1 ENERGY AND ENVIRONMENT CABINET 

2 Department for Environmental Protection 

3 Division for Air Quality 

4 (Amendment) 

JUN 1 4 2012 

~L·~ 

REGULATIONS COMPILER 

5 401 KAR 51:017. Prevention of significant deterioration of air quality. 

6 RELATES TO: KRS 224.10-100, 40 C.F.R. 51 Subpart I, Appendix S, sec. IV, Part 

7 51, Appendix W, 51.166, 52.21, 52.26, 53, 58 Appendix A, 60, 61, 63, 70.6, 81.318, 81 

8 Subpart D, 42 U.S.C. 7401-7671q[, 4321 4370d, EO 2009 538] 

9 STATUTORY AUTHORITY: KRS 224.10-100(5), 40 C.F.R. 51.166, [52.21,] 42 

10 U.S.C. 7401-7671q[, EO 2009 538] 

11 NECESSITY, FUNCTION, AND CONFORMITY: KRS 224.10-100.(§1 requires the 

12 cabinet to promulgate administrative regulations for the prevention, abatement, and 

13 control of air pollution. [EO 2009 538, effective June 12, 2009, establishes the Energy 

14 and Environment Cabinet.] This administrative regulation provides for the prevention of 

15 significant deterioration of ambient air quality. The provisions of this administrative 

16 regulation are not [different nor] more stringent than the corresponding federal 

17 requirements [regulation, 40 C.F.R. 51.166]. 

18 Section 1. Applicability. (1) This administrative regulation shall apply to the 

19 construction of a new major stationary source or a project at an existing major stationary 

20 source that commences construction after September 22, 1982, and locates in an area 

21 designated attainment or unclassifiable under 42 U.S.C. 7407(d)(1)(A)(ii) and (iii). 

1 
1 (2) Except as otherwise provided in this administrative regulation, the provisions of 

2 Sections 8 to 16 of this administrative regulation shall apply to the construction of a new 

3 major stationary source or a major modification of an existing major stationary source. 

4 (3) The owner or operator of a new major stationary source or major modification, 

5 which is subject to the requirements of Sections 8 to 16 of this administrative regulation, 

6 shall not begin actual construction without a proposed permit or proposed permit 

7 revision issued under 401 KAR 52:020 stating that the major stationary source or major 

8 modification shall meet those requirements. 

9 (4) Applicability tests for projects. Except as provided in subsection (5) of this 

10 section, a project shall be a major modification for a regulated NSR pollutant only if the 

11 project causes a significant emissions increase and a significant net emissions increase 

12 as provided in paragraphs (a) and (b) of this subsection. 

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

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

15 constructed according to subparagraphs 1 to 3 of this paragraph. 

16 1. Actual-to-projected actual applicability test for projects that only involve existing 

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

18 . projected to occur if the sum of the difference between the projected actual emissions 

19 and the baseline actual emissions for each existing emissions unit equals or exceeds 

20 the significant amount for that pollutant. 

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

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

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

2 
1 following completion of the project equals or exceeds the significant amount for that 

2 pollutant. 

3 3. Hybrid test for projects that involve multiple types of emissions units. A significant 

4 emissions increase of a regulated NSR pollutant shall be projected to occur if the sum 

5 of the emissions increases for each emissions unit, using a method specified in 

6 subparagraphs 1 and 2 of this paragraph as applicable for each emissions unit, equals 

7 or exceeds the significant amount for that pollutant. 

8 (b) Prior to beginning actual construction and after completing the applicable 

9 procedure established in paragraph (a) of the subsection, the owner or operator shall 

10 determine for each regulated NSR pollutant if a significant net emissions increase will 

11 occur pursuant to 401 KAR 51:001, Section 1 (144) and (218). 

12 (5) For a plant-wide applicability limit (PAL) for a regulated NSR pollutant at a major 

. 13 stationary source, the owner or operator of the major stationary source shall comply 

14 with the applicable requirements of Section 20 of this administrative regulation. 

15 Section 2. Ambient Air Increments. (1) In areas designated as Class I or II, 

16 increases in pollutant concentration over the baseline concentration shall be limited to 

17 the following levels: 

Pollutant Maximum Allowable 

Increase 

(Micrograms per 

cubic meter) 

Class I 

Particulate Matter: 

3 
PM2.s, annual 1 

arithmetic mean 

PM2.s, 24-hour 2 

·maximum 

PM10, annual 4 

arithmetic mean 

PM10, 24-hour 8 

maximum 

Sulfur Dioxide: 

Annual arithmetic 2 

mean 

24-hour maximum 5 

3-hour maximum 25 

Nitrogen Dioxide: 

Annual arithmetic 2.5 

mean 

Class II 

Particulate Matter: 

PM2.s. annual 4 

arithmetic mean 

PM2.s. 24-hour 9 

maximum 

4 
PM10, annual 17 

arithmetic mean 

PM1o, 24-hour 30 

maximum 

Sulfur Dioxide: 

Annual arithmetic 20 

mean 

24-hour maximum 91 

3-hour maximum 512 

Nitrogen Dioxide: 

Annual arithmetic 25 

mean 

1 (2) For any period other than an annual period, the applicable maximum allowable 

2 increase may be exceeded during one (1) such period per year at any one (1) location. 

3 Section 3. Ambient Air Ceilings. The concentration of a regulated NSR pollutant 

4 shall not exceed the concentration allowed under the national secondary ambient air 

5 quality standard or under the national primary ambient air quality standard, whichever 

6 concentration is lower for the pollutant for a period of exposure. 

7 Section 4. Restrictions on Area Classifications. (1) The following areas, which were 

8 in existence on August 7, 1977, shall be Class I areas and shall not be redesignated: 

9 (a) International parks; 

10 (b) National wilderness areas and national memorial parks that exceed 5,000 acres 

11 in size; and 

5 
1 (c) National parks that exceed 6,000 acres in size. 

2 (2) Any other area, unless otherwise specified in the legislation creating the area, 

3 shall be designated Class II but may be redesignated as provided in 40 C.F.R. 

4 51.166(g). 

5 (3) The visibility protection requirements of this administrative regulation shall apply 

6 only to sources that may impact a mandatory Class I federal area. 

7 (4) The following areas may be redesignated only as Class I or II: 

8 (a) An area that as of August 7, 1977, exceeded 10,000 acres in size and was a 

9 national monument, a national primitive area, a national preserve, a national 

10 recreational area, a national wild and scenic river, a national wildlife refuge, a national 

11 lakeshore or seashore; and 

12 (b) A national park or national wilderness area established after August 7, 1977, 

13 which exceeds 10,000 acres in size. 

