### REGULATORY IMPACT ANALYSIS 

## AND TIERING STATEMENT

Administrative Regulation #: 

### 401 KAR 51:001 Contact person: Laura Lund, Environmental Technologist 

### II

(1) 

### Provide a briefsummary of: What this administrative regulation does: This administrative regulation defines the terms used in401 KAR Chapter 51. The necessity of this administrative regulation: This administrative regulation provides clear and consistent definitions for terms used in 401 KAR Chapter 51. How this administrative regulation conforms to the content of the authorizing statutes: The statutory authority for this regulation is given in KRS 224.10-100(5), which provides the cabinet the authority, power, and duty to prevent and control air pollution. KRS 224.10-lOO(26) requires the cabinet to issue regulations that are no more stringent than federal requirements. The definitions contained in this administrative regulation are not more stringent or otherwise different than the correspondingfederal definitions. How this administrative regulation currently assists or will assist in the effective administration ofthe statutes: This administrative regulation assists the public and the regulated community by providing clear and consistent definitions for terms used in 401 KAR Chapter 51.
(2) 

### If this is an amendment to an existing administrative regulation, provide a brief summary of: (a) How the amendment will change this existing administrative regulation: This amendment revises definitions to reflect amendments made to the New Source Review (NSR) program at the federal level. The Prevention of Significanf Deterioration and Title 

### V Greenhouse Gas Tailoring Rule (Tailoring Rule), published as a final rule on June 3, 

### 2010, amends and creates definitions that significantly impact the Prevention of Significant Deterioration (PSD) and Title 

### V permitting programs. The amendments are to the definitions for "Regulated NSR pollutant", which includes greenhouse gases (GHGs) as a regulated NSR pollutant under the Clean Air Act; "Major source", which includes air pollutants subject to regulation; and the inclusion of a definition for "Subject to regulationn, which includes the greenhouse gas emission thresholds to trigger PSD and Title 

## V permitting. (b) 

### The necessity 

## of the amendment tothis administrative regulation: The definition amendments are necessary at the state level to ensure consistency between state and federal programs. The Tailoring Rule establishes January 

## 2, 2011, as the trigger date for GHGs to become regulated. If Kentucky's State Implementation Plan (SIP) is not revised by

### that date to include these requirements, the SIP will be found deficient, and the U.S. EPA will have authority to issue a Federal Implementation Plan (FIP). Serious consequences of a FIP include loss of PSD and Title 

## V program approvals and loss of federal highway funds. EPA clearly states their intent inthe preamble to thefinal rule, "For any state that lacks the ability to issue PSD or Title 

## V permits for GHG emissions sources consistent with the final rule, we [EPA] intend to undertake a separate action to call for revisions to these programs. We [EPA] also intend to
move quickly to impose a FIPfor PSDthrough 40 CFR 52.21, and use our federal Title 

### V authority to ensure that 

## GHG sources will be permitted consistent with the final rule." This amendment also clarifies that small businesses will not be regulated solely because of their greenhouse gas emissions by tailoring the threshold limits. (c) How the amendment conforms to the content of the authorizing statutes: 

### KRS 224.10-lOO(26) requires the cabinet to issue regulations that are no more stringent than federal requirements. This amendment maintains consistency with corresponding federal definitions affecting Kentucky's PSD and Title 

### V permitting programs. (d) How the amendment 

### will assist in the effective administration of statutes: 

### This amendment will provide clear and consistent definitions of terms used in 

## 401 KAR 

### Chapter 51 to prevent and control air pollution.

List the type and number of individuals, businesses, organizations,or state and local governments affected by this administrative regulation: 

### Any facility with the capacity to emit greenhouse gases at or above the thresholds specified in the GHG Tailoring Rule, which changes to 401 KAR 

### 51:001 incorporate, would be affected by the changes to this regulation. This includes PSD and Title V 

### sources of greenhouse gas emissions but does not affect smaller emitters of greenhouse gases. EPA has estimated that without the Tailoring Rule there would be 82,000 permitting actions nationwide per year necessaryto address greenhouse gas emissions, but with the implementationof the rule that number is reduced to 1,600 nationwide. The Divisionfor Air Quality has estimated this regulation change to affect 30 

## -40 permitting actions per year in Kentucky. If these amendments are not made, the U.S. EPA will find Kentucky's SIP deficient and exercise their authority to issue a construction ban to prevent the construction or modification of a major emitting facility (pursuantto 

## CAA $167) until a FIP is issued.

Provide an assessment of how the entities identified in question 

## (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change if it is an amendment: 

### Changes to the current regulation will include the regulation of greenhouse gas emissions. For those
sources emitting at or above the major source threshold for greenhouse gas emissions, new permitswill haveto be issued. (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: Sources permitted under the Title 

### V program will have to submit a permit application identifying and reporting the emissions but there will be no new requirements or standards imposed on the source. Sources permitted under the 

## PSD program will have to submit a permit application including Best Available Control Technology (BACT) review for greenhouse gas emissions. In complying with this administrative regulation or amendment, how much will it 

### cost each of the entities identified inquestion (3): 

### There
are no emission fees associated with the regulation of greenhouse gas emissions. For those sources that must provide a BACT analysis, there is the additional cost to meet the requirements of the BACT determination. Additionally, sources required to obtain a new permit will have the expense of completing a permit application. 

## EPA has estimated that a Title 

### V permit application for greenhouse gas sources would cost each source, on average, between $23,200 and $46,400. As a result of compliance, what benefits will accrue to the entities identified in question (3): 

### These major sources will remain in compliance with state and federal regulations.

Provide an estimate of how much it 

### will cost the administrative body to implementthis administrative regulation: (a) Initially: The inclusion of greenhouse gases in stationary source permits will require the Division for Air Quality to expand staff to review the increased permit load and inspect changes madeto sources as a result of this regulation. 

## (b) On a continuing basis: The cabinet must maintain the additional staff in order to handle the increase in permit issuance. 

## EPA has estimatedthat a Title V 

### permit application for greenhouse gas sources would cost a permitting authority, on average, between $9,844 and $19,688 to process each source permit.

What is the source of the funding to be used for the implementation and enforcement of this administrative regulation: Any additional expense incurred by the Division for Air Quality to regulate greenhouse gas emissions would be paid for through Title V 

### emission fees. The cabinet is not requesting additional general funds for the implementation and enforcement of the regulation.

Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, 

## if new, or 

## by the change 

## if it isan amendment. The cabinet is not requesting additional general funds for the implementation of this administrative regulation. However, Title 

### V emission fees may be impacted by the implementation of this administrative regulation. State whether or not

## this administrative regulation established any fees or directly or indirectly increased any fees. This administrative regulation does

### not establish fees, but as stated above in 

## (7), Title 

## V emission fees may be impacted.


## (9) TIERING: Is tiering applied? 

### Yes. The Tailoring Rule amends the threshold of greenhouse gas emission levels subject to regulation. This tiering revision was necessary to prevent small businesses and individuals from becoming subject to permitting requirements solely due to greenhouse gas emissions.

### FEDERAL MANDATE ANALYSIS COMPARISON



## I.Federal statute or regulation constituting the federal mandate. As a SIPapproved state for the PSD program under 40 CFR 51.166, recent changes in the federal PSDlNSR and Title V 

### programs make it necessary to revise the regulation in order to maintain federal approvability. Failure to do so will result in a Federal Implementation Plan.



### 2. State compliance standards. The state compliance standards are found in KRS 224.10-1OO(5).



## 3. Minimum or uniform standards contained inthe federal mandate. Changes in the federal definitions for this program necessitate changes inthe state definitions.

4. 

### Will this administrative regulation impose stricter requirements, or additional
or different responsibilities or requirements, than those required bythe federal mandate? No.



## 5. Justification for the imposition of the stricter standard, or additional or different responsibilities or requirements. The definitions contained in this administrative regulation are not more stringent or otherwise different than the corresp~nding federal definitions.

### FISCAL 

## NOTE ON STATE OR LOCAL GOVERNMENT

Administrative Regulation 

### #: 401 

## KAR 51:001 Contact person: 

### Laura Lund, EnvironmentalTechnologist 

## II

1. Does this administrative regulation relate to any program, service, or requirements of a state or local government (including cities, counties, 

### fire departments, or school districts)? 

### Yes.

2. 

### What units, parts or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation? 

### This administrative regulation impacts the Division for Air Quality as the applicability of other administrative regulations is 

### altered. Any state or local government that emits greenhouse gases 

### in the thresholds subject to the 

### PSD or Title V 

### permitting programs would be required to obtain a 

### permit from the Divisionfor Air Quality.

3. 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), (26); 42 U.S.C. 

### 7401,7410, 7471,7607; 40 CFR 

### 51.166.



## 4. Estimate the effect of this administrative regulation on the expenditures and
revenues of a state or local government agency (includingcities, counties, 

### fire departments, or school districts) for the first full year the administrative regulation is to be 

### ineffect. (a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year? 

### This administrative regulation does not generate revenue, but Title 

### V fees may be impacted by the implementationof this regulation. (b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years? 

### This administrative regulation does not generate revenue, but Title 

### V fees may be impacted by the implementation of this regulation. (c) How much will it 

### cost to administer this program for the first year? 

### The U.S. 

### EPA has estimated that it 

### will cost the permitting authority between $9,844 and $19,688 per permit issued, and the Division for Air Quality has estimated 30 

# - 40 permit actions per year. Therefore, it is estimated that an increase of between $300,000 and $800,000 will 

### be necessaryto operate this program. (d) How much will 

## it cost to administer this program for subsequent years? 

### The US. EPA has estimated that it will cost the permitting authority between $9,844 and $19,688 per permit issued, and the Division for Air Quality has estimated 30 

## - 40 permit actions per year. Therefore, it is 

### estimated that an increase of between $300,000 and $800,000 will be necessaryto operate this program.

### TIME:

# 7

JUL 1

# 4' 2010

ENERGYAND ENVIRONMENT CABINET
Department for Environmental Protection

Division for Air Quality
(Amendment)

401 KAR 52:001. Definitions for 401 KAR Chapter 52.

RELATES TO: KRS 224.01-010, 224.10-100, 224.20-100, 224.20-110,
224.20-120,40 C.F.R. Parts 50-53.60-63.70-78.42 U.S.C. 7401-7671q

STATUTORY AUTHORITY: KRS 224.10-1OO(5)


### NECESSITY, FUNCTION, AND CONFORMITY: KRS 224.10-100(5) requires the

cabinet 

# [t] to promulgate administrative
regulations for the prevention, abatement, and control of air pollution. There 

## is no

the terms used in 401 KAR Chapter 52. The definitions contained 

## in this administrative
regulation are neither more stringent nor othewise different than the corresponding

federal definitions.

Section 1. Definitions. (1) "Acid Rain Program" means the national program for
reducing SO2 and NOx emissions established under 42 U.S.C. 7651 to 76510 (Title IV

of the Act) and codified at 40 C.F.R. Parts 72 to 

## 78.


## (2) "Act" means the Clean Air Act established under 42 U.S.C. 7401 to 7671q.

## (3) "Actual emissions" is defined bv 40 C.F.R. 51.166(b)(21). 

## [-



# -1
(4) "Affected facility" means an apparatus, building, operation, road, or other entity

or series of entities that emits or may emit an air contaminant into the outdoor
atmosphere.
(5) "Affected source" means a sourcethat includes one (1) or more affected units.
(6) 

### "Affected 

# state" 

# [&&&'I means a state 

## [cda-ks] that:


## (a) Borders [€le&f] 

### Kentucky and whose air quality may be affected by the proposed permit, permit revision, or permit renewal; or (b) 

# Is [&el situated within fifty (50) 

### miles of the source requesting the proposed
permit action.
(7) 

### "Affected unit" means a unit subject to the Acid Rain Program. 

## (8) "Air contaminant" is defined 

## & [kl KRS 

### 224.01-010(1).
(9) 

### "Air pollutant" means air contaminant.
(10) "Air pollution" is defined

# & [k] KRS 224.01-OlO(3).
(11) "Air pollution control equipment" means a mechanism, device or contrivance

used to control or prevent air pollution, that is not, aside from air pollution control laws

and administrative regulations,vital to productionof the normal product of the source or

to its normal operation.
(12) "Alternative method" is defined 

## bv 40 C.F.R. 

## 60.2. For purposes of this
definition, "administrator" means both the 

## U.S. EPA and the cabinet. 

## [V

## 2 . 

## . 

# .I

3 (13) "Ambient air"' is defined bv 

## 40 C.F.R. 50.l(e). 

## [-

4 

## . . 

# -1

5 (14) "Ambient air quality standard" means a numerical expression of a specified



## 6 concentration level for a particular air contaminant and the time averaging interval over



## 7 which thatconcentration level is measured and is a goal to be achieved in a stated time

8 

### through the application of appropriate preventive or control measures.



## 9 (15) "Applicable requirement" means a state-origin or federally enforceable

10 requirement or standard that applies to asource.

11 (16) "Batch mix plant" means a source or affected facility that produces hot mix 

# 1

asphalt by heating and drying the aggregate 

## in a dryer before separating and mixing it
with asphalt cement in separate batches.
(17) "Cabinet" is defined by

## KRS 224.01-010(9).
(18) "Capital expenditure" is defined 

## b~ [k] 40 

## C.F.R. 60.2.
(19) "Commence" means that an owner or operator has undertaken a continuous

program of construction, modification, or reconstruction of an affected facility, or that an

owner or operator has entered into a contractual obligation to undertake and complete,

within a reasonable time, a continuous program of construction, modification, or

reconstruction

## of an affected facility.
(20) 

### "Construction" means fabrication, erection, installation or modification of an air

contaminant source.

### (21) "Continuous monitoring system" means the total equipment, required under the
applicable administrative regulations in

## 401 KAR Chapters 50 to 

## 65,used to sample, to

condition (if applicable), to analyze, and to provide a permanent record of emissions or

process parameters.
(22) "Control device" means equipment such as an incinerator or carbon adsorber

used to reduce, by destruction or removal, the amount of air pollutants in an air stream
priorto discharge to the ambient air.
(23) 

### "Control system" means a combination of one (1) or more capture systems and

control devices working in concert to reduce discharges of pollutantsto the ambient air. (24) "Designated representative" means a person authorized by the owner or
operator



# [-I of an affected source and of all affected units at the

source, as evidenced by a certificate of representation submitted to the 

## U.S. EPA in

accordance with 40 

### C.F.R. 72.20(b), to represent and legally bind each owner and
operator, as a matter of federal law, in all matters pertaining to the Acid Rain Program.

In matters relating to the acid rain portion of a Title V permit, the term "responsible

official': as defined in this section, means the designated representative.
(25) "Draft permit" means the version of a federally enforceable permit, which the

cabinet offersfor public review and any applicable affected state review.
(26) "Drum mix plant" means a source or affected facility that produces hot mix
asphalt by heating, drying, and mixing the aggregate with asphalt cement in one (1)
operation.
(27) "Emergency" means a situation arising from a sudden and reasonably

unforeseeable event beyond the control of the sourcethat: 

## (whkk]

### (a) Requires immediate corrective action to restore normaloperation;
(b) Causes the source to exceed a technology-based emission limitation in the
permit dueto unavoidable increases inemissions attributableto the emergency; and
(c) 

# Does [Sba+l] not include noncompliance caused by improperly designed
equipment, lack of preventive maintenance, careless or improper operation, or operator

error. 128) "Emission standard" means the numerical expression of auantitv per unit of

time or other parameter that limits the amount of a regulated air pollutant that a

, 

### source

or emission unit is allowed to emit to the ambient air.
(29) "Emission unit" means an affected facilitv, or a part or activity of 

## a source. that

emits or has the ~otential to emit 

## a requlated air pollutant and does not alter the

definition of the term "unit" as used in the Acid Raiti Procrram.
(301 "Emissions fee" means the annual fee assessed to 

## a source as prescribed in

401 KAR 

### 50:038. made effectiveApril 12. 

### 1995.

### (31) 

### "Enforceable as a practical matter" means that the emission or other standards

contained in 

## a permit or compliance schedule include:
(a) Technically accurate emission standards and the portions of the source that are subjectto the standards;
(b) 

## A time period adequate to demonstrate compliance with the standards; and
(c) The method the source will use to achieve and demonstrate compliance with the
standards, including appropriate monitoring, recordkeeping,and reporting.


## (32) "Equivalent method is defined bv 40 C.F.R. 60.2. For purposes of this

definition. "administrator" means both the U.S. EPA 

### and the cabinet. [-



## . . 

# il
(33) 

### "Exempt compound" or "exempt solvent" means an organic compound listed in

the definition of volatile organic compound as not participating in atmospheric
photochemical reactions.
(34) "Federallv enforceable requirement" means an item specified in this subsection

as it applies to an emission unit at a source subiect to 40 C.F.R. Part 70. 

### includinq a requirement ~romulqated or approved bv the U.S. 

## EPA in coniunction with the permit

issuance but which has future-effective compliance dates.
(a) 

### A standard or requirement in the SIP that implements the relevant reauirements

of the Act, includinq a 

### revision to that plan promulaatedat 40 C.F.R. Part 52;
(bl 

## A term or condition of 

## a preconstructionpermit issued pursuantto administrative
requlations a~proved or promulqated pursuantto 42 U.S.C. 7401to 7515;

### (c) 

### A standard or other requirement promulqated pursuant to 42 U.S.C. 7411 or

7429 qovernins solid waste incinerators;
(dl

### A standard or other requirement promulaated pursuant to 42 

## U.S.C. 7412;
(el 

### A standard or requirement of the Acid Rain Proaram; 

## (0 A reauirement established pursuant to 42 U.S.C. 7414(a)(31 or 7661dbI for
monitorinqand compliance certification;

(q) 

### A national ambient air quality standard or increment or visibility reauirement
pursuant to 42 U.S.C. 

### 7470 to 7492 for a temporaw source permitted pursuant to 42

U.S.C. 

### 7661c(e);
(hl 

### A standard or other requirementfor consumer and commercial products adopted
pursuant to 42 U.S.C. 7511b(e);
(i) A standard or other reauirement for a tank vessel adopted ~ursuant to 42 U.S.C.

7511 b(f); 

### and 

## (i) A standard or other requirement to protect stratospheric ozone adopted ~ursuant

to 42 U.S.C. 7671 to 7671a, unless the U.S. 

## EPA determines that those requirements

need not be contained inthe permit.



## .

# CI
(35) "Final permit" means:
(a) For a federally enforceable permit, the version issued by the cabinet that has
completed all the applicable review procedures of 

### 401 KAR 52:100 and for which a final

determination has been made; or 

## [wade]

### (b) For a state-origin permit, the version that meets the applicable provisions of 

### 401



# KAR 52:040, and for which a final determination has been made.


### (36) "Fixed capital cost" means the capital needed to provide all the depreciable
components.


### (37) "Fuel" means natural gas; ~etroleum; coal; wood; 

# 1-1

or a form of solid, liquid, or gaseous fuel derived from these materials for the purpose of
creating useful heat.


### (38) "Fugitive emissions" means those emissions that could not reasonably pass
through a stack, chimney, vent, or other functionally equivalent opening.


### (39) "Hazardous air pollutant" or 

## "HAP" means a pollutant listed pursuant to 

### 42 

# 1

U.S.C. 

### 7412(b).
(40) "Hot mix asphalt plant" means a stationary source or portable affected facility

that manufactures hot mix asphalt by heating and drying aggregate and mixing it with
asphalt cements. 

## , (41) "Hydrocarbon" means an organic compound consisting predominantly of

carbon and hydrogen.


### (42) "Incineration" means the process of igniting and burning solid, semisolid, liquid,
or gaseous combustible wastes.


### (43) "Intermittentemissions" means emissions of particulate matter intothe open air

from a process that operates for less than any six 

## (6) consecutive minutes.


## (44) "KyEISmeans the Kentucky Emissions Inventory System.


### (45) "Major source" is defined by 

### 40 C.F.R. 70.2. 

### For DurDoses of cha~ter 

### 52, 

# r[-A-



### . 

### S

. 

### Epw



## (46) "Major source threshold" means PTE:


### (a) For HAPs:

I.

Ten (I 0) tons per year or more of a single HAP;

2. Twenty-five (25) tons peryear or more of combined HAPs; or

3. 

### A lesser quantity that the 

## US.EPA establishes in a final rulemaking; or
(b) 100 tons per year or more for regulated air pollutants other than HAPs, except

that:

1. For ozone nonattajnment areas:

-



### a. 100 tons per year or more of volatile organic compounds or nitrogen oxides in

areas classified as marginal or moderate;

b. Fifty (50) tons per year or more in areas classifiedas serious;

c. Twenty-five (25) tons per year or more in areas classified as severe; or



## d. Ten (10) tons per year or more in areas classifiedas extreme;

2. Fifty (50) tons per year or more of carbon monoxide for carbon monoxide

nonattainment areas that are classified as serious and in which stationary sources

contributesignificantly to carbon monoxide levels; or



## 3. Seventy (70) tons per year or more of particulate matter (PMIo) for PMIO

nonattainmentareas classified as serious.

### (47) "Malfunction" 

## [-



# -1
(48) "Marginal nonattainment county" or "marginal nonattainment area" means a


### county or portion of a county designated marginal nonattainmentfor the 

# [wdJWxwl

nationalambient air quality standardfor ozone 

# [-I.
(49) 

### "Minor source" means a stationary source that emits and has the potential to

emit less than the major source thresholds.
(50) "Moderate nonattainment county" or "moderate nonattainment area" means a county or portion of a county designated moderate nonattainmentfor the 

# [*I

nationalambient air quality standardfor ozone 

# [-I.

(51)M "Modification" is defined by 40 

## C.F.R 60.2. 

## (b) Exceptionsto the definition of "modification" are listed in40 

### C.F.R 60.14(e). For
purposes of this definition, "administrator" means the cabinet. [-Il

### c 

## g
V.". 

## .

C: T

'C 

### "



## ef

7 T 

# TI
(52) "Modification under Title I of the Act" means a 

### change at a 

### facility that

constitutes 

# [-I a 

### modification under 42 U.S.C. 7470 to 7492 or 42 U.S.C.

7501to 7515.



## . . (53) "Opacity" [-?-



## . . 

# -1

' 

## (54) "Owner 

## or operator" is defined bv 

## 40 C.F.R. 

## 60.2. 

# [F

.. . 

# -1

14

## . 

# .. (55) "Person" js defined by 

## KRS 

## 224.01-OIO(17). 

# [v

nr I V' 

# -1
(56) "Potential to emit" or "PTE means the maximum capacity of a stationary

source to emit a pollutant under its physical and operationaldesign in which: 

## [wk?rs]
(a) 

## A physical or operational limitation on the capacity of a source to emit an air
pollutant, including air pollution control equipment and restrictionson hours of operation

.



### or on the type or amount of material combusted, stored, or processed 

# & [skA-k]

treated as part of its design if the limitation is enforceable as a practical matter; and



## 10 (b) This definition does not alter or affect the use of this term for other purposes of 

# 1

the Act or the term "capacityfactor" as used in the Acid Rain Program.
(57) "Proposed permit" means the version of a permit that the cabinet proposes to

issue and submitto the U.S. 

