### Bill Richardson Governor 

# State 

# of New Mexico oftzce 

# of the Governor

June 

### 1 1,2009

Mr. Lany Starfield Acting Regional Administrator U.S.. Environmental Protection Agency, Region 6 1445 Ross Avenue Dallas, 

## TX 75202-271 1

Dear Mr. Starfield:

On behalf of the New Mexico Environment Department, 

## I am pleased to submit to the Environmental Protection Agency the enclosed revisions to the New Mexico State Implementation Plan (SIP). These revisions include amendments to New Mexico Administrative Code (NMAC) 20.2.2NMAC
- 

### DeJinitions; 20.2.74 NMAC 

### -Permits -Prevention of SigniJicantDeterioration; and 202.2.79 NMAC 

### -Permits - 

### Nonattainment areas. The hearing record for all of the SIP revisions is attached, which includes the filed regulations, transcripts, exhibits, public notices, affidavits of publication, the notice of intent to testify, and public

comments.

If there are any questions concerning this SIP submittal, please contact Mary Uhl, Air Quality Bureau Chief, at (505) 476-4301.

Sincerely,

Bill Richardson Governor of New Mexico

Enclosures

cc: Jeffrey Robinson, EPA Region 6 Guy Donaldson, EPA Region 6 Ron Cuny, NMED, Cabinet Secretary Jim Norton, NMED, Environmental Protection Division Director Mary Uhl, Air Quality Bureau Chief

State Capitol 

# . Room 400 Santa Fe, New Mexico 87501 505-476-2200 www.govemor.state.nm.us

# NMAC TMNSMInAL FORM

[Sequence # 

### 1

1. Issuing Agency

-- 2. Agenq-Code (DFA)

- - 

# I Environmental Improvement Board 

# / 667 

# J 1 3. Agency Address 

### ---



### P.Q. Box 26110 1190 St. Francis Drive, Santa Fe, New Mexico 87502

4. Contact Person 

# -1 Gail Cooke 

# / Phone # 

# 1 (505) 476-4319 

# 1 FAX 

# 1 (505) 476-4375 Gail.cooke@state.nm.us

5. Type of Rule Action

New Amendment Renumber 

# [? Repeal Emergency

6. Total number of pages: 2 

# 1 8. Effective date: 

# / 87;1/09 -- 

# _]

[ 13 Most recent filing date (if applicable) 

## I

10. MMACName Title 

# i Chapter Environmental Protection 

### 1 Air Quality 

# 1

Fe:nitions 

## / (Statewide)

14 Are there any materials incorporated by reference? 11. Amendment Description 

# I-- Reference 

### / Internet site

-.

No x Yes Please list attachments and Internet site(s) if applicable 2 12 Amendment's NMAC Citation

15 If materials are attached, has copyright permission been received? Amended Sections 

## - 1Section 120.2.2.7 

### NMAC

Public domain 

# 0

16 Legal citation(s) that allows the IssungAgencyto regulate and the Lssuing Aufhorifyto promulgate regulations on this subjea(provide all that awlyJ. 174-1-8 

## NMSA 1978; Chapter 74, Article 

### 2 NMSA 1978

17 Signature &Title of Issuing Authority (Delegated authority must

### be onfile)

-

Name: Gregory Green Check if delegated authority
Title: Chair 

# 0

### This is an amendment to 20.2.2 NMAC, Section 

### 7 effective 813 1/09.

20.2.2.7 

### DEFINITIONS: The following definitions apply to all Parts of Title 20, Chapter 2 NMAC. A. "Administrator" means the administrator of the IJnited States environmental protection agency (US EPA) or his or her designee. B. "Aerodynamic diameter" means the diameter of a sphere of unit density which behaves aerodynamically the same as the particle of the test substance. It is used to predict where particles of different size and density may be deposited in the respiratory tract. C. "Air contaminant" means any airborne substance, including but not limited to, any particulate matter, fly ash, dust, fumes, gas, mist, smoke, vapor, micro-organisms, radioactive material, any combination thereof or any decay or reaction product thereof. D. "Air pollution" means the emission, except as such emission occurs in nature, into the outdoor atmosphere of one or more air contaminants in such quantities and duration as may with reasonable probability injure human health, animal or plant life, or as may unreasonable interfere with the public welfare, visibility or the reasonable use of property. E. 

### "Asbestos" includes chrysolite, crocidolite, amosite, anthophylite, tremolite, and actinolite. F. 

### "Board" means the New Mexico environmental improvement board or its successor agency or authority. 6. 

### "Carbon dioxide" means the chemical compound containing one atom of carbon and two atoms of oxygen. H. "Carbon monoxide" means the chemical compound containing one atom of carbon and one atom of oxygen. I. "Department" means the New Mexico environment department or its successor agency or authority, as represented by the department secretary or his or her designee. J. "Federal act" means the Federal Clean Air Act, as amended, 42 U.S.C. sections 7401 et seq. K. "Flue" means, any duct for air, gases, or the like, such as a stack or chimney. 

### L. "Fugitive dust" or "fugitive particulate matter" means particulate emissions which escape to the atmosphere due to leakage; materials handling, transfer or storage; travel over unpaved roads or parking areas; or other industrial activities, and which are not ducted through exhaust systems. 

### M. "Greenhouse gas" means any of the following: carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons or sulfur hexafluoride. N. "Heavy metal" means any metal having an atomic number greater than 21. 0. "Hydrofluorocarbons" means gaseous chemical compounds containing only hydrogen, carbon, and fluorine atoms. P. "Hydrogen sulfide" means the chemical compound containing two atoms of hydrogen and one atom of sulfur. 

## Q. "Kraft pulp" means the fibrous cellulose material produced in a krafi mill. 

### R. "Lead" means elemental lead; alloys in which one of the elements is lead; or compounds containing lead, which are measured as elemental lead. S. 

### "Methane" means the chemical compound containing one atom of carbon and four atoms of hydrogen. T. "mgIm3" means milligrams per cubic meter. 

### IJ. "Nitrogen dioxide" means the chemical compound containing one atom of nitrogen and two
atoms of oxygen, for the purposes of ambient determinations. The term "nitrogen dioxide," for the purposes of stack emissions monitoring, shall include nitrogen dioxide (the chemical compound containing one atom of nitrogen and

two atoms of oxygen), nitric oxide (the chemical compound containing one atom of nitrogen and one atom of oxygen), and other oxides of nitrogen which may test as nitrogen dioxide. V. "Nitrous oxide" means the chemical compound containing two atoms of nitrogen and one atom of oxygen. W. 

### "Non-methane hydrocarbons" means any combination of hydrocarbons (chemical compounds consisting of hydrogen and carbon) excluding only the molecule methane. X. 

### "Ozone" means the chemical compound having the molecular composition of three oxygen

atoms. 

### Y. "Particulate matter" means any airborne, finely divided solid or liquid material with an aerodynamic diameter smaller than 100 micrometers.

20.2.2 NMAC

## NMAC TMNSMITAL FORM

1.24.1 0 NMAC [Sequence # 

### 1

1. Issuing Agency

--- -- 2. Agency Code (DFA) -- 

# I Environmental Improvement Board 

# 1 667 

# 1 3. Agency Address --



### P.O.Box 26110 1190 St. Francis Drive, Santa Fe, New Mexico 87502

4. Contact Person 

# 1

Name Gail Cooke 

# I Phone # 

# 1 (505) 476-4319 

# 1 FAX 

# 1 (505) 476-4375

E-mail Gail.cooke@state.nm.us

5. Type of Rule Action

New Amendment Renumber 

# 0 Repeal 

# n Emergency 

# /I 

# 1 6. ~obi number of pages: 

# I 91

# /
7. Hearing date: 

# / 7/7/09 

# ] 

# 1 8. Effective date: 

# 1

--

9. NMAC Number
Title 

## 1 Chapter 

### / part 20 12 

# / 74 

# I

10. NMAC Name

-- 

## / Chapter 

## 1 ~art

nmental Protection 

# / Air Quality 

# / Permits 

### - Prevention of Significant Deterioration 

## I (Statewide) 

## I

13 Most recent filing date (if applicableZ_

17 I 77 I ~nnc I 11. Amendment Description Amended Sections - 3 Sections

14 Are there any materials incorporated by reference? - 12 Amendment's MMAC Citation 20.2.74 NMAC Sections 7, 502, and

Reference 1 Internet site 

### I

No 

### x Yes Please list attachmen& and Internet site(..) if - appliable 2

15 If materials are attached, has copyright permission been received?

Yes Public domain 

# 0

16 Legal citation(s) that allows the LFsuingAgencyto regulate and the IssuingAuChoriLyto promulgate regulations on this subjsprovide all that apply). 

# 1 74-1-8 NMSA 1978; Chapter 74, Article 2 NMSA 1978 

# 1

17 Signature &Title of Issuing Authority (Delegated authority mustbeon fie) 

# I

Name: Gregory Green Check if delegated authority 

# 0

Title: Chair 

# I

Date Signed

### This is an amendment to 20.2.74 NMAC, Sections 7, 502, and 503 effective 813 1/09.

20.2.74.7 DEFINITIONS: Terms used but not defined in this part shall have the meaning given them by 20.2.2 NMAC (Definitions) (formerly AQCR 100). As used in this part the following definitions shall apply. A. "Act" means the Federal Clean Air Act, as amended, 42 U. S. C. Sections 7401 et seq. 

### B. "Actual emissions" means the actual rate of emissions of a regulated new source review pollutant from an emissions unit, as determined in accordance with Paragraphs (2) through (4) of this subsection. (1) This definition shall not apply for calculating whether a significant emissions increase has occurred, or for establishing a PAL under 20.2.74.320 NMAC. Instead, Subsections G 

### and AQ of this section shall apply for those purposes. (2) In general, actual emissions as of a particular date shall equal the average rate, in tons per year, at which the unit actually emitted the pollutant during a consecutive 24-month period which precedes the particular date and which is representative of normal source operation. The department shall allow the use of a different time period upon a determination that it is more representative of normal source operation. Actual emissions shall be calculated using the unit's actual operating hours, production rates, and types of materials processed, stored, or combusted during the selected time period. (3) The department may presume that source-specific allowable emissions for the unit are equivalent

to the actual emissions of the unit. (4) For any emissions unit that has not begun normal operations on the particular date, actual emissions shall equal the potential to emit of the unit on that date. C. 

### "Administrator" means the administrator of the U.S. environmental protection agency (EPA) or

an authorized representative. D. "Adverse impact on visibility" means visibility impairment which interferes with the management, protection, preservation, or enjoyment of the visitor's visual experience of the class 

### I federal area. This determination must be made on a case-by-case basis taking into account the geographic extent, intensity, duration, frequency, and time of the visibility impairments and how these factors correlate with the following: 1) times of visitor use of the class 

### I federal area; and 2) the frequency and timing of natural conditions that reduce visibility. This term does not include effects on integral vistas as defined in 40 CFR 51.301 Definitions. 

### E. "Allowable emissions" means the emissions rate of a stationary source calculated using the maximum rated capacity of the source (unless the source is subject to federally enforceable limits which rest~ict he operating rate, or hours of operation, or both) and the most stringent of the following: (1) the applicable standards as set forth in 40 CFR Parts 60 and 

### 61; (2) 

### the applicable state implementation plan emissions limitation, including those with a future compliance date; or (3) the emissions rate specified as a federally enforceable permit condition, including those with a future compliance date. F. "Attainment area" means, for any air pollutant, an area which is shown by monitored data or which is calculated by air quality modeling not to exceed any national ambient air quality standard for such pollutant, and is so designated under Section 107 (d) (1) (D) or 

### (E) of the act. 6. 

### "Baseline actual emissions" means the rate of emissions, in tons per year, of a regulated new

source review pollutant, as determined in accordance with the following. (1) For any existing electric utility steam generating unit, baseline actual emissions means the
average rate, in tons per year, at which the unit actually emitted the pollutant during any consecutive 24-month period selected by the owner or operator within the 5-year period immediately preceding when the owner or operator begins actual construction of the prqject. The department shall allow the use of a different time period upon a determination that it is more representative of normal source operation. (a) The average rate shall include fugitive emissions to the extent quantifiable, and emissions associated with startups, shutdowns, and malfunctions. (b) The average rate shall be adjusted downward to exclude any non-compliant emissions that occurred while the source was operating above an emission limitation that was legally enforceable during the consecutive 24-month period. (c) For a regulated new source review pollutant, when a project involves multiple emissions units, only one consecutive 24-month period must be used to determine the baseline actual emissions for the emissions units being changed. A different consecutive 24-month period can be used For each regulated new source review pollutant.

20.2.74 NMAC

### 20.2.74 NMAC 2 (d) The average rate shall not be based on any consecutive 24-month period for which there is inadequate information for determining annual emissions, in tons per year, and for adjusting this amount if required by Subparagraph (b) of this paragraph. (2) For an existing emissions unit (other than an electric utility steam generating unit), baseline actual emissions means the average rate, in tons per year, at which the emissions unit actually emitted the pollutant during any consecutive 24-month period selected by the owner or operator within the 10-year period immediately preceding either the date the owner or operator begins actual construction of the project, or the date a complete permit application is received by the department for a permit required either under this part or under a plan approved by the administrator, whichever is earlier, except that the 10-yea r period shall not include any period earlier than November 15, 1990. (a) The average rate shall include fugitive emissions to the extent quantifiable, and emissions associated with startups, shutdowns, and malfunctions. (b) The average rate shall be adjusted downward to exclude any non-compliant emissions that occurred while the source was operating above an emission limitation that was legally enforceable during the consecutive 24-month period. (c) The average rate shall be adjusted downward to exclude any emissions that would have exceeded an emission limitation with which the major stationary source must currently comply, had such major stationary source been required to comply with such limitations during the consecutive 24-month period. However, if an emission limitation is part of a maximum achievable control technology standard that the administrator proposed or promulgated under 40 CFR Part 63, the baseline actual emissions need only be adjusted if the state has taken credit for such emissions reductions in an attainment demonstration or maintenance plan consistent with the requirements of 40 CFR 51.165(a)(3)(ii)(G). (d) For a regulated new source review pollutant, when a project involves multiple emissions units, only one consecutive 24-month period must be used to determine the baseline actual emissions for the emissions units being changed. A different consecutive 24-month period can be used for each regulated new source review pollutant. (e) The average rate shall not be based on any consecutive 24-month period for which there is inadequate information for determining annual emissions, in tons per year, and for adjusting this amount if required by Subparagraphs (b) and (c) of this paragraph. (3) For a new emissions unit, the baseline actual emissions for purposes of determining the emissions increase that will result from the initial construction and operation of such unit shall equal zero; and thereafter, for all other purposes, shall equal the unit's potential to emit. (4) For a PAL for a stationary source, the baseline actual emissions shall be calculated for existing electric utility steam generating units in accordance with the procedures contained in Paragraph (1) of this subsection, for other existing emissions units in accordance with the procedures contained in Paragraph (2) of this subsection, and for a new emissions unit in accordance with the procedures contained inParagraph (3) of this subsection. H. "Baseline area" means all lands designated as attainment or unclassifiable in which the major source or major modification would construct or would have an air quality impact equal to or greater than one microgram per cubic meter (annual average) of the pollutant for which the minor source baseline date is established. The major source or major modification establishes the minor source baseline date (see the definition "minor source baseline date" in this part). Lands are designated as attainment or unclassifiable under Section 107(d)(1)(D) or (E) of the act within each federal air quality control region in the state of New Mexico. Any baseline area established originally for TSP (total suspended particulates) incrementsshall remain in effect and shall apply for purposes of determining the amount of available PM-10 increments. A TSP baseline area shall not remain in effect if the department rescinds the corresponding minor source baseline date (see "minor source baseline date" in this part). I. "Baseline concentration" means that ambient concentration level that exists in the baseline area at the time of the applicable minor source baseline date. (1) A baseline concentration is determined for each pollutant for which a minor source baseline date is established and shall include: (a) the actual emissions, as defined in this s ection, representative of so urces in existence on the applicable minor source baseline date, except as provided in Paragraph (2) of this subsection; (b) the allowable emissions of major stationary sources that commenced construction before the major source baseline date, but were not in operation by the applicable minor source baseline date. (2) The following will not be included in the baseline concentration and will affect the applicable maximum allowable increase(s):

### 20.2.74 NMAC 3 (a) actual emissions, as defined in this section, from any major stationary source on which construction commenced after the major source baseline date; and (b) actual emissions increases and decreases, as defined in Subsection B of this section, at any stationary source occurring after the minor source baseline date. J. "Begin actual construction" means, in general, initiation of physical onsite construction activities on an emissions unit which are of a permanent nature. Such activities include, but are not limited to, installation of building supports and foundations, laying underground pipework and construction of permanent storage structures. With respect to a change in method of operations, this term refers to those on-site activities other than preparatory activities which mark the initiation of the change. K. "Best Available Control Technology (BACT)" means an emissions limitation (including a visible emission standard) based on the maximum degree of reduction for each regulated pollutant which would be emitted from any proposed major stationary source or major modification, which the secretary determines is achievable on a case-by-case basis. This determination w ill take into account energy, environmental, and economic impacts and other costs. The determination must be achievable for such source or modification through application of production processes or available methods, systems, and techniques, including fuel cleaning, clean fuels, or treatment or innovative fuel combustion techniques for control of such pollutants. In no event shall application of best available control technology result in emissions of any pollutant which would exceed the emissions allowed by any applicable standard under 40 CFR Parts 60 and 61. If the secretary determines that technological or economic limitations on the application of measurement methodology to a particular emissions unit would make the imposition of an emissions standard infeasible, a design, equipment, work practice, operational standard, or combination thereof, may be prescribed instead to satisfythe requirement for the application of best available control technology. Such standard shall, to the degree possible, set forth the emissions reduction achievable by implementation of such design, equipment, work practice, or operation, and shall provide for compliance by means which achieve equivalent results. L. "Building, structure, facility, or installation" means all of the pollutant emitting activities which belong to the same industrial grouping, are located on one or more contiguous or adjacent properties, and are under the control of the same person (or persons under common control). Pollutant-emitting activities shall be considered as part of the same industrial grouping if they belong to the same "major group" (i.e., which have the same first two digit code) as described in the standard industrial classification (SIC) manual, 1972, as amended by the 1977 supplement (U. S. government printing office stock numbers 4101-0066 and 003-005-00176-0, respectively) or any superseding SIC manual. M. "Class I federal area" means any federal land that is classified or reclassified as "class I" as described in 20.2.74.108 NMAC. N. "Commence" means, as applied to construction of a major stationary source or major modification, that the owner or operator has all necessary preconstruction approvals or permits and has: (1) Begun, or caused to begin, a continuous program of actual on-site construction of the source, to be completed within a reasonable time; or (2) Entered into binding agreements or contractual obligations, which cannot be cancelled or modified without substantial loss to the owner or operator, to undertake and complete, within a reasonable time, a program of actual construction. O. "Construction" means any physical change or change in the method of operation (including fabrication, erection, installation, demolition, or modification of an emissions unit) that would result in a change in emissions. P. "Continuous emissions monitoring system (CEMS)" means all of the equipment that may be required to meet the data acquisition and availability requirements of this section, to sample, condition (if applicable), analyze, and provide a recordof emissions on a continuous basis. Q. "Continuous emissions rate monitoring system (CERMS)" means the total equipment required for the determination and recording of the pollutant ma ss emissions rate (in terms of mass per unit of time). R. "Continuous parameter monitoring system (CPMS)" means all of the equipment necessary to meet the data acquisition and availability requirements of this section, to monitor process and control device operational parameters (for example, control device secondary voltages and electric currents) and other information (for example, gas flow rate, O2 or CO2 concentrations), and to record average operational parameter value(s) on a continuous basis. S. "Department" means the New Mexico environment department. T. "Electric utility steam generating unit" means any steam electric generating unit that is constructed for the purpose of supplying more than one-third of its potential electric output capacity and more than

### 20.2.74 NMAC 4 25 megawatts electrical output to any utility power distribution system for sale. Any steam supplied to a steam distribution system for the purpose of providing steam toa steam-electric generator th at would produce electrical energy for sale is also considered in determining the electrical energy output capacity of the affected facility. U. "Emissions unit" means any part of a stationary source that emits or would have the potential to emit any regulated new source review pollutant and includes an electric utility steam generating unit as defined in this section. For purposes of this section, there are two types of emissions units as described in the following. (1) A new emissions unit is any emissions unit that is (or will be) newly constructed and that has existed for less than 2 years from the date such emissions unit first operated. (2) An existing emissions unit is any emissions unit that does not meet the requirements in Paragraph (1) of this subsection. A replacement unit, as defined in this section, is an existing unit. V. "Federal land manager" means, with respect to any lands in the United States, a federal level cabinet secretary of a federal level department (e.g. interior dept.) with authority over such lands. W. "Federally enforceable" means all limitations and conditions which are enforceable by the administrator, including: (1) those requirements developed pursuant to 40 CFR Parts 60 and 61; (2) requirements within any applicable state implementation plan; (3) any permit requirements established pursuant to 40 CFR 52.21; or (4) under regulations approved pursuant to 40 CFR Part 51, Subpart I including 40 CFR 51.165 and 40 CFR 51.166. X. "Fugitive emissions" means those emissions which could not reasonably pass through a stack, chimney, vent, or other functionally equivalent opening. Y. "High terrain" means any area having an elevation ninehundred (900) feet or more above the base of a source's stack. Z. "Indian governing body" means the governing body of any tribe, band, or group of Indians subject to the jurisdiction of the United States and recognized by the United States as possessing power of selfgovernment. AA. "Innovative Co ntrol Technology" means any system of air pollution control that has not been adequately demonstrated in practice. But such system would have a substantial likelihood of achieving greater continuous emissions reduction than any control system in current practice or achieving at least comparable reductions at lower cost in terms of energy, economics, or non-air quality environmental impacts. AB. "Low terrain" means any area other than high terrain. AC. "Lowest achievable emission rate" means, for any source, the morestringent rate of emissions based on the following: (1) the most stringent emissions limitation which is contained in the implementation plan of any state for such class or category of stationary source, unless the owner or operator of the proposed stationary source demonstrates that such limitations are not achievable; or (2) the most stringent emissions limitation which is achieved in practice by such class or category of stationary source; this limitation, when applied to a modification, means the lowest achievable emissions rate for the new or modified emissions units within the stationary source. In no event shall the application of this term permit a proposed new or modified stationary source to emit any pollutant in excess of the amount allowable under an applicable new source standard of performance. AD. "Major modification" means any physical change in or ch ange in the method of operation of a major stationary source that would result in: a significant emissions increase (as defined in of this section) of a regulated new source review pollutant (as defined in this section); and a significant net emissions increase of that pollutant from the major stationary source. Any significant emissions increase (as defined in this section) from any emissions units or net emissions increase (as defined in this section) at a major stationarysource that is significant for volatile organic compounds or nitrogen oxidesshall be considered significant for ozone. (1) A physical change or change in the method of operation shall not include: (a) routine maintenance, repair, and replacement; (b) use of an alternative fuel or raw materialby reason of an order under Section 2 (a) and (b) of the Energy Supply and Environmental Coordination Act of 1974 (or any superseding legislation) or by reason of a natural gas curtailment plan pursuant to the Federal Power Act; (c) use of an alternative fuel by reason of an order or rule under Section 125 of the act; (d) use of an alternative fuel at a steam generating unit to the extent that the fuel is generated from municipal solid waste; (e) use of an alternative fuel or raw material by a stationary source which:

### 20.2.74 NMAC 5 (i) the source was capable of accommodating before January 6, 1975, unless such change would be prohibited under any federally enforceable permit condition which was established after January 6, 1975 pursuant to 40 CFR 52.21 or under regulations approved pursuant to 40 CFR 51.165 or 40 CFR 51.166; or (ii) the source is approved to use under any permit issued under 40 CFR 52.21 or under regulations approved pursuant to 40 CFR 51.166; (f) an increase in the hours of operation or in the production rate, unless such change would be prohibited under any federally enforceable permit which was established after January 6, 1975, pursuant to 40 CFR 52.21 or under regulations approved pursuant to 40 CFR 51.165 or 40 CFR 51.166; (g) any change in ownership at a stationary source; (h) the installation, operation, cessation, or removal of a temporary clean coal technology demonstration project, provided that the project complies with: (i) the state implementation plan for the state in which the project is located; and (ii) other requirements necessary to attain and maintain the national ambient air quality standards during the project and after it is terminated. (i) the installation or operation of a permanent clean coal technology demonstration project that constitutes repowering, provided that the project does not result in an increase in the potential to emit of any regulated pollutant emitted by the unit; this exemption shall apply on a pollutant-by-pollutant basis; (j) the reactivation of a very clean co al-fired electric utility steam generating unit. (2) This definition shall not apply with respect to a particular regulated new source review pollutant when the major stationary source is complying with the requirements under 20.2.74.320 NMAC for a PAL for that pollutant. Instead, the definition at Paragraph (8) of Subsection B of 20.2.74.320 NMAC shall apply. AE. "Major source baseline date" means: (1) in the case of particulate matter and sulfur dioxide, January 6, 1975; and (2) in the case of nitrogen dioxide, February 8, 1988. AF. "Major stationary source" means the following. (1) Any stationary source listed in table 1 (20.2.74.501 NMAC) which emits, or has the potential to emit, emissions equal to or greater than one hundred (100) tons per year of any regulated new source review pollutant. (2) Any stationary source not listed in table 1 (20.2.74.501 NMAC) and which emits or has the potential to emit two hundred fifty (250) tons per year or more of any regulated new source review pollutant. (3) Any physical change that would occur at a stationary source not otherwise qualifying under Paragraphs (1) or (2) of this subsection if the change would constitute a major stationary source by itself. (4) A major source that is major for volatile organic compounds or nitrogen oxidesshall be considered major for ozone. (5) The fugitive emissions of a stationary source shall not be included in determining for any of the purposes of this section whether it is a major stationary source, unless the source belongs to one of the stationary source categories found in Table 1 (20.2.74.501 NMAC) or any other stationary source category which, as of August 7, 1980, is being regulated under Section 111 or 112 of the act. AG. "Mandatory class I federal area" means any area identified in the Code of Federal Regulations (CFR), 40 CFR Part 81, Subpart D. See 20.2.74.108 NMAC for a list of these areas in New Mexico. AH. "Minor source baseline date" means the earliest date after the trigger date on which the owner or operator of a major stationary source or major modification subject to 40 CFR 52.21 or to this part submits a complete application under the relevant regulations. (1) The trigger date is: (a) in the case of particulate matter and sulfur dioxide, August 7, 1977; and (b) in the case of nitrogen dioxide, February 8, 1988. (2) Any minor source baseline date established originally for the TSP (total suspended particulates) increments shall remain in effect and shall apply for purposes of determining the amount of available PM-10 increments. The department may rescind any TSP minor source baseline date where it can be shown, to the department 's satisfaction, that the emissions increase from the major stationary source, or the net emissions increase from the major modification, responsible for triggering that date, did not result in a significant amount of PM-10 emissions. AI. "Natural conditions" includes naturally occurring phenomena that reduce visibility as measured in terms of visual range, contrast or coloration.

### 20.2.74 NMAC 6 AJ. "Necessary preconstruction approvals or permits" means those permits or approvals required under federal air quality control laws and regulations and those air quality control laws and regulations which are part of the New Mexico state implementation plan. AK. "Net emissions increase" means, with respect to any regulated new source review pollutant emitted by a major stationary source, the following. (1) The amount by which the sum of the following exceeds zero. (a) The increase in emissions from a particular physical change or ch ange in the method of operation at a stationary source as calculated pursuant to Subsection D of 20.2.74.200 NMAC. (b) Any other increases and decreases in actual emissions at the major stationary source that are contemporaneous with the particular change and are otherwise creditable. Baseline actual emissions for calculating increases and decreases under this paragraph shall be determined as provided in Subsection G, except that Subparagraph (c) of Paragraph (1) and Subparagraph (d) of Paragraph (2) of Subsection G of this section shall not apply. (2) An increase or decrease in actual emissionsis contemporaneous with the increase from the particular change only if it occurs within the time period five years prior to the commencement of construction on the particular change and the date that the increase from the particular change occurs. (3) An increase or decrease in actual emissions is creditable only if: (a) it occurs within the time period five years prior to the commencement of construction on the particular change and the date that the increase from the particular change occurs; and (b) the department has not relied on it in issuing a permit for the source under regulations approved pursuant to this section, which permit is in effect when the increase in actual emissions from the particular change occurs. (4) An increase or decrease in actual emissions of sulfur dioxide, particulate matter, or nitrogen oxides that occurs before the applicable minor source baseline date is creditable only if it is required to be considered in calculating the amount of maximum allowable increases remaining available. (5) An increase in actual emissions is creditable only to the extent that the new level of actual emissions exceeds the old level. (6) A decrease in actual emissions is creditable only to the extent that: (a) the old level of actual emissions or the old level of allowable emissions, whichever is lower, exceeds the new level of actual emissions; (b) it is enforceable as a practical matter at and after the time that actual construction on the particular change begins; and (c) it has approximately the same qualitative significance for public health and welfare as that attributed to the increase from the particular change. (7) An increase that results from a physical ch ange at a source occurs wh en the emissions unit on which construction occurred becomes operational and beginsto emit a particular po llutant. Any replacement unit that requires shakedown becomes operational only after a reasonable shakedown period, not to exceed 180 days. (8) Paragraph (2) of Subsection B of this section shall not apply for determining creditable increases and decreases. AL. "Nonattainment area" means an area which has been designated under Section 107 of the Federal Clean Air Act as nonattainment for one or more of the national ambient air quality standards by EPA. AM. "Portable stationary source" means a source which can be relocated to another operating site with limited dismantling and reassembly. AN. "Potential to emit" means the maximum capacity of a stationary source to emit a pollutant under its physical and operational design. Any physical or operational limitation on the capacity of the source to emit a pollutant, including air pollutant control equipment and restrictions on hours of operation or on the type or amount of

material combusted, stored, or processed, shall be treate d as part of its design if the limitations or the effect it would have on emissions is federally enforceable. Secondary emissions do not count in determining the potential to emit of a stationary source. AO. "Predictive emissions monitoring system (PEMS)" means all of the equipment necessary to monitor process and control device operational parameters (for example, control device secondary voltages and electric currents) and other information (for example, gas flow rate, O2 or CO2 concentrations), and calculate and record the mass emissions rate (for ex ample, lb/hr) on a continuous basis. AP. "Project" means a physical change in, or change inmethod of operation of, an existing major stationary source.

### 20.2.74 NMAC 7 AQ. "Projected actual emissions" means the maximum annual rate, in tons per year, at which an existing emissions unit is projected to emit a regulated new source review pollutant in any one of the 5 years (12- month period) following the date the unit resumes regular operation after the project, or in any one of the 10 years following that date, if the project involves increasing the emissions unit's design capacity or its potential to emit that regulated new source review pollutant, and full utilization of the unit would result in a significant emissions increase, or a significant net emissions increase at the major stationary source. In determining the projected actual emissions (before beginning actual construction), the owner or operator of the major stationary source: (1) shall consider all relevant information, including but not limited to, historical operational data, the company's own representations, the company's expected bus iness activity and the company's highest projections of business activity, the company's filings with the state or federal regulatory authorities, and compliance plans under the approved plan; and (2) shall include fugitive emissions to the extent quantifiable and emissions associated with startups, shutdowns, and malfunctions; and (3) shall exclude, in calculating any increase in emissions that results from the particular project, that portion of the unit's emissions following the project that an existing unit could have accommodated during the consecutive 24-month period used to establish the baseline actual emissions under Subsection G of this section and that are also unrelated to the particular project, including any increased utilization due to product demand growth;

or, (4) in lieu of using the method set out in Paragraphs (1) through (3) of this subsection, may elect to use the emissions unit's potential to emit, in tons per year, as defined in Subsection AQ of this section. AR. "Regulated new so urce review pollutant" , for purposes of this part, means the following: (1) any pollutant for which a national ambient air quality standard has been promulgated and any constituents or precursors for such pollutants identified bythe administrator (e.g., volatile organic compounds and nitrogen oxidesare precursors for ozone); (2) any pollutant that is subject to any standard promulgated under Section 111 of the act; (3) any class I or II substance subject to a standard promulgated under or established by title VI of the act; or (4) any pollutant that otherwis e is subject to regulation under the act; except that any or all hazardous air pollutants either listed in Section 112 of the act or added to the list pursuant to Section 112(b)(2) of the act, which have not been delisted pursuant to Section 112(b)(3) of the act, are not regulated new source review pollutants unless the listed hazardous air pollutant is also regulated as a constituent or precursor of a general pollutant listed under Section 108 of the act. AS. "Replacement unit" means an emission unit for which all of the following criteria are met. No creditable emission reductions shall begenerated from shutting down the existing emissions unit that is replaced. (1) The emissions unit is a reconstructed unit within the meaning of 40 CFR 60.15(b)(1), or the emissions unit completely takes the place of an existing emissions unit. (2) The emissions unit is identical to or functionally equivalent to the replaced emissions unit. (3) The replacement unit does not change the basic design parameter(s) of the process unit. (4) The replaced emissions unit is permanently removed from the major stationary source, otherwise permanently disabled, or permanently barred from operation bya permit that is enforceable as a practical matter. If the replaced emissions unit is brought back into operation, it shall constitute a new emissions unit. AT. "Secondary emissions" means emissions which occur as a result of the construction or operation of a major stationary source or major modification, but do not come from the major stationary source or major modification itself. For the purpose of this section, secondary emissions must be specific, well defined, quantifiable, and impact the same general areas as the stationary source or modification which causes the secondary emissions. Secondary emissions include emissions from any offsite supp ort facility which would not be constructed or increase its emissions except as a result of the construction or operation of the major stationary source or major modification. Secondary emissions do not include any emissions which come directly from a mobile source, such as emissions from the tailpipe of a motor vehicle, from a train, or from a vessel. AU. "Secretary" means the cabinet level secretary of the New Mexico environment department or his or her successor. AV. "Significant" means in reference to a net emissions increase or the potential of a source to emit air pollutants, a rate of emission that would equal or ex ceed any of the rates listed in table 2 (20.2.74.502 NMAC). AW. "Significant emissions increase" means, for a regulated new source review pollutant, an increase in emissions that is significant (as defined in Subsection AV of this section) for that pollutant.

### 20.2.74 NMAC 8 AX. "Stationary source" means any building, structure, facility, or installation which emits, or may emit, any regulated new source review pollutant. AY. "Temporary source" means a stationary source which changes its location or ceases to exist within two years from the date of initial start of operations. AZ. "Visibility impairment" means any humanly perceptible change in visibility (visual range, contrast, coloration) from that which would have existed under natural conditions. BA. "Volatile organic compound (VOC)" means any organic compound which participates in atmospheric photochemical reactions; that is, any organic compound other than those which the administrator designates as having negligible photochemical reactivity. [07/20/95; 01/01/00; 20.2.74.7 NMAC - Rn, 20 NMAC 2.74.107, 10/31/02; A, 1/22/06; A, 8/31/09]

20.2.74.502 TABLE 2 - SIGNIFICANT EMISSION RATES:

POLLUTANT EMISSION RATE (TONS/YR) Carbon monoxide 100 Fluorides 3 Lead 0.6 Municipal waste combustor Acid gases (measured as sulfur dioxide and hydrogen chloride) 40 (36 megagrams/year) Metals (measured as particulate matter 15 (14 megagrams/year) Organics (measured as total tetra- through octa-chlorinated dibenzo-p-dioxins and dibenzofurans) 0.0000035 (0.0000032 megagrams/yr)

Nitrogen oxides 40 Ozone ([as VOC, ] Volatile Organic Compounds or nitrogen oxides ) 40 [(VOC) ] Particulate Matter Particulate matter emissions 25 PM-10 emissions 15 Sulfur compounds Hydrogen sulfide (H2S) 10 Reduced sulfur compounds (incl. H2S) 10 Sulfur dioxide 40 Sulfuric acid mist 7 Total reduced sulfur (incl. H2S) 10 Any other pollutant regulated under the act that is not listed in this table Any emission rate

Each regulated pollutant Emission rate or net emissions increase associated with a major stationary source or major modification that causes an air

quality impact of one microgram per cubic meter or greater (24-hr average) in any class I federal area located within 10 km of the source.

[07/20/95; 20.2.74.502 NMAC - Rn, 20 NMAC 2.74 Table 2, 10/31/02; A, 1/22/06; A, 8/31/09]

20.2.74.503 TABLE 3 - SIGNIFICANTMONITORING CONCENTRATIONS.

POLLUTANT AIR QUALITY CONCENTRATION micrograms per cubic meter AVERAGING TIME

Carbon monoxide 575 8 hours Fluorides 0.25 24 hours Lead 0.1 3 months Nitrogen dioxide 14 Annual Ozone b

### 20.2.74 NMAC 9 Particulate matter (PM-10) 10 24 hours Sulfur compounds Hydrogen sulfide (H2S) 0.20 1 hour Reduced sulfur compounds (incl. H2S) 10 1 hour Sulfur dioxide 13 24 hours Sulfuric acid mist a Total reduced sulfur (incl. H2S) 10 1 hour a - No acceptable monitoring techniques available at thistime. Therefore, monitoring is not required until acceptable techniques are available. b –No de minimis air quality level is provided for ozone. However, any net increase of 100 tons per year or more of volatile organic compounds or nitrogen oxides subject to PSD would be required to perform an ambient impact analysis, including the gathering of ambient air quality data.

[07/20/95; 20.2.74.503 NMAC - Rn, 20 NMAC 2.74 Table 3, 10/31/02; A, 1/22/06; A, 8/31/09]f .24.10 NMAC i # !



### . , I 

# :

tl 

## NMAC 

# TMNSMFCmAL FORM

[Sequence # 

### 1



# I Environmental Improvement Board 

# 1 667 

# 1

1. Issuing Agency

-- - - - -


## [ 3. Aqency Address
-- .- 2. Agency Code (DFA)

--

P.O. Box 26110 1190 St. Francis Drive, Santa Fe, New Mexico 87502 

# 1

( 4. Contact Person

.-------

Name Gail Cooke 

# / Phone # 

# 1 (505) 476-4319 

# / FAX 

# I (505) 476-4375

E-mail Gail.cooke@state.nm.~~s

5. Type of Rule Action

New Amendment Renumber 

# 0 Repeal 

# [3 Emergency 

# /I

-- 

# I 6. Total number of pages:I

.- 

# 14 / 7. Hearing date: 

# 1 7/7/09 

# 1 / 8. Effective date: 

# 1 8/31/09 

# -1

-- -- --

11. Amendment Description 

# 1 12 Amendment's NHMAC Citation 10. NPlACMame Title 

# / Chapter



## 1 Amended Sections .- 3 Sections 120.2.79 NMAC Sections 7, 109, and 

## I

Environmental Protection



# 1 I3 Most recent filing date (if applicable) 

# 2 Air Quality Permits- Nonattainment Areas (Statewide)

14 Are there any materials incorporated by reference? 

# I--

No x Yes Reference 

### / Internet site 

### ---- 

### "-

-" Please li. attachments and Internet site(s) if appliwble 2

15 If materials are attached, has copyright permission been received? 

# 1

Yes Public domain 

# 0

17 Signature &Title of Issuing Authority (Delegated authofity must be on 

### me)



### -

Name: Gregory Green Check if delegated authority
Title: Chair 

# 0



# 422-4 0s

Date Signed

### This is an amendment to 20.2.79 NMAC, section& I 

### 09, and 1 15 effective 0813 1109.

20.2.79.7 DEFINITIONS. 

### In addition to the terms defined in 20.2.2 NMAC (Definitions), as used in this part, the following terms apply. A. "Actual emissions" 

### means the actual rate of emissions of a regulated new source review pollutant from an emissions unit, as determined in accordance with the following, except that this definition shall not apply for calculating whether a significant emissions increase has occurred, or for establishing a plantwide applicability limit under 20.2.79.120 NMAC. Instead, Subsections E 

### and A1 of this section shall apply for those purposes. (1) In general, actual emissions as of a particular date shall equal the average rate, in tons per year, at which the unit actually emitted the pollutant during a consecutive 24-month period which precedes the particular date and which is representative of normal source operation. The department shall allow the use of a different time period upon a determination that it is more representative of normal source operation. Actual emissions shall be calculated using the unit's actual operating hours, production rates, and types of materials processed, stored, or combusted during the selected time period. (2) 

### The department may presume that source-specific allowable emissions for the unit are equivalent

to the actual emissions of the unit. (3) 

### For any emissions unit that has not begun normal operations on the particular date, actual emissions shall equal the potential to emit of the unit on that date. 

### B. "Administrator" 

### means the administrator of the U.S. environmental protection agency (EPA) or

an authorized representative. C. "Adverse impact on visibility" 

### means visibility impairment which interferes with the management, protection, preservation, or enjoyment of the visitor's visual experience of the mandatory federal class I area. This determination must be made on a case-by-case basis taking into account the geographic extent, intensity, duration, frequency, and time of the visibility impairments and how these factors correlate with: 1) times of visitor use of the mandatory federal class I area, and 2) the frequency and timing of natural conditions that reduce visibility. This term does not include effects on integral vistas as defined in 40 CFR 

### 5 1.301 Definitions. 

### D. "Allowable emissions" 

### means the emissions rate of a stationary source calculated using the maximum rated capacity of the source (unless the source is subject to federally enforceable limits which restrict the operating rate, or hours of operation, or both) and the most stringent of the following: (1) 

### the applicable standard set forth in 40 CFR Part 60 or 61; (2) 

### any applicable state implementation plan emissions limitation including those with a hture compliance date; or (3) 

### the emissions rate specified as a federally enforceable permit condition, including those with a future compliance date. 

