NOTICE OF PUBLIC HEARING 

KENTUCKY DMSION FOR AIR QUALITY 

TO REVISE 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 201B of the Division for Air Quality, 200 Fair Oaks Lane, Frankfort, Kentucky. 

This hearing will be held to receive comments on the following proposed administrative regulations: 

401 KAR 51:OOl. Definitions for 401 KAR Chapter 51. (Amendment) 

401 KAR 52:001. Definitions for 401 KAR Chapter 52. (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 to receive full delegation of authority of the 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 also provided in written form, if possible. Written comments must be received by close of business 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: 

httv://www.lrc.state.ky.us/KAR~TITLE40 1 .htm. 

CONTACT PERSON: Laura Lund, Environmental Technologist 11, Regulation Development Section, Division 

for Air Quality, 1" Floor, 200 Fair Oaks Lane, Frankfort, Kentucky 40601. Phone number: (502) 564-3999, ext. 

4428; fax number: (502) 564-4666; e-mail: Laura-Lund@ky.gov. 

Louisville Metro APCD Ashland Regional Bowling Green Regional 

850 Barret Ave # 205 1 550 Wolohan Dr # 1 1508 Westen Ave 

Louisville, KY 40204 Ashland, KY 4 1 102 Bowling Green, KY 42 104 

Florence Regional Frankfort Regional 

8020 Veterans Memorial Dr 200 Fair Oaks Ln. 

Suite 1 10 3rd Floor 

Florence, KY 4 1042 Frankfort, KY 40601 

Hazard Regional 

233 Birch St 

Suite 2 

Hazard, KY 4 170 1 

London Regional 

875 S Main St 

London, KY 4074 1 

Fayette County Clerk 

162 E Main St 

Lexington, KY 40507 

Owensboro Regional Paducah Regional 

3032 Alvey Park Dr W 130 Eagle Nest Dr 

Suite 700 Paducah, KY 42003 

Owensboro, KY 42303 

Hardin County Clerk Henderson County Clerk 

Hardin Co Courthouse Henderson Co Courthouse 

Elizabethtown, KY 4270 1 Henderson, KY 42420 

(3) "Actuals PAC' or "PAL" is defined bv 40 C.F.R. 51. 166(w)(2)(i). 

(4) "Adverse impact on visibilitv" is defined bv 40 C.F.R. 51.301. 

(5) "Affected facilitv" means an apparatus, building, operation, road, or other entitv 

or series of entities that emits or mav emit an air contaminant into the outdoor 

atmosphere. 

(6) "Air contaminant" is defined bv KRS 224.01-010(1). 

(7) "Air pollutant" means air contaminant. 

(8) "Air pollution" is defined bv KRS 224.01-010(3). 

(9) "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 requlations, vital to production of the normal product of the source or 

to its normal operation. 

(10) "Allocate" or "allocation" is defined bv 40 C.F.R. 96.2. 

(1 1 ) "Allocation period" means each three (3) vear period beginning Mav 1, 2004. 

(1 2) "Allowable emissions" is defined bv: 

(a) 40 C.F.R. 51.166(b)(16); or 

(b) 40 C.F.R. 51.166(w)(2)(ii) for an actuals PAL. 

(1 3) "Alteration" means: 

(a) The installation or replacement of air pollution control equipment at a source; or 

(b) A phvsical chanqe in or change in the method of operation of an affected facilitv 

that increases the potential to emit a pollutant, to which a standard applies, emitted by 

the facilitv or that results in the emission of an air pollutant, to which a standard applies, 

not ~reviouslv emitted. 
(14) "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. 

(1 5) "Ambient air" is defined bv 40 C.F.R. 50.1 (e). 

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

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

which that concentration level is measured and is a qoal to be achieved in a stated time 

throuah the a~plication of appropriate preventive or control measures. 

(17) "ANSI" means American National Standards Institute. 

(1 8) "AOAC" means Association of Official Analvtical Chemists. 

(1 9) "ASTM" means American Societv for Testing and Materials. 

(20) "Baseline actual emissions" is defined bv 40 C.F.R. 51.166(b)(47). 

(21) "Baseline area" is defined bv 40 C.F.R. 51.166(b)(15). 

(22) "Baseline concentration" is defined bv 40 C.F.R. 51 .I 66(bMl3). 

(23) "Baseline date" means maior source baseline date or minor source baseline 

date and is established for each pollutant for which increments or other equivalent 

measures have been established if the area in which the D~ODOS~~ source or 

modification would construct is designated as attainment or unclassifiable pursuant to 

42 U.S.C. 7407(d)(l)(A)(ii) or (iii) for the pollutant on the date of the source's com~lete 

application; and 

(a) For a maior stationary source, the pollutant would be emitted in sianificant 

amounts; or 

(b) For a maior modification, there would be a significant net emissions increase of 

the pollutant. 
(24) "Begin actual construction" is defined bv 40 C.F.R. 51.166(b)(lI). 

(25) "Best available control technologv" or "BACT" is defined bv 40 C.F.R. 

51.166(b)(12). 

(26) "BOD" means biochemical oxidant demand. 