## EPA for g

### forty-five (45) day review period.
(58) "Reconstruction" means the replacement of components of an existing affected
facility to the extent that:
(a) The fixed capital cost of the new components exceeds 

## fii (50) percent of the

fixed capital cost that would be required to construct a comparable entirely new affected
facility; and
(b) It is technologically and economically feasible to meet the applicable
requirements in 

## 401 KAR Chapters 50 to 

# 65.[&]
(59) "Reference method" means a method of sampling and analyzing for an air
pollutant as published in 

## 40 C.F.R. Part 

## 50,Appendices 

## A to 

## N; 40 

## C.F.R. Part 

## 53;40

### C.F.R. Part 60, Appendices A and 

## 6; 40 C.F.R. Part 61, Appendix B; or 40 C.F.R. Part


## 63, AppendicesA to 

## D.
(60) "Regulated air pollutant" means:
(a) Nitrogenoxides;
(b) Volatile organic compounds;

(c) A pollutant for which a national ambient air quality standard has been
promulgated pursuant to 42 U.S.C. 7409 (Section I09of the Act);
(d) A Class I

### or Class 

## II substance subject to a standard promulgatedor established
pursuantto 42 U.S.C. 7671to 7671q (TitleVI of the Act);


### (e) A pollutant subject to a 

### standard promulgated pursuant to 42 

### U.S.C. 7411; 

## (f) A hazardous air pollutant (HAP) subject to a 

### standard or other requirement
established pursuant to 42 U.S.C. 7412. 

## (61) "Renewal" means the process by which a permit is reissued at the end of its
permitterm.
(62) "Responsible official" is defined by 

### 40 C.F.R. 70.2. [wa++s

r nr 

## , P.

nr 

### ",

n /I\ n * 

# , v:



### 16

# -1
(63) "Section 502(b)(10) changes" means changes that contravene an express permit term and does not include changes that would violate applicable requirements or
contravene federally enforceable permit terms and conditions that are monitoring
(including test methods), recordkeeping, reporting, or compliance certification
requirements.
(64) "Shutdown" means the cessation of an operation.
(65) "Source" means one (1) or more affected facilities contained within a given
contiguous property line, which means the property is separated only by a public
thoroughfare, stream, or other right of way. (66) "Standard" means an emission standard, a standard of performance, or an .


### ambient air quality standard promulgated in 

## 401 

## KAR Chapters 

## 50 to 65 

## [hfnv 

## AkQs#yJ- or the emission control

requirements necessaryto comply with 401 

## KAR Chapter 51.
(67) "Start-up" or "startu~" means the setting in operation of an affected facility.
(68) "State implementation plan" or "SIP means the most recently prepared plan or

revision required by 

## 42 

## U.S.C. 7410, 

# that [W] has been approved by the U.S. 

## EPA.
(69) "state-origin permit" means a permit that is issued pursuant to 401 

## KAR 52:040

and is notfederally enforceable.
(70) "State-origin requirement" means an applicable requirement contained in 401



## KAR Chapters 50 to 65, 

### which is not mandated by the Act and is not federally

enforceable.
(71) "Stationary source" means a building, structure, affected facility, or installation

that emits or may emit a regulated air pollutant.
(72) "Subiect to requlation" is defined by 40 C.F.R. 70.2 for the Title 

## 4oroqram. (73) 

# [o] "Title 

### V permit" means a permit issued under Kentucky's Title \/: 

### oronram.
[[



# -1
(74) 

# [o] "Title 

### V program" means a state operating permit program approved by

the US. 

## EPA pursuantto 42 U.S.C. 7661 to 7661f (Title

## V of the 

## Act). 

# [w] "Total suspended particulates" or "TSP" 

### is defined bv 40 C.F.R.

/76) 

# [w] "tpy" meanston per year.

## (77J 

## [(Xi)] "U.S. 

## €PA" meansthe U.S. Environmental ProtectionAgency.


## (78) [(TfjI 

### "Volatile organic compound" or "VOC is defined 

## b~ 

## [k] 40 

## C.F.R.
51.100(s).
(79) 

## [(?&I] 'Waste oil" means a petroleum based or synthetic oil such as an engine
lubricant, engine oil, motor oil, or lubricating oil for use in an internal combustion engine,

or a lubricant for motor transmissions, gears, or axles which through use, storage, or handling has become unsuitable for its original purpose due to the 

### presence of
impuritiesor loss of original properties.

### Date Leonard 

## K. Peters, Secretary Energy and Environment Cabinet

### PUBLIC HEARINGAND PUBLIC COMMENT PERIOD: A public hearing on this administrative regulation shall be held on August 24, 2010, at 2:00 p.m. (local time) in Conference Room 201 

## 6 onthe first floor of the Divisionfor Air Quality at 200 Fair Oaks Lane, Frankfort, Kentucky. Individuals interested in being heard at this hearing shall notifythis agency five (5) workdays prior to the hearingoftheir intentto attend. If no notification of intent to attend the hearing is received by that date, the hearing may be canceled.
This hearing is opento the public. Any personwho wishes to 

## be heard shall be given an opportunity to comment on the proposed administrative regulation. Ifyou do not wish to be heard at the public hearing,you may submitwritten comments on the proposed administrative regulation. Written comments shall be accepted until close of business on August 31,2010. Send written notificationof intentto be heard at the public hearing or written comments on the proposedadministrative regulationto the contact person listed below. The hearingfacility is accessibleto persons with disabilities. Requestsfor reasonable accommodations, including auxiliary aids and services necessaryto participate in the hearing, may be made to the contact person at least five (5) workdays priorto the hearing.
CONTACT PERSON: Laura Lund, EnvironmentalTechnologist 11, Divisionfor Air Quality, 1' Floor, 200 Fair Oaks Lane, Frankfort, Kentucky40601, telephone (502) 564- 3999, 

### ext. 4428, 

### fax (502) 564-4666, and electronic mail Laura-Lund@ky.gov.

### REGULATORY IMPACTANALYSIS AND TIERING STATEMENT

Administrative Regulation#: 401 KAR 52:001 Contact person: Laura Lund, Environmental Technologist 

## I1
(1) Providea briefsummarv of: What this administrative regulation does: This administrative regulation defines the terms used in 401 KAR Chapter 52. The necessity of this administrative regulation: This administrative regulation provides clear and consistent definitions for terms used in 401 KAR Chapter 52. How this administrative regulation conforms to the content of the authorizing statutes: The statutory authority for this regulation is given in KRS 224.10-100(5), which provides the cabinet the authority, power, and duty to prevent and control air pollution. KRS 224.10-lOO(26) requires the cabinet to issue regulations that are no more stringent than federal requirements. The definitions contained in this administrative regulation are not more stringent or otherwise different than the correspondingfederal definitions. How this administrative regulation currently assists or will assist in the effective administration of the statutes: This administrative regulation assists the public and the regulated community by providing clear and consistent definitions for terms used in 401 KAR Chapter 52.


### (2) 

## If this is an amendment to an existing administrative regulation, provide a 

### briefsummary of: (a) How the amendment will change this existing administrative regulation: This amendment revises definitions to reflect amendments made to the New Source Review (NSR) program at the federal level. The Prevention of Significanf Deterioration and Tifle V 

### Greenhouse Gas 

### Tailoring Rule 

### (Tailoring Rule), published as a final rule on June 

## 3, 2010, amends and creates definitions that significantly impact the Prevention of Significant Deterioration (PSD) and Title V 

### permitting programs. The amendments are to the definitions for "Regulated NSR pollutant", which includes greenhouse gases (GHGs) as a regulated NSR pollutant under the Clean Air Act; "Major sourcen, which includes air pollutants subject to regulation; and the inclusion of a definition for "Subject to regulation", which includes the greenhouse gas emission thresholds to trigger PSD and TitleV permitting. 

## (b) The necessity ofthe amendment tothis administrative regulation: The definition amendments are necessary at the state level to ensure consistency between state and federal programs. The Tailoring Rule establishes January 2, 2011, as the trigger date for GHGs to become regulated. If Kentucky's State Implementation Plan (SIP) is not revised by

### that date to include these requirements, the SIP will be found deficient, and the U.S. EPA will have authority to issue a Federal Implementation Plan (FIP). Serious consequences of a FIP include loss of PSD and Title 

### V program approvals and loss of federal highway funds. EPA clearly states their intent inthe preambleto the final rule, "For any state that lacks the ability to issue PSD or Title 

## V permits for 

## GHG emissions sources consistent with the final rule, we [EPA] intend to undertake a separate action to call for revisions to these programs. We [EPA] also intend to move quickly to impose a FIPfor PSD through 40 CFR 52.21, and use our federal Title 

### V authority to ensure that GHG sources will be permitted consistent with the final rule." This amendment also clarifies that small businesses will not be regulated solely because of their greenhouse gas emissions by tailoring the threshold limits. (c) How the amendment conforms to the content of the authorizing statutes: KRS 224.10-lOO(26) requires the cabinet to issue regulations that are no more stringent than federal requirements. This amendment maintains consistency with corresponding federal definitions affecting Kentucky's PSD and Title 

### V permitting programs. (d) How the amendment will assist in the effective administration of statutes: This amendment will provide clear and consistent definitions of



## .terms used in 401 

## KAR Chapter 52 to prevent and control air pollution.
(3) Listthe type andnumber of individuals, businesses, organizations, or state and local governments affected by 

### this administrative regulation: Any facility with the capacity to emit greenhouse gases at or above the thresholds specified in the 

### GHG Tailoring Rule, which changes to 401 KAR 52901 incorporate, would be affected by the changes to this regulation. This includes PSD and Title V 

### sources of greenhouse gas emissions but does not affect smaller emitters of greenhouse gases. EPA has estimated that without the Tailoring Rule there would be 82,000 permitting actions nationwide per year necessary to address greenhouse gas emissions, but with the implementation of the rule that number is reduced to 1,600 nationwide. The Divisionfor Air Quality has estimated this regulation change to affect 30 

# -40 permitting actions per year in Kentucky. If these amendments are not made, the U.S. EPA will find Kentucky's SIP deficient and exercise their authority to issue a construction ban to prevent the construction or modification of a major emitting facility (pursuant to 

## CAA S167) until a FIP is issued.
(4) Provide an assessment of howthe entities identified in question (3) will be impacted by 

### either the implementation of this administrative regulation, 

## if new, or by 

### the change 

## if it 

### is an amendment: Changes to the current regulation will include the regulation of greenhouse gas emissions. For those sources emitting at or above the major source threshold for greenhouse gas emissions, new permits will haveto be issued. 

### (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: Sources permitted underthe Title 

## V program will have to submit a permit application identifying and reporting the emissions butthere will be no new requirements or standards imposed on the source. Sources permitted under the PSD program will have to submit
a permit application including Best Available Control Technology (BACT) reviewfor greenhouse gas emissions. In complying with this administrative regulation or amendment, how much will 

## it cost each of the entities identified in question (3): 

### There
are no emission fees associated with the regulation of greenhouse gas emissions. For those sources that must provide a BACT analysis, there is the additional cost to meet the requirements of the BACT determination. Additionally, sources required 30 obtain a new permit will have the expense of completing a permit application. EPA 

### has estimated that a Title V 

### permit application for greenhouse gas sources would cost each source, on average, between $23,200 and $46,400. As a result of compliance, what benefits will accrue to the entities identified in question (3): 

### These major sources will remain in compliance with state and federal regulations.

Provide an estimate of how much it 

## will cost the administrative body to implementthis administrative regulation: (a) Initially: The inclusion of greenhouse gases in stationary source permits will require the Division for Air Quality to expand staff to review the increased permit load and inspect changes madeto sources as a result of this regulation. (b) On a continuing basis: The cabinet must maintain the additional staff in order to handle the increase in permit issuance. EPA 

### has estimated that a Title V permit application for greenhouse gas sources would cost a permitting authority, on average, between $9,844 and $19,688 to process each source permit.

What is the source of the funding to be used for the implementation and enforcement of this administrative regulation: Any additional expense incurred by the Division for Air Quality to regulate greenhouse gas emissions would be paid for through Title 

## V emission fees. The cabinet is not requesting additional general funds for the implementation and enforcement of the regulation.

Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change ifit is an amendment. The cabinet is not requesting additional general funds for the implementation of this administrative regulation. However, Title 

## V emission fees may be impacted by the implementation of this administrative regulation. State whether or not this administrative regulation established any fees or directly or indirectly increased any fees. This administrative regulation does

### not establish fees, but as stated above in 

## (7),Title 

## V emission fees may be impacted.


## (9) TIERING: 

## Is tiering applied? Yes. The Tailoring Rule amends the threshold of greenhouse gas emission levels subject to regulation. This tiering revision was necessarytoprevent small businesses and individuals from becoming subject to permitting requirements solely due to greenhouse gas emissions.

## FEDERAL MANDATE ANALYSIS COMPARISON



## 1. Federal statute or regulation constituting the federal mandate. 

## As a SIP

## approved state for the PSD program under 40 CFR 51.166, recent changes in the federal PSDINSR and Title V 

## programs make it necessary to revise the regulation in order to maintain federal approvability. Failure to do so will result in a Federal Implementation Plan.

2. State compliance standards. 

## The state compliance standards are found in KRS 224.10-lOO(5).

3. 

### Minimum or uniform standards contained in the federal mandate. 

## Changes in the,federal definitionsfor this program necessitate changes inthe state definitions.

4. Will this administrative regulation impose stricter requirements, or additional
or different responsibilities or requirements, than those required by 

### the federal mandate? 

## No.

5. Justificatioh for the imposition of the stricter standard, or additional or different responsibilities or requirements. 

## The definitions contained in this administrative regulation are not more stringent or otherwise different than the corresponding federal definitions.

### FISCAL 

### NOTE 

## ON STATE 

## OR LOCAL 

### GOVERNMENT
Administrative Regulation

### #: 401 KAR 52:001 Contact person: 

### Laura Lund, EnvironmentalTechnologist 

### II

1. Does this administrative regulation relate to any program, service, 

## or requirements of a state or local government (including cities, counties, fire departments, or school districts)? 

### Yes.

2. 

### What units, parts or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation? 

### This administrative regulation impacts the Division for Air Quality as the applicability of other administrative regulations is altered. Any state or local government that emits greenhouse gases in the thresholds subject to the PSD or Title V 

### permitting programswould be requiredto obtain a permitfrom the Divisionfor Air Quality.

3. 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), (26); 42 U.S.C. 7401,7410, 7471, 7607; 40 CFR 

### 51.166.

4. 

### Estimate the effect of this administrative regulation on the expenditures and
revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation isto be ineffect. (a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year? 

### This administrative regulatioh does not generate revenue, but Title 

### V fees may be impacted by the implementation of this regulation. (b) How much revenue 

### will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years? 

### This administrative regulation does not generate revenue, but Title V 

### fees may be impacted by the implementation of this regulation. (c) How much will it 

### cost to administer this program for the first year? 

### The U.S. EPA has estimated that it will cost the permitting authority between $9,844 and $19,688 per permit issued, and the Division for Air Quality has estimated 30 

## - 40 permit actions per year. Therefore, it is estimated that an increase of between $300,000 and $800,000 will be necessaryto operate this program. (d) How much will it 

### cost to administer this program for subsequent years? 

### The U.S. EPA has estimated that it 

### will cost the permitting authority between$9,844 and $19,688 per permit issued, and the Division for Air Quality has estimated 30 

## - 40 permit actions per year. Therefore, it is estimated that an increase of between $300,000 and $800,000 will be necessaryto operate this program.

### Steven L. 

### Beshear Governor 

### Energy and EnvironmentCabinet Department

### for EnvironmentalProtection Division for Air 

### Quality 200 Fair Oaks 

### Lane, 

### 1stFloor Frankfort, Kentucky 40601 -1403 

### www.air.ky.gov

August 5,2010



### Mr. A. StanleyMeiburg Acting Regional Administrator U.S. 

### EPA, Region4 

### SamNUMAtlanta Federal Center 61

### Forsyth Street,SW 

### Atlanta, Georgia30303 Leanard K. 

### Peters Secretary



### Dear Mr. Meiburg,

The Kentucky Division for Air Quality is requesting that EPA propose approval of the following proposed administrative regulations by parallel processing for the purpose of expeditingthe adoption of these regulations into the Kentucky SIP. Amendments to the currentregulations 

### are necessary to 

### define the term "subject to regulation" for the NSR and Title V 

### permitting programs in 

### accordance with the Greenhouse 

### Gas Tailoring Rule to maintain a 

### fully SIP-approved NSR program 

### in Kentucky. The regulations were filed with the Legislative Research Commission on July 14, 2010, 

### and WP~S 

### are enclosed foryour review.

401

### KAR 51:001. 

### Definitionsfor 401

## KAR Chapter51. 

### (Amendment) 401

### KAR 52001. 

### Definitionsfor 401

## KAR Chapter52. 

### (Amendment)



### A schedule for final adoption ofthe administrative regulations intothe Kentucky 

## SIP is follows:

End ofPublic Comment Period, in which a PublicHearing is conducted

. -
.. - -

### ---- 

### Submit StatementofConsideration (SOC) ofcomments received during public commentperiod First Legislative Subcommittee(Administrative Regulation Review Subcommittee

## -ARRS) reviews regulation SecondLegislative Subcommittee (Agriculture andNatural 

# ( Resourcessubcommittee)reviews regulation

Announceeffective date ofregulation

Submitamendmentito 

### EPA as

### an amendmentto Kentucky's SIP August 31,2010


### September 15,2010



### October 12,2010



### November4,2010


### Ifreviewed by 2nd Subcommittee, the effective

### date is at adjournment ofmeeting, else 30 daysafter the regulation referral by 

## Id subcommittee Early December2010

An Equal OpportunityEmployerM/F/D

### Mr. A. 

### StanleyMeiburg August 

### 5,2010 Page2



### If you 

### have any 

### comments or 

### questions 

### regardingthis request, please contact

### Lam Lund at 

### (502) 564-3999 or

### Laura-Lund@ky.gov.

Cc:

### LynoraeBenjamin JSWll 

### EnclosuresSENATE MEMBERS

David L. Williams President, LRC Co-Chair Katie Kratz Stine President ProTern

Robert Stivers Majority Floor Leader Ed Worley Minority Floor Leader DanSeum Majority Caucus Chair Johnny RayTurner Minority Caucus Chair Carroll Gibson MajorityWhip Jerry P. Rhoads

MinorityWh~p



### TO:



### FROM:



## RE:

DATE: 

# LEGISLATIVE RESEARCH COMMISSION
State Capitol 700 CapitolAvenue Frankfort KY 40601

Capitol FAX 502-223-5094 Annex FAX 502-564-6543 Irc.ky.gov

Robert Sherman Director HOUSE MEMBERS
Gregory D. Stumbo Speaker, LRC Co-Chair Larry Clark Speaker ProTern



### Laura Lund Energy and Environment Cabinet: Division for Air Quality
Emily Caudill Regulations Compiler
Acknowledgement 

### of Proposed Administrative Regulation andlor Amendment 

## - 401 KAR 

### 51:001 and 

### 401 KAR 

### 52:001
July 

### 14,2010 RockyAdklns Majority Floor Leader Jeff Hoover Minority Floor Leader

Robert R. Damron Majority Caucus Chair Bob DeWeese Minority Caucus Char

John Will Stacy

MajorityWhip David Floyd MinorityWhip



### A copy ofthe administrativeregulations listed above are enclosed for your files.These administrative regulations are tentativelyscheduledfor reviewby the Administrative RegulationReviewSubcommittee at its September 

### 2010, meeting. We will notify you of the date and time of this meeting when it has been scheduled.

Pursuant to 

### KRS 13A.280,

## ifa public hearingisheld 

### oryou receive written comments duringthepublic comment period, the Statement of Consideration

### forthese administrative regulations is due

### by noonon September 

### 15,2010.Please reference 

## KRS 13A.270 and 

### 13A.280for other requirements relating to public hearings and the Statement of Consideration.

Ifyou have any questions, please do not hesitate to contact me at 

### (502) 564-8100.

Enclosures

### VOLUME 

### 37, NUMBER 2

# -AUGUST 

### 1,2010
entry of vesicularstomatitis intoKentucky. (c) How this administrative regulation conforms to the content of the authorizing statutes: KRS 257.030 authorizes the board to establish quarantine and other measuresto controlthe movement of livestock into, through, or within the state. This administrative regulation establishes requirements for entry into Kentuw for livestockthat has been exposedto vesicular stomatitis. (d) How this administrative regulation currently assists or will assist inthe effecthe administration of the statutes: This amended regulation makesclearthe entry requirements for animals that may have been exposedto vesicular stornatibs. (2) If this isan amendmentto an existing admlnistrativeregulation, provide a briefsummary of: (a) Howthe amendment wili changethis existing administrative regulatiwr: Allows designation of areas or regions for VS, and reduces the time periodfor animals originating from areas where VS has beenfound. (b) The necessity of the amendment to the administrative regulation: To prevententry of vesiMliar slomatit~s into Kentucky, (c) How this amendment conforms to the content of the authorizing statutes KRS 257.030 authorizes the bodto establish quarantine and other measures to control the mwement of livestock into, through, or within the state. Thii administrative regulation establishes requirements for entry into Kentucky for livestock that has been exposedto vesiilar stomatit~s. (d) How will this amendment assist in the effective administration of the ststutes: This amended regulationmakes clear the entry requirementsfor animals that may have been exposedto vesicular stomatitis. (3) List the type and numberof individuals, businesses, organizations, or state and local governments affected bythii administrative regulation: This wll affect all persons wishing to enter animals into Kentucky from an area where VS has been found. As this disease is 'sporadic in nature, it is impossiMe to guess the number of persons that would be affected. The probabilityfor thiito affect the average animal moving Into Kentucky Isverv low. (4) Providean analysis of howthe entities identified inquestion (3) will be impacted by either the implementation of this administrative regulation, If new, or by the change, if it is an amendment, including: (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: The entities identifiedwill be required to test should the OSV requirethem to do so. (b) In complying with this administrative regulation or amendment. how much wili it cost each of the entities identified in question (3): The entitieswill not incur costs unless requiredto do sofor entry. The OSV estimates a test to cost $15. (c) AS a result of compliance, what benefits will accrue to the entities identified in question (3): The benefits of compliance to Kentucky Agriculture are immeasurable. Should VS be allowed to enterthe state, tremendous lossto all animal values inthe state. (5) Provide an estimate of how much it will cost the administrative bodyto implementthis administrative regulation: (a) Initially: No new additional costs. (b) On a continuingbasis: Noaddiiionaimts. (8) What is the source of the funding to be used for the imple mentation and enforcement of this administrative regulation: KDA generalfunds. (7) Provide 

### an assessment of whether an increase in fees or funding will be necessary to implement this admlnistrative regulation, if new. or by the change if it is an amendment: No fees are assodatedwith this regulation. (8) State whether or not this administrative regulation wtablished any fees or directly or indirectly increased any fees: This administrative regulationestablishes M,few directly or indirectly. (9) TIERING: Is tiering applied? 

