permitexpiration. 4 2. The 

### deadline for 

### applicationsubmittal shall ensure 

### that the 

### permit shall not expire 5 

### before the permit is renewed. 6 

### 3. If a 

### complete application

### for renewal is 

### submittedwithin the 

### timeframe spedfied 

### in 7 subparagraph 'I 

### of 

### this paragraph, the PAL 

### shall continue to be 

### effective until 

### the revised permitwith 

### the renewed PAL is issued. (c) 

### Application requirements.The applicationto 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 

### levelto renewthe PAL. 

### (d) PAL 

### adjustment. 1. A PAL 

### shall not exceed the 

### source's potentialto emit. The 

### cabinet shall adjust

### the 

### PALdownward if 

### a soum's potentialto emit 

### hasdeclined below

### the PAL level. 2. The 

### cabinet

### may renewthe PAL 

### at

### the same level

### as

### thecurrent PAL ifthe 

### 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 greaterthan 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 

### sourceplus an 

### amount equal to 

### the significant level is 

### less than eighty (80) percent of 

### the current 

### PAL level, 

### thecabinet 

### mayset 

### the PAL at 

### a level that is determined to 

### be:



### a. More representativeof 

### the source's 

### baseline

### actual emissions; or b. Appropriate considering

### thefollowing factors: (i)Air quality

### needs; (ii)Advances 

### incontroltechnology; (iii) Anticipated 

### economic growth 

### inthe area of the source; (iv) The cabinet's goalof promotingvoluntary emissions reductions; (v) Cost effectiveemissions conhialternatives; and (vi) Other factors as specificaliy identified by the cabinet in its written rationale for settingthe 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.coniunctionwith [- PAL 

### permit femwal

or 

### TiieV permit 

### renewal,whichever comesfirst, if: 1. The compliance date for 

### a state or federal applicable requirement that applies to 

### the PAL

### source occurs duringthe PAL effective period; and 2. The cabinet 

### has notalready

### adjusted for 

### [sclsk]requirement (1

0) Increasing 

### a PAL 

### during the 

### PAL effectii period. 

### The cabinet 

### my increase a 

### PAL 

### missionslimitation 

### during 

### the PAL effective period 

### if the 

### major Stationary 

### source complies

### with the provisions

### of this subsection. 

### (a) Application 

### procedures. To 

### request an 

### increase inthe 

### 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 contributingto the 

### increase in emissions 

### that

causethe 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 controlthat 

### resultsfrom 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 establishedwithin 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 permitfor 

### all emissions units contributingto 

### the inctease 

### in emissions

### forthe 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 

### emissionsrequirements resulting from the major 

### NSR 

### process, even though the units shall also become 

### subjectto the 

### PALor shall continueto 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 befollowed during PAL permit revisionfor 

### an increased PAL level. 

## - (11 ) Monitoring requirementsfor PALS. 

### (a) General requirements. 1. 

### Each PAL permit shall contain enforceable requirements for the 

### chosen monitoring system that 

### accuratelydetermines plant-wide emissions of 

### the PAL pollutant 

### in terms of

### mass per unit of time; 2. A monitoringsystem authorized for use inthe PAL permit shall be:



### a. Approved 

### bythe 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 admissibilityin ajudicial proceeding

### to enforce 

### the 

### PALpermit; 4. 

### The PAL monitoring system 

### shall employ 

### one (1) or 

### more of 

### the 

### four (4) general 

### monitoringapproaches 

### meetingthe 

### minimum requirements set forth 

### in paregraph(b) of this subsection;

-- -5. The cabinet may 

### approve an 

### alternative monitoring 

### approach that meets 

### the requirementsof subparagraphs 1to 3of

### this paragraph; and 6. Failure to 

### use a monitoring 

### system that meets 

### the requirements of this 

### section shall renderthe PAL invalid. (b) Minimum performance requirements for approved monitoring approaches. If conducted in accordancewith the minimum requirements in paragraphs (c) to (i) of this subsection, thefollowingshall 

### be acceptable monitoring 

### approaches: 1. 

### Mass balance calculationsfor 

### 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 solventsshall: 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 unitemits all 

### of the PAL pollutant 

### [Wt-k] contained in or created by any 

### raw material or

### fuel used inor at the ernisdons unit; 

### and 3. 

### If

### the vendor of the 

### materialorfuel 

### from which 

### the pollutant originates publishes

### a range, 

### usethe highestvalue 

### of the 

### published range 

### of pollutant 

### amtentto 

### calculatethe PAL pollutant 

### emissions, unless 

### the cabinet determines 

### there 

### is site-specific data 

### or asite-speciftc monitoring program to support another pollutantcontentwithin 

### the range. 

### (d) CEMS. An owner 

### or operator using CEMS to monitor PAL pollutant emissions shall 

### meetthefollowing 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 

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

### PAL poilutantemissions shall meetthe 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 bythe cabinet. (f) 

### Emission factors. An owner or 

### operator 

### using emission factors to monitor PAL pollutant emissions shall 

### meetthe following requirements: 18 

### 1. All 

### emission factors shall be 

### adjusted, if appropriate, to account for the degree of 19 uncertaintyor 

### imitations inthe factors' development; 

### 20 2. The emissions unit shall 

### operate within the designated range of use for 

### the 21 emissionfador, 

### ifapplicable; and 

### 22 

### 3. Iftechnically 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 restrictionsfor an emissions unit during any period of 