### E. "Baseline actual emissions" 

### means the rate of emissions, in tons per year, of a regulated new

source review pollutant, as determined in accordance with the following. (1) For any existing electric utility steam generating unit, baseline actual emissions means the
average rate, in tons per year, at which the unit actually emitted the pollutant during any consecutive 24-month period selected by the owner or operator within the 5-year period immediately preceding when the owner or operator begins actual construction of the project. The department shall allow the use of a different time period upon a determination that it is more representative of normal source operation. (a) 

### The average rate shall include fugitive emissions to the extent quantifiable, and emissions associated with startups, shutdowns, and malfunctions. (b) 

### The average rate shall be adjusted downward to exclude any noncompliant emissions that occurred while the source was operating above any emission limitation that was legally enforceable during the consecutive 24-month period. (c) 

### For a regulated new source review pollutant, when a project involves multiple emissions units, only one consecutive 24-month period must be used to determine the baseline actual emissions for the emissions units being changed. A different consecutive 24-month period can be used for each regulated new source review pollutant. (d) 

### The average rate shall not be based on any consecutive 24-month period for which there is inadequate information for determining annual emissions, in tons per year, and for adjusting this amount if required by Subparagraph (b) of Paragraph (I) of this subsection. (2) 

### For an existing emissions unit (other than an electric utility steam generating unit), baseline actual emissions means the average rate, in tons per year, at which the emissions unit actually emitted the pollutant during
any consecutive 24-month period selected by the owner or operator within the 10-year period immediately preceding

20.2.79 NMAC 1

### 20.2.79 NMAC 2 either the date the owner or operator begins actual construction of the project, or the date a complete permit application is received by the department for a permit required either under this section or under a plan approved by the administrator, whichever is earlier, except that the 10-year period shall not include any period earlier than November 15, 1990. (a) The average rate shall include fugitive emissions to the extent quantifiable, and emissions associated with startups, shutdowns, and malfunctions. (b) The average rate shall be adjusted downward to exclude any noncompliant emissions that occurred while the source was operating above an emission limitation that was legally enforceable during the consecutive 24-month period. (c) The average rate shall be adjusted downward to exclude any emissions that would have exceeded an emission limitation with which the major stationary source must currently comply, had such major stationary source been required to comply with such limitations during the consecutive 24-month period. However, if an emission limitation is part of a maximum achievable control technology standard that the administrator proposed or promulgated under 40 CFR Part 63, the baseline actual emissions need only be adjusted if the state has taken credit for such emissions reductions in an attainment demonstration or maintenance plan consistent with the requirements of Subsection D of 20.2.79.115 NMAC. (d) For a regulated new source review pollutant, when a project involves multiple emissions units, only one consecutive 24-month period must be used to determine the baseline actual emissions for the emissions units being changed. A different consecutive 24-month period can be used for each regulated new source review pollutant. (e) The average rate shall not be based on any consecutive 24-month period for which there is inadequate information for determining annual emissions, in tons per year, and for adjusting this amount if required by Subparagraphs (b) and (c) of Paragraph (2) of this subsection. (3) For a new emissions unit, the baseline actual emissions for purposes of determining the emissions increase that will result from the initial construction and operation of such unit shall equal zero; and thereafter, for all other purposes, shall equal the unit's potential to emit. (4) For a plantwide applicability limit for a ma jor stationary source, the baseline actual emissions shall be calculated for existing electric utility steam generating units in accordance with the procedures contained in Paragraph (1) of this subsection, for other existing emissions units in accordance with the procedures contained in Paragraph (2) of this subsection, and for a new emissionsunit in accordance with the procedures contained in Paragraph (3) of this subsection. F. "Begin actual construction" means in general, initiation of physical on-site construction activities on an emissions unit which are of a permanent nature. Such activities include, but are not limited to, installation of building support and foundations, laying of underground pipework, and construction of permanent storage structures. With respect to a change in method of operating this term refers to those on-site activities other than preparatory activities which mark the initiation of the change. G. "Best available control technology (BACT) means an emissions limitation (including a visible emissions standard) based on the maximum degree of reduction for each regulated new source review pollutant which would be emitted from any proposed major stationarysource or major modification which the department, on a case-by-case basis, taking into account energy, environmental, and economic impacts and other costs, determines is achievable for such source or modification through application of production processes or available methods, systems, and techniques, including fuel cleaning, clean fuels, or treatment or innovative fuel combustion techniques for control of such pollutant. In no event shall application of best available control technology result in emissions of any pollutant which would exceed the emissions allowed by any applicable standard under 40 CFR Part 60 or 61. If the department determines that technological or economic limitations on the application of measurement methodology to a particular emissions unit would make the imposition of an emissions standard infeasible, a design, equipment, work practice, operational standard, or combin ation thereof, may be prescribed instead to satisfy the requirement for the application of BACT. Such standard shall, to the degree possible, set forth the emissions reduction achievable by implementation of such design, equipment, work practice or operation, and shall provide for compliance by means which achieve equivalent results. H. "Building, structure, facility, or installation" means all of the pollutant-emitting activities which belong to the same industrial grouping, are located on one or more contiguous or adjacent properties, and are under the control of the same person (or persons under common control). Pollutant-emitting activities shall be considered as part of the same industrial grouping if they belong to the same "major group" (i.e., which have the same two-digit code) as described in the standard indust ri alclassification manual, 1972, as amended by the 1977 supplement (U.S. government printing office stock numbers 4101-0066 and 003-005-00176-0, respectively).

### 20.2.79 NMAC 3 I. "Commence" as applied to construction of a major stationary source or major modification means that the owner or operator has all necessary preconstruction approvals or permits and either has: (1) begun, or caused to begin, a continuous program of actual on-site construction of the source, to be completed within a reasonable time; or (2) entered into binding agreements or contractual obligations, which cannot be cancelled or modified without substantial loss to the owner or operator, to undertake a program of actual construction of the source to be completed within a reasonable time. J. "Construction" means any physical change or change in the method of operation (including fabrication, erection, installation, demolition, or modification of an emissions unit) which would result in a change in actual emissions. K. "Continuous emission s monitoring system" (CEMS) means all of the equipment that may be required to meet the data acquisition and availability requirements of this section, to sample, condition (if applicable), analyze, and provide a recordof emissions on a continuous basis. L. "Continuous emissions rate monitoring system" (CERMS) means the total equipment required for the determination and recording of the pollutant ma ss emissions rate (in terms of mass per unit of time). M. "Continuous parameter monitoring system" (CPMS) means all of the equipment necessary to meet the data acquisition and availability requirements of this section, to monitor process and control device operational parameters (for example, control device secondary voltages and electric currents) and other information (for example, gas flow rate, oxygen or carbon dioxide conc entrations), and to record average operational parameter value(s) on a continuous basis. N. "Electric utility steam generating unit" means any steam electric generating unit that is constructed for the purpose of supplying more than one-third of its potential electric output capacity and more than 25 megawatts electrical output to any utility power distribution system for sale. Any steam supplied to a steam distribution system for the purpose of providing steam toa steam-electric generator th at would produce electrical energy for sale is also considered in determining the electrical energy output capacity of the affected facility. O. "Emissions unit" means any part of a stationary source that emits or would have the potential to emit any regulated new source review pollutant and includes an electric steam generating unit as defined in Subsection N of this section. For purposes of this section, there are two types of emissions units. (1) A new emissions unit is any emissions unit which is (or will be) newly constructed and which has existed for less than 2 years from the date such emissions unit first operated. (2) An existing emissions unit is any emissions unit that does not meet the requirements in Paragraph (1) of this subsection. A replacement unit, as defined in this section, is an existing unit. P. "Federal class I area" means any Federal land that is cla ssified or reclassified "class I". Q. "Federal land manager" means, with respect to any lands inthe United States, the secretary of the department with authority over such lands. R. "Federally enforceable" means all limitations and conditions which are enforceable by the administrator, including those requirements developed pursuant to 40 CFR Parts 60 and 61, requirements within any applicable state implementation plan, any permit requirements established pursuant to 40 CFR 52.21 or under regulations approved pursuant to 40 CFR Part 51, Subpart I including 40 CFR 51.165 and 40 CFR 51.166. S. "Fugitive emissions" means those emissions which could not reasonably pass through a stack, chimney, vent, or other functionally equivalent opening. T. "Lowest achievable emission rate" means, for any source, the morestringent rate of emissions based on the following: (1) the most stringent emissions limitation which is contained in the implementation plan of any state for such class or category of stationary source, unless the owner or operator of the proposed stationary source demonstrates that such limitations are not achievable; or (2) the most stringent emissions limitation which is achieved in practice by such class or category of stationary source; this limitation, when applied to a modification, means the lowest achievable emissions rate for the new or modified emissions units within the stationary source ; innoevent shall the application of this term permit a proposed new or modified stationary source to emit any pollutant in excess of the amount allowable under an applicable new source standard of performance. U. "Major modification" means any physical change in or ch ange in the method of operation of a major stationary source that would result in a significant emissions increase of a regulated new source review pollutant (as defined in this section); and a significant net emissions increase of that pollutant from the major stationary source. Any significant emissions increase (as defined in this section) from any emissions units or net

### 20.2.79 NMAC 4 emissions increase (as defined in this section) at a major stationary source that is significant for volatile organic compounds or oxides of nitrogen shall be considered significant for ozone. (1) A physical change or change in the method of operation shall not include: (a) routine maintenance, repair, and replacement; (b) use of an alternative fuel or raw materialby reason of an order under Section 2 (a) and (b) of the Energy Supply and Environmental Coordination Act of 1974 (or any superseding legislation) or by reason of a natural gas curtailment plan pursuant to the federal Power Act; (c) use of an alternative fuel by reason of an order or rule under Section 125 of the federal Clean Air Act; (d) use of an alternative fuel at a steam generating unit to the extent that the fuel is generated from municipal solid waste; (e) use of an alternative fuel or raw material by a stationary source which: (i) the source was capable of accommodating before December 21, 1976, unless such change would be prohibited under any federally enforceable permit condition which was established after December 21, 1976 pursuant to 40 CFR 52.21 or under regulations approved pursuant to 40 CFR 51.165 or 40 CFR 51.166; or (ii) the source is approved to use under any permit issued under 40 CFR 52.21 or under regulations approved pursuant to 40 CFR 51.166; (f) an increase in the hours of operation or in the production rate, unless such change would be prohibited under any federally enforceable permit which wa s established after December 21, 1976, pursuant to 40 CFR 52.21 or under regulations approved pursuant to 40 CFR 51.165 or 40 CFR 51.166; (g) any change in ownership at a stationary source; or (h) the installation, operation, cessation, or removal of a temporary clean coal technology demonstration project, provided that the project complies withthe state implementation planfor the state in which is project is located, and other requirements necessary to attain and maintain the national ambient air quality standards during the project and after it is terminated. (2) This definition shall not apply with respect to a particular regulated new source review pollutant when the major stationary source is complying with the requirements under 20.2.79.120 NMAC for a plantwide applicability limit for that pollutant. Instead, the definition at Paragraph (8) of Subsection B of 20.2.79.120 NMAC shall apply. (3) For the purpose of applying the requirements of Subsection H of 20.2.79.109 NMAC to modifications at major stationary sources of nitrogen oxides located in ozone nonattainment areas or in ozone transport regions, whether or not subjectto subpart 2, part D, title I of the federal Clean Air Act, any significant net emissions increase of nitrogen oxides is considered significant for ozone. (4) Any physical change in, or change in the method of operation of a major stationary source of volatile organic compounds that results in any increase in emissions of volatile organic compounds from any discrete operation, emissions unit, or other pollutant emitti ng activity at the source shall be considered a significant net emissions increase and a major modification for ozone, if the major stationary source is located in an extreme ozone nonattainment area that is subject to subpart 2, part D, title I of the federal Clean Air Act. V. "Major stationary source" means the following. (1) Any stationary source of air pollutants which emits, or has the potential to emit, 100 tons per year or more of any regulated new source review pollutant, except that lower emissions thresholds shall apply in areas subject to subpart 2, subpart 3, or subpart 4 of part D, title I of the[subje ct to regulation under of the ] federal Clean Air Act, according to Subparagraphs (a) through (f) of Paragraph (1) of Subsection V of 20.2.79.7 NMAC (a) 50 tons per year of volatile organic compounds in any serious ozone nonattainment area. (b) 50 tons per year of volatile organic compounds in an area within an ozone transport region, except for any severe or extreme ozone nonattainment area. (c) 25 tons per year of volatile organic compounds in any severe ozone nonattainment area. (d) 10 tons per year of volatile organic compounds in any extreme ozone nonattainment area. (e) 50 tons per year of carbon monoxide in any serious nonattainment area for carbon monoxide, where stationary sources contribute significantly to carbon monoxide levels in the area (as determined under rules issued by the United States environmental protection agency administrator). (f) 70 tons per year of PM10 in any serious nonattainment area for PM10. (2) For the purposes of applying the requirements of Subsection H of 20.2.79.109 NMAC to stationary sources of nitrogen oxides located in an ozone nonattainment area or in an ozone transport region, any stationary source which emits, or has the potential to emit, 100 tons per year or more of nitrogen oxides emissions,

### 20.2.79 NMAC 5 except that the emission thresholds in Subparagraphs (a) through (f) of Paragraph (1) of Subsection V of 20.2.79.7 NMAC shall apply in areas subject to subpart 2 of part D, title I of the federal Clean Air Act. (a) 100 tons per year or more of nitrogen oxides in any ozone nonattainment area classified as marginal or moderate. (b) 100 tons per year or more of nitrogen oxides in any ozone nonattainment area classified as a transitional, submarginal, or incomplete or no data area, when such area is located in an ozone transport region. (c) 100 tons per year or more of nitrogen oxides in any area designated under section 107(D) if the federal Clean Air Act as attainment or unclassifiable for ozone that is located in an ozone transport region. (d) 50 tons per year or more of nitrogen oxides in any serious nonattainment area for ozone. (e) 25 tons per year or more of nitrogen oxides in any severe nonattainment area for ozone. (f) 10 tons per year or more of nitrogen oxides in any extreme nonattainment area for ozone; or [(2) ](3)Any physical change that would occur at a stationary source not qualifying under Paragraph (1) or (2) of this definition as a major stationary source, if the change would constitute a major stationary source by itself. [(3) ](4)A major stationary source that is major for volatile organic compounds or oxides of nitrogen shall be considered major for ozone. [(4) ](5)A stationary source shall not be a major stationary source due to fugitive emissions, to the extent they are quantifiable, unless the source belongs to: (a) any category in Subsection B of 20.2.79.119 NMAC; or (b) any other stationary source category which as of August 7, 1980 is being regulated under Section 111 or 112 of the federal Clean Air Act. [(5) ](6)A stationary source shall not be a major stationary source due to secondary emissions. W. "Mandatory federal class I area" means those federal lands that are international parks, national wilderness areas which exceed five thousand (5,000) acres in size, national memorial parks which exceed five thousand (5,000) acres in size, and national parks which exceed six thousand (6 ,000) acres in size, and which were in existence on August 7, 1977. These areas may not be redesignated. X. "Natural conditions" includes naturally occurring phenomena that reduce visibility as measured in terms of visual range, contrast or coloration. Y. "Necessary preconstructi on approvals or permits" means those permits or approvals required under federal air quality control laws and regulations and those air quality control laws and regulations which are part of the applicable state implementation plan. Z. "Net emissions increase". (1) With respect to any regulated new source review pollutant emitted by a major stationary source, the amount by which the sum of the following exceeds zero: (a) the increase in emissions from a particular physical change or ch ange in the method of operation at a stationary source as calculated pursuant to Subsection E of 20.2.79.109 NMAC; and (b) any other increases and decreases in actual emissions at the major stationary source that are contemporaneous with the particular change and are otherwise creditable; baseline actual emissions for calculating increases and decreases shall be determined as provided in Subsection E of this section, except that Subparagraphs (c) and (d) of Paragraph (2) of Subsection E of this section shall not apply. (2) An increase or decrease in actual emissionsis contemporaneous with the increase from the particular change only if it occurs within the time period five years prior to the commencement of construction on the particular change and the date that the increase from the particular change occurs; (3) An increase or decrease in actual emissions is creditable only if: (a) it occurs within the time period five years prior to the commencement of construction on the particular change and the date that the increase from the particular change occurs; and (b) either the department or the administrator has not relied on it in issuing a permit for the source under regulations approved pursuant to this section, which permit is in effect when the increase in actual emissions from the particular change occurs. (4) An increase in actual emissions is creditable only to the extent that the new level of actual emissions exceeds the old level. (5) A decrease in actual emissions is creditable only to the extent that: (a) the old level of actual emissions or the old level of allowable emissions whichever is lower, exceeds the new level of actual emissions; (b) it is enforceable as a practical matter at and after the time that actual construction on the particular change begins;

### 20.2.79 NMAC 6 (c) the department has not relied on it in issuing any permit under regulations approved pursuant to 40 CFR Part 51 Subpart I or the state has not relied on it in demonstrating attainment or reasonable further progress; and (d) it has approximately the same qualitative significance for public health and welfare as that attributed to the increase from the particular change. (6) An increase that results from a physical ch ange at a source occurs wh en the emissions unit on which construction occurred becomes operational and beginsto emit a particular po llutant. Any replacement unit that requires shakedown becomes operational only after a reasonable shakedown period, not to exceed 180 days. (7) Paragraph (1) of Subsection A of this section shall not apply for determining creditable increases and decreases or after a change. AA. "Nonattainment area" means, for any air pollutant an area which is shown by monitored data or which is calculated by air quality modeling (or other methods determined by the administrator to be reliable) to exceed any national ambient air quality standard for such pollutant. Such term includes any area identified under Subparagraphs (A) through (C) of Section 107(d)(1) of the federal Clean Air Act. AB. "Nonattainment major new source review (NSR) program" means a major source preconstruction permit program that has been approved by the administrator and incorporated into the New Mexico state implementation plan to implement the requirements of 40 CFR 51.165, or a program that implements 40 CFR Part 51, Appendix S, Sections I through VI. Any permit issued under such a program is a major new source review permit. AC. "Part" means an air quality control regulation under Title 20, Chapter 2 of the New Mexico Administrative Code, unless otherwise noted; as adopted or amended by the board. AD. "Portable stationary source" means a source which can be relocated to another operating site with limited dismantling and reassembly. AE. "Potential to emit" means the maximum capacity of a stationary source to emit a pollutant under its physical and operational design. Any physical or operational limitation on the capacity of the source to emit a pollutant, including air pollution control equipment and restrictions on hours of operation or on the type or amount of material combusted, stored, or processed, shall be treated as part of its design only if the limitation or the effect it would have on emissions is federally enforceable. AF. "Predictive emissions monitoring system" (PEMS) means all of the equipment necessary to monitor process and control device operational parameters (for example, control device secondary voltages and electric currents) and other information (for example, gas flow rate, oxygen or carbon dioxide concentrations), and calculate and record the mass emissions rate (for example, pounds per hour) on a continuous basis. AG. "Prevention of significant deterioration (PSD) permit" means any permit that is issued under 20.2.74 NMAC. AH. "Project" means a physical change in, or change in the method of operation of, an existing major stationary source. AI. "Projected actual emissions" means, the maximum annual rate, in tons per year, at which an existing emissions unit is projected to emit a regulated new source review pollutant in any one of the 5 years (12- month period) following the date the unit resumes regular operation after the project, or in any one of the 10 years following that date, if the project involves increasing the emissions unit's design capacity or its potential to emit of that regulated new source review pollutant and full utilization of the unit would result in a significant emissions increase or a significant net emissions increase at the major stationary source. In determining the projected actual emissions before beginning actual construction, the owner or operator of the major stationary source: (1) shall consider all relevant information, including but not limited to, historical operational data, the company's own representations, the company's expected bus iness activity and the company's highest projections of business activity, the company's filings with the state or federal regulatory authorities, and compliance plans under the approved plan; and (2) shall include fugitive emissions to the extent quantifiable, and emissions associated with startups, shutdowns, and malfunctions; and (3) shall exclude, in calculating any increase in emissions that results from the particular project, that portion of the unit's emissions following the project that an existing unit could have accommodated during the consecutive 24-month period used to establish the baseline actual emissions under Subsection E of this section and that are also unrelated to the particular project, including any increased utilization due to product demand growth;

or, (4) in lieu of using the method set out in Paragraphs (1) through (3) of this subsection, may elect to

u se the emissions unit's potential to emit, in tons per year, as defined under Subsection AE of this section.

### 20.2.79 NMAC 7 AJ. "Regulated new so urce review pollutant" , for purposes of this section, means the following: (1) nitrogen oxides or any volatile organic compounds; (2) any pollutant for which a national ambient air quality standard has been promulgated; [or] (3) any pollutant that is a constituent or precursor of a general pollutant listed in Paragraphs (1) or (2) of this subsection, provided that a constituent or precursor pollutant may only be regulated under new source review as part of regulation of the general pollutant. AK. "Replacement Unit" means an emission unit for which all of the following criteria are met. No creditable emission reductions shall begenerated from shutting down the existing emissions unit that is replaced. (1) The emissions unit is a reconstructed unit within the meaning of 40 CFR 60.15(b)(1), or the emissions unit completely takes the place of an existing emissions unit. (2) The emissions unit is identical to or functionally equivalent to the replaced emissions unit. (3) The replacement unit does not change the basic design parameter(s) of the process unit. (4) The replaced emissions unit is permanently removed from the major stationary source, otherwise permanently disabled, or permanently barred from operation bya permit that is enforceable as a practical matter. If the replaced emissions unit is brought back into operation, it shall constitute a new emissions unit. AL. "Secondary emissions" means emissions which would occur as a result of the construction or operation of a major stationary source or major modification, but do not come from the major stationary source or major modification itself. For the purpose of this section, secondary emissions must be specific, well defined, quantifiable, and impact the same general area as the stationary source or modification which causes the secondary emissions. Secondary emissions include emissions from any offsite support facility which would not be constructed or increase its emissions except as a result of the construction or operation of the major stationary source or major modification. Secondary emissions do not include any emissions which come directly from a mobile source, such as emissions from the tailpipe of a motor vehi cle, from a train, or from a vessel. AM. "Significant" means: (1) In reference to a net emissions increase or the potential of a source to emit any of the following pollutants, a rate of emissions that would equal or exceed any of the following rates: carbon monoxide, 100 tons per year; nitrogen oxides, 40 tons per year; sulfur dioxide, 40 tons per year; PM-10 emissions, 15 tons per year; ozone, 40 tons per year of volatile organic compounds or nitrogen oxides ; lead, 0.6 tons per year. (2) Notwithstanding the significant emissions rate for ozone in Paragraph (1) of Subsection AM of 20.2.79.7 NMAC, significant means, in reference to an emissions increase or a net emissions increase, any increase in actual emissions of volatile organic compounds that would result from any physical change in, or change in the method of operation of, a major stationary source locating in a serious or severe ozone nonattainment area that is subject to subpart 2, part D, title I of the federal CleanAir Act, if such emissions increase of volatile organic compounds exceeds 25 tons per year. (3) For the purposes of applying the requirements of Subsection H of 20.2.79.109 NMAC to modifications at major stationary sources of nitrogen oxides located in an ozone nonattainment area or in an ozone transport region, the significant emission rates and other requirements for volatile organic compounds in Paragraphs (1), (2), and (5) of Subsection AM of 20.2.79.7 NMAC shall apply to nitrogen oxides emissions. (4) Notwithstanding the significant emissions rate for carbon monoxide under Paragraph (1) of Subsection AM of 20.2.79.7 NMAC significant means, in reference to an emissions increase or a net emissions increase, any increase in actual emissi ons of carbon monoxide that would result from any physical change in, or change in the method of operation of, a major stationary source in a serious nonattainment area for carbon monoxide if such increase equals or exceeds 50 tons per year, provided the U.S. environmental protection agency administrator has determined that stationary sources contribute si gnificantly to carbon monoxide levels in that area. (5) Notwithstanding the significant emissions rates for ozone under Paragraphs (1) and (2) of Subsection AM of 20.2.79.7 NMAC, any increase in actual emissions of volatile organic compounds from any emissions unit at a major stationary source of volatile organic compounds located in an extreme ozone nonattainment area that is subject to subpart 2, part D, title I of the federal Clean Air Act shall be considered a significant net emissions increase. AN. "Significant emissions increase" means, for a regulated new source review pollutant, an increase in emissions that is significant (as defined in Subsection AM of this section) for that pollutant. AO. "Stationary source" means any building, structure, facility, or installation which emits or may emit any regulated new source review pollutant. AP. "Temporary source" means a stationary source which changes its location or ceases to exist within one year from the date of initial start of operations.

### 20.2.79 NMAC 8 AQ. "Visibility impairment" means any humanly perceptible change in visibility (visual range, contrast, coloration) from that which would have existed under natural conditions. [11/30/95; 20.2.79.7 NMAC - Rn, 20 NMAC 2.79.107, 10/31/02; A, 1/22/06; A, 08/31/09]

20.2.79.109 APPLICABILITY. A.Any person constructing any new major stationary source or major modification shall obtain a permit from the department in accordance with the requirements of this part prior to the start of construction or modification if either of the following conditions apply: (1) the major stationary source or major modification will be located within a nonattainment area so designated pursuant to Section 107 of the federal Clean Air Act and will emit a regulated pollutant for which it is major and which the area is designated nonattainment for; or (2) the major stationary source or major modification will be located within an area designated attainment or unclassifiable pursuant to Section 107 of the federal Clean Air Act and will emit a regulated pollutant for which it is major and the ambient impact of such pollutant would exceed any of the significance levels in Subsection A of 20.2.79.119 NMAC at any location that does not meet any national ambient air quality standard for the same pollutant. (See Subsection D of 20.2.79.109 NMAC.) B.The requirements of this part apply to each re gulated pollutant meeting the criteria of either Paragraph (1) or Paragraph (2) of Subsection A of 20.2.79.109 NMAC. C.For an area which is nonattainment for ozone, volatile organic compounds and oxides of nitrogen are the regulated pollutants which may make this part applicable under the provisions of Paragraph (1) of Subsection A of 20.2.79.109 NMAC. D.Other requirements. (1) A new major stationary source or major modification which meets the criteria of Paragraph (2) of Subsection A of 20.2.79.109 NMAC shall demonstrate that th e source or modification will not cause or contribute to a violation of any national ambient air quality standard by meeting the following requirements and no others of this part: (a) Paragraph (2) of Subsection C of 20.2.79.112 NMAC regarding emission offsets; (b) Subsection D of 20.2.79.112 NMAC regarding a net air quality benefit; (c) 20.2.79.114 NMAC - Emission Offset Baseline; (d) 20.2.79.115 NMAC - Emission Offset; and (e) 20.2.79.117 NMAC - Air Quality Benefit. (2) In addition , a new source or modification which meets the criteria of Paragraph (2) of Subsection A of 20.2.79.109 NMAC and is also a major stationary source or major modification as defined in 20.2.74 NMAC (prevention of significant deterioration (PSD)), shall obtain a PSD permit under the provisions of 20.2.74 NMAC. E.Applicability procedures. (1) Except as otherwise provided in Paragraphs (3) and (4) of this subsection, and consistent with the definition of major modification, a project is a major modification for a regulated new source review pollutant if it causes two types of emissions increases - a significant emissions increase (as defined in Subsection AM of 20.2.79.7 NMAC), and a significant net emissions increase (as defined in Subsections Z and AM of 20.2.79.7 NMAC). The project is not a major modification if it does not cause a significant emissions increase. If the project causes a significant emissions increase, then the project is a major modification only if it also results in a significant net emissions increase. (2) The procedure for calculating (before beginning actual construction) whether a significant emissions increase (i.e., the first step of the process) will occur depends upon the type of emissions units being modified, according to Paragraphs (3) and (4) of this subsection. The procedure for calculating (before beginning actual construction) whether a significant net emissions increase will occur at the major stationary source (i.e., the second step of the process) is contained in the definition of net emissions increase. Regardless of any such preconstruction projections, a major modification results if the project causes a significant emissions increase and a significant net emissions increase. (3) Actual-to-projected-actual applicability test for projects that involve existing emissions units. A significant emissions increase of a regulated new source revi ew po llutant is projected to occur if the sum of the difference between the projected actual emissions and the baseline actual emissions (as defined in Paragraphs (1) and (2) of Subsection E of 20 .2.79.7 NMAC, as applicable), for each exis ting emissions unit, equals or exceeds the significant amount for that pollutant (as defined in Subsection AM of 20.2.79.7 NMAC). (4) Actual-to-potential test for projects that involve construction of a new emissions unit(s). A significant emissions increase of a regulated new source revi ew pollutant is projected to occur if the sum of the

### 20.2.79 NMAC 9 difference between the potential to emit from each new emi ssions unit following completion of the project and the baseline actual emissions (as defined in Paragraph (3) of Subsection E of 20.2.79.7 NMAC) of these units before the project equals or exceeds the significant amount for that pollutant (as defined in Subsection AM of 20.2.79.7 NMAC). (5) Hybrid test for projects that involve multiple types of emissions units. A significant emissions increase of a regulated NSR pollutant isprojected to occur if the sum of the emissions increases for each emissions unit, using the method specified in Paragraphs (3) and (4) of this subsection as applicable with respect to each emissions unit, for each type of emi ssions unit equals or exceeds the signif icant amount for that pollutant. For example, if a project involv es both an existing emissions unit and a new emissions unit, the projected increase is determined by summing the values determined using the method specified in Paragraph (3) of this subsection for the existing unit and determined using the method specified in Paragraph (4) of this subsection for the new unit. (6) For any major stationary source for a PAL for a regulated new source review pollutant, the major stationary source shall comply with requirements under 20.2.79.120 NMAC. F.The following specific provisions apply to projects at existing emissions units at a major stationary source (other than projects at a source with a PAL) in circumstanceswhere the owner or operator elects to use the method specified in Paragraphs (1) through (3) of Subsection AI of 20.2.79.7 NMAC for calculating projected actual emissions. (1) Before beginning actual construction of the project, the owner or operator shall document and maintain a record of the following information: (a) a description of the project; (b) identification of the emissions unit(s) whose emissions of a regulated new source review pollutant could be affected by the project; and (c) a description of the applicability test used to determine that the project is not a major modification for any regulated new source review pollutant , including the baseline actual emissions, the projected actual emissions, the amount of emissions excluded under Paragraph (3) of Subsection AI of 20.2.79.7 NMAC and an explanation for why such amount was excluded, and any netting calculations, if applicable. (2) If the emissions unit is an existing electric utility steam generating unit, before beginning actual construction, the owner or operator shall provide a copy of the information set out in Paragraph (1) of this subsection to the department. Nothing in this paragraph shall be construed to require the owner or operator of such a unit to obtain any determination from the department; however, necessary preconstruction approvals and/or permits must be obtained before beginning actual construction. (3) The owner or operator shall monitor the emissions of any regulated new source review pollutant that could increase as a result of the project and that is emitted by any emissions units identified in Subparagraph (b) of Paragraph (1) of this subsection; and calculate and mainta in a record of the annual emissions, in tons per year on a calendar year basis, for a period of 5 years following resumption of regular operations after the change, or for a period of 10 years following resumption of regular operations after the change if the project increases the design capacity or potential to emit of that regulated new source review pollutant at such emissions unit. (4) If the unit is an existing electric utility steam generating unit, the owner or operator shall submit a report to the department within 60 days after the end of each year during which records must be generated under Paragraph (3) of this subsection setting out the unit's annual emissions during the year that preceded submission of the report. (5) If the unit is an existing unit other than an electric utility steam generating unit, the owner or operator shall submit a report to the department if the annual emissions, in tons per year, from the project identified in Paragraph (1) of this subsection, exceed the baseline actual emissions (as documented and maintained pursuant to Subparagraph (c) of Paragraph (1) of this subsection, by a significant amount (as defined in Subsection AM of 20.2.79.7 NMAC) for that regulated new source review pollutant, and if such emissions differ from the preconstruction projection as documented and maintained pursuant to Subparagraph (c) of Paragraph (1) of this subsection. Such report shall be submitted to the department within 60 days after the end of such year. The report shall contain the following: (a) the name, address and telephone number of the major stationary source; (b) the annual emissions as calculated pursuant to Paragraph (3) of this subsection; and (c) any other information that the owner or operator wishes to include in the report (e.g., an explanation as to why the emissions differ from the preconstruction projection). G.The owner or operator of the source shall make the information required to be documented and maintained pursuant to Subsection F of this section (20.2.79.109 NMAC) available for review upon a request for

### 20.2.79 NMAC 10 inspection by the department or the general public pursuant to the requirements contained in 40 CFR 70.4(b)(3)(viii). H. The requirements of this section (20.2.79.109 NMAC) applicable to major stationary sources and major modifications of volatile organic compounds shall apply to nitrogen oxides emissions from major stationary sources and major modifications of nitrogen oxides in an ozone transport region or in any ozone nonattainment area, except in ozone nonattainment areas or in portions of an ozone transport region where the U.S. environmental protection agency administrator has granted a NO X 

### waiver applying the standards set forth under section 182(f) of the federal Clean Air Act and the waiver continues to apply. I.In meeting the emissions offset requirements of 20.2.79.115 NMAC for ozone nonattainment areas that are subject to subpart 2, part D, title I of the cl ean air act, the ratio of total actual emissions reductions of VOC to the emissions increase of VOC shall be as follows: (1) in any marginal nonattainment area for ozone, at least 1.1:1; (2) in any moderate nonattainment area for ozone, at least 1.15:1; (3) in any serious nonattainment area for ozone, at least 1.2:1; (4) in any severe nonattainment area for ozone, at least 1.3:1 (except that the ratio may be at least 1.2:1 if the approved state implementation plan also require s all existing major sources in such nonattainment area to use BACT for the control of VOC); and (5) in any extreme nonattainment area for ozone, at least 1.5:1 (except that the ratio may be at least 1.2:1 if the approved state implementation plan also require s all existing major sources in such nonattainment area to use BACT for the control of VOC. J. Notwithstanding the requirements of Paragraph (1) of Subsection I of 20.2.79.109 NMAC for meeting the requirements of 20.2.79.115 NMAC, the ratio of total actual emissions reductions of VOC to the emissions increase of VOC shall be at least 1.15:1 for all areas within an ozone transport region that is subject to subpart 2, part D title I of the federal Clean Air Act, ex cept for serious, severe, and extreme ozone nonattainment areas that are subject to subpart 2, part D, title I of the federal Clean Air Act. K. Meeting the emissions offset requirements of 20.2.79.115 NMAC for ozone nonattainment areas that are subject to subpart 1, part D, title I of the clean air act, including 8-hour ozone nonattainment areas subject to 40 CFR 51.902(b), the ratio of total actual emissions increase of VOC shall be at least 1:1. L. The requirements of 20 .2.79.109 NMAC applicable to major stationary sources and major modifications of PM10 shall also apply to major stationary sources and major modifications of PM10 precursors except where the US. environmental protection agency administrator determines that such sources do not contribute significantly to PM10 levelsthat exceed the PM10 am bient standards in the area. [11/30/95; 20.2.79.109 NMAC - Rn, 20 NMAC 2.79.109, 10/31/02; A, 1/22/06; A, 08/31/09]

20.2.79.115 EMISSION OFFSETS.All emission offsets approved bythe department shall meet the following criteria. A.All emission reductions claimed as offset credit sh all be from decreases of the same pollutant for which the offset is required. B.All emission reductions claimed as offset credit shall occur prior to or concurrent with the start of operation of the proposed source. In addition, past reductio ns must have occurred later than the date upon which the area became nonattainment in order to be creditable. C.For the case where emission reductions claimed as of fset credit occur at the source subject to this part, such reductions shall be a condition required by a federally enforceable permit. For the case where emission reductions claimed as offset credit occur at a neighboring source, such reductions shall be incorporated as modifications to pertinent federally enforceable permits held by the neighboring source. If the neighboring source has no relevant permits, the reductions shall be approved as a revision to the state implementation plan by the board. D.Offset credit for any emissions reduction can be claimed only to the extent that the department or U.S. EPA has not relied on it in previously issuing any permit or in demonstrating attainment or reasonable further
progress. E.No emissions reduction credit shall be allowed for replacing one volatile organic compound with another of lesser reactivity, except as approved by the U.S. EPA reactivity guidance found at 42 federal register 35314, (1977), and any amendments thereto. F.Emission reduction credit may be allowed for a source permanently curtailing production or operating hours below baseline levels provided that the work force to be affected has been notified of the curtailment.

### 20.2.79 NMAC 11 (1) Emissions reductions achieved by shutting down an existing [source] emission unit or curtailing production or operating hours below baseline levels may be generally credited for offsetsif such reductions are permanent, quantifiable, and federally enforceable[, and if the area has an EPA

- approved attainment plan ]. In addition, the shutdown or curtailment is creditable only if it occurred [on or after the date specified for this purpose in the plan, and if such date is on or] after the date of the most recent emissions inventory used in the state implementationplan's demonstration of attainment. [Where the plan does not specify a cutoff date for shutdown credits, the date of the most recent emissions inventory or attainment demonstration, as the case may be, shall apply. ] However, in no event may credit be given for shutdowns which occurred prior to August 7, 1977. For purposes of this paragraph, a permitting authority may choose to consider a prior shutdown or curtailment to have occurred after the date of [its most recent emissions ] the base year inventory, if the projectedinventory used to develop the attainment demonstrationexplicitly includes [as current existing emissions ] the emissions from such previously shutdown or curtailed [sources ] emission units

. (2) Such reductions may be credited in the absence of an approved attainment demonstration only if the shutdown or curtailment occurred on or after the datethe new source permit application is filed, or, if the applicant can establish that the proposed new [source ] emission unit is a replacement for the shutdown or curtailed [source ] emission unit , and the [cutoff date ] provisions of Paragraph (1) of Subsection F of 20.2.79.7 NMACare observed. G.Where the most stringent emissions limit which is applicable allows greater emissions than the potential to emit of the offsetting source, emission offset credit will be allowed only for control below the potential to emit of the source. H.The emission limit for determining emission offset credit involving an existing fuel combustion source shall be the most stringent emission standard which is applicable for this source for the type of fuel being burned at the time the permit application is filed. If the existing source commits to switch to a cleaner fuel, emission offset credit based on the difference between the allowable emissions of the fuels involved shall be acceptable only if an alternative control measure, which would achieve the same degree of emission reduction should the source switch back to a fuel which produces more pollution, is specified in a permit issued by the department. I.The owner or operator desiring to utilize an emission reduction as an offset shall submit to the department the following information: (1) a detailed description of the process to be controlled and the control technology to be used; and (2) emission calculations showing the types and amounts of actual emissions to be reduced; and (3) the effective date of the reduction. J.Source shutdowns and curtailments in production or operating hours may be used for emission offset credit only if they occur after August 7, 1977, or less than one year prior to the date of permit application, whichever is earlier, and the proposed new source for which the offset is to apply is a replacement for the shutdown or curtailment. K.The total tonnage of increased emissions, in tons per year, resulting from a major modification that must be offset in accordance with S ection 173 of the federal Clean Air Act shall be determined by summing the difference between the allowable emissions after the modification and the actual emissions before the modification for each emissions unit. [11/30/95; 20.2.79.115 NMAC - Rn, 20 NMAC 2.79.115, 10/31/02; A, 1/22/06; A, 08/31/09]

### 20.2.2 NMAC 1 TITLE 20 ENVIRONMEN TAL PROTECTION CHAPTER 2 AIR QUALITY (STATEWIDE) PART 2 DEFINITIONS

20.2.2.1 ISSUING AGENCY: New Mexico Environmental Improvement Board. [10/27/95; 20.2.2.1 NMAC - Rn, 20 NMAC 2.100, 10/31/02]

20.2.2.2 SCOPE: The provisions of this part shall apply to all New Mexico regulations regarding air quality, and codified as 20.2.3 NMAC through 20.2.99 NMAC. [10/27/95; 20.2.2.2 NMAC - Rn, 20 NMAC 2.101, 10/31/02]

20.2.2.3 STATUTORY AUTHORITY: The environmental improvement board "shall promulgate regulations and standards in ... air quality management" (NMSA 1978, section 74-1-8.A) and "the Environmental Improvement Board... shall adopt... regulations to attain and maintain national ambient air quality standards and prevent or abate air pollution..." (NMSA 1978, section 74-2-5.B). [10/27/95; 20.2.2.3 NMAC - Rn, 20 NMAC 2.102, 10/31/02]

20.2.2.4 DURATION: Permanent. [10/27/95; 20.2.2.4 NMAC - Rn, 20 NMAC 2.103, 10/31/02]

20.2.2.5 EFFECTIVE DATE: October 27, 1995. [10/27/95; 20.2.2.5 NMAC - Rn, 20 NMAC 2.104, 10/31/02]

20.2.2.6 OBJECTIVE: To provide specific definitions for terms used and not defined in air quality regulations 20.2.3 NMAC through 20.2.99 NMAC. [10/27/95; 20.2.2.6 NMAC - Rn, 20 NMAC 2.105, 10/31/02]

20.2.2.7 DEFINITIONS: The following definitions apply to all Parts of Title 20, Chapter 2 NMAC. A. "Administrator" means the administrator of the United States environmental protection agency (US EPA) or his or her designee. B. "Aerodynamic diameter" means the diameter of a sphere of unit density which behaves aerodynamically the same as the particle of the test substance. It is used to predict where particles of different size and density may be deposited in the respiratory tract. C. "Air contaminant" means any airborne substance, including but not limited to, any particulate matter, fly ash, dust, fumes, gas, mist, smoke, vapor, micro-organisms, radioactive material, any combination thereof or any decay or reaction product thereof. D. "Air pollution" means the emission, except as such emission occurs in nature, into the outdoor atmosphere of one or more air contaminants in such quantities and duration as may with reasonable probability injure human health, animal or plant life, or as may unreasonable interfere with the public welfare, visibility or the reasonable use of property. E. "Asbestos" includes chrysolite, crocidolite, amosite, anthophylite, tremolite, and actinolite. F. "Board" means the New Mexico environmental improvement board or its successor agency or authority. G. "Carbon dioxide" means the chemical compound containingone atom of carbon and two atoms of oxygen. H. "Carbon monoxide" means the chemical compound containing one atom of carbon and one atom of oxygen. I. "Department" means the New Mexico environment department or its successor agency or authority, as represented by the department secretary or his or her designee. J. "Federal act" means the Federal Clean Air Act, as amended, 42 U.S.C. sections 7401 et seq. K. "Flue" means, any duct for air, gases, or th e like, such as a stack or chimney. L. "Fugitive dust" or "fugitive particulate matter" means particulate emissions which escape to the atmosphere due to leakage; materials handling, transfer or storage; travel over unpaved roads or parking areas; or other industrial activities, and which are not ducted through exhaust systems. M. "Greenhouse gas" means any of the following: carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons or sulfur hexafluoride.