### No. All regulated entities have the same requirements.

FISCAL NOTE ON STATE OR LOCAL GOVERNMENT

1. Does this administrative regulation relate to any program, service, or requirements of a state or local government (including cities, counties, fire departments, or school districts)?Yes 2. What units. Darts or divisions c d state or local government (including cities, counties, fire departments, or 

### schod districts) will be impacted by this administrative regulation? The Kentucky De 

# , partment of Agriculture 3. Identify each state or federal staMe or federal regulation that requlres or authorizes the action taken by the administrative regulation. KRS257.030,257,070 4. Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments. or school districts) for the first fullyear the administrative regulation isto be in effect (a) How much revenue wili this administrative regulation generate for the state or local government (Including cities, counties, fire departments, or school districts) for the first year? No revenue wili be generated bythis regulation. (b) How much revenue will this administrative regulation generate for the state or local government (Including cities, count~es, fire departments, or school districts) for subsequent years? No
revenuewill be generated by this regulation. (c) How much wili It cost to administerthis program for the first year? The Kentucky Department of Agriculture will have no new additional expenditures due to this regulation. (d) How much will it cost to administer this program for subseauent wars? The Kentuckv Deoarlmentof Aoriculure will have no newaiditionalexpenditure; due to this regul&on. Notdfspecific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation. Revenues (+I-): Expenditures(+I-): Other Explanation:

ENERGY AND ENVIRONMENTCABINET Departmentfor Emironmental Protection Division for Air Quality (Amendment)

401 KAR 51:001. Definitionsfor 401 KAR Chapter51.

RELATES TO: KRS 48.010(15)(a), 224.01410, 224.20-100, 224.20-110,224.20-120, 40 C.F.R. Chapter 1,50 Appendices A-R, 51.100[fsf], 51.121, 51.165, 51.166, 51 Appendix S, 52.920, 53, 60, 60 Appendices A, 

### B, 61, 61 Appendix B, 63 Appendices A-D, 70.2,75,82,96,42 U.S.C. 7401-7671q[7] STATUTORY AUTHORITK KRS 224.10-100a- 

### =I NECESSITY, FUNCTION, AND CONFORMITY: KRS 224.10- 100m requires the cabinet to promulgate administrative regulations for the prevention, abatement, and control of air pdlution.[EO


### -1 This administrative regulation defines the terms used in 401 KAR Chapter 51. The definitions contained in this administrative regulation are neither more stringent nor otherwise differentthan the correspondingfederal definitions.

PI. IOOIWIILIII,. 14) 'Adverse imoact on visibilitv0 is defined bv 40 C.F.R.

. - 

### 51.301. (5) 'Affected faciliK means an aowratus, buildina. ooeration. road. or other entitv or series of entities that em% or mav emit an air contaminantintothe outdoor atmasohere. 16) 'Air contaminanr isdefinedbv KRS 224.01-010(1). 171 'Air oollutanP means air contaminant,
f9) 'Air oollution control eoui~ment' means a mechanism, de vice. or contrivance used to control or Drevent air wllution. that is not, aside-fromair ~oliution control laws and administrative reaule tions. vltai to production of the normal product of the source or to

### VOLUME 

### 37, NUMBER 2 

### -AUGUST 1,2010

ff

(11) 'Allocation oeriod' means each three (3) vear oeriod begf12) 'Allowable em~ssions'ls defined bv: (a\ 40 C.F.R. 51.166(b\(16): o[ 1b) 40 C.F.R. 51.166(w)(2)(ii) for an actuais PAL. (13) 'Alteration' means: (a) The installation or reolacement of air wllution control guloment at a source: or

- Ib) A ohvsical chanae in or chanae in the method of oueration of an affected fadlitv that increases the ootential lo emit a oollufant. to which a standard aoolies, aed bv the fadlitv or that results in the emission of an air wllutant, to which a standard av-

- plies. not oreviouslv emitted. 1141 'Alternative method' is defined bv 40 C.F.R. 60.2. For purooses of this definition. 'administrator' means both the U.S. EPA andthe cabinet. (15) '~mbientair' is defined bv 40 C.F.R. 50.l(e). (16) 'Ambient air auaiiNstandard' means a numericalexpresslon of a suecified concentration level for a articular alr wntamilevel is measured and is a aoal to be achieved in a stated time thmuah the aooilcation of aoorooriate oreventive or control meas117) 'ANSI' means American National Standards Institute. ({ 

## he. - (19) 'ASTM" means American Societv for Testina and Mate- rials. 

## - (20) 'Baseline actual emissions' is defined bv 40 C.F.R. 51.166(b)(47) (21) 'Baseline areays defined bv40 C.F.R. 51.166fb)(151. 122) 'Baseline concentration" is defined bv 40 C.FR. 51.166(b1(13). 123) 'Basehe date" means maior source baseline date or minor source baseline date and is established for each pollutantfor

- - which increments or other eauivalent measures haw been estab

# w would construct is desianated as attainment or unclasdfiable oursuant to 42 U.S.C. 7407(d)(tMA1(ii) or fiii) for the wllutant on the
la) For a maior stationan, source. the wllutant would be emitted in sianificantamounts: or Ib) For a maior mod~fication. there would be a sianificant net emissions increaseof the odlutant. 124) 'Beain actual construction' is defined bv 40 C.F.R.



### 4~ 40 C.F.R. 51.166(bl(l2). 126) "BOD' means biochemical oxidant demand 

### i-% 128) 'BTU' means British thermal unit. 129) "Bulldlna, structure, facilltv. or Installation' is definedbv40 C.F.R. 51 .I 661b)(6). (33'C' means degree Celsius (centigrade). 131) 'Cabinet" is deflned bv KRS 2'24.01-010(9). (32) 'Cal' means calorie. /33) 'Caoital emendiiure' is defined bv 40 C.F.R. 602. 134) 'Cfm" means cubicfeet uer minute. L35) 'CHI0 means methane. 136) 'Clean coal technolwv' is defined bv 40 C.F.R. 51 .I 66(b)f331, (37) 'Clean coal technolwv demonstration oroiect' is defined bV40 C.F.R 51.166(b)f341. 1381 'Clinker' means the ~mdu~t of a mrtlandcement kilnfrom which finished cement is manufactured bv millinaand orindine 139) TO"meanscarbon monoxide. 140) 'COTmeans carbondio7Jde. 

### p f42YCombinedcvde svstem' is defined bv 40 C.F.R. 96.2. (43)'Combustion turbine' is defined bv 40 C.F.R. 96.2. 144) 'Commence": fa) ~eaz thaGowner or ooerator has undertaken a contipuous oroaram of construction, modification, or reconstruction of
an affected facilitv. or that an owner or operator has entered into a contractual obliaation to undertake and comolete, within a reason- able time. a continuous Droaram of construction, modification, or

-- - - reconstructionof an affectedfacilihr: or Jb) Is delined bv 40 C.F.R. 51.166(b1191 for the PSD or NSR pmaram. 145) 'Commence commercial o~eration' is defined bv 4Q

(49) 'Comoliance supolement wol' means the auantitvof NOx 

### aa (a) Allocated to NOx budaet unitsthat achieve eadv reduction; 

## or ib) Usedto assist NOx budoet sources that are unable to meet the com~liance deadline as orovided in 401 KAR 51:180. Seclig

c a. 

### - 150) 'Construction": fa) Means fabrication, erection, installation, or modification of
an air contaminantsource: or [b) Is defined for use in the PSD or NSR oroaram bv 40 C.F.R. 51.1661b)(8), 151) 'Gontlnuous emissions monitorina svstem' or 'CEMS' is

. (53) "Continuous emissions rate monitorina svstem' or 'GERMS is defined bv 40 C.F.R. 51.166(b)f46). 154) 'Cont~nuousmonltorina svstern' means the total eauioment, required under the aodicable administrative reaulations in 401 KAR Chaoters 50 to 65, used to samde. to condition (if aoolicable), to analvze, and to orovide a oennanent record of emissions
or process parameters. (55) 'Contmuous oammeter monitorina svstem' or WMS"is defined bv: la) 40 C.F.R. 51.166(b)f45) for 401 KAR 51:017: or (b) 40 C.F.R. 51.165(a)fl Ilmiii) for 401 KAR 51:052. (561 'Control period' is defined bv 40 C.F.R. 96.2. (571 'Director' means Director ol the Divisionfor Alr Qualitv of

51:195. a fossil fuelfired boiler. combustion turbine. or a combined pclesvstem usedto aeneratetwentv-five (251 meaawatts or more of electricitv.some of which is offered for sale. (62) 'Electric utilitv steam aeneratina unit' or 'EUSGU' is defined bv40C.F.R. 51.166fb1(301. 163) 'Emission standard' means that numerical limit that fixes the amount of an air contaminant or air contaminants that mav be vented into the atmowhere from an affected facilitv or fmm air pdlution control eauioment installed In an affectedfacilitv. f64 'Emissions unir is defined bv: la140 C.F.R. 51.166fb)O for 401 KAR 51:017: or 

### &)40 C.F.R. 51.165(aMl)(vii) for 401 KAR 513052. 165) 'Enforceable as a wactical matter' means that the emission or other standards contained in a oermit or comoliancesche

lie Include:

fa) Technicallv accurate emission standards and the wttions the sourcethat are subiectto the standards;

@) A time oeriod adeauate to demonstrate comoliancewith thg mdards: and

fc) The method the source shall use to achieve and demonstrate compliance with the limitations and standards. includinq pmmriate monitorina, recordkeeoina, and remrtina. (66) 'Eauivalent method' is defined bv 40 C.F.R. 60.2. For puraoses of this detnition, 'administrator" means both the U.S.

-

### VOLUME 37. NUMBER 

### 2-AUGUST 1,2010

EPA andthe cabmet. (671 'Excess NOx emissions" is defined bv 40 C.F.R. 96.2. 1681'E~em~t mwund' or 'exemDt solvent' means an omanE not ~articioatina inatm0SDheric ohotochemical reaction% 669) 'Existina source' means a source that is not a new 

### source. 1701 'Extreme nonattainment countv' or 'extreme nonaftainment area' means a countv or oortion of a countv desianated extreme nonattainment for the national ambient air aualitv standard for ozone 01) "OF' means dearee Fahrenheit. L72) 'Federal land manaaer" is defined bv 40 C.F.R. 51.166(b1(24). a31 'Federallv enforceable' is defined bv 40 C.F.R. 51.166(b)(17L For ourooses of this definition, 'administrator
meansthe U.S. EPA. flfl under401 KAR 52:020 or 52:030. as aoorooriate. 1751'Fixed ca~ital cost" defined bv 40 C.F.R. 51.166(b)f551. 176) 'Fossil fuel" 1sdefined bv 40 C.F.R. 96.2. 1771 'Fossil fuel fired' is defined bv 40 C.F.R. 96.2. 1781 .ft' means feet or foot. 179) 'Fuel" means natural aas: oetmleum: coal: wood: or q form of solid, iiauid, or aaseous fuel derived from these materials jp 180) 'Fuaitive emissions": [a) Means those emissions that could not reasonablv oass prouah a stack. chimnev, vent, or other functionallv eauivalent o~eninq: {b) Is defined bv 40 C.F.R. 51.166(b)(201for 401 KAR 51:017; 

# -- YL Ic) Is defined bv 40 C.F.R. 51.165(a1(11(ix) for 401 KAR

-> 

## --- 1811'a" means aram. 182) 'aal" means aallon. (83)'General fund' is deftned bv KRS 48.010(15)fa). (84) "Generator" is defined bv 40 C.F.R. 96.2. 185) "GI' means arain. J86) "HCI" means hvdrochloricacid. 

### (8n'Heat inout" is deflned bv 40 C.F.R. 96.2. Forwmoses of this definition. 'administratorameans Me cabinet. 188) 'HF' means hvdrwenfluoride. (89) 'Ha' means mercurv. {go) "Hiahterrain' is defined bv 40 C.F.R. 51.166(b)(25L 1911'hr means hour. 192) 'Hvdrocarbon" means an oraanic comaound consistinq predominantlvof carbon and hvdroaen. 193) "Hvdrocarbon combustion flare' means: (a) A flare usedto wmolv with an aoolicable New Source Performance Standard (NSPS) or Maximum Achievable ControlTechnoloav (MACT) standard, includina uses of flares durina startuo. $hutdown, or malfunction ~ermilted underthe standard: or (b) A flare that serves to control emissions of waste streams worked~redominatelv of hvdrocarbons and containina no more than 230 ua/dscm hvdroaen sulfide, (94) "HD means water. 195) "HX? means hvdmaen sulfide. 196) %SOC means sulfuric add. (971 'in' meansinch. 1981 'lncineration'>eans the Drocess of iannina and buminq @id, semisolid. Iiauid. or aasews combustiblewastes. (99) 'Industrial boileror turbine' means a fossil fuel-fired boiler. combustion turbine, or a combined cvde svstem havina a maxipun desian heat lnout of 250 MMBTU oer houror more Mat is not 

### an electric aeneratina unit. 1100) 'Innovative contrd technoloourn is defined bv 40 C.F.R. $1.166(b)f191. 11011 'Intermittent emissions' means emissions of ~artlculate matter into the ooen air from a process that oreratesfor less than anv six (6) consecutiveminutes. 1102) J m 

# .. ears ioule. (103) 'Ka%eans kilwram. 1104) '1' means liter. 11051"Ib" means wund.

has the authontvto enforce a certaln restriction. 

### IlOn'Lona drv kiln' means a kiln that emolavs no oreheating of the feed and has a dw inletfeed. (108) 'Lona wet kiln' means a kiln that emolovs Moreheating



### p 1109) 'Low terrain' means an area other than hiahterrain. (1 10) 'Lowest achievable emissions rate' or 'LAER' is defined bv 40 C.F.R 51.165(a)(l)(xiii). fill)'m' means meter. (112) 'ma' means cub~c meter. (1131 'Malor emlsslons unit' is defined bv 40 C.F.R.

1121) Warainal nonattainment countv' or 'marainal nonattainment area' means a countv or oortion of a countv desianated marginal nonattalnment for the national ambient air aualitv standard lor 

## ozone. (1221 'Maximum desian heat inwt" is defined bv 40 C.F.R.

nc o I".=. 

## - (1231 'Maximum ootential hourlv heat inout' is defined bv 40 C.F.R. 96.2. 11241 'Maximum wtential NOx emlssion rate' is defined bv 40 C.F.R. 96.2. 11251 'Maximum rated hourlv heat inout' is defined bv 40 C.F.R. 96.2. ,(I261 'Ua' means microaram 11271 'Ma' means milliaram. i1281 'Mid-kiln firina' means the secondarv firina in kilns by lnieotina solid fuel at an intermediate mint in the kiln usina a soedallv desianed feed iniection mechanism for the wrwse of decreasina NOx emissions thmuah: la) Bumina Dart of the fuel at a lower temoerature: and Lb1 Reduclna-conditionsat the solid waste iniection ooint that
mav destroy some of the NOx formed uDstream In the kiln burning 

### zone. (1291 'mln' means minute. 11301 "Mmor source baseline date' is defined bv 40 C.F.R 51.166(b1(14)fiil- (iv1. (1311"MJ" means meaaioules. 11321'mm' means millimeter, (133) 'MM' means million. /I341 'mom means month. 11351 'Moderate nonattainment counN or 'moderate nonattainment area'means a countv or wrtion of a countv deslanated moderate nonattainmentfor the national ambient air aualitv stan

### d! (136Mal 'Mod~fication'is defined bv40 C.F.R 60.2. 1b) Exceotions to the definition of "modification' are lisfedh40 C.F.R 60.14(el. For ourwses of this definition. 'administtator' means the cabinet. (1371 'Monitorina device" means the total eouiment. reauired bv an apolicable administrative reaulation in401 KAR Chaoters 50 $ 65. used to measure and record, if aoolicable. orocess oarame- ters. 

## - (1381 'Monitorina svstem' means a monitorina svstem that

### VOLUME 37, 

### NUMBER 2

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meetsthe reauirements of 40 C F.R. Pall96. 1139) 'MWe' means meaawatt electrical. U40) "Nr means nitmen. 1141) "Nameplate ca~acitv' is defined bv 40 C.F.R. 96.2. 1142) 'Natural conditions' means those naturallv occurrinq phenomena that reduce visibilitv as measured in terms of visual me, contrast, or coloration. 1143) 'Necessaw areconstruction aoorovals or oermits" Is

pedszero; 1. An increase in emissions from a oarticular ohvsical chanae
or chanae in method of ooeration at a stationaw source as calculated oursuant to 401 KAR 51:017. Section 1(4), or 401 KAR 51:052. Section l(2): and 2. Anv other increases and decreases in actual emissions at the maior stationaw source that are contemooraneous with the pp emissions for calculatina increases and decreases under this oaraaraphare determined as defined inthis section. {b) An increase or decrease in actual emissions is contemwcreasefrom the chanae occurs: and 2. For construction that commences on and after Januarv 6, 2002. the chanae occurs between the date five (5) vears before constwction on the chanae mmences, and the date that the lncreasefrom the chanae occurs. An Increase or decrease in actual emissions is creditable

j.The cabinet or the US. EPA has not relied on the chanae in issuina a permit for the source oursuant to 401 KAR 51:017, 51:052, or 40 C.F.R. 52.21: and 2. The oermit is in effect at the time the increaseor decrease in actual emissions from the oartiwlar chanae occurs. Ld) An increase or decrease in actual emissions of sulfur diodde. oartiwlate matter, or nitrooen oxides that occurs before the aodicable minor source baseline date is creditable onlv if it is reouired to be considered in calwlatina the amount of madmum allowable increases remainina available. For articulate matter. onlv PM," emissions are used to evaluate the net emissions inpease for PMlo. (e) An increase in actual emissions is creditable onlv to the extent that the new levelof actual emissions exceeds the old level. If) A decrease in actual emissions is creditable anlv to the

-- - extent that: 1. The old level of actual emissions or the old level of allowable 

### eh emissions: 2. The decrease is enforceable as a oradical matter at and after the time that actual construction on the oarticular chanoe beains: and 3. The decrease has aooroximatelv the same aualitative sianificance for oublic health and welfare as that attributed to the inpse from the oartiwlar chanae. LalAn increasethat results from a ohvslcal dlanae at a source occurs if the emissions unit on which construction occurred bec~m placement unit that rewires shakedown becomes ooerational only gfter a reasonable shakedown oeriod, notto exceed 180davs. (hl The term. actual emissions, as defined in subsection (2) of this section does not aoolv in determinina creditable increases and decreases.

- 1145) "New source" means a source, the construction. reconsification date as defined in the ao~licable administrative reoulation. irresoectiveof a chanae in emission rate. 1146) 'Nitroaen oxides'means all oxides of nitrwen exceot nitrous oxide, as measured bv test methods soedfied bv the cabi- net. 

## - (147) 'no' means nanoarams. (1481 'NO' means nitricoxide.

- (149) 'NO.' means nitmaen dioxide. 1150) 'Nonattainment maior new source review oroaram' or 'NSR oroaram' is defined bv 40 C.F.R. 51.165(al(ll(ml. For pumosesof this definition. 'administrator' meansthe U.S. EPA. (151) 'NOf means nitmaen oxides. 1152) "NOxallowance' is defined bv 40 C.F.R. 96.2. (153) 'NOx Allowance Trackina Svstem (NATS)' is defined by 40 C.F.R. 96.2 For ourooses of this definition. 'administrator' means the U.S. EPA. 11541 "NOx authorized account reoresentative?~ defined bv 40 C.F.R. 96.2. (1551 'NOx budaet emiss~ons limitation' means, for a NOx budaet unit. the tonnaae eauivalent of the NOx allowances available for comoliance deducQonfor the unit and for a control Deriod under 401 KAR 51360 adiusted bv deductions of sufficient NOx allowances to accountfor fa) Actual utilizat~on under 40 C.F.R. 96.42(e) for the control 

### oeriod: (b) Excess NOx emissions for a orior control oeriod under 40 C.F.R. 96.54(d); 

### LC) Withdrawal from the NOx budaet Droaram under 40 C.F.R. 96.86: or {dl A chanae in reaulato~ status for a NOx budaet oot-in source under 40 

### C.F.R. 96.87. 1156) 'NOx budaet out-in source' means an affected facilitv that has elected to become a NOx budaet unit under the NOx Budaet Tradina Proaram and whose NOx budaet out-in oermit has been issued and is in effect. U57) 'NOx budaet source' is defined bv 40 C.F.R. 96.2. 11581 'NOx Budaet Tradina Proaram' is defined bv 40 C.F.R. 96.2. 

## - 1159) 'NOx budaet unit" means a unit that is subied to the NOx Budaet Tradina Proaram emissions limitation under 401 KAR 51:160 or 40 C.F.R. 96.80. 1160) "NOx budaet unit operator" means a Denon who oDerates. controls, or suoervlses a NOx budaet unit, a NOx budaet source. or a unit for which an aoolicationfor a NOx budaet out-in permlt under 401 KAR 51395 issubmmed and not denied or withdrawn and includes a holdina comoanv, utilitv svstem. or olant manaaerof a NOx budaet unit or source. U61) 'NOx budaet unit owner' means: la) A holder of a oortion of the leaal or eauitabletile in a NOx budaet unit or in a unit for which an aoolication for a NOx budaet 99 withdrawn: [b) A holderof a leasehold interest ina NOx budaet unit or in a gnit for which an aoolicationfor a NOx budaet oat-in oermit under 401 KAR 51.195 is submitted and not denied or withdrawn; IclA ~urchaser of Dowerfrom a NOx budaet unit or from a unit for wh~ch an aoolicationfor a NOx budaet out-in oermit under 401 KAR 51:195 is submitted and not denied or withdrawn under a life- of-the-unit. firm Dower contractual arranaement and unless ex-

- - g~esslv orovided for in a leasehold aareernent, does not indude a passive lessor, or a oerson who has an eouitaMe interest thmuah the lessor. whose rental mvments are not based. either directlv or Indlrectlv. uoon the revenues or income from the NOx budaet unit or the unit-for which an aoolicationfor a NOx budaet out-in permit



## or (dl For anv aeneral account, a oerson who has an 0wner~hi~ interest with resoect to the NOx allowances held in the aeneral account and who is subiect to the bindina aareernent for the NOx aulhorized account representativeto remesent that oerson's own

### ershio. (162) '0," means owaen. (163) 'O*" means ozone. 1164) 'OoaciN is defined bv40 C.F.R. 60.2. (165) 'O~eratina' means, for a NOx budaet unit, havina documented heat inout for more than 876 hours in the six (6) months jmmediatehr ~re~edina the submission of an a~oliition for an initial NOx budaet permit. (166) "Ooerator' means, lor a NOx budaet unit, anv Dersonwho omrates. controls. or suoervises a NOx budaet unit. a NOx budaet source, or unit for which an aoolication for a NOx budaa mt-in oermit is submitted and not denied or withdrawn, and includes anv holding companv, utiiitv svstem. or olant manager of the unit or source. 1lt unit under the NOx Budaet Tradina Pmaram throuoh a final Nm bud& oot-in oenit.

m#. n 1168) 'Owner'. for a NOx budaet unit. is defined bv 40 C.F.R.
I0.L. 1169) 'Owner or ouerator" isdefined bv40 C.F.R. 60.2.

-- -- J170) 'oz" means ounce. 1171) 'Ozone deoletina ootential' or 'ODP'. means oursuant to 40 C.F.R. Part 82. Sub~art A, Aouendices A and 8.the ratio of the total amount of ozone destroved bv a fixed amount of an ozone deoletina substance to the amount of ozone destroved bv the
same mass of trichlorofluoromethane(CFC-11) inwhich the ozone deoletina wtential of CFC-11is eaual to one and zero-tenths (1.01. j172) "Ozone deoleGa substance" or 'ODs means any chemical COm~ound reaulated under 40 C.F.R. Part 82 with decay products, after the ohotoivsis of the ODs bv short-wave ultraviolet llc 

## ozone. 1173) 'PAL effective date" is defined bv 40 C.F.R. 51.166(~)(2)(vi). 174) "PAL effective oeriod' is defined bv 40 C.F.R.

wM2)hii). 