### time there 

### is 

### no monitoring data, 

### unless another methodfor determining emissionsduring such periods is specified 

### inthe 

### PAL permit. (h) If an owner or operator of 

### an emissions unit cannot demonstrate 

### a 

### correlation between the monitored parametersand 

### the PAL pollutantemissions rate at alloperating 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 isa

### violation of the PAL (i) 

### Revalidation. All data 

### used to 

### establish the 

### PAL pollutant shatl be revalidated 

### through pe&rmance 

### testing 

### or other scientiically-validmeans 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 operatorto 

### retain 

### a copy of all records 

### necessarytodetermine 

### compliancewith 

### any requirementof 

### this 

### section and 

### ofthe 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 recordsfor 

### the durationof the 

### PALeffective 

### period

### plusfive (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 52that

### 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 identificationof owner and 

### operator 

### and the permit 

### number; 2. Total annual emissions, intpy, based on a twelve (12) month rolling total

### for each 

### month inthe 

### reporting period recorded pursuantto subsection(12Xa) of 

### thisaectiin; 17 

### 3. All 

### data used in calculating 

### the monthly and annual 

### PAL pollutant emissions, 18 includingany qualityassurance or quality control 

### data; 19 

### 4. A 

### list 

### of any emissions units modified or added to the major 

### stationary source 

### 20 during the precedingsix 

### (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 

### actionfollowing 

### a deviation;6. 

### A notification of permanent 

### or temporary shutdown of any monitoring system including:

a. The reasonfor 

### the shutdown; 

### b. The anticipated date that the monitoringsystem shall 

### be fully operational 

### or shall be replacedwith 

### another monitoringsystem;

c. If applicable, 

### a statement that the emissions unit monitored by the monitoring system continuedto operate without 

### the monitoringsystem; 

### and d. The calculation of the emissions 

### of the pollutant 

### or the number determined 

### according

### to subsection (1l)(g) of this 

### section that is included inthe 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 

### inthe 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 isunavailable. 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

### thefollowing information:



### a. The 

### identification 

### of the owner, the omrator, 

### and the ~mit number; 

### b. The PAL requirementthat experiencedthe deviation orthat 

### was exceeded;c. Emissions resultingfrom the deviationor 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 inthe report. (c) Revalidation results. The owner or operator shall submit to the cabinetthe results 

### of any revalidation

### test or methodwithin 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 PALthat complieswith the requirementsof this section. 

### (b) The cabinet may supersede a PALthat 

### was established beforeAunust 10.2008,

I4 

### 1-1 with 

### a PAL that complies with 15 therequirementsofthisadministrativereaulation.[~ 16 17

# . Date Leonard

### K. Peters, Secretary 

### Energy and EnvironmentCabinetPUBLIC HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this administrative regulation shall 

### be held on October 28,2009, at 10:OO a.m. (localtime) in Conference Room 201 Bonthe first floorof the Divisionfor 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. Ifno notification of intent to attend the hearing is received by that date, the hearing may 

### be canceled. This heating 

### is opento 

### the public. Any 

### personwho 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. Writtencomments shall be accepted until close of businesson November 2, 2009. Send written notificationof 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 

### necessaryto 

### 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, Kentucky40601, telephone (502) 564- 3999, ex-. 4428,fax (502) 5644666, and electronic mail Laura_Lund@ky.gov.

### REGULATORY 

### IMPACT

### ANALYSIS 

### AND TIERING 

### STATEMENT Administrative Regulation8:

### 401 

### KAR 51:017 Contact person: Laura Lund, Environmental Technologist II (1 Providea briefsummary of: What this administrative regulation does: 

### This administrative regulation providesfor the preventionof significant deterioration (PSD) of ambient air quality, and applies to major stationary sources 

### and major 

### modifications constructing 

### inareas 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 authorityfor

### 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) mandatesthe preservationof 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 briefsummary of: (a) How the amendment will change this existing admin'btmtive regulation:This amendment revises the list of exempted major stationary sources codified in40 C.F.R Part 51, and the list of major sources 