14 Section 5. Exclusions from Increment Consumption. (1) Pursuant to notice and 

15 opportunity for at least one (1) public hearing to be held in accordance with procedures 

16 established in 401 KAR 52:100, the cabinet may exclude the following concentrations in 

17 determining compliance with a maximum allowable increase: 

18 (a) Concentrations attributable to the increase in emissions from stationary sources 

19 that have converted from the use of petroleum products, natural gas, or both by reason 

20 of an order in effect under a federal statute or regulation over the emissions from these 

21 sources before the effective date of the order; 

22 (b) Concentrations attributable to the increase in emissions from sources that have 

23 converted from using natural gas by reason of a natural gas curtailment plan in effect 

6 
1 pursuant to a federal statute over the emissions from those sources before the effective 

2 date of the plan; 

3 (c) Concentrations of particulate matter attributable to the increase in emissions 

4 from construction or other temporary emission-related activities of new or modified 

5 sources; and 

6 (d) Concentrations attributable to the temporary increase in emissions of sulfur 

7 dioxide, particulate matter, or nitrogen oxides from stationary sources affected by plan 

8 revisions approved by the Administrator of the U.S. EPA as meeting the criteria 

9 established in subsection (3) of this section. 

1 0 (2)(a) Exclusion of concentrations shall not apply more than five (5) years after the 

11 effective date of the order to which subsection (1)(a) of this section refers or the 

12 curtailment plan to which subsection (1)(b) of this section refers, whichever is 

13 applicable. 

14 (b) If both an order and curtailment plan are applicable, an exclusion shall not apply 

15 more than five (5) years after the later of the two (2) effective dates. 

16 (3) For excluding concentrations pursuant to subsection (1)(d) of this section: 

17 (a) The time period over which the temporary emissions increase of sulfur dioxide, 

18 particulate matter, or nitrogen oxides would occur shall be specified and shall not 

19 exceed two (2) years in duration unless a longer time is approved by the U.S. EPA; 

20 (b) The time period for excluding certain contributions in accordance with paragraph 

21 (a) of this subsection shall not be renewable; 

22 (c) An emissions increase from a stationary source shall not occur that will: 

7 
1 1. Impact a Class I area or an area in which an applicable increment is known to be 

2 violated; or 

3 2. Cause or contribute to the violation of a national ambient air quality standard; and 

4 (d) Limitations shall be in effect at the end of the time period established in 

5 paragraph (a) of this subsection, which ensure that the emissions levels from stationary 

6 sources affected by the SIP revision shall not exceed the levels occurring from those 

7 sources before the revision was approved. 

8 Section 6. Stack Heights. (1) The degree of emissions limitation required for control 

9 of an air pollutant under this administrative regulation shall not be affected by: 

10 (a) So much of the stack height of a source as exceeds good engineering practice; 

11 or 

12 (b) Another dispersion technique. 

13 (2) Subsection (1) of this section shall not apply to stack heights in existence before 

14 December 31, 1970, or to dispersion techniques implemented before then. 

15 Section 7. Exemptions. (1) Sections 8 to16 of this administrative regulation shall not 

16 apply to a particular major stationary source or major modification, if: 

17 (a) The owner or operator: 

18 1. Obtained the necessary federal, state, and local preconstruction approval 

19 effective before September 22, 1982; 

20 2. Commenced construction before September 22, 1982; and 

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

22 (b)1. The major stationary source is a nonprofit health institution, a nonprofit 

23 educational institution, or a major modification at such an institution; and 

8 
1 2. The Governor of the Commonwealth of Kentucky requests that it be exempt from 

2 those requirements. 

3 (c) The source or modification is a major stationary source or major modification 

4 only if fugitive emissions, to the extent quantifiable, are considered in calculating the 

5 potential to emit of the stationary source or modification and the source does not belong 

6 to any of the following categories: 

7 1. Coal cleaning plants with thermal dryers; 

8 2. Kraft pulp mills; 

9 3. Portland cement plants; 

1 0 4. Primary zinc smelters; 

11 5. Iron and steel mills; 

12 6. Primary aluminum ore reduction plants; 

13 7. Primary copper smelters; 

14 8. Municipal incinerators capable of charging more than 250 tons of refuse per day; 

15 9. Hydrofluoric, sulfuric, or nitric acid plants; 

16 1 0. Petroleum refineries; 

17 11. Lime plants; 

18 12. Phosphate rock processing plants; 

19 13. Coke oven batteries; 

20 14. Sulfur recovery plants; 

21 15. Carbon black plants, furnace process; 

22 16. Primary lead smelters; 

23 17. Fuel conversion plants; 

9 
1 18. Sintering plants; 

2 19. Secondary metal production plants; 

3 20. Chemical process plants, except ethanol production facilities producing ethanol 

4 by natural fermentation under the North American Industry Classification System 

5 (NAICS) codes 325193 or 312140; 

6 21. Fossil-fuel boilers, or combination of fossil-fuel boilers, totaling more than 250 

7 million BTUs per hour heat input; 

8 22. Petroleum storage and transfer units with a total storage capacity exceeding 

9 300,000 barrels; 

10 23. Taconite ore processing plants; 

11 24. Glass fiber processing plants; 

12 25. Charcoal production plants; 

13 26. Fossil fuel-fired steam eleCtric plants of more than 250 million BTUs per hour 

14 heat input; or 

15 27. Another stationary source category that, as of August 7, 1980, is being regulated 

16 under 42 U.S.C. 7411 or 7412. 

17 (d) The source or modification is a portable stationary source that has previously 

18 received a permit under this administrative regulation; and 

19 1. The owner or operator proposes to relocate the source, and the emissions of the 

20 source at the new location will be temporary; 

21 2. The emissions from the source will not exceed its allowable emissions; 

22 . 3. The emissions from the source will not impact a Class I area or an area where an 

23 applicable increment is known to be violated; and 

10 
1 4.a. Reasonable notice is given to the cabinet prior to the relocation identifying the 

2 proposed new location and the probable duration of operation at the new location. 

3 b. Notice shall be given to the cabinet not less than ten (1 0) days in advance of the 

4 proposed relocation unless a different time duration is previously approved by the 

5 cabinet pursuant to this subsection. 