### 20.2.2 NMAC 2 N. "Heavy metal" means any metal having an atomic number greater than 21. O. “Hydrofluorocarbons”means gaseous chemical compounds containing only hydrogen, carbon, and fluorine atoms. P. "Hydrogen sulfide" means the chemical compound containing two atoms of hydrogen and one atom of sulfur. Q. "Kraft pulp" means the fibrous cellulose material produced in a kraft mill. R. "Lead" means elemental lead; alloys in which oneof the elements is lead; or compounds containing lead, which are measured as elemental lead. S. "Methane" means the chemical compound containingone atom of carbon and four atoms of hydrogen. T. "mg/m3" means milligrams per cubic meter. U. "Nitrogen dioxide" means the chemical compound containing one atom of nitrogen and two atoms of oxygen, for the purposes of ambient determinations. The term "nitrogen dioxide," for the purposes of stack emissions monitoring, shall include nitrogen dioxide (the chemical compound containing one atom of nitrogen and two atoms of oxygen), nitric oxide (the chemical compound containing one atom of nitrogen and one atom of oxygen), and other oxides of nitrogen which may test as nitrogen dioxide. V. "Nitrous oxide" means the chemical compound containing two atoms of nitrogen and one atom of oxygen. W. "Non-methane hydrocarbons" means any combination of hydrocarbons (chemical compounds consisting of hydrogen and carbon) excluding only the molecule methane. X. "Ozone" means the chemical compound having the molecular composition of three oxygen

atoms. Y. "Particulate matter" means any airborne, finely divided solid or liquid material with an aerodynamic diameter smaller than 100 micrometers. Z. "Particulate matter emissions" means all finely divided solid or liquid material, other than uncombined water, emitted to the ambient air as measured by: applicable reference methods; an equivalent or alternative method specified by the administrator; or a test method specified in the New Mexico state implementation plan. AA. "Perfluorocarbons" means gaseous chemical compounds containing only carbon and fluorine

atoms. AB. "Person" means any individual; partnership; corporation; association; municipality; the state or political subdivision of the state; and any agency, department, or instrumentality of the United States and any of their officers, agents, or employees. AC. "Photochemical oxidents" means those oxidizing chemical co mpounds which are the products of photo initiated reactions involving organic compounds and nitrogen oxides, consisting primarily of ozone and peroxyacetyl nitrate (PAN). AD. "PM10" means particulate matter with an aerodynamic diameter less than or equal to a nominal 10 micrometers. AE. "PM10 emissions" means finely divided solid or liquid material with an aerodynamic diameter less than or equal to a nominal 10 micrometers, emitted to the ambient air, as measured by: an applicable reference method; an equivalent or alternative method specified by the EPA administrator; or a test method specified in the New Mexico state implementation plan. AF. "PM2.5" means particulate matter with an aerodynamicdiameter less than or equal to a nominal 2.5 micrometers. AG. "PM2.5 emissions" means finely divided solid or liquid material with an aerodynamic diameter less than or equal to a nominal 2.5 micrometers, emitted to the ambient air, as measured by: an applicable reference method; an equivalent or alternative method specified by the EPA administrator; or a test method specified in the New Mexico state implementation plan. AH. "ppm" means parts per million by volume. AI. "Ringelmann scale" means the grading of opacity, appearance, density or shade of a smoke emission, in determining the light-obscuring power of smoke. AJ. "Schedule of compliance" means a schedule or timetable, accep table to the board, which clearly sets out in detail, the steps to be taken in achieving the objectives of a regulation or standard. AK. "Secretary" means the secretary of the New Mexico environment department or his or her designee.

### 20.2.2 NMAC 3 AL. "Smoke" means small gas-borne particles resulting from incomplete combustion, consisting predominantly, by not exclusively, of carbon, soot and combustible material. AM. "Sulfur dioxide" means the chemical compound containingone atom of sulfur and two atoms of oxygen, for the purposes of ambient determinations. The term sulfur dioxide, for the purposes of stack emissions monitoring, shall include sulfur dioxide (chemical compound containing one atom of sulfur and two atoms of oxygen), and other oxides of sulfur which may test as sulfur dioxide. AN. "Sulfur hexafluoride" means the chemical compound containing one atom of sulfur and six atoms of fluorine. AO. "Total reduced sulfur" means any combination of sulfur compounds, except sulfur dioxide and free sulfur, which test as total reduced sulfur, including, but not limited to, hydrogen sulfide, methyl mercaptan, and ethyl mercaptan. AP. "Total suspended particulates (TSP)" means particulate matter as measured by the method described in 40 CFR Part 50, Appendix B. AQ. "ug/m3" means micrograms per cubic meter. AR. "US EPA" means the United States environmental protection agency. AS. "Volatile organic compound (VOC)" means any organic compound which participates in atmospheric photochemical reactions; that is, any organic compound other than those which the administrator designates as having negligible photochemical reactivity. [10/27/95; 20.2.2.7 NMAC - Rn, 20 NMAC 2.2.200 10/31/02; A, 01/01/08; A, 08/31/09]

20.2.2.8 AMENDMENT AND SUPERSESSION OF PRIOR REGULATIONS: This part supersedes AQCR 100, originally filed on January 23, 1970, and subsequently amended and refiled on May 26, 1971, September 1, 1971, September 14, 1973, June 14, 1974, July 15, 1974, February 7, 1983, May 26, 1983, August 1, 1988, and May 29, 1990. [10/27/95; 20.2.2.8 NMAC - Rn, 20 NMAC 2.2.106, 10/31/02]

20.2.2.9 DOCUMENTS: Documents cited in this part may be viewed at the New Mexico Environment Department, Air Quality Bureau, Runnels Building, 1190 Saint Francis Drive, Santa Fe, NM 87503 [2048 Galisteo St., Santa Fe, NM 87505]. [10/27/95; 20.2.2.9 NMAC - Rn, 20 NMAC 2.2.107, 10/31/02]

HISTORY OF 20.2.2 NMAC: Pre-NMAC History: The material in this part was derived from that previously filed with the commission of public records-state records center and archives: HSSD 70-1, Ambient Air Quality Standards and Air Quality Control Regulations, 01/27/70. AQCR 100, Air Quality Control Regulation 100 - Definitions, 02/07/83. AQCR 100, Air Quality Control Regulation 100 - Definitions, 05/26/83. EIB/AQCR 100, Air Quality Control Regulation 100 - Definitions, 08/01/88. EIB/AQCR 100, Air Quality Control Regulation 100 - Definitions, 05/29/90.

History of Repealed Material: [RESERVED]

Other History: EIB/AQCR 100, Air Quality Control Regulati on 100 - Definitions, filed 05/29/90 was renumberedinto first version of the New Mexico Administrative Code as 20 NMAC 2.2, Definitions, effective 10/27/95. 20 NMAC 2.2, Definitions (filed 09/27/95) was renumbered, reformatted and replacedby 20.2.2 NMAC, Definitions, effective 10/31/02.

### 20.2.74 NMAC 1 TITLE 20 ENVIRONMEN TAL PROTECTION CHAPTER 2 AIR QUALITY (STATEWIDE) PART 74 PERMITS - PREVENTION OFSIGNIFICANT D ETERIORATION (PSD)

20.2.74.1 ISSUING AGENCY: New Mexico Environmental Improvement Board [07/20/95; 20.2.74.1 NMAC - Rn, 20 NMAC 2.74.100, 10/31/02]

20.2.74.2 SCOPE: Any person constructing any new major stationary source or major modification as defined in this Part, that emits or will emit regulatedpollutants in an attainment or unclassified area. [07/20/95; 20.2.74.2 NMAC - Rn, 20 NMAC 2.74.101, 10/31/02]

20.2.74.3 STATUTORY AUTHORITY: The Environmental Improvement Board "shall promulgate regulations and standards in...air quality management" (NMSA 1978, section 74-1-8.A) and "the environmental improvement board...shall adopt...regulations to attain and maintain national ambient air quality standards and prevent or abate air pollution..." (NMSA 1978, section 74-2-5.B). [07/20/95; 20.2.74.3 NMAC - Rn, 20 NMAC 2.74.102, 10/31/02]

20.2.74.4 DURATION: Permanent. [07/20/95; 20.2.74.4 NMAC - Rn, 20 NMAC 2.74.103, 10/31/02]

20.2.74.5 EFFECTIVE DATE: July 20, 1995, except where a later date is cited at the end of a section or paragraph. [07/20/95; 01/01/00; 20.2.74.5 NMAC - Rn, 20 NMAC 2.74.104, 10/31/02]

20.2.74.6 OBJECTIVE: The purpose of this Part is to require any person constructing any new major stationary source or major modification as defined in thisPart, that emits or will emit regulated pollutants in an attainment or unclassified area, to ob tain a permit from the Department in accordance with the requirements of this Part prior to the construction or modification. [07/20/95; 20.2.74.6 NMAC - Rn, 20 NMAC 2.74.105, 10/31/02]

20.2.74.7 DEFINITIONS: Terms used but not defined in this part shall have the meaning given them by 20.2.2 NMAC (Definitions) (formerly AQC R 100). As used in this part the following definitions shall apply. A. "Act" means the Federal Clean Air Act, as amende d, 42 U. S. C. Sections 7401 et seq. B. "Actual emissions" means the actual rate of emissions of a regulated new source review pollutant from an emissions unit, as determined in accordance with Paragraphs (2) through (4) of this subsection. (1) This definition shall not apply for calculating whether a significant emissions increase has occurred, or for establishing a PAL under 20.2.74.320 NMAC. Instead, Subsections G and AQ of this section shall apply for those purposes. (2) In general, actual emissions as of a particular date shall equal the average rate, in tons per year, at which the unit actually emitte d the pollutant during a consecutive 24-month period which precedes the particular date and which is representative of normal source operation. The department shall allow the use of a different time period upon a determination that it is more representative of normal source operation. Actual emissions shall be calculated using the unit's actual operating hours, production rates, and types of materials processed, stored, or combusted during the selected time period. (3) The department may presume that source-specific allowable emissions for the unit are equivalent to the actual emissions of the unit. (4) For any emissions unit that has not begun normal operations on the particular date, actual emissions shall equal the potential to emit of the unit on that date. C. "Administrator" means the administrator of the U.S. environmental protection agency (EPA) or an authorized representative. D. "Adverse impact on visibility" means visibility impairment which interferes with the management, protection, preservation, or enjoyment of the visitor's visual experience of the class I federal area. This determination must be made on a case-by-case basis taking into account the geographic extent, intensity, duration, frequency, and time of the visibility impairments and how these factors correlate with the following: 1) times of visitor use of the class I federal area; and 2) the frequency and timing of natural conditions that reduce visibility. This term does not include effects on integral vistas as defined in 40 CFR 51.301 Definitions.

### 20.2.74 NMAC 2 E. "Allowable emissions" means the emissions rate of a stationary source calculated using the maximum rated capacity of the source (unless the source is subject to federally enforceable limits which restrict the operating rate, or hours of operation, or both) and the most stringent of the following: (1) the applicable standards as set forth in 40 CFR Parts 60 and 61; (2) the applicable state implementation plan emissions limitation, including those with a future compliance date; or (3) the emissions rate specified as a federally enforceable permit condition,including those with a future compliance date. F. "Attainment area" means, for any air pollutant, an area which is shown by monitored data or which is calculated by air quality modeling not to exceed any national ambient air quality standard for such pollutant, and is so designated under Section 107 (d) (1) (D) or (E) of the act. G. "Baseline actual emissions" means the rate of emissions, in tons per year, of a regulated new source review pollutant, as determinedin accordance with the following. (1) For any existing electric utility steam generating unit, baseline actual emissions means the average rate, in tons per year, at which the unit actually emitted the pollutant during any consecutive 24-month period selected by the owner or operator within the 5-year period imme diately preceding when th e owner or operator begins actual construction of the project. The department shall allow the use of a different time period upon a determination that it is more representative of normal source operation. (a) The average rate shall include fugitive emissions to the extent quantifiable, and emissions associated with startups, shutdowns, and malfunctions. (b) The average rate shall be adjusted downward to exclude any non-compliant emissions that occurred while the source was operating above an emission limitation that was legally enforceable during the consecutive 24-month period. (c) For a regulated new source review pollutant, when a project involves multiple emissions units, only one consecutive 24-month period must be used to determine the baseline actual emissions for the emissions units being changed. A different consecutive 24-month period can be used For each regulated new source review pollutant. (d) The average rate shall not be based on any consecutive 24-month period for which there is inadequate information for determining annual emissions, in tons per year, and for adjusting this amount if required by Subparagraph (b) of this paragraph. (2) For an existing emissions unit (other than an electric utility steam generating unit), baseline actual emissions means the average rate, in tons per year, at which the emissions unit actually emitted the pollutant during any consecutive 24-month period selected by the owner or operator within the 10-year period immediately preceding either the date the owner or operator begins actual construction of the project, or the date a complete permit application is received by the department for a permit required either under this part or under a plan approved by the administrator, whichever is earlier, except that the 10-yea r period shall not include any period earlier than November 15, 1990. (a) The average rate shall include fugitive emissions to the extent quantifiable, and emissions associated with startups, shutdowns, and malfunctions. (b) The average rate shall be adjusted downward to exclude any non-compliant emissions that occurred while the source was operating above an emission limitation that was legally enforceable during the consecutive 24-month period. (c) The average rate shall be adjusted downward to exclude any emissions that would have exceeded an emission limitation with which the major stationary source must currently comply, had such major stationary source been required to comply with such limitations during the consecutive 24-month period. However, if an emission limitation is part of a maximum achievable control technology standard that the administrator proposed or promulgated under 40 CFR Part 63, the baseline actual emissions need only be adjusted if the state has taken credit for such emissions reductions in an attainment demonstration or maintenance plan consistent with the requirements of 40 CFR 51.165(a)(3)(ii)(G). (d) For a regulated new source review pollutant , when a project involves multiple emissions units, only one consecutive 24-month period must be used to determine the baseline actual emissions for the emissions units being changed. A different consecutive 24-month period can be used for each regulated new source review pollutant. (e) The average rate shall not be based on any consecutive 24-month period for which there is inadequate information for determining annual emissions, in tons per year, and for adjusting this amount if required by Subparagraphs (b) and (c) of this paragraph.

### 20.2.74 NMAC 3 (3) For a new emissions unit, the baseline actual emissions for purposes of determining the emissions increase that will result from the initial construction and operation of such unit shall equal zero; and thereafter, for all other purposes, shall equal the unit's potential to emit. (4) For a PAL for a stationary source, the baseline actual emissions shall be calculated for existing electric utility steam generating units in accordance with the procedures contained in Paragraph (1) of this subsection, for other existing emissions units in accordance with the procedures contained in Paragraph (2) of this subsection, and for a new emissions unit in accordance with the procedures contained inParagraph (3) of this subsection. H. "Baseline area" means all lands designated as attainment or unclassifiable in which the major source or major modification would construct or would have an air quality impact equal to or greater than one microgram per cubic meter (annual average) of the pollutant for which the minor source baseline date is established. The major source or major modification establishes the minor source baseline date (see the definition "minor source baseline date" in this part). Lands are designated as attainment or unclassifiable under Section 107(d)(1)(D) or (E) of the act within each federal air quality control region in the state of New Mexico. Any baseline area established originally for TSP (total suspended particulates) incrementsshall remain in effect and shall apply for purposes of determining the amount of available PM-10 increments. A TSP baseline area shall not remain in effect if the department rescinds the corresponding minor source baseline date (see "minor source baseline date" in this part). I. "Baseline concentration" means that ambient concentration level that exists in the baseline area at the time of the applicable minor source baseline date. (1) A baseline concentration is determined for each pollutant for which a minor source baseline date is established and shall include: (a) the actual emissions, as defined in this s ection, representative of so urces in existence on the applicable minor source baseline date, except as provided in Paragraph (2) of this subsection; (b) the allowable emissions of major stationary sources that commenced construction before the major source baseline date, but were not in operation by the applicable minor source baseline date. (2) The following will not be included in the baseline concentration and will affect the applicable maximum allowable increase(s): (a) actual emissions, as defined in this section, from any major stationary source on which construction commenced after the major source baseline date; and (b) actual emissions increases and decreases, as defined in Subsection B of this section, at any stationary source occurring after the minor source baseline date. J. "Begin actual construction" means, in general, initiation of physical onsite construction activities on an emissions unit which are of a permanent nature. Such activities include, but are not limited to, installation of building supports and foundations, laying underground pipework and construction of permanent storage structures. With respect to a change in method of operations, this term refers to those on-site activities other than preparatory activities which mark the initiation of the change. K. "Best Available Control Technology (BACT)" means an emissions limitation (including a visible emission standard) based on the maximum degree of reduction for each regulated pollutant which would be emitted from any proposed major stationary source or major modification, which the secretary determines is achievable on a case-by-case basis. This determination w ill take into account energy, environmental, and economic impacts and other costs. The determination must be achievable for such source or modification through application of production processes or available methods, systems, and techniques, including fuel cleaning, clean fuels, or treatment or innovative fuel combustion techniques for control of such pollutants. In no event shall application of best available control technology result in emissions of any pollutant which would exceed the emissions allowed by any applicable standard under 40 CFR Parts 60 and 61. If the secretary determines that technological or economic limitations on the application of measurement methodology to a particular emissions unit would make the imposition of an emissions standard infeasible, a design, equipment, work practice, operational standard, or combination thereof, may be prescribed instead to satisfythe requirement for the application of best available control technology. Such standard shall, to the degree possible, set forth the emissions reduction achievable by implementation of such design, equipment, work practice, or operation, and shall provide for compliance by means which achieve equivalent results. L. "Building, structure, facility, or installation" means all of the pollutant emitting activities whi ch belong to the same industrial grouping, are located on one or more contiguous or adjacent properties, and are under the control of the same person (or persons under common control). Pollutant-emitting activities shall be considered as part of the same industrial grouping if they belong to the same "major group" (i.e., which have the same first two digit code) as described in the standard industrial classification (SIC) manual, 1972, as amended by

### 20.2.74 NMAC 4 the 1977 supplement (U. S. government printing office stock numbers 4101-0066 and 003-005-00176-0, respectively) or any superseding SIC manual. M. "Class I federal area" means any federal land that is classified or reclassified as "class I" as described in 20.2.74.108 NMAC. N. "Commence" means, as applied to construction of a major stationary source or major modification, that the owner or operator has all necessary preconstruction approvals or permits and has: (1) Begun, or caused to begin, a continuous program of actual on-site construction of the source, to be completed within a reasonable time; or (2) Entered into binding agreements or contractual obligations, which cannot be cancelled or modified without substantial loss to the owner or operator, to undertake and complete, within a reasonable time, a program of actual construction. O. "Construction" means any physical change or change in the method of operation (including fabrication, erection, installation, demolition, or modification of an emissions unit) that would result in a change in emissions. P. "Continuous emissions monitoring system (CEMS)" means all of the equipment that may be required to meet the data acquisition and availability requirements of this section, to sample, condition (if applicable), analyze, and provide a recordof emissions on a continuous basis. Q. "Continuous emissions rate monitoring system (CERMS)" means the total equipment required for the determination and recording of the pollutant ma ss emissions rate (in terms of mass per unit of time). R. "Continuous parameter monitoring system (CPMS)" means all of the equipment necessary to meet the data acquisition and availability requirements of this section, to monitor process and control device operational parameters (for example, control device secondary voltages and electric currents) and other information (for example, gas flow rate, O2 or CO2 concentrations), and to record average operational parameter value(s) on a continuous basis. S. "Department" means the New Mexico environment department. T. "Electric utility steam generating unit" means any steam electric generating unit that is constructed for the purpose of supplying more than one-third of its potential electric output capacity and more than 25 megawatts electrical output to any utility power distribution system for sale. Any steam supplied to a steam distribution system for the purpose of providing steam toa steam-electric generator th at would produce electrical energy for sale is also considered in determining the electrical energy output capacity of the affected facility. U. "Emissions unit" means any part of a stationary source that emits or would have the potential to emit any regulated new source review pollutant and includes an electric utility steam generating unit as defined in this section. For purposes of this section, there are two types of emissions units as described in the following. (1) A new emissions unit is any emissions unit that is (or will be) newly constructed and that has existed for less than 2 years from the date such emissions unit first operated. (2) An existing emissions unit is any emissions unit that does not meet the requirements in Paragraph (1) of this subsection. A replacement unit, as defined in this section, is an existing unit. V. "Federal land manager" means, with respect to any lands in the United States, a federal level cabinet secretary of a federal level department (e.g. interior dept.) with authority over such lands. W. "Federally enforceable" means all limitations and conditions which are enforceable by the administrator, including: (1) those requirements developed pursuant to 40 CFR Parts 60 and 61; (2) requirements within any applicable state implementation plan; (3) any permit requirements established pursuant to 40 CFR 52.21; or (4) under regulations approved pursuant to 40 CFR Part 51, Subpart I including 40 CFR 51.165 and 40 CFR 51.166. X. "Fugitive emissions" means those emissions which could not reasonably pass through a stack, chimney, vent, or other functionally equivalent opening. Y. "High terrain" means any area having an elevation ninehundred (900) feet or more above the base of a source's stack. Z. "Indian governing body" means the governing body of any tribe, band, or group of Indians subject to the jurisdiction of the United States and recognized by the United States as possessing power of selfgovernment. AA. "Innovative Co ntrol Technology" means any system of air pollution control that has not been adequately demonstrated in practice. But such system would have a substantial likelihood of achieving greater

### 20.2.74 NMAC 5 continuous emissions reduction than any control system in current practice or achieving at least comparable reductions at lower cost in terms of energy, economics, or non-air quality environmental impacts. AB. "Low terrain" means any area other than high terrain. AC. "Lowest achievable emission rate" means, for any source, the morestringent rate of emissions based on the following: (1) the most stringent emissions limitation which is contained in the implementation plan of any state for such class or category of stationary source, unless the owner or operator of the proposed stationary source demonstrates that such limitations are not achievable; or (2) the most stringent emissions limitation which is achieved in practice by such class or category of stationary source; this limitation, when applied to a modification, means the lowest achievable emissions rate for the new or modified emissions units within the stationary source. In no event shall the application of this term permit a proposed new or modified stationary source to emit any pollutant in excess of the amount allowable under an applicable new source standard of performance. AD. "Major modification" means any physical change in or ch ange in the method of operation of a major stationary source that would result in: a significant emissions increase (as defined in of this section) of a regulated new source review pollutant (as defined in this section); and a significant net emissions increase of that pollutant from the major stationary source. Any significant emissions increase (as defined in this section) from any emissions units or net emissions increase (as defined in this section) at a major stationarysource that is significant for volatile organic compounds or nitrogen oxides shall be considered significant for ozone. (1) A physical change or change in the method of operation shall not include: (a) routine maintenance, repair, and replacement; (b) use of an alternative fuel or raw materialby reason of an order under Section 2 (a) and (b) of the Energy Supply and Environmental Coordination Act of 1974 (or any superseding legislation) or by reason of a natural gas curtailment plan pursuant to the Federal Power Act; (c) use of an alternative fuel by reason of an order or rule under Section 125 of the act; (d) use of an alternative fuel at a steam generating unit to the extent that the fuel is generated from municipal solid waste; (e) use of an alternative fuel or raw material by a stationary source which: (i) the source was capable of accommodating before January 6, 1975, unless such change would be prohibited under any federally enforceable permit condition which was established after January 6, 1975 pursuant to 40 CFR 52.21 or under regulations approved pursuant to 40 CFR 51.165 or 40 CFR 51.166; or (ii) the source is approved to use under any permit issued under 40 CFR 52.21 or under regulations approved pursuant to 40 CFR 51.166; (f) an increase in the hours of operation or in the production rate, unless such change would be prohibited under any federally enforceable permit which was established after January 6, 1975, pursuant to 40 CFR 52.21 or under regulations approved pursuant to 40 CFR 51.165 or 40 CFR 51.166; (g) any change in ownership at a stationary source; (h) the installation, operation, cessation, or removal of a temporary clean coal technology demonstration project, provided that the project complies with: (i) the state implementation plan for the state in which the project is located; and (ii) other requirements necessary to attain and maintain the national ambient air quality standards during the project and after it is terminated. (i) the installation or operation of a permanent clean coal technology demonstration project that constitutes repowering, provided that the project does not result in an increase in the potential to emit of any
regulatedpollutant emitted by the unit; this exemption shall apply on a pollutant-by-pollutant basis; (j) the reactivation of a very clean co al-fired electric utility steam generating unit. (2) This definition shall not apply with respect to a particular regulated new source review pollutant when the major stationary source is complying with the requirements under 20.2.74.320 NMAC for a PAL for that pollutant. Instead, the definition at Paragraph (8) of Subsection B of 20.2.74.320 NMAC shall apply. AE. "Major source baseline date" means: (1) in the case of particulate matter and sulfur dioxide, January 6, 1975; and (2) in the case of nitrogen dioxide, February 8, 1988. AF. "Major stationary source" means the following. (1) Any stationary source listed in table 1 (20.2.74.501 NMAC) which emits, or has the potential to emit, emissions equal to or greater than one hundred (100) tons per year of any regulated new source review pollutant.

### 20.2.74 NMAC 6 (2) Any stationary source not listed in table 1 (20.2.74.501 NMAC) and which emits or has the potential to emit two hundred fifty (250) tons per year or more of any regulated new source review pollutant. (3) Any physical change that would occur at a stationary source not otherwise qualifying under Paragraphs (1) or (2) of this subsection if the change would constitute a major stationary source by itself. (4) A major source that is major for volatile organic compounds or nitrogen oxides shall be considered major for ozone. (5) The fugitive emissions of a stationary source shall not be included in determining for any of the purposes of this section whether it is a major stationary source, unless the source belongs to one of the stationary source categories found in Table 1 (20.2.74.501 NMAC) or any other stationary source category which, as of August 7, 1980, is being regulated under Section 111 or 112 of the act. AG. "Mandatory class I federal area" means any area identified in the Code of Federal Regulations (CFR), 40 CFR Part 81, Subpart D. See 20.2.74.108 NMAC for a list of these areas in New Mexico. AH. "Minor source baseline date" means the earliest date after the trigger date on which the owner or operator of a major stationary source or major modification subject to 40 CFR 52.21 or to this part submits a complete application under the relevant regulations. (1) The trigger date is: (a) in the case of particulate matter and sulfur dioxide, August 7, 1977; and (b) in the case of nitrogen dioxide, February 8, 1988. (2) Any minor source baseline date established originally for the TSP (total suspended particulates) increments shall remain in effect and shall apply for purposes of determining the amount of available PM-10 increments. The department may rescind any TSP minor source baseline date where it can be shown, to the department 's satisfaction, that the emissions increase from the major stationary source, or the net emissions increase from the major modification, responsible for triggering that date, did not result in a significant amount of PM-10 emissions. AI. "Natural conditions" includes naturally occurring phenomena that reduce visibility as measured in terms of visual range, contrast or coloration. AJ. "Necessary preconstruction approvals or permits" means those permits or approvals required under federal air quality control laws and regulations and those air quality control laws and regulations which are part of the New Mexico state implementation plan. AK. "Net emissions increase" means, with respect to any regulated new source review pollutant emitted by a major stationary source, the following. (1) The amount by which the sum of the following exceeds zero. (a) The increase in emissions from a particular physical change or ch ange in the method of operation at a stationary source as calculated pursuant to Subsection D of 20.2.74.200 NMAC. (b) Any other increases and decreases in actual emissions at the major stationary source that are contemporaneous with the particular change and are otherwise creditable. Baseline actual emissions for calculating increases and decreases under this paragraph shall be determined as provided in Subsection G, except that Subparagraph (c) of Paragraph (1) and Subparagraph (d) of Paragraph (2) of Subsection G of this section shall not apply. (2) An increase or decrease in actual emissionsis contemporaneous with the increase from the particular change only if it occurs within the time period five years prior to the commencement of construction on the particular change and the date that the increase from the particular change occurs. (3) An increase or decrease in actual emissions is creditable only if: (a) it occurs within the time period five years prior to the commencement of construction on the particular change and the date that the increase from the particular change occurs; and (b) the department has not relied on it in issuing a permit for the source under regulations approved pursuant to this section, which permit is in effect when the increase in actual emissions from the particular change occurs. (4) An increase or decrease in actual emissions of sulfur dioxide, particulate matter, or nitrogen oxides that occurs before the applicable minor source baseline date is creditable only if it is required to be considered in calculating the amount of maximum allowable increases remaining available. (5) An increase in actual emissions is creditable only to the extent that the new level of actual emissions exceeds the old level. (6) A decrease in actual emissions is creditable only to the extent that: (a) the old level of actual emissions or the old level of allowable emissions, whichever is lower, exceeds the new level of actual emissions;

### 20.2.74 NMAC 7 (b) it is enforceable as a practical matter at and after the time that actual construction on the particular change begins; and (c) it has approximately the same qualitative significance for public health and welfare as that attributed to the increase from the particular change. (7) An increase that results from a physical ch ange at a source occurs wh en the emissions unit on which construction occurred becomes operational and beginsto emit a particular po llutant. Any replacement unit that requires shakedown becomes operational only after a reasonable shakedown period, not to exceed 180 days. (8) Paragraph (2) of Subsection B of this section shall not apply for determining creditable increases and decreases. AL. "Nonattainment area" means an area which has been designated under Section 107 of the Federal Clean Air Act as nonattainment for one or more of the national ambient air quality standards by EPA. AM. "Portable stationary source" means a source which can be relocated to another operating site with limited dismantling and reassembly. AN. "Potential to emit" means the maximum capacity of a stationary source to emit a pollutant under its physical and operational design. Any physical or operational limitation on the capacity of the source to emit a pollutant, including air pollutant control equipment and restrictions on hours of operation or on the type or amount of material combusted, stored, or processed, shall be treate d as part of its design if the limitations or the effect it would have on emissions is federally enforceable. Secondary emissions do not count in determining the potential to emit of a stationary source. AO. "Predictive emissions monitoring system (PEMS)" means all of the equipment necessary to monitor process and control device operational parameters (for example, control device secondary voltages and electric currents) and other information (for example, gas flow rate, O2 or CO2 concentrations), and calculate and record the mass emissions rate (for ex ample, lb/hr) on a continuous basis. AP. "Project" means a physical change in, or change inmethod of operation of, an existing major stationary source. AQ. "Projected actual emissions" means the maximum annual rate, in tons per year, at which an existing emissions unit is projected to emit a regulated new source review pollutant in any one of the 5 years (12- month period) following the date the unit resumes regular operation after the project, or in any one of the 10 years following that date, if the project involves increasing the emissions unit's design capacity or its potential to emit that regulated new source review pollutant, and full utilization of the unit would result in a significant emissions increase, or a significant net emissions increase at the major stationary source. In determining the projected actual emissions (before beginning actual construction), the owner or operator of the major stationary source: (1) shall consider all relevant information, including but not limited to, historical operational data, the company's own representations, the company's expected bus iness activity and the company's highest projections of business activity, the company's filings with the state or federal regulatory authorities, and compliance plans under the approved plan; and (2) shall include fugitive emissions to the extent quantifiable and emissions associated with startups, shutdowns, and malfunctions; and (3) shall exclude, in calculating any increase in emissions that results from the particular project, that portion of the unit's emissions following the project that an existing unit could have accommodated during the consecutive 24-month period used to establish the baseline actual emissions under Subsection G of this section and that are also unrelated to the particular project, including any increased utilization due to product demand growth;

or, (4) in lieu of using the method set out in Paragraphs (1) through (3) of this subsection, may elect to use the emissions unit's potential to emit, in tons per year, as defined in Subsection AQ of this section. AR. "Regulated new so urce review pollutant" , for purposes of this part, means the following: (1) any pollutant for which a national ambient air quality standard has been promulgated and any constituents or precursors for such pollutants identified bythe administrator (e.g., volatile organic compounds and nitrogen oxides are precursors for ozone); (2) any pollutant that is subject to any standard promulgated under Section 111 of the act; (3) any class I or II substance subject to a standard promulgated under or established by title VI of the act; or (4) any pollutant that otherwis e is subject to regulation under the act; except that any or all hazardous air pollutants either listed in Section 112 of the act or added to the list pursuant to Section 112(b)(2) of the act, which have not been delisted pursuant to Section 112(b)(3) of the act, are not regulated new source review pollutants

### 20.2.74 NMAC 8 unless the listed hazardous air pollutant is also regulated as a constituent or precursor of a general pollutant listed under Section 108 of the act. AS. "Replacement unit" means an emission unit for which all of the following criteria are met. No creditable emission reductions shall begenerated from shutting down the existing emissions unit that is replaced. (1) The emissions unit is a reconstructed unit within the meaning of 40 CFR 60.15(b)(1), or the emissions unit completely takes the place of an existing emissions unit. (2) The emissions unit is identical to or functionally equivalent to the replaced emissions unit. (3) The replacement unit does not change the basic design parameter(s) of the process unit. (4) The replaced emissions unit is permanently removed from the major stationary source, otherwise permanently disabled, or permanently barred from operation bya permit that is enforceable as a practical matter. If the replaced emissions unit is brought back into operation, it shall constitute a new emissions unit. AT. "Secondary emissions" means emissions which occur as a result of the construction or operation of a major stationary source or major modification, but do not come from the major stationary source or major modification itself. For the purpose of this section, secondary emissions must be specific, well defined, quantifiable, and impact the same general areas as the stationary source or modification which causes the secondary emissions. Secondary emissions include emissions from any offsite supp ort facility which would not be constructed or increase its emissions except as a result of the construction or operation of the major stationary source or major modification. Secondary emissions do not include any emissions which come directly from a mobile source, such as emissions from the tailpipe of a motor vehicle, from a train, or from a vessel. AU. "Secretary" means the cabinet level secretary of the New Mexico environment department or his or her successor. AV. "Significant" means in reference to a net emissions increase or the potential of a source to emit air pollutants, a rate of emission that would equal or ex ceed any of the rates listed in table 2 (20.2.74.502 NMAC). AW. "Significant emissions increase" means, for a regulated new source review pollutant, an increase in emissions that is significant (as defined in Subsection AV of this section) for that pollutant. AX. "Stationary source" means any building, structure, facility, or installation which emits, or may emit, any regulated new source review pollutant. AY. "Temporary source" means a stationary source which changes its location or ceases to exist within two years from the date of initial start of operations. AZ. "Visibility impairment" means any humanly perceptible change in visibility (visual range, contrast, coloration) from that which would have existed under natural conditions. BA. "Volatile organic compound (VOC)" means any organic compound which participates in atmospheric photochemical reactions; that is, any organic compound other than those which the administrator designates as having negligible photochemical reactivity. [07/20/95; 01/01/00; 20.2.74.7 NMAC - Rn, 20 NMAC 2.74.107, 10/31/02; A, 1/22/06; A, 8/31/09]

20.2.74.8 AMENDMENT AND SUPERSESSION OF PRIOR REGULATIONS: This Part amends and supersedes Air Quality Control Regulation (AQCR) 707, which was originally filed on February 14, 1984, and subsequently refiled on July 15, 1986; August 1, 1988; and May 29, 1990. All references to AQCR 707 in any other rule shall be understood as a reference to this Part. [07/20/95; 20.2.74.8 NMAC - Rn, 20 NMAC 2.74.106, 10/31/02]

20.2.74.9 DOCUMENTS: Documents cited in this Part may beviewed at the New Mexico Environment Department, Air Quality Bureau, Harold Runnels Building, 1190 St. Francis Drive, Santa Fe, NM 87503 [2048 Galisteo St., Santa Fe, NM 87505]. [07/20/95; 20.2.74.9 NMAC - Rn, 20 NMAC 2.74.109, 10/31/02]

20.2.74.10 SEVERABILITY.If any provision of this part, or the application of such provision to any person or circumstance, is held invalid, the remainder of this part, or the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby. [20.2.74.10 NMAC - N, 1/22/06]

20.2.74.11 CONSTRUCTION.This part shall be liberally construed to carry out its purpose. [2 0. 2.74.11 NMAC - N, 1/22/06]

### 20.2.74 NMAC 9 20.2.74.12 SAVINGS CLAUSE.Repeal or supersession of prior versions of this part shall not affect any administrative or judicial action initiated under those prior versions. [20.2.74.12 NMAC - N, 1/22/06]

20.2.74.13 COMPLIANCE WITH OTHER REGULATIONS.Compliance with this part does not relieve a person from the responsibility to comply with any other applicable federal, state, or local regulations. [20.2.74.13 NMAC - N, 1/22/06]

20.2.74.14 LIMITATION OF DEFENSE. The existence of a valid permit under this part shall not constitute a defense to a violation of any section of this part, except the requirement for obtaining a permit. [20.2.74.14 NMAC - N, 1/22/06]

20.2.74.15 to 20.2.74.107[RESERVED]

20.2.74.108 RESTRICTIONS ON AREA CLASSIFICATIONS: A.Mandatory Class I Federal areas: (1) The following areas which were in existence on August 7, 1977, shall be mandatory Class I Federal areas and may not be redesignated: (a) International parks (all of them); (b) National wilderness areas which exceed 5,000 acres in size; (c) National memorial parks which exceed 5,000 acres in size; and (d) National parks which exceed 6,000 acres in size. (2) Specifically for New Mexico, these areas are: (a) Bandelier Wilderness, administered by NPS; (b) Bosque del Apache Wilderness, administered by NFWS; (c) Carlsbad Caverns National Park, administered by NPS; (d) Gila Wilderness, administered by NFS; (e) Pecos Wilderness, administered by NFS; (f) Salt Creek Wilderness, administered by NFWS; (g) San Pedro Parks Wilderness, administered by NFS; (h) Wheeler Peak Wilderness, administered by NFS; and (i) White Mountain Wilderness, administered by NFS; where: NPS = National Park Service, NFWS = National Fish and Wildlife Serv ice, NFS = National Forest Service. B.Areas which may be redesignated only as Class I or Class II: (1) The following areas may be redesignated only as Class I or II: (a) an area, as of August 7, 1977, which exceeds 10,000 acres in size and is a national monument, national primitive area, national preserve, national recreational area, national wild and scenic river, national wildlife refuge; or (b) a national park or national wilderness area established after August 7, 1977 which exceeds 10,000 acres in size. (2) Specifically for New Mexico, these areas include (but are not necessarily limited to): (a) Apache Kid Wilderness, administered by NFS; (b) Bandelier National Monument, administered by NPS; (c) Bitter Lake National Wildlife Refuge, administered by NFWS; (d) Blue Range Wilderness, administered by NFS; (e) Bosque del Apache National Wildlife Refuge, administered by NFWS; (f) Capitan Mountains Wilderness, administered by NFS; (g) Cebolla Wilderness, administered by BLM; (h) Chama River Canyon Wilderness, administered by NFS; (i) Cruces Basin Wilderness, administered by NFS; (j) De-na-zin Wilderness, administered by BLM; (k) El Malpais National Monument, administered by NPS; (l) Latir Peak Wilderness, administered by NFS; (m)Manzano Mountain Wilderness, administered by NFS; (n) San Andres National Wildlife Refuge, administered by NFWS; (o) Sandia Mountain Wilderness, administered by NFS;

### 20.2.74 NMAC 10 (p) Sevilleta National Wildlife Refuge, administered by NFWS; (q) West Malpais Wilderness, administered by BLM; (r) White Sands National Monument, administered by NPS; and (s) Withington Wilderness, administered by NFS; where: NFS = National Forest Service, NPS = National Park Service, NFWS = National Fish and Wildlife Service, BLM = Bureau of Land Management. [07/20/95; 20.2.74.108 NMAC - Rn, 20 NMAC 2.74.108, 10/31/02]

20.2.74.109 to 20.2.74.199[RESERVED]

20.2.74.200 APPLICABILITY. A.The requirements of this part apply to the construction of any new major stationary source (as defined in 20.2.74.7 NMAC) or any project at an exis ting major stationary source in an area designated as attainment or unclassifiable. B.The requirements of Sections 300 through 306, 400 and 403 of this part apply to the construction of any new major stationary source or the major modification of any existing major stationary source, except as this part otherwise provides. C.No new major stationary source or major modification to which the requirements of Subsections A, B, C and D of 20.2.74.300 NMAC, and Sections 301, 302, 303, 304, 305, 306, 400 and 403 of this part apply shall begin actual construction without a permit that states that the major stationary source or major modification will meet those requirements. D.Applicability procedures. (1) Except as otherwise provided in Subsections E and F of this section, and consistent with the definition of major modification contained in 20.2.74.7 NMAC, a project is a major modification for a regulated new source review pollutant if it causes two types of emi ssions increases - a significant emissions increase (as defined in 20.2.74.7 NMAC), and a significant net emissions increase (as defined in Subsections AK and AV of 20.2.74.7 NMAC). The project is not a major modification if it does not cause a significant emissions increase. If the project causes a significant emissions increase, then the project is a major modification only if it also results in a significant net emissions increase. (2) The procedure for calculating (before beginning actual construction) whether a significant emissions increase (i.e., the first step of the process) will occur depends upon the type of emissions units being modified, according to Paragraphs (3) through (4) of this subsection. The procedure for calculating (before beginning actual construction) whether a significant net emi ssions increase will occur at the major stationary source (i.e., the second step of the process) is contained in the definition in 20.2.74.7 NMAC. Regardless of any such preconstruction projections, a major modification results if the project causes a significant emissions increase and a significant net emissions increase. (3) Actual-to-projected-actual applicability test for projects that involve existing emissions units. A significant emissions increase of a regulated new source revi ew pollutant is projected to occur if the sum of the difference between the projected actual emissions (as define d in 20.2.74.7 NMAC) and th e baseline actual emissions (as defined in Paragraphs (1) and (2) of Subsection G of 20.2.74.7 NMAC) for each existing emissions unit, equals or exceeds the significant amount for that pollutant (as defined in 20.2.74.7 NMAC). (4) Actual-to-potential test for projects that involve construction of a new emissions unit(s). A significant emissions increase of a regulated new source revi ew pollutant is projected to occur if the sum of the difference between the potential to emit (as defined in 20.2.74.7 NMAC) from each new emissions unit following completion of the project and the baseline actual emissions (as defined in Paragraph (3) of Subsection G of 20.2.74.7 NMAC) of these units before the project equals or exceeds the significant amount for that pollutant (as defined in 20.2.74.7 NMAC). (5) Hybrid test for projects that involve multiple types of emissions units. A significant emissions increase of a regulated NSR pollutant isprojected to occur if the sum of the emissions increases for each emissions unit, using the method specified in Paragraphs (3) and (4) of this subsection as applicable with respect to each emissions unit, for each type of emi ssions unit equals or exceeds the signif icant amount for that pollutant. For example, if a project involv es both an existing emissions unit and a new emissions unit, the projected increase is determined by summing the values determined using the method specified in Paragraph (3) of this subsection for the existing unit and determined using the method specified in Paragraph (4) of this subsection for the new unit. E.For any major stationary source for a PAL for a regulated new source review pollutant, the major stationary source shall comply with requirements under 20.2.74.320 NMAC. [ 07/20/95; 20.2.74.200 NMAC - Rn, 20 NMAC 2.74.200, 10/31/02; A, 1/22/06]

### 20.2.74 NMAC 11 20.2.74.201 EXEMPTIONS: This Part shall not apply to: A.Each regulated pollutant emitted for which the area the source proposes to locate in is designated as nonattainment; B.Sources or modifications that are part of a nonprofit health or nonprofit educational institution and are approved by the Secretary; C.A portable stationary source which has previously received a permit pursuant to this Part; and (1) The owner or operator proposes to relocatethe source, and emissions from the source at the new location will be temporary; and (2) The emissions from the source would not exceed its allowable emission rate; and (3) The emissions from the source would not im pact any Class I Federal area nor any area where an applicable increment is known to be violated; and (4) Reasonable notice is given to the Department prior to the relocation identifying the proposed new location and probable duration of operation at the new location. Such notice shall be given to the Department not less than ten (10) days in advance of the proposed relocati on unless a different time interval is previously approved by the Department; D.A source or modification that would be major only if fugitive emissions, to the extent they are quantifiable, are considered in calculating the potential toemit or net emissions increase, and the source does not belong to: (1) Any category in Table 1 of this Part (20.2.74.501 NMAC); or (2) Any other stationary source category which as of August 7, 1980 is being regulated under section 111 or 112 of the Act. [07/20/95; 20.2.74.201 NMAC - Rn, 20 NMAC 2.74.201, 10/31/02]

20.2.74.202 to 20.2.74.299[RESERVED]

20.2.74.300 OBLIGATIONS OF OWNERS OR OPERATORS OF SOURCES: A. Any owner or operator who begins actual construction or operates a source or modification without, or not in accordance with, a permit issued under the requirements of this part shall be subject to enforcement action. B.The issuance of a permit does not relieve any person from the responsibility of complying with the provisions of the Air Quality Control Act, sections 74-2-1 to 74-2-17, NMSA 1978; any applicable regulations of the board; and any other requirements under local, state, or federal law. C.Approval to construct shall become invalid if: 1) construction is not commenced within eighteen (18) months after receipt of such approval; 2) if construction is discontinued for a period of eighteen (18) months or more; or 3) if construction is not completed within a reasonable time. For a phased construction project, each phase must commence construction within eighteen (18) months of the projected and approved commencement date. The secretary may extend the eighteen (18) month period upon a satisfactory showing that an extension is justified. D.If a source or modification becomes a major stationary source or major modification solely due to a relaxation in any enforceable limitation (which limitation was established after August 7, 1980), on the capacity of the source or modification otherwise to emit a pollutant, such as a restriction on hours of operation, then this part shall apply to the source or modification as though construction had not yet commenced. E.The following specific provisions apply to projects at existing emissions units at a major stationary source (other than projects at a source with a PAL) in circumstanceswhere the owner or operator elects to use the method specified in Paragraphs (1) through (3) of Subsection AQ of 20.2.74.7 NMAC for calculating projected actual emissions. (1) Before beginning actual construction of the project, the owner or operator shall document and maintain a record of the following information: (a) a description of the project; (b) identification of the emissions unit(s) whose emissions of a regulated new source review pollutant could be affected by the project; and (c) a description of the applicability test used to determine that the project is not a major modification for any regulated new source review pollutant , including the baseline actual emissions, the projected actual emissions, the amount of emissions excluded under Paragraph (3) of Subsection AQ of 20.2.74.7 NMAC and an explanation for why such amount was excluded, and any netting calculations, if applicable.