### 9 'PAL maior modification' is defined bv 40 C.F.R. 51.166(~)(2)(viii). (176) 'PAL oemit" is defined bv40 C.F.R. 51.166(~)(2)(ix). ([ (178) "Particulate matter" Isdefined bv 40 C.F.R. 60.2. 1179) 'Particulate matter emissions" is defined bv 40 C.F.R. 51.100(~~1. exceot as used in 40 C.F.R. Part 60. [I801 "Peak load" means the maximum instantaneous ouerat-



### -- 11811 "Permitted caoacitv factor" means the annual oermitted fuel use divided bv the manufacturer's soecified maximum fuel consumotion multioliedbv 8.760 hours oer vear. 1182) "Person' is defined bv KRS224.01-010(17). 1183) 'Plant-wide aodicabilitv limitation' or 'PAL' means an emission limitation, exmessed in tons oer vear. for a wtlutant at a

-- major stationaw source. that is enforceable as a oractical matter and is established source-wide in accordance with 401 KAR part of its desian if the limitation is enforceableas a uracticalmat

# -

2. This definition does not alter or affect the useof this term for other ourooses of the Clean Air Act 42 U.S.C. 7401-7671~. or the ierm 'ce~acitv factof as used in the Acid RainProaram; (b) Is defined bv 40 C.F.R. 51.166(bM4\ for 401 KAR 51:017; P1 Ic) Is def~nedbv 40 C.F.R. 51.165(a)(l)(iii) for 401 KAR 51:052. 

### - (191) 'wb' means oarls 

### uer billion. (192) 'cam' means Dartsoer million. 1193) 'oom(w/w)' means Darts oer million (weight bv weiaht). 1194) 'Precalciner kiln' means a kiln in which the-feeededto the kiln svstem is oreheated in cvclonechambers and utilizes a second bumer to calcine material in a seuarate vessel attached lo the preheaterorior to tt~e finalfusion in a kilnthat forms clinker. 1195) 'Predictive emissions monitorina svstem'or 'PEMS' is defined bv 40 C.F.R. 51.166(b)(44). 1196) 'Preheater kiln' means a kiln inwhich the feed to the kiln svstem is oreheated in cvclone chambers DriOrto the final fusion in 

### VOLUME 37, NUMBER 2 -AUGUST 1,2010



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# - - 53. or bv an eauivalent method designated in accordance with 40 C.F.R. Part 53. (185) "PMIo' isdefined bv 40 C.F.R. 51.100(aal, U86) 'PMIo emissions' means finelv divlded solid or liauid -1 with an aerodvnamic diameter less than or eaual to a nominal ten I101micrometers emitted to the ambient air as rneaspred bv an aodicable reference method. or 

### an eauivalent or alteri soecifiedinthe KentuckvSIP. 1187) 'Pollution orevention' is defined bv 40 C.F.R. 51.166(bM381. (( bv wlverizino clinker consistina essentiallv of hydraulic calaum silicates. U891 'Portland cement kiln'rneans a svstem. includlno solid, 

## DD fuse raw materials. includina limestone and ciav. to oroduce Portland cement clinker. (1901 'Potential to emit" or 'PTE': la) Means the maximumcaoacihrof a stationaw source to emit
a ~ollutant under its ohvsicaland omrationaldesion. inwhich:

source to emit an air wliutant, indudina air wllution control eauioment and restrictions on hours of ooeration or on the tweor amount of material combusted. stored, or orocessed. is treated as 1200) 'Psia' means oounds oer sauare inch absolute. (201) bsia" means ~0undS oer sauare inchaaae. 1202) "RACT/BACT/LAER Clearinahouse' or 'RBLC' means the U.S EPA's online collection of ~revious RACTBACTILAER determinations. 12031 'Reactivation of a velv clean coal-fired EUSGU' is defined bv 40 C.F.R. 51.166(b1(371. (204) 'Reasonable further oroaress' is defined bv 42 U.S.C.

U.S=EPA. L205) 'Reconsthction' means the reolacement of comments of an edstina affected facilitv to the extent that: (a) The fixed caoital cost of the new comwnents exceeds fifty L50) percent of the fixed caoital cost that would be reauiredto construct a muarable entirelv newaffectedfacilitv:and /bl It is technoloaicallv and economicatlv feaslble to meet the goolicable reauirementsof 401 KAR Chapters 50 to 65. 4206) 'Reference methodweans a method of sarnolina and analvzina for an air oollutant as published in 40 C.F.R. Part 50. Aooendices A to N: 40 C.F.R. Part 53: 40 Part 60. Aooendices A and 6: 40 C.F.R. Part 61, Aouendix B: or 40 C.F.R. Part 63. AopendicesA to D. 1207) 'Reaulated NSR oollutant" is defined bv 40 C.F.R. 51.166(b#49). 1208) 'Reolacement unit" is defined bv 40 C.F.R. 51.166113)(321. 1209) "Rewwerina' is defined bv 40 C.F.R. 51.166(b)i361. For purwses of this definition. 'administrator' meansthe U.S. EPA. 1210) "Resoonsibleofficial" isdefined bv 40 C.F.R. 70.2. (211) 'Runo is defined bv 40 C.F.R. 60.2. (212) 'S' means at standard conditions. 1213) 'sec' means sewn& 1214) 'Secondaw emissions* is defined bv 40 51.166(b)(l81. 1215) "Serious nonattainment countv' or 'serious nonaltainmerit area' means a countv or wrtion of a countv desianated se- @ous nonattainmentfor the national ambient air aualitv standardfor Ozone. 1216) 'Severe nonattainment countv' or 'severe nonattainment grea' means a countv or wriion of a countv desionated severe nonattainment for the national ambient air oualitv standard for 

## ozone. 1217) 'Shutdown' ms thecessationof an ooeration. 1218) 'Sianificant" is defined bv:

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Section 2. Incorporation by Reference. (I) 'Standard Industrial Classification Manual', 1987, as published by the Office of Management and Budget is incorporatedby reference. (2) This materialmay beinspected, copied or obtained, subject to applicable copyright law, at the following main and regional office of the Kentucky Division for Air Quality during the normal working hours of 8a.m. to 430 p.m., localtime: (a) Kentucky Division for Air Quality, 200 Fair Oaks Lane, 1st floor, Frankfort, Kentucky40601-1403, (502) 564-3999; (b) Ashland Regional Office, 1550 Wolohan Drive, Suite 1, Ashland, Kentucky41 102, (606) 929-5285; (c) Bowling Green Regional Offii, 1508 Westen Avenue, BawlingGreen, Kentucky 42104, (270) 746-7475; (d) Florence Regional Office, 8020 Veterans Memorial Drive, Suite 110, Florence, Kentucky41042, (859) 525-4923; (e) Frankfort Regional Office, 643 Teton Trail, Suite B, Frankfort, Kentucky 40601, (502) 564-3358; 

### (9 Hazard Regional Offi,233 Birch Street, Suite 2, Hazard, Kentucky41701, (606) 435-6022; (g) London Regional Office, 875 S. Main Street, London, Kentucky 40741. (606) 330-2080; (h) Owensboro Regional Office, 3032 Alvey Park Drive, W., Suite 700, Owensboro, Kentucky42303, (270) 687-7304; and (i) Paducah Regional Office, 130 Eagle Nest Drive, Paducah, Kentucky42003, (270) 8984468. (3) The Standard IndustrialClassification Manual is also available under Order No. PB 87-100012 from the National Technical Information Service, 5285 Port Royal Road, Springfield, Virginia 22161, phone (703) 4874650.

LEONARD K. PETERS, Secretary APPROVED BYAGENCY: July 14,2010 FILEDWITH LRC: Jdy 14,2010 at 3 p.m. PUBLIC HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this admlnlstrative regulation shall be held on August 24, 2010, at 2 p.m. (local time) in Conference Room 201 B
on the flrst floor of the Division for Air Quality at 200 Fair Oaks Lane, Frankfort. Kentucky. Individuals interested in being heard at this hearing shall notify this agency five (5) wo&days priot to the heanng of their intentto attend. If no notification of intentto attend the hearing is received by that date, the hearing may be canceled. This hearing is open to the public. Any person who wishes to be heard shall be given an opportunity to comment on the pwsed administrative regulation. Y you do not wish to be hea7d at the public hearing, you may submit written comments on the proposed administrative regulation.Writtencomments shall be accgpted until close of business on August 31,2010. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person listed below. The hearingfacil~ty is accessibleto personswith disabilities. Requests for reasonable ammmodat~ons, including auxiliary aids and se~ces necessaryto partlclpateinthe hearing, may be made to the contact person at least five (5) workdays priorto the hearing. CONTACT PERSON: Laura Lund, Environmental Technologist II, Divisionfor Air Quality, 1st Floor, 200 Fair Oaks Lane, FmnMort, Kentucky 40601, telephone (502) 564-3999. ext. 4428, fax (502) 5644666. emall maiito:Laura_Lund@ky.gov.

REGULATORY IMPACTANALYSIS AND TIERINGSTATEMENT

htactPerson: Laura Lund, Environmental Technologist I1 (1) Provide a brief summary of: (a) What this administrative regulation does: This administrative regulation defines the terms used in401 KAR Chapter51. (b) The necessity of this administrative regulation: This administrative regulation provides clear and consistent definitions for terms used in401 KAR Chapter 51. (c) How this administrative regulation conforms to the content of the authorizing statutes: The statutory authority for this regulation is given in KRS 224.10-100(5), which providesthe cabinet the authority, power, and dutyto prevent and control air pollution. KRS 224.10-100(26) requires the cabinet to Issue regulations 

### that are no more stringent than federal requirements. The definitions contained in this administrative regulation are not more stringent or otherwise differentthan the corresponding federal definitions. (d) How this administrative regulation currently assists or will assist in the effective administration of the statup: Thls administrative regulation assists the public and the regulated community by providing clear and consistent definitionsfor terms used in 401KAR Chapter51. (2) If this is an amendmentto an exjsting administrative regulation, provide a brief summaryof: (a) Howthe amendmentwill change this dstingadministrative regulation: This amendment revises definitions to reflect amendments made to the New Source Review (NSR) program at the federal level. The Preventionof Significant Deterioration and Title V Greenhouse Gas Tailoring Rule (Tailoring Rule), published as a final rule on June 3, 2010, amends and creates definitions that significantly impact the Prevention of Significant Deterioration (PSD) and litle V permitting programs. The amendments are to the definitions for 'Regulated NSR pollutant", which includes greenhouse gases (GHGs) as a regulated NSR pollutant under the Clean Air Act; 'Major source', which indudes air pollutants subject to regulation; and the inclusionof a definitionfor 'Subject to regulation', which indudes the greenhouse gas emission thresholds to trigger PSD and Title V permitting. (b) The necessity of the amendment to this administrative regulation: The definition amendments are necessary at the state level to ensure consistency between state and federal programs. The Tailoring Rule establishesJanuary2,2011, as the trigger date for GHGs to become regulated. If Kentucky's State lmplernentation Plan (SIP) is not revised by that date to include these requirements, the SIP will be found deficient, and the U.S. EPA will have authority to issue a Federal Implementation Plan (FIP). Serious consequences of a FIP include loss of PSD and Title V program approvals and loss of federal highway funds. EPA clearly states their intent in the preamble to the final rule, "For any state that lacks the ability to issue PSD or Title V permits for GHG emissions
sources consistentwith the final rule, we [EPA] intendto undertake a separate action to call for revisions to these programs. We [EPA] also intend to move quickly to impose a FiP for PSD through 40 C.F.R. 52.21, and use our federal Title V authority to ensure that GHG sources will be permitted consistent with the final rule." This amendment also darifies that small businesses will not be regulated solely because of their greenhouse gas emissions bytailoring the threshold limits. (c)How the amendmentconformsto the content of the authorizing statutes: KRS 224.10100(26) requires the cabinet to issue regulations that are no more stringent than federal requirements. This amendment maintains consistencywith corresponding federal definitions affecting Kentucky's PSD and Title V permitting programs. (d)How the amendment will assist in the effective administration of statutes: This amendment will provide clear and conslstent definitions of terms used in 401 KAR Chapter 51 to prevent and control air pollution. (3) Ust the type and number of individuals, businesses, organizations, or state and local governments affected bythis administrative regulation: Any facility with the capacity to emit greenhouse gases at or above the thresholds specified in the GHG Tailoring Rule, which changes to 401 KAR 51:001 incorporate, would be affected by the changes to this regulation. This includes PSD and Title V sources of greenhouse gas emissions but does not affect smaller emitters of greenhouse gases. EPA has estimated that without the Tailoring Rulethere would be 82,000 permitlingactions nationwide per year necessaty to address greenhouse gas emissions, but with the implementation of the rule that number is reduced to 1,600 nationwide. The Divislon for Air Quality has estimated this regulation change to affect 30 

### - 40 permitting actions peryear in Kentucky. Ifthese amendments are not made, the U.S. €PA will find Kentucky's SIP deficient and exercise their authority to Issuea construction ban to prevent the construction or modiicationof a major emittingfacility (pursuantto CAA s167) untila FIP is issued. (4) Provide an assessment of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change if it is an amendment: Changes to the current regulation will indude the regulationof greenhouse gas emissions. For those sources emitting at or above the major source threshold for greenhouse gas emissions, new permitswill have to be issued. (a) Listthe actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative 

### VOLUME 37, 

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# - 468

# - regulation or amendment: Sources permffled under the Title V program will have to submit a permit application identlfying and reporting the emissions but there will be no new requirements or standards imposed on the source. Sources permitted under the PSD program will have to submit a permit application including Best Available Control Technology (BACT) reviewfor greenhouse gas emissions. @) In complying with thls administrative regulation or amendment, how much will it cost each of the entities idntified in question (3): There are no emission fees associated with the regulation of greenhousegas emissions. For those sources that must provide a BACT anaiysis, there is the additional cost to meet the requirements of the BACT determination. Additionally, sources requiredto obtain a new permit will have the expense of completing a permit application. EPA has estimatedthat a Title V permit applicationfor greenhouse gas sources would cost each source, on average, between $23,200and $46,400. (c) As a result of compliance, what benefits will awe to the entities identified in question (3): These major sources will remain in compliance with stateand federal regulations. (5) Provide an estimate of how much itwill cost the administrative bodyto irnplementthis administrative regulation: (a) Initially: The inclusion of greenhouse gases in stationary source permits will require the Division for Air Quality to expnd staff to review the increased permit load and inspect changes madeto sources as a resultof this regulation. @) On a continuing basis: The cabinet must maintainthe additiinal staff in orderto handle the inuease in permit issuance. EPA has estimated that a Title V permit applicationfor greenhouse gas sources would cost a permitting authority, on average, between $9,844 and $19,688 to process each source permit. (6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation: Any additional expense incurred by the Divisionfor Air Quality to regulate greenhouse gas emissions would be paid for through Title V emission fees. The cabinet is not requesting additional general funds for the implementationand enforcement of the regulation. (7) Provide an assessment of whether 

### an inuease in fees or funding will be necessary to irnplement this administrative regulation, if new, or by the change if it is an amendment. The cabinet is 

### not requesting additional general funds for the implementation of this administrative regulation. However, Title V emission fees may be impacted by the implementation of this administrative regulation.(8) State whether or not this administrative regulation established any fees or directly or indirectly increased any fees. This administrative regulation does not establish fees, but as stated above in (7). TitleV emissionfees may be impacted. (9) TIERING: Is tiering applied? Yes. The Tailoring Rule amends the threshold of greenhouse gas emission levels subject to regulation. This tiering revisionwas necessary to prevent small businesses and individuals from becoming subject to permitting requirements solely due to greenhousegas emissions.

FEDERALMANDATE ANALYSIS COMPARISON

1. Federal statute or regulation constituting the federal mandate. As a SIP-approvedstate for the PSD program under 40 C.F.R. 51.166, recent changes inthe fedeml PSDiNSRand TtkV programs make it necessary to revise the regulation in order to maintainfederal approvabllHy. Failure to do so will result Ina Federal Implementation Plan. 2. State compliance standards. The state compliance standards are found inKRS224.10-100(5). 3. Minimum or uniform standards contained in the federal mandate. Changes in the federal definitions for this program necessitatechanges inthe state definitions. 4. Will thls administrative regulation impose stricter requirements, or additional or different responsibilities or requirements, than those required bythefederal mandate? No 5. Justification for the imposition of the stricter standard, or additional or different responsiMlMes or requirements. The detinitions contained inthis administrative regulation are not more stringent or otherwise different than the corresponding federal defini-tions.

FISCAL NOTE ON STATE OR LOCALGOVERNMENT

1.Does tMs administrative regulation relate to any program, service, or requirements of a state or local govemment (including cities, counties, fire deparhents,or schooldistricts)?Yes 2. What units, parts or divisions of state or local government (including cities, counties, fire departments, or schod districts)will be impacted by this administrative regulation? This administrative regulation impacts the Divlsionfor Air Qualityas the applicabilityof other administrative regulations is altered. Any state or local government that emits greenhouse gases in the thresholds subject to the PSD or Title V permitting programs would be requiredto obtaln a permitfrom the Divisionfor Air Quality. 3. 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), (26); 42 U.S.C. 7401, 7410, 7471, 7607; 40 C.F.R. 51.1 66. 4. Estimate the effect of this admlnistrative regulation on the expenditures and revenues of a state or local govemment agency (including cities, counties, fire departments, or school districts) for the firstfull year the administrative regulationisto be in effect. (a) How much revenue will this administrative regulation generate for the state or local govemment (including cities, counties, fire departments, or school districts) for the first year? This administrativeregulationdoes not generate revenue, but Title V fees may be impactedby the lmplementationof this regulation. (b) How much revenue will this admlnistrative regulation generate for the state or local govemment (includmg cities, counties, fire departments, or school districts) for subsequent years? This administrative regulation does not generate revenue, but Title V fees may be Impactedbythe lmplementationof this regulation. (c) How muchwill it mt to administerthis program for the first yeat7 The U.S. EPA has estimated that it will cost the permitting authority between $9,844 and $19,688 per permit issued, and the Division for Air Quality has estimated 30 

### - 40 permit actions per year. Therefore, it is estimated that an increase of between $300,000 and $800,000will be necessaryto operatethis program. (d) How much will it cost to administer this program for subsequent years? The U.S. EPA has estimated that it will cost the permitting authority between $9,844 and $19.688 per permit issued, and the Division for Air Quality has estimated 30 

## - 40 permit ac tions per year. Therefore, it is estimated that an increase of between $300,000 arid $800.000 will be necessary to operate this program.

ENERGY AND ENVIRONMENTCABINET Departmentfor Environmental Protection Division for Alr Quality (Amendment)

401 KAR 52:001. Definitions for 401 KAR Chapter 52.

RELATES TO: KRS 224.01-010. 224.10-100. 224.20-100, 224.20-1 10, 224.20-120, 40 C.F.R. Parts 50-53. 60-63. 70-78. 42 U.S.C. 7401-7671q STATUTORYAUTHORITY: KRS224.10-1 00(5) NECESSTPI. FUNCTION. AND CONFORMITY. KRS 224.10- 100(5) requires the cabinefC&i&] to promulgate administrative regulations for the prevention, abatement, and control of air pollution. There is no federal mandate for this administrative regulation. This administrative regulation defines the terms used in 401 KAR Chapter 52. The definitions contained In this administrative regulation are neither
more stringent nor otherwise different than the correspondingfed era1definitions.

Section 1. Definitions. (1) 'Acid Rain Program' means the national program for reducing SQ and NOx emissions established under 42 U.S.C. 7651 to 76510 (Tie IV of the Act) and codifiedat 40 C.F.R. Parts 72to 78. (2) 'Act" means the Clean Air Act established under 42 U.S.C. 

### VOLUME 37, 

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### -AUGUST 1,2010



# - 469

# - 7401to 7671q. (3) 'Actual emissions' is defined bv 40 C.F.R. 51.166(b)(21)JJ



### ... . 

## . )tin, road, or other entity or series of entities that emits or may emit an air contaminant intothe outdoor atmosphere. (5) 'Affected source' means a source that indudes one (1) or more affected units. (6) 'Affected astat&] means state[&&] that: (a) Borders[Bdw] Kentucky and whose air quality may be affected bythe proposed permit, permit revision, or permit renewal;
or (b) 

### Mke]situated within fifty (50) miles of the source requesting the proposed permit action. (7) 'Affected unit" means a unit subiect to the Add Rain Pro-



### . . gram. (8) 'Air contaminant' is defined

# wkt]KRS 224.01-010(1). (9) 'Air pollutant' meansair contaminant. (10) 'Air pollution' is defined L?u[iR]KRS224.01-OlO(3). (11) 'Air pollution control equipment" means a mechanism, device or contrivance usedto control or preventair pollution, that is not, aside from air pollution control laws and administrative regulations, vital to productionof the normal product of the source or to its normal operation. (12) 'Alternative method" is defined bv 40 C.F.R. 60.2. For pt~roosed of this definition. 'administrator" means both the U.S. EPA and the cabinet.[-



### -1 (13) 'Ambient air" is defined bv 40 C.F.R. 50.l(e).[fwm&?at


### -1 (14) 'Ambient air quality standard" means a numerical expression of a spedfied concentration level for a particularair contaminant and the time averaging interval over which that concentration level is measured and is a goal to be achieved in a stated time through the application of appropriate preventive or control measures. (15) 'Applicable requiremenr means a state-origin or federally enforceable requirementor standardthat appliesto a source. (16) 'Batch mix plant" means a source or affected facility that produces hot mix asphalt by heating and drying the aggregate ina drver before seoaratinq and mixinq it with asphalt cement in seaarAe batches. ' 

### - 

## - (17) 'Cabinet" is defined 

### & KKA 224.01-010i9).['~ 

### -1 (18) 'Capital expenditure' is defined

## MI] 40 C.F.R. 60.2. (19) 'Commence' meansthat an owner or operator has undertaken a continuous program of construction, modification, or reconstruction of an affectedfacility, or that an owner or operator

### has entered into a contractual obligation to undeltake and complete, within a reasonable time, a continuous program of construction, modification, or reconstrudionof an affected facility. (20) 'Construction' means fabrication, erection, installation or modiicationof an aircontaminantsource. (21) 'Continuous monitoring system" means the total quipmeni, &&tired under the appliae administrative regulations 

### .h 401 Chapters 50-65. used to sample, to condition (iapplicable). to analyze, and to provide a permanent rewrd of emissions or process parameters. ' (22) 'Control device' means equipment such as an Incinerator or carbon adsorber used to reduce, by dest~ction or removal, the amount of air pollutants In an air stream prior to discharge to the ambientair. (23) 'Control system' means a combinationof one (1) or more capture systems and control devices working in concert to reduce dischargesof pollutantsto the ambientair. (24) 'Designated representative' means a person authorized by the pwner or ooeratorf-] of 

### an affected source and of all affected units at the source, as evidenced by a certificate of representationsubmitted to the U.S. EPA in accor-dance with 40 C.F.R. 72.20(b), to represent and legally bind each
owner and operator, as a matterof federal law, in all matters pertaining to the Acid Rain Pmgram. In matters relating to the acid rain porkion of a Title V permit, the term 'responsible officialm& defined inthis section. meansthe designated representative. (25) 'Draft permir meansthe version of a federally enforceable permit, which the cabinet offers for public review and any appliibleaffected state review. (26) 'Dmm mix plant' means a source or affected facility that produces hot mix asphalt by heating, drying, and mirdng the aggregatewith asphaltcement inone (1) operation. (27) "Emergency" means a situation arisingfmm a sudden and reasonably unforeseeable event beyond the control of the source 

### that:lW%t?+]

' (a) Requires immediate corrective action to restore normal

operation; (b) Causes the source to exceed a technology-based emission limitation in the permit due to unavoidable increases in emissions attributable to the emergency; and (c) L&&W] not include noncompliance caused by improperly designed equipment, lack of preventive maintenance, careless or improperoperation, or operator error. (28) 'Emission standard' means the numerical emression of auantitv oer unit of time or other Darameterthat limits the amount of a reoulated air wllutant that a source or emission unit is allowed to emit to the ambient air. {{or activitv of a source. that emits or has the wtential to emit a reaulatedair wllutant and does not alter the definitionof the term 'unit'
as used inthe Acid Rain Pmaram. 