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

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

8 or operator: 

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

10 necessary under the applicable SIP before July 31, 1987; 

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

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

13 completed construction within a reasonable period of time. 

14 (f)1. The source or modification was subject to this administrative regulation for 

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

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

17 before that date; and 

18 2. The cabinet subsequently determined that the application as submitted was 

19 complete with respect to the particulate matter requirements then in effect. 

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

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

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

23 designated as nonattainment pursuant to 42 U.S.C. 7407(d)(1 )(A)(i). 

11 
1 (3) Sections 9,11, and 13 of this administrative regulation shall not apply to a 

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

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

4 that pollutant from a modification: 

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

6 to be violated; and 

7 (b) Will be temporary. 

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

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

10 at a stationary source that was in existence on March 1, 1978, if the net increase in 

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

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

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

14 modification from the monitoring requirements of Section 11 of this administrative 

15 regulation for a particular pollutant, if: 

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

17 emissions increase of the pollutant from the modification will cause air quality impacts in 

18 an area, which are less than the amounts listed in the following table; or 

Pollutant Air Quality Averaging 

Level Time 

Carbon 575 IJg/mj .8-hour 

monoxide average 

12 
Nitrogen 

dioxide 

annual 

average 

24-hour 

average 

24-hour 

average 

[Particulate 10 I=Jg/m~-ef 24 hour 

matter 

Sulfur 

dioxide 

Ozone 

average] 

24-hour 

average 

A de minimis air quality level 

is not provided for ozone. 

However, a net increase of 

1 00 tons per year or more of 

volatile organic compounds 

or nitrogen oxides subject to 

this administrative regulation 

shall be required to perform 

an ambient impact analysis 

including the gathering of 

ambient air quality data. 

13 
Lead 0.1 1-Jg/m3 3-month 

average 

Fluorides 0.25 1-Jg/m3 24-hour 

average 

Hydrogen 0.2 1-Jg/m0 1-hour 

sulfide average 

Total 10 1-Jg/m3 1-hour 

reduced average 

sulfur 

Reduced 10 1-Jg/m0 1-hour 

sulfur average 

compounds 

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

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

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

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

5 regulation shall not apply to a stationary source or modification for a maximum 

6 allowable increase for nitrogen oxides, if: 

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

8 a permit or permit revision under the applicable permit program before the date on 

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

10 Kentucky SIP; and 

14 
1 (b) The cabinet subsequently determined that the application as submitted before 

2 that date was complete. 

3 (7) Permitting requirements equivalent to Section 1 0(2) of this administrative 

4 regulation shall not apply to a stationary source or modification for a maximum 

5 allowable increase for PM10, if: 

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

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

8 maximum allowable increases for PM10 took effect as part of Kentucky's SIP; and 

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

10 that date was complete. 

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

12 PM10 in Section 11 of this administrative regulation shall not apply to a particular source 

13 or modification, if: 

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

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

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

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

18 specified in Section 11 of this administrative regulation. 

19 (b) The requirements for air quality monitoring of PM10 in Section 11 of this 

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

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

22 C.F.R. 52.21 or this administrative regulation after June 1, 1988, and not later than 

23 December 1, 1988. 

15 
1 1. The data shall have been gathered over at least the period from February 1, 

2 1988, to the date the application becomes complete in accordance with Section 11 of 

3 this administrative regulation; and 

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

5 accomplished with monitoring data over a shorter period, which may not to be less than 

6 four (4) months, the data that Section 11 of this administrative regulation requires shall 

7 have been gathered over that shorter period. 

8 (9) If the owner or operator of the source or modification submitted an application for 

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

1 0 provisions embodying the maximum allowable increases for PM10 took effect and the 

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

12 complete, the requirements of Section 9(2) of this administrative regulation shall: 

13 (a) Not apply to a stationary source or modification for a maximum allowable 

14 increase for PM1o; and 

15 (b) Apply for the maximum allowable increases for TSP as in effect on the day the 

16 application was submitted. 

17 Section 8. Control Technology Review. (1) A major stationary source or major 

18 modification shall meet each applicable emissions limitation under the Kentucky SIP 

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

20 C.F.R. Parts 60 and 61. 

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

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

23 (3) A major modification shall apply BACT: 

16 
1 (a) For each regulated NSR pollutant that results in a significant net emissions 

2 increase at the source; and 

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

4 pollutant occurs as a result of a physical change or change in the method of operation 

5 of the unit. 

6 (4) For phased construction projects: 

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

8 the latest reasonable time occurring not later than eighteen (18) months prior to 

9 commencement of construction of each independent phase of the project; and 

10 (b) If requested by the cabinet, the owner or operator of the applicable stationary 

11 source shall demonstrate the adequacy of a previous BACT determination for the 

12 source. 

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

14 source or modification shall demonstrate that allowable emissions increases from the 

15 proposed source or modification, in conjunction with all other applicable emissions 

16 increases or reductions, including secondary emissions, shall not cause or contribute to 

17 air pollution in violation of: 

18 fill[f-B] A national ambient air quality standard in an air quality control region; or 

19 .(Q}[~] An applicable maximum allowable increase over the baseline concentration 

20 in any area. 

21 (2) For purposes of PM2.5• the demonstration pursuant to subsection (1) of this 

22 section is deemed to have been made if the emissions increase from the new stationary 

17 
1 source alone or from the modification alone would cause, in all areas, an air quality 

2 impact less than the amounts listed in the following table. 

Pollutant Averaging Time Class I area Class II area 

PM2.s Annual 0.06 !:!91m3 0.3 b!glm~ 

PM2.s 24-hour 0.07 !:!91m3 1.2 !:!91m3 

3 Sect1on 10. Air Quality Models. (1) Estimates of ambient concentrations shall be 

4 based on the applicable air quality models, databases, and other requirements specified 

5 in 40 C.F.R. Part 51, Appendix W, "Guideline on Air Quality Models" Appendix A. 

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

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

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

9 1. Subject to notice and opportunity for public comment under 401 KAR 52:1 00; and 

10 2. Approved in writing by the U.S. EPA pursuant to 40 C.F.R. 51.166(1). 

11 (b) Methods similar to those outlined in the "Workbook for the Comparison of Air 

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

13 the comparability of air quality models. 

14 Section 11. Air Quality Analysis. (1) Preapplication analysis. 

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

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

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

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

19 significant amount; 

18 
1 2. For a modification, each pollutant that the modification will result in a significant 

2 net emissions increase. 