### codified in40 C.F.R. Part 70, asthey relateto PSD, NSR, 

### and TitleV 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 100tons per year 

### of nitrogen oxides (NOx) to 

### conduct an ambient air qualrty analysis for ozone. (b) 

### The necessityof 

### the amendment to this administrative regulatkm: 

### These regulatory revisions 

### are necessaty in 

### order to implement 

### changes in

### the KY State ImplementationPlane (SIP) in response to changes inthe federal 

### rules and to pmvide the applicable sources with the appropriate 

### regulatorymechanism to submit an oroneair qualityanalysis. 

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

### statutes: 

### Kentucky's federally-approved PSD SIP providesthe 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. Listthe type and numberof 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 100tons 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 bythe 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 amendmentthat affects existing or proposedfacilities 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 100tons per 

### year of NOx 

### wilt be requiredto conduct an ambient air quality analysis for ozone. 

### (b) In complying 

### with this administrative regulation

### or amendment, 

### how muchwlll it cost each of the entities identifled inquestion (3): There are no additional costs involvedincompliancewith 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 industrywill increase. 

### Pmvkle 

### an estimate of 

### how much it 

### will cost 

### the administrative 

### body 

### to implementthis administrative regulation: 

### (a) Initially: The Cabinet will not incur any additionai 

### costs for the implementation

### ofthis 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 thisregulation. (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 

### orfunding is 

### necessaryto implementthis regulation. (8) State whether 

### or not this administrative 

### regulationestablished any fees or directly 

### or indirectly 

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

### increaseanyfees. (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

### MANDATEANALYSIS COMPARISON I. 

### Federal statute 

### or regulation 

### constitutingthe 

### 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 pollutioncontrol project (PCP) requirementsbecausethey have beenvacated 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 

### responsibilitiesor requirements,than 

### those requised bythe federal 

### mandate? No. This regulation is modeledafter 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, EnvlmnmentalTechnologist

### 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 (includingcities, 

### 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 

### inthe 

### 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 ineffect. How muckrevenue 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 

### regulationgenerates 

### 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 

### forthe implementationof 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 nofurther 

### explanation.ENERGY

### AND ENVIRONMENTCABINET Departmentfor Environmental Protection Division

### for Air Quality 

### (Amendment) 401 

### KAR 51:052. 

### Reviewof new

### sources inor impacting upon nonatiainmentareas. 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 224.10-1 

## OOM, [4C C.F.!?. 

### 52

## .%&I 42 U.S.C. 7401-7671

### a. EO2009-538 

### -1 NECESSITY, FUNCTION, AND CONFORMITY: KRS 224.10-1 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 regulation40 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 majormodification at 

### an existing major stationarysource, 

### which commences construction

### after September22, 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 potentiallyhave an impact on visibility in 

### a mandatory Class Ifederal 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 ifthe 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 constructedor 

### modified according to sub&ragraphs 1to 

## 3 (41 ofthis 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 exceedsthe 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 thatpollutant.



# . . 3.



## ----41 Hybrid test for projects that involve multiple types of emissions units. A significant emissions increase of a regufatedNSR 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 

### [MIof this paragraph as applicable for 

### each emissionsunit, equals

### or exceeds

### the significant amount

### forthat pollutant. (b) Priirto 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(1441and (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 [MIof 

### this administrative regulation. 

### tip: 

## -1 Section 2. Initial Screening 

### Analyses and Determinertion 

### of Applicable 

### Requirements. (1) Reviewof 

### all sourcesfor emissions limitationcompliance. 

### (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 

### inthe 

### 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 

### permitto 

### construct shall be 

### denied. (2) Reviewof 

### 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 pursuantto 

### 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 bythe 

### newsource start-up date, &sets shall not 

### be required ifthe 

### newsource will 

### notcause 

### a newviolation. (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 belongto one (1)of

### thefollowing

### categories: (a) Coal cleaning plants

### withthermal dryers; (b) Kraft pulp 

### mills; (c) 

### Portland 

### cement 

### plants; (d) 

### Primary

### zinc smelters;

41 2 3 

### 4 5 day; 6 7 8 9 10 11 12 13 14 15 I6 17 (e) Iron and steel mills; (f) Primaryaluminum ore reduction 

### plants; (g) Primarycopper 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 

### morethan 

### 250 21 million 

### BTUs per hour heat input; 

### 22 

### (v) Petroleum storage and 

### transfer units with 

### a total storage capacity exceeding 

### 23 

### 300,000barrels;

### (w) Taconite ore processing plants; 

### (x) Glassfiber processing plants; (y) Charcoal production plants; (2)Fossil fuel-fired 

### steam electric 

### plants

### of morethan 250 million 

### BTUs 

### per hour 

### heat input; or 

### (aa) Another stationary source category 

### which, 

### as of August 

### 7, 1980, 

### is being regulated under42 U.S.C. 7411or 7412. Section 3. 

### Sources Locating in 

### Designated Attainment or Unclassifiable Areas 

### that

## will Cause or Contribute to a Violation 

### of a NationalAmbient 

### 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), ifthe source or 

### modificationwill cause impactsthat 

### exceed the 

### significance levels, 

### as listed 

### in

### the table inthis 

### subsection, at a totality that does not orwill not meet 

### the nationalambientair quality standards.

Pollutant

Sulfur Dioxide

PMo Nitrogen Dioxide Annual Average

1.0 

### ug 

### /m

1.0 

### ug /m3

Carbon Monoxide 1.0 

### ug /m3 AveragingTime



# -

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 inan 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 initialdetermination that a new 