### 20.2.74 NMAC 12 (2) If the emissions unit is an existing electric utility steam generating unit, before beginning actual construction, the owner or operator shall provide a copy of the information set out in Paragraph (1) of this subsection to the department. Nothing in this paragraph shall be construed to require the owner or operator of such a unit to obtain any determination from the department; however, necessary preconstruction approvals and/or permits must be obtained before beginning actual construction. (3) The owner or operator shall monitor the emissions of any regulated new source review pollutant that could increase as a result of the project and that is emitted by any emissions unit identified in Subparagraph (b) of Paragraph (1) of this subsection; and calculate and maintain a record of the annual emissions, in tons per year on a calendar year basis, for a period of 5 years following resumption of regular operations after the change, or for a period of 10 years following resumption of regular operations after the change if the project increases the design capacity or potential to emit of that regulated new source review pollutant at such emissions unit. (4) If the unit is an existing electric utility steam generating unit, the owner or operator shall submit a report to the department within 60 days after the end of each year during which records must be generated under Subparagraph (c) of Paragraph (1) of this subsection setting out the unit's annual emissions during the calendar year that preceded submission of the report. (5) If the unit is an existing unit other than an electric utility steam generating unit, the owner or operator shall submit a report to the department if the annual emissions, in tons per year, from the project identified in Paragraph (1) of this subsection, exceed the baseline actual emissions (as documented and maintained pursuant to Subparagraph (c) of Paragraph (1) of this subsection) by a significant amount (as defined in 20.2.74.7 NMAC) for that regulated new source review pollutant, and if such emissions differ from the preconstruction projection as documented and maintained pursuant to Subparagraph (c) of Paragraph (1) of this subsection. Such report shall be submitted to the department within 60 days after the end of such year. The report shall contain the following: (a) the name, address and telephone number of the major stationary source; (b) the annual emissions as calculated pursuant to Paragraph (3) of this subsection; and (c) any other information that the owner or operator wishes to include in the report (e.g., an explanation as to why the emissions differ from the preconstruction projection). F.The owner or operator of the source shall make the information required to be documented and maintained pursuant to Subsection E of this section av ailable for review upon request for inspection by the department or the general public pursuant to the requirements contained in 40 CFR 70.4(b)(3)(viii). [07/20/95; 20.2.74.300 NMAC - Rn, 20 NMAC 2.74.300, 10/31/02; A, 1/22/06]

20.2.74.301 SOURCE INFORMATION: The owner or operator of a proposed source or modification shall submit all information necessary to perform any analysis or make any determination required under this Part. A. Information shall include, but is not limited to: (1) A description of the nature, location, design capacity, and typical operating schedule of the source or modification, including specifications and drawings showing the design and plant layout; and (2) A detailed schedule of construction of the source or modification; and (3) A detailed description of the planned system of continuous emission reduction for the source or modification, emission estimates, and other information necessary to determine that Best Available Control Technology will be applied. B.Upon request by the Department, the owner or operator shall also provide information on: (1) The air quality impact of the source or modification, including meteorologic and topographic data necessary to estimate such impact; and (2) The air quality impacts, and the nature and extent of any or all general commercial, residential, industrial, and other growth which has occurred since August 7, 1977 in the area the source or modification would affect. [07/20/95; 20.2.74.301 NMAC - Rn, 20 NMAC 2.74.301, 10/31/02]

20.2.74.302 CONTROL TECHNOLOGY REQUIREMENTS: A. A new major stationary source shall apply Best Available Control Technology for each regulated pollutant that it would have the potential to emit in amounts equal to or greater than the significance levels as listed in Table 2 of this Part (20.2.74.502 NMAC). This requirement applies to each proposed emissions unit or operation that will emit such pollutant. B.A major modification shall apply Best Available Control Technology for each regulated pollutant at the source when a significant net emi ssions increase occurs as defined in this Part. This requirement applies to

### 20.2.74 NMAC 13 each proposed emissions unit or operation where a net emissi ons increase in the pollutant would occur as a result of a physical change or change in the method of operation in the unit. C.For phased construction projects, the determinatio n of Best Available Control Technology shall be reviewed and modified as appropriate at the latest reasonable time but no later than eighteen (18) months prior to commencement of construction of each independent phase of the project. At suchtime, the owner or operator of the applicable stationary source may be required to demonstrate the adequacy of any previous determination of Best Available Control Technology for the source. D.The Department may approve a system of innovative control technology for the major stationary source or major modification if: (1) The proposed control system would not cause or contribute to an unreasonable risk to public health, welfare, or safety in its operation or function; and (2) The owner or operator agrees to achieve a level of continuous emissions reduction equivalent to that which would have been required under Best Available Control Technology by a date specified by the Department. Such date shall not be later than four (4) years from the time of startup or seven (7) years from permit issuance; and (3) The source or modification would meet the requirements of 20.2.74.302 NMAC and 20.2.74.303 NMAC based on the emission rate that the system of innovative control technology would be required to meet on the date specified by the Department; and (4) During the interim period of achieving the permitted emission level, the source or modification would not: (a) Cause or contribute to a violation of an applicable national ambient air quality standard; nor (b) Impact any Class I Federal area; nor (c) Impact any area where an applicab le increment is known to be violated; and (5) All other applicable requirements including those for public participation have been met. E.The Department shall withdraw any approval to employ a system of innovative control technology if: (1) The proposed system fails by the specified date to achieve the required continuous emissions reduction rate; or (2) The proposed system fails before the specified date so as to contribute to an unreasonable risk to public health, welfare, or safety; or (3) The Department decides at any time that the proposed system is unlikely to achieve the required level of control or to protect the public health, welfare, or safety. F.If a source or modification fails to meet the required level of continuous emission reduction within the specified time period or the approv al is withdrawn in accordance with subsection E of 20.2.74.302 NMAC, the Department may allow the source or modification up to an additional three (3) years to meet the requirement for the application of Best Available Control Technology. This shall be accomplished through use of a demonstrated system of control. G.If the owner or operator of a major stationary source or major modification previously issued a permit under this Part applies for an extension (as provided for under subsection C of 20.2.74.300 NMAC), and the new proposed date of construction is greater than eighteen (18) months from the date the permit would become invalid, the determination of Best Available Control Technology shall be reviewed and modified as appropriate before such an extension is granted. At such time, the owner or operator of the applicable stationary source may be required to demonstrate the adequacy of any previous determination of Best Available Control Technology for the

source. H.With respect to PM 10 

### , for the case where PM 10

### emissions cannot be quantified, the Best Available Control Technology limitation may be defined in terms of particulate matter emissions. [07/20/95; 20.2.74.302 NMAC - Rn, 20 NMAC 2.74.302, 10/31/02]

20.2.74.303 AMBIENT IMPACT REQUIREMENTS: A.The requirements of this section shall apply to each pollutant emitted by a new major stationary source or major modification in amounts equal to or greater than those in Table 2 of this Part (20.2.74.502 NMAC). For particulate matter, the source will only be required to perform ambient impact analysis for PM 10

### when the source has the potential to emit significant amounts of PM 10

### (Table 2, 20.2.74.502 NMAC). B.The allowable emission increases from the proposed source or modification, including secondary emissions, in conjunction with all other applicable emissions increases or reductions, including secondary emissions, shall not cause or contribute to air pollution in violation of:

### 20.2.74 NMAC 14 (1) Any National Ambient Air Quality Standard in any location; or (2) Any applicable maximum allowable increase as shown in Table 4 of this Part (20.2.74.504 NMAC) over the baseline concentrations in any area. (3) The owner or operator of the proposed major stationary source or major modification shall demonstrate that neither paragraph (1) nor pa ragraph (2) of 20.2.74.303 NMAC will occur. [07/20/95; 20.2.74.303 NMAC - Rn, 20 NMAC 2.74.303, 10/31/02]

20.2.74.304 ADDITIONAL IMPACT REQUIREMENTS: A.The owner or operator of the proposed major stationary source or major modification shall provide an analysis of the impairment to visibility, soils, and vegetation that would occur as a result of the source or modification and general commercial, residential, indust rial, and other growth asso ciated with the source or modification. The owner or operator need not provide an analysis of the impact on vegetation having no significant commercial or recreational value. The analysis can use data or information available from the Department. B.The owner or operator shall also provide an analys is of the air quality impact projected for the area as a result of general commercial, residential, industrial, and other growth asso ciated with the source or modification. [07/20/95; 20.2.74.304 NMAC - Rn, 20 NMAC 2.74.304, 10/31/02]

20.2.74.305 AMBIENT AIR QUALITY MODELING: All estimates of ambient concentrations required by this Part shall be based on applicable air quality models, data bases, and other requirements as specified in EPA's Guideline on Air Quality Models (EPA-450/2-78-027R, July, 1986), its revisions, or any superseding EPA document, and approved by the Department. Where an air quality impact model specified in the Guideline on Air Quality Models is inappropriate, the model may be modified or another model substituted. Any substitution or modification of a model must be approved by the Department. Notification shall be given by the Department of such a substitution or modification and the opportunity for public comment provided for in fulfilling the public notice requirements in subsection B of 20.2.74.400 NMAC. The Department will seek EPA approval of such substitutions or modifications. [07/20/95; 20.2.74.305 NMAC - Rn, 20 NMAC 2.74.305, 10/31/02]

20.2.74.306 MONITORING REQUIREMENTS: A.Any application for a permit under this Part shall contain an analysis of ambient air quality. Air quality data can be that measured by the applicant or that available from a government agency in the area affected by the major stationary source or major modification. The analysis shall contain the following: (1) For a major stationary source, each pollutant for which the potential to emit is equal to or greater than the significant emission rates as listed in Table 2 of this Part (20.2.74.502 NMAC); or (2) For a major modification, each pollutant that would result in a significant net emission increase. B.If no National Ambient Air Quality Standard (NAAQS) for a pollutant exists, and there is an acceptable method for monitoringthat pollutant, the analysis shall contain such air quality monitoring data as the Department determines is necessary to assess ambient air quality for that pollutant. C.Continuous air quality monitoring data shall be required for all pollutants for which a National Ambient Air Quality Standard exists. Such data shall be submitted to the Department for at least the one (1) year period prior to receipt of the permit appli cation. The Department has the discretion to: (1) Determine that a complete and adequate analysis can be accomplished with monitoring data gathered over a period shorter than one year but not less than four months; or (2) Determine that existing air quality monitoring data is representative of air quality in the affected area and accept such data in lieu of additional monitoring by the applicant. D.Ozone monitoring shall be performed if monitoring data is required for volatile organic compounds. Post construction ozone monitoring data may be submitted in lieu of providing preconstruction data as required under subsection C of 20.2.74.306 NMAC if the owner or operator of the proposed major source or major modification satisfies all the provisions of 40 CFR Part 51, Appendix S, Section IV. E.The Department may require monitoring of vi sib ility inany Class I Federal area where the Department determines that an adverse impact on visibility may occur due primarily to the operations of the proposed new source or modification. Such monitoring shall be conducted following procedures approved by the Department and subject to the following: (1) Visibility monitoring methods specified by the Department shall be reasonably available and not require any research and development; and

### 20.2.74 NMAC 15 (2) The cost of visibility monitoring required by the Department shall not exceed fifty percent (50%) of the cost of ambient monitoring required by this Part. If ambient monitoring is not required, the cost shall be estimated as if it were required for each pollutant to which this Part applies. (3) Both preconstruction and post construction visibility monitoring may be required. In each case, the duration of such monitoring shall not exceed one (1) year. F.The owner or operator of a major stationary source or major modification shall conduct post construction ambient monitoring as the Department determin es is necessary to validate attainment of ambient air quality standards and to assure that increments are not exceeded. G.The owner or operator of a major stationarysource or major modification shall meet the requirements of 40 CFR 58, Appendix B during the operation of monitoring stations for purposes of satisfying the requirements of this section. H.The Department has the discretion to exempt a stationary source or modification from the requirements of this section with respect to monitoring fo r a particular pollutant if the emissions of the pollutant from the new source or the net emissions increase of the pollutant from the modification would cause, in any area, increases in ambient concentrations less than the levelslisted in Table 3 of this Part (20.2.74.503 NMAC). I.The Department shall exempt a stationary source or modification from the requirements of this section with respect to preconstruction monitoring for a particular pollutant if: (1) For ozone, volatile organic compound emissions are less than one hundred (100) tons per year; or (2) The air pollutant is not a regulated pollutant; or (3) The existing ambient concentrations of the pollutant in the area affected by the source or modification are less than the concentrations listed in Table 3 of this Part (20.2.74.503 NMAC). [07/20/95; 20.2.74.306 NMAC - Rn, 20 NMAC 2.74.306, 10/31/02]

20.2.74.307 TEMPORARY SOURCE EXEMPTIONS: The requirements of 20.2.74.304 NMAC and 20.2.74.306 NMAC shall not apply to a temporary source subj ect to this Part for a given pollutant if the allowable emissions of such pollutant would not impact any Class I Fe deral area or any areas where an applicable increment is violated and would be temporary. [07/20/95; 20.2.74.307 NMAC - Rn, 20 NMAC 2.74.307, 10/31/02]

20.2.74.308 to 20.2.74.319[RESERVED]

20.2.74.320 ACTUALS PLANTWIDE APPLICABILITY LIMITS (PALs) A. Applicability. (1) The department may approve the use of an actuals PAL for any existing major stationary source if the PAL meets the requirements in this section. The term "PAL" shall mean "actuals PAL" throughout this section. (2) Any physical change in or change in the method of operation of a major stationary source that maintains its total source-wide emissions below the PAL level, meets the requirements of this section, and complies with the PAL permit: (a) is not a major modification for the PAL pollutant; (b) does not have to be approved through the requirements of this part; and (c) is not subject to the provisions in S ubsection D of 20.2.74.300 NMAC (restrictions on relaxing enforceable emission limitations that the major stationary source used to avoid applicability of the major new source review program). (3) Except as provided under Subparagraph (c) of Paragraph (1) of this subsection, a major stationary source shall continue to comply with all applicable federal or state requirements, emission limitations, and work practice requirements that were established prior to the effective date of the PAL. B. Definitions applicable to this section. (1) Actuals PAL for a major stationary source means a PAL based on the baseline actual emissions (as defined in 20.2.74.7 NMAC) of all emissions units (as defined in 20.2.74.7 NMAC) at the source, that emit or have the potential to emit the PAL pollutant. (2) Allowable emissions means "allowable emissions" as defined in 20.2.74.7 NMAC, except as this definition is modified in accordance with the following. (a) The allowable emissions for any emissions unit shall be calculated considering any emission limitations that are enforceable as a practicalmatter on the emissions unit's potential to emit. (b) An emissions unit's potential to emit shall be determined using the definition in 20.2.74.7 NMAC, except that the words "or enforceable as a practical matter" shouldbe added after "federally enforceable".

### 20.2.74 NMAC 16 (3) Small emissions unit means an emissions unit that emits or has the potential to emit the PAL pollutant in an amount less than the significant level for that PAL pollutant, as defined in Subsection AV of 20.2.74.7 NMAC or in the act, whichever is lower. (4) Major emissions unit means: (a) any emissions unit that emits or has the potential to emit 100 tons per year or more of the PAL pollutant in an attainment area; or (b) any emissions unit that emits or has the potential to emit the PAL pollutant in an amount that is equal to or greater than the major source threshold for the PAL pollutant as defined by the act for nonattainment areas. For example, in accordance with the definition of major stationary source in Section 182(c) of the act, an emissions unit would be a major emissions unit for VOC if the emissions unit is located in a serious ozone nonattainment area and it emits or has the potential to emit 50 or more tons of VOC per year. (5) Plantwide applicability limitation (PAL) means an emission limitation expressed in tons per year, for a pollutant at a major stationary source, that is enforceable as a practicalmatter and established source-wide in accordance with this section. (6) PAL effective date generally means the dateof issuance of the PAL permit. However, the PAL effective date for an increa sed PAL is the date any emissions unit that is part of the PAL major modification becomes operational and begins to emit the PAL pollutant. (7) PAL effective period means the period beginning with the PAL effective date and ending 10 years later. (8) PAL major modification means, notwithstanding the definitions for major modification and net emissions increase in 20.2.74.7 NMAC, any physical change in or change in the method of operation of the PAL source that causes it to emit the PAL pollutant at a level equal to or greater than the PAL. (9) PAL permit means the major new source review permit, the minor new source review permit, or the state operating permit under a program that is approved into the plan, or the title V permit issued by the department that establishes a PAL for a major stationary source. (10)PAL pollutant means the pollutant for which a PAL is established at a major stationary source. (11)Significant emissions unit means an emissions unit that emits or has the potential to emit a PAL pollutant in an amount that is equal to or greater than the significant level (as defined in Subsection AV of 20.2.74.7 NMAC or in the act, whichever is lower) for that PAL pollutant, but less than the amount that would qualify the unit as a major emissions unit as defined in Paragraph (4) of this subsection. C. Permit application requirements.As part of a permit application requesting a PAL, the owner or operator of a major stationary source shall submit the following information to the department for approval. (1) A list of all emissions units at the source desi gnated as small, significant or major based on their potential to emit. In addition, the owner or operator of the source shall indicate which, if any, federal or state applicable requirements, emission limitations , or work practices apply to each unit. (2) Calculations of the baseline actual emissions (with supporting documentation). Baseline actual emissions are to include emissions associ ated not only with operation of the unit, but also emissions associated with startup, shutdown, and malfunction. (3) The calculation procedures that the major stationary source owner or operator proposes to use to convert the monitoring system data to monthly emissions and annual emissions based on a 12-month rolling total for each month as required by Subsection M of this section. D. General requirements for establishing PALs. (1) The department may establish a PAL at a major stationary source, provided that at a minimum, the following requirements are met. (a) The PAL shall impose an annual emission limitation in tons per year, that is enforceable as a practical matter, for the entire major stationary source. For each month during the PAL effective period after the first 12 months of establishing a PAL, the major stationary source owner or operator shall show that the sum of the monthly emissions from each emissions unit under the PAL for theprevious 12 consecutive months is less than the PAL (a 12-month average, rolled monthly). For each month during the first 11 months from the PAL effective date, the major stationary source owner or operator shall show that the sum of the preceding monthly emissions from the PAL effective date for each emissions unit under the PAL is less than the PAL. (b) The PAL shall be established in a PAL permit that meets the public participation requirements in Subsection E of this section. (c) The PAL permit shall contain all the requirements of Subsection G of this section. (d) The PAL shall include fugitive emissions, to the extent quantifiable, from all emissions units that emit or have the potential to emit the PAL pollutant at the major stationary source.

### 20.2.74 NMAC 17 (e) Each PAL shall regulate emissions of only one pollutant. (f) Each PAL shall have a PAL effective period of 10 years. (g) The owner or operator of the major stationary source with a PAL shall comply with the monitoring, recordkeeping, and reporting requirements provided in Subsections L through N of this section for each emissions unit under the PAL through the PAL effective period. (2) At no time (during or after the PAL effective period) are emissions reductions of a PAL pollutant that occur during the PAL effective period creditable as decreases for purposes of offsets under 40 CFR 51.165(a)(3)(ii) unless the level of the PAL is reduced by the amount of such emissions reductions and such reductions would be creditable in the absence of the PAL. E. Public participation requirements for PALs.PALs for existing major stationary sources shall be established, renewed, or increased, through a procedure that is consistent with 40 CFR 51.160 and 161. This includes the requirement that the department provide the public with notice of the proposed approval of a PAL permit and at least a 30-day period for submittal of public comment. The department must address all material comments before taking final action on the permit. F. Setting the 10-year actuals PAL level. (1) Except as provided in Paragraph (2) of this subsection, the actuals PAL level for a major stationary source shall be established as the sum of the ba seline actual emissions (as defined in 20.2.74.7 NMAC) of the PAL pollutant for each emi ssions unit at the source; plus an amount equal to the applicable significant level for the PAL pollutant under Subsection AV of 20.2.74.7 NMAC or under the act, whichever is lower. When establishing the actuals PAL level, for a PAL pollutant, only one consecutive 24-month period must be used to determine the baseline actual emissions for all existing emissions units. However, a different consecutive 24-month period may be used for each different PAL pollutant. Emissions associated with units that were permanently shutdown after this 24-month period must be subtracted from the PAL level. The department shall specify a reduced PAL level(s) (in tons/yr) in the PAL permit to become effective on the future compliance date(s) of any applicable federal or state regulatory requirement(s) that the department is aware of prior to issuance of the PAL permit. For instance, if the source owner or operator will be required toreduce emissions from industrial boilers in half from baseline emissions of 60 ppm NOx to a new rule limit of 30 ppm, then the permit shall contain a future effective PAL level that is equal to the current PAL level reduced by half of the original baseline emissions of such unit(s). (2) For newly constructed units (which do not include modifications to existing units) on which actual construction began after the 24-month period, in lieu of adding the baseline actual emissions as specified in Paragraph (1) of this subsection, the emissions must be added to the PAL level in an amount equal to the potential to emit of the units. G. Contents of the PAL permit.The PAL permit shall contain, at a minimum, the following information. (1) The PAL pollutant and the applicable source-wide emission limitation in tons per year. (2) The PAL permit effective date and the expiration date of the PAL (PAL effective period). (3) Specification in the PAL permit that if a ma jor stationary source owner or operator applies to renew a PAL in accordance with Subsection J of this section before the end of the PAL effective period, then the PAL shall not expire at the end of the PAL effective period . It shall remain in effect until a revised PAL permit is issued by the department. (4) A requirement that emission calculationsfor compliance purposes include emissions from startups, shutdowns and malfunctions. (5) A requirement that, once the PAL expires, the major stationary source is subject to the requirements of Subsection I of this section. (6) The calculation procedures that the major stationary source owner or operator shall use to convert the monitoring system data to monthly emissions and annual emissions based on a 12-month rolling total for each month as required by Paragraph (1) of Subsection C of this section. (7) A requirement that the major stationary source owner or operator monitor all emissions units in accordance with the provisions under Subsection M of this section. (8) A requirement to retain the records requiredunder Subsection M of this section on site. Such records may be retained in an electronic format. (9) A requirement to submit the reports requiredunder Subsection N of this section by the required deadlines. (10)Any other requirements that the department deems necessary to implement and enforce the PAL. H. PAL effective period and reopening of the PAL permit. (1) PAL effective period. The PAL effective period shall be 10 years.

### 20.2.74 NMAC 18 (2) Reopening of the PAL permit. (a) During the PAL effective period, the department shall reopen the PAL permit to: (i) correct typographical/calculation errorsmade in setting the PAL or reflect a more accurate determination of emissions used to establish the PAL; (ii) reduce the PAL if the owner or operator of the major stationary source creates creditable emissions reductions for use as offsets under 40 CFR 51.165(a)(3)(ii); and (iii) revise the PAL to reflect an increase in the PAL as provided under Subsection K of this section. (b) The department may reopen the PAL permit for the following: (i) to reduce the PAL to reflect newly applicable federal requirements (for example, NSPS) with compliance dates after the PAL effective date; (ii) to reduce the PAL consistent with any other requirement, that is enforceable as a practical matter, and that the department may impose on the major stationary source under the plan; and (iii) to reduce the PAL if the department determines that a reduction is necessary to avoid causing or contributing to a NAAQS or PS D increment violation, or to an adverse impact on an AQRV that has been identified for a federal class I area by a federal land manager and for which information is available to the general public. (c) Except for the permit reopening in Item (i) of Subparagraph (a) of Paragraph (2) of this subsection for the correction of typographical/calculation errors that do not increase the PAL level, all reopenings shall be carried out in accordance with the public partic ipation requirements of Subsection E of this section. I. Expiration of a PAL.Any PAL that is not renewed in accordance with the procedures in Subsection J of this section shall expire at the end of the PAL effective period, and the following requirements shall apply. (1) Each emissions unit (or each group of emi ssions units) that existed under the PAL shall comply with an allowable emission limitation under a revised permit established according to the following procedures. (a) Within the time frame specified for PAL renewals in Paragraph (2) of Subsection J of this section, the major stationary source shall submit a propo sed allowable emission limitation for each emissions unit (or each group of emissions units, if such a distribution is more appropriate as decided by the department) by distributing the PAL allowable emissionsfor the major stationary source among each of the emissions units that existed under the PAL. If the PAL had not yet been adjusted for an applicable requirement that became effective during the PAL effective period, as required under Paragraph (5) of Subsection J of this section, such distribution shall be made as if the PAL had been adjusted. (b) The department shall decide whether and how the PAL allowable emissions will be distributed and issue a revised permit incorporating allowable limits for each emissions unit, or each group of emissions units, as the department determines is appropriate. (2) Each emissions unit(s) shall comply with the allowable emission limitation on a 12-month rolling basis. The department may approve the use of monitoring systems (source testing, emission factors, etc.) other than CEMS, CERMS, PEMS or CPMS to demonstrate compliance with the allowable emission limitation. (3) Until the department issues the revised permit incorporating allowable limits for each emissions unit, or each group of emissions units, as required under Subparagraph (b) of Paragraph (1) of Subsection I of this section, the source shall continue to comply with a source-wide, multi-unit emissions cap equivalent to the level of the PAL emission limitation. (4) Any physical change or change in the method of operation at the major stationary source will be subject to major new source review requirements if suchchange meets the definition of major modification in 20.2.74.7 NMAC. (5) The major stationary source owner or operator shall continue to comply with any New Mexico or federal applicable requirements (BACT, RACT, NSPS, etc.) that may have applied either during the PAL effective period or prior to the PAL effective period except for those emission limitations that had been established pursuant to Subsection D of 20.2.74.300 NMAC, but were eliminated by the PAL inaccordance with the provisions in Subparagraph (c) of Paragraph (2) of Subsection A of this section. J. Renewal of a PAL. (1) The department shall follow the procedures sp ecified in Subsection E of this section in approving any request to renew a PAL for a major stationary source, and shall provide both the proposed PAL level and a written rationale for the proposed PAL level to the public for review and comment. During such public review, any person may propose a PAL level for the source for consideration by the department.

### 20.2.74 NMAC 19 (2) Application deadline. A major stationarysource owner or operator shall submit a timely application to the department to request renewal of a PAL. A timely application is one that is submitted at least 6 months prior to, but not earlier than 18 months from, the date of permit expiration. This deadline for application submittal is to ensure that the permit will not expire before the permit is renewed. If the owner or operator of a major stationary source submits a complete application to renew the PAL within this time period, then the PAL shall continue to be effective until the revised permit with the renewed PAL is issued. (3) Application requirements. The application to renew a PAL permit shall contain the following information. (a) The information required in Subsection C of this section. (b) A proposed PAL level. (c) The sum of the potential to emit of all emissions units under the PAL (with supporting documentation). (d) Any other information the owner or operator wishes the department to consider in determining the appropriate level for renewing the PAL. (4) PAL adjustment. In determining whether and how to adjust the PAL, the department shall consider the options outlined in Subparagraphs (a) and (b) of this paragraph. However, in no case may any such adjustment fail to comply with Subparagraph (c) of this paragraph. (a) If the emissions level calculated in accordance with Subsection F of this section is equal to or greater than 80 percent of the PAL level, the department may renew the PAL at the same level without considering the factors set forth in Subparagraph (b) of this paragraph. (b) The department may set the PAL at a level that it determines to be more representative of the source's baseline actual emissions, or that it determines tobe appropriate considering air quality needs, advances in control technology, anticipated economic growth in the area, desire to reward or encourage the source's voluntary emissions reductions, or other factors as specifically identified by the department in its written rationale. (c) Notwithstanding Subparagraphs (a) and (b) of this paragraph: (i) if the potential to emit of the major stationary source is less than the PAL, the department shall adjust the PAL to a level no greater than the potential to emit of the source; and (ii) the department shall not approve a renewed PAL level higher than the current PAL, unless the major stationary source has complied with the provisions of Subsection K of this section (increasing a PAL). (5) If the compliance date for a state or federal requirement that applies to the PAL source occurs during the PAL effective period, and if the department has not already adjusted for such requirement, the PAL shall be adjusted at the time of PAL permit renewal or title V permit renewal, whichever occurs first. K. Increasing a PAL during the PAL effective period. (1) The department may increase a PAL emi ssion limitation only if the major stationary source complies with the following provisions. (a) The owner or operator of the major stationary source shall submit a complete application to request an increase in the PAL limit for a PAL major modification. Such application shall identify the emissions unit(s) contributing to the increase in emissions so as to cause the major stationary source's emissions to equal or exceed its PAL. (b) As part of this application, the major stationary source owner or operator shall demonstrate that the sum of the baseline actual emissions of the small emissions units, plus the sum of the baseline actual emissions of the significant and major emissions units assuming application of BACT equivalent controls, plus the sum of the allowable emissions of the new or modified emissions unit(s), exceed s the PAL. The level of control that would result from BACT equivalent controls on each significant or major emissions unit shall be determined by conducting a new BACT analysis at the time the application is submitted, unless the emissions unit is currently required to comply with a BACT or LAER requirement that was estab lished within the preceding 10 years. In such a case, the assumed control level for that emissions unit shall be equal to the level of BACT or LAER with which that emissions unit must currently comply. (c) The owner or operator obtains a major new source review permit for all emissions unit(s) identified in Subparagraph (a) of this paragraph, regardless of the magnitude of the emissions increase resulting from them (that is, no significant levels apply). These emissions unit(s) shall comply with any emissions requirements resulting from the major new source review process (for example, BA CT), even though they have also become subject to the PAL or continue to be subject to the PAL. (d) The PAL permit shall require that the increased PAL level shall be effective on the day any emissions unit that is part of the PAL major modification becomes operational and begins to emit the PAL pollutant.

### 20.2.74 NMAC 20 (2) The department shall calculate the new PAL as the sum of the allowable emissions for each modified or new emissions unit, plus the sum of the baseline actual emissions of the significant and major emissions units (assuming application of BACT equivalent controls as determined in accordance with Subparagraph (b) of Paragraph (1) of this subsection), plus the sum of the baseline actual emissions of the small emissions units. (3) The PAL permit shall be revised to reflect the increased PAL level pursuant to the public notice requirements of Subsection E of this section. L. Monitoring requirements for PALs. (1) General requirements. (a) Each PAL permit must contain enforceable requirements for the monitoring system that accurately determines plantwide emissions of the PAL pollutant in terms of mass per unit of time. Any monitoring system authorized for use in the PAL permit must bebased on sound science and meet generally acceptable scientific procedures for data quality and manipulation. Additionally, the information generated by such system must meet minimum legal requirements for admissibility in a judicial proceeding to enforce the PAL permit. (b) The PAL monitoring system must employ one or more of the four general monitoring approaches meeting the minimum requirements set forth in Paragraph (2) of this subsection and must be approved by the department. (c) Notwithstanding Subparagraph (b) of this paragraph, you may also employ an alternative monitoring approach that meets Subparagraph (a) of this paragraph if approved by the department. (d) Failure to use a monitoring system that meets the requirements of this section renders the PAL invalid. (2) The following are acceptable general monitoring approaches when condu cted in accordance with the minimum requirements in Paragraphs (3) through (9) of this subsection: (a) Mass balance calculations for activities using coatings or solvents; (b) CEMS; (c) CPMS or PEMS; and (d) emission factors. (3) Mass balance calculations. An owner or operator using mass balance calculations to monitor PAL pollutant emissions from activities using coating or solvents shall meet the following requirements: (a) provide a demonstrated means of validating the published content of the PAL pollutant that is contained in or created by all materials used in or at the emissions unit; (b) assume that the emissions unit emits all of the PAL pollutant that is contained in or created by any raw material or fuel used in or at the emissions unit, if it cannot otherwise be accounted for in the process; and (c) where the vendor of a material or fuel, which is used in or at the emissions unit, publishes a range of pollutant content from such material, the owner or operator must use the highest value of the range to calculate the PAL pollutant emissions unless the department determines there is site-specific data or a site-specific monitoring program to support another content within the range. (4) CEMS. An owner or operator using CEMS to monitor PAL pollutant emissions shall meet the following requirements: (a) CEMS must comply with applicable perf ormance specifications foundin 40 CFR Part 60, Appendix B; and (b) CEMS must sample, analyze, and record data at least every 15 minutes while the emissions unit is operating. (5) CPMS or PEMS. An owner or operator using CPMS or PEMS to monitor PAL pollutant emissions shall meet the following requirements: (a) the CPMS or the PEMS must be based on current site-specific data demonstrating a correlation between the monitored parameter(s) and the PAL pollutant emissions across the range of operation of the emissions unit; and (b) each CPMS or PEMS must sample, analyze, and record data at least every 15 minutes, or at another less frequent interval approved by the department, while the emissions unit is operating. (6) Emission factors. An owner or operator using emission factors to monitor PAL pollutant emissions shall meet the following requirements: (a) all emission factors shall be adjusted, if appropriate, to account for the degree of uncertainty or limitations in the factors' development; (b) the emissions unit shall operate within the designated range of use for the emission factor, if applicable; and

### 20.2.74 NMAC 21 (c) if technically practicable, the owner or operator of a significant emissions unit that relies on an emission factor to calculate PAL pollutant emissions shall conduct validation testing to determine a site-specific emission factor within 6 months of PAL permit issuance, unless the department determines that testing is not required. (7) A source owner or operator must record and report maximum potential emissions without considering enforceable emissi on limitations or operational restrictions for an emissions unit during any period of time that there is no monitoring data, unless another method for determining emissions during such periods is specified in the PAL permit. (8) Notwithstanding the requirements in Paragraphs (3) through (7) of this subsection, where an owner or operator of an emissions unit cannot demonstrate a correlation between the monitored parameter(s) and the PAL pollutant emissions rate at all operating points of the emissions unit, the department shall, at the time of permit issuance: (a) establish default value(s) for determining compliance with the PAL based on the highest potential emissions reasonably estimated at such operating point(s); or (b) determine that operation of the emissions unit during operating conditions when there is no correlation between monitored parameter(s) and the PAL pollutant emissions is a violation of the PAL. (9) Revalidation. All data used to establish the PAL pollutant must be revalidated through performance testing or other scientifically valid means approved by the department. Such testing must occur at least once every 5 years after issuance of the PAL. M. Recordkeeping requirements. (1) The PAL permit shall require an owner or operator to retain a copy of all records necessary to determine compliance with any requirement of this section and of the PAL, including a determination of each emissions unit's 12-month rolling total emissions, for 5 years from the date of such record. (2) The PAL permit shall require an owner or operator to retain a copy of the following records, for the duration of the PAL effective period plus 5 years: (a) a copy of the PAL permit application and any applications for revisions to the PAL; and (b) each annual certification of compliance pursuant to title V and the data relied on in certifying the compliance. N. Reporting and notification requirements.The owner or operator shall submit semi-annual monitoring reports and prom pt deviation reports to the department in accordance with the applicable title V operating permit program. The reports sh all meet the following requirements. (1) Semi-annual report. The semi-annual report shall be submitted to the department within 30 days of the end of each reporting period. This report shall contain the following information: (a) the identification of owner and operator and the permit number; (b) total annual emissions (tons per year) based on a 12-month rolling total for each month in the reporting period recorded pursuant to Paragraph (1) of Subsection M of this section; (c) all data relied upon, including, but not limited to, any quality assurance or quality control data, in calculating the monthly and annual PAL pollutant emissions; (d) a list of any emissions units modified or added to the major stationary source during the preceding 6-month period; (e) the number, duration, and cause of any deviations or monitoring malfunctions (other than the time associated with zero and span calibration checks), an d any corrective action taken; (f) a notification of a shutdown of any monitoring system, whether the shutdown was permanent or temporary, the reason for the shutdown, the anticipated date that the monitoring system will be fully operational or replaced with another monitoring system, and whether the emissions unit monitored by the monitoring system continued to operate, and the calculation of the emissions of the pollutant or the number determined by method included in the permit, as provided by Paragraph (7) of Subsection L of this section; and (g) a signed statement by the responsible official (as defined by the applicable title V operating permit program) certifying the truth, accuracy, and completeness of the information provided in the report. (2) Deviation report. The major stationary source owner or operator shall promptly submit reports of any deviations or exceedance of the PAL requirements, including periods where no monitoring is available. A report submitted pursuant to 40 CFR 70.6(a)(3)(iii)(B) shall satisfythis reporting requirement. The deviation reports shall be submitted within the time limits prescribed by the applicable program implementing 40 CFR 70.6(a)(3)(iii)(B). The reports shall contain the following information: (a) the identification of owner and operator and the permit number; (b) the PAL requirement that experienced the deviation or that was exceeded;

### 20.2.74 NMAC 22 (c) emissions resulting from the deviation or the exceedance; and (d) a signed statement by the responsible official (as defined by the applicable title V operating permit program) certifying the truth, accuracy, and completeness of the information provided in the report. (3) Revalidation results. The owner or operator shall submit to the department the results of any revalidation test or method within three months after completion of such test or method. O. Transition requirements. (1) The department may not issue a PAL that does not comply with the requirements in this section after the administrator has approved regulations incorporating these requirements into a plan. (2) The department may supersede any PAL which was established prior to the date of approval of the plan by the administrator with a PAL that complies with the requirements of this section. [20.2.74.320 NMAC - N, 1/22/06]

20.2.74.321 to 20.2.74.399[RESERVED]

20.2.74.400 PUBLIC PARTICIPATION AND NOTIFICATION: A.The Department shall, within thirty (30) daysafter receipt of an application, review such application and determine whether it is administratively complete or there is any deficiency in the application or information submitted. To be deemed administratively complete, the application must meet the requirements of 20.2.74.301 NMAC in addition to the requirements of 20.2.72 NMAC. If the application is deemed: (1) administratively complete, a letter to that effect shall be sent by certified mail to the applicant. (2) administratively incomplete, a letter shall be sent by certified mail to the applicant stating what additional information or points of clarification are nece ssary to deem the applicatio n administratively complete. Upon receipt of the additional information or clarification, the Department shall promptly review such information and determine whether the application is administratively complete. (3) administratively complete but no permit is required, a letter shall be sent by certified mail to the applicant informing the applicant of the determination. B.For purposes of determining minor source baseline date pursuant to 40 CFR 51: (1) An application is complete when it contains all the information neces sary for processing the application. Designating an application complete for purposes of 40 CFR 51 does not preclude the Department from requesting or accepting any additional information; and (2) In the event that additional information is submitted to remedy any deficiency in the application or information submitted, the date of receipt of the application shall be the date on which the Department received all required information. C.The Department shall: (1) Make a preliminary determination whether construction should be approved, approved with conditions, or disapproved. (2) Make available at the Department district and local office nearest to the proposed source a copy of all materials the applicant submitted, a copy of the preliminary determination, and a copy or summary of other materials, if any, considered in making the preliminary determination. (3) Notify the public by advertisement in a newspaper of general circulation in the area in which the proposed source would be constructed: (a) Of the application, (b) The preliminary determination, (c) The degree of increment consumption that is expected from the source or modification, and (d)Of the opportunity for comment at a public hearing as well as written public comment. The
public comment period shall be for thirty (30) days from the date of such advertisement. (4) Send a copy of the notice of public comment to: (a) The applicant, (b) The Administrator, and (c) Officials and agencies having jurisdicti on over the location where the proposed construction would occur as follows: (i) Any other state or localair pollution control agencies; (ii) The chief executives of the city and county where the source would be located; (iii) Any comprehensive regional land use planning agency; and (iv) Any state, Federal Land Manager, or Indian governing body whose lands may be affected by emissions from the source or modification.