(27) "Boiler" is defined bv 40 C.F.R. 96.2. 

(28) "BTU" means British thermal unit. 

(29) "Building, structure, facility, or installation" is defined bv 40 C.F.R. 51.166(b)(6). 

(30) "C" means deqree Celsius (centigrade). 

(31) "Cabinet" is defined bv KRS 224.01-010(9). 

(32) "Cal" means calorie. 

(33) "Capital expenditure" is defined bv 40 C.F.R. 60.2. 

(34) "cfm" means cubic feet per minute. 

(35) "CH; means methane. 

(36) "Clean coal technologv" is defined bv 40 C.F.R. 51.166(b)(33). 

(37) "Clean coal technoloqv demonstration project" is defined bv 40 C.F.R. 

51.166(b)(34). 

(38) "Clinker" means the product of a portland cement kiln from which finished 

cement is manufactured bv milling and grinding. 

(39) "COW means carbon monoxide. 

(40) "C0~1 means carbon dioxide. 

(41) "COD" means chemical oxidant demand. 

(42)"Combined cvcle svstem" is defined bv 40 C.F.R. 96.2. 

(43) "Combustion turbine" is-defined bv 40 C.F.R. 96.2. 
(44) "Commence": 

(a) Means that an owner or operator has undertaken a continuous program of 

construction, modification, or reconstruction of an affected facilitv, or that an owner or 

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

reasonable time, a continuous proqram of construction, modification, or reconstruction 

of an affected facilitv; or 

(b) Is defined bv 40 C.F.R. 51.166(b)(9) for the PSD or NSR program. 

(45) "Commence commercial operation" is defined bv 40 C.F.R. 96.2. 

(46) "Commence operation" is defined by 40 C.F.R. 96.2. 

(47) "Complete" is defined bv 40 C.F.R. 51.166(b)(22). 

(48) "Compliance schedule" means a time schedule of remedial measures including 

an enforceable sequence of actions or operations leading to compliance with a limitation 

or standard. 

(49) "Compliance supplement pool" means the quantitv of NOx allowances provided 

to Kentucky bv the U.S. EPA to be: 

(a) Allocated to NOx budget units that achieve earlv reduction; or 

(b) Used to assist NOx budget sources that are unable to meet the compliance 

deadline as provided in 401 KAR 51 : 180, Section 5. 

(50) "Construction": 

(a) Means fabrication, erection, installation, or modification of an air contaminant 

source; or 

(b) Is defined for use in the PSD or NSR program bv 40 C.F.R. 51.166(bM8). 

(51) "Continuous emissions monitoring svstem" or "CEMS" is defined bv: 
1 (a) 40 C.F.R. 51 .166(b)(43) for 401 KAR 51 :017; or 

2 (b) 40 C.F.R. 51.165(a)(l)(xxxi) for 401 KAR 51:052. 

3 (52) "Continuous emission monitorinq system for NOx" or "CEMS for NOx" is 

4 defined bv 40 C.F.R. 96.2. 

(53) "Continuous emissions rate monitoring svstem" or "CERMS" is defined bv 40 

C.F.R. 51 .l66(b)(46). 

(54) "Continuous monitorinq svstem" means the total equipment, required under the 

applicable administrative requlations 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. 

(55) "Continuous parameter monitoring svstem" or "CPMS" is defined bv: 

(a) 40 C.F.R. 51 .l66(b)(45) for 401 KAR 51:017; or 

(b) 40 C.F.R. 5l.l65(a)(l)(xxxiii) for 401 KAR 51 :052. 

(56) "Control period" is defined bv 40 C.F.R. 96.2. 

(57) "Director" means Director of the Division for Air Qualitv of the Enernv and 

Environment Cabinet. 

(58) "District" is defined bv KRS 224.01-OlO(11). 

(59) "dscf' means dn/ cubic feet at standard conditions. 

(60) "dscm" means dn/ cubic meter at standard conditions. 

(61) "Electric qeneratinq unit" means, for 401 KAR 51 :I60 to 51 :195, a fossil fuelfired boiler, combustion turbine, or a combined cvcle svstem used to generate twentvfive (25) meqawatts or more of electricitv, some of which is offered for sale. 
1 (62) "Electric utilitv steam qeneratinq unit" or "EUSGU" is defined bv 40 C.F.R. 

2 51.166(b)(30). 

3 (63) "Emission standard" means that numerical limit that fixes the amount of an air 

4 contaminant or air contaminants that mav be vented into the atmosphere from an 

5 affected facilitv or from air pollution control equipment installed in an affected facilitv. 

6 (64) "Emissions unit" is defined bv: 

7 (a) 40 C.F.R. 51 .166tb)(7) for 401 KAR 51:017; or 

8 (b) 40 C.F.R. 51.165(a)(l)(vii) for 401 KAR 51:052. 

9 (65) "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 

subiect to the standards; 

(b) A time period adequate to demonstrate compliance with the standards; and 

(c) The method the source shall use to achieve and demonstrate compliance with 

the limitations and standards, includinq appropriate monitoring, recordkeepina and 

re~ortinq. 