### ({a Source as orescribed in 401 KAR 50:038. made effective Aoril 12, IgSg.FF"'"'^".m



## . . -1 (31) 'Enforceable as a practical matter' means that the emission or other standards contained in a permit or compliance schedule include: (a) Technically accurate emission standards and the portions of the source that are subject to the standards; (b) A time periodadequateto demonstrate compliancewith the standards; and (c) The methodthe source will use to achieve and demonstrate compliance with the standards. including appropriate monitoring, recordkeeoino. and rewrtino. 

### VOLUME 37, 

### NUMBER 2

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# - 470

# - (lo 42 U.S.C. 7412; (el A standard or reauirement of the Acid Rain Propram: 

### if)A reauirement established oursuant to 42 U.S.C. 7414(a)(31
or 7661dbl for monitorinaand comDliancecertification; (a) A national ambient air aualitv standard or increment or visibilitv reauirement oursuant to 42 U.SC. 7470 to 7492 for a temwraw source oermitted ounuant to 42 U.S.C. 7661del; Ih) A standard or other reauirement for consumer and com

### fifi pursuantto 42 U.S.C. 7511 b(0: and !jl A standard or other reauirement to orotect stratosoheric oe U.S. EPA determines that those reauirements need not be contained in the aermit.[p



### -1 (35) 'Final permit" means: (a) For a federally enforceable permit, the version issued by the cabinet that has completed all the applicable review procedures of 401 KAR 52.100 and for which a final determination has been madeA7] (b) For a state-origm permit, the version that meets the applicable provisions of 401 KAR 52:040, and for which a final determination has been made. (36) 'Fixed capital cost"means the capital needed to pmvide allthe depreciable components. (37) 'FuelWeans natural gas: oetmleum: ml: woodIm 

### ,I or a form of solid, liquid, or gaseous fuel materials for the purpose of creating useful heat. (38) 'Fugitive emissions' means those ernlsslons that could not reasonably pass through a stack, chimney, vent, or other functionally equivalent opening. (39) 'Hazardous air pollutanr or "HAP" means a pollutant listedpursuantto 42 U.S.C. 74120). (40) 'Hot mix asphalt plant" means a stabonaty source or portable affected facility that manufactures hot mix asphalt by heating and drying aggregate and mixing itwith asphaltcements. (41) 'Hydrocarbon' means an organic compound consisting predominantly of carbon and hydrogen. (42) 'Incineration' means the pmcess of igniting and burning solid, semisohd, liquid, or gaseous combustible wastes. (43) 'Intermittent emissionsSmeans emissions of particulate matter Into the open air from a pmcess that operates for less than (32) "'Eq&alent metho% is defined bv 40 C.F.R. 60.2. For pumoses of this definition. "administrator" means both the U.S. EPA and the cabinet.'-

-

f2eFmm&] (33) 'Exempt compound" or 'exempt solvent' meansan organiccompoundlistedinthe definitionof volatile organic compoundas not participabngin atmospheric photochemical reactions. (34) 'Federallv enforceable rmuiremenr meansan itemsoecified inthis subsectton as it amlies to an emission unit at a swrce subiect to 40 C.F.R. Part 70. indudina a reauirementorornulclated woroved bv the U.S. EPA in coniunction with the oermit issuance butwhich has future-effective comoliancedates. lal A standard or reauirement in the SIP that imolements the 

### fi mrnulaated at 40 C.F.R. Part 52, fb) A term or condition of a oreconstruction omitissued our

### sp yantto 42 U.S.C. 7401to 7515; ({

### VOLUME 

### 37,NUMBER 2

### -AUGUST 1,2010

anysix (6) consecutive minutes. (44) 'KyEIS' means the Kentuckv Emissions Inventow Svs-

.. . 

## . . tem.(45) 'Major source' is defined bv 40 C.F.R. 70.2. For oumses of 401 KAR Cha~ter 52. 'subied to reaulation: is defined bv this &ministrative reaulation'.[p



### ... -1 (46) 'Major source threshold' means PTE: (a) For HAPs: 1.Ten (10) tons peryear or more of a single HAP; 2. Twenty-five (25) tans per year or more of wmbined HAPs;
or 3. A lesser quantity that the U.S. EPA establishes in a final ~lemaking; or (b) 100tons per year or more for regulated air pollutants other than HAPs, exceptthat 1. Forozone nonattalnmentareas: a. 100 tons per year or more of volatile organic compounds or nitrogenoxides inareas classified as marginalOr moderate; b. Fifty (50) tons per year or more in areas classified as se-

. . . - rious; c. Twenty-five (25) tons per year or more in areas dassified

### as severe; or d. Ten (10) tons per year or more in areas classified as extreme; 2. Fii(50) tons per year or more of carbon monoxide for carbon monoxide nonattainment areas that are classified as serious and in which stationary sources contribute significantly to carbon monoxide levels; or 3. Seventy (70) tons per year or more of particulate matter (PMlo) for PMao nonattainment areas classified 

### as serious. (47) 'Malfunction' is defined bv 40 C.F.R. 60.2.[wm+a-s&



### -1 (48) 'Marginal nonattainment county' or 'marginal nonattainment area' means a county or portionof a 

### county designated marginal nonattainment for the [-] national ambient air qualitystandard for ozone ['i] (49) "Minor source' means a stationary source that emits and has the potential to emit less thanthe major source thresholds. (50) "Moderate nonattacnment county" or 'moderate nonattainment area" means a county or portionof a county designated moderate nonattainmentfor the [cse+)kw] national ambient air oualitv standard for ozonel-1. ' (&)&I) "Modification"

## k defined by 40 

### c.C.R. 602. Lbl Exceutionsto the definitionof 'modification' are listed in40 C.F.R. 60.14(e). For aumoses of this definition. "administrator"

-- means the cabinet.[-

(52) 'Modification under iitle Iof the A& means adiange at a facility that constiMes[wwk%wWk] a modifmtion under 42 U.S.C. 7470to 7492or 42 U.S.C. 7501 to 7515. (53) 'Opacity' is defined bv 40 C.F.R. 60.24-



## . . -1 (54) 'Owner or operator' isdefined bv40 C.F.R. 602.[mean~



### . . 

# ~ ~1 (55) 'Person' -.[-

,# v 

### -1 (56) 'Potential to emir or 'PTE" means the maximum capacity of a stationary source to emit a pollutant under its physical and

### VOLUME 37, 

### NUMBER 2 

## -AUGUST 1,201

### 0 operational design inwhich[W]: (a) A physical or operational limitation on the capacity of a source to emit an air pollutant, induding air pollution control equipment and restrictionson hours of operation or on the type or amount of material combusted, stored, or processed jSlskidClw] treated as part of its design if the limitation is enforceable as a practical matter; and (b) This definition does not alter or affect the use of 

### this term for other purposes of the Act or the term "capacity factor' as used inthe Acid RainProgram. (57) 'Proposed pennit' means the version of a permit tMt the cabinet proposes to issue and submit to the U.S. EPA for 

### a fortyfive (45) day review period. (58) 'Reconstruction' means the replacement of components of an eldsting affected facilityto the extent that: (a) The fixed capital cost of the new components exceedsfifty (50) percentof the tixed capital cost that would be requlred to 

### consbuct a comparable entirely new affectedfadliv, and (b) It is technologically and economically feasible to meet the applicable requirementsin401 KAR Chapters 50 to @.J%] (59) "Reference method" means a method of sampling and analyzing for an air pollutant as published in 40 C.F.R. Part 50, Appendices A to N; 40 C.F.R. Part 53; 40 C.F.R. Part 60, Appendices A and 8; 40 C.F.R. Part 61, Appendix 8; or 40 C.F.R. Part 63, Appendices A to D. (60) 'Regulated air pollutant' means: (a) Nitrogenolddes; (b) Volatile organic compounds: (c) A pollutantfor which a national ambient air qual~ty standard has been promulgated pursuant to 42 U.S.C. 7409 (Section 109 of the Act); (d) A Class Ior Class iI substancesubject to a standard promulgated or established pursuantto 42 U.S.C. 7671 to 7671q (Title VI of the Act); (e) A pollutant subject to a standard promulgated pursuant to 42 U.S.C. 7411: (f) A hazardous air pollutant (HAP) subject to a standard or other requirementestablished pursuantto 42 U.S.C. 7412. (61) 'Renewal' means the process by which a permlt Is reissued atthe end of its ~ermit term. (62) '~es~onsibld official' is defined bv 40 C.F.R. 70.2.I~



### . . Pr-



### -1 (63) 'Sectron 502(b)(10) changes' means changes that contravene an express perm* term and does not indude changes that would violate applicable requirements or contravene federally enforceable perrnit terms and conditions that are monitoring (induding test methods), recordkeeping, reporting, or compliance certification requirements. (64) 'Shutdown' meansthe cessation of an operation. (65) 'Source' means one (1) or more affected facilities 

### contained within a given contlguous property line, which means the properly is separated only by a publlc thoroughfare, stream, or other rightof way. (66) 'Standard' means 

### an emission standard, a standard of performance, or an ambient air quality standard promulgated In 401



### . 

## . KAR Chaoters 50 to 651'h^- hdwdedk]Quality or the emission control requirements ne cessaryto complywith 401 KAR Chapter51. (67) 'Start-up' or 'startu~'meansthe setting inoperation of an affected facility. (68) 'State implementation plan' or 'SIP" means the moat recently prepared plan or revision required by 42 U.S.C. 7410, mwkisk] has been approved by the U.S. EPA. (69) 'State-origin permit' means a permit that is issued pursuant to 401 KAR52040 and is not federally enforceable. (70) 'State-origin requirement' means an applicable requirement contained in 401 KAR Chapters 50 to 65, which is not mandated bythe Act and is notfederallyenforceable. (71) 'Stationary source" means a building, StNcture, affected facility, or installation that emits or may emit a regulated air pollutant. (72) 'Subiect to reaulation" is defined bv 40 C.F.R. 70.2 for the Title V oroeram. 

# a TtieV permit' means a permit issued under Kentuckv's Title V oroaram. n4Nr

49@& 

### tTafJ 'Title V program' means a state operating permit program approved by the U.S. EPA pursuant to 42 U.S.C. 7661 to 7661f mtleV of the Act). @)&4)] '~dtal suspended particulates" or 7SP" Is defined by 40 C.F.R. 51.100(ss).

tZtij] 'Tpf meanston peryear. 

### m-1 "US. EPA" meansthe U.S. EnviromentalProtection Agency. 

### m-1 'Volatile organic compound' or 'VOC" is defined ~i-& C.F.R. 51.100(s).- a@l+] 'Waste oil' means a petroleum based or synthetic oil such as an enaine lubricant enoine oil. motor oil. or lubricatino oil for use in an lkemal cornbusti& engine, or a lubricant for mhr transmissions, gears, or axles which through use, storage, or handling has become unsuitable for its original purpose due to the presenceof impuritiesor lossof original properties.

LEONARD K. PETERS, Secretary APPROVED BYAGENCY: July 14,2010 FILEDWITH LRC: July 14,2010 at 3 p.m. PUBLIC HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this administrative regulation shall be held on August 24. 2010. at 2 p.m. (local time) in Conference Room 201 

### B
on the first floor of the Division for Air Quality at 200 Fair Oaks Lane, Frankfolt, Kentucky. Individuals interested in being heard at this hearing shall nowthis agency five (5) workdays prior to the hearing of their intentto attend. If no notificationof intent to attend the hearing is received by that date, the hearing may be canceled. This hearing is open to the public. Any person who wishes to be heard shall be glven an opportunity to comment on the proposed administrative regulation. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted until dose of business on August 31,2010. Send written notiflcatianof intentto be heard at the public hearing or written comments on the proposed administrative regulation to the contact person lited below. The hearingfacility is accessiMeto personswith disabilities. Requests for reasonableaccommodations, induding auxiliaryaids end services necessaryto participate inthe hearing, may be made to the contact personat leastfive (5) workdays priortothe heariflg. CONTACT PERSON: Laura Lund. EnvironmentalTechnologis4 11, Divisionfor Air Quality, 1st Floor, 200 FairOaks Lane, Frankfort, Kentucky40601. phone (502) 564-3999, ext. 4428, fax (502) 564- 4666, email Laura-Lund@ky.gov.1' Contact person: Laura Lund, Environmental Technologist I1 (1) Providea brief summary of: (a) What this administmtive regulation does: This administrative regulationdefines the terms used in401 KAR Chapter52. @) The necessityof this administrative regulation: This administrative regulation provides dear and consistent definitions for tenns usedin401 KAR Chapter52. (c) HOW this administrative regulation conforms to the content of the authorizing statutes: The statutory authority for this regulation is given in KRS 224.10-100(5), which provides the cabinet the authority, power, and duty to prevent and control air pollution. KRS 224.10-100(26) requires the cabinet to issue regulations that are no more stringent than federal requirements. The definitions contained in thin administrative regulation are not more stringent or otherwise differentthan the corresponding federal definitions. (d) How this administrative regulation currently assists or will assist inthe effective administration of the statutes: This administrative regulation assists the public and the regulated community by providing dear and consistent definitions for terms used in401 KAR Chapter52. (2) If this is an amendmentto an existing administrative regulation, provide a brief summary of: (a) Howthe amendment will change this existing administrative regulation: This amendment revises definitions to reflect amendments made to the New Source Review (NSR) program at the federal level. The Prevention of Significant Detenoration and Title V Greenhouse Gas Tailoring Rule (Tailoring Rule), published as a fnal rule on June 3. 2010, amends and creates definitions that significantly impact the Prevention of Significant Deterioration (PSD) and Title V permitting programs. The amendments are to the definitions for 'Regulated NSR pollutant', which indudes greenhouse gases (GHGs) as a regulated NSR pollutant under the Clean Air Act 'Major source'. which indudes air pollutants subject to regulation; and the inclusionof a definitionfor 'Subject to regulation", which includes the greenhouse gas emission thresholds to trigger PSD and Title V permitting. (b) The necessity of the amendment to this administrative regulation: The definition amendments are necessary at the state level to ensure consistency between state and federal programs. The Tailoring Rule establishes January 2,2011, as the bigger date for GHGs to become regulated. If Kentucky's State lmplementation Plan (SIP) is not revised by that date to include these requirements, the SIP will be found deficient, and the US. EPA will have authority to issue a Federal lmplementation Plan (FIP). Serious consequences of a FIP include loss of PSD and Tile V program approvals and loss of federal highway funds. EPA clearly states their intent in the preamble to the final rule, 'For any state that la& the ability to issue PSD or Title V permits for GHG emissions
sources consistent with the final rule, we [EPA] intend to undertake a separate action to call for revisions to these programs. We [EPA] also intend to move quickly to impose a FIP for PSD through 40 C.F.R. 52.21, and use our federal Title V authority to ensure that GHG sources will be permittedconsistent with the final rule.' This amendment also darifies that small businesses will not be regulated solely because of their greenhousegas emissions bytailoring the threshold limits. (c) HOW the amendment wnforms tothe content of the authorizing statutes: KRS 224.10-100(26) requires the cabinet to issue regulations that are no more stringent than federal requirements. This amendment maintainsconsistency with corresponding federal definitions affecting Kentudqfs PSD and Title V permitting programs. (d) How the amendment will assist in the effective administration of statutes: This amendment will prcvide dear and wnsistent definitions of terms used in 401 KAR Chapter 52 to prevent and control air pollution. (3) List the type and numberof individuals, businesses, organizations, or state and localgovernmentsaffeded by this administrative regulation: Any facility with the capacity to emit greenhouse gases at or above the thresholds spedfied in the GHG Tailoring Rule, which changes to 401 KAR 52:001 incorporate, would be affscted by the changes to this regulation. This includes PSD and 

### VOLUME 37, 

### NUMBER 2 -AUGUST 1,2010



# - 473

# - Title V swrces of greenhouse gas emissions but does not affect smaller emitters of greenhouse gases. EPA has estimated that wiM the Tailoring Rulethere would be 82,000 permittingactions nationwide per year necessary to address greenhouse gas emissions, but with the implementation of the rule that number is reduced to 1,600 nationwide. The Division for Air Quality has estimated this regulation change to affect 30 

## - 40 permiffing actions per year in Kentucky. If these amendments are not made, the U.S. EPA will find Kentucky's SIP defident and exercise their authority to issue a construction banto prevent the constructionor modification of a major emitting facility (pursuantto CAA $167) until a FIP is issued. (4) Provide an assessment of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change if it is an amendment: Changes to the current regulation will indude the regulation of greenhouse gas emissions. For those sources ernitting at or above the major source threshold for greenhouse gas emissions, new permits will have to be issued. (a) Listthe actlons that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment: Sources permitted under the Title V program will have to submit a permit application identifying and reporting the emissions but there wll be no new requirements or standards imposed on the source. Sources permitted under the PSD program will have to submit a permit application including Best Available Contrd Technolcgy (BACT) reviewfor greenhouse gas emissions. (b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identifM in question (3): There are no emission fees associated with the regulation of greenhouse gas emissions. Forthose sources that must provide a BACT analysis, there is the additional cost to meet the requirements of the BACTdetermination. Additionally, sources requiredto obtain a new permit will have the expense of completing a permit application. EPA has estimated that a Title V permit applicationfor greenhouse gas sources would cost each source, on average, between$23,200 and $46,400. (c) As a result of compliance, what benefits will accrue to the entities identified in question (3): These major sources will remain incompliancewith state andfederal regulations. (5) Pmvide an estimate of how much itwill cost the administratlve bodyto Implementthis administrative regulation: (a) Initially: The indusion of greenhouse gases in stationary source permits will require the Division for Air Quality to expand staff to review the increased permit load and inspect changes madeto sources as a resultof thii regulation. (b) On a continuing basis: The cabinet must maintainthe additional staff in order to handlethe increase in permit issuance. EPA has estimated that a Title V permit applicationfor greenhousegas sources would cost a permitting authority, on average, between $9,844 and $19,688 to processeach source permit. (6) What isthe source of the funding to be used for the implementation and enforcement of this administrative regulation: Any additional expense incurred by the Divisionfor Air Quality to regulate greenhouse gas emissions would be paid for thmugh Title V emission fees. The cabinet is not requesting additional general funds for the implementationand enforcementof the regulation. (7) Pmvide an assessment of whether an increase Infees or funding will be necesstuyto implement this administrative regulation, If new, or by the change if it is an amendment. The cabinet is not requesting additional general funds for the implementation of this administrative regulation. However, TieV emission fees may ba impacted by the implementation of this administrative regulation.(8) State whether or not thii administrative regulation established any fees or directly or indirectly increased any fees. This administrative regulation does not establish fees, but as stated above in (7). TieV emissionfees may be Impacted. (9) TIERING: is tiering applied? Yes. The Tailoring Rule amends the threshold of greenhouse gas emission levels subject to regulation. This tiering revision was necessary to prevent small businesses and individuals from becoming suqect to permitting requirements solely due to greenhouse gas emissions.

### VOLUME 37, 

### NUMBER 

### 2

# -AUGUST 1,2010

FEDERALMANDATE ANALYSIS COMPARISON

1. Federal Statute or regulation constituting the federal mandate. As a SIP-approvedstate for the PSD pmgram under 40 C.F.R. 51.166, recent changes in the federal PSDINSR and Title V programs make it necessaryto revisethe regulation inorder to maintain federal approvability. Failure to do so will result in a Federal Implementation Plan. 2. State compliance standards. The state compliance standards arefound in KRS 224.10-lOO(5). 3. Minimum or uniform standards contained in the federal mandate. Changes in the federal definitions for this program necessitate changes inthe state definibons. 4. Will this administrative regulation impose stricter requirements, or additional or different respansibillties or requirements, than those required by the federal mandate? No 5. Justification for the imposition of the stricter standard, or additional or different responsibilities or requirements.The definitions contained in this administrative regulation are not more stringent or otherwise d~fferent than the corresponding federal definitions.

FISCAL NOTE ON STATE OR LOCAL GOVERNMENT

1. Does this administrative regulation relate to any pmgram, sewice, or requirements of a state or local government (including cities, counties, fire departments, or school districts)?Yes 2. What units, parts or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation? This administrative regulation impactsthe Division for Air Quality as the applicabilityof other administrative regulations is altered. Any state or local government that emits greenhouse gases in the thresholds subject to the PSD or Title V permitting programs would be required to obtain a permit from the Division for Air Quality. 3. Identify each state or federal statute or federal reguiation that requires or authorizesthe action taken by the administrative reguiation. KRS 224.10-100(5), (26); 42 U.S.C. 7401, 7410, 7471, 7607; 40 C.F.R. 51.166. 4. Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments,or school districts) for the first full year the administrative regulation isto be Ineffect. (a) How much revenue wiil this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year? This adminlstrative regulation does not generate revenue, but Title V fees may be impactedby the implementationof this regulation. (b) How much revenue wiil this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years? This administrative regulation does not generate revenue, but Title V fees may be impacted by the implementationof this regulation. (c) How much will it cost to administer this program for the first year? The U.S. EPA has estimated that it wiil cost the permittingauthority between $9,844 and $19,688 per permit issued, and the Divisionfor Air Quality has estimated 30 

## - 40 permit actions per year. Therefore, it is estimated that an increaseof between $300,000 and $800,000 will be necessary to operate this program. (d) How much will it cost to administer this program for subsequent years? The U.S. EPA has estimated.that it wiil cost the permitting authority between $9,844 and $19,688 per permit issued, and the Division for Air Quality has estimated 30

## - 40 permit actions per year. Therefore, itis estimatedthat an increase of


## - between $300,000 and $800,000 will be necessary to operate

this program. JUSTlCEAND PUBLICSAFENCABINET Office of the Secretary (Amendment) 

# :
500 KAR 2020. Filingand processing SLEO commissions.

RELATESTO: KRS 61.900-61.930 STATUTORY AUTHORITY: KRS. 61.904 NECESSITY, FUNCTION, AND CONFORMITY: KRS 61.904 authorizes the Secretaryof the Justice and Public Safety Cabinet to promulgate administrative regulationsthat are reasonable and necessary to carry out the provisions of KRS 61.900 to 61.930. Thls administrative regulation establishes the criteria and pmedures required for filing and processing applications for comrnissionsto be a special law enforcementofficer.

Section 1. Definitions. (1) 'Cabinet" means the Justice and Public safety Cabinet. (2) 'SLEO Act" means the Special Law Enforcement Officer Act found in KRS 61.900 to 61.930. 13) 'SLEO oroaram administrator' means the oerson desionated or appoint& bj the Secretary of the Justice and Public Gfety Cabinet to administer the Special Law Enforcement Officer Program whose address is: SLEO Program Administrator, Justice and Public Safety Cabinet whose address is: SLEO Program Administrator, Justice and Public Safety Cabinet, 125 Holmes Street, Frankfort. Kentucky40601.