### 20.2.74 NMAC 23 (5) Provide opportunity for a public hearing for interested persons to appear and submit written or oral comments on the air quality impact of the source and other appropriate considerations. (6) Consider all written comments submitted within a time specified in the notice of public comment and all comments received at any pub lic hearing(s) in making a final decision on the approvability of the application. The Department shall make all comments available for public inspection in the same locations where the Department made available preconstruction information relating to the source. (7) Within one hundred eighty (180) days after an application is deemed administratively complete, unless the Secretary, as specified in 20 .2.72.207 NMAC, grants an extension not to exceed ninety (90) days for good

cause: (a) make a final determination of whether construction should be approved, approved with conditions, or disapproved; and (b) notify the applicant in writing of the final determination and make such notification available for public inspection at the same location where the Department made available preconstruction information and public comments relating to the source. [07/20/95; 01/01/00; 20.2.74.400 NMAC - Rn, 20 NMAC 2.74.400, 10/31/02]

20.2.74.401 STACK HEIGHT CREDIT: The Department shall review all applications in accordance with the provisions of 20.2.80 NMAC (Stack Heights) (formerly Air Quality Control Regulation 710 -- Stack Height Requirements). [07/20/95; 20.2.74.401 NMAC - Rn, 20 NMAC 2.74.401, 10/31/02]

20.2.74.402 EXCLUSIONS FROM INCREMENT CONSUMPTION: Following a public hearing, the Secretary may exclude the foll owing concentrations in determining compliance with a maximum allowable increase: A.Concentrations due to the increase in emissions from stationary sources, over the emissions from such sources before the effective date of an order under sections 2(a) and (b) of the Energy Supply and Environmental Coordination Act of 1974 (or any superseding legislation). Sources must have converted from the use of petroleum products, natural gas, or both by reason of such order. This exclusion shall not apply more than five (5) years after the effectiv e date of such an order; or B.Concentrations due to the increase in emissionsfrom sources, over the emissions from such sources before the effective date of a pl an in effect pursuant to the Federal Po wer Act. Sources must have converted from using natural gas by reason of a natural gas curtailment plan. This exclusion shall not apply more than five (5) years after the effective date of such a plan; or C.Concentrations of particulate matter due to the increase in emissions from construction or other temporary emission-related activities of new or modified sources; or D.The increase in concentrations due to new sources outside the United States over the concentrations attributed to existing sources which are included in the baseline concentrations. [07/20/95; 20.2.74.402 NMAC - Rn, 20 NMAC 2.74.402, 10/31/02]

20.2.74.403 ADDITIONAL REQUIREMENTS FOR SOURCES IMPACTING CLASS I FEDERAL AREAS: A.The Department shall transmit tothe Administrator and the Federal Land Manager a copy of each permit application relating to a major stationary source or major modification proposing to locate within one hundred (100) kilometers of any Class I Federal area. The complete permit application shall be transmitted within thirty (30) days of receipt and sixty (6 0) days prior to any publichearing on the applicatio n. The Department shall include all relevant information in the permit application. Relevant information shall include an analysis of the proposed source's anticipated impacts on visibility in the Class I Federal area. The Department shall consult with all affected Federal Land Managers as to the completeness of the permit application and shall consider any analysis performed by the Federal Land Manager concerning the impact of the proposed major stationary source or major modification on air quality related values. This consideration shall include visibility, if such analysis is received within thirty (30) days after the Federal Land Manager receives a copy of the completeapplication. Additionally, the Department shall notify any affected FederalLand Manager within thirty days (30) from the date the Department receives a request for a pre-application meeting from a proposed source subject to this Part. Notice shall be provided to the Administrator and Federal Land Manager of every action related to the consideration of such permit. The department shall also provide the Federal Land Manager and the Administrator with a copy of the preliminary determination required under 20.2.74.400 NMAC and shall make available to them any materials used in making that determination. In any case where the Department disagrees with the Federal Land Manager's analysis of source

### 20.2.74 NMAC 24 impact on air quality related values, the Department shall, either explain its decision or give notice to the Federal Land Manager as to where the explanation can be obtained. In the case where the Department disagrees with the Federal Land Managers' analysis, the Department will also explain its decision or give notice to the public by advertisement in a newspaper of general circulation in the area in which the proposed source would be constructed, as to where the decisi on can be obtained. B.The Department shall transmit to air quality control agencies of neighboring states and Indian governing bodies a copy of each permit application having the potential to affect Class I Federal areas or increment consumption in areas under their jurisdiction. The Department shall also provide the affected air quality control agencies and Indian governing bodies with a copy of the preliminary determination required under 20.2.74.400 NMAC and shall make available to them any materials used in making that determination. The Department shall include a provision for a sixty (60) day comment period for the Federal Land Managers before any public hearing on a permit application is held. C.Federal Land Managers may demonstrate to the Department that emissions from a proposed source or modification would have an adverse impact on air quality related values, including visibility, of any Class I Federal lands under their jurisdiction. This may be done even though the change in air quality resulting from emissions from the proposed source or modification would not cause or contribute to concentrations which would exceed the maximum allowable increases for a Class I Federal area. If the Department concurs with this demonstration, then the source shall not be issued a permit. D.Class I Waivers: The owner or operator of a proposed source or modification may demonstrate to the Federal Land Manager that the emissions from a proposed source or modification would have no adverse impact on air quality related values, including visibility, of Class I Federal lands under his or her jurisdiction. This may be done even though the change in air quality resulting from emissions from such source or modification would cause or contribute to concentrations which would exceed the maximum allowable increases for a Class I Federal area. If the Federal Land Manager concurs with such demonstration and so certifies to the Department, the Department may grant a waiver from such maximum allowable increases. Emission limitations must be included in the permit as necessary to assure that emissions of sulfur dioxide, particulate matter, and nitrogen oxides would not exceed the maximum allowable increases over minor source baseline concentrations shown in Table 5 of this Part (20.2.74.505 NMAC).E.For the case where the Federal Land Manager does no t perform an impact analysis with respect to visibility impairment in a Class I Federal area, the Department may perform such an analysis. The Department shall not issue the source a permit if the Department determinesthat an adverse impact on visibility would occur. The adverse impact must be due, primarily, to the operation of the proposed source or modification. F.Sulfur Dioxide Waiver by Governor: The owner or operator of a proposed major stationary source or major modification, which cannot be approved under subsection D of 20.2.74.403 NMAC, may demonstrate to the Governor that the source cannot be constructed by reason of an exceedance of a maximum allowable increase for a Class I Federal area for sulfur dioxide for a period of twenty-four (24) hours or less. The owner or operator may also demonstrate that a waiver from this requirement would not adversely affect the air quality related values of the Class I Federal area. The Governor, after consideration of the Federal Land Manager's recommendation and subject to his concurrence, may, after notice and public hearing, grant a waiver from such maximum allowable increase. If the waiver is granted, the Department shall issue a permit to the owner or operator of the source or modification. Any owner or operator of a source or modification who obtains a permit under this section shall comply with sulfur dioxide emissions limitations. These limitations do not allow increases of ambient concentrations, above the baseline concentration, to exceed the levels found in Table 6 of this Part (20.2.74.506 NMAC) for periods of twentyfour (24) hours or less for more than eighteen (18) days, not necessarily consecutive, in any annual period. G.Sulfur Dioxide Waiver by Governor with the President's Concurrence. In any case where the Governor recommends a waiver in which the Federal Land Manager does not concur, the recommendations of the Governor and the Federal Land Manager shall be transmitted to the President through the office of the Governor. If the President so directs, the Department shall issue the permit. Any source or modification that obtains a permit under this section shall comply with sulfur dioxide emissions limitations. These limitations do not allow increases in ambient concentrations, above the ba seline concentration, to exceed the levels found in Table 6 of this Part (20.2.74.506 NMAC) for periods of twenty-four (24) hours or less for more than eighteen (18) days, not necessarily consecutive, in any annual period. [07/20/95; 20.2.74.403 NMAC - Rn, 20 NMAC 2.74.403, 10/31/02]

20.2.74.404 to 20.2.74.500[RESERVED]

### 20.2.74 NMAC 25 20.2.74.501 TABLE 1 - PSD SOURCE CATEGORIES. A. Carbon black plants (furnace process) B. Charcoal production plants C. Chemical process plants D. Coal cleaning plants (with thermal dryers) E. Coke oven batteries F. Fossil fuel boilers (or combinations thereof) totaling more than 250 million BTU/hr heat input G. Fossil fuel-fired steam electri c plants of more than 250 million BTU/hr heat input H. Fuel conversion plants I. Glass fiber processing plants J. Hydrofluoric acid plants K. Iron and steel mills L. Kraft pulp mills M. Lime plants N. Municipal incinerators capable of charging more than 50 tons of refuse per day O. Nitric acid plants P. Petroleum refineries Q. Petroleum storage and transfer units with a total storage cap acity exceeding 300,000 barrels R. Phosphate rock processing plants S. Portland cement plants T. Primary aluminum ore reduction plants U. Primary copper smelters V. Primary lead smelters W. Primary zinc smelters X. Secondary metal production plants Y. Sintering plants Z. Sulfur recovery plants AA. Sulfuric acid plants AB. Taconite ore processing plants [07/20/95; 20.2.74.501 NMAC - Rn, 20 NMAC 2.74 Table 1, 10/31/02; A, 1/22/06]

20.2.74.502 TABLE 2 - SIGNIFICANT EMISSION RATES:

POLLUTANT EMISSION RATE (TONS/YR) Carbon monoxide 100 Fluorides 3 Lead 0.6 Municipal waste combustor Acid gases (measured as sulfur dioxide and hydrogen chloride) 40 (36 megagrams/year) Metals (measured as particulate matter 15 (14 megagrams/year) Organics (measured as total tetra- through octa-chlorinated dibenzo-p-dioxins and dibenzofurans) 0.0000035 (0.0000032 megagrams/yr)

Nitrogen oxides 40 Ozone (Volatile Organic Compounds or nitrogen oxides) 40 Particulate Matter Particulate matter emissions 25 PM-10 emissions 15 Sulfur compounds Hydrogen sulfide (H2S) 10 Reduced sulfur compounds (incl. H2S) 10 Sulfur dioxide 40 Sulfuric acid mist 7 Total reduced sulfur (incl. H2S) 10 Any other pollutant regulated under the act that is not listed in this table Any emission rate

### 20.2.74 NMAC 26 Each regulated pollutant Emission rate or net emissions increase associated with a major stationary source or major modification that causes an air

quality impact of one microgram per cubic meter or greater (24-hr average) in any class I federal area located within 10 km of the source.

[07/20/95; 20.2.74.502 NMAC - Rn, 20 NMAC 2.74 Table 2, 10/31/02; A, 1/22/06; A, 8/31/09]

20.2.74.503 TABLE 3 - SIGNIFICANT MONI TORING CONCENTRATIONS.

POLLUTANT AIR QUALITY CONCENTRATION micrograms per cubic meter AVERAGING TIME

Carbon monoxide 575 8 hours Fluorides 0.25 24 hours Lead 0.1 3 months Nitrogen dioxide 14 Annual Ozone b Particulate matter (PM-10) 10 24 hours Sulfur compounds Hydrogen sulfide (H2S) 0.20 1 hour Reduced sulfur compounds (incl. H2S) 10 1 hour Sulfur dioxide 13 24 hours Sulfuric acid mist a Total reduced sulfur (incl. H2S) 10 1 hour a - No acceptable monitoring techniques available at thistime. Therefore, monitoring is not required until acceptable techniques are available. b –No de minimis air quality level is provided for ozone. However, any net increase of 100 tons per year or more of volatile organic compounds or nitrogen oxides subject to PSD would be required to perform an ambient impact analysis, including the gathering of ambient air quality data.

[07/20/95; 20.2.74.503 NMAC - Rn, 20 NMAC 2.74 Table 3, 10/31/02; A, 1/22/06; A, 8/31/09]

20.2.74.504 TABLE 4 - A LLOWABLE PSD INCREMENTS:

Micrograms per cubic meter ( μg/m3 

### ) Class I Class II Class III Nitrogen Dioxide annual arithmetic mean 2.5 25 50 Particulate Matter PM 10 

### , annual arithmetic mean 4 17 34 PM 10 

### , 24-hour maximum 8 a

### 30 a

### 60 a 

### Sulfur Dioxide annual arithmetic mean 2 20 40 24-hour maximum 5 a

### 91 a

### 182 a 

### 3-hour maximum 25 a

### 512 a

### 700 a



### a - Not to be exceeded more than once a year.

[07/20/95; 20.2.74.504 NMAC - Rn, 20 NMAC 2.74 Table 4, 10/31/02]

20.2.74.505 TABLE 5 - MAXIMUM ALLOWA BLE INCREASES FOR CLASS I WAIVERS:

### 20.2.74 NMAC 27 Micrograms per cubic meter ( μg/m3 

### ) Nitrogen Dioxide annual arithmetic mean 25 Particulate Matter PM 10 

### , annual arithmetic mean 17 PM 10 

### , 24-hour maximum 30 Sulfur Dioxide annual arithmetic mean 20 24-hour maximum 91 3-hour maximum 325

[07/20/95; 20.2.74.505 NMAC - Rn, 20 NMAC 2.74 Table 5, 10/31/02]

20.2.74.506 TABLE 6 - MAXIMUM ALLOWABLE IN CREASE FOR SULFURDIOXIDE WAIVER BY GOVERNOR:

Micrograms per cubic meter ( μg/m3 

### ) Terrain Areas Period of Exposure Low High 24-hr. maximum 36 62 3-hr. maximum 130 221

[07/20/95; 20.2.74.506 NMAC - Rn, 20 NMAC 2.74 Table 6, 10/31/02]

HISTORY OF 20.2.74 NMAC: Pre NMAC History: The material in this part was derived from that previously filed with the commission of public records - state records center and archives. EIB/AQCR 707, Air Quality Control Regulation 707 - Permits, Prevention Of Signific ant Deterioration (PSD), 02/14/84; EIB/AQCR 707, Air Quality Control Regulation 707 - Permits, Prevention Of Signific ant Deterioration (PSD), 07/15/86; EIB/AQCR 707, Air Quality Control Regulation 707 - Permits, Prevention Of Signific ant Deterioration (PSD), 08/01/88; EIB/AQCR 707, Air Quality Control Regulation 707 - Permits, Prevention Of Signific ant Deterioration (PSD), 05/29/90.

History of Repealed Material: [RESERVED]

Other History: EIB/AQCR 707, Air Quality Control Regulation 707 - Permits, Prevention Of Significant Deterioration (PSD), filed 05/29/90 was renumberedinto first version of the New Mexico Administrative Code as 20 NMAC 2.74, Permits -- Prevention Of Significant Deterioration (PSD), filed 06/20/95. 20 NMAC 2.74, Permits -- Prevention Of Significant Deterioration (PSD), filed 06/20/95 was renumbered, reformatted and replacedby 20.2.74 NMAC, Permits -- Prevention Of Significant Deterioration (PSD), effective 10/31/02.

### 20.2.79 NMAC 1 TITLE 20 ENVIRONMEN TAL PROTECTION CHAPTER 2 AIR QUALITY (STATEWIDE) PART 79 PERMITS - NONATTAINMENT AREAS

20.2.79.1 ISSUING AGENCY: Environmental Improvement Board. [11/30/95; 20.2.79.1 NMAC - Rn, 20 NMAC 2.79.100, 10/31/02]

20.2.79.2 SCOPE: All persons who intend to construct or modify a source, except as otherwise provided by this Part. [11/30/95; 20.2.79.2 NMAC - Rn, 20 NMAC 2.79.101, 10/31/02]

20.2.79.3 STATUTORY AUTHORITY: Environmental Improvement Act, NMSA 1978, section 74-1- 8(A)(4), and Air Quality Control Act, NMSA 1978, sections 74-2-1 et seq., including specifically, sections 74-2- 5(C)(1) and 74-2-7(A)(1), (B), (C) and (D). [11/30/95; 20.2.79.3 NMAC - Rn, 20 NMAC 2.79.102, 10/31/02]

20.2.79.4 DURATION: Permanent. [11/30/95; 20.2.79.4 NMAC - Rn, 20 NMAC 2.79.103, 10/31/02]

20.2.79.5 EFFECTIVE DATE: November 30, 1995 except where a later date is cited at the end of a section or paragraph. [11/30/95; A, 10/01/97; 20.2.79.5 NMAC - Rn, 20 NMAC 2.79.104, 10/31/02] [The latest effective date of any section in this Part is 1/22/06.]

20.2.79.6 OBJECTIVE: The objective of this Part is to es tablish the requirements for obtaining a nonattainment area permit. [11/30/95; 20.2.79.6 NMAC - Rn, 20 NMAC 2.79.105, 10/31/02]

20.2.79.7 DEFINITIONS.In addition to the terms defined in 20.2 .2 NMAC (Definitions), as used in this part, the following terms apply. A. "Actual emissions" means the actual rate of emissions of a regulated new source review pollutant from an emissions unit, as determinedin accordance with the following, except that this definition shall not apply for calculating whether a significant emissions increase ha s occurred, or for establishing a plantwide applicability limit under 20.2.79.120 NMAC. Instead, Subsections E and AI of this section shall apply for those purposes. (1) In general, actual emissions as of a particular date shall equal the average rate, in tons per year, at which the unit actually emitte d the pollutant during a consecutive 24-month period which precedes the particular date and which is representative of normal source operation. The department shall allow the use of a different time period upon a determination that it is more representative of normal source operation. Actual emissions shall be calculated using the unit's actual operating hours, production rates, and types of materials processed, stored, or combusted during the selected time period. (2) The department may presume that source-specific allowable emissions for the unit are equivalent to the actual emissions of the unit. (3) For any emissions unit that has not begun normal operations on the particular date, actual emissions shall equal the potential to emit of the unit on that date. B. "Administrator" means the administrator of the U.S. environmental protection agency (EPA) or an authorized representative. C. "Adverse impact on visibility" means visibility impairment which interferes with the management, protection, preservation, or enjoyment of the visitor's visual experience of the mandatory federal class I area. This determination must be made on a case-by-case basis taking into account the geographic extent, intensity, duration, frequency, and time of the visibility im pairments and how these factors correlate with: 1) times of visitor use of the mandatory federal class I area; and 2) the frequency and timing of natural conditions that reduce visibility. This term does not include effects on integral vistas as defined in 40 CFR 51.301 Definitions. D. "Allowable emissions" means the emissions rate of a stationary source calculated using the maximum rated capacity of the source (unless the source is subject to federally enforceable limits which restrict the operating rate, or hours of operation, or both) and the most stringent of the following: (1) the applicable standard set forth in 40 CFR Part 60 or 61;

### 20.2.79 NMAC 2 (2) any applicable state implementation plan emissions limitation including those with a future compliance date; or (3) the emissions rate specified as a federally enforceable permit condition,including those with a future compliance date. E. "Baseline actual emissions" means the rate of emissions, in tons per year, of a regulated new source review pollutant, as determinedin accordance with the following. (1) For any existing electric utility steam generating unit, baseline actual emissions means the average rate, in tons per year, at which the unit actually emitted the pollutant during any consecutive 24-month period selected by the owner or operator within the 5-year period imme diately preceding when th e owner or operator begins actual construction of the project. The department shall allow the use of a different time period upon a determination that it is more representative of normal source operation. (a) The average rate shall include fugitive emissions to the extent quantifiable, and emissions associated with startups, shutdowns, and malfunctions. (b) The average rate shall be adjusted downward to exclude any noncompliant emissions that occurred while the source was operating above any emission limitation that was legally enforceable during the consecutive 24-month period. (c) For a regulated new source review pollutant, when a project involves multiple emissions units, only one consecutive 24-month period must be used to determine the baseline actual emissions for the emissions units being changed. A different consecutive 24-month period can be used for each regulated new source review pollutant. (d) The average rate shall not be based on any consecutive 24-month period for which there is inadequate information for determining annual emissions, in tons per year, and for adjusting this amount if required by Subparagraph (b) of Paragraph (1) of this subsection. (2) For an existing emissions unit (other than an electric utility steam generating unit), baseline actual emissions means the average rate, in tons per year, at which the emissions unit actually emitted the pollutant during any consecutive 24-month period selected by the owner or operator within the 10-year period immediately preceding either the date the owner or operator begins actual construction of the project, or the date a complete permit application is received by the department for a permit required either under this section or under a plan approved by the administrator, whichever is earlier, except that the 10-year period shall not include any period earlier than November 15, 1990. (a) The average rate shall include fugitive emissions to the extent quantifiable, and emissions associated with startups, shutdowns, and malfunctions. (b) The average rate shall be adjusted downward to exclude any noncompliant emissions that occurred while the source was operating above an emission limitation that was legally enforceable during the consecutive 24-month period. (c) The average rate shall be adjusted downward to exclude any emissions that would have exceeded an emission limitation with which the major stationary source must currently comply, had such major stationary source been required to comply with such limitations during the consecutive 24-month period. However, if an emission limitation is part of a maximum achievable control technology standard that the administrator proposed or promulgated under 40 CFR Part 63, the baseline actual emissions need only be adjusted if the state has taken credit for such emissions reductions in an attainment demonstration or maintenance plan consistent with the requirements of Subsection D of 20.2.79.115 NMAC. (d) For a regulated new source review pollutant, when a project involves multiple emissions units, only one consecutive 24-month period must be used to determine the baseline actual emissions for the emissions units being changed. A different consecutive 24-month period can be used for each regulated new source review pollutant. (e) The average rate shall not be based on any consecutive 24-month period for which there is inadequate information for determining annual emissions, in tons per year, and for adjusting this amount if required by Subparagraphs (b) and (c) of Paragraph (2) of this subsection. (3) For a new emissions unit, the baseline actual emissions for purposes of determining the emissions increase that will result from the initial construction and operation of such unit shall equal zero; and thereafter, for all other purposes, shall equal the unit's potential to emit. (4) For a plantwide applicability limit for a ma jor stationary source, the baseline actual emissions shall be calculated for existing electric utility steam generating units in accordance with the procedures contained in Paragraph (1) of this subsection, for other existing emissions units in accordance with the procedures contained in

### 20.2.79 NMAC 3 Paragraph (2) of this subsection, and for a new emissionsunit in accordance with the procedures contained in Paragraph (3) of this subsection. F. "Begin actual construction" means in general, initiation of physical on-site construction activities on an emissions unit which are of a permanent nature. Such activities include, but are not limited to, installation of building support and foundations, laying of underground pipework, and construction of permanent storage structures. With respect to a change in method of operating this term refers to those on-site activities other than preparatory activities which mark the initiation of the change. G. "Best available control technology (BACT) means an emissions limitation (including a visible emissions standard) based on the maximum degree of reduction for each regulated new source review pollutant which would be emitted from any proposed major stationarysource or major modification which the department, on a case-by-case basis, taking into account energy, environmental, and economic impacts and other costs, determines is achievable for such source or modification through application of production processes or available methods, systems, and techniques, including fuel cleaning, clean fuels, or treatment or innovative fuel combustion techniques for control of such pollutant. In no event shall application of best available control technology result in emissions of any pollutant which would exceed the emissions allowed by any applicable standard under 40 CFR Part 60 or 61. If the department determines that technological or economic limitations on the application of measurement methodology to a particular emissions unit would make the imposition of an emissions standard infeasible, a design, equipment, work practice, operational standard, or combin ation thereof, may be prescribed instead to satisfy the requirement for the application of BACT. Such standard shall, to the degree possible, set forth the emissions reduction achievable by implementation of such design, equipment, work practice or operation, and shall provide for compliance by means which achieve equivalent results. H. "Building, structure, facility, or installation" means all of the pollutant-emitting activities which belong to the same industrial grouping, are located on one or more contiguous or adjacent properties, and are under the control of the same person (or persons under common control). Pollutant-emitting activities shall be considered as part of the same industrial grouping if they belong to the same "major group" (i.e., which have the same two-digit code) as described in the standard indust rial classification manual, 1972, as amended by the 1977 supplement (U.S. government printing office stock numbers 4101-0066 and 003-005-00176-0, respectively). I. "Commence" as applied to construction of a major stationary source or major modification means that the owner or operator has all necessary preconstruction approvals or permits and either has: (1) begun, or caused to begin, a continuous program of actual on-site construction of the source, to be completed within a reasonable time; or (2) entered into binding agreements or contractual obligations, which cannot be cancelled or modified without substantial loss to the owner or operator, to undertake a program of actual construction of the source to be completed within a reasonable time. J. "Construction" means any physical change or change in the method of operation (including fabrication, erection, installation, demolition, or modification of an emissions unit) which would result in a change in actual emissions. K. "Continuous emission s monitoring system" (CEMS) means all of the equipment that may be required to meet the data acquisition and availability requirements of this section, to sample, condition (if applicable), analyze, and provide a recordof emissions on a continuous basis. L. "Continuous emissions rate monitoring system" (CERMS) means the total equipment required for the determination and recording of the pollutant ma ss emissions rate (in terms of mass per unit of time). M. "Continuous parameter monitoring system" (CPMS) means all of the equipment necessary to meet the data acquisition and availability requirements of this section, to monitor process and control device operational parameters (for example, control device secondary voltages and electric currents) and other information (for example, gas flow rate, oxygen or carbon dioxide conc entrations), and to record average operational parameter value(s) on a continuous basis. N. "Electric utility steam generating unit" means any steam electric generating unit that is constructed for the purpose of supplying more than one-third of its potential electric output capacity and more than 25 megawatts electrical output to any utility power distribution system for sale. Any steam supplied to a steam distribution system for the purpose of providing steam toa steam-electric generator th at would produce electrical energy for sale is also considered in determining the electrical energy output capacity of the affected facility. O. "Emissions unit" means any part of a stationary source that emits or would have the potential to emit any regulated new source review pollutant and includes an electric steam generating unit as defined in Subsection N of this section. For purposes of this section, there are two types of emissions units.

### 20.2.79 NMAC 4 (1) A new emissions unit is any emissions unit which is (or will be) newly constructed and which has existed for less than 2 years from the date such emissions unit first operated. (2) An existing emissions unit is any emissions unit that does not meet the requirements in Paragraph (1) of this subsection. A replacement unit, as defined in this section, is an existing unit. P. "Federal class I area" means any Federal land that is cla ssified or reclassified "class I". Q. "Federal land manager" means, with respect to any lands inthe United States, the secretary of the department with authority over such lands. R. "Federally enforceable" means all limitations and conditions which are enforceable by the administrator, including those requirements developed pursuant to 40 CFR Parts 60 and 61, requirements within any applicable state implementation plan, any permit requirements established pursuant to 40 CFR 52.21 or under regulations approved pursuant to 40 CFR Part 51, Subpart I including 40 CFR 51.165 and 40 CFR 51.166. S. "Fugitive emissions" means those emissions which could not reasonably pass through a stack, chimney, vent, or other functionally equivalent opening. T. "Lowest achievable emission rate" means, for any source, the morestringent rate of emissions based on the following: (1) the most stringent emissions limitation which is contained in the implementation plan of any state for such class or category of stationary source, unless the owner or operator of the proposed stationary source demonstrates that such limitations are not achievable; or (2) the most stringent emissions limitation which is achieved in practice by such class or category of stationary source; this limitation, when applied to a modification, means the lowest achievable emissions rate for the new or modified emissions units within the stationary source ; in no event shall the application of this term permit a proposed new or modified stationary source to emit any pollutant in excess of the amount allowable under an applicable new source standard of performance. U. "Major modification" means any physical change in or ch ange in the method of operation of a major stationary source that would result in a significant emissions increase of a regulated new source review pollutant (as defined in this section); and a significant net emissions increase of that pollutant from the major stationary source. Any significant emissions increase (as defined in this section) from any emissions units or net emissions increase (as defined in this section) at a major stationary source that is significant for volatile organic compounds or oxides of nitrogen shall be considered significant for ozone. (1) A physical change or change in the method of operation shall not include: (a) routine maintenance, repair, and replacement; (b) use of an alternative fuel or raw materialby reason of an order under Section 2 (a) and (b) of the Energy Supply and Environmental Coordination Act of 1974 (or any superseding legislation) or by reason of a natural gas curtailment plan pursuant to the federal Power Act; (c) use of an alternative fuel by reason of an order or rule under Section 125 of the federal Clean Air Act; (d) use of an alternative fuel at a steam generating unit to the extent that the fuel is generated from municipal solid waste; (e) use of an alternative fuel or raw material by a stationary source which: (i) the source was capable of accommodating before December 21, 1976, unless such change would be prohibited under any federally enforceable permit condition which was established after December 21, 1976 pursuant to 40 CFR 52.21 or under regulations approved pursuant to 40 CFR 51.165 or 40 CFR 51.166; or (ii) the source is approved to use under any permit issued under 40 CFR 52.21 or under regulations approved pursuant to 40 CFR 51.166; (f) an increase in the hours of operation or in the production rate, unless such change would be prohibited under any federally enforceable permit which wa s established after December 21, 1976, pursuant to 40 CFR 52.21 or under regulations approved pursuant to 40 CFR 51.165 or 40 CFR 51.166; (g) any change in ownership at a stationary source; or (h) the installation, operation, cessation, or removal of a temporary clean coal technology demonstration project, provided that the project complies withthe state implementation planfor the state in which is project is located, and other requirements necessary to attain and maintain the national ambient air quality standards during the project and after it is terminated. (2) This definition shall not apply with respect to a particular regulated new source review pollutant when the major stationary source is complying with the requirements under 20.2.79.120 NMAC for a plantwide applicability limit for that pollutant. Instead, the definition at Paragraph (8) of Subsection B of 20.2.79.120 NMAC shall apply.

### 20.2.79 NMAC 5 (3) For the purpose of applying the requirements of Subsection H of 20.2.79.109 NMAC to modifications at major stationary sources of nitrogen oxides located in ozone nonattainment areas or in ozone transport regions, whether or not subjectto subpart 2, part D, title I of the federal Clean Air Act, any significant net emissions increase of nitrogen oxides is considered significant for ozone. (4) Any physical change in, or change in the method of operation of a major stationary source of volatile organic compounds that results in any increase in emissions of volatile organic compounds from any discrete operation, emissions unit, or other pollutant emitti ng activity at the source shall be considered a significant net emissions increase and a major modification for ozone, if the major stationary source is located in an extreme ozone nonattainment area that is subject to subpart 2, part D, title I of the federal Clean Air Act. V. "Major stationary source" means the following. (1) Any stationary source of air pollutants which emits, or has the potential to emit, 100 tons per year or more of any regulated new source review pollutant, except that lower emissions thresholds shall apply in areas subject to subpart 2, subpart 3, or subpart 4 of part D, title I of the federal Clean Air Act, according to Subparagraphs (a) through (f) of Paragraph (1) of Subsection V of 20.2.79.7 NMAC. (a) 50 tons per year of volatile organic compounds in any serious ozone nonattainment area. (b) 50 tons per year of volatile organic compounds in an area within an ozone transport region, except for any severe or extreme ozone nonattainment area. (c) 25 tons per year of volatile organic compounds in any severe ozone nonattainment area. (d) 10 tons per year of volatile organic compounds in any extreme ozone nonattainment area. (e) 50 tons per year of carbon monoxide in any serious nonattainment area for carbon monoxide, where stationary sources contribute significantly to carbon monoxide levels in the area (as determined under rules issued by the United States environmental protection agency administrator). (f) 70 tons per year of PM10 in any serious nonattainment area for PM10. (2) For the purposes of applying the requirements of Subsection H of 20.2.79.109 NMAC to stationary sources of nitrogen oxides located in an ozone nonattainment area or in an ozone transport region, any stationary source which emits, or has the potential to emit, 100 tons per year or more of nitrogen oxides emissions, except that the emission thresholds in Subparagraphs (a) through (f) of Paragraph (1) of Subsection V of 20.2.79.7 NMAC shall apply in areas subject to subpart 2 of part D, title I of the federal Clean Air Act. (a) 100 tons per year or more of nitrogen oxides in any ozone nonattainment area classified as marginal or moderate. (b) 100 tons per year or more of nitrogen oxides in any ozone nonattainment area classified as a transitional, submarginal, or incomplete or no data area, when such area is located in an ozone transport region. (c) 100 tons per year or more of nitrogen oxides in any area designated under section 107(D) if the federal Clean Air Act as attainment or unclassifiable for ozone that is located in an ozone transport region. (d) 50 tons per year or more of nitrogen oxides in any serious nonattainment area for ozone. (e) 25 tons per year or more of nitrogen oxides in any severe nonattainment area for ozone. (f) 10 tons per year or more of nitrogen oxides in any extreme nonattainment area for ozone; or (3) Any physical change that would occur at a stationary source not qualifying under Paragraph (1) or (2) of this definition as a major stationary source, if the change would constitute a major stationary source by itself. (4) A major stationary source that is major for volatile organic compounds or oxides of nitrogen shall be considered major for ozone. (5) A stationary source shall not be a major stationary source due to fugitive emissions, to the extent they are quantifiable, unless the source belongs to: (a) any category in Subsection B of 20.2.79.119 NMAC; or (b) any other stationary source category which as of August 7, 1980 is being regulated under Secti on 111 or 112 of the federal Clean Air Act. (6) A stationary source shall not be a major stationary source due to secondary emissions. W. "Mandatory federal class I area" means those federal lands that are international parks, national wilderness areas which exceed five thousand (5,000) acres in size, national memorial parks which exceed five thousand (5,000) acres in size, and national parks which exceed six thousand (6 ,000) acres in size, and which were in existence on August 7, 1977. These areas may not be redesignated. X. "Natural conditions" includes naturally occurring phenomena that reduce visibility as measured in terms of visual range, contrast or coloration. Y. "Necessary preconstructi on approvals or permits" means those permits or approvals required under federal air quality control laws and regulations and those air quality control laws and regulations which are part of the applicable state implementation plan.

### 20.2.79 NMAC 6 Z. "Net emissions increase". (1) With respect to any regulated new source review pollutant emitted by a major stationary source, the amount by which the sum of the following exceeds zero: (a) the increase in emissions from a particular physical change or ch ange in the method of operation at a stationary source as calculated pursuant to Subsection E of 20.2.79.109 NMAC; and (b) any other increases and decreases in actual emissions at the major stationary source that are contemporaneous with the particular change and are otherwise creditable; baseline actual emissions for calculating increases and decreases shall be determined as provided in Subsection E of this section, except that Subparagraphs (c) and (d) of Paragraph (2) of Subsection E of this section shall not apply. (2) An increase or decrease in actual emissionsis contemporaneous with the increase from the particular change only if it occurs within the time period five years prior to the commencement of construction on the particular change and the date that the increase from the particular change occurs; (3) An increase or decrease in actual emissions is creditable only if: (a) it occurs within the time period five years prior to the commencement of construction on the particular change and the date that the increase from the particular change occurs; and (b) either the department or the administrator has not relied on it in issuing a permit for the source under regulations approved pursuant to this section, which permit is in effect when the increase in actual emissions from the particular change occurs. (4) An increase in actual emissions is creditable only to the extent that the new level of actual emissions exceeds the old level. (5) A decrease in actual emissions is creditable only to the extent that: (a) the old level of actual emissions or the old level of allowable emissions whichever is lower, exceeds the new level of actual emissions; (b) it is enforceable as a practical matter at and after the time that actual construction on the particular change begins; (c) the department has not relied on it in issuing any permit under regulations approved pursuant to 40 CFR Part 51 Subpart I or the state has not relied on it in demonstrating attainment or reasonable further progress; and (d) it has approximately the same qualitative significance for public health and welfare as that attributed to the increase from the particular change. (6) An increase that results from a physical ch ange at a source occurs wh en the emissions unit on which construction occurred becomes operational and beginsto emit a particular po llutant. Any replacement unit that requires shakedown becomes operational only after a reasonable shakedown period, not to exceed 180 days. (7) Paragraph (1) of Subsection A of this section shall not apply for determining creditable increases and decreases or after a change. AA. "Nonattainment area" means, for any air pollutant an area which is shown by monitored data or which is calculated by air quality modeling (or other methods determined by the administrator to be reliable) to exceed any national ambient air quality standard for such pollutant. Such term includes any area identified under Subparagraphs (A) through (C) of Section 107(d)(1) of the federal Clean Air Act. AB. "Nonattainment major new source review (NSR) program" means a major source preconstruction permit program that has been approved by the administrator and incorporated into the New Mexico state implementation plan to implement the requirements of 40 CFR 51.165, or a program that implements 40 CFR Part 51, Appendix S, Sections I through VI. Any permit issued under such a program is a major new source review permit. AC. "Part" means an air quality control regulation under Title 20, Chapter 2 of the New Mexico Administrative Code, unless otherwise noted; as adopted or amended by the board. AD. "Portable stationary source" means a source which can be relocated to another operating site with limited dismantling and reassembly. AE. "Potential to emit" means the maximum capacity of a stationary source to emit a pollutant under its physical and operational design. Any physical or operational limitation on the capacity of the source to emit a pollutant, including air pollution control equipment and restrictions on hours of operation or on the type or amount of material combusted, stored, or processed, shall be treated as part of its design only if the limitation or the effect it would have on emissions is federally enforceable. AF. "Predictive emissions monitoring system" (PEMS) means all of the equipment necessary to monitor process and control device operational parameters (for example, control device secondary voltages and

### 20.2.79 NMAC 7 electric currents) and other information (for example, gas flow rate, oxygen or carbon dioxide concentrations), and calculate and record the mass emissions rate (for example, pounds per hour) on a continuous basis. AG. "Prevention of significant deterioration (PSD) permit" means any permit that is issued under 20.2.74 NMAC. AH. "Project" means a physical change in, or change in the method of operation of, an existing major stationary source. AI. "Projected actual emissions" means, the maximum annual rate, in tons per year, at which an existing emissions unit is projected to emit a regulated new source review pollutant in any one of the 5 years (12- month period) following the date the unit resumes regular operation after the project, or in any one of the 10 years following that date, if the project involves increasing the emissions unit's design capacity or its potential to emit of that regulated new source review pollutant and full utilization of the unit would result in a significant emissions increase or a significant net emissions increase at the major stationary source. In determining the projected actual emissions before beginning actual construction, the owner or operator of the major stationary source: (1) shall consider all relevant information, including but not limited to, historical operational data, the company's own representations, the company's expected bus iness activity and the company's highest projections of business activity, the company's filings with the state or federal regulatory authorities, and compliance plans under the approved plan; and (2) shall include fugitive emissions to the extent quantifiable, and emissions associated with startups, shutdowns, and malfunctions; and (3) shall exclude, in calculating any increase in emissions that results from the particular project, that portion of the unit's emissions following the project that an existing unit could have accommodated during the consecutive 24-month period used to establish the baseline actual emissions under Subsection E of this section and that are also unrelated to the particular project, including any increased utilization due to product demand growth;

or, (4) in lieu of using the method set out in Paragraphs (1) through (3) of this subsection, may elect to use the emissions unit's potential to emit, in tons per year, as defined under Subsection AE of this section. AJ. "Regulated new so urce review pollutant" , for purposes of this section, means the following: (1) nitrogen oxides or any volatile organic compounds; (2) any pollutant for which a national ambient air quality standard has been promulgated; or (3) any pollutant that is a constituent or precursor of a general pollutant listed in Paragraphs (1) or (2) of this subsection, provided that a constituent or precursor pollutant may only be regulated under new source review as part of regulation of the general pollutant. AK. "Replacement Unit" means an emission unit for which all of the following criteria are met. No creditable emission reductions shall begenerated from shutting down the existing emissions unit that is replaced. (1) The emissions unit is a reconstructed unit within the meaning of 40 CFR 60.15(b)(1), or the emissions unit completely takes the place of an existing emissions unit. (2) The emissions unit is identical to or functionally equivalent to the replaced emissions unit. (3) The replacement unit does not change the basic design parameter(s) of the process unit. (4) The replaced emissions unit is permanently removed from the major stationary source, otherwise permanently disabled, or permanently barred from operation bya permit that is enforceable as a practical matter. If the replaced emissions unit is brought back into operation, it shall constitute a new emissions unit. AL. "Secondary emissions" means emissions which would occur as a result of the construction or operation of a major stationary source or major modification, but do not come from the major stationary source or major modification itself. For the purpose of this section, secondary emissions must be specific, well defined, quantifiable, and impact the same general area as the stationary source or modification which causes the secondary emissions. Secondary emissions include emissions from any offsite support facility which would not be constructed or increase its emissions except as a result of the construction or operation of the major stationary source or major modification. Secondary emissions do not include any emissions which come directly from a mobile source, such as emissions from the tailpipe of a motor vehi cle, from a train, or from a vessel. AM

."Significant" means: (1) In reference to a net emissions increase or the potential of a source to emit any of the following pollutants, a rate of emissions that would equal or exceed any of the following rates: carbon monoxide, 100 tons per year; nitrogen oxides, 40 tons per year; sulfur dioxide, 40 tons per year; PM-10 emissions, 15 tons per year; ozone, 40 tons per year of volatile organic compounds or nitrogen oxides; lead, 0.6 tons per year. (2) Notwithstanding the significant emissions rate for ozone in Paragraph (1) of Subsection AM of 20.2.79.7 NMAC, significant means, in reference to an emissions increase or a net emissions increase, any increase

### 20.2.79 NMAC 8 in actual emissions of volatile organic compounds that would result from any physical change in, or change in the method of operation of, a major stationary source locating in a serious or severe ozone nonattainment area that is subject to subpart 2, part D, title I of the federal CleanAir Act, if such emissions increase of volatile organic compounds exceeds 25 tons per year. (3) For the purposes of applying the requirements of Subsection H of 20.2.79.109 NMAC to modifications at major stationary sources of nitrogen oxides located in an ozone nonattainment area or in an ozone transport region, the significant emission rates and other requirements for volatile organic compounds in Paragraphs (1), (2), and (5) of Subsection AM of 20.2.79.7 NMAC shall apply to nitrogen oxides emissions. (4) Notwithstanding the significant emissions rate for carbon monoxide under Paragraph (1) of Subsection AM of 20.2.79.7 NMAC significant means, in reference to an emissions increase or a net emissions increase, any increase in actual emissi ons of carbon monoxide that would result from any physical change in, or change in the method of operation of, a major stationary source in a serious nonattainment area for carbon monoxide if such increase equals or exceeds 50 tons per year, provided the U.S. environmental protection agency administrator has determined that stationary sources contribute si gnificantly to carbon monoxide levels in that area. (5) Notwithstanding the significant emissions rates for ozone under Paragraphs (1) and (2) of Subsection AM of 20.2.79.7 NMAC, any increase in actual emissions of volatile organic compounds from any emissions unit at a major stationary source of volatile organic compounds located in an extreme ozone nonattainment area that is subject to subpart 2, part D, title I of the federal Clean Air Act shall be considered a significant net emissions increase. AN. "Significant emissions increase" means, for a regulated new source review pollutant, an increase in emissions that is significant (as defined in Subsection AM of this section) for that pollutant. AO. "Stationary source" means any building, structure, facility, or installation which emits or may emit any regulated new source review pollutant. AP. "Temporary source" means a stationary source which changes its location or ceases to exist within one year from the date of initial start of operations. AQ. "Visibility impairment" means any humanly perceptible change in visibility (visual range, contrast, coloration) from that which would have existed under natural conditions. [11/30/95; 20.2.79.7 NMAC - Rn, 20 NMAC 2.79.107, 10/31/02; A, 1/22/06; A, 08/31/09]

20.2.79.8 AMENDMENT AND SUPERSESSION OF PRIOR REGULATIONS: This Part amends and supersedes Air Quality Control Regulation ("AQCR") 709 -- Permits -- Nonattainment Areas last filed June 25, 1992, as amended ("AQCR 709"). A.All references to AQCR 709 in any other rule shall be construed as a reference to this Part. B.The amendment and supersession of AQCR 709 shall not affect any administrative or judicial enforcement action pending on the effective date of such amendment nor the validity of any permit issued pursuant to AQCR 709. [11/30/95; 20.2.79.8 NMAC - Rn, 20 NMAC 2.79.106, 10/31/02]

20.2.79.9 DOCUMENTS: Documents cited in this Part may beviewed at the New Mexico Environment Department, Air Quality Bureau, Harold Runnels Building, 1190 St. Francis Drive, Santa Fe, NM 87505 [2048 Galisteo St., Santa Fe, NM 87505]. [11/30/95; 20.2.79.9 NMAC - Rn, 20 NMAC 2.79.108, 10/31/02]

20.2.79.10 SEVERABILITY.If any provision of this part, or the application of such provision to any person or circumstance, is held invalid, the remainder of this part, or the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby. [20.2.79.10 NMAC - N, 1/22/06]

20.2.79.11 CONSTRUCTION.This part shall be liberally construed to carry out its purpose. [20.2.79.11 NMAC - N, 1/22/06]

20.2.79.12 SAVINGS CLAUSE.Repeal or supersession of prior versions of this part shall not affect any administrative or judicial action initiated under those prior versions. [20.2.79.12 NMAC - N, 1/22/06]

### 20.2.79 NMAC 9 20.2.79.13 COMPLIANCE WITH OTHER REGULATIONS.Compliance with this part does not relieve a person from the responsibility to comply with any other applicable federal, state, or local regulations. [20.2.79.13 NMAC - N, 1/22/06]

20.2.79.14 LIMITATION OF DEFENSE. The existence of a valid permit under this part shall not constitute a defense to a violation of any section of this part, except the requirement for obtaining a permit. [20.2.79.14 NMAC - N, 1/22/06]

20.2.79.15 to 20.2.79.108[RESERVED]

20.2.79.109 APPLICABILITY. A.Any person constructing any new major stationary source or major modification shall obtain a permit from the department in accordance with the requirements of this part prior to the start of construction or modification if either of the following conditions apply: (1) the major stationary source or major modification will be located within a nonattainment area so designated pursuant to Section 107 of the federal Clean Air Act and will emit a regulated pollutant for which it is major and which the area is designated nonattainment for; or (2) the major stationary source or major modification will be located within an area designated attainment or unclassifiable pursuant to Section 107 of the federal Clean Air Act and will emit a regulated pollutant for which it is major and the ambient impact of such pollutant would exceed any of the significance levels in Subsection A of 20.2.79.119 NMAC at any location that does not meet any national ambient air quality standard for the same pollutant. (See Subsection D of 20.2.79.109 NMAC.) B.The requirements of this part apply to each re gulated pollutant meeting the criteria of either Paragraph (1) or Paragraph (2) of Subsection A of 20.2.79.109 NMAC. C.For an area which is nonattainment for ozone, volatile organic compounds and oxides of nitrogen are the regulated pollutants which may make this part applicable under the provisions of Paragraph (1) of Subsection A of 20.2.79.109 NMAC. D.Other requirements. (1) A new major stationary source or major modification which meets the criteria of Paragraph (2) of Subsection A of 20.2.79.109 NMAC shall demonstrate that th e source or modification will not cause or contribute to a violation of any national ambient air quality standard by meeting the following requirements and no others of this part: (a) Paragraph (2) of Subsection C of 20.2.79.112 NMAC regarding emission offsets; (b) Subsection D of 20.2.79.112 NMAC regarding a net air quality benefit; (c) 20.2.79.114 NMAC - Emission Offset Baseline; (d) 20.2.79.115 NMAC - Emission Offset; and (e) 20.2.79.117 NMAC - Air Quality Benefit. (2) In addition , a new source or modification which meets the criteria of Paragraph (2) of Subsection A of 20.2.79.109 NMAC and is also a major stationary source or major modification as defined in 20.2.74 NMAC (prevention of significant deterioration (PSD)), shall obtain a PSD permit under the provisions of 20.2.74 NMAC. E.Applicability procedures. (1) Except as otherwise provided in Paragraphs (3) and (4) of this subsection, and consistent with the definition of major modification, a project is a major modification for a regulated new source review pollutant if it causes two types of emissions increases - a significant emissions increase (as defined in Subsection AM of 20.2.79.7 NMAC), and a significant net emissions increase (as defined in Subsections Z and AM of 20.2.79.7 NMAC). The project is not a major modification if it does not cause a significant emissions increase. If the project causes a significant emissions increase, then the project is a major modification only if it also results in a significant net emissions increase. (2) The procedure for calculating (before beginning actual construction) whether a significant emissions increase (i.e., the first step of the process) will occur depends upon the type of emissions units being modified, according to Paragraphs (3) and (4) of this subsection. The procedure for calculating (before beginning actual construction) whether a significant net emissions increase will occur at the major stationary source (i.e., the second step of the process) is contained in the definition of net emissions increase. Regardless of any such preconstruction projections, a major modification results if the project causes a si gnificant emissions increase and a significant net emissions increase.