(66) "Equivalent method" is defined by 40 C.F.R. 60.2. For purposes of this 

definition, "administrator" means both the U.S. EPA and the cabinet. 

(67) "Excess NOx emissions" is defined bv 40 C.F.R. 96.2. 

(68) "Exempt compound" or "exempt solvent" means an organic compound listed in 

the definition of volatile orqanic compound as not participating in atmospheric 

photochemical reactions. 

23 (69) "Existing source" means a source that is not a new source. 

7 
(70) "Extreme nonattainment countv" or "extreme nonattainment area" means a 

countv or portion of a countv desiqnated extreme nonattainment for the national 

ambient air qualitv standard for ozone. 

(71) "OF" means degree Fahrenheit. 

(72) "Federal land manaqer" is defined bv 40 C.F.R. 51.166(b)(24). 

(73) "Federallv enforceable" is defined bv 40 C.F.R. 51 .l66(b)(l7). For purposes of 

this definition, "administrator" means the U.S. EPA. 

(74) "Federallv-enforceable permit" means a permit issued under 401 KAR 52:020 

or 52:030, as appropriate. 

(75) "Fixed capital cost" is defined bv 40 C.F.R. 51.166(b)(55). 

(76) "Fossil fuel" is defined bv 40 C.F.R. 96.2. 

(77) "Fossil fuel fired" is defined bv 40 C.F.R. 96.2. 

(78) "ft" means feet or foot. 

(79) "Fuel" means natural qas; petroleum; coal; wood; or a form of solid, liquid, or 

gaseous fuel derived from these materials for the purpose of creatinq useful heat. 

(80) "Fuqitive emissions": 

(a) Means those emissions that could not reasonablv pass throuqh a stack, 

chimnev, vent, or other functionallv equivalent opening; 

(b) Is defined bv 40 C.F.R. 51.166(b)(20) for 401 KAR 51:017; or 

(c) IS defined bv 40 C.F.R. 51.165(a)(I)(ix) for 401 KAR 51:052. 

(81 ) "q" means qram. 

(82) "qal" means qallon. 

(83) "General fund" is defined bv KRS 48.01 O(15Ma). 
(84) "Generator" is defined by 40 C.F.R. 96.2. 

(85) "qr" means grain. 

(86) "HCI" means hvdrochloric acid. 

(87) "Heat input" is defined bv 40 C.F.R. 96.2. For purposes of this definition, 

"administrator" means the cabinet. 

(88) "HF" means hvdrogen fluoride. 

(89) "Ha" means mercuw. 

(90) "High terrain" is defined bv 40 C.F.R. 51.166(b)(25). 

(91) "hr" means hour. 

(92) "Hvdrocarbon" means an orqanic compound consisting predominantlv of 

carbon and hvdrogen. 

(93) "Hvdrocarbon combustion flare" means: 

(a) A flare used to complv with an applicable New Source Performance Standard 

INSPSI or Maximum Achievable Control Technoloqv (MACT) standard, including uses 

of flares during startup, shutdown, or malfunction permitted under the standard; or 

(b) A flare that serves to control emissions of waste streams comprised 

predominatelv of hvdrocarbons and containina no more than 230 uqldscm hvdrogen 

sulfide. 

(94) "H7OW means water. 

(95)s'' means hvdroaen sulfide. 

(96) "H7S04 - -means sulfuric acid. 

(97) "in" means inch. 
(98) "Incineration" means the process of igniting and burning solid, semisolid, liquid, 

or gaseous combustible wastes. 

(99) "Industrial boiler or turbine" means a fossil fuel-fired boiler, combustion turbine, 

or a combined cvcle system having a maximum desiqn heat input of 250 MMBTU Der 

hour or more that is not an electric generating unit. 

(1 00) "Innovative control technoloqv" is defined bv 40 C.F.R. 5l.l66(b)(l9). 

(101) "Intermittent emissions" means emissions of particulate matter into the open 

air from a process that operates for less than anv six (6) consecutive minutes. 

(102) "J" means ioule. 

(103) "Kg" means kilogram. 

(104) "I" means liter. 

(105) "lb" means pound. 

(106) "Lenallv enforceable" means the cabinet or the U.S. EPA has the authoritv to 

enforce a certain restriction. 

(107) "Long drv kiln" means a kiln that emplovs no preheating of the feed and has a 

drv inlet feed. 

(108) "Long wet kiln" means a kiln that emplovs no preheating of the feed and the 

inlet feed to the kiln is a slurrv. 

(109) "Low terrain" means an area other than high terrain. 

(1 10) "Lowest achievable emissions rate" or "LAER is defined bv 40 C.F.R. 

51 .165(a)(I )(xiii). 

(I I I) "m" means meter. 

(1 12) "my means cubic meter. 
(1 13) "Maior emissions unit" is defined by 40 C.F.R. 5l.l66(w)(2)(iv). 

(1 14) "Maior modification" is defined bv: 

(a) 40 C.F.R. 51.166(b)(2) for 401 KAR 51:017; or 

(b) 40 C.F.R. 51 .l65(a)(l )(v) for 401 KAR 51 :O52. 