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

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

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

6 pollutant will affect. 

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

8 exists, the analysis shall contain continuous air quality monitoring data gathered to 

9 determine if emissions of that pollutant will cause or contribute to a violation of the 

1 0 standard or a maximum allowable increase. 

11 (d)1. The required continuous air quality monitoring data shall have been gathered 

12 over a period of at least one (1) year and shall represent at least the year preceding 

13 receipt of the application. 

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

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

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

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

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

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

20 instead of providing preconstruction data as required in this section. 

21 (f) For air quality monitoring of PM1o under Section 7(8)(a) and (b) of this 

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

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

19 
1 shall estimate the ambient concentrations of PM10 using the data collected by that 

2 approved monitoring method in accordance with estimating procedures approved by the 

3 cabinet pursuant to 40 C.F.R. Part 58, Appendix A. 

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

5 major modification, the owner or operator shall conduct ambient monitoring that the 

6 cabinet determines is necessary to determine the effect emissions from the stationary 

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

8 (3) Operation of monitoring stations. During the operation of air quality monitoring 

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

10 meet the requirements of 40 C.F.R. Part 58, Appendix A to satisfy the air quality 

11 analysis requirements of this section. 

12 Section 12. Source Information. The owner or operator of a proposed source or 

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

14 or make a determination required under this administrative regulation. 

15 (1) The information shall include: 

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

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

18 its design and plant layout; 

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

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

21 for the source or modification, emissions estimates, and any information necessary to 

22 determine that BACT will be applied. 

20 
1 (2) Upon request of the cabinet, the owner or operator shall also provide information 

2 on: 

3 (a) The air quality impact of the source or modification, including meteorological and 

4 topographical data necessary to estimate the impact; and 

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

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

7 area the source or modification will affect. 

8 Section 13. Additional Impact Analysis. (1) The owner or operator shall provide an 

9 analysis of the impairment to visibility, soils, and vegetation that will occur as a result of: 

10 (a) The source or modification; and 

11 (b) General commercial, residential, industrial, and other growth associated with the 

12 source or modification. 

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

14 on vegetation not having significant commercial or recreational value. 

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

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

17 growth associated with the source or modification. 

18 (4) Visibility monitoring. 

19 (a) If the cabinet requires monitoring of visibility in a Class I area impacted by the 

20 proposed new stationary source or major modification, the monitoring shall be 

21 performed using: 

22 1. Human observations; 

23 2. Teleradiometers; 

21 
1 3. Photographic cameras; 

2 4. Nephelometers; 

3 5. Fine particulate monitors; or 

4 6. Other U.S. EPA-approved methods. 

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

6 cabinet pursuant to 40 C.F.R. 51.166. 

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

8 by the federal land manager. 

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

10 the U.S. EPA, and the federal land manager, upon request. 

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

12 to U.S. EPA and federal land managers. The cabinet shall provide; 

13 (a) Written notice to the U.S. EPA, the federal land manager, and the federal official 

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

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

16 affect the Class I area. 

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

18 1. Include a copy of all information relevant to the permit application; 

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

20 public hearing on the application for a permit to construct; and 

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

22 the Class I area. 

22 
1 (c) The cabinet shall also provide the federal land manager and other federal 

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

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

4 The cabinet shall also notify all affected federal land managers within thirty (30) days of 

5 receipt of an advanced notification of the permit application. 

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

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

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

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

10 modification will have an adverse impact on those values. 

11 (3) Visibility analysis. 

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

13 which is provided within thirty (30) days of the notice and analysis required by 

14 subsection (1) of this section, which shows that a proposed new major stationary source 

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

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

17 satisfaction that an adverse impact on visibility will result in the Class I area, the cabinet 

18 shall, in the public notice required in 401 KAR 52:100, either explain that decision or 

19 give notice as to where the explanation may be obtained. 

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

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

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

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

23 
1 though the change in air quality resulting from emissions from the proposed source or 

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

3 allowable increases for a Class I area. 

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

5 subsection, the cabinet shall not issue the permit or permit revision. 

6 (5) Class I variances. 

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

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

9 have adverse impact on the visibility or other air quality related values of lands located 

10 in a Class I area, even though the change in air quality resulting from emissions from 

11 the source or modification will cause or contribute to concentrations that will exceed the 

12 maximum allowable increases for a Class I area as specified in Section 2(1) of this 

13 administrative regulation. 

14 (b) If limitations are necessary, the cabinet may issue the permit or permit revision 

15 with emissions limitations necessary to assure that emissions of sulfur dioxide, PM ~ 

16 PM10 [particulate matter], and nitrogen oxides will not exceed the maximum allowable 

17 increases over minor source baseline concentration for the pollutants as specified in 40 

18 C.F.R. 51.166(p)(4) [Section 2(1) of this administrative regulation] if: 

19 1. The federal land manager concurs with the demonstration specified in paragraph 

20 (a) of this subsection and certifies accordingly; and 

21 2. The other applicable requirements of this administrative regulation are met. 

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

24 
1 (a) The owner or operator of a proposed source or modification, which cannot be 

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

3 constructed without exceeding a maximum allowable increase in sulfur dioxide 

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

5 demonstrate to the Governor of the Commonwealth of Kentucky that a variance will not 

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

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

8 recommendation, if applicable, and subject to the federal land manager's concurrence, 

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

10 increase. 

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

12 source or modification under the requirements of 401 KAR Chapter 52 if the other 

13 applicable requirements of this administrative regulation are met. 

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

15 (a) If the Governor of the Commonwealth of Kentucky recommends a variance in 

16 which the federal land manager does not concur, the recommendations of the governor 

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

18 of America. 

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

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

21 applicable requirements of this administrative regulation are met. 

25 
1 (8) Emissions limitations for presidential or gubernatorial variance. For a permit or 

2 permit revision issued pursuant to subsections (6) or (7) of this section, the source or 

3 modification shall comply with the emissions limitations necessary to assure that: 

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

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

6 or contribute to concentrations that will exceed the maximum allowable increases over 

7 the baseline concentration as specified in the following table; and 

Maximum Allowable Increase 

(Micrograms per cubic meter) 

Terrain areas 

Period of Low High 

Exposure 

24-hour maximum 36 62 

3-hour maximum 130 221 

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

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

10 hours or less for more than a total of eighteen (18) days that are not necessarily 

11 consecutive during an annual period. 