Section2. Qualifications to Apply for Commissionas a Special Law Enforcement Officer. To qualifyfor a commissionas a special law enforcement officer pursuant to KRS 61.900 to 61.930, an individual shail comply with the conditions and requirements set forth in KRS 61.906.

Section 3. Application for Commission as a Special Law Enforcement Offcer. (1) An applicant shail meet all of the requirementsof the SLEO Act before a commission is granted. (2) An applicant shall provide to the govemmental unlt 

### two (2) complete signed and notarized SLEO Application Forms (SLEO-1). (3) The governmental unit shall submit both applicationforms to the Justice and Public Safety Cabinet SLEO Program Administrator. (4) The application forms shall contain the following information:(a) The name, address, telephone number, and detailed personal descriptionof and information aboutthe applicant; and (b) Ail arrests and convictions, including traffic offenses 

## corn

# -

violations, misdemeanors, or felonies as requested on the application and any other information necessaryto conduct a criminal historycheck. 15) Anv false, misleadina, or withholdina of information requested onthe applicationoriythe cabinet i&stlgator ~G~MU] be groundsfor rejectionwithout further consideration.

Section4. Additional Requirements. (1) Inadditionto the application form, an applicant shall provide to the govemmental unit who shall submit to the SLEO Pmgram Administratorthe following with his or her application: (a) A copy of the appiidshighschool diplomaor GED; (b) A cerlifiedcopyof 

### theapplicant's birth certificate; (c) Two (2) recent photographs of the individual (full face) measuring not larger than three (3) inches by five (5) inches and taken within the lastthirty (30) days of the date 

### the application is submiied; (d) If the applicant is a veteran, a copy of his or her military release (Form DD-214); [e) An Authority to Release information Form, SLEO-2, wMch allows the release of all necessary informationto the SLEO program administrator. It shall be signed by the applicant and witnessed bya second person; 

## (9A Letter of Intent Form, SLI3-3, completed by the govemmental unit giving the name of the applicant, the spedfic public properly to be pmtected, and the signature of the authorizing official of the requestinggovernmental unit;

### From: Lund, Laura (EEC) Sent: Friday, August 06,2010 11:30AM To: Compiler, Regs (LRC) Cc: 

### Gowins, Lora (EEC); Smith, Andrea (EEC) Subject: August 2010 ARK Corrections Attachments: August ARK Corrections.doc



### Hi Emily, A few errors were found in this month's

## ARK in the Divisionfor 

## Air Quality's regulations. I 

### have attached a 

### list of correctionswe would like made.
Thank you, Laura Lund

Laura Lund, Environmental Technologist I1 

### Kentucky Divisionfor Air Quality Program Planning & 

### Administration Branch Regulation Development Section Phone: (502) 564-3999, 

### ext. 4428

## August 2010 

## ARK Corrections to be 

# Made

401 KAR 

## 51:OOl. Definitions 

## for 

## 401 KAR Chapter 

## 51.

Section l(34) After "(34)", insert 

## ""cfm"". Delete ""Cfm"".

Section l(59) After "(59)", insert ""dscf"". Delete ""Dscf 

## "'.

Section l(60) After "(60)", insert ""dscm"". Delete ""Dscm".

Section l(85) After "(85)", insert 

# ''Y. Delete ""Gr"".



### Section l(126) After "(126)", insert 

# "'J&'". Delete 

## ""Ug"".

Section l(127) After "(127)", insert ""mg"". 

### Delete ""Mg"".



### Section l(200) After "(200)", insert ""~sia"". Delete 

## ""Psis"".

Section l(237) After "(237)", insert 

# "r.
Delete ""Tpy"".



### Section l(247) After "(247)", insert 

## "ccyd"". Delete 

## ""Yd.

Public Hearing and Public Comment Period After "(502) 564-4666, email", delete "mailto".

### 401 

## KAR 52:OOl. 

### Definitions 

### for 401 

## KAR Chapter52.



### Section l(6)

, 

### After "means", insert 

# ''a"

Section l(12) After "For", insert "p~rposes'~. Delete "purposed".

Section l(21) After "regulations in 40lY', insertthe following: KAR 

### Chanters50 to 65 Delete "Chapters 50-65".

Section l(37) After "coal; wood", insert semicolon.

Section l(45) After "to regulation", insert closed quotations. Delete colon. After "administrative regulation", delete closed quotations.

Section l(66) After "-]", 

### delete "Quality".

Section l(76) After 

# "-I", insert 

# "r.
Delete 

## ""Tpy"".

# PUBLIC COMMENT 

# PERIODSteven 

### L. Beshear Governor 

### Energyand Environment Cabinet Department for Environmental Protection Division for Air Quality 200 Fair Oaks Lane, 1st Floor Frankfort, Kentucky40601 -1403 www.air.ky.gov



### August 25,2010

Ms. Emily Caudill Regulations Compiler Legislative Research Commission Capitol Annex Room 029 Frankfort, Kentucky 40601

Dear Ms. Caudill: Leonard K. Peters Secretary



### As a follow-up to an 

### earlier phone conversation and pursuant to the notification requirements in KRS Chapter 13A.270, the Kentucky Division for Air Quality did not receive comments during the public hearing that was held on August 24, 2010. Comments were not received during the public hearing, but comments are anticipated to be 

### received by 

### the end ofthe public comment period. The hearing agenda included the following administrativeregulations, filed with your office on July 14, '2010, and published in the August 1, 2010, 

## Administrative Register ofKentucky.

401 

### KAR 51:OOl. Definitions for 401 

### KAR Chapter51. (Amendment) 401 KAR 

### 52:OOl. Definitions for 401 

### KAR Chapter52. (Amendment)



### Please feel free to contact me at 564-3999, ext. 4428, or Laura_Lund@ky.gov if 

### any questions arise concerningthe administrative regulations or the public hearing.

Sincerely,

Laura Lund Environmental TechnologistI1 Regulation Development Section

An Equal Opportunity

### EmployerM/F/D

--

# 4'" UNITED STATES 

### ENVIRONMENTAL PROTECTIONAGENCY REGION 4 ATLANTAFEDERALCENTER 61 FORSYTH STREET ATLANTA, GEORGIA 30303-8960 

### August 

## 19,2010

John S.Lyons, Director Kentucky Energy and Environment Cabinet, Division ofAir Quality 200Fair Oaks Lane, 1' Floor Frankfort,Kentucky 40601

# - 1403

Dear

## Mr. Lyons:

TheRegion 4 Office ofthe Enviromenta1ProtectionAgency 

## (EPA) received the Kentucky DivisionofAir Quality's July 15,2010prehearing submittal proposing revisionstothe Kentucky State ImplementationPlanregarding Greenhouse Gas

## provisionsasamended in the June3,2010TailoringRule. These amendmentsrevise the definitions

## in 401 Kentucky Air Regulations (KAR) 

## Chapter5

## 1:001and 52:001 -Attainment and MaintenanceoftheNational AmbientAir 

## Quality Standard and Permits, Registration andProhibitory Rules 

## -Defiitions, respectively. We have completed our review and have the comment below regarding revisions to 410 

## KAR 51:001 Section 1(go)@) and (c)to incorporate amendmentsfromthe Fugitive EmissionsRule.

OnMarch 31,2010,EPA stayedthe Fugitive EmissionsRule (73 FR 77882)for 18- months to October 3,2011,

## to allowthe Agency 

## time to propose, take comment and issue a hal actionregardingthe inclusion offugitiveemissions

## in new source review applicability determinations. Therefore, the 40 

## CFR 

## Part 51

## and 52 administrativeregulationsthat were amendedforthe Fugitive Emissions Rule, are 

## stayed through October 

## 31,201

## 1. Pending final 

## resolution ofthe issuesregarding the Fugitive Emissions Rule,wewill 

## make afmal 

## determinationon actionregardingthis

## portion ofyour SIPrevision request.
We appreciate your transmittalofthispackage 

## for our consideration. If you have any 

## questions, please contactLynorae Benjamin at (404) 562-9040, orhave your 

## staffcontact TwunjalaBradley ofthe EPA 

## Region 4 staff

## at (404) 

## 562-9352.
Sincerely,

Chief 

## Air PlauningBranch

Enclosure

cc: Laura

## Lund, KDAQ

Internet Address 

### (URL) http://www.epagov R*cYCl~*cyclrble.Ptlnted wllh Vegetable 08BasedInksonReq*d Paper(Minimum30%Poslcanwmer)

# DinsmomShohlLLP

ATTORNEYS 

## AUG 

## 2

. 

### ,

Lloyd

### R Cress, Jr.

502-352-4612 ~sty.CIeSS@din~la~.~~m



### August 

### 30,2010

Laura Lund, Environmental Technologist

### I1 Division forAir 

### Quality lSt 

### Floor, 200 Fair Oaks

### Lane Frankfort

## KY 40601



## RE: Kentucky AssociationofManufacturers Comments onProposedAmendments to 401 

## KAR 51

### :001 and 

### 401 KAR 52:OOl



## Dear Ms. Lund:

Enclosedplease find the commentsofKentucky AssociationofManufacturers

### withrespect the abovereferencedproposedahinistrativeregulations. 

## Ifyou have questions,please donot hesitate to 

### contactme. 

### Sincerely,

Lloyd 

## R. Cress, 

### Jr.

cc: C. 

### Gregory Higdon 

## R Bruce Scott John 

## S.Lyons

314 West Main Street hanldorf KY 40601 502.352.46lO 502.352.4609 fax www.dinslawwm

### Comments of Kentucky Association ofManufacturers Proposed Amendments to 401

## KAR 51:001 

### and 401

## KAR 52:001 

### August 30,2010



### Established

## in 191

### 1,the Kentucky AssociationofManufacturers

## ("KAM")

## istheCommonwealth's oldest industrial trade association. The Association's mission is to raise the prosperity of all Kentuckians by protecting and growing the Commonwealth's economic engine, manufacturing. 

## KAM seeksto enhancethe competitivenessofmanufacturers byshapinga legislativeand regulatory environment conducivetoeconomicgrowth,

## andtoincreaseunderstandingamongpolicymakers,the media, and the general public about the importance of manufacturing to America's economic strength. 

### KAM supports environmental programsthat arebased on sound science, considercostbenefit relationships, and consider technical and economic feasibility. KAM appreciates the opportunity to submit the following comments regarding the Energy and Environment Cabinet's (Cabinet") proposed amendmentsto the abovereferencedregulations.

General Comments

Shortlyafter the current federal administration took office inJanuary 2009,therewasaclearchange in the way that the United States Environmental Protection Agency ("U.S. EPA") viewed the manufacturing and business community, as well as the role of states in the administration of environmental protection requirements. This new approach has been strikingly negative and aggressive. This has been evidentinU.S. EPA1sapproachto 

### the regulation of Greenhouse Gases ("GHGs").

US.

## EPA's inappropriate regulationof GHGs

## hasbeen calculated, swift, anddecisive. U.S. EPA's intent

## toregulateGHGs was well-entrenchedbeforethe endangennentfinding provided

## analleged legal basis to regulate GHGs. The "Tailoring Rule" was in draft form months before the endangermentfinding

## waspublishedinDecember 2009. Theendangerment findingreliedheavily

ondata

### hm theIPCCFourthAssessmentReport,which, in

### turn,reliedondatahm theUniversity ofEast Anglia's Climatic Research Unit 

### ("CRU"). The CRU data 

### and the endangerment

## find'i have recently been challenged by several industry groups after 

### evidence indicated that global temperature data hadbeenmanipulated. U.S. EPAhasdismissedthese challenges, asserting that the filings"provideno evidencetoundermine ourdetermination" that GHGs 

### area threattohealthand welfare. Thelegitimacyof theendangermentfindingwillbeultimately decidedby thecourt

## system; until 

### the 

### courts decide or Congresstakes action, the business community, and the economy, will continue

## to beparalyzed byU.S. EPA's GHGagenda.

U.S. EPA's poorly-based attempt

### toregulate GHGs isyet another attackon industry

## in Kentucky. From its inception, this administrationhas waged a war on all of Kentucky's energy businesses including the coal 

### industry and businesses utilizing coal for energy. With the delay of mining pennits,rulestounreasonably strengthen regulationof

## sulfurdioxide, and rules

## to

## imposeexcessive limits oncoal-jiredboilers, U.S. EPAhas Kentucky'seconomy squarely

## withinits crosshairs.

### Finally, U.S. EPA's activities have taken place in direct contravention of a healthy federal-state relationship. The agency's overreaching

### has notbeen inconcert, andoften in conflict, with states' views.

The TailoringRule
The TailoringRuleisthe first

## GHGregulationwith significantimpact.ontheregulated

## community and the states administering the programs. It is a far-reaching program, which currently only addresses two stages ofregulation, but outlines the framework for ratcheting down thresholds to include smaller GHG sourcesinthe future. Itisyettobedetermined what Best Achievable Control Technology ("BACT") for GHGs will be, but, based upon today's technology, it is clear that manufacturers will be unalterablyharmed 

### in attemptingto control GHGs. 

## In fact, U.S. EPA has providedno methodologyto 

### provide 

### an estimate of emissions reductions, if any, associatedwith GHGregulationor anymeans to provide an

### estimateofthecostsofBACTcontrols. Withoutthese, it is questionablewhether the Cabinet can meet its statutory obligationsunder KRS 

### Chapter 13A relatedto cost estimations. The Tailoring Rule redefines the Prevention of Significant Deterioration and Title

## V permitting programstoregulateGHGsatthresholds that arenot supportedby theClean

### AirAct. TheCAAwas never contemplatedas 

### a vehicleto regulateGHGs andisnot suited for thatpurpose. Severalstates andprivate entitieshave filed lawsuits challengingtheTailoringRule. Kentucky's manufacturing community is disappointed that the Commonwealth did not join the challenges. 

### KAM is also disappointedthattheCabinetchosetomove forwardwith theadoptionoftheTailoring Rulewithout providing aggressivefeedback toU.S. EPA

## protestingtheunwan-anted impositionoftheprogramon businesses and government within the Commonwealth. By the Cabinet moving forward at the current pace (followingU.S. EPA1s arbitraryS self-imposeddeadlimewhich

## is contraryto

### theClean 

### Air Act), Kentucky businesses are placed 

## in the untenable position of being 

## subject 

## to a state requirement which isbased upon 

## a federal regulation that will likely

## be overturned.



### KAMunderstands and appreciates the Cabinet's interestinmaintaining primary authority forissuing permitsinthe state. The avoidanceofa dualpermittingprogramforKentucky stationarysourcesis criticaltothe manufacturingcommunity. Tothat end, 

### KAMreluctantlydoesnot oppose,but does not support, the Cabinet's adoptionof the TailoringRulein401

### KAR 51:OOl and 401 KAR 52:001 and urges the Cabinet to adequately addressthe legalconcerns addressedinthis communication. However, 

### KAMurges the Cabinettovoiceits @leasure 

### withtheregulation ofGHGsand Tailoring Rule to U.S. EPA in the strongest terms possible. KAM requests that the Cabinet supportother states that have filed challenges to the rule by participating 

## as amicus 

### curiae 

### in those suits. 

## In addition, 

### KAM requests that the Cabinet communicate with 

## U.S. EPA in writing to express the Commonwealthkobjection

### tothe regulationof GHGsandU.S. EPA'sheavy-handed tacticsutilized inimposingtheserequirementsonunwilling states. 

## KAMfurtherinsiststhatthe

### Cabinetconfirm

### in 

### its Statement of Consideration to 

### the proposed regulations that the Cabinet will, if the federal TailoringRule is withdrawn, stayed, 

## or otherwiseheld to 

### be invalid, 

## deem the rule ineffective in Kentucky dueto statutory "nomorestringent"provisions andtake subsequent actionto

### withdrawor repeal the amendments. Finally, 

### KAMrequeststhatchanges discussed in the Specific

## CO~~ll~lents below be made to theregulatorypackage.

### Specific 

### Comments



## KAM submitsthe following specific 

## commentsontheproposed 

## amendmentsto401

## KAR 51:OOl and 401

## KAR 52:OOl:

The Regulatory Impact Analysis for the proposed changes provides that the proposed amendments

### arebeingpromulgatedin

### orderto adoptchanges

### thatarenecessary

## asaresult of theU.S. EPAPreventionofSignificantDeteriorationandTitleV 

### Greenhouse

### GasTailoring Rule. Consistent

## withthis statedpurpose,

## KAM submitsthatonlythosechanges necessary


## as a result of theTailoring Rule should be promulgatedbythe Division. TheDivision

### has proposedmany revisionsnotrelatedto the TailoringRulethatwould substitute the current narrative definitions found at 401 

### KAR 51901 

## and 52001 to simply reference to the counterpart federal regulatorydefinition. In

### many instances,thewording

## inthe current state 

## and federal definitionsisdifferent andor

## has been interpretedin a differentmanner. 

## As a result, andwhile

## theDivisionmaynothave intendedit,thesechanges,ifpromulgated,may result 

### in substantive changes to Kentucky's definitions. For example, there appear to be substantive differencesbetweenthe currentstateandfederal definitionsof theterms "major source" 

## and "uilding, structure,facilityor installation'' thatmay impact Kentucky single source determinations,''nmjor modification," "malfUnction," "modification," and "visibility impairment." Kentucky's currentPSD definitions set out at 

### 51:001 are approved

## aspart of the Kentucky SIP and Kentucky's Title 

## V permitting program, including 52001, is also alreadyapprovedbyEPA. Accordingly, these changesarenot necessary and shouldnot be promulgated.

For those definitions that the Cabinet proposes to change such that 

### only the counterpart federal regulationisreferenced, the Cabinethasnotspecifiedadateforthefederalregulation incorporatedbyreference. 

### KAMunderstandsthatthis 

### "evergreent' approach

## isintendedto keep state regulations consistent with the federal regulations without the necessity of fiequent state rulemaking to stay current with the federal regulations. However, the "evergreen" approachtoincorporation by referenceoffederalregulatorydecisions

### into state regulations effectively transfers to U.S. 

## EPAthe authoritytolegislateforKentucky andto determinein thefuturethatconduct whichwould constitute

## aviolationofstatelaw. Such a delegation of state legislative authority is prohibited by Section 29 of the Kentucky Constitution. 

### See

## alsoDawson

## v. Hamilton,314 S.W.2d 

## 532 (Ky. 1958). 

## KAM submits 

### that,ifchanges to 401 KAR 5

### 1:001 and 52:001 

## areto bepromulgated, federal regulations incorporatedbyreference shouldbeidentifiedbyreferenceto their formona specificdate.



## In proposed 401 

## KAR 52:001 Section 1(3), 

### it is improper to incorporate the federal PSD definition of "actualemissions" forpurposesofKentucky's Title

### Vprogram. NOchanges

### to thisterm

## arenecessitatedbytheTailoringRuleand

### theterm should notbe changed 

## from its current definition.

KAMrequests thattheCabinetconfirmthat, 

## asprovided

### intheRegulatoryImpactAnalysis, section (4)@), the emission fee requirements 

## set forth at 401 

## KAR 50:038 will not be applicable

### to emissionsofgreenhouse gasesorC02e.

## KAMrequeststhat the Cabinet confirminthe 

## Statementof Consideration,and

## specificalty

## in the regulation,that greenhouse gases and/orC02e

### wouldnotbeconsidered

### a "regulated

## air pollutant" 

### asthat term isdefined at401

## KAR 52:001 Section l(60) andthus, even 

## afterthe currently proposed changes, would not be 

### required to be 

### considered when determining whether 

### an activity meets the definitionof"insignificant and

### trivial activities" at401 

## KAR 52:020 Section 6.



### The Kentucky Association of Manufacturers respecthlly requests the 

## Cabinet's favorable considerationofthe foregoingcomments.

### Kentucky 

## Chamber

Uruhw Burvlesk Advanc1"g Kanfuckj!



### COMMENTS BY 

### THE KENTUCKY CHAMBER OF 

### COMMERCE PROPOSED 

### AMENDMENTS TO 

### 401 

### KAR 51:001 

### AND 

### 401 KA



### On behalf of the Kentucky Chamber of Commerce and our morethan 

### 2700 member companies from across the Commonwealth,the Chamber appreciatesthe opportunityto provide these comments for the Cabinet's consideration.

GeneralComments

Pr0~0Sed Adoption of EPA's GHG Tailoring Rule

The Chamber believesthat EPA's actions to regulate greenhouse gas emissions (GHGs) underthe Clean Air Act are not supported by law and urgesthe Cabinet and other Kentucky officialsto aggressively express opposition to EPA's actions, includingjoining with other states in litigationchallenging EPA's determinationsand rulemakings. EPA's implementation of an agenda to force regulation

### of GHGs using the inappropriate vehicle 

### of the CleanAir Act has created the pending harm to the business communitythat the federal agency now cites to support its promulgation of the GHG Tailoring Rule 

## -a 

### rule EPA is using as a tool to force states like Kentuckyto adopt a programfor regulation of 

### GHGs. Unfortunately, unless there isjudicial or legislativeaction to correct EPA's course of conduct, the Tailoring Rule is available inthe short term to mitigate some of the adverse impact on our economy when GHG emissions become subject to permitting on January 2, 2011.



### The Chamber recognizesthat the Cabinet has essentially beenforced by

### the federal governmentto propose adoption of 

### the GHG Tailoring Rule. EPA has proposedto issue a SIP call affecting Kentucky and 12 other states on the basisthat the states lackthe authoriiyto regulate GHGs. The EPA proposal also would providefor issuanceof a Federal Implementation Plan (FIP) inthe state with EPA as the permitting authorityfor GHGs until Kentucky has submitted a revisionto its SIP to regulate GHG emissions inthe manner EPA desires. Althoughthe Chamber disagrees with EPA's actions, the Chamber supports Kentucky's efforts to maintain its status as the permit issuing authorityfor Kentucky business. However, it is criticalfor the Cabinetto promptly act to repeal itsadoption of the federal tailoring rule in the event of federal action resulting in elimination of GHG regulationand permitting under the CleanAir Act. Such action is infad required by KRS 13A.120which prohibitsthe Cabinet's regulationsfrom being more stringent that federal law. Further, the Chambersupports action by the Cabinetto obtain delegated authority under an EPA-issued FIPfor implementationof

## GHG permittingwithout submittal of a SIP revision package inthe short term. Ifthe Cabinet proceeds with a SIP revision it should immediatelywithdraw the revision request 

### ifthe federal regulation is significantly modified, eliminated or vacated.

The Chamber is concerned that EPA unexpectedly reversed established government precedent and practice on the treatment of carbondioxide emissions from the combustionof 

### biomass without providing adequate public notice in its finalversion of the Tailoring Rule. The rule provides insufficientinformationon how permittingauthorities shouldconsider biomass combustion sources for purposes of GHG PSDfritle V 

### permitting. Furthermore,When issuing

### the final statement of the tailoring rule, the EPA stated it does not have enough evidenceto exclude C02emissions from biogenic sources at this time- but they recognizethe issue warrants further explanation and planto seek further comments on addressing the issue. EPA has committedto a process seeking comment on this issueseparately while examiningways that forthcoming guidance can encourage bioenergy. The Chamberstrongly urgesthe Cabinet and the Division for Air Quality to actively engage EPA on this issue and to pursue a policythat is beneficial to Kentucky'sfarmers and forest owners and Kentucky's future as a biomass industry leader.