(115)"Maior NSR permit" means a permit issued under Kentuckv's PSD or NSR 

proaram. 

(116) "Maior source" is defined bv 40 C.F.R. 70.2. For purposes of chapter 51, 

"subiect to regulation'' is defined bv this administrative regulation. 

(1 17) "Maior source baseline date" is defined bv 40 C.F.R. 51.166(b)(14)(i) and (iii). 

(1 18) "Maior stationarv source" is defined bv: 

(a) 40 C.F.R. 51 .l66(b)(l) for 401 KAR 51:017; or 

(b) 40 C.F.R. 51.165(a)(l)(iv)(A)(1) for 401 KAR 51:052. 

(1 19) "Malfunction" is defined bv 40 C.F.R 60.2. 

(120) "Mandatorv Class I area" means an area identified in 40 C.F.R. Part 81, 

Subpart D, if the administrator of the U.S. EPA, in consultation with the Secretarv of the 

United States Department of Interior, has determined visibilitv to be an important value. 

(121) "Marqinal nonattainment countv" or "marginal nonattainment area" means a 

countv or portion of a countv designated marginal nonattainment for the national 

ambient air aualitv standard for ozone. 

(122) "Maximum design heat input" is defined bv 40 C.F.R. 96.2. 

(123) "Maximum potential hourlv heat input" is defined bv 40 C.F.R. 96.2. 

(124) "Maximum potential NOx emission rate" is defined bv 40 C.F.R. 96.2. 

(125) "Maximum rated hourlv heat input" is defined bv 40 C.F.R. 96.2. 
1 (1 26) "~cf means microgram. 

2 (127) "ma" means milligram. 

3 (128) "Mid-kiln firinq" means the secondam firing in kilns by iniecting solid fuel at an 

4 intermediate point in the kiln usinq a speciallv desiqned feed iniection mechanism for 

5 the purpose of decreasinq NOx emissions throuah: 

6 (a) Burning part of the fuel at a lower temperature: and 

7 (b) Reducina-conditions at the solid waste iniection point that mav destrov some of 

8 the NOx formed upstream in the kiln burning zone. 

9 (129) "min" means minute. 

10 (130) "Minor source baseline date" is defined bv 40 C.F.R 51.166(b)(14Mi) - (iv). 

11 (1 31 ) "MJ" means megaiouies. 

12 (1 32) "mm" means millimeter. 

13 (133) "MM" means million. 

14 (134) "mo" means month. 

15 (1 35) "Moderate nonattainment county" or "moderate nonattainment area" means a 

16 countv or portion of a countv designated moderate nonattainment for the national 

17 ambient air aualitv standard for ozone. 

18 (136)(a) "Modification" is defined bv 40 C.F.R 60.2. 

19 (b) Exceptions to the definition of "modification" are listed in 40 C.F.R 60.14(e). For 

20 purposes of this definition, "administrator" means the cabinet. 

2 1 (137) "Monitoring device" means the total equipment, required bv an applicable 

22 administrative regulation in 401 KAR Chapters 50 to 65, used to measure and record, if 

23 applicable, process parameters. 
(138) "Monitoring svstem" means a monitoring svstem that meets the requirements 

of 40 C.F.R. Part 96. 

(1 39) "MWe" means megawatt electrical. 

(140) 'IN2 means nitroaen. 

(141) "Nameplate capacity" is defined bv 40 C.F.R. 96.2. 

(142) "Natural conditions" means those naturallv occurrina phenomena that reduce 

visibilitv as measured in terms of visual range, contrast, or coloration. 

(143) "Necessaw preconstruction approvals or permits" is defined bv 40 C.F.R. 

51.166(b)(lO). 

(144Ma) "Net emissions increase" means, for anv regulated NSR pollutant emitted 

bv a maior stationary source, the amount bv which the sum of subparaqra~hs 1 and 2 of 

this paraaraph exceeds zero: 

1. An increase in emissions from a particular phvsical change or change in method 

of operation at a stationaw source as calculated pursuant 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 contemporaneous with the particular change and are otherwise 

creditable. Baseline actual emissions for calculating increases and decreases under this 

paraaraph are determined as defined in this section. 

(b) An increase or decrease in actual emissions is contemporaneous with the 

increase from the particular change onlv if: 
1 1. For construction that commences prior to Januarv 6, 2002, the change occurs 

2 between the date ten (10) Vears before construction on the change commences, and 

3 the date that the increase from the change occurs; and 

4 2. For construction that commences on and after Januarv 6, 2002, the chanae 

5 occurs between the date five (5) vears before construction on the change commences, 

6 and the date that the increase from the change occurs. 

7 (c) An increase or decrease in actual emissions is creditable only if: 

8 1. The cabinet or the U.S. €PA has not relied on the chanqe in issuinq a permit for 

9 the source pursuant to 401 KAR 511017, 51:052, or 40 C.F.R. 52.21: and 

10 2. The permit is in effect at the time the increase or decrease in actual emissions 

from the particular change occurs. 