### majorsource 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 allthe nitric

### oxide emitted is

### oxidized to 

### N02 bythe 

### time 

### the plume 

### reaches ground level. The initial concentration estimates may be 

### adjusted if adequate 

### data 

### are availableto account

### forthe expected 

### oxidation 

### rate. (5) 

### For ozone, sources of VOCs or 

### NOx locating outside a designated 

### ozone nonattainment area shalt 

### be presumedto not have a 

## -1 signifiint impact on

### the designated nonattainment area. If 

### ambient monitoring indicatesthat 

### 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 nonattainmentpursuantto 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 ofthe start-up 

### date. (7) 

### Applications 

### for major new sources and major modifications locating in 

### attainmentor unclassifiableamas, the 

### operationof which will 

### cause a 

### newviolation 

### of 

### a national ambient air 

### quality standard but will not contributeto an existing 

### violation, may 

### be 

### approved only ifthe following 

### conditions 

### are met: (a)The 

### new source 

### shall: I.

Meet 

### an emissions 

### limitation; 2. Meeta

### design, ooerational. or

### [epWwdw] equipment 

### standard; or 3. Control existing sources so 

### that the 

### new soufce will not 

### cause a violation of a 

### nationalambient air qualitystandard. (b) The 

### new emissions 

### limitationsfor 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. Approvalto 

### construct 

### may be 

### granted 

### only if the 

### conditions ofthis 

### section are 

### met. (1) The 

### new major 

### source or major modification shall 

### be required to meet 

### an emissions limitationthat 

### 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 

### commoncontrol with the 

### applicant, in

### the Commonwealth of 

### Kentucky are 

### in compliance 

### with all applicable emissions limitationsand standards specified in

### Tile 401, Chapters 

### 50to 

### 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) Exceptfor VOCs or 

### NOx emissions, emissionsfrom existing sources inthe 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 inwhich 

### 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 indiatedfor the following

ozone nonattainmentarea classifications: 1. For marginal nonattainment

### areas, at least 1.I to 1; 2. For maderate nonattainrnentareas, at least 1.I5to 1; 3. For serious nonattainmentareas, at least 1.2 to 1 ; 

### 4. For

### severe nonattainmentareas, at least 

### 1.3 to 1; 5. For

### extreme nonattainmentareas, at least 1.5 to 1. 

### (4) The emissions 

### reductionsshall 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 adequateto 

### meetthis

### condition. (5) The proposed major stationary 

### source or major 

### modificationshall 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

### ification. Section 5. 

### Determining Credit for 

### Emissions Offsets. (1) 

### The baseline for determining credit for emissions reductions or offsetsshall be: 

### (a) The 

### emissions limitations in effect 

### when 

### [aMke-UFFle]the application to constructor modify 

### a 

### source isfiled; 

### or (b)

### The actualemissions of 

### the sourcefromwhich offsetcredit isattained if: 1. 

### The demonstdon of reasonable further progress and 

### attainment of ambient air quality 

### standardsfor the SIP

### was basedon

### 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 determiningthe 

### baselinefor emissions offsets. (2)Credit

### for emissions 

### offsets. Credit for emissions 

### offset may be allowed for existing control

### that goes beyond

### the control 

### requiredunder401 

### KAR Chapters

### 50 to 

### &

(3) 

### General provisionsfor 

### 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 productionrate. (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 

### hoursfor 

### the previoustwo (2) year period. (c) Ifthe 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 conjunctionwith 

### 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 allowedonlyfor control belowthe 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 emissionsof an air pollutant by: 1. Obtaining emissions reductions of 

### the air pollutant 

### from the 

### same source or other 

### sources in

### the 

### samenonattainmentarea; or 2. 

### Fromsources inanother nonattainment area if:

a. The other area has an equal or higher nonattainment classification 

### than the

area inwhich the 

### source is located; and 

### b. 

### Emissionsfrom the other 

### area contribute

### to 

### a violation 

### of the 

### nationalambient air 

### quality

### standard 

### inthe nonattainment

### area inwhich 

### the source is located. 

### (4) Calculating 

### offsets 

# an [w] applicabk 

### emissions limitation does 

### not exist.