### 20.2.79 NMAC 10 (3) Actual-to-projected-actual applicability test for projects that involve existing emissions units. A significant emissions increase of a regulated new source revi ew pollutant is projected to occur if the sum of the difference between the projected actual emissions and the baseline actual emissions (as defined in Paragraphs (1) and (2) of Subsection E of 20 .2.79.7 NMAC, as applicable), for each exis ting emissions unit, equals or exceeds the significant amount for that pollutant (as defined in Subsection AM of 20.2.79.7 NMAC). (4) Actual-to-potential test for projects that involve construction of a new emissions unit(s). A significant emissions increase of a regulated new source revi ew pollutant is projected to occur if the sum of the difference between the potential to emit from each new emi ssions unit following completion of the project and the baseline actual emissions (as defined in Paragraph (3) of Subsection E of 20.2.79.7 NMAC) of these units before the project equals or exceeds the significant amount for that pollutant (as defined in Subsection AM of 20.2.79.7 NMAC). (5) Hybrid test for projects that involve multiple types of emissions units. A significant emissions increase of a regulated NSR pollutant isprojected to occur if the sum of the emissions increases for each emissions unit, using the method specified in Paragraphs (3) and (4) of this subsection as applicable with respect to each emissions unit, for each type of emi ssions unit equals or exceeds the signif icant amount for that pollutant. For example, if a project involv es both an existing emissions unit and a new emissions unit, the projected increase is determined by summing the values determined using the method specified in Paragraph (3) of this subsection for the existing unit and determined using the method specified in Paragraph (4) of this subsection for the new unit. (6) For any major stationary source for a PAL for a regulated new source review pollutant, the major stationary source shall comply with requirements under 20.2.79.120 NMAC. F.The following specific provisions apply to projects at existing emissions units at a major stationary source (other than projects at a source with a PAL) in circumstanceswhere the owner or operator elects to use the method specified in Paragraphs (1) through (3) of Subsection AI of 20.2.79.7 NMAC for calculating projected actual emissions. (1) Before beginning actual construction of the project, the owner or operator shall document and maintain a record of the following information: (a) a description of the project; (b) identification of the emissions unit(s) whose emissions of a regulated new source review pollutant could be affected by the project; and (c) a description of the applicability test used to determine that the project is not a major modification for any regulated new source review pollutant , including the baseline actual emissions, the projected actual emissions, the amount of emissions excluded under Paragraph (3) of Subsection AI of 20.2.79.7 NMAC and an explanation for why such amount was excluded, and any netting calculations, if applicable. (2) If the emissions unit is an existing electric utility steam generating unit, before beginning actual construction, the owner or operator shall provide a copy of the information set out in Paragraph (1) of this subsection to the department. Nothing in this paragraph shall be construed to require the owner or operator of such a unit to obtain any determination from the department; however, necessary preconstruction approvals and/or permits must be obtained before beginning actual construction. (3) The owner or operator shall monitor the emissions of any regulated new source review pollutant that could increase as a result of the project and that is emitted by any emissions units identified in Subparagraph (b) of Paragraph (1) of this subsection; and calculate and mainta in a record of the annual emissions, in tons per year on a calendar year basis, for a period of 5 years following resumption of regular operations after the change, or for a period of 10 years following resumption of regular operations after the change if the project increases the design capacity or potential to emit of that regulated new source review pollutant at such emissions unit. (4) If the unit is an existing electric utility steam generating unit, the owner or operator shall submit a report to the department within 60 days after the end of each year during which records must be generated under Paragraph (3) of this subsection setting out the unit's annual emissions during the year that preceded submission of the report. (5) If the unit is an existing unit other than an electric utility steam generating unit, the owner or operator shall submit a report to the department if the annual emissions, in tons per year, from the project identified in Paragraph (1) of this subsection, exceed the baseline actual emissions (as documented and maintained pursuant to Subparagraph (c) of Paragraph (1) of this subsection, by a significant amount (as defined in Subsection AM of 20.2.79.7 NMAC) for that regulated new source review pollutant, and if such emissions differ from the preconstruction projection as documented and maintained pursuant to Subparagraph (c) of Paragraph (1) of this subsection. Such report shall be submitted to the department within 60 days after the end of such year. The report shall contain the following:

### 20.2.79 NMAC 11 (a) the name, address and telephone number of the major stationary source; (b) the annual emissions as calculated pursuant to Paragraph (3) of this subsection; and (c) any other information that the owner or operator wishes to include in the report (e.g., an explanation as to why the emissions differ from the preconstruction projection). G.The owner or operator of the source shall make the information required to be documented and maintained pursuant to Subsection F of this section (20.2.79.109 NMAC) available for review upon a request for inspection by the department or the general public pursuant to the requirements contained in 40 CFR 70.4(b)(3)(viii). H. The requirements of this section (20.2.79.109 NMAC) applicable to major stationary sources and major modifications of volatile organic compounds shall apply to nitrogen oxides emissions from major stationary sources and major modifications of nitrogen oxides in an ozone transport region or in any ozone nonattainment area, except in ozone nonattainment areas or in portions of an ozone transport region where the U.S. environmental protection agency administrator has granted a NO X 

### waiver applying the standards set forth under section 182(f) of the federal Clean Air Act and the waiver continues to apply. I.In meeting the emissions offset requirements of 20.2.79.115 NMAC for ozone nonattainment areas that are subject to subpart 2, part D, title I of the cl ean air act, the ratio of total actual emissions reductions of VOC to the emissions increase of VOC shall be as follows: (1) in any marginal nonattainment area for ozone, at least 1.1:1; (2) in any moderate nonattainment area for ozone, at least 1.15:1; (3) in any serious nonattainment area for ozone, at least 1.2:1; (4) in any severe nonattainment area for ozone, at least 1.3:1 (except that the ratio may be at least 1.2:1 if the approved state implementation plan also require s all existing major sources in such nonattainment area to use BACT for the control of VOC); and (5) in any extreme nonattainment area for ozone, at least 1.5:1 (except that the ratio may be at least 1.2:1 if the approved state implementation plan also require s all existing major sources in such nonattainment area to use BACT for the control of VOC. J. Notwithstanding the requirements of Paragraph (1) of Subsection I of 20.2.79.109 NMAC for meeting the requirements of 20.2.79.115 NMAC, the ratio of total actual emissions reductions of VOC to the emissions increase of VOC shall be at least 1.15:1 for all areas within an ozone transport region that is subject to subpart 2, part D title I of the federal Clean Air Act, ex cept for serious, severe, and extreme ozone nonattainment areas that are subject to subpart 2, part D, title I of the federal Clean Air Act. K. Meeting the emissions offset requirements of 20.2.79.115 NMAC for ozone nonattainment areas that are subject to subpart 1, part D, title I of the clean air act, including 8-hour ozone nonattainment areas subject to 40 CFR 51.902(b), the ratio of total actual emissions increase of VOC shall be at least 1:1. L. The requirements of 20 .2.79.109 NMAC applicable to major stationary sources and major modifications of PM10 shall also apply to major stationary sources and major modifications of PM10 precursors except where the US. environmental protection agency administrator determines that such sources do not contribute significantly to PM10 levelsthat exceed the PM10 ambient standards in the area. [11/30/95; 20.2.79.109 NMAC - Rn, 20 NMAC 2.79.109, 10/31/02; A, 1/22/06; A, 08/31/09]

20.2.79.110 SOURCE OBLIGATION: A.The requirements of this Part shall apply as though construction had not yet commenced at the time that a source or modification beco mes a major source or major modification solely due to a relaxation in any enforceable limitation established after August 7, 1980. B.The issuance of a permit by the Department shall not relieve any owner or operator of the responsibility to comply with the provisions of the Air Quality Control Act, sections 74-2-1 to 74-2-17, NMSA 1978, any applicable regulations of the Board, and any other requirements under local, state, or federal law. C.Any owner or operator who commences construction or operates a major stationary source or major modification without, or not in accordance with, a permit issued under the requirements of this Part shall be subject to enforcement action. D.Approval to construct shall become invalid if construction is not commenced within 18 months after receipt of such approval, if construction is discontinued for a period of 18 months or more, or if construction is not completed within a reasonable time. For a phased construction project, each phase must commence construction within 18 months of the projected and approved commencement date. The Secretary may extend the 18-month period upon a satisfactory showing th at an extension is justified.

### 20.2.79 NMAC 12 E.For phased construction projects, the determination of the lowest achievable emission rate shall be reviewed and modified as appropriate at the latest reasonable time but no later than 18 months prior to commencement of construction of each independent phase of the project. At suchtime, the owner or operator of the applicable stationary source may be required to demonstrate the adequacy of any previous determination of lowest achievable emission rate. F.If the owner or operator previously issued a permit under this Part applies for an extension as provided for under subsection D of 20.2.79.110 NMAC, and the new proposed date of construction is greater than 18 months from the date the permit would become invalid, the determination of lowest achievable emission rate shall be reviewed and modified as appropriate before such an extension is granted. At such time, the owner or operator may be required to demonstrate the adequacy of any previous determination of lowest achievable emission

rate. [11/30/95; 20.2.79.110 NMAC - Rn, 20 NMAC 2.79.110, 10/31/02]

20.2.79.111 APPLICATION CONTENTS: The owner or operator of a proposed major stationary source or major modification shall submit all information necessary to perform any analysis or make any determination required under this Part. The items of this section are required before the Department may deem an application administratively complete. All applications shall include: A.All information required by subsection A of 20.2.72.203 NMAC; and B.A detailed schedule for construction of the major stationary source or major modification; and C.A detailed description of the planned system of continuous emission reduction to be implemented, emission estimates, and other information necessary to demonstrate that the lowest achievable emission rate or any other applicable emission limitation will be maintained [11/30/95; A, 01/01/00; 20.2.79.111 NMAC - Rn, 20 NMAC 2.79.111, 10/31/02]

20.2.79.112 SOURCE REQUIREMENTS: In order for a permit to be granted, all of the following conditions shall be met: A.The major stationary source or major modification shall be designed such that the lowest achievable emission rate (LAER) will be met and maintained for each pollutant emitted which is subject to this Part; B.The owner or operator of the proposed new or modified source has demonstrated that all existing major stationary sources owned or operated by such person (or any entity controlling, controlled by, or under common control with such person) in this state are in co mpliance with, or on a schedule for compliance, with all applicable emission limitations and standards, under the Federal Act, and all conditions in a federally enforceable permit; C.Emission Reductions: (1) Emission reductions (offsets) at existing sources shall occur prior to or concurrent with the start of operation of the proposed major stationary source or major modification for each pollutant emitted which is subject to this Part. As a general rule, such offsets shall be at least twenty percent (20%) greater than the allowable emissions of the proposed new major stationary source or major modification, and shall assure that the total tonnage of increased emissions of the air pollutant from the new or modified source shall be offset by an equal or greater reduction in the actual emissions of such air pollutant from the same or other sources in the area. An offset less than twenty percent (20%) but at least ten percent (10%, or 1:1. 1 ratio), may be allowed if reasonable progress toward the attainment of the applicable NAAQS will be achieved. A hi gher level of offset reduction may be required in order to demonstrate that a net air quality benefit will occur; or (2) A new major stationary source or major modification which is subject to the requirements of subsection D of 20.2.79.109 NMAC shall obtain sufficient emission reductions to, at a minimum, compensate for its adverse ambient impact where the major stationary s ource or major modification would otherwise cause or contribute to a violation of any national ambient air quality standard. D.Emission offsets shall provide a net air quality benefit in the area where the national ambient air quality standard for that pollutant is violated; and E.The owner or operator of the proposed major stationary source or major modification has conducted an analysis of alternative sites, sizes, production processes, and environmental control techniques for such proposed source which demonstrates that benefits of the proposed source significantly outweigh the environmental and social costs imposed as a result of its location, construction, or modification. F.The proposed major stationary source or major modification will meet all applicable emission requirements in the New Mexico State Implementation Plan , any applicable new source performance standard in 40 CFR Part 60, and any national emission standard for hazardous air pollutants in 40 CFR Part 61.

### 20.2.79 NMAC 13 [11/30/95; A, 10/01/97; 20.2.79.112 NMAC - Rn, 20 NMAC 2.79.112, 10/31/02]

20.2.79.113 ADDITIONAL REQUIREMENTS FOR SOURCES IMPACTING MANDATORY FEDERAL CLASS I AREAS: A.The requirements of this section apply only to proposed major stationary sources or major modifications that meet the criteria of paragraph (1) of subsection A of 20.2.79.109 NMAC and that also are major stationary sources or major modifications as defined in 20.2.74 NMAC. A major stationary source or major modification which meets the criteria of paragraph (2) of subsection A of 20.2.79.109 NMAC may be subject to requirements for Federal Class I Areas in 20.2.74 NMAC if that Part applies. B.The Department shall transmit to the Administ rator and any affected Federal Land Manager a copy of each permit application and any information relevant to any proposed major stationary source or major modification which may have an impact on visibility in any mandatory Federal Class I area. Relevant information will include an analysis of the proposed source's anticipatedimpacts on visibility in the Federal Class I area. The application shall be transmitted within thirty (30) days of receipt by the Department and at least sixty (60) days prior to any public hearing on the application. Additionally , the Department shall notify any affected Federal Land Manager within thirty (30) days from the date the Depart ment receives a request for a pre-application meeting from a proposed source subject to this Part. The Department sh all consult with the affected Federal Land Manager prior to making a determination of completeness for any such permit application. The Department shall also provide the Federal Land Manager and the Administrator with a copy of the preliminary determination on the permit application and shall make available to them any materials used in making that determination. C.The owner or operator of any proposed major stationary source or major modification which may have an impact on visibility in a mandatory Federal Class I area shall include in the permit application an analysis of the anticipated impacts on visibility in such areas. D.The Department may require monitoring of visibility in any mandatory Federal Class I area where the Department determines an adverse impact on visibility may occur due to the operations of the proposed new source or modification. Such monitoring shall be conducted following procedures approved by the Department and subject to the following conditions: (1) Visibility monitoring methods specified by the Department shall be reasonably available and not require any research and development; and (2) Both preconstruction and post construction visibility monitoring may be required. In each case, the duration of such monitoring shall not exceed one year. E.The Department shall consider any analysis with respect to visibility impacts provided by the Federal Land Manager if it is received within thirty (30) da ys from the date a complete application is given to the Federal Land Manager. In any case where the Department disagrees with the Federal Land Manager's analysis, the Department shall either explain its decision to the Federal Land Manager or give notice as to where the explanation can be obtained. In the case where the Department di sagrees with the Federal Land Manager's analysis, the Department will also explain its decision or give notice tothe public by means of an advertisement in a newspaper of general circulation in the area in which the proposed source would be constructed as to where the decision can be obtained. F.In making its determination as to whether or not toissue a permit, the Department shall ensure that the source's emissions will be consistent with making reasonable progress toward the national visibility goal of preventing any future impairment of visibility in mandatory Federal Class I areas. The Department may take into account the costs of compliance, the time necessary for compliance, the energy and non -air quality environmental impacts of compliance, and the useful life of the source. [11/30/95; 20.2.79.113 NMAC - Rn, 20 NMAC 2.79.113, 10/31/02]

20.2.79.114 EMISSION OFFSET BASELINE: The baseline for determining credit for emission offsets shall be the most stringent emissions limitation pursuant to a New Mexico air quality regulation or federally enforceable permit which is applicable and in effect at the time the application to construct is filed. If neither a state air quality regulation nor a federally enforceable permit contains an emissions limitation for the source, the baseline shall be the actual emissions of the source from which offs et credit is obtained. Where a source is subject to an emission standard established in a New Source Performance Standard (NSPS) or a National Emission Standard for Hazardous Air Pollutants (NESHAPS) and a different State Implementation Plan or permit limitation, including any emission limitation used in demonstrating reasonable further progress, the more stringent emission standard shall be used as the baseline for determining credit for emission offsets. [ 1 1/30/95; 20.2.79.114 NMAC - Rn, 20 NMAC 2.79.114, 10/31/02]

### 20.2.79 NMAC 14 20.2.79.115 EMISSION OFFSETS.All emission offsets approved bythe department shall meet the following criteria. A.All emission reductions claimed as offset credit sh all be from decreases of the same pollutant for which the offset is required. B.All emission reductions claimed as offset credit shall occur prior to or concurrent with the start of operation of the proposed source. In addition, past reductio ns must have occurred later than the date upon which the area became nonattainment in order to be creditable. C.For the case where emission reductions claimed as of fset credit occur at the source subject to this part, such reductions shall be a condition required by a federally enforceable permit. For the case where emission reductions claimed as offset credit occur at a neighboring source, such reductions shall be incorporated as modifications to pertinent federally enforceable permits held by the neighboring source. If the neighboring source has no relevant permits, the reductions shall be approved as a revision to the state implementation plan by the board. D.Offset credit for any emissions reduction can be claimed only to the extent that the department or U.S. EPA has not relied on it in previously issuing any permit or in demonstrating attainment or reasonable further
progress. E.No emissions reduction credit shall be allowed for replacing one volatile organic compound with another of lesser reactivity, except as approved by the U. S. EPA reactivity guidance found at 42 Federal Register 35314, (1977), and any amendments thereto. F.Emission reduction credit may be allowed for a source permanently curtailing production or operating hours below baseline levels provided that the work force to be affected has been notified of the curtailment. (1) Emissions reductions achieved by shutting down an existing emission unit or curtailing production or operating hours below baseline levels may begenerally credited for offsets if such reductions are permanent, quantifiable, and federally enforceable. In addition, the shutdown or curtailment is creditable only if it occurred after the date of the most recent emissions inventory used in the state implementation plan's demonstration of attainment. However, in no event may credit be given for shutdowns which occurred prior to August 7, 1977. For purposes of this paragraph, a permitting authority may choose to consider a prior shutdown or curtailment to have occurred after the date of the base year inventory, if the projected inventory used to develop the attainment demonstration explicitly includes the emissions from such previously shutdown or curtailed emission units. (2) Such reductions may be credited in the absence of an approved attainment demonstration only if the shutdown or curtailment occurred on or after the datethe new source permit application is filed, or, if the applicant can establish that the proposed new emission unit is a replacement for the shutdown or curtailed emission unit, and the provisions of Paragraph (1) of Subsection F of 20.2.79.7 NMAC are observed. G.Where the most stringent emissions limit which is applicable allows greater emissions than the potential to emit of the offsetting source, emission offset credit will be allowed only for control below the potential to emit of the source. H.The emission limit for determining emission offset credit involving an existing fuel combustion source shall be the most stringent emission standard which is applicable for this source for the type of fuel being burned at the time the permit application is filed. If the existing source commits to switch to a cleaner fuel, emission offset credit based on the difference between the allowable emissions of the fuels involved shall be acceptable only if an alternative control measure, which would achieve the same degree of emission reduction should the source switch back to a fuel which produces more pollution, is specified in a permit issued by the department. I.The owner or operator desiring to utilize an emission reduction as an offset shall submit to the department the following information: (1) a detailed description of the process to be controlled and the control technology to be used; and (2) emission calculations showing the types and amounts of actual emissions to be reduced; and (3) the effective date of the reduction. J.Source shutdowns and curtailments in production or operating hours may be used for emission offset credit only if they occur after August 7, 1977, or less than one year prior to the date of permit application, whichever is earlier, and the proposed new source for which theoffset is to apply is a replacement for the shutdown or curtailment. K.The total tonnage of increased emissions, in tons per year, resulting from a major modification that must be offset in accordance with S ection 173 of the federal Clean Air Act shall be determined by summing the difference between the allowable emissions after the modification and the actual emissions before the modification for each emissions unit.

### 20.2.79 NMAC 15 [11/30/95; 20.2.79.115 NMAC - Rn, 20 NMAC 2.79.115, 10/31/02; A, 1/22/06; A, 08/31/09]

20.2.79.116 BANKING OF EMISSION REDUCTION: A.Any stationary source which decreases actual emi ssions of a regulated pollutant in excess of the requirements of this Part or any other applicable air quality regulation or permit emission limitation may preserve or bank such excess emission reductions for sale or future use. B.The owner or operator desiring to preserve suchreductions shall submit a written request prior to the actual emission reduction to the Department which contains the following information: (1) A detailed description of the process(es) to be controlled and the control technology to be used; and (2) Emission calculations showing the types and amounts of actual emissions to be reduced; and (3) The effective date(s) of such reductions. C.The Department shall: (1) Verify the amount of emission reduction claimed in the written request; and (2) Approve or deny the request for banking of the emission reduction and notify the applicant in writing of the decision; and (3) Keep appropriate records of any emission reduction accepted for banking; and (4) For the case where emission reductions are approved in excess of those required for obtaining a permit under this Part, the Department shall make such reductions a condition of the permit; and (5) For the case where emission reductions are approved not in conjunction with granting a permit, the Department shall preserve such reductions as a State Implementation Plan revision which must be approved by the Environmental Improvement Board. D.Use and Sale of Emission Reductions. (1) The use of any preserved emission reduction is confined to meeting the emission offset requirements of this Part or 20.2.72 NMAC. (2) The provisions of this Part apply to the future use of any preserved emission reduction as if such reductions were obtained concurrently with the commen cement of operations of the new or modified source. (3) Before the use or sale of any preserved emission reduction occurs, written notification must be given to the Department. Such notice shall be in writing and shall identify the permit(s) and State Implementation Plan revision(s) in which such reductions are preserved. The Department must verify the availability of the preserved reduction before any use or sale occurs. (4) The use of preserved emission reduction creditsis subject to the criteria of 20.2.79.115 NMAC - Emission Offsets. [11/30/95; 20.2.79.116 NMAC - Rn, 20 NMAC 2.79.116, 10/31/02]

20.2.79.117 AIR QUALITY BENEFIT: All demonstrations of the occurrence of a net air quality benefit shall meet the following criteria: A.Emission offsets for volatile organic compounds or nitrogen oxides emissions impacting an ozone nonattainment area may be obtained from sources located in the broad vicinity of the proposed new source or modification, subject to approval by the Department. Atmospheric dispersion modeling will not be required to demonstrate the net air quality benefit that occurs due to reductions in volatile organic compound emissions. B.An applicant which proposes emission offsets for sulfur dioxide, particulate matter, carbon monoxide, nitrogen oxides, or any other pollutant may be required by the Department to submit atmospheric dispersion modeling to demonstrate a net air quality benefit will occur. For any case involving these pollutants where stack emissions and fugitive or ground level emissi ons are offsetting, atmospheric dispersion modeling shall be required to demonstrate a net air quality benefit will occur. [11/30/95; 20.2.79.117 NMAC - Rn, 20 NMAC 2.79.117, 10/31/02]

20.2.79.118 PUBLIC PARTICIPATION AND NOTIFICATION: A.The Department shall, within thirty (30) days after its receipt of an application for a permit or significant permit revision subject to this Part, review such application and determine whether it is administratively complete. If the application is deemed: (1) administratively complete, a letter to that effect shall be sent by certified mail to the applicant. (2) administratively incomplete, a letter shall be sent by certified mail to the applicant stating what additional information or points of clarification are nece ssary to deem the applicatio n administratively complete.

### 20.2.79 NMAC 16 Upon receipt of the additional information or clarification, the Department shall promptly review such information and determine whether the application is administratively complete. (3) administratively complete but no permit is required, a letter shall be sent by certified mail to the applicant informing the applicant of the determination. B.The Department shall: (1) Make a preliminary determination whether construction should be approved, approved with conditions, or disapproved. (2) Make available at the Depa rtment, district and local office ne arest to the proposed source a copy of all materials the applicant submitted, a copy of the preliminary determination, and a copy or summary of other materials, if any, considered in making the preliminary determination. (3) Notify the public by advertisement in a newspaper of general circulation in the area in which the proposed major stationary source or major modification would be constructed, of the application, the preliminary determination, and of the opportunity for comment at a public hearing as well as written public comment. The public comment period shall be for forty-five days from the date of such advertisement. (4) Send a copy of the notice of public comment to the applicant, the Administrator, and to officials and agencies having jurisdiction over the location where the proposed construction would occur as follows: any other state or local air pollution control agencies, the chief executives of the city and county where the source would be located, any regional comprehensive land use planning agency, and any state, federal land manager, or Indian governing body whose lands may be affected by emissions from the source or modification. (5) Provide opportunity for a public hearing for interested persons to appear and submit written or oral comments on the air quality impact of the source and other appropriate considerations. Public hearings shall be held in the geographic area likely to be impacted by the source. (6) Consider all written comments submitted within a time specified in the notice of public comment and all comments received at any pub lic hearing(s) in making a final decision on the approvability of the application. The Department shall make all comments available for public inspection in the same locations where the Department made available preconstruction information relating to the source. (7) Within ninety (90) days after the application is deemed administratively complete, unless the Secretary grants an extension, as sp ecified in 20.2.72.207 NMAC, not to exceed ninety (90) days for good cause: (a) make a final determination whether construction should be approved, approved with conditions, or disapproved, or whether no permit is required; and (b) notify the applicant in writing of the final determination and make such notification available for public inspection at the same location where the Department made available preconstruction information and public comments relating to the source. [11/30/95; A, 01/01/00; 20.2.79.118 NMAC - Rn, 20 NMAC 2.79.118, 10/31/02]

20.2.79.119 TABLES: A. Significant Ambient Concentrations:

Pollutant [Concentration in micrograms per cubic meter ( μg/m3 

### ) or milligrams per cubic meter (mg/m3 

### )] Averaging Time Annual 24-hr 8-hr 3-hr 1-hr Sulfur Dioxide 1.0 μg/m3 

### 5 μg/m3 

### -- 25 μg/m3



### -- PM 10

### 1.0 μg/m3 

### 5 μg/m3



### -- -- -- Nitrogen Dioxide 1.0 μg/m3



### -- -- -- -- Carbon Monoxide -- -- 0.5 mg/m3 

### -- 2 mg/m3



### B. Fugitive Emissions Source Categories: (1) Carbon black pl ants (furnace process); (2) Charcoal production plants; (3) Chemical process plants; (4) Coal cleaning plants (with thermal dryers); (5) Coke oven batteries; (6) Fossil fuel-fired steam electric plantsof more than 250 million Btu/hr heat input; (7) Fossil fuel boiler (or combination thereof) totaling more than 50 million Btu/hr heat input; (8) Fuel conversion plants;

### 20.2.79 NMAC 17 (9) Glass fiber processing plants; (10)Hydrofluoric acid plants; (11)Iron and steel mill plants; (12)Kraft pulp mills; (13)Lime plants; (14)Municipal incinerators capable of charging more than 250 tons of refuse per day; (15)Nitric acid plants; (16)Petroleum refineries; (17)Petroleum storage and transfer units with a total storage capacity exceeding 300,000 barrels; (18)Phosphate rock processing plants; (19)Portland cement plant; (20)Primary lead smelters; (21)Primary zinc smelters; (22)Primary aluminum ore reduction plants; (23)Primary copper smelters; (24)Secondary metal production plants; (25)Sintering plants; (26)Sulfur recovery plants; (27)Sulfuric acid plants; (28)Taconite ore processing plants. [11/30/95; 20.2.79.119 NMAC - Rn, 20 NMAC 2.79.119, 10/31/02]

20.2.79.120 ACTUALS PLANTWIDE APPLICABILITY LIMITS (PALs)

. A. Applicability. (1) The department may approve the use of an actuals PAL for any existing major stationary source (except as provided in Paragraph (2) of this subsection) if the PAL meets the requirements of this section. The term "PAL" shall mean "actuals PAL" throughout this section. (2) Actuals PALs shall not be allowed for VOC orNOx for any major stationary source located in an extreme ozone nonattainment area. (3) Any physical change in or change in the method of operation of a major stationary source that maintains its total source-wide emissions below the PAL level, meets the requirements of this section, and complies with the PAL permit: (a) is not a major modification for the PAL pollutant; (b) does not have to be approved through the requirements of this part; and (c) is not subject to the provisions in 20.2.79.110 NMAC (restrictions on relaxing enforceable emission limitations that the major stationary source used to avoid applicability of the nonattainment major new source review program). (4) Except as provided under Subparagraph (c) of Paragraph (3) of this subsection, a major stationary source shall continue to comply with all applicable federal or state requirements, emission limitations, and work practice requirements that were established prior to the effective date of the PAL. B. Definitions .When a term is not defined in this subsection, it shall have the meaning given in 20.2.79.7 NMAC or in 20.2.2 NMAC. (1) Actuals PAL for a major stationary source means a PAL based on the baseline actual emissions of all emissions units at the source, that emit or have the potential to emit the PAL pollutant. (2) Allowable emissions means "allowable emissions" as defined in 20.2.79.7 NMAC, except as this definition is modified according to the following. (a) The allowable emissions for any emissions unit shall be calculated considering any emission limitations that are enforceable as a practicalmatter on the emissions unit's potential to emit. (b) An emissions unit's potential to emit shall be determined using the definition in this part, except that the words "or enforceable as a practical matter" should be added after "federally enforceable". (3) Small emissions unit means an emissions unit that emits or has the potential to emit the PAL pollutant in an amount less than the significant level for that PAL pollutant, as defined in Subsection AM of 20.2.79.7 NMAC or in the federal Clean Air Act, whichever is lower. (4) Major emissions unit means: (a) any emissions unit that emits or has the potential to emit 100 tons per year or more of the PAL pollutant in an attainment area; or

### 20.2.79 NMAC 18 (b) any emissions unit that emits or has the potential to emit the PAL pollutant in an amount that is equal to or greater than the major source threshold for the PAL pollutant as defined by the federal Clean Air Act for nonattainment areas; for example, in accordan ce with the definition of major stationary source in Section 182 (c) of the federal Clean Air Act, an emissions unit would be a major emissions unit for VOC if the emissions unit is located in a serious ozone nonattainment area and it emits or has the potential to emit 50 or more tons of VOC
per year. (5) Plantwide applicability limitation (PAL) means an emission limitation expressed in tons per year, for a pollutant at a major stationary source, that is enforceable as a practicalmatter and established source-wide in accordance with this section. (6) PAL effective date generally means the dateof issuance of the PAL permit. However, the PAL effective date for an increa sed PAL is the date any emissions unit which is part of the PAL major modification becomes operational and begins to emit the PAL pollutant. (7) PAL effective period means the period beginning with the PAL effective date and ending 10 years later. (8) PAL major modification means, notwithstanding the definitions for major modification and net emissions increase in 20.2.79.7 NMAC, any physical change in or change in the method of operation of the PAL source that causes it to emit the PAL pollutant at a level equal to or greater than the PAL. (9) PAL permit means the major new source review permit, the minor NSR permit, or the state operating permit under the requirements of 20.2.72 NMAC, 20.2.74 NMAC, 20.2.79 NMAC, or the title V permit under the requirements of 20.2.70 NMAC issued by the department that establishes a PAL for a major stationary

source. (10)PAL pollutant means the pollutant for which a PAL is established at a major stationary source. (11)Significant emissions unit means an emissions unit that emits or has the potential to emit a PAL pollutant in an amount that is equal to or greater than the significant level (as defined in Subsection AM of 20.2.79.7 NMAC or in the federal Clean Air Act, whichever is lower) for that PAL po llutant, but less than the amount that would qualify the unit as a major emissions unit as define d in Paragraph (4) of Subsection B of this section. C. Permit application requirements.As part of a permit application requesting a PAL, the owner or operator of a major stationary source shall submit the following information to the department for approval. (1) A list of all emissions units at the source desi gnated as small, significant or major based on their potential to emit. In addition, the owner or operator of the source shall indicate which, if any, federal or state applicable requirements, emission limitationsor work practices apply to each unit. (2) Calculations of the baseline actual emissions (with supporting documentation). Baseline actual emissions are to include emissions associ ated not only with operation of the unit, but also emissions associated with startup, shutdown and malfunction. (3) The calculation procedures that the major stationary source owner or operator proposes to use to convert the monitoring system data to monthly emissions and annual emissions based on a 12-month rolling total for each month as required by Paragraph (1 ) of Subsection M of this section. D. General requirements for establishing PALs. (1) A PAL at a major stationary source may beallowed by the department, provided that at a minimum, the following requirements are met. (a) The PAL shall impose an annual emission limitation in tons per year, that is enforceable as a practical matter, for the entire major stationary source. For each month during the PAL effective period after the first 12 months of establishing a PAL, the major stationary source owner or operator shall show that the sum of the monthly emissions from each emissions unit under the PAL for the previous 12 consecutive months is less than the PAL (a 12-month average, rolled monthly). For each month during the first 11 months from the PAL effective date,

the major stationary source owner or operator shall show that the sum of the preceding monthly emissions from the PAL effective date for each emissions unit under the PAL is less than the PAL. (b) The PAL shall be established in a PAL permit that meets the public participation requirements in Subsection E of this section. (c) The PAL permit shall contain all the requirements of Subsection G of this section. (d) The PAL shall include fugitive emissions, to the extent quantifiable, from all emissions units that emit or have the potential to emit the PAL pollutant at the major stationary source. (e) Each PAL shall regulate emissions of only one pollutant. (f) Each PAL shall have a PAL effective period of 10 years.