Incornorationof Federal Regulationsbv Reference

Inthis rulemaking,as with others, the Cabinet is continuingthe practice of incorporating federal regulations by reference. Although there can be benefitsto this approach, the Cabinet must be 

### mindfulthat there are fundamental differences inthe manner inwhich the federal government implements regulatory programs and the way Kentucky agencies must implement regulatory programs. For example, the federal agencies generally and EPA in particularrely on policies, guidance and memoranda that are not subjectto public notice and commentfor implementation of requirements. Such policy and guidance can also impactfederal litigation over permits, such as decisions by the EnvironmentalAppeals Board. The Cabinet is prohibited from regulatingthrough unpromulgated policy or guidance by state law. KRS 13A.130. These distinctions must continueto 

### be recognizedas these regulationsare used to implement the permitting program. Specific 

### Comments

1. The regulatory impact analysis for each proposalrelies upon EPA's cost estimates but the Chamber submits that these estimates are questionable. Forexample, BACTfor GHGs is unknown so that the cost of compliance for regulatedentities is not known andthis issue is not addressed inthe regulatory impact analysis (RIA).

2. Section (4)(b) of each RIA states: 'There are no emissionfees associated with the regulationof greenhouse gas emissions." Section (6) 

### and Section 

## (7) of the RIA statethat '[alny additionalexpense incurred by the Division for Air Quality to regulated greenhousegas emissionswill be paid for throughTitle 

### V emission fees." Please confirmthat the emissionfee requirements 

### of 401 KAR 50:038 will not applyto GHG emissions or C02e.

3. The definitionof "regulated air pollutant" under 401 KAR 52:100 remains unchanged. Please confirmthat GHGs or C02eare not considered regulated air pollutantsfor 401 

### KAR Chapter 52, including evaluation of whether activitiesare classified as trivial or insignificant and for purposes of the requirementsfor state origin and registered sources.
4. Forthose definitionswhere the proposed change is to incorporate a federal regulation 

### by reference, no specificdatefor the regulation being incorporated is provided. Although this may 

### be intendedas a way to eliminate the needfor state regulatory revisionsto incorporate changing federal requirements,this approach results in a delegation of state powerto the federal government 

## inviolation of Section 29 of the KentuckyConstitution. 

### See also, Dawson

## v. Hamilton, 314 S.W.2d 532 (Ky. 1958). The Cabinet should includethe date of thefederal regulation being incorporated.

### 5. The proposed changes to 401 KAR 52:001 incorporate definitionsfrom 

### 40 CFR 60.2 in
some instances. 

### See, e.g.,Section 

### 1(12) ('alternative method"), (32) ("equivalent method"). 40 CFR Part 60 contains the federal new source performance standards (NSPS) and is not generally applicable to all emission units. Chapter 52 applies to all types of sources including
sources that are not subject to any federal NSPS. 

### Therefore, a federal NSPS 

### definition should not be incorporated by reference.

6. 

### Similarly, the proposedchanges to 401 KAR 51:001 incorporate definitions from 40 CFR 60.2 insome instances. 

### See, e.g., Section 1 (119) ("malfunction"), (136) ("modificationn). 401 KAR Chapter 50, the chapter that governs the air program generally, already contains a regulationaddressing malfunctions,401 KAR 50:055, and a definition is provided in401 

## KAR 50:010. Incorporationof the definitionsof thefederal NSPS 

### program is not appropriateor necessary. Also, the incorporationof the NSPS definitionof 'modification" results in a substantial change inthe regulatory language of the current Kentucky definitionand eliminates important languageexcluding certain actions from being classified as modifications, such as routine maintenance, repair and replacement. These changes are not addressed in RIA. The revisionsshould not be made unless these concerns are appropriately addressed.

7. The proposal would revise401 KAR 51:001 to incorporatethe federal definition of "significant" which does not include a specific emission rate for ozone depleting substances. Both401 KAR 51:017 and 401 KAR 51:052 specify a significant ratefor ozone depleting substances. It appears the proposalcould result in a significant increasefor ozone depleting substances becoming "any emission rate." The RIA does not address the impact of such a change. The Chamber believes thresholds for significanceare in importantway to avoid unnecessaryregulationand should be maintained.

8. The incorporationof the federal definition of "baseline actual emissions" presents particularproblems because the provisions of 40 CFR 51.166(b)(47) relatedto fugitive emissions and startup, shutdown and malfunction are subject to a stay from April I, 

### 2010 through October3,201

### 1due to EPA'sstay of 

### the fugitive emission rules. Unlessa regulation with a specific date is incorporated therewill 

### be uncertainty as to the effectiveness 

### of thefugitive emissions provisions.

9. 

### The incorporation of thefederal definition 

### of "fixed capital cost" is also problematicfor similar reasons. The federal definition at 40 CFR 51.166(b)(55) was stayed indefinitely on December24,2004. The incorporationof a regulationthat is stayed only serves to create confusion and should be 

### avoided.



## , Contact Information: 

### I Chad

### A. Harpole Director, PublicAffairs KentuckyChamber of Commerce 464 Chenault Road Frankfort, KY

### 40601 502-848-8733Steven L. Beshear Governor 

### Energy and ~nvconment Cabinet Departmentfor Environmental Protection Division for Air Quality 200 Fair Oaks Lane, 1 st 

### Floor Frankfort, Kentucky 40601 -1403 www.air.ky.gov Leonard K. Peters Secretary



### September2,2010

Ms. Emily Caudill Regulations Compiler Legislative Research Commission Capitol Annex Room 029 Frankfort, Kentucky 40601

DearMs. Caudill:



## As a follow-up to an earlier phone conversation and pursuant to the notification requirements in 

## KRS Chapter 13A.270, the Kentucky Division for Air Quality did receive comments during the public comment period, ending August 31, 2010, for the following administrative regulations.

401 KAR 51:OOl. Definitions for 

### 401 KAR Chapter 51. (Amendment) 401 

## KAR 52:001. Definitions for 401 

### KAR Chapter 52. (Amendment)



### As a result of receiving comments 

## and pursuant to KRS 13A.280(2)@), the Division for Air Quality requests a thirty-day extension for filing the Statement of Consideration 

## with your office. Therefore, the Statement of Consideration will be filed no later than noon, eastern time, on October 15,2010. Please feel free to contact me at 564-3999 if any questions arise concerning the administrative regulations or the public comment period.

Sincerely, 

# c

Laura Lund Environmental Technologist 11 

### Regulation Development Section

An EqualOpportunity Employer

### M/F/D

# PUBLIC NOTICE REQUIREMENTSSteven L. Beshear Governor 

### Energy and Environment Cabinet Departmentfor Environmental Protection 

### Division forAir 

### Quality 200 

### Fair Oaks 

### Lane, 1st 

### Floor Frankfort, Kentucky 40601-1403 

### www.air. ky.gov

July 16,2010 Leonard K. Peters Secretary



### Editor CincinnatiEnquirer 

### Legal Advertising P.O. Box 00097 Cincinnati, Ohio 45274-0097

Dear Editor:
Please publish the attached notice as a prominent classified advertisement

## inthe public notice or legal ads section of your newspaper on Wednesday, July 21,2010. The advertisement should be two columns wide with length necessary to accommodatethe text.
Billing and proof of publication should be mailed to the following address immediately after publication. Michele Koziol Administration Section DivisionforAir Quality 1" 

### Floor 

### 200 Fair 

### Oaks Lane Frankfort, Kentucky 

### 40601 

### Payment cannot be made until proof of publication is received, which consists of one 

## (I) full page containing the advertisement. Please confirm receipt of this request which is being transmitted via e-rnail. Contactme with any questionsyou may have by phone at (502) 564-3999 ext.4428, by e-mail atLaura-Lund@lcy.gov, orby fax at (502) 564-4666.
Sincerely,


## ~.cund Regulation Development Section Program Planning & 

### AdministrationBranch

Attachment

cc: Michele Koziol

# hate 

# of Ohio 

# 1 1 1

# ss. Iamilton County

"onally 

### appeared 

# hire 

# P&Steven L. Beshear Governor 

### Energy and Environment Cabinet Department for Environmental Protection Division for Air Quality 200 Fair Oaks Lane, 1st Floor Frankfort,

### Kentucky40601-1403 www.air. ky.gov Leonard K. Peters Secretary



### July 16,2010

Editor The Gleaner Display Advertising P.O. Box 4 Henderson, Kentucky 42419-0004

Dear Editor:
Please publish the attached notice as a prominent classifiedadvertisementin the public notice or legal ads section of your newspaper on Wednesday, July 21,2010. The advertisement should be two columns wide with length necessary to accommodatethe text.
Billing and proof of publication should be mailed to the following address immediately after publication. Michele Koziol Administration Section Division for Air Quality 1" 'loor 200 Fair OaksLane Frankfort,Kentucky 40601


### Payment cannot be made until proof of publication is received, which consists of one 

## (1) full page containing the advertisement. Please confirm receipt of this request which is being transmitted via e-mail. Contactme 

## with any questionsyou may haveby phone at (502) 564-3999 ext. 4428, 

### by e-mail at Laura- 

### Lund@ky.gov, or by fax at (502) 564-4666.
Sincerely,


# kM RegulationDevelopment Section ProgramPlanning &

### Administration Branch

Attachment

cc: Michele KoziolThis hearing is opento the public and ail anterestedoersonsw~ll beoaven the oppsrtuolty to presenttest~mhy. To assurethatall comments areecqrately recorded,the Davision requeststhat oral comments presentedat the hearlnga?e 

# - also provided ~n writtenfarm ifbosable. Wntten mmmenlsmuitbe re- ceaved by close of businesson Au ust 31.2010, to be considered part of%e hearang record The Energy.and Enw- ' ronment Cabmet does not dlscnmlnate onthe basis of race, color, nationaiori-
, gin.'sex, age, rehgaon. ordisabil~ and provades, uppn request reasona8e aa- - commodation includind auxaliatya~ds and sewaces necessaryto afford an andivaduai wlth a dasabil~ty an equal oppor- tunity to participate in all services, programs, and actwatles.Steven L. Beshear Governor 

### Energyand Environment Cabinet Departmentfor Environmental Protection Divisionfor 

### Air Quality 200 Fair Oaks Lane, I 

### st Floor Frankfort, Kentucky 40601 -1403 www.air.ky.gov Leonard K. Peters Secretaly



### July 16,2010

Editor Daily Independent Display Advertising P.O. Box

### 3 1 1 226 Seventeenth Street Ashland, Kentucky4 1105-031 1



### Dear Editor:

Pleasepublish the atta'ched notice 

## as a prominent classified advertisementin the public notice or legal ads section of your newspaper on Wednesday, July 21,2010. The advertisement should be two columnswide with length necessaryto accommodatethe text.
Billing and proof of publication should be mailed to the following address immediately after publication. Michele Koziol Administration Section Division forAir Quality 1" 

### Floor 200 Fair Oaks Lane Frankfort, Kentucky40601 

### Payment cannot be made until proof of publication is received, which consists of one 

## (1) full page containing the advertisement. Please 

## confii receipt of this request which is being transmitted via e-mail. Contact me with 

## any questionsyou 

## may have by phone at (502) 564-3999 ext.4428, by e-mail atLauraaLund@ky.gov, orby 

## fax at 

## (502) 564-4666.
Sincerely,


# *rwtd Regulation Development Section Program Planning & 

### AdministrationBranch

Attachment

- - - 

### cc: Michele Koziol

An Equal OpporhmilyEmployerM/FIDOF CHARLESTON-Named Anl.. "v*b.r*lrc7 \uvnu,. OLU

### dent-Athlete Academic Honor roll 

### for the 2010 

### springseason.Hunter par- ticipatedin

### men's golf.



### A studentathlete qualifiesfopthe.honorroll if 

### he or she 

### maintains a 

### mini-
.mum grade-pointaverage of 3.25

### forthetermandis

### a MrlRKddA 

### regular,memberof a.yaisity athletic team^

### in sports dependentcornSteven L. Beshear Governor

, 

### Energy and Environment Cabinet Department for Environmental Protection Division for Air Quality 200 

### Fair Oaks Lane, 1st 

### Floor Frankfort, Kentucky

### 40601-1403 www.air.ky.gov



### July 16,2010

Editor LakeNews P.O. 

## Box 498 Calvert City, Kentucky 42029 Leonard K. Peters Secretary



### Dear Editor:

Please publish the attached notice as a prominent classified advertisementin the public notice or legal ads section of your newspaper on Wednesday, July 21,2010. The advertisement should be two columns wide with length necessary to accommodate the text.
Billing and proof of publication should be mailed to the following address immediately after publication. Michele Koziol Administration Section Division for Air 

### Quality lst 

### Floor 200 Fair Oaks Lane Frankfort, Kentucky40601


### Payment cannot be made until proof of publication is received, which consists of one (1) full page containing the advertisement. Please confii receipt of this request which is being transmitted via e-mail. Contactme with any questions you may have by phone at (502) 564-3999 ext. 4428, by e-mail at Laura-Lund@ky.gov, orby fax at (502) 564-4666.
Sincerely,


# kM Regulation Development Section Program Planning & 

### Administration Branch

Attachment

cc: Michele KOZ~ 

# 9 An Equal OpportunityEmployer MIFm 

# Ken-fuBuSteven 

### L. Beshear Governor 

### Energy and ~nvironment Cabinet Department for Environmental Protection 

### Division for Air 

### Quality 200 

### Fair Oaks Lane, 1stFloor Frankfort, Kentucky 40601-1403 www.air. 

### ky.gov

July 16,2010 Leonard K. Peters Secretary



### Editor Herald Leader Main and Midland Lexington, Kentucky 40507

Dear Editor:
Please publish the attached notice as a prominent classified advertisement in the public notice or legal ads section ofyour newspaper on Wednesday, July 21,2010. The advertisement should be two columnswide with length necessaryto accommodatethe text.
Billing and proof of publication should be mailed to the following address immediately after publication. MicheleKoziol Administration Section Division forAir 

### Quality 

### 1%' Floor 200 

### Fair Oaks

### Lane Frankfort,Kentucky 40601


### Payment cannot be made until proof of publication 

## is received, which consists of one 

## (1) full page containing the advertisement. Please confirm receipt of this request which is being transmitted via e-mail. Contact me with any questionsyou may have by phone at (502) 564-3999 ext. 4428, by e-mail at Laura_Lund@ky.gov, or by 

## fax at (502) 564-4666.
Sincerely,



## .ca.U%a~ Regulation Development Section ProgramPlanning &

### AdministrationBranch

Attachment

cc: Michele KoziolSteven L. Beshear Governor 

### Energyand Environment Cabinet Departmentfor Environmental Protection 

## Division for 

### Air 

## Quality 200 

## Fair Oaks Lane, 1stFloor Frankfort, Kentucky 40601-1403 www.air.ky.gov

July 16,2010

Editor Messenger-Inquirer Display Advertising P.O. Box 1480 Owensboro, Kentucky 42302-1480

Dear Editor: Leonard K. Peters Secretary



## Please publish the attached notice as a prominent classified advertisement

## in the public notice or legal ads section of your newspaper on Wednesday, July 21,2010. The advertisement should be two columns wide with 

## length necessary to accommodate the text.
Billing and proof of publication should be mailed to the following address immediately after publication. MicheleKoziol Administration Section Division forAir Quality Is'Floor 200 Fair Oaks Lane Frankfort, Kentucky 40601 

## Payment cannot be made until proof of publication is received, which consists of one (1) full page containing the advertisement. Please confii receipt of this request which is being transmitted via e-mail. Contactme with any questions you may have by phone at (502) 564-3999 ext. 4428,by e-mail atLaura-Lund@ky.gov, orby fax at (502) 564-4666. 

# I Sincerely,


# ceawLaM Regulation Development Section Program Planning &

## AdministrationBranch

Attachment

cc: Michele Koziol

An Equal 

### OpportunityEmployerM/F/D 

# K!&&uwm~r- 'JMA?,~ MYal;oblu* WwKla ULannn 61 

### ;& w~ 24 LW-&W. 61 Sm+3l~ny OPur NCIMhydilur 23-1

&n(: w-'* 64Lh!i,Alrour 26 UiOl.klW

a dMdt b* .lonuah 17 <-&*I -w wu\ 2) rmwn: nu* I L.,*p,.&r IY Ym ? .lhX 

### - 31 *uflulu.

P"&lrr' w-sw I c!doar 36 Hncn ,a lor 4 )i.*URc- 37 h%w.nd S Road,'* wml

mum 38 Lum 

## ;

E2. hnDNU'b m fsmSteven L. Beshear Governor



### Editor Times-Tribune Display Advertising PO Box 516 Corbin, Ky 40702-05 16 

# I Dear Editor: Energy and Environment Cabinet Department for Environmental Protection 

### Division forAir 

### Quality 200 

### Fair Oaks Lane, 

### 1stFloor Frankfort, Kentucky 40601-1

### 403 www.air.ky.gov

July 16,2010 Leonard K. Peters Secretary



### Please publish the attached notice as a prominent classified advertisement in the public notice or legal ads section of your newspaper on Wednesday, July 21,2010. The advertisement should be 

## two columnswide with lengthnecessary to accommodatethe text.
Billing and proof 

## of publication should be mailed to the following address immediately after publication. Michele Koziol Administration Section Division for Air Quality 1" Floor 200 FairOaks 

### Lane Frankfort,Kentucky 40601


### Payment cannot be made until proof of publication is received, which consists of one (1) full page containing the advertisement. Please confirm receipt of this request which is being transmitted via e-mail. Contactme with any questionsyou may have by phone at (502) 564-3999 ext. 4428, by e-mail at Laura-Lund@ky.gov, or by fax at (502) 564-4666.
Sincerely,

Ah4.m

### Regulation Development Section ProgramPlanning &

### Administration Branch

Attachment

cc: MicheleKoziol

KentuckyUnbridledSpirit.com An Equal OpportunilyEmployer WEDi 

### CONTACT 

### PERSON: Laura 

### Lu EnvironmentaiTechnolog~t~,R~latSteven L. Beshear Governor 

### Energy and Environment Cabinet Department

### for Environmental Protection Division 

### for Air Quality 

### 200 Fair Oaks Lane, 1st Floor Frankfort, Kentucky

### 40601-1403 ww.air.ky.gov Leonard K. Peters Secretary



### July 16,2010

Editor Daily News Display Advertising 

## P.O. Box 90012 Bowling Green, Kentucky 421 02-9012

Dear Editor:
Please publish the attached notice 

## as a prominent classified advertisementin the public notice or legal ads section of your newspaper on Wednesday, July 21,2010. The advertisement should be two columnswide with length necessary to accommodatethe text.
Billing and proof of publication should be 

### mailed to the following address immediately after publication. Michele Koziol AdministrationSection Division for Air Quality 

### 1'' Ploor 

### 200 Fair Oaks Lane Frankfort, Kentucky

### 40601


### Payment cannot be made until proof of publication is received, which consists of one (1) full page containing the advertisement. Please confirm receipt of this request which is being transmitted via e-mail. Contact me with 

## any questionsyou may have by phone at (502) 564-3999 ext. 4428, by e-mailatLaura-Lund@ky.gov, or by fixat(502) 564-4666.
Sincerely,


# Pacurau Regulation Development Section Program Planning &

### AdministrationBranch

Attachment

cc: Michele KoziolSteven L. Beshear Governor 

### Energyand Environment Cabinet Departmentfor 

### Environmental Protection Division for Air Quality 200 Fair Oaks Lane, 1st Floor Frankfort, Kentucky40601-1403 www.air.ky.gov



### July 16,2010 Leonard K. Peters Secretary



### Editor Courier Journal Classified AdvertisingDepartment 525 West Broadway P.O. 

### Box 74003 

## 1 Louisville, Kentucky 40201-7431

Dear Editor:

Please publish the attached notice as a prominent classified advertisement in the public notice or legal ads section of your newspaper on Wednesday, July 21,2010. The advertisement should be two columnswide with lengthnecessary to accommodatethe text.
Billing and proof of publication should be mailed to the following address immediately after publication. Michele Koziol Administration Section Division for Air Quality 1" Floor 

### 200 Fair Oaks Lane Frankfort,Kentucky 

### 40601


### Payment cannot be made until proof of publication is received, which consists of one (1) full page containing the advertisement. Please confirm receipt of this request which is 

## being transmitted via e-mail. Contactme 

## with any questionsyou may have by phone at (502) 564-3999 ext. 4428, by e-mail atLaura-Lund@ky.gov, orby 

## fax at (502) 

## 564-4666.
Sincerely,

.&ma

### Regulation Development Section Program Planning &

### AdministrationBranch

Attachment

cc: Michele Koziol

KentuckyLJnbridledSpirit.com An Equal OpportunityEmployer

### M/FID

## Affidavit of Publication TEE COURIER-JOURNAL 

# INC.

STATE OFRENTUCKY 

## County 

## ofJefferson

401 KAR 51:001. Definitions for 40 KAR Chapter 51. (Amendment) 401 KAR 52:001. Definitions for 40



## .KAR Chapter 5.Z (AtnendmeW


## I, 

## MargieWise ofTEE COURIER-JOURNAL, 

## kc., 

## clerk 

## of JOURNAL 

## general circulationprinted and published atL Kentucky, do solemnly swear that from my own person knowledge, and reference to the files of said publicatio advertisement of:



## Title: NOTICE 

## OF PUBLIC 

## HEARING 

# -Total Li

Date: 7/21/2010 Total Inches:

9argie %j&e 

## Signature of person making proof

Subscribed and sworn to fore me this 21ST day of

# JI

;L&ed-t& the contact person. ThF orooosed administrative reoula. 

### * tio'ns can be accessed at'd http://www.lrc.state.ky.us/KARrn~' 

## 3 LE4Ol.htm. <I



### .- -- -
. . ..- 864-3999 ext. 4428; fax numberr" (502) 664-4665: e-mall$ ~~~-iund@ky.i$o~.

. I Louisville Metro Ashland APCD Reglonal ' 850 Barret Ave. 1550Wolohan 

# 9
# 205 Dr. #l Louisville, KY40204 Ashbnd, KY 41102 1

Florence. KY

Frankfort Regional Hazard ~egbdf 200 Fair Oaks Ln. 233 BirchSt. #2 

### $ Frankfort, KY 40601 Hazard, KY 4 41701
LondonRegional Owensboro 875 S MainSt. Regional 

# 4 London, KY 40741 3032Akey parit$ Dr. W#7W 4 Owemboro, KT
"-.la.=

### Steven L. Beshear Governor 

### Energy and EnvironmentCabinet Departmentfor Environmental Protection Division for Air Quality 200 

### Fair Oaks Lane, 1st 

### Floor Frankfort, Kentucky 40601-1403 

### www.air.ky.gov Leonard K. Peters Secretary



### July 16,2010

Editor Paducah Sun Display Advertising P.O. 2300 Paducah, Kentucky 42002-2300



## Dear Editor:

Please publish the attached notice as a prominent classified advertisementin the public notice or legal ads section of your newspaper on Wednesday, July 21,2010. The advertisement should be two columnswide with lengthnecessary to accommodatethe text.
Billing and proof of publication should be mailed to the following address immediately after publication. Michele Koziol Administration Section Division for Air Quality 1" Floor

.+ 2 

### - -4 

### 200 Fair Oaks Lane Frankfort, Kentucky 40601


### Payment cannot be made until proof of publication is received, which consists of one 

## (1) full page containing the advertisement. Please confirm receipt of this request which is being transmitted via e-mail. Contact me with any questionsyou may haveby phone 

## at (502) 564-3999 ext. 4428, by e-mail at Laura-Lund@ky.gov, or by fax at (502) 564-4666.
Sincerely,
,!hLw.l?und RegulationDevelopment Section Program Planning &

### AdministrationBranch

Attachment cc: Michele KoziolSteven L. Beshear Governor 

### Energy and EnvironmentCabinet Department for Environmental Protection Division for Air Quality 200 FairOaks 

### Lane, 1

### st Floor Frankfort, Kentucky 40601 -1403 www.air. ky.gov



### July 19,2010 Leonard K. Peten Secretary



### Dear Concerned Citizen:

Pursuant to the public notification requirements of 

## KRS Chapter 13A.270, the Kentucky Division for Air Quality has enclosed a public hearing notice and RegulatoryImpact Analysis for the followingproposed administrativeregulations:

401

## KAR 51:OOl. Definitions for 401 

### KAR Chapter 51. (Amendment) 401 KAR 

### 52:001. Definitions for 401 

### KAR Chapter 

### 52. (Amendment)


### The Division filed the proposed administrative regulations with the Legislative Research Commission on July 

## 14,2010. The proposed administrative regulations will be published inthe August 1,201 0,Administrative Register 

### ofKentucky.



### The Division requests that any affected individuals, businesses, and other entities submit written comments on the proposed regulations. Copies of the regulations may be obtained from the LRC website, shownbelow, or by contactingthe Division for Air Quality.