12 Section 15. Public Participation. The cabinet shall follow the applicable procedures 

13 of 401 KAR 52:100, 40 C.F.R. 51.166(q), and this administrative regulation in 

14 processing applications under this administrative regulation. 

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

16 subject to this administrative regulation who begins actual construction after September 

26 
1 22, 1982, shall construct and operate the source or modification in accordance with the 

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

3 52:020 or under the terms of an approval to construct. 

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

5 1. Is not commenced within eighteen (18) months after receipt of the approval; 

6 2. Is discontinued for a period of eighteen (18) months or more; or 

7 3. Is not completed within a reasonable time. 

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

9 demonstration that an extension is justified. 

1 0 1. An extension shall not apply to the time period between construction of the 

11 approved phases of a phased construction project; and 

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

13 projected and approved commencement date. 

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

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

16 or federal law. 

17 (4) If a particular source or modification becomes a major stationary source or major 

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

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

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

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

22 modification. 

27 
1 (5)(a) The provisions of this subsection shall apply to projects at existing emissions 

2 units at a major stationary source other than projects at a source with a PAL, if: 

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

4 modification may result in a significant emissions increase; and 

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

6 Section 1 (199)(b) to calculate projected actual emissions. 

7 (b) Before beginning actual construction of a project specified in paragraph (a) of 

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

9 following information: 

1 0 1. A description of the project; 

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

12 pollutant could be affected by the project; and 

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

14 major modification for any regulated NSR pollutant, including: 

15 a. Baselihe actual emissions; 

16 b. Projected actual emissions; 

17 c. Amount of emissions excluded in calculating projected actual emissions and an 

18 explanation for why that amount was excluded; and 

19 d. Any applicable netting calculations. 

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

21 shall: 

28 
1 1. Monitor the emissions of any regulated NSR pollutant that could increase as a 

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

3 (b)2 of this subsection; and 

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

5 calendar year basis for: 

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

7 b. Ten (1 0) years following resumption of regular operations after the change if the 

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

9 at the emissions unit. 

10 (d) If the emissions unit is an existing EUSGU, before beginning actual construction, 

11 the owner or operator: 

12 1. Shall provide a copy of the information in paragraph (b) of this subsection to the 

13 cabinet, but shall not be required to obtain a determination from the cabinet before 

14 beginning actual construction; and 

15 2. Shall submit a report to the cabinet within sixty (60) days after the end of each 

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

17 subsection that reports the unit's annual emissions during the calendar year that 

18 preceded submission of the report. 

19 (e)1. For an existing unit other than an EUSGU, the owner or operator shall submit a 

20 report to the cabinet if: 

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

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

29 
1 maintained pursuant to paragraph (b)3 of this subsection, by a significant amount for 

2 that regulated NSR pollutant; and 

3 b. The emissions differ from the preconstruction projection as documented and 

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

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

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

7 subsection and shall contain the following: 

8 a. The name, address, and telephone number of the major stationary source; 

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

10 and 

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

12 (f) The owner or operator of the source shall make the information required to be 

13 documented and maintained under to this subsection available for review upon request 

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

15 Section 17. Environmental Impact Statements. If a proposed source or modification 

16 is subject to action by a federal agency that may necessitate preparation of an 

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

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

19 administrative regulation shall be coordinated with the broad environmental reviews 

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

21 reasonable. 

30 
1 Section 18. Innovative Control Technology. (1) An owner or operator of a proposed 

2 major stationary source or major modification may make a written request that the 

3 cabinet approve a system of innovative control technology. 

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

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

6 technology if: 

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

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

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

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

11 administrative regulation by a date, specified by the cabinet that is not later than four (4) 

12 years from the time of start-up or seven (7) years from permit issuance; 

13 (c) The source or modification shall meet requirements equivalent to those in 

14 Sections 8 and 9 of this administrative regulation based on the emissions rate that the 

15 stationary source employing the system of innovative control technology shall be 

16 required to meet on the date specified by the cabinet; 

17 (d) The source or modification shall not before the date specified by the cabinet: 

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

19 standard; or 

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

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

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

31 
1 (f) All other applicable requirements including those for public participation have 

2 been met. 

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

4 technology if: 

5 (a) The proposed system fails by the specified date to achieve the required 

6 continuous emissions reduction rate; 

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

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

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

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

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

12 emissions reduction within the specified time period or the approval. is withdrawn in 

13 accordance with subsection (3) of this section, the cabinet may allow the source or 

14 modification up to an additional three (3) years to meet the requirement for the 

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

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

17 permit for a stationary source or modification that contains conditions pursuant to 401 

18 KAR 51:015 or 51 :016E may request that the cabinet rescind the applicable conditions. 

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

20 for the source or modification that was issued under this administrative regulation as in 

21 effect on July 30, 1987, or an earlier version of this administrative regulation, may 

22 request that the cabinet rescind the permit or a particular portion of the permit. 

32 
1 (2) The cabinet shall rescind a permit condition if requested and if the applicant can 

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

3 apply to the source or modification or to a portion of the source or modification. 

4 Section 20. Plant-wide Applicability Limit Provisions. The cabinet shall only approve 

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

6 meets the requirements of this section. 

7 (1) General provisions. 

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

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

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

11 met, a project: 

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

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

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

15 regulation concerning restrictions on relaxing enforceable emission limitations that a 

16 major stationary source used to avoid applicability of the major NSR program. 

17 (b) Except as provided under subparagraph (1)(a)3 of this section, a major 

18 stationary source shall continue to comply with all applicable federal or state 

19 requirements, emissions limitations, and work practice requirements that were 

20 established prior to the effective date of the PAL. 

21 (2) Permit application requirements. The owner or operator of a major stationary 

22 source shall submit the following information to the cabinet for approval as part of an 

23 application for a permit or permit revision requesting a PAL: 

33 
1 (a) A list of all emissions units at the source designated as small, significant, or 

2 major, based on their potential to emit; 

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

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

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

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

7 malfunction; and 

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

9 monitoring system data to monthly emissions and annual emissions based on a twelve 

10 (12) month rolling total for each month as required by subsection (12)(a) of this section. 

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

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

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

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

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

16 of establishing a PAL, the owner or operator shall demonstrate that the sum of the 

17 monthly emissions from each emissions unit under the PAL for the previous twelve (12) 

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

19 monthly; and 

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

21 the owner or operator shall demonstrate that the sum of the preceding monthly 

22 emissions from the PAL effective date for each emissions unit under the PAL is less 

23 than the PAL. 