### 20.2.79 NMAC 19 (g) The owner or operator of the major stationary source with a PAL shall comply with the monitoring, recordkeeping, and reporting requirements provided in Subsections L through N of this section for each emissions unit under the PAL through the PAL effective period. (2) At no time (during or after the PAL effective period) are emissions reductions of a PAL pollutant, which occur during the PAL effective period, creditable as decreases for purposes of offsets under 20.2.79.115 NMAC unless the level of the PAL is reduced by the amount of such emissions reductions and such reductions would be creditable in the absence of the PAL. E. Public participation requirement for PALs.PALs for existing major stationary sources shall be established, renewed, or increased through a procedure that is consistent with 40 CFR 51.160 and 161. This includes the requirement that the department provide the public with notice of the proposed approval of a PAL permit and at least a 30-day period for submittal of public comment. The department shall address all material comments before taking final action on the permit. F. Setting the 10-year actuals PAL level. (1) Except as provided in Paragraph (2) of this subsection, the actuals PAL level for a major stationary source shall be established as the sum of the ba seline actual emissions (as defined in 20.2.79.7 NMAC) of the PAL pollutant for each emi ssions unit at the source; plus an amount equal to the applicable significant level for the PAL pollutant under 20.2.79.7 NMAC or under the act, whichever is lower. When establishing the actuals PAL level, for a PAL pollutant, only one consecutive 24-month period must be used to determine the baseline actual emissions for all existing emissions units. However, a different consecutive 24-month period may be used for each different PAL pollutant. Emissions associated with units that were permanently shutdown after this 24-month period must be subtracted from the PAL level. The department sh all specify a reduced PAL level(s) (in tons/yr) in the PAL permit to become effective on the future compliance date(s) of any appli cable federal or state regulatory requirement(s) that the department is aware of prior to issuance of the PAL permit. For instance, if the source owner or operator will be required to reduce emissions from industrial boilers in half from baseline emissions of 60 ppm NO X

### to a new rule limit of 30 ppm, then the permit shall contain a future effective PAL level that is equal to the current PAL level reduced by half of the original baseline emissions of such unit(s). (2) For newly constructed units (which do not include modifications to existing units) on which actual construction began after the 24-month period, in lieu of adding the baseline actual emissions as specified in Paragraph (1) of this subsection, the emissions must be added to the PAL level in an amount equal to the potential to emit of the units. G. Contents of the PAL permit.The PAL permit shall contain, at a minimum, all of the following information. (1) The PAL pollutant and the applicable source-wide emission limitation in tons per year. (2) The PAL permit effective date and the expiration date of the PAL (PAL effective period). (3) Specification in the PAL permit that if a ma jor stationary source owner or operator applies to renew a PAL in accordance with Subsection J of this section before the end of the PAL effective period, then the PAL shall not expire at the end of the PAL effective period . It shall remain in effect until a revised PAL permit is issued by the department. (4) A requirement that emission calculationsfor compliance purposes include emissions from startups, shutdowns and malfunctions. (5) A requirement that, once the PAL expires, the major stationary source is subject to the requirements of Subsection I of this section. (6) The calculation procedures that the major stationary source owner or operator shall use to convert the monitoring system data to monthly emissions and annual emissions based on a 12-month rolling total for each month as required by Paragraph (1) of Subsection M of this section. (7) A requirement that the major stationary source owner or operator monitor all emissions units in accordance with the provisions under Subsection L of this section. (8) A requirement to retain the records requiredunder Subsection M of this section on site. Such records may be retained in an electronic format. (9) A requirement to submit the reports requiredunder Subsection N of this section by the required deadlines. (10)Any other requirements that the department deems necessary to implement and enforce the PAL. H. PAL effective period and reopening of the PAL permit. (1) PAL effective period. The permit shall specify a PAL effective period of 10 years. (2) Reopening of the PAL permit. (a) During the PAL effective period, the department shall reopen the PAL permit to:

### 20.2.79 NMAC 20 (i) correct typographical/calculation errorsmade in setting the PAL or reflect a more accurate determination of emissions used to establish the PAL; (ii) reduce the PAL if the owner or operator of the major stationary source creates creditable emissions reductions for use as offsets under 20.2.79.115 NMAC; or (iii) revise the PAL to reflect an increase in the PAL as provided under Subsection K of this section. (b) The department may reopen the PAL permit for the following: (i) to reduce the PAL to reflect newly applicable federal requirements (for example, NSPS) with compliance dates af ter the PAL effective date; (ii) to reduce the PAL consistent with any other requirement, that is enforceable as a practical matter, and that the department may impose on the major stationary source under this part; or (iii) to reduce the PAL if the department determines that a reduction is necessary to avoid causing or contributing to a NAAQS or PS D increment violation, or to an adverse impact on an air quality related value that has been identified for a federal class I area by a federal land manager and for which information is available to the general public. (c) Except for the permit reopening in Item (i) of Subparagraph (a) of this paragraph for the correction of typographical/calculation errors that do not increase the PAL level, all other reopenings shall be carried out in accordance with the public participation requirements of Subsection E of this section. I. Expiration of a PAL. Any PAL which is not renewed in accordance with the procedures in Subsection J of this section shall expire at the end of the PAL effective period, and the following requirements shall apply. (1) Each emissions unit (or each group of emi ssions units) that existed under the PAL shall comply with an allowable emission limitation under a revised permit established according to the following procedures. (a) Within the time frame specified for PAL renewals in Paragraph (2) of Subsection J of this section, the major stationary source shall submit a propo sed allowable emission limitation for each emissions unit (or each group of emissions units, if such a distribution is more appropriate as decided by the department) by distributing the PAL allowable emissionsfor the major stationary source among each of the emissions units that existed under the PAL. If the PAL had not yet been adjusted for an applicable requirement that became effective during the PAL effective period, as required under Paragraph (5) of Subsection J of this section, such distribution shall be made as if the PAL had been adjusted. (b) The department shall decide whether and how the PAL allowable emissions will be distributed and issue a revised permit incorporating allowable limits for each emissions unit, or each group of emissions units, as the department determines is appropriate. (2) Each emissions unit(s) shall comply with the allowable emission limitation on a 12-month rolling basis. The department may approve the use of monitoring systems (source testing, emission factors, etc.) other than CEMS, CERMS, PEMS or CPMS to demonstrate compliance with the allowable emission limitation. (3) Until the department issues the revised permit incorporating allowable limits for each emissions unit, or each group of emissions units, as required under Subparagraph (a) of Paragraph (1) of this subsection, the source shall continue to comply with a source-wide, multi-unit emissions cap equivalent to the level of the PAL emission limitation. (4) Any physical change or change in the method of operation at the major stationary source will be subject to the nonattainment major new source review requirements if such change meets the definition of major modification in 20.2.79.7 NMAC. (5) The major stationary source owner or operator shall continue to comply with any New Mexico or federal applicable requirements (BACT, RACT, NSPS, etc.) that may have applied either during the PAL effective period or prior to the PAL effective period except for those emission limitations that had been established pursuant to 20.2.79.109 NMAC, but were elimin ated by the PAL in accord ance with the provisions in Subparagraph (c) of Paragraph (3) of Subsection A of this section. J. Renewal of a PAL. (1) The department shall follow the procedures sp ecified in Subsection E of this section in approving any request to renew a PAL for a major stationary source, and shall provide both the proposed PAL level and a written rationale for the proposed PAL level to the public for review and comment. During such public review, any person may propose a PAL level for the source for consideration by the department. (2) Application deadline. A major stationarysource owner or operator shall submit a timely application to the department to request renewal of a PAL. A timely application is one that is submitted at least 6 months prior to, but not earlier than 18 months from, the date of permit expiration. This deadline for application

### 20.2.79 NMAC 21 submittal is to ensure that the permit will not expire before the permit is renewed. If the owner or operator of a major stationary source submits a complete application to renew the PAL within this time period, then the PAL shall continue to be effective until the revised permit with the renewed PAL is issued. (3) Application requirements. The application to renew a PAL permit shall contain the following information. (a) The information required in Paragraphs (1) through (3) of Subsection C of this section. (b) A proposed PAL level. (c) The sum of the potential to emit of all emissions units under the PAL (with supporting documentation). (d) Any other information the owner or operator wishes the department to consider in determining the appropriate level for renewing the PAL. (4) PAL adjustment. In determining whether and how to adjust the PAL, the department shall consider the options outlined in Subparagraph (a) of this paragraph. However, in no case may any such adjustment fail to comply with Subparagraph (b) of this paragraph. (a) If the emissions level calculated in accordance with Subsection F of this section is equal to or greater than 80 percent of the PAL level, the department may: (i) renew the PAL at the same level without considering the factors set forth in Item (ii) of this subparagraph; or (ii) set the PAL at a level that it determines to be more representative of the source's baseline actual emissions, or that it determines to be appropriate considering air quality needs, advances in control technology, anticipated economic growth in the area, desire to reward or encourage the source's voluntary emissions reductions, or other factors as specifically identified by the department in its written rationale. (b) Notwithstanding Subparagraph (a) of this paragraph: (i) if the potential to emit of the major stationary source is less than the PAL, the department shall adjust the PAL to a level no greater than the potential to emit of the source; and (ii) the department shall not approve a renewed PAL level higher than the current PAL, unless the major stationary source has complied with the provisions of Subsection K of this section (increasing a PAL). (5) If the compliance date for a New Mexico or federal requirement that applies to the PAL source occurs during the PAL effective period , and if the department has not already adjusted for suchrequirement, the PAL shall be adjusted at the time of PAL permit renewal or title V permit renewal, whichever occurs first. K. Increasing a PAL during the PAL effective period. (1) The department may increase a PAL emi ssion limitation only if the major stationary source complies with the following provisions. (a) The owner or operator of the major stationary source shall submit a complete application to request an increase in the PAL limit for a PAL major modification. Such application shall identify the emissions unit(s) contributing to the increase in emissions so as to cause the major stationary source's emissions to equal or exceed its PAL. (b) As part of this application, the major stationary source owner or operator shall demonstrate that the sum of the baseline actual emissions of the small emissions units, plus the sum of the baseline actual emissions of the significant and major emissions units assuming application of BACT equivalent controls, plus the sum of the allowable emissions of the new or modified emissions unit(s) exceed s the PAL. The level of control that would result from BACT equivalent controls on each significant or major emissions unit shall be determined by conducting a new BACT analysis at the time the application is submitted, unless the emissions unit is currently required to comply with a BACT or LAER requirement that was established within the preceding 10 years. In such a case, the assumed control level for that emissions unit shall be equal to the level of BACT or LAER with which that emissions unit must currently comply. (c) The owner or operator shall obtain a major new source review permit for all emissions unit(s) identified in Subparagraph (a) of Paragraph (1) of Subsection K of this section, regardless of the magnitude of the emissions increase resulting from them (that is, nosignificant levels apply). These emissions unit(s) shall comply with any emissions requirements resulting from the nonattainment major NSR program process (for example, LAER), even though they havealso become subject to the PAL or continue to be subject to the PAL. (d) The PAL permit shall require that the increased PAL level shall be effective on the day any emissions unit that is part of the PAL major modification becomes operational and begins to emit the PAL pollutant. (2) The department shall calculate the new PAL as the sum of the allowable emissions for each modified or new emissions unit, plus the sum of the baseline actual emissions of the significant and major emissions

### 20.2.79 NMAC 22 units (assuming application of BACT equivalent controls as determined in accordance with Subparagraph (b) of Paragraph (1) of Subsection K of this section), plus the sum of the baseline actual emissions of the small emissions units. (3) The PAL permit shall be revised to reflect the increased PAL level pursuant to the public notice requirements of Subsection E of this section. L. Monitoring requirements for PALs. (1) General Requirements. (a) Each PAL permit must contain enforceable requirements for the monitoring system that accurately determines plantwide emissions of the PAL pollutant in terms of mass per unit of time. Any monitoring system authorized for use in the PAL permit must bebased on sound science and meet generally acceptable scientific procedures for data quality and manipulation. Additionally, the information generated by such system must meet minimum legal requirements for admissibility in a judicial proceeding to enforce the PAL permit. (b) The PAL monitoring system must employ one or more of the four general monitoring approaches meeting the minimum requirements set forth in Subparagraphs (a) through (d) of Paragraph (2) of this subsection and must be approved by the department. (c) Notwithstanding Subparagraph (b) of this paragraph, the owner or operator may also employ an alternative monitoring approach that meets Subparagraph (a) of this paragraph if approved by the department. (d) Failure to use a monitoring system that meets the requirements of this section renders the PAL invalid. (2) The following are acceptable general monitoring approaches when conducted in accordance with the minimum requirements in Paragraphs (3) through (9) of this subsection: (a) mass balance calculations for activities using coatings or solvents; (b) CEMS; (c) CPMS or PEMS; and (d) emission factors. (3) Mass balance calculations. An owner or operator using mass balance calculations to monitor PAL pollutant emissions from activities using coating or solvents shall meet the following requirements: (a) provide a demonstrated means of validating the published content of the PAL pollutant that is contained in or created by all materials used in or at the emissions unit; (b) assume that the emissions unit emits all of the PAL pollutant that is contained in or created by any raw material or fuel used in or at the emissions unit, if it cannot otherwise be accounted for in the process; and (c) where the vendor of a material or fuel, which is used in or at the emissions unit, publishes a range of pollutant content from such material, the owner or operator must use the highest value of the range to calculate the PAL pollutant emissions unless the department determines there is site-specific data or a site-specific monitoring program to support another content within the range. (4) CEMS. An owner or operator using CEMS to monitor PAL pollutant emissions shall meet the following requirements: (a) CEMS must comply with applicable perf ormance specifications foundin 40 CFR part 60, appendix B; and (b) CEMS must sample, analyze and record data at least every 15 minutes while the emissions unit is operating. (5) CPMS or PEMS. An owner or operator using CPMS or PEMS to monitor PAL pollutant emissions shall meet the following requirements: (a) the CPMS or the PEMS must be based on current site-specific data demonstrating a correlation between the monitored parameter(s) and the PAL pollutant emissions across the range of operation of the emissions unit; and (b) each CPMS or PEMS must sample, analyze, and record data at least every 15 minutes, or at another less frequent interval approved by the department, while the emissions unit is operating. (6) Emission factors. An owner or operator using emission factors to monitor PAL pollutant emissions shall meet the following requirements: (a) all emission factors shall be adjusted, if appropriate, to account for the degree of uncertainty or limitations in the factors' development; (b) the emissions unit shall operate within the designated range of use for the emission factor, if applicable; and

### 20.2.79 NMAC 23 (c) if technically practicable, the owner or operator of a significant emissions unit that relies on an emission factor to calculate PAL pollutant emissions shall conduct validation testing to determine a site-specific emission factor within 6 months of PAL permit issuance, unless the department determines that testing is not required. (7) A source owner or operator must record and report maximum potential emissions without considering enforceable emissi on limitations or operational restrictions for an emissions unit during any period of time that there is no monitoring data, unless another method for determining emissions during such periods is specified in the PAL permit. (8) Notwithstanding the requirements in Paragraphs (3) through (7) of this subsection, where an owner or operator of an emissions unit cannot demonstrate a correlation between the monitored parameter(s) and the PAL pollutant emissions rate at all operating points of the emissions unit, the department shall, at the time of permit issuance: (a) establish default value(s) for determining compliance with the PAL based on the highest potential emissions reasonably estimated at such operating point(s); or (b) determine that operation of the emissions unit during operating conditions when there is no correlation between monitored parameter(s) and the PAL pollutant emissions is a violation of the PAL. (9) Revalidation. All data used to establish the PAL pollutant must be revalidated through performance testing or other scientifically valid means approved by the department. Such testing must occur at least once every 5 years after issuance of the PAL. M. Recordkeeping requirements. (1) The PAL permit shall require an owner or operator to retain a copy of all records necessary to determine compliance with any requirement of this section and of the PAL, including a determination of each emissions unit's 12-month rolling total emissions, for 5 years from the date of such record. (2) The PAL permit shall require an owner or operator to retain a copy of the following records for the duration of the PAL effective period plus 5 years: (a) a copy of the PAL permit application and any applications for revisions to the PAL; and (b) each annual certification of compliance pursuant to title V and the data relied on in certifying the compliance. N. Reporting and notification requirements.The owner or operator shall submit semi-annual monitoring reports and prompt deviation reports to the department in accordance with the requirements of 20.2.70 NMAC. The reports shall meet the following requirements. (1) Semi-Annual Report. The semi-annual report sh all be submitted to the department within 30 days of the end of each reporting period. This report shall contain the following information. (a) The identification of owner and operator and the permit number. (b) Total annual emissions (tons/year) based on a 12-month rolling total for each month in the reporting period recorded pursuant to Paragraph (1) of Subsection M of this section. (c) All data relied upon, including, but not limited to, any quality assurance or quality control data, in calculating the monthly and annual PAL pollutant emissions. (d) A list of any emissions units modified or added to the major stationary source during the preceding 6-month period. (e) The number, duration, and cause of any deviations or monitoring malfunctions (other than the time associated with zero and span calibration checks), an d any corrective action taken. (f) A notification of a shutdown of any monitoring system, whether the shutdown was permanent or temporary, the reason for the shutdown, the anticipated date that the monitoring system will be fully operational or replaced with another monitoring system, and whether the emissions unit monitored by the monitoring system continued to operate, and the calculation of the emissions of the pollutant or the number determined by method included in the permit, as provided by Paragraph (7) of Subsection L of this section. (g) A signed statement by the responsible offi cial (as defined by the applicable title V operating permit program) certifying the truth, accuracy, and completeness of the information provided in the report. (2) Deviation report. The major stationary source owner or operator shall promptly submit reports of any deviations or exceedance of the PAL requirements, including periods where no monitoring is available. A report submitted pursuant to 40 CFR 70.6(a)(3)(iii)(B) shall satisfythis reporting requirement. The deviation reports shall be submitted within the time limits prescribed by the applicable program implementing 40 CFR 70.6(a)(3)(iii)(B). The reports shall contain the following information: (a) the identification of owner and operator and the permit number; (b) the PAL requirement that experienced the deviation or that was exceeded;

### 20.2.79 NMAC 24 (c) emissions resulting from the deviation or the exceedance; and (d) a signed statement by the responsible official (as defined by the applicable title V operating permit program) certifying the truth, accuracy, and completeness of the information provided in the report. (3) Revalidation results. The owner or operator shall submit to the department the results of any revalidation test or method within 3 months after completion of such test or method. O. Transition requirements. (1) The department shall not issue a PAL that does not comply with the requirements of this section after the administrator has approved these regulations. (2) The department may supersede any PAL which was established prior to the date of approval of this part by the administrator with a PAL that complies with the requirements of this section. [20.2.79.120 NMAC - N, 1/22/06]

HISTORY OF 20.2.79 NMAC: Pre-NMAC History: The material in this part was derived from that previously filed with the commission of public records-state records center and archives: EIB/AQCR 709, Air Quality Control Regulation 70 9 - Permits - Nonattainment Areas, 07/26/85; EIB/AQCR 709, Air Quality Control Regulation 70 9 - Permits - Nonattainment Areas, 07/16/86; EIB/AQCR 709, Air Quality Control Regulation 70 9 - Permits - Nonattainment Areas, 08/01/88; EIB/AQCR 709, Air Quality Control Regulation 70 9 - Permits - Nonattainment Areas, 05/29/90; EIB/AQCR 709, Air Quality Control Regulation 70 9 - Permits - Nonattainment Areas, 06/25/92.

History of Repealed Material: [RESERVED]

Other History: EIB/AQCR 709, Air Quality Control Regulation 709 - Permits - Nonattainment Areas, filed 06/25/92 was renumberedinto first version of the New Mexico Administrative Code as 20 NMAC 2.79, Permits - Nonattainment Areas, filed 10/30/95. 20 NMAC 2.79, Permits - Nonattainment Areas, filed 10/30/95 was renumbered, reformatted and replacedby 20.2.79 NMAC, Permits - Nonattainment Areas, effective 10/31/02.

### STATE OF NEW MEXICO BEFORE THE ENVIRONMENTAL IMPROVEMENT BOARD

IN THE MATTER OF PROPOSED REVISIONS 

# w

TO: 20.2.2 NMAC 

### Definitions No. EIB 09-$(R) 20.2.74 NMAC 

### Permits 

# - Prevention of Significant Deterioration 20.2.79 NMAC 

### Permits 

# - Nonattainment Areas

PETITION FOR REGULATORY CHANG

The New Mexico Environment Department ("Department"), pursuant to 20.1.1

NMAC
- 

### Rulemaking Procedures, 

### hereby petitions the Environmental Improvement Board

("Board") to amend 20.2.2 NMAC
- 

### DeJnitions; 

### 20.2.74 NMAC -Permits-Prevention of

Signzpcant Deterioration; 

### and 20.2.79 NMAC
- 

### Permits-Nonattainment Areas. 

### The revised

rules and statement of reasons are attached. The Environmental Improvement Board is

authorized to adopt these amendments by the Air Quality Control Act, NMSA 1978 

# 5 74-2-5.

The Department requests that the Board schedule the hearing for July 6,2009 during its

regular meeting. The Department anticipates that its testimony regarding the revisions to Parts

2,74, and 79 will require approximately one hour.

Respectfully submitted,

NEW MEXICO ENVIRONMENT DEPARTMENT OFFICE OF GENERAL COUNSEL

e

### Bill Grantham Assistant General Counsel New Mexico Environment Department 1190 St. Francis Drive, Suite N-4050 Santa Fe, New Mexico 87505 Telephone: (505) 827-2824, 

### bill.grantham@state.nm.us

### IN THE MATTER OF PROPOSED REVISIONS TO: 20.2.2 NMAC Definitions 20.2.74 NMAC Permits 

# - Prevention of Significant Deterioration 20.2.79 NMAC Permits - 

### Non attainment areas NO. EIB 

### 09- 

## (R)

STATEMENT OF REASONS

The New Mexico Environment Department (Department) is proposing revisions to 20.2.2 NMAC -Definitions (Part 2); 20.2.74
- 

### Permits -Prevention of Significant Deterioration (Part 74); and 20.2.79 -Permits - 

### Nonattainment Areas (Part 79) to comply with Implementation Rules adopted by the U.S. Environmental Protection Agency (EPA) for the 8-hour ozone and particulate matter 2.5 microns in size and less (PM2.5) National Ambient Air Quality Standards (NAAQS). Under Section 

## 1 10(A)(2) of the Clean Air Act, states are required to update state implementation plans upon the promulgation of a new or revised NAAQS.

The Department proposes the following changes to Part 2:

In March of 2007, EPA promulgated the Implementation rule for the new PM2.5 NAAQS. The PM2.5 NAAQS promulgated by EPA was a new standard that has not been included in most state implementation plans and needs to be defined for regulatory purposes.



## 1. Sections 7.AF & 

### 7.AG

20.2.2.7 DEFINITIONS

AF. "PM2.5" means particulate matter with an aerodynamic diameter less than or equal to a nominal 2.5 micrometers.

AG. "PM2.5 emissions" means finely divided solid or liquid material with an aerodynamic diameter less than or equal to a nominal 2.5 micrometers, emitted to the ambient air, as measured by: an applicable reference method; an equivalent or alternative method specified by the EPA administrator; or a test method specified in the New Mexico state implementation plan.

### The Department proposes the following changes to Part 74:

In November of 2005, EPA promulgated the Implementation rule for the 8-hour ozone NAAQS. Included with this rule were revisions to the federal Prevention of Significant Deterioration rule (PSD). The federal PSD rule was revised to include nitrogen oxides (NOx) as an ozone precursor. Specifically, EPA amended the definitions of major stationary source; major modification; significant; and regulated NSR pollutant to include NOx as an ozone precursor.

Sections 7.AD, 7.AF, & 

### 7.AR

20.2.74.7 

# - DEFINITIONS

AD. "Major modification" means any physical change in or change in the method of operation of a major stationary source that would result in: a significant emissions increase (as defined in of this section) of a regulated new source review pollutant (as defined in this section); and a significant net emissions increase of that pollutant from the major stationary source. Any significant emissions increase (as defined in this section) from any emissions units or net emissions increase (as defined in this section) at a major stationary source that is significant for volatile organic compounds or nitrogen oxides shall be considered significant for ozone.

AF. "Major stationary source" means the following. (1) Any stationary source listed in table 1 (20.2.74.50 1 NMAC) which emits, or has the potential to emit, emissions equal to or greater than one hundred (100)

tons per year of any regulated new source review pollutant. (2) 

### Any stationary source not listed in table 1 (20.2.74.501 NMAC) and which emits or has the potential to emit two hundred fifty (250) tons per year or more of
any regulated new source review pollutant. 

### (3) Any physical change that would occur at a stationary source not otherwise qualifying under Paragraphs (1) or (2) of this subsection if the change would constitute a major stationary source by itself. (4) 

### A major source that is major for volatile organic compounds nitrogen oxides shall be considered major for ozone. (5) 

### The hgitive emissions of a stationary source shall not be included in determining for any of the purposes of this section whether it is a major stationary source, unless the source belongs to one of the stationary source categories found in Table 1 (20.2.74.501 NMAC) or any other stationary source category which, as of August 7, 1980, is being regulated under Section 1 11 or 1 12 of the act.

STATEMENT OF REASONS 

## - PAGE 2

### AR. "Regulated new source review pollutant", for purposes of this part, means the following: (1) any pollutant for which a national ambient air quality standard has been promulgated and any constituents or precursors for such pollutants identified by the administrator (e.g., volatile organic compounds and nitrogen oxides are precursors for ozone); (2) 

### any pollutant that is subject to any standard promulgated under Section 1 1 1 of the act; (3) 

### any class 

## I or 

### I1 substance subject to a standard promulgated under or established by title 

### VI of the act; or (4) 

### any pollutant that otherwise is subject to regulation under the act; except that any or all hazardous air pollutants either listed in Section 112 of the act or added to the list pursuant to Section 112(b)(2) of the act, which have not been delisted pursuant to Section 112(b)(3) of the act, are not regulated new source review pollutants unless the listed hazardous air pollutant is also regulated as a constituent or precursor of a general pollutant listed under Section 108 of the act.

2. Section 502

20.2.74.502 

### TABLE 2 - 

### SIGNIFICANT EMISSION RATES:

STATEMENT OF REASONS 

## - PAGE 3

POLLUTANT Carbon monoxide Fluorides Lead Municipal waste combustor Acid gases (measured as sulfur dioxide and hydrogen chloride) Metals (measured as particulate matter Organics (measured as total tetra- through octa-chlorinated dibenzo-p-dioxins and dibenzofurans) Nitrogen oxides Ozone Volatile Organic Compounds or nitrogen oxides) Particulate Matter Particulate matter emissions 

### PM- 10 emissions Sulfur compounds Hydrogen sulfide (H2S) Reduced sulfur compounds (incl. H2S) Sulfur dioxide Sulfuric acid mist Total reduced sulfur (incl. H2S) Any other pollutant regulated under the act that is not listed in this table Each regulated pollutant EMISSION RATE (TONSNR) 100 3 0.6

40 (36 megagramslyear) 15 (14 megagramslyear) 0.0000035 (0.0000032 megagramslyr)

40
40 w@o



### 25 15

10 10 40 

### 7 10 Any emission rate

Emission rate or net emissions increase associated with a major stationary source

or major modification that causes an air

quality impact of one microgram per cubic meter or greater (24-hr average) 

### in any class I federal area located withn 10 

### km of the source.

### 3. Section 

### 503

20.2.74.503 TABLE 3 - 

### SIGNIFICANT MONITORING CONCENTRATIONS.

STATEMENT OF REASONS 

### - PAGE 4 

### POLLUTANT

Carbon monoxide Fluorides Lead Nitrogen dioxide Ozone Particulate matter (PM- 10) Sulfur compounds Hydrogen sulfide (H2S) Reduced sulfur compounds (incl. H2S) Sulfur dioxide Sulfuric acid mist Total reduced sulfur (incl. H2S)

a 

### - No acceptable monitoring techniques available at this time. Therefore, monitoring is not required until acceptable techques are available. b -No de minimis air quality level is provided for ozone. However, any net increase of 100 tons per year or

more of volatile organic compounds or nitrogen oxides subject to PSD would be required to perform an ambient impact analysis, including the gathering of ambient air quality data. AIR QUALITY CONCENTRATION micrograms per cubic meter 575 0.25 0.1 14 b 10

0.20

10 13

a 10 AVERAGING TIME

8 hours 24 hours 3 months Annual

24 hours

1 hour 1 hour 24 hours

1 hour

### The Department proposes the following changes to Part 79:

In November of 2005, EPA promulgated the Implementation rule for the 8-hour ozone NAAQS. Included with this rule were revisions to the federal New Source Review (NSR) Nonattainment rule. The NSR rule was revised to incorporate major stationary source thresholds, significant emission rates, and offset ratios pursuant to part D of title I of the CAA, as amended in 1990, for the 8-hour ozone NAAQS, the CO NAAQS, and the PM10 NAAQS. EPA also changed the requirements for emission reductions achieved from shutdowns or curtailments for clarification purposes.

1. Sections 7.U, 7.V, 7.AJ, 7.AM

2020.2.79.7 

### DEFINITIONS



## U. "Major modification" means any physical change in or change in the method of operation of a major stationary source that would result in a significant emissions increase of a regulated new source review pollutant (as defined in this section); and a significant net emissions increase of that pollutant fi-om the major stationary source. Any significant emissions increase (as defined in this section) from any emissions units or net emissions increase (as defined in this section) at a major stationary source that is significant for volatile organic compounds or oxides of nitrogen shall be considered significant for

ozone. (1) A physical change or change in the method of operation shall not include: (a) routine maintenance, repair, and replacement; (b) use of an alternative fuel or raw material by reason of an order under Section 2 

## (a) and (b) of the Energy Supply and Environmental Coordination Act of 1974 (or any superseding legislation) or by reason of a natural gas curtailment plan pursuant to the federal Power Act; (c) 

### use of an alternative fuel by reason of an order or rule under Section 125 of the federal Clean Air Act; (d) use of an alternative fuel at a steam generating unit to the extent that the fuel is generated fiom municipal solid waste; (e) 

### use of an alternative fuel or raw material by a stationary source which: (i) the source was capable of accommodating before December 2 1, 1976, unless such change would be prohibited under any federally enforceable permit condition which was established after December 21, 1976 pursuant to

STATEMENT OF REASONS 

## - PAGE 

### 5

### 40 CFR 52.21 or under regulations approved pursuant to 40 CFR 5 1.165 or 40 CFR 51.166; or (ii) the source is approved to use under any permit issued under 40 CFR 52.2 1 or under regulations approved pursuant to 40 CFR 5 1.166; (f) 

### an increase in the hours of operation or in the production rate, unless such change would be prohibited under any federally enforceable permit which was established after December 2 1, 1976, pursuant to 40 CFR 52.2 1 or under regulations approved pursuant to 40 CFR 5 1.165 or 40 CFR 5 1.166; (g) 

### any change in ownership at a stationary source; or 

## (h) the installation, operation, cessation, or removal of a temporary clean coal technology demonstration project, provided that the project complies with the state implementation plan for the state in which is project is located, and other

- - -. 

### requirements necessary to attain and maintain the national ambient air quality standards during the project and after it is terminated. (2) This definition shall not apply with respect to a particular regulated new source review pollutant when the major stationary source is complying with the requirements under 20.2.79.120 NMAC for a plantwide applicability limit for that pollutant. Instead, the definition at Paragraph (8) 

### of Subsection B 

### of 20.2.79.120 NMAC shall apply. 

### (3) For the purpose of applying the requirements of Subsection 

## H of 20.2.79.109 NMAC to modifications at maior stationary sources of nitrogen oxides located in ozone nonattainment areas or in ozone transport regions. whether or not subiect to subpart 2, part D, title 

## I of the federal Clean Air Act, any significant net emissions increase of nitrogen oxides is considered significant for ozone. (4) 

### Any physical change in, or change in the method of operation of, a major stationary source of volatile organic compounds that results in any increase in emissions of volatile organic compounds from any discrete operation, emissions unit, or other pollutant emitting activity at the source shall be considered a significant net emissions increase and a major modification for ozone, if the maior stationary source is located in an extreme ozone nonattainment area that is subiect to subpart 2, part D, title 

## I of the federal Clean Air Act.

V. "Major stationary source" 

### means the following. 

## (1 Any stationary source of air pollutants which emits, or has the potential to emit, 100 tons per year or more of any regulated new source review pollutant, except that lower emissions thresholds shall apply in areas subiect to subpart 2. subpart 

### 3, or subpart 4 of part 

## D, title 

## I of the of the federal Clean Air Act, according to Subparagraphs (a) through 

## (0 of this paragraph (20.2.79.7.V.l NMAC). (a) 

### 50 tons per year of volatile organic compounds in any serious ozone nonattainment area. (b) 50 tons per year of volatile organic compounds in an area within

an ozone transport region, except for any severe or extreme ozone nonattainment area. (c) 

### 25 tons per year of volatile organic compounds in any severe ozone nonattainment area.

STATEMENT OF REASONS 

## - PAGE 6

### (d) 10 tons per vear of volatile organic compounds in any extreme ozone nonattainment area. (e) 50 tons per vear 

### of carbon monoxide in any serious nonattainment area for carbon monoxide, where stationary sources contribute significantly to carbon monoxide levels in the area (as determined under rules issued by the United States environmental protection agency administrator). 

## (0 70 tons per year of PMlO in any serious nonattainment area for PM10. (2) For the purposes of applying the requirements of Subsection 

## H of 20.2.79.109 NMAC to stationary sources of nitrogen oxides located in an ozone nonattainment area or in an ozone transport region, any stationary source which emits, or has the potential to emit, 100 tons per year or more of nitrogen oxides emissions. except that the emission thresholds in Subparagraphs (a) through (f) 

### of this paragraph (20.2.79.7.V.2 NMAC) shall apply in areas subiect to subpart 2 of part D, title 

## I of the federal Clean Air Act. (a) 

### 100 tons per year or more of nitrogen oxides in any ozone nonattainment area classified as marginal or moderate. (b) 100 tons per vear or more of nitrogen oxides in any ozone nonattainment area classified as a transitional, submarginal, or incomplete or no data area, when such area is located in an ozone transport region. (c) 100 tons per vear or more of nitrogen oxides in any area designated under section 107(D) if the federal Clean Air Act as attainment or unclassifiable for ozone that is located in an ozone transport region. (d) 50 tons per year or more of nitrogen oxides in any serious nonattainment area for ozone. (e) 25 tons per year or more of nitrogen oxides in any severe nonattainment area for ozone. (f) 

### 10 tons per year or more of nitrogen oxides in any extreme nonattainment area for ozone; or (22) 

### Any physical change that would occur at a stationary source not qualifying under Paragraph (1) or (2) of this definition as a major stationary source, if the change would constitute a major stationary source by itself. 

# (34) A major stationary source that is major for volatile organic compounds or oxides of nitrogen shall be considered major for ozone. (43 

### A stationary source shall not be a major stationary source due to fugitive emissions, to the extent they are quantifiable, unless the source belongs to: (a) any category in Subsection 

## B of 20.2.79.1 19 NMAC; or (b) any other stationary source category which as of August 7, 1980 is being regulated under Section 1 1 1 or 1 12 of the federal Clean Air Act. (5) 

### A stationary source shall not be a major stationary source due to secondary emissions.



### AM. "Significant" means: (1) In reference to a net emissions increase or the potential of a source to emit any of the following pollutants, a rate of emissions that would equal or exceed any

STATEMENT OF REASONS 

### - PAGE 7

### of the following rates: carbon monoxide, 100 tons per year; nitrogen oxides, 40 tons per year; sulfur dioxide, 40 tons per year; PM-10 emissions, 15 tons per year; ozone, 40 tons per year of volatile organic compounds or nitrogen oxides; lead, 0.6 tons per year. 

## (2) Notwithstanding the significant emissions rate for ozone in Paragraph (1) of 20.2.79.7.AM NMAC, significant means, in reference to an emissions increase or

a net emissions increase, any increase in actual emissions of volatile organic compounds that would result from any physical change in, or change in the method of operation of, a major stationary source locating in a serious or severe ozone nonattainment area that is subiect to subpart 2, part 

## D, title I of the federal Clean Air Act, if such emissions increase of volatile organic compounds exceeds 25 tons per year. (3) 

### For the pumoses of applying the requirements of Subsection 

## H of 20.2.79.109 NMAC to modifications at major stationary sources of nitrogen oxides located in an ozone nonattainment area or in an ozone transport region, the significant emission rates and other requirements for volatile organic compounds in Paragraphs 

## (I), (2), and 

## (5) of this subsection (20.2.79.7.AM NMAC) shall apply to nitrogen oxides emissions. (4) 

### Notwithstanding the significant emissions rate for carbon monoxide under Paragraph (1) of this subsection (20.2.79.7.M NMAC), significant means. in reference to an emissions increase or a net emissions increase, any increase in actual emissions of carbon monoxide that would result from any physical change in, or change in the method of operation of, a major stationary source in a serious nonattainment area for carbon monoxide if such increase equals or exceeds 50 tons per year, provided the U.S. environmental protection agency administrator has determined that stationary

sources contribute significantly to carbon monoxide levels in that area. (5) 

### Notwithstanding the significant emissions rates for ozone under Paragraphs (1) and (2) of this subsection (20.2.70.7.AM NMAC), any increase in actual emissions of volatile organic compounds from any emissions unit at a major stationary source of volatile organic compounds located in an extreme ozone nonattainment area that is subject to subpart 2, part 

## D, title I of the federal Clean Air Act shall be considered

a significant net emissions increase.

2. Sections 109.H, 109.1, 109.J, 109.K & 

### 109.L



## 20.2.79.109 APPLICABILITY



## ... H. The requirements of this section (20.2.79.109 NMAC) applicable to major stationary sources and maior modifications of volatile organic compounds shall apply to nitrogen oxides emissions from major stationary sources and major modifications of nitrogen oxides in an ozone transport region or in any ozone nonattainment area, except in ozone nonattainment areas or in portions of an ozone transport region where the U.S. Environmental Protection Agency administrator has granted a NOx waiver applying the standards set forth under section 182(fl of the federal Clean Air A; and the waiver continues to apply. I. 

### In meeting the emissions offset requirements of Section 115 of 20.2.79 NMAC, the ratio of total actual emissions reductions to the emissions increase shall be at least 

## 1 : 

### 1

STATEMENT OF REASONS 

# - PAGE 8

### unless an alternative ratio is provided for the applicable nonattainment area in Paragraphs (1) though (5) of this subsection (20.2.79.109.1 NMAC); (1) In any marginal nonattainment area for ozone, at least 1.1 : 

### 1 ; 

### (2) In any moderate nonattainment area for ozone, at least 1.15: 1 ; 

### (3) In any serious nonattainment area for ozone, at least 1.2: 1 ; 

### (4) 

### In any severe nonattainment area for ozone, at least 1.3: 1 (except that the ratio may be at least 1.2: 1 if the approved state implementation plan also requires all existing maior sources in such nonattainment area to use BACT for the control of VOC);

(5) 

### In any extreme nonattainment area for ozone. at least 1.5: 1 (except that the ratio may be at least 1.2: 1 if the approved state implementation plan also requires all existing major sources in such nonattainment area to use BACT for the control of VOC. J. Notwithstanding the requirements of Paragraph (1) of 20.2.79.1 NMAC for meeting the requirements of Section 115 of 20.2.79 NMAC, the ratio of total actual emissions reductions of VOC to the emissions increase of VOC shall be at least 1.15: 1 for all areas within an ozone transport region that is subject to subpart 2, part 

## D title I 

### of the federal Clean Air Act, except for serious. severe, and extreme ozone nonattainment areas that are subiect to subpart 2, part 

## D, title 

## I of the federal Clean Air Act. 

## K. Meeting the emissions offset requirements of Section 1 15 of 20.2.79 NMAC for ozone nonattainment areas that are subject to subpart 1, part 

## D, title I of the clean air act, including 8-hour ozone nonattainment areas subject to 40 CFR 51.902(b), the ratio of total actual emissions increase of VOC shall be at least 1 : 

### 1. 

## L. The requirements of Section 109 of 20.2.79 NMAC applicable to maior stationary sources and maior modifications of PMlO shall also apply to maior stationary

sources and major modifications of PMlO precursors except where the 

### US. Environmental Protection Agency administrator determines that such sources do not contribute significantly to PMlO levels that exceed the PMlO ambient standards in the


# area.

[11/30/95; 20.2.79.109 NMAC 

## - Rn, 20 NMAC 2.79.109, 10/31/02; A, 1/22/06; A, 

## XX/XX/XX]

3. Sections 115.F.1 & 

### 115.F.2

20.2.79.115 EMISSION OFFSETS



## . . . (1) Emissions reductions achieved by shutting down an existing setwee 

### emission unit

or curtailing production or operating hours below baseline levels may be generally credited for offsets if such reductions are permanent, quantifiable, and federally enforceable+md+fth- LWXAMSW EPLAL 

# nnnY1\7rnT1. In addition, the shutdown or curtailment is creditable only if it occurred 

## efteraftzrtafter the date of the most recent emissions inventory used in the state implementation plan's demonstration of attainment.

However, in no event may credit be given for shutdowns which occurred prior to August 7, 1977. For purposes of this paragraph, a permitting authority may choose to consider a

. . 

### prior shutdown or curtailment to have occurred after the date of -t 

## recer,t e==:me~

STATEMENT OF REASONS 

### - PAGE 9

### the base year inventory, if the projected inventory used to develop the attainment



## . . 

## . . 

### demonstration explicitly includes -en+ 

### ex:&mg e~:zstefts

### the emissions from such previously shutdown or curtailed sewees 

### emission units. (2) Such reductions may be credited in the absence of an approved attainment demonstration only if the shutdown or curtailment occurred on or after the date the new source permit application is filed, or, if the applicant can establish that the proposed new setwe 

### emission unit is a replacement for the shutdown or curtailed setme 

### emission unit, and the-a&e#&& provisions of Paragraph (1) of this subsection (20.2.79.7.F 

## NMAC) are observed.

STATEMENT OF REASONS 

## - PAGE 10

## STATE OF NEW MEXICO ENVIRONMENTAL IMPROVEMENT BOARD

IN 

## THE MATTER OF PROPOSED AMENDMENTS TO: 20.2.2 NMAC - 

## DEFINITIONS; 20.2.74 NMAC - 

## PERMITS - 

## PREVENTION OF EIB 09-04(R) SIGNIFCANT DETERIORATION; AND 20.2.79 NMAC - 

## PERMITS - 

## NONATTAINMENT AREAS.

NEW MEXICO ENVIRONMENT DEPARTMENT NOTICE OF INTENT TO PRESENT TECHNICAL TESTIMONY

Pursuant to 20.1.1.302.A NMAC, The New Mexico Environment Department (NMED)

Environmental Protection Division ("the Division") hereby submits its Notice of Intent to present

technical testimony in this proceeding.



## 1. The person for whom the witnesses will testify.

The New Mexico Environment Department, Environmental Protection Division.



## 2. The name and qualifications of each technical witness.

Gail Cooke. Ms. Cooke is an Environmental Planner in the Control Strategies Section of

the Air Quality Bureau. She has worked in the Air Quality Bureau since June 1999. Ms. Cooke

holds a bachelor degree in Environmental Design from Texas A&M University and a master

degree in Urban and Regional Planning from Virginia Tech University.

3. 

## Summary and Estimated Duration of Testimony

Ms. Cook's written testimony is attached as Exhibit NMED 1. Ms. Cooke will provide

testimony regarding the proposed revisions to 20.2.2 NMAC
- 

### Definitions; 20.2.74 NMAC
-


### Prevention of Significant Deterioration; and 20.2.79 NMAC
- 

### Nonattainment Permitting in

Exhibits 2 - 

## 4. The Division estimates Ms. Cooke's testimony will take 1 hour.

Notice of Intent Page 1 of 3

### 4. 

## Text of Recommended Modifications to the Proposed Regulatory Change

The Division recommends changes to 20.2.2 NMAC; 20.2.74 NMAC; 20.2.79 NMAC as

proposed in the petition of April 6,2009.



## 5. List and Description of Exhibits

The Division submits the following exhibits:

Exhibit Number Title of Exhibit

NMED 1 Written Testimony of Gail Cooke

NMED 2 Proposed Rule Changes to 20.2.2 NMAC

NMED 3 

### Proposed Rule Changes to 20.2.74 NMAC

NMED 4 Proposed Rule Changes to 20.2.79 NMAC

NMED 5 April 25,2007, Federal Register Notice
- 

### PM2.5 Implementation Rule 

## (Submitted Electronically Only)

NMED 

### 6 November 29,2005, Federal Register Notice - 

### 8 Hour Ozone Implementation Rule 

## (Submitted Electronically Only)

NMED 7 Notice of Public Meeting.and Hearing

NMED 

### 8 Proposed Statement of Reasons

7. 

## Reservation of Rights

This Notice of Intent to Present Technical Testimony is based on the Division's petition.

The Division reserves the right to call any person to testify and to present any exhibit in response

to another notice of intent or public comment filed in this matter or to any testimony or exhibit

offered at the public hearing. The Division also reserves the right to call any person as a rebuttal

witness and to present any exhibit in support thereof.