Please refer to the attached public hearing notice for information regarding how to obtain a copy of the administrative regulations; the date, time, and location of 

## the public hearing; and written comment submittal.

Please contact Laura Lund at 

### (502) 564-3999, extension 4428, or Laura-Lund@ky.gov with any questionsor concerns.
Sincerely,

LauraLI& Environmental Technologist

## II Regulation Development Section Program Planning and Administration Branch

. . . ... . . . .. -. -. . 

### Enclosures

An Equal Opportunity Employer MIFm

### NOTICE OFPUBLIC 

### HEARING KENTUCKY DMSIONFORAIR QUALITY TOREVISE KENTUCKY'S STATE IMPLEMENTATION PLAN

## AND AIR 

### QUALITY REGULATIONS

The Kentucky Energy and Environment Cabinet will conduct a public hearing on August 24, 2010, at 2:00 p.m. (local time) in Conference Room 201

### B of the Division for Air Quality, 200 Fair Oaks Lane, Frankfort, Kentucky. This hearing will be held toreceive comments on the followingproposed administrativeregulations:

401

### KAR 51:001. 

### Definitions for 401

### KAR Chapter

### 51. (Amendment) 401

### KAR 52:001. 

### Definitions for 401

### KAR Chapter52. 

### (Amendment)
These amendments propose to revise the definitions of terms used in Kentucky's Prevention of Significant Deterioration (PSD), New Source Review (NSR), and Title 

### V regulations. The adoption of these revisions is necessary in order for Kentucky's programs to be consistent with those at the federal level and for Kentucky to continue toreceive full delegation of authorityofthe NSR program. This hearing is open to the public and all interested persons will be given the opportunity to present testimony. To assure that all comments are accurately recorded, the Division requests that oral comments presented at the hearing are alsoprovided in written form, if possible. Written comments must be received by close ofbusiness on August 31, 2010, to be considered part of the hearing record. The Energy and Environment Cabinet does not discriminate on the basis of race, color, national origin, sex, age, religion, or disability and provides, upon request, reasonable accommodation including auxiliary aids and services necessary to afford 

### an individual with a disability an equal opportunity to participate in all services, programs, and activities.

The full texts of the proposed regulations are available for public inspection and copying during regular business hours (8:OO a.m. to 4:30 p.m., local time) at the locations listed below. Any individual requiring copies may submit a request to the Division for Air Quality in writing, by telephone, by FAX, or e-mail. Requests for copies should be directed to the contact person. The proposed administrative regulations can be accessed at: 

### h~://www.lrc.state.kv.us/KAR/mLE40 1 

### .htm.

CONTACT PERSON: Laura Lund, Environmental Technologist 11, 

### Regulation Development Section, Division for Air Quality, IS'Floor, 200 Fair Oaks Lane, Frankfort, Kentucky 40601. Phone number: (502) 564-3999, ext. 4428; 

### faxnumber: (502) 564-4666; e-mail: Laura-Lund@ky.gov.

LouisvilleMetro APCD Ashland Regional Bowling GreenRegional 850 

### Barret Ave # 

### 205 1550 

### Wolohan Dr #1 1508 

### WestenAve Louisville,KY 40204 

### Ashland, KY 41 102 

### Bowling Green, KY 42104 

### Florence Regional Frankfort Regional Hazard Regional 8020 

### Veterans MemorialDr 200

### Fair Oaks Ln. 233 

### Birch St Suite 1

### 10 31d

### Floor Suite2 

### Florence, KY 41042 

### Frankfort,KY40601 

### Hazard, KY 41701


### London Regional 875 

### SMain St 

### London, KY 40741 

### Owensboro Regional 

### ., 3032 

### Alvey Park Dr 

### W 

### Suite 700 

### Owensboro,KY 42303 

### Paducah Regional 130

### Eagle Nest Dr Paducah, KY 42003



### Fayette County Clerk Hardin County Clerk Henderson CountyClerk 162EMai

### St Hardiin Co Courthouse HendersonCo Courthouse Lexington,KY40507 

### Elizabethtown, KY42701 

### Henderson, KY 42420REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT

Administrative Regulation#: 401 KAR 51:001 Contact person: Laura Lund, EnvironmentalTechnologist II
(1) Provide a briefsummary of: (a) What this administrative regulation does: This administrative regulation defines the terms used in401 KAR Chapter 51. (b) The necessity of this administrative regulation: This administrative regulation provides Clear and consistent definitions for terms used in401 KAR Chapter 51. (c) How this administrative regulation conforms to the content of the authorizing statutes: The statutory authority for this regulation is given in KRS 224.10-100(5), which provides the cabinet the authority, power, and duty to prevent and control air pollution. KRS 224.10- 100(26) requires the cabinet to issue regulations that are no more stringent than federal requirements. The definitions contained in this administrative regulation are not more stringent or otherwise different than the correspondingfederal definitions. (d) HOW this administrative regulation currently assists or will assist in the effective administration ofthe statutes: This administrative regulation assists the public and the regulated community by providing clear and consistentdefinitions for terms used in401 KAR Chapter 51.
(2) If this is an amendmenttoan existing administrative regulation, provide a brief summary of: (a) How the amendment will change this existing administrative regulation: This amendment revises definitionsto reflect amendments made to the New sour& Review (NSR) Program at the federal level. The Prevention of Significant Deterioration and Title V ~rekhouse Gas Tailoring Rule (Tailoring Rule), published as a final rule on June 3, 2010, amends and creates definitions that significantly impact the Prevention of Significant Deterioration (PSD) and Title V permitting programs. The amendments are to the definitions for "Regulated NSR pollutant", which includes greenhouse gases (GHGs) as a regulated NSR pollutant under the Clean Air Act; "Major source", which includes air pollutants subject to regulation; and the inclusion of a definition for "Subject to regulation", which includes the greenhouse gas emission thresholds to trigger PSD andTitleV permitting. The necessity ofthe amendment tothis administrative regulation: The definition amendments are necessary at the state level to ensure consistency behnreen state and federal programs. The Tailoring Rule establishes January 2, 2011, as the tngger date for GHGs to become regulated. If Kentucky's State Implementation Plan (SIP) is not revised by that date to include these requirements, the SIP will be found deficient, and the U.S. EPA wtll have authority to issue a Federal lmplementation Plan (FIP). Serious consequences of a FIP include loss of PSD and Title V program approvals and loss 

### of federal highway funds. EPA clearly states their intent in the preamble to the final rule, "For any state that lacks the ability to issue PSD or Title V permits for GHG emissions soupsconsistent with the final rule, we [EPA] intendto undertake a separate action to call for revisionsto these programs. We [EPA] also intend to move quickly to impose a FIP for PSD through 40 CFR 52.21, and use our federal Title V authority to ensure that GHG sources will be permitted consistent with the final rule." This amendment also clarifies that small businesses will not be regulated solely because of their qreenhouse gas emissions by tailorinathethreshold limits. How the amendment conforms-to the content of the authorizing statutes: KRS 224.10- 100(26) requires the cabinet to issue reaulations that are no more strinaent than federal requirements. This amendment maintain~consi~tenc~ withcorrespondingFederal definitions affecting Kentuckv's PSD and Title V aermittina aroarams. How tie amendment will assist 

### 'ln the iffective administration of statutes: This amendment will provide clear and consistent definitionsof terms used 

### in401 KAR Chapter 51 to prevent and control air pollution.


### (3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation: Any facility with the capacity to emit greenhouse gases at or above the thresholds specified in the GHG Tailoring Rule, which changes to 401 KAR 51:001 incorporate, would be affected by the changes to this regulation. This includes PSDand Title V sources of greenhouse gas emissions but does not affect smaller emitters of greenhouse gases. EPA has estimated that without the Tailoring Rule there would be 82,000 permitting actions nationwide per year necessatyto address greenhouse gas emissions, but with the implementation of the rule that number is reduced to 1,600 nationwide. The Division for Air Quality has estimated this regulationchange to affect 30 

## - 40 permittingactions per year in Kentucky. If these amendments are not made, the US. EPA will find Kentucky's SIP deficient and exercise their authority to issue a construction ban to prevent Me construction or modification of a major emitting facility (pursuant to CAA s167) until a FIP is issued.
(4) Provide an assessment of how the entlties identified 

### in question (3) will 

### be impacted by either the implementation of this administrative regulation, if new, or by the change if it is an amendment: Changes to the current regulation will include the regulation of greenhouse gas emissions. For those sources emitting at or above the major source threshold for greenhouse gas emissions, new permitswill haveto be issued. (a) Listthe actions that each ofthe regulated entitles identified in question (3) will have to take to comply with this administrative regulation or amendment: Sources permitted under the Title V program

### will have to submit a permit application identifyingand reportingthe emissions but there will be no new requirements or standards imposed on the source. Sources permitted under the PSD program will have to submit a permit application including BestAvailable ControlTechnology (BACT) review for greenhouse gas emissions. (b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3): There are no emission fees associated with the regulation of greenhouse gas emissions. For those sources that must provide a BACT analysis, there IS the add~tional cost to meet the requirements of the BACT determination. Additionally, sources required to obtain a new permit will have the expense of completing a permit application. EPA has estimated that a Title V permit appl~cation for greenhouse gas sourceswould cost each source, on average, between $23,200 and $46,400. (c) As a result of compliance, what benefits will accrue tothe entitles identified 

### in question 

### (3): These major sources will remain in compliancewith state and federal regulations.
(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation: (a) Initially: The inclusion of greenhouse gases in stationary source permits will require the Division for Air Quality to expand staff to review the increased permit load and inspect changes madeto sources as a result of this regulation. (b) On a continuing basis: The cabinet must maintainthe additional staff in order to handle the increase in permit issuance. EPA has estimated that a Title V permit application for greenhouse gas sources would cost a permitting authority, on average, between $9,844 and $19,688 to process each source permit.
(6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation: Any additional expense incurred by the Division for Air Quality to regulate greenhouse gas emissions would be paid for through Title V emission fees. The cabinet is not requesting additional general funds for the implementation and enforcement of the regulation.
(7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, ifnew, or by the change if it is an amendment. The cabinet is not requesting additional general funds for the implementation of this administrative regulation. However, Title 

### V emission fees may be impacted by the implementation of this administrative regulation. 

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

### or directly or indirectly increased any fees. This administrative regulationdoes not establishfees, but as stated above in 

### (7), Title V emission fees may be impacted. 

### (9) TIERING: Is tiering applied? Yes. The Tailoring Rule amends the threshold of greenhouse gas emission levels subject to regulation. This tiering revisionwas necessary to prevent small businesses and individuals from becoming subject to permitting requirements solely due to greenhouse gas emissions.FEDERAL MANDATE ANALYSIS COMPARISON

1. Federal statute or regulation constituting the federal mandate. As a SIP-approved state for the PSD program under 40 CFR 51.166, recent changes in the federal PSDlNSR and Title V programs make it necessaryto revise the regulation in order to maintain federal approvability. Failureto do so will result in a Federal Implementation Plan.

2. State compliance standards. The state compliance standards are found in KRS 224.10-100(5).

3. Minimum or uniform standards contained in the federal mandate. Changes in the federal definitions for this program necessitate changes inthe state definitions.

4. Will this administrative regulation impose stricter requirements, or additional or different responsibilities or requlrements, than those required by the federal mandate? No.

5. Justification for the imposition of the stricter standard, or additional or different responsibilities or requirements. The definitions contained in this administrative regulation are not more stringent Or otherwise differentthan the correspondingfederal definitions.

FISCAL NOTE ON STATE OR LOCAL GOVERNMENT

Administrative Regulation#: 401 KAR 51:001 Contact person: Laura Lund, Environmental Technologist II

1. Does this administrative regulation relate to any program, service, or requirements of a state or local government (including cities, counties, fire departments, or school districts)? Yes.

2. What units, parts or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation? This administrative regulation impacts the Division for Air Quality as the applicability of other administrative regulations is altered. Any state or local government that emits greenhouse gases in the thresholds subject to the PSD or Title V permitting programs would be required to obtain a permitfrom the Divisionfor Air Quality.

3. 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), (26); 42 U.S.C. 7401, 7410,7471,7607; 40 CFR 51.166.

4. Estimate the effect of this administrative regulatlon on the expenditures and revenuesof a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be ineffect. (a) How much revenue will this admlnistrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year? Thls administrative regulation does not generate revenue, but Title V fees may be impacted by the implementation of this regulation. (b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years? This administrative regulation does not generate revenue, but Title V fees may be impacted by the implementationof this regulation. (c) How much will 

### it cost 

### to administerthis program for the first year? The US. EPA has estimated that it 

### will cost the permitting authority between $9,844 and $19,688 per permit issued, and the Division for Air Quality has estimated 30 

# - 40 permit actions per year. Therefore, it is estimated that an increase of between $300,000 and $800,000 will be necessaryto operate this program. (d) How much will it cost to administer this program for subsequent years? The US. EPA has estimated that it 

### will cost the permitting authority between $9,844 and $19,688 per permit issued, and the Division for Air Quality has estimated 30 

# - 40 permit actions per year. Therefore, it is estimated that an increase of between $300,000 and $800,000will be necessaryto operate this program.REGULATORY IMPACT ANALYSIS ANDTIERING STATEMENT Administrative Regulation #: 401 KAR 52:001 Contact person: Laura Lund, Environmental Technologist II
(1) .Provide a brief summary of: (a) What this administrative regulation does: This administrative regulation defines the terms used in 401 KAR Chapter 52. (b) The necessity of this administrative regulation: This administrative regulation provides clear and consistent definitionsfor terms used in 401 KAR Chapter52. (c) Howthis administrative regulation conforms tothe content of the authorizing statutes: The statutory authority for this regulation is given in KRS 224.10-100(5), which provides the cabinet the authority, power, and duty to prevent and control air pollution. KRS 224.10- 100(26) requires the cabinet to issue regulations that are no more stringent than federal requirements. The definitions contained in this administrative regulation are not more stringent or otherwise differentthan the correspondingfederal definitions. (d) How this administrative regulation currently assists or will assist in the effective administration ofthe statutes: This administrative regulation assists the public and the regulated community by providing clear and consistent definitions for terms used in 401 KAR Chapter52.
(2) If this is an amendment to an existing administrative regulation, provide a brief summary of: How the amendment will chan~e this existing administrative regulation: This amendment revises definitionsto reflectamendments made to the New ~ource~eview (NSR) Program at the federal level. The Prevention of Significant Deterioration and Title V ~Gnhouse Gas Tailoring 

### Role (Tailoring Rule), published as a final rule on June 3, 2010, amends and creates definitions that significantly impact the Prevention of Significant Deterioration (PSD) and Title V permitting programs. The amendments are to the definitions for 'Regulated NSR pollutant", which includes greenhouse gases (GHGs) as a regulated NSR pollutant under the Clean Air Act; "Major source", which includes air pollutants subject to regulation; and the inclusion of a definition for "Subject to regulation", which includes the greenhouse gas emission thresholds to trigger PSD andTitleV permitting. The necessity of the amendment to this administrative regulation: The definition amendments are necessary at the state level to ensure consistency between state and federal programs. The Ta~loring Rule establishes January 2, 2011, as the trigger date for GHGs to become regulated. If Kentucky's State Implementation Plan (SIP) is not revised by that date to include these requirements, the SIP will be found deficient, and the U.S. EPA will have authority to issue a Federal Implementation Plan (FIP). Serious consequences of a FIP include loss of PSD andTitle V program approvals and loss of federal highway funds. EPA clearly states their intent in the preamble to the final rule, "For any state that lacks the ability to issue PSD or Title V permits for GHG emissions sources consistent with the final rule, we [EPA] intendto undertake a separate action to call for revisionsto these programs. We [EPA] also intend to move quickly to impose a FIP for PSD through 40 CFR 52.21, and use our federal Title V authority to ensure that GHG sources will be permitted consistent with the final rule." This amendment also clarifies that small businesses will not be regulated solely because of their preenhouse pas emissions bvtailoring the threshold limits. HOW the amendment conform;to the conknt of the authorizing statutes: KRS 224.10- lOO(26) requires the cabinet to issue regulations that are no more stringent than federal requirements. This amendment maintains consistency with corresponding federal definitions affecting Kentucky's PSD and TitleV permittingprograms. How the amendment will assist 

### in the effective administration of statutes: This amendmentwill provide clear and consistent definitions

### of terms used in 401 KAR Chapter 52 to prevent and control air pollution.


### (3) List the type and number of individuals, businesses, orga.nizations, or state and local governments affected by this admlnlstrative regulation: Any facility with the capacity to emit greenhouse gases at or above the thresholds specified in the GHG Tailoring Rule, which changes to 401 KAR 52:001 incorporate, would be affected by the changes to this regulation. This includes PSD

-- -- - - - -and Title 

### V sources of greenhouse gas emissions but does not affect smaller emitters of greenhouse gases. EPA has estimated that without the Tailoring Rule there would be 82,000 permitting actions nationwide per year necessary to address greenhouse gas emissions, 

### but with the implementation of the rule that number is reduced to 1,600 nationwide. The Division for Air Quality has estimated this regulationchange to affect 30 

# -40 permitting actions per year in Kentucky. If these amendments are not made, the U.S. EPA will find Kentucky's SIP deficient and exercise their authority to issue a construction ban to prevent the construction or modification of a major emitting facility (pursuant to CAA 

### 3167) until a FIP is issued.

Provide an assessment of how the entities identified inquestion 

### (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change if it is an amendment: Changes to the current regulation will include the regulation 

### of greenhouse gas emissions. For those sources emitting at or above the major source threshold for greenhouse gas emissions, new permits will have to be issued. Listthe actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment: Sources permitted under the Title 

### V program will haveto submit a permit application identifying and reportingthe emissions but there will be no new requirements or standards imposed on the source. Sources perm~tted under the PSD program will have to submit a permit application including BestAvailable ControlTechnology (BACT) reviewfor greenhouse gas emissions. In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3): There are no emission fees 

### associated with the regulation of greenhouse gas emissions For those sources that must provide a BACT analysis, there is the additional cost to meet the requirements of the BACT determination. Additionally, sources required to obtain a new permit will have the expense of completing a permit application. EPA has estimated that a Title V permit application for greenhouse gas sources would cost each source, on average, between $23,200 and $46,400. As a result of compliance, what benefitswill accrue tothe entities identified in question (3): These major sourceswill remain incompliance with state andfederal regulations.

Provide an estimate of how much it will cost the administrative body to implement this administrative regulation: (a) Initially: The inclusion of greenhouse gases in stationary source permits will require the Division for Air Quality to expand staff to review the increased permit load and inspect changes madeto sourcesas a resultof this regulation. (b) On a contlnulng basis: The cabinet must maintain the additional staff in order to handle the Increase in permit issuance. EPA has estimated that 

### a Tltle V permit application for greenhouse gas sources would cost a permittingauthority, on average, between $9,844 and $19,688 to process each source permit.

What is the source of the funding to be used for the implementation and enforcement of this administrative regulation: Any additional expense incurred by the Divisionfor Air Quality to regulate greenhouse gas emissions would be paid for through Title V emission fees. The cabinet is not requesting additional general funds for the implementationand enforcement of the regulation.

Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change If 

### It is an amendment. The cabinet is not requesting additional general funds for the implementation of this administrative regulation. However, Title V emission fees may be impacted by the implementation of this administrative reaulation. State whether 

## & not this administrative regulation established any fees or directly or indirectly increased anv fees. This administrative reaulationdoes not establish fees, but as stated above in 

### (7). Title

### V emissionfees may be impacted. "

TIERING: Is tiering applied? Yes. The Tailoring Rule amends the threshold of greenhouse gas emission levels subject to regulation. This tiering revisionwas necessary to prevent small businesses and individuals from becoming subject to permitting requirements sdely due to greenhouse gas emissions.FEDERAL MANDATE ANALYSIS COMPARISON

Federal statute or regulation constituting the federal mandate. As a SIP-approved state for the PSD program under 40 CFR 51.166, recent changes in the federal PSDlNSR and Title 

### V programs make it necessaryto revise the regulation in order to maintain federal approvability. Failureto do so Will result in a Federal Implementation Plan.

State compliance standards. The state compliance standards are found in KRS 224.10-100(5).

Minimum or uniform standards contained in the federal mandate. Changes in the federal definitions for this program necessitate changes in the state definitions.

Will this administrative regulation impose stricter requirements, or additional or different responsibilities or requirements, than those required by the federal mandate? No.

Justification for the imposition of the stricter standard, or additional or different responsibilities or requirements. The definitions contained in this administrative regulation are not more stringent or otherwise differentthan the correspondingfederal definitions.

FISCAL NOTE ON STATE OR LOCAL GOVERNMENT

Administrative Regulatlon#: 401 KAR 52:001 Contactperson: Laura Lund, Environmental Technologist II

1. Does this administrative regulation relate to any program, service, or requirements of a state or local government (including cities, counties, fire departments, or school districts)? Yes.

2. What units, parts or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation? This administrative regulation impacts the Division for Air Quality as the applicability of other administrative regulations is altered. Any state or local government that emits greenhouse gases in the thresholds subject to the PSD or Title V permitting programs would be required to obtain a permit from the Divisionfor Air Quality.



### 3. Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation. KRS 224.10-i00(5),(26); 42 U.S.C. 7401, 7410, 7471, 7607; 40 CFR 51.166.

4. Estimate the effect of this administrative regulation on the expenditures and revenues of a State or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is

### to be ineffect. (a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year? This administratwe regulation does not generate revenue, but Title V fees may be impacted by the implementation of this regulation. (b) How much revenue will this administrative regulation generate for the state or local gOVertIment (including cities, counties, fire departments, or school districts) for subsequent years? This administrative regulat~on does not generate revenue, but Title V fees may be impacted by the implementation of this regulation. (c) How muchwill it cost to administerthis program for the first year? The U.S. EPA has estimated that it wit1 cost the permitting authority between $9,844 and $19,688 per permit issued, and the Division for Air Quality has estimated 30 

## - 40 permit actions per year. Therefore, it is estimated that an increase of between $300,000 and $800,000will be necessaryto operate this program. (d) How much 

### will it cost to administer this program for subsequent years? The U.S. EPA has estimated that it will cost the permitting authority between $9,844 and $19,688 per permit issued, and the Division for Air Quality has estimated 30 

## - 40 permit actions per year. Therefore, it is estimated that an increase of between $300,000 and $800,000 will be necessaryto operate this program.

-