(dl An increase or decrease in actual emissions of sulfur dioxide, articulate matter, 

or nitroqen oxides that occurs before the applicable minor source baseline date is 

creditable onlv if it is required to be considered in calculating the amount of maximum 

p 

allowable increases remaining available. For particulate matter, onlv PMIO emissions 

(e) An increase in actual emissions is creditable onlv to the extent that the new level 

of actual emissions exceeds the old level. 

(f) A decrease in actual emissions is creditable only to the extent that: 

20 1. The old level of actual emissions or the old level of allowable emissions, 

21 whichever is lower, exceeds the new level of actual emissions; 

22 2. The decrease is enforceable as a practical matter at and after the time that actual 

23 construction on the particular change begins; and 
1 3. The decrease has approximately the same qualitative siqnificance for public 

2 health and welfare as that attributed to the increase from the particular chanqe. 

3 (a) An increase that results from a physical change at a source occurs if the 

4 emissions unit on which construction occurred becomes operational and beains to emit 

5 a particular pollutant. A replacement unit that requires shakedown becomes operational 

6 onlv after a reasonable shakedown period, not to exceed 180 davs. 

7 (h) The term, actual emissions, as defined in subsection (2) of this section does not 

apply in determining creditable increases and decreases. 

(145) "New source" means a source, the construction, reconstruction, or modification 

of which commenced on or after the classification date as defined in the applicable 

administrative requlation, irrespective of a chanqe in emission rate. 

(146) "Nitrogen oxides" means all oxides of nitroaen except nitrous oxide, as 

measured bv test methods specified bv the cabinet. 

(147) "na" means nanograms. 

(148) "NO means nitric oxide. 

(149) "NO," means nitroqen dioxide. 

(150) "Nonattainment maior new source review program" or "NSR proaram" is 

defined bv 40 C.F.R. 51.165(a)(l)(xxx). For purposes of this definition, "administrator" 

means the U.S. EPA. 

(1 51) "NOx" means nitrogen oxides. 

(1 52) "NOx allowance" is defined by 40 C.F.R. 96.2. 

(153) "NOx Allowance Trackinq System (NATS)" is defined bv 40 C.F.R. 96.2 For 

purposes of this definition, "administrator" means the U.S. EPA. 
(154) "NOx authorized account representative" is defined bv 40 C.F.R. 96.2. 

(155) "NOx budget emissions limitation" means, for a NOx budget unit, the tonnaqe 

equivalent of the NOx allowances available for compliance deduction for the unit and for 

a control period under 401 KAR 51:160 adiusted bv deductions of sufficient NOx 

allowances to account for: 

(a) Actual utilization under 40 C.F.R. 96.42(e) for the control period; 

(b) Excess NOx emissions for a prior control period under 40 C.F.R. 96.54(d); 

(c) Withdrawal from the NOx budget program under 40 C.F.R. 96.86; or 

(d) A change in requlatow status for a NOx budqet opt-in source under 40 C.F.R. 

96.87. 

(156) "NOx budget opt-in source" means an affected facilitv that has elected to 

become a NOx budget unit under the NOx Budget Tradinq Program and whose NOx 

13 budget opt-in permit has been issued and is in effect. 

14 (157) "NOx budqet source" is defined bv 40 C.F.R. 96.2. 

15 (158) "NOx Budget Trading Proqram" is defined by 40 C.F.R. 96.2. 

16 (159) "NOx budqet unit" means a unit that is subiect to the NOx BI 

17 Program emissions limitation under 401 KAR 51:160 or 40 C.F.R. 96.80. 

~dget Tradinq 

18 (160) "NOx budget unit operator" means a person who operates, controls, or 

19 su~ervises a NOx budaet unit, a NOx budget source. or a unit for which an application 

20 for a NOx budqet opt-in permit under 401 KAR 51:195 is submitted and not denied or 

21 withdrawn and includes a holdinq companv, utility svstem, or ~lant manager of a NOx 

22 budget unit or source. 

23 (161) "NOx budget unit owner" means: 

16 
(a) A holder of a portion of the legal or equitable title in a NOx budget unit or in a 

unit for which an application for a NOx budget opt-in permit under 401 KAR 51:195 is 

submitted and not denied or withdrawn; 

(b) A holder of a leasehold interest in a NOx budget unit or in a unit for which an 

application for a NOx budget opt-in permit under 401 KAR 51:195 is submitted and not 

denied or withdrawn; 

(c) A purchaser of power from a NOx budget unit or from a unit for which an 

application for a NOx budget opt-in permit under 401 KAR 51:195 is submitted and not 

denied or withdrawn under a life-of-the-unit, firm power contractual arrangement and 

unless expresslv provided for in a leasehold aareement, does not include a passive 

lessor, or a person who has an equitable interest throuqh the lessor, whose rental 

payments are not based, either directly or indirectlv, upon the revenues or income from 

the NOx budget unit or the unit for which an application for a NOx budget opt-in permit 

under 401 KAR 51:195 is submitted and not denied or withdrawn; or 

(d) For anv general account, a person who has an ownership interest with respect to 

the NOx allowances held in the general account and who is subiect to the binding 

agreement for the NOx authorized account representative to represent that person's 

ownership. 