34 
1 (b) The PAL shall be established in a PAL permit that: 

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

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

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

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

6 stationary source. 

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

8 (e) Each PAL shall have a PAL effective period of ten (1 0) years. 

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

10 the monitoring, recordkeeping, and reporting requirements of subsections (11) to (13) of 

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

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

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

14 unless: 

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

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

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

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

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

20 (a) Provide the public with notice of the proposed approval of a PAL permit with at 

21 least a thirty (30) day period for submittal of public comment; and 

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

23 permit revision. 

35 
1 (5) Setting the ten (1 0) year PAL level. 

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

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

4 chosen twenty-four (24) month period plus the applicable significant level for the PAL 

5 pollutant under the definition for "significant" in 401 KAR 51:001, Section 1 or under 42 

6 U.S.C. 7401-7671q, whichever is lower. 

7 (b) In establishing a PAL level for a PAL pollutant, only one (1) consecutive twenty8 four (24) month period shall be used to determine the baseline actual emissions for all 

9 existing emissions units. 

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

11 different PAL pollutant. 

12 (d) Emissions associated with units that were permanently shut down after the 

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

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

15 (24) month period shall be added to the PAL level in an amount equal to the potential to 

16 emit of the units. 

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

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

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

20 (6) Contents of the PAL permit. The PAL permit shall contain the following 

21 information: 

22 (a) The PAL pollutant and the applicable source-wide emissions limitation in tons 

23 per year; 

36 
1 (b) The PAL permit effective date and the expiration date of the PAL or PAL 

2 effective period; 

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

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

5 the PAL effective period, the PAL shall remain in effect until a revised PAL permit is 

6 issued by the cabinet; 

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

8 emissions from startups, shutdowns, and malfunctions; 

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

1 0 subject to the requirements of subsection (8) of this section; 

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

12 shall use to convert the monitoring system data to monthly emissions and annual 

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

14 subsection (12)(a) of this section; 

15 (g) A requirement that the major stationary source owner or operator shall monitor 

16 all emissions units in accordance with the provisions in subsection (12) of this section; 

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

18 subsection ( 12) of this section on site. Records may be retained in an electronic format; 

19 (i) A requirement for the owner or operator to submit the reports required under 

20 subsection (13) of this section by the required deadlines; and 

21 U) Any requirements necessary to implement and enforce the PAL. 

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

23 (a) A PAL effective period shall be ten (1 0) years. 

37 
1 (b) The cabinet shall reopen a PAL permit to: 

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

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

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

5 creditable emissions reductions for use as offsets under 40 C.F.R. 51.165(a)(3)(ii); or 

6 4. Revise the PAL to reflect an increase in the PAL according to subsection (1 0) of 

7 this section. 

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

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

10 dates after the PAL effective date; 

11 2. Reduce the PAL consistent with any requirement enforceable as a practical 

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

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

14 causing or contributing to: 

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

16 b. An adverse impact on visibility or another air quality related value that has been 

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

18 is available to the general public. 

19 (d) All permit reopenings shall be carried out under the public participation 

20 requirements of subsection (4) of this section except for permit reopenings to correct 

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

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

23 effective period, and the requirements of this subsection shall then apply. 

38 
1 (a) Each emissions unit, or each group of emissions units, that existed under the 

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

3 established as follows: 

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

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

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

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

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

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

10 expiration. 

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

12 effective during the PAL effective period, as required under subsection (9)(e) of this 

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

14 adjusted. 

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

16 to distribute the PAL allowable emissions. 

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

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

19 appropriate. 

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

21 twelve (12) month rolling basis. The cabinet may approve the use of monitoring systems 

22 other than CEMS, CERMS, PEMS, or CPMS if the alternate monitoring system 

23 demonstrates compliance with the allowable emissions limitation. 

39 
1 (c) The source shall continue to comply with a source-wide, multiunit emissions cap 

2 equivalent to the level of the PAL emissions limitation until the cabinet issues the 

3 revised permit incorporating allowable limits for each emissions unit or each group of 

4 emissions units. 

5 (d) A major modification at the major stationary source shall be subject to major 

6 NSR requirements. 

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

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

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

10 pursuant to Section 16(4) of this administrative regulation. 

11 (9) Renewal of a PAL. 

12 (a) Public participation requirements. 

13 1. The cabinet shall follow the public participation procedures specified in 

14 subsection (4) of this section in approving a request to renew a PAL for a major 

15 stationary source. 

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

17 review and comment. 

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

19 cabinet during the public review period. 

20 (b) Application deadline. 

21 1. A major stationary source owner or operator shall submit an application for 

22 ~enewal of a PAL at least six (6) months before the date of permit expiration but not 

23 earlier than eighteen (18) months before permit expiration. 

40 
1 2. The deadline for application submittal shall ensure that the permit shall not expire 

2 before the permit is renewed. 

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

4 subparagraph 1 of this paragraph, the PAL shall continue to be effective until the 

5 revised permit with the renewed PAL is issued. 

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

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

8 2. A proposed PAL level; 

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

10 supporting documentation; and 

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

12 determining the appropriate level to renew the PAL. 

13 (d) PAL adjustment. 

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

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

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

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

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

19 PAL level, unless the sum is greater than the source's potential to emit. 

20 3. If the sum of the baseline actual emissions for all emissions units at the source 

21 plus an amount equal to the significant level is less than eighty (80) percent of the 

22 current PAL level, the cabinet may set the PAL at a different level if the level is 

23 determined to be: 

41 
1 a. More representative of the source's baseline actual emissions; or 

2 b. Appropriate considering the following factors: 

3 (i) Air quality needs; 

4 (ii) Advances in control technology; 

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

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

7 (v) Cost effective emissions control alternatives; and 

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

9 setting the PAL level. 

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

11 unless the major stationary source has complied with the provisions of subsection (1 0) 

12 of this section. 

13 (e) The PAL shall be adjusted in conjunction with PAL permit renewal or Title V 

14 permit renewal, whichever comes first, if: 

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

16 the PAL source occurs during the PAL effective period; and 

17 2. The cabinet has not already adjusted for the requirement. 

18 (1 0) Increasing a PAL during the PAL effective period. The cabinet may increase a 

19 PAL emissions limitation during the PAL effective period if the major stationary source 

20 complies with the provisions of this subsection. 