(162)' means oxvgen. 

(163) "03" means ozone. 

(164) "Opacitv" is defined bv 40 C.F.R. 60.2. 
(165) "Operatins" means, for a NOx budaet unit, having documented heat input for 

more than 876 hours in the six (6) months immediatelv preceding the submission of an 

application for an initial NOx budget permit. 

(166) "Operator" means, for a NOx budqet unit, anv person who operates, controls, 

or supervises a NOx budget unit, a NOx budqet source, or unit for which an application 

for a NOx budget opt-in permit is submitted and not denied or withdrawn, and includes 

anv holdinq companv, utility svstem, or plant manager of the unit or source. 

(167) "Opt-in" means to be elected to become a NOx budget unit under the NOx 

Budget Tradinq Program through a final NOx budqet opt-in permit. 

(168) "Owner", for a NOx budqet unit, is defined bv 40 C.F.R. 96.2. 

(169) "Owner or operator" is defined bv 40 C.F.R. 60.2. 

(170) "OZ" means ounce. 

(171) "Ozone depletinq potential" or "ODP", means pursuant to 40 C.F.R. Part 82, 

Subpart A, Appendices A and B, the ratio of the total amount of ozone destroved bv a 

fixed amount of an ozone depleting substance to the amount of ozone destroved bv the 

same mass of trichlorofluoromethane (CFC-11) in which the ozone depleting potential of 

CFC-11 is eaual to one and zero tenths (1.0). 

(172) "Ozone depleting substance" or "ODs" means anv chemical compound 

regulated under 40 C.F.R. Part 82 with decay products, after the photolvsis of the ODs 

bv short-wave ultraviolet light, that are able to catalvze the destruction of stratospheric 

ozone. 

(1 73) "PAL effective date" is defined bv 40 C.F.R. 51.166(wM2)(vi). 

(174) "PAL effective period" is defined by 40 C.F.R. 5l.l66(w)(2)(vii). 
(175) "PAL maior modification" is defined bv 40 C.F.R. 51.166(w)(2)(viii). 

(1 76) "PAL permit" is defined bv 40 C.F.R. 51.166(~)(2)(ix). 

(1 77) "PAL pollutant" is defined bv 40 C.F.R. 51.166(w)(2)(x). 

(178) "Particulate matter" is defined bv 40 C.F.R. 60.2. 

(179) "Particulate matter emissions" is defined bv 40 C.F.R. 51.100(~~), exceot as 

used in 40 C.F.R. Part 60. 

(180) "Peak load" means the maximum instantaneous operatins load. 

(181) "Permitted capacitv factor" means the annual permitted fuel use divided bv the 

manufacturer's specified maximum fuel consumption multiplied bv 8,760 hours per vear. 

(182) "Person" is defined by KRS 224.01-01 O(l7). 

(183) "Plant-wide applicabilitv limitation" or "PAL" means an emission limitation, 

expressed in tons per vear, for a pollutant at a maior stationarv source, that is 

enforceable as a practical matter and is established source-wide in accordance with 401 

KAR 51 :017 or 51 :052. 

(184) "PM2 511 means particulate matter with an aerodvnamic diameter less than or 

equal to a nominal two and five-tenths (2.5) micrometers as measured bv a reference 

method in 40 C.F.R. Part 50, Appendix L, and designated in accordance with 40 C.F.R. 

Part 53, or bv an equivalent method designated in accordance with 40 C.F.R. Part 53. 

(185) "PMIo" is defined bv 40 C.F.R. 5l.lOO(qq). 

(186) "PMlo - emissions" means finely divided solid or liquid material with an 

aerodvnamic diameter less than or equal to a nominal ten (10) micrometers emitted to 

the ambient air as measured bv an applicable reference method, or an eauivalent or 
alternative method specified in 40 C.F.R. Chapter I. or bv a test method specified in the 

Kentuckv SIP. 

(1 87) "Pollution prevention" is defined bv 40 C.F.R. 51 .I 66(b)(38). 

(1 88) "Portland cementt' means a hydraulic cement produced bv pulverizinw clinker 

consistins essentiallv of hydraulic calcium silicates. 

(189) "Portland cement kiln" means a svstem, includinq solid, gaseous or liquid fuel 

combustion equipment, used to calcine and fuse raw materials, includinq limestone and 

clav, to produce Portland cement clinker. 

(190) "Potential to emit" or "PTE": 

(a) Means the maximum capacity of a stationan/ source to emit a pollutant under its 

phvsical and operational design, in which: 

1. A phvsical or operational limitation on the capacitv of a source to emit an air 

pollutant, including air pollution control equipment and restrictions on hours of operation 

or on the tvpe or amount of material combusted, stored, or processed, is treated as part 

of its desiqn if the limitation is enforceable as a practical matter; and 

2. This definition does not alter or affect the use of this term for other purposes of 

the Clean Air Act, 42 U.S.C. 7401 -767lq, or the term "capacitv factor" as used in the 

Acid Rain Program; 

(b) Is defined bv 40 C.F.R. 51.166(b)(4) for 401 KAR 51:017; or 

(c) IS defined bv 40 C.F.R. 5I.l65(a)(l)(iii) for 401 KAR 51:052. 

(1911 "ppb" means parts per billion. 

(192) "ppm" means parts per million. 

(1931 "ppm(w1w)" means parts per million (weight bv weight). 
(194)- "Precalciner kiln" means a kiln in which the feed to the kiln svstem is 

preheated in cyclone chambers and utilizes a second burner to calcine material in a 

separate vessel attached to the re heater prior to the final fusion in a kiln that forms 

clinker. 

(195) "Predictive emissions monitoring system" or "PEMS" is defined by 40 C.F.R. 

51.166(b)(44). 

(196) "Preheater kiln" means a kiln in which the feed to the kiln svstem is preheated 

in cvclone chambers prior to the final fusion in a kiln that forms clinker. 

(197) "Prevention of Significant Deterioration Proqram" or "PSD Proqram" is defined 

bv 40 C.F.R. 51.166(b)(42). 

(198) "Proiect" is defined bv 40 C.F.R. 51.166(b)(51). 

(199) "Projected actual emissions" is defined bv 40 C.F.R 51.166(b)(40). 

(200) "psia" means pounds per square inch absolute. 

(201) "psiq" means pounds per square inch sage. 

(202) "RACTIBACTILAER Clearinqhouse" or "RBLC" means the U.S. EPA's online 

collection of previous RACTIBACTILAER determinations. 

(203) "Reactivation of a very clean coal-fired EUSGU" is defined bv 40 C.F.R. 

51.166(b)(37). 

(204) "Reasonable further proqress" is defined by 42 U.S.C. 7501 (1 ). For purposes 

of this definition, "administrator" means the U.S. EPA. 

(205) "Reconstruction" means the replacement of components of an existing 

affected facilitv to the extent that: 
(a) The fixed capital cost of the new components exceeds fiftv (50) percent of the 

fixed capital cost that would be required to construct a comparable entirelv new affected 

facilitv; and 

(b) It is technoloqicallv and economicallv feasible to meet the applicable 

requirements of 401 KAR Chapters 50 to 65. 

(206) "Reference method" means a method of sampling and analvzing 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 B; 40 C.F.R. Part 61, A~pendix B; or 40 C.F.R. Part 

63, Appendices A to D. 

(207) "Requlated NSR ~ollutant" is defined bv 40 C.F.R. 51 .I66(b)(W. 

(208) "Replacement unit" is defined bv 40 C.F.R. 51.166(b)(32). 

(209) "Repowerinq" is defined bv 40 C.F.R. 51.166(b)(36). For purposes of this 

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

(210) "Responsible official" is defined bv 40 C.F.R. 70.2. 

(21 1) "Run" is defined bv 40 C.F.R. 60.2. 

(212) "S" means at standard conditions. 

(21 3) "sec" means second. 

(214) "Secondarv emissions" is defined bv 40 C.F.R. 51 .I 66(b)(l8). 

(215) "Serious nonattainment countv" or "serious nonattainment area" means a 

countv or portion of a countv designated serious nonattainment for the national ambient 

air aualitv standard for ozone. 
(216) "Severe nonattainment countv" or "severe nonattainment area" means a 

countv or portion of a countv desiqnated severe nonattainment for the national ambient 

air aualitv standard for ozone. 

(217) "Shutdown" means the cessation of an operation. 

(21 8) "Significant" is defined bv: 

(a) 40 C.F.R. 51.166(b)(23) for 401 KAR 51:017; or 

(b) 40 C.F.R. 51.165(a)(l)(x) for 401 KAR 51:052. 

(21 9) "Significant emissions increase" is defined bv: 

(a) 40 C.F.R. 51 .l66(b)(39) for 401 KAR 51 :Ol7; or 

(b) 40 C.F.R. 5l.l65(a)(l)(xxvii) for 401 KAR 51 :052. 

(220) "Significant emissions unit" is defined bv: 

(a) 40 C.F.R. 51 .I 66(w)(2)(xi) for 401 KAR 51 :017; or 

(b) 40 C.F.R. 51.165(0(2)(xi) for 401 KAR 51:052. 

(221) "Small emissions unit" is defined bv: 

(a) 40 C.F.R. 51.166(~)(2)(iii) for 401 KAR 51:017: or 

(b) 40 C.F.R. 51.165(0(2)(iii) for 401 KAR 51:052. 

(222) "SO>" means sulfur dioxide. 

(223) "Source" means one (1) or more affected facilities contained within a given 

contiquous propertv line, which means the propertv is separated onlv bv a public 

thoroughfare, stream, or other riqht of wav. 

(224) "sq" means square. 

(225) "Stack or chimney" means a flue, conduit, or duct arranged to conduct 

emissions to the atmosphere. 
1 (226) "Standard" means an emission standard, a standard of performance, or an 

2 ambient air qualitv standard as promulgated in 401 KAR Chapters 50 to 65 or the 

3 emission control requirements necessarv to comply with 401 KAR Chapter 51. 