21 (a) Application procedures. To request an increase in the PAL limit for a PAL major 

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

23 complete application, which shall include: 

42 
1 1. Identification of the emissions units contributing to the increase in emissions that 

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

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

4 subsection, exceeds the PAL; and 

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

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

7 the application submittal, unless the emissions unit is currently required to comply with a 

8 BACT or LAER requirement that was established within the preceding ten (1 0) years; 

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

1 0 level for that emissions unit shall be equal to the current level of BACT or LAER for that 

11 emissions unit; and 

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

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

14 begins to emit the PAL pollutant. 

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

16 major NSR permit for all emissions units contributing to the increase in emissions for the 

17 PAL major modification. 

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

19 NSR permit shall be obtained; and 

20 2. Emissions units that obtain a major NSR permit shall comply with any emissions 

21 requirements resulting from the major NSR process, even though the units shall also 

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

43 
1 (c) Calculation of increased PAL. The cabinet shall calculate the new PAL as the 

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

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

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

5 of the small emissions units. 

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

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

8 (11) Monitoring requirements for PALs. 

9 (a) General requirements. 

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

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

12 in terms of mass per unit of time; 

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

14 a. Approved by the cabinet pursuant to this subsection; and 

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

16 data quality and manipulation; 

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

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

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

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

21 this subsection; 

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

23 requirements of subparagraphs 1 to 3 of this paragraph; and 

44 
1 6. Failure to use a monitoring system that meets the requirements of this section 

2 shall render the PAL invalid. 

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

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

5 subsection, the following shall be acceptable monitoring approaches: 

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

7 2. GEMS; 

8 3. GPMS or PEMS; and 

9 4. Emission factors. 

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

11 calculations to monitor PAL pollutant emissions from activities using coatings or 

12 solvents shall: 

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

14 pollutant contained in or created by all materials used in or at the emissions unit; 

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

16 emissions unit emits all of the PAL pollutant contained in or created by any raw material 

17 or fuel used in or at the emissions unit; and 

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

19 range, use the highest value of the published range of pollutant content to calculate the 

20 PAL pollutant emissions, unless the cabinet determines there is site-specific data or a 

21 site-specific monitoring program to support another pollutant content within the range. 

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

23 shall meet the following requirements.: 

·45 
1 1. CEMS shall comply with applicable performance specifications found in 40 C.F.R. 

2 Part 60, Appendix B; and 

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

4 while the emissions unit is operating. 

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

6 pollutant emissions shall meet the following requirements: 

7 1. The CPMS or the PEMS shall be based on current site-specific data 

8 demonstrating a correlation between the monitored parameter and the PAL pollutant 

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

10 2, While the unit is operating, each CPMS or PEMS shall sample, analyze, and 

11 record data at least every fifteen (15) minutes, or at another less frequent interval if 

12 approved by the cabinet. 

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

14 pollutant emfssions shall meet the following requirements: 

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

16 uncertainty or limitations in the factors' development; 

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

18 emission factor, if applicable; and . 

19 3. The owner or operator of a significant emissions unit that relies on an emission 

20 factor to calculate PAL pollutant emissions shall conduct validation testing to determine 

21 a site-specific emission factor within six (6) months of PAL permit issuance if the cabinet 

22 determines that the testing is required and technically practicable. 

46 
1 (g) A source owner or operator shall record and report maximum potential emissions 

2 without considering enforceable emissions limitations or operational restrictions for an 

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

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

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

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

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

8 (g) of this subsection, in conjunction with permit issuance the cabinet shall: 

9 1. Establish default values for determining compliance with the PAL based on the 

10 highest potential emissions reasonably estimated at operating points; or 

11 2. Determine that operation of the emissions unit during operating conditions if there 

12 is not a correlation between monitored parameters and the PAL pollutant emissions is a 

13 violation of the PAL. 

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

15 through performance testing or other scientifically valid means if approved by the 

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

17 the PAL. 

18 (12) Recordkeeping requirements. 

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

20 necessary to determine compliance with any requirement of this section and of the PAL, 

21 including a determination of each emissions unit's twelve (12) month rolling total 

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

47 
1 (b) The PAL permit shall require an owner or operator to retain a copy of the 

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

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

4 PAL; and 

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

6 certify compliance. 

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

8 semiannual monitoring reports and prompt deviation reports to the cabinet in 

9 accordance with 401 KAR 52:020, 52:030, and 52:040 that meet the following 

10 requirements: 

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

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

13 1. The identification of owner and operator and the permit number; 

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

15 month in the reporting period recorded pursuant to subsection (12)(a) of this section; 

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

17 including any quality assurance or quality control data; 

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

19 during the preceding six (6) month period; 

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

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

22 corrective action following a deviation; 

48 
1 6. A notification of permanent or temporary shutdown of any monitoring system 

2 including: 

3 a. The reason for the shutdown; 

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

5 be replaced with another monitoring system; 

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

7 system continued to operate without the monitoring system; and 

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

9 according to subsection (11 )(g) of this section that is included in the permit; and 

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

11 Section 1 (21 0), certifying the truth, accuracy, and completeness of the information 

12 provided in the semiannual report. 

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

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

15 monitoring is unavailable. 

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

17 deviation reporting requirement; 

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

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

20 3. The deviation report shall contain the following information: 

21 a. The identification of the owner, the operator, and the permit number; 

22 b. The PAL requirement that experienced the deviation or that was exceeded; 

23 c. Emissions resulting from the deviation or the exceedance; and 

49 
1 d. A signed statement by the responsible official, as defined by 401 KAR 51:001, 

2 Section 1 (21 0), certifying the truth, accuracy, and completeness of the information 

3 provided in the report. 

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

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

6 test or method. 

7 (14) Transition requirements. 

8 (a) After the U.S. EPA approves the Kentucky SIP revisions for the PAL provisions 

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

10 PAL that complies with the requirements of this section. 

11 (b) The cabinet may supersede a PAL that was established before August 10, 2006, 

12 with a different PAL if the new PAL complies with the requirements of this administrative 

13 regulation. 

50 
Date Leonard K. Peters, Secretary 

Energy and Environment Cabinet 

51 
PUBLIC HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this 

administrative regulation shall be held on July 24, 2012, at 10:00 a.m. (local time) in 

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

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

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

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

canceled. 

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

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

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

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

July 31, 2012. 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 hearing facility is accessible to persons with disabilities. Requests for reasonable 

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

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

hearing. 

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

Quality, 151 Floor, 200 Fair Oaks Lane, Frankfort, Kentucky 40601, telephone (502) 564-

3999, ext. 4428, fax (502) 564-4666, and electronic mail Laura.Lund@ky.gov. 