4 (227) "Standard conditions" means: 

5 (a) For source measurements, twenty (20) degrees Celsius (sixtv-eight (68) degrees 

6 Fahrenheit) and a pressure of 760 mm Hg (29.92 in. of Ha). 

(b) For air quality determinations, twentv-five (25) degrees Celsius (seventv-seven 

/77) degrees Fahrenheit) and a reference pressure of 760 mm Hg (29.92 in. of Hd. 

(228) "Start-up" or "startup" means the settinq in operation of an affected facilitv. 

(229) "State implementation plan" or "SIP" means the most recentlv prepared plan 

or revision required bv 42 U.S.C. 741 0 that has been approved bv the U.S. EPA. 

(230) "Stationan, source" is defined bv 40 C.F.R. 51.166(b)(5). 

(231) "Subiect to regulation" is defined bv 40 C.F.R. 51.166tb)(48) for the PSD and 

NSR programs. 

(232) "Submit" means to send or transmit a document, information, or 

correspondence in accordance with an applicable requirement. 

(233) "TAPPI" means Technical Association of the Pulp and Paper Industrv. 

(234) "Temporarv clean coal technoloqv demonstration proiect" is defined bv 40 

C.F.R. 51.166(b)(35). 

(235) "Ton" or "tonnaae" for a NOx budqet source is defined bv 40 C.F.R. 96.2. 

2 1 (236) "Total suspended particulates" or "TSP" is defined bv 40 C.F.R. 51.100~~~~. 

22 (237) "tpv" means tons per year. 

23 (238) "TSS" means total suspended solids. 
(239) "Uncombined water" means water that can be separated from a compound bv 

ordinarv phvsical means and that is not bound to a compound bv internal molecular 

forces. 

(240) "Unit" is defined bv 40 C.F.R. 96.2. 

(241) "Urban countv" means a countv that is a part of an urbanized area with a 

population qreater than 200.000 based uoon the 1980 census. If a portion of a countv is 

a part of an urbanized area, then the entire countv is classified as urban for 401 KAR 

Chapters 50 to 65. 

(242) "Urbanized area" means an area defined bv the U.S. Department of 

Commerce, Bureau of Census. 

(243) "U.S. EPA" means the United States Environmental Protection Aqencv. 

(244) "UTM" means Universal Transverse Mercator. 

(245) "Visibilitv impairment" is defined bv 40 C.F.R. 51.301. 

(246) "Volatile orqanic compound" or "VOC" is defined bv 40 C.F.R. 51.100(s). 

(247) "vd" means vard. 

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Section 2. Incorporation by Reference. (1) "Standard Industrial Classification 

Manual", 1987, as published by the Office of Management and Budget is incorporated 

by reference. 

(2) This material may be inspected, copied or obtained, subject to applicable 

copyright law, at the following main and regional offices of the Kentucky Division for Air 

Quality during the normal working hours of 8 a.m. to 4:30 p.m., local time: 

(a) Kentucky Division for Air Quality, 200 Fair Oaks Lane, 1st floor, Frankfort, 

Kentucky 40601 -1403, (502) 564-3999; 

(b) Ashland Regional Office, 1550 Wolohan Drive, Suite 1, Ashland, Kentucky 

41 102, (606) 929-5285; 

(c) Bowling Green Regional Office, 1508 Westen Avenue, Bowling Green, Kentucky 

421 04, (270) 746-7475; 

(d) Florence Regional Office, 8020 Veterans Memorial Drive, Suite 110, Florence, 

Kentucky 41 042, (859) 525-4923; 

(e) Frankfort Regional Office, 643 Teton Trail, Suite B, Frankfort, Kentucky 40601, 

(502) 564-3358; 

(f) Hazard Regional Office, 233 Birch Street, Suite 2, Hazard, Kentucky 41701, 

(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, 

Kentucky 42303, (270) 687-7304; and 
(i) Paducah Regional Office, 130 Eagle Nest Drive, Paducah, Kentucky 42003, 

(270) 898-8468. 

(3) The Standard Industrial Classification Manual is also available under Order No. 

PB 87-100012 from the National Technical Information Service, 5285 Port Royal Road, 

Springfield, Virginia 221 61, phone (703) 487-4650. 
Leonard K. Peters, Secretary 

Energy and Environment Cabinet 

Date 
PUBLIC HEARING AND 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 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 

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 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, 1 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. 
REGULATORY IMPACT ANALYSIS 

AND TIERING STATEMENT 

Administrative Regulation #: 401 KAR 51:001 

Contact person: Laura Lund, Environmental Technologist II 

(1) Provide a brief summary of: 

What this administrative regulation does: This administrative regulation 

defines the terms used in 401 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 

corresponding federal 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 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 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 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 

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 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 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] 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 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 224.1 0-1 OO(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. 

(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 

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 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 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 permits will have to 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 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 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 

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 made to 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 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. 

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 

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 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 

224.1 0-1 OO(5). 

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

the federal definitions for this program necessitate changes in the 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. 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 

corresponding federal 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 permit from the 

Division for 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 is to be in effect. 

(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 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 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 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 necessary to operate this program.