52 
REGULATORY IMPACT ANALYSIS 

AND TIERING STATEMENT 

Administrative Regulation#: 401 KAR 51:017 

Contact person: Laura Lund, Environmental Technologist Ill 

(1) Provide a brief summary of: 

(a) What this administrative regulation does: This administrative regulation 

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

quality, and applies to major stationary sources and major modifications 

constructing in areas that are maintaining the National Ambient Air Quality 

Standards (NAAQS). 

(b) The necessity of this administrative regulation: This administrative 

regulation is necessary to continue to receive full approval of the PSD 

program into the Kentucky State Implementation Plan (SIP) and remain 

the PSD permitting authority. 

(c) How this administrative regulation conforms to the content of the 

authorizing statutes: KRS 224.10-1 00(5) requires the cabinet to 

promulgate administrative regulations for the prevention, abatement, and 

control of air pollution. This administrative regulation conforms to 42 

U.S.C. 7470, which authorizes the federal PSD program. 

(d) How this administrative regulation currently assists or will assist in 

the effective administration of the statutes: This administrative 

regulation establishes the requirements for issuing permits to stationary 

sources in areas where the NAAQS have been attained. 

(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 reflects revisions to the PSD program at the 

federal level to address the PM2.5 NAAQS. This amendment includes 

maximum allowable increases for PM2.6 in Class I and II areas at annual 

and 24-hour levels. This amendment also includes de minimis levels to 

preclude further evaluation for sources emitting or increasing their 

emissions by an amount less than the air quality impact levels for PM2.6· 

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

These amendments are necessary to ensure consistency between state 

and federal programs. 

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

statutes: 42 U.S.C. 7410(a)(1) requires each state to adopt and submit a 

plan providing for the implementation, maintenance, and enforcement of a 

NAAQS. This amendment contains implementation tools for the 

maintenance and attainment of the NAAQS. KRS 224.10-100(5) requires 

the Cabinet to provide for the prevention, abatement, and control of air 

pollution. This amendment maintains consistency with corresponding 

federal requirements. 

53 
(d) How the amendment will assist in the effective administration of 

statutes: This amendment incorporates implementation elements relating 

to PM2.6. as required by 40 C.F.R. 51.166, and eliminates regulatory 

uncertainty between the state and federal programs. 

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

and local governments affected by this administrative regulation: Any new 

major stationary source or any project at an existing major stationary source that 

commences construction after September 22, 1982, and locates in an area 

designated attainment or unclassifiable is affected by this administrative 

regulation. 

(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: Amendments to the current 

regulation include the permitting elements relating to PM2.5 emissions. Entities 

subject to this regulation are to provide PM2.5 emissions data and demonstrate 

that the project emissions do not cause or contribute to a violation of the NAAQS . 

. In the past, DAQ has used PM10 as a surrogate for PM2.5 due to inadequate test 

methods and the lack of implementation elements. However, the U.S. EPA has 

determined that the appropriate data and technology are now available and the 

use of the PM1o surrogacy policy is no longer allowed. 

(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: Affected facilities' permit applications will be 

required to provide emissions data for PM2.5 and demonstrate that the 

project's emissions do not cause or contribute to a violation of the PM2.5 

NAAQS. 

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

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

Affected facilities will incur the cost necessary to obtain a permit that 

includes an evaluation of PM2.5 emissions. 

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

identified in question (3): When operating in compliance, the affected 

facilities will not be subject to enforcement actions and penalties. 

Furthermore, compliance with the Clean Air Act requirements preserves 

and improves air quality throughout the Commonwealth. 

(5) Provide an estimate of how much it will cost the administrative body to 

implement this administrative regulation: 

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

implementation of this administrative regulation. 

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

for the implementation of this administrative regulation. 

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

54 
enforcement of this administrative regulation: The Cabinet's current 

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

administrative regulation. 

(7) 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. No increase in fees or funding is necessary to 

implement this administrative regulation amendment. 

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

directly or indirectly increases any fees. This administrative regulation does 

not establish, nor directly or indirectly increase, any fees. 

(9) TIERING: Is tiering applied? Yes. This administrative regulation only applies 

to new major stationary sources, or an existing major stationary source with a 

project, that commences construction after September 22, 1982, and is located in 

an area designated attainment or unclassifiable. 

55 
FEDERAL MANDATE ANALYSIS COMPARISON 

1. 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 PSD program make it necessary to revise this regulation to maintain federal 

approvability. 42 U.S.C. 7410(a)(1) requires Kentucky to adopt and submit a plan 

providing for the implementation, maintenance, and enforcement of a NAAQS. 

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. The Clean 

Air Act requires applicable sources demonstrate that any major construction or major 

modification will not cause emissions to cause or contribute to a violation of the 

NAAQS. 40 C.F.R. 51.166 is the federal rule that provides the framework to 

establish a plan and requirements necessary to receive full approval into the 

Kentucky SIP. 

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

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

mandate? No. This regulation is no more stringent than the federal rule, codified in 

40 C.F.R. 51.166, and no more stringent than the federal mandate established by 42 

U.S.C. 7401-7626. 

5. Justification for the imposition of the stricter standard, or additional or 

different responsibilities or requirements. Stricter standards and requirements 

are not imposed. 

56 
FISCAL NOTE ON STATE OR LOCAL GOVERNMENT 

Administrative Regulation#: 401 KAR 51:017 

·Contact person: Laura Lund, Environmental Technologist Ill 

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? The Division for Air Quality will continue to implement 

and enforce the PSD program. Also, state and local governments constructing or 

modifying a major stationary source in an area classified as attainment or 

unclassified will be impacted by this administrative regulation. 

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

authorizes the action taken by the administrative regulation. KRS 2'24.1 0-

100(5), (26); 40 CFR 51.166; and 42 U.S.C. 7401-7671q. 

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 in effect. 

(a) How much revenue will this administrative regulation generate for the state or 

local governme.nt (including cities, counties, fire departments, or school 

districts) for the first year? This administrative regulation generates no revenue. 

(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 generates no 

revenue. 

(c) How much will it cost to administer this program for the first year? The 

Cabinet's existing operating budget is the source of funding for the implementation 

of this program. 

(d) How much will it cost to administer this program for subsequent years? There 

will be no additional costs for administering this program in subsequent years. 

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

to explain the fiscal impacts of the administrative regulation. 

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

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

Other Explanation: There is no further explanation. 

57