Notice of Intent Page 2 of 

### 3

### Respectfully submitted,

NEW MEXICO ENVIRONMENT DEPARTMENT OFFICE OF GENERAL COUNSEL

Assistant General Counsel New Mexico Environment Department 1190 St. Francis Drive Santa Fe, New Mexico 87502-6 1 10 Telephone (505) 827-2824 Facsimile (505) 827- 1628



## CERTIFICATE OF SERVICE

I hereby certify that on June 19,2009, a true and accurate copy of above-entitled pleading was mailed by first class mail to the Board Attorney at the following address:

Mr. Adrian Terry Assistant Attorney General Attorney General's Office 

## - Civil Division P.O. Drawer 1508 Santa Fe, 

### NM 87504-1 508



# L.3-

Bill Grantham

Notice of Intent Page 3 

### of 3

## STATE OF NEW MEXICO ENVIRONMENTAL IMPROVEMENT BOARD

IN THE MATTER OF PROPOSED AMENDMENTS TO: 20.2.2 NMAC - 

## DEFINITIONS; 20.2.74 NMAC - 

## PERMITS - 

## PREVENTION OF EIB 09-04(R) SIGNIFCANT DETERIORATION; 20.2.79 NMAC

- 

## PERMITS - 

## NONATTAINMENT AREAS.

WRITTEN TESTIMONY OF GAIL COOKE

Witness Qualifications:

Gail Cooke is an Environmental Planner in the Control Strategies Section of the Air Quality Bureau. She has worked in the Air Quality Bureau since June 1999. Ms. Cooke holds a bachelor degree in Environmental Design from Texas A&M University and a master degree in Urban and Regional Planning from Virginia Tech.



## I. INTRODUCTION

The New Mexico Environment Department (NMED) Air Quality Bureau proposes amendments to 20.2.2 New Mexico Administrative Code (NMAC) -Definitions; 20.2.74 -Permits
- 

### Prevention of Signzficant Deterioration (PSD); and 20.2.79 NMAC
- 

### Permits
- 

### Nonattainment Areas. NMED Exhibits 2-4 reflects the Department's proposed amendments in current NMAC format. A section-by-section table of proposed amendments is also included in Table 1 below. The proposed amendments are shown in standard legislative format: new material is underlined, and deleted material stricken or designated as stricken. 20.2.2 NMAC (Exhibit 2) is hereinafter referred to as Part 2; 20.2.74 NMAC (Exhibit 3) 

### as Part 74; and 20.2.79 NMAC (Exhibit 4) as Part 79.



## A. What is the Purpose of These Revisions?

The New Mexico Environment Department (Department) is proposing revisions to Part 2; Part 74; and Part 79 to comply with Implementation Rules adopted by the U.S. Environmental Protection Agency (EPA) for the 8-hour ozone and particulate matter 2.5 microns in size and less (PM2.5) National Ambient Air Quality Standards (NAAQS). Under Section 110(a) of the federal Clean Air Act, states are required to update state implementation plans upon the promulgation of a new or revised NAAQS within 3 

### years of promulgation.



## B. What is the Implication of These Revisions?

These revisions would only apply to permitted PSD facilities or Title V facilities in nonattainment areas for ozone, carbon monoxide (CO) or particulate matter 10 microns in size and less (PMIO).

COOKE TESTIMONY 

### - PAGE 1

### 11. PROPOSED REVISIONS

A. 20.2.2 

# - Definitions

In April of 2007, EPA promulgated the Implementation rule for the new PM2.5 NAAQS (Exhibit 5). The PM2.5 NAAQS promulgated by EPA was a new standard that has not been included in New Mexico's State Implementation Plan and needs to be defined for regulatory purposes. To comply with the Implementation rule for the new PM2.5 standard, definitions for PM2.5 and PM2.5 emissions are required to be included in the definitions section of the state's air quality regulations.



## B. 20.2.74
- 

### Permits
- 

### Prevention of Significant Deterioration

In November of 2005, EPA promulgated the Implementation rule for the 8-hour ozone NAAQS (Exhibit 

## 6). Included with this rule were revisions to the federal PSD rule. The federal PSD rule

was revised to include nitrogen oxides (NOx) as an ozone precursor. Specifically, EPA amended the definitions of major stationary source; major modification; significant; and regulated NSR pollutant to include NOx as an ozone precursor.

The Department proposes corresponding amendments to these provisions in the State's rules. The effect of these changes is that nitrogen oxides will be considered to determine PSD applicability for future construction and major modifications in attainment areas throughout the

state.



### C. 20.2.79 - 

### Permits
- 

### Nonattainment Areas

The November of 2005, Implementation rule for the 8-hour ozone NAAQS also included revisions to the federal New Source Review (NSR) Nonattainment rule. Specifically, the NSR rule was revised to incorporate major stationary source thresholds, significant emission rates, and offset ratios pursuant to part D of title I of the CAA, as amended in 1990, for the 8-hour ozone NAAQS, the carbon monoxide NAAQS, and particulate matter 10 microns in size and less (PM 10) NAAQS. EPA also changed the requirements for emission reductions achieved from shutdowns or curtailments for clarification purposes.

The Department proposes corresponding amendments to these provisions in the State's rules. The revisions would incorporate the revised federal thresholds for NOx, VOC, COY and PMIO. The thresholds and offset ratios proposed for adoption are graduated according to non-attainment classification in accordance with the Clean Air Act (i.e., marginal, moderate, severe, and extreme nonattainment areas). It should be noted that for most of these classifications, nonattainment

areas currently do not exist in New Mexico.

The following table (Table 1) lists the promulgated federal amendments and the proposed regulatory amendments to the state regulations.

COOKE TESTIMONY 

## - PAGE 

### 2

## Table 1: 

## Proposed Regulatory Amendments

111. 

## THE PROPOSED REVISIONS IN NEW MEXICO ISSUE ADDRESSED IN FEDERAL RULE

Include definitions for PM2.5 

### and PM2.5 

### Emissions Inclusion of NOx as an ozone precursor.

Revision to definition of Major Modification: If a modification itself constitutes a major stationary source, the modification is subject to major NSR. Incorporation of major stationary source thresholds for ozone nonattainment areas. Significant emission rates for ozone and carbon monoxide nonattainment areas. Incorporation of emissions offset requirements for ozone and 

### PMIO 

### nonattainment areas Revisions to limit offsets fi-om emissions reductions due to shutting down an existing source or curtailing production or operating hours below baseline levels.

The revisions to Parts 2 and 74 will apply to permitted sources state-wide. The revisions to both regulations are relatively minor and should have a very limited effect on permitted sources in the

state. The revision to Part 2 

### only establishes definitions for the new PM2.5 NAAQS. These definitions are needed for future reference to this standard within state regulations. The revisions to Part 74 are in response to EPA codifying the role of NOx in ozone formation and transport in the federal PSD program by including NOx as an ozone precursor in attainment and unclassifiable areas. This codification already exists in other federal and state rules. The revision is simply updating Part 74 to correspond with other air quality laws, rules, and regulations. 

## NEW MEXICO REGULATORY SECTION 20.2.2: Sec. 7(AF); 7(AG) 20.2.74: Sec. 7(AD); 7(AF); 7(AR); 502; 503 20.2.79: Sec. 7(U)

20.2.79: Sec. 7(V)

20.2.79: Sec. 7(AM)

20.2.79: Sec. 109

20.2.79: Sec. 1 15

The revisions to 20.2.79 

## NMAC
- 

## Nonattainment Permitting will only apply to major permitted sources that are located in areas that have been found to be in violation of a federal air quality standard. Presently, there is only one nonattainment area under the Department's jurisdiction in New Mexico. The nonattainment is located in Southern DoAa Ana County in Anthony, New Mexico. Anthony was designated nonattainment by EPA for PMlO in 1991. Today's proposed revisions to Part 79 will not affect the nonattainment area in Anthony, NM. This area was designated nonattainment for PM 10 due to high wind events, not emissions fi-om permitted point sources. The proposed revisions will affect any future PM2.5 or ozone nonattainment areas within the State of New Mexico's jurisdiction.

Accordingly, the Department has determined that the proposed changes will not adversely affect small businesses. To the Department's knowledge, the only facility potentially affected by the amendments is 

## El Paso Electric, located in Sunland Park, New Mexico, in an area for which the * 

### State has recommended nonattainment status with respect to the new 8-hour ozone standard.

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### - PAGE 3

### This facility is not a small business as defined by the Small Business Regulatory Relief Act. Moreover, if New Mexico were not to adopt these revisions, EPA would be obliged to exercise its oversight authority and adopt similar changes through a federal implementation plan.



### IV. 

## OUTREACH

Outreach was conducted for all three regulations in the form of public notices (Exhibit 7) and an open house. The state received no comments from the public notice and no attendance at the open house. Although states are required to adopt federally promulgated rules, once the rules are adopted by the federal government they are applicable in all states regardless if a state has adopted those revisions or not. The purposes for the adoption of federally promulgated rules and revisions on the state level are to fulfill the requirements of the CAA and to grant states the authority to oversee and enforce those rules. So, although the proposed revisions to Parts 

### 2,74, and 79 have not been adopted on the state level, affected sources have been subject to these revisions since the promulgation on the federal level.

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# - PAGE 4TITLE 20 ENVIRONMENTAL PROTECTION CHAPTER 2 AIR QUALITY (STATEWIDE) PART 2 DEFINITIONS 

## EXHIBIT 

# [-I

20.2.2.1 ISSUING AGENCY: New Mexico Environmental Improvement Board. [I 0127195; 20.2.2.1 NMAC - 

### Rn, 20 NMAC 2.100, 1013 1/02]

20.2.2.2 SCOPE: The provisions of this part shall apply to all New Mexico regulations regarding air quality, and codified as 20.2.3 NMAC through 20.2.99 NMAC. [10/27/95; 20.2.2.2 NMAC 

### - Rn, 20 NMAC 2.101, 1013 1/02]

20.2.2.3 STATUTORY AUTHORITY: The environmental improvement board "shall promulgate regulations and standards in



### ... air quality management" (NMSA 1978, section 74-1-8.A) and "the Environmental Improvement Board



### ... shall adopt



### ... regulations to attain and maintain national ambient air quality standards and prevent or abate air pollution 

### ..." (NMSA 1978, section 74-2-5.B). [10/27/95; 20.2.2.3 NMAC 

### - Rn, 20 NMAC 2.102, 1013 1/02]

20.2.2.4 DURATION: Permanent. [10/27/95; 20.2.2.4 NMAC 

### - 

### Rn, 20 NMAC 2.103, 1013 1/02]

20.2.2.5 EFFECTIVE DATE: October 27, 1995. [10/27/95; 20.2.2.5 NMAC 

### - Rn, 20 NMAC 2.104, 1013 1/02] [The latest effective date of any section in this 

### Part is 01/01/08.]

20.2.2.6 OBJECTIVE: To provide specific definitions for terms used and not defined in air quality regulations 20.2.3 NMAC through 20.2.99 NMAC. [10/27/95; 20.2.2.6 NMAC 

## - Rn, 20 NMAC 2.105, 1013 1/02]

20.2.2.7 DEFINITIONS: The following definitions apply to all Parts of Title 20, Chapter 2 NMAC. A. "Administratorr7 means the administrator of the United States environmental protection agency (US EPA) or his or her designee. B. "Aerodynamic diameter" means the diameter of a sphere of unit density which behaves aerodynamically the same as the particle of the test substance. It is used to predict where particles of different size and density may be deposited in the respiratory tract. C. "Air contaminant" means any airborne substance, including but not limited to, any particulate matter, fly ash, dust, fumes, gas, mist, smoke, vapor, micro-organisms, radioactive material, any combination thereof or any decay or reaction product thereof. D. "Air pollution" means the emission, except as such emission occurs in nature, into the outdoor atmosphere of one or more air contaminants in such quantities and duration as may with reasonable probability injure human health, animal or plant life, or as may unreasonable interfere with the public welfare, visibility or the reasonable use of property. E. "Asbestos" includes chrysolite, crocidolite, amosite, anthophylite, tremolite, and actinolite. F. "Board" means the New Mexico environmental improvement board or its successor agency or authority. G. "Carbon dioxide" means the chemical compound containing one atom of carbon and two atoms of oxygen. 

### H. "Carbon monoxide" means the chemical compound containing one atom of carbon and one atom of oxygen. I. "Department" means the New Mexico environment department or its successor agency or authority, as represented by the department secretary or his or her designee. J. "Federal act" means the Federal Clean Air Act, as amended, 42 U.S.C. sections 7401 et seq. 

### K. "Flue" means, any duct for air, gases, or the like, such as a stack or chimney. 

### L. "Fugitive dust" or "fugitive particulate matter" means particulate emissions which escape to the atmosphere due to leakage; materials handling, transfer or storage; travel over unpaved roads or parking areas; or other industrial activities, and which are not ducted through exhaust systems.

Proposed Revisions to 20.2.2.7 NMAC 

### 1M. "Greenhouse gas" means any of the following: carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons or sulfur hexafluoride. N. "Heavy metal" means any metal having an atomic number greater than 2 1. 0. "Hydrofluorocarbons" means gaseous chemical compounds containing only hydrogen, carbon, and fluorine atoms. P. "Hydrogen sulfide" means the chemical compound containing two atoms of hydrogen and one atom of sulfur. 

### Q. "Kraft pulp" means the fibrous cellulose material produced in a kraft mill. R. "Lead" means elemental lead; alloys in which one of the elements is lead; or compounds containing lead, which are measured as elemental lead. S. "Methane" means the chemical compound containing one atom of carbon and four atoms of hydrogen. 

### T. "mg/m3" means milligrams per cubic meter. 

### U. "Nitrogen dioxide" means the chemical compound containing one atom of nitrogen and two atoms of oxygen, for the purposes of ambient determinations. The term "nitrogen dioxide," for the purposes of stack emissions monitoring, shall include nitrogen dioxide (the chemical compound containing one atom of nitrogen and

two atoms of oxygen), nitric oxide (the chemical compound containing one atom of nitrogen and one atom of oxygen), and other oxides of nitrogen which may test as nitrogen dioxide. V. "Nitrous oxide" means the chemical compound containing two atoms of nitrogen and one atom of oxygen. W. "Non-methane hydrocarbons" means any combination of hydrocarbons (chemical compounds consisting of hydrogen and carbon) excluding only the molecule methane. X. "Ozone" means the chemical compound having the molecular composition of three oxygen atoms. 

### Y. "Particulate matter" means any airborne, finely divided solid or liquid material with an aerodynamic diameter smaller than 100 micrometers. Z. "Particulate matter emissions" means all finely divided solid or liquid material, other than uncombined water, emitted to the ambient air as measured by: applicable reference methods; an equivalent or alternative method specified by the administrator; or a test method specified in the New Mexico state implementation plan. AA. "Perfluorocarbons" means gaseous chemical compounds containing only carbon and fluorine

atoms. AB. "Person" means any individual; partnership; corporation; association; municipality; the state or political subdivision of the state; and any agency, department, or instrumentality of the United States and any of their officers, agents, or employees. AC. "Photochemical oxidents" means those oxidizing chemical compounds which are the products of photo initiated reactions involving organic compounds and nitrogen oxides, consisting primarily of ozone and peroxyacetyl nitrate (PAN). AD. "PM10" means particulate matter with an aerodynamic diameter less than or equal to a nominal 10 micrometers. 

### AE. "PM10 emissions" means finely divided solid or liquid material with an aerodynamic diameter less than or equal to a nominal 10 micrometers, emitted to the ambient air, as measured by: an applicable reference method; an equivalent or alternative method specified by the 

### EPA administrator; or a test method specified in the New Mexico state implementation plan. 

### AF. "PM2.5" means particulate matter with an aerodynamic diameter less than or equal to a nominal 2.5 micrometers. AG. "PM2.5 emissions" means finely divided solid or liquid material with an aerodynamic diameter less than or equal to a nominal 2.5 micrometers, emitted to the ambient air, as measured by: an applicable reference method; an equivalent or alternative method specified by the 

### EPA administrator: or a test method specified in the New Mexico state implementation plan. 

### AFM. "ppm" means parts per million by volume. ffiAI. "Ringelmann scale" means the grading of opacity, appearance, density or shade of a smoke emission, in determining the light-obscuring power of smoke. 

### &EM. "Schedule of compliance" means a schedule or timetable, acceptable to the board, which clearly
sets out in detail, the steps to be taken in achieving the objectives of a regulation or standard.

Proposed Revisions to 20.2.2.7 NMAC 2"Secretary1' means the secretary of the New Mexico environment department or his or her designee. 

### Ad&. "Smoke" means small gas-borne particles resulting from incomplete combustion, consisting predominantly, by not exclusively, of carbon, soot and combustible material. 

### &A. "Sulfur dioxide" means the chemical compound containing one atom of sulfur and two atoms of oxygen, for the purposes of'ambient determinations. The term sulfur dioxide, for the purposes of stack emissions monitoring, shall include sulfur dioxide (chemical compound containing one atom of sulfur and two atoms of oxygen), and other oxides of sulfur which may test as sulfur dioxide. 

### A&!. "Sulfur hexafluoride" means the chemical compound containing one atom of sulfur and six atoms of fluorine. 

### AM&. "Total reduced sulfur" means any combination of sulfur compounds, except sulfur dioxide and free sulfur, which test as total reduced sulfur, including, but not limited to, hydrogen sulfide, methyl mercaptan, and ethyl mercaptan. AF4M. "Total suspended particulates (TSP)" means particulate matter as measured by the method described in 40 CFR Part 50, Appendix B. 

### A&&. "ugIm3" means micrograms per cubic meter. 

# em. "US EPA" means the United States environmental protection agency. AQU. "Volatile organic compound (VOC)" means any organic compound which participates in atmospheric photochemical reactions; that is, any organic compound other than those which the administrator designates as having negligible photochemical reactivity. [10/27/95; 20.2.2.7 NMAC 

## - Rn, 20 NMAC 2.2.200 1013 1/02; A, 01/01/08; A, xx/xx/xx]

20.2.2.8 AMENDMENT AND SUPERSESSION OF PRIOR REGULATIONS: This part supersedes AQCR 100, originally filed on January 23, 1970, and subsequently amended and refiled on May 26, 197 1, September 1, 1971, September 14, 1973, June 14, 1974, July 15, 1974, February 7, 1983, May 26, 1983, August 

### 1, 1988, and May 29, 1990. [10/27/95; 20.2.2.8 NMAC 

## - Rn, 20 NMAC 2.2.106, 1013 1/02]

20.2.2.9 DOCUMENTS: Documents cited in this part may be viewed at the New Mexico Environment Department, Air Quality Bureau, Runnels Building, 

### 1 190 Saint Francis Drive, Santa Fe, NM 87503 [2048 Galisteo St., Santa Fe, NM 875051. [10/27195; 20.2.2.9 NMAC 

## - Rn, 20 NMAC 2.2.107, 1013 1/02]

HISTORY OF 20.2.2 NMAC: Pre-NMAC History: The material in this part was derived from that previously filed with the commission of public records-state records center and archives: HSSD 70-1, Ambient Air Quality Standards and Air Quality Control Regulations, 01/27/70. AQCR 100, Air Quality Control Regulation I00 

## - Definitions, 02/07/83. AQCR 100, Air Quality Control Regulation 100 

### - Definitions, 05/26/83. EIBIAQCR 100, Air Quality Control Regulation 100 - Definitions, 0810 1/88. EIBIAQCR 100, Air Quality Control Regulation 100 - Definitions, 05/29/90.

History of Repealed Material: [RESERVED]

Other History: EIBIAQCR 100, Air Quality Control Regulation 100 

### - Definitions, filed 05/29/90 was renumbered into first version of the New Mexico Administrative Code as 20 NMAC 2.2, Definitions, effective 10/27/95. 20 NMAC 2.2, Definitions (filed 09/27/95) was renumbered, reformatted and replaced by 20.2.2 NMAC, Definitions, effective 1013 1/02.

Proposed Revisions to 20.2.2.7 NMACTITLE 20 ENVIRONMENTAL PROTECTION 

## EXHIBIT 

# 1-

CHAPTER 2 AIR QUALITY (STATEWIDE) PART 74 PERMITS 

### - PREVENTION OF SIGNIFICANT DETERIORATION (PSD)

20.2.74.1 ISSUING AGENCY: New Mexico Environmental Improvement Board [07/20/95; 20.2.74.1 NMAC 

### - Rn, 20 NMAC 2.74.100, 1013 1/02]

20.2.74.2 SCOPE: Any person constructing any new major stationary source or major modification as defined in this Part, that emits or will emit regulated pollutants in 

### an attainment or unclassified area. [07/20/95; 20.2.74.2 NMAC 

### - Rn, 20 NMAC 2.74.101, 1013 1/02]

20.2.74.3 STATUTORY AUTHORITY: The Environmental Improvement Board "shall promulgate regulations and standards in



### ... air quality management" (NMSA 1978, section 74-1-8.A) and "the environmental improvement board



### ...shall adopt



### ... regulations to attain and maintain national ambient air quality standards and prevent or abate air pollution 

### ..." (NMSA 1978, section 74-2-5.B). [07/20/95; 20.2.74.3 NMAC 

### - Rn, 20 NMAC 2.74.102, 1013 1/02]

20.2.74.4 DURATION: Permanent. [07/20/95; 20.2.74.4 NMAC 

### - Rn, 20 NMAC 2.74.103, 1013 1/02]

20.2.74.5 EFFECTIVE DATE: July 20, 1995, except where a later date is cited at the end of a section or paragraph. [07/20/95; 01/01/00; 20.2.74.5 NMAC 

### - 

### Rn, 20 NMAC 2.74.104, 10/31/02] [The latest effective date of any section in this Part is 1/22/06.]

20.2.74.6 OBJECTIVE: The purpose of this Part is to require any person constructing any new major stationary source or major modification as defined in this Part, that emits or will emit regulated pollutants in an attainment or unclassified area, to obtain a permit from the Department in accordance with the requirements of this Part prior to the construction or modification. [07/20/95; 20.2.74.6 NMAC 

### - Rn, 20 NMAC 2.74.105, 1013 1/02]

20.2.74.7 DEFINITIONS: Terms used but not defined in this part shall have the meaning given them by 20.2.2 NMAC (Definitions) (formerly AQCR 100). As used in this part the following definitions shall apply. A. "Actf'means the Federal Clean Air Act, as amended, 42 

### U. S. C. Sections 7401 et seq. B. "Actual emissions" means the actual rate of emissions of a regulated new source review pollutant from an emissions unit, as determined in accordance with Paragraphs (2) through (4) of this subsection. (1) This definition shall not apply for calculating whether a significant emissions increase has occurred, or for establishing a PAL under 20.2.74.320 NMAC. Instead, Subsections 

### G and AQ of this section shall apply for those purposes. (2) In general, actual emissions as of a particular date shall equal the average rate, in tons per year, at which the unit actually emitted the pollutant during a consecutive 24-month period which precedes the particular date and which is representative of normal source operation. The department shall allow the use of a different time period upon a determination that it is more representative of normal source operation. Actual emissions shall be calculated using the unit's actual operating hours, production rates, and types of materials processed, stored, or combusted during the selected time period. (3) The department may presume that source-specific allowable emissions for the unit are equivalent to the actual emissions of the unit. (4) For any emissions unit that has not begun normal operations on the particular date, actual emissions shall equal the potential to emit of the unit on that date. C. "Administrator" means the administrator of the U.S. environmental protection agency (EPA) or

an authorized representative. D. "Adverse impact on visibilityf' means visibility impairment which interferes with the management, protection, preservation, or enjoyment of the visitor's visual experience of the class 

### I federal area. This determination must be made on a case-by-case basis taking into account the geographic extent, intensity, duration, frequency, and time of the visibility impairments and how these factors correlate with the following: 1)

Proposed Revisions to 20.2.74 NMACtimes of visitor use of the class 

### I federal area; and 2) the frequency and timing of natural conditions that reduce visibility. This term does not include effects on integral vistas as defined in 40 CFR 51.301 Definitions. 

### E. "Allowable emissions" means the emissions rate of a stationary source calculated using the maximum rated capacity of the source (unless the source is subject to federally enforceable limits which restrict the operating rate, or hours of operation, or both) and the most stringent of the following: (1) the applicable standards as set forth in 40 CFR Parts 60 and 61; (2) the applicable state implementation plan emissions limitation, including those with a future compliance date; or (3) the emissions rate specified as a federally enforceable permit condition, including those with a future compliance date. F.- "Attainment area" means, for any air pollutant, an area which is shown by monitored data or which is calculated by air quality modeling not to exceed any national ambient air quality standard for such pollutant, and is so designated under Section 107 (d) (I) 

### (D) or 

### (E) of the act. G. "Baseline actual emissions'' means the rate of emissions, in tons per year, of a regulated new source review pollutant, as determined in accordance with the following. 

### (1) For any existing electric utility steam generating unit, baseline actual emissions means the
average rate, in tons per year, at which the unit actually emitted the pollutant during any consecutive 24-month period selected by the owner or operator within the 5-year period immediately preceding when the owner or operator begins actual construction of the project. The department shall allow the use of a different time period upon a determination that it is more representative of normal source operation. (a) The average rate shall include fugitive emissions to the extent quantifiable, and emissions associated with startups, shutdowns, and malfunctions. (b) The average rate shall be adjusted downward to exclude any non-compliant emissions that occurred while the source was operating above an emission limitation that was legally enforceable during the consecutive 24-month ueriod. (c) For a regulated new source review pollutant, when a project involves multiple emissions units, only one consecutive 24-month period must be used to determine the baseline actual emissions for the emissions units being changed. A different consecutive 24-month period can be used For each regulated new source review pollutant. (d) The average rate shall not be based on any consecutive 24-month period for which there is inadequate information for determining annual emissions, in tons per year, and for adjusting this amount if required by Subparagraph (b) of this paragraph. 

### (2) For an existing emissions unit (other than an electric utility steam generating unit), baseline actual emissions means the average rate, in tons per year, at which the emissions unit actually emitted the pollutant during
any consecutive 24-month period selected by the owner or operator within the 10-year period immediately preceding either the date the owner or operator begins actual construction of the project, or the date a complete permit application is received by the department for a permit required either under this part or under a plan approved by the administrator, whichever is earlier, except that the 10-year period shall not include any period earlier than November 15, 1990. (a) The average rate shall include fugitive emissions to the extent quantifiable, and emissions associated with startups, shutdowns, and malfunctions. (b) The average rate shall be adjusted downward to exclude any non-compliant emissions that occurred while the source was operating above an emission limitation that was legally enforceable during the consecutive 24-month period. (c) The average rate shall be adjusted downward to exclude any emissions that would have exceeded an emission limitation with which the major stationary source must currently comply, had such major stationary source been required to comply with such limitations during the consecutive 24-month period. However, if an emission limitation is part of a maximum achievable control technology standard that the administrator proposed or promulgated under 4.0 CFR Part 63, the baseline actual emissions need only be adjusted if the state has taken credit for such emissions reductions in an attainment demonstration or maintenance plan consistent with the requirements of 40 CFR 5 1.165(a)(3)(ii)(G). (d) For a regulated new source review pollutant, when a project involves multiple emissions units, only one consecutive 24-month period must be used to determine the baseline actual emissions for the emissions units being changed. A different consecutive 24-month period can be used for each regulated new source review pollutant.

Proposed Revisions to 20.2.74 NMAC(e) The average rate shall not be based on any consecutive 24-month period for which there is inadequate information for determining annual emissions, in tons per year, and for adjusting this amount if required by Subparagraphs (b) and (c) of this paragraph. (3) For a new emissions unit, the baseline actual emissions for purposes of determining the emissions increase that will result from the initial construction and operation of such unit shall equal zero; and thereafter, for all other purposes, shall equal the unit's potential to emit. (4) For a PAL for a stationary source, the baseline actual emissions shall be calculated for existing electric utility steam generating units in accordance with the procedures contained in Paragraph (I) of this subsection, for other existing emissions units in accordance with the procedures contained in Paragraph (2) of this subsection, and for a new emissions unit in accordance with the procedures contained in Paragraph (3) of this subsection. 

### H. "Baseline area" means all lands designated as attainment or unclassifiable in which the major

source or major modification would construct or would have an air quality impact equal to or greater than one microgram per cubic meter (annual average) of the pollutant for which the minor source baseline date is established. The major source or major modification establishes the minor source baseline date (see the definition "minor source baseline date" in this part). Lands are designated as attainment or unclassifiable under Section 107(d)(l)(D) or 

### (E) of the act within each federal air quality control region in the state of New Mexico. Any baseline area established originally for TSP (total suspended particulates) increments shall remain in effect and shall apply for purposes of determining the amount of available PM-I 0 increments. A 

### TSP baseline area shall not remain in effect if the department rescinds the corresponding minor source baseline date (see "minor source baseline date" in this part). 

### I. "Baseline concentration" means that ambient concentration level that exists in the baseline area

at the time of the applicable minor source baseline date. 

### (1) A baseline concentration is determined for each pollutant for which a minor source baseline date is established and shall include: (a) the actual emissions, as defined in this section, representative of sources in existence on the applicable minor source baseline date, except as provided in Paragraph (2) of this subsection; (b) the allowable emissions of major stationary sources that commenced construction before the major source baseline date, but were not in operation by the applicable minor source baseline date. (2) The following will not be included in the baseline concentration and will affect the applicable maximum allowable increase(s): (a) actual emissions, as defined in this section, from any major stationary source on which construction commenced after the major source baseline date; and (b) actual emissions increases and decreases, as defined in Subsection B of this section, at any stationary source occurring after the minor source baseline date. 

### J. "Begin actual construction" means, in general, initiation of physical onsite construction activities on an emissions unit which are of a permanent nature. Such activities include, but are not limited to, installation of building supports and foundations, laying underground pipework and construction of permanent storage structures. With respect to a change in method of operations, this term refers to those on-site activities other than preparatory activities which mark the initiation of the change. 

### K. "Best Available Control Technology (BACT)" means an emissions limitation (including a visible emission standard) based on the maximum degree of reduction for each regulated pollutant which would be emitted from any proposed major stationary source or major modification, which the secretary determines is achievable on a case-by-case basis. This determination will take into account energy, environmental, and economic impacts and other costs. The determination must be achievable for such source or modification through application of production processes or available methods, systems, and techniques, including &el cleaning, clean fuels, or

treatment or innovative &el combustion techniques for control of such pollutants. In no event shall application of best available control technology result in emissions of any pollutant which would exceed the emissions allowed by any applicable standard under 40 CFR Parts 60 and 61. If the secretary determines that technological or economic Limitations on the application of measurement methodology to a particular emissions unit would make the imposition of an emissions standard infeasible, a design, equipment, work practice, operational standard, or combination thereof, may be prescribed instead to satisfy the requirement for the application of best available control technology. Such standard shall, to the degree possible, set forth the emissions reduction achievable by implementation of such design, equipment, work practice, or operation, and shall provide for compliance by means which achieve equivalent results. 

### L. "Building, structure, facility, or installation" means all of the pollutant emitting activities which belong to the same industrial grouping, are located on one or more contiguous or adjacent properties, and are

Proposed Revisions to 20.2.74 NMAC 3under the control of the same person (or persons under common control). Pollutant-emitting activities shall be considered as part of the same industrial grouping if they belong to the same "major group" (i.e., which have the

same first two digit code) as described in the standard industrial classification (SIC) manual, 1972, as amended by the 1977 supplement (U. S. government printing office stock numbers 4101-0066 and 003-005-00176-0, respectively) or any superseding SIC manual. M. "Class I federal area" means any federal land that is classified or reclassified as "class 

### I" as described in 20.2.74.108 NMAC. 

### N. "Commence" means, as applied to construction of a major stationary source or major modification, that the owner or operator has all necessary preconstruction approvals or permits and has: (1) Begun, or caused to begin, a continuous program of actual on-site construction of the source, to be completed within a reasonable time; or (2) Entered into binding agreements or contractual obligations, which cannot be cancelled or modified without substantial loss to the owner or operator, to undertake and complete, within a reasonable time, a program of actual construction. 0. "Construction" means any physical change or change in the method of operation (including fabrication, erection, installation, demolition, or modification of an emissions unit) that would result in a change in emissions. P. "Continuous emissions monitoring system (CEMS)" means all of the equipment that may be required to meet the data acquisition and availability requirements of this section, to sample, condition (if applicable), analyze, and provide a record of emissions on a continuous basis. 

### Q. "Continuous emissions rate monitoring system (CERMS)" means the total equipment required for the determination and recording of the pollutant mass emissions rate (in terms of mass per unit of time). R. "Continuous parameter monitoring system (CPMS)" means all of the equipment necessary to meet the data acquisition and availability requirements of this section, to monitor process and control device operational parameters (for example, control device secondary voltages and electric currents) and other information (for example, gas flow rate, 02 or C02 concentrations), and to record average operational parameter value(s) on a continuous basis. S. "Department" means the New Mexico environment department. T. "Electric utility steam generating unit" means any steam electric generating unit that is constructed for the purpose of supplying more than one-third of its potential electric output capacity and more than 25 megawatts electrical output to any utility power distribution system for sale. Any steam supplied to a steam distribution system for the purpose of providing steam to a steam-electric generator that would produce electrical
energy for sale is also considered in determining the electrical energy output capacity of the affected facility. 

### U. "Emissions unit" means any part of a stationary source that emits or would have the potential to emit any regulated new source review pollutant and includes an electric utility steam generating unit as defined in this section. For purposes of this section, there are two types of emissions units as described in the following. (1) 

### A new emissions unit is any emissions unit that is (or will be) newly constructed and that has existed for less than 2 years from the date such emissions unit first operated. (2) An existing emissions unit is any emissions unit that does not meet the requirements in Paragraph (1) of this subsection. A replacement unit, as defined in this section, is an existing unit. V. "Federal land manager" means, with respect to any lands in the United States, a federal level cabinet secretary of a federal level department (e.g. interior dept.) with authority over such lands. 

### W. "Federally enforceable" means all limitations and conditions which are enforceable by the administrator, including: (1) those requirements developed pursuant to 40 CFR Parts 60 and 61 ; (2) requirements within any applicable state implementation plan; (3) any permit requirements established pursuant to 40 CFR 52.21; or (4) under regulations approved pursuant to 40 CFR Part 5 1, Subpart I including 40 CFR 5 1.165 and 40 CFR 5 1.166. X. "Fugitive emissions" means those emissions which could not reasonably pass through a stack, chimney, vent, or other functionally equivalent opening. Y. "High terrain" means any area having an elevation nine hundred (900) feet or more above the base of a source's stack. Z. "Indian governing body" means the governing body of any tribe, band, or group of Indians subject to the jurisdiction of the United States and recognized by the United States as possessing power of selfgovernment.

Proposed Revisions to 20.2.74 NMACAA. "Innovative Control Technology" means any system of air pollution control that has not been adequately demonstrated in practice. But such system would have a substantial likelihood of achieving greater continuous emissions reduction than any control system in current practice or achieving at least comparable reductions at lower cost in terms of energy, economics, or non-air quality environmental impacts. AB. "Low terrain" means any area other than high terrain. AC. "Lowest achievable emission rate" means, for any source, the more stringent rate of emissions based on the following: (1) the most stringent emissions limitation which is contained in the implementation plan of any state for such class or category of stationary source, unless the owner or operator of the proposed stationary source demonstrates that such limitations are not achievable; or (2) the most stringent emissions limitation which is achieved in practice by such class or category of stationary source; this limitation, when applied to a modification, means the lowest achievable emissions rate for the new or modified emissions units Within the stationary source. In no event shall the application of this term permit a proposed new or modified stationary source to emit any pollutant in excess of the amount allowable under an applicable new source standard of performance. AD. "Major modification" means any physical change in or change in the method of operation of a major stationary source that would result in: a significant emissions increase (as defined in of this section) of a regulated new source review pollutant (as defined in this section); and a significant net emissions increase of that pollutant from the major stationary source. Any significant emissions increase (as defined in this section) from any emissions units or net emissions increase (as defined in this section) at a major stationary source that is significant for volatile organic compounds or nitrogen oxides shall be considered significant for ozone. (1) A physical change or change in the method of operation shall not include: (a) routine maintenance, repair, and replacement; (b) use of an alternative fuel or raw material by reason of an order under Section 2 (a) and (b) of the Energy Supply and Environmental Coordination Act of 1974 (or any superseding legislation) or by reason of

a natural gas curtailment plan pursuant to the Federal Power Act; (c) use of an alternative fuel by reason of an order or rule under Section 125 of the act; (d) use of an alternative fuel at a steam generating unit to the extent that the fuel is generated from municipal solid waste; (e) use of an alternative fuel or raw material by a stationary source which: (i) the source was capable of accommodating before January 6, 1975, unless such change would be prohibited under any federally enforceable permit condition which was established after January 6, 1975 pursuant to 40 CFR 52.2 1 or under regulations approved pursuant to 40 CFR 

### 5 1.165 or 40 CFR 5 1.166; or (ii) the source is approved to use under any permit issued under 40 CFR 52.21 or under regulations approved pursuant to 40 CFR 5 1.166; (f) an increase in the hours of operation or in the production rate, unless such change would be prohibited under any federally enforceable permit which was established after January 6, 1975, pursuant to 40 CFR 52.21 or under regulations approved pursuant to 40 CFR 5 1.165 or 40 CFR 5 1.166; (g) any change in ownership at a stationary source; (h) the installation, operation, cessation, or removal of a temporary clean coal technology demonstration project, provided that the project complies with: (i) the state implementation plan for the state in which the project is located; and (ii) other requirements necessary to attain and maintain the national ambient air quality standards during the project and after it is terminated. (i) the installation or operation of a permanent clean coal technology demonstration project that constitutes repowering, provided that the project does not result in an increase in the potential to emit of any regulated pollutant emitted by the unit; this exemption shall apply on a pollutant-by-pollutant basis; (j) the reactivation of a very clean coal-fired electric utility steam generating unit. (2) This definition shall not apply with respect to a particular regulated new source review pollutant when the major stationary source is complying with the requirements under 20.2.74.320 NMAC for a PAL for that pollutant. Instead, the definition at Paragraph (8) of Subsection B of 20.2.74.320 NMAC shall apply. AE. "Major source baseline date" means: (1) in the case of particulate matter and sulfur dioxide, January 6, 1975; and (2) in the case of nitrogen dioxide, February 8, 1988. AF. "Major stationary source" means the following.

Proposed Revisions to 20.2.74 NMAC(1) Any stationary source listed in table 1 (20.2.74.501 NMAC) which emits, or has the potential to emit, emissions equal to or greater than one hundred (100) tons per year of any regulated new source review pollutant. (2) Any stationary source not listed in table 1 (20.2.74.501 NMAC) and which emits or has the potential to emit two hundred fifty (250) tons per year or more of any regulated new source review pollutant. (3) Any physical change that would occur at a stationary source not otherwise qualifying under Paragraphs (1) or (2) of this subsection if the change would constitute a major stationary source by itself. (4) A major source that is major for volatile organic compounds or nitrogen oxides shall be considered major for ozone. (5) The fugitive emissions of a stationary source shall not be included in determining for any of the
purposes of this section whether it is a major stationary source, unless the source belongs to one of the stationary source categories found in Table 1 (20.2.74.501 NMAC) or any other stationary source category which, as of August 7, 1980, is being regulated under Section 

### 1 1 1 or 1 12 of the act. AG. "Mandatory class I federal area" means any area identified in the Code of Federal Regulations (CFR), 40 CFR Part 81, Subpart 

### D. See 20.2.74.108 NMAC for a list of these areas in New Mexico. AH. "Minor source baseline date" means the earliest date after the trigger date on which the owner or operator of a major stationary source or major modification subject to 40 CFR 52.21 or to this part submits a complete application under the relevant regulations. 

### (1) The trigger date is: (a) in the case of particulate matter and sulfur dioxide, August 7, 1977; and (b) in the case of nitrogen dioxide, February 8, 1988. (2) Any minor source baseline date established originally for the TSP (total suspended particulates) increments shall remain in effect and shall apply for purposes of determining the amount of available PM-10 increments. The department may rescind any TSP minor source baseline date where it can be shown, to the department 's satisfaction, that the emissions increase from the major stationary source, or the net emissions increase from the major modification, responsible for triggering that date, did not result in a Significant amount of PM-I0 emissions. AI. "Natural conditions" includes naturally occurring phenomena that reduce visibility as measured in terms of visual range, contrast or coloration. AJ. "Necessary preconstruction approvals or permits" means those permits or approvals required under federal air quality control laws and regulations and those air quality control laws and regulations which are part of the New Mexico state implementation plan. AK. "Net emissions increase'' means, with respect to any regulated new source review pollutant emitted by a major stationary source, the following. (1) The amount by which the sum of the following exceeds zero. (a) The increase in emissions from a particular physical change or change in the method of operation at a stationary source as calculated pursuant to Subsection D of 20.2.74.200 NMAC. (b) Any other increases and decreases in actual emissions at the major stationary source that

are contemporaneous with the particular change and are otherwise creditable. Baseline actual emissions for calculating increases and decreases under this paragraph shall be determined as provided in Subsection G, except that Subparagraph (c) of Paragraph (1) and Subparagraph (d) of Paragraph (2) of Subsection G of this section shall

not apply. 

### (2) An increase or decrease in actual emissions is contemporaneous with the increase from the particular change only if it occurs within the time period five years prior to the commencement of construction on the particular change and the date that the increase from the particular change occurs. (3) An increase or decrease in actual emissions is creditable only if: (a) it occurs within the time period five years prior to the commencement of construction on the particular change and the date that the increase from the particular change occurs; and (b) the department has not relied on it in issuing a permit for the source under regulations approved pursuant to this section, which permit is in effect when the increase in actual emissions from the particular change occurs. (4) An increase or decrease in actual emissions of sulhr dioxide, particulate matter, or nitrogen oxides that occurs before the applicable minor source baseline date is creditable only if it is required to be considered in calculating the amount of maximum allowable increases remaining available. (5) An increase in actual emissions is creditable only to the extent that the new level of actual emissions exceeds the old level.

Proposed Revisions to 20.2.74 NMAC

### (6) A decrease in actual emissions is creditable only to the extent that: (a) the old level of actual emissions or the old level of allowable emissions, whichever is lower, exceeds the new level of actual emissions; (b) it is enforceable as a practical matter at and after the time that actual construction on the particular change begins; and (c) it has approximately the same qualitative significance for public health and welfare as that attributed to the increase from the particular change. 

### (7) An increase that results from a physical change at a source occurs when the emissions unit on which construction occurred becomes operational and begins to emit a particular pollutant. Any replacement unit that requires shakedown becomes operational only after a reasonable shakedown period, not to exceed 180 days. 

### (8) Paragraph (2) of Subsection B of this section shall not apply for determining creditable increases and decreases. AL. "Nonattainment area" means an area which has been designated under Section 107 of the Federal Clean Air Act as nonattainment for one or more of the national ambient air quality standards by EPA. AM. "Portable stationary source" means a source which can be relocated to another operating site with limited dismantling and reassembly. AN. "Potential to emit" means the maximum capacity of a stationary source to emit a pollutant under its physical and operational design. Any physical or operational limitation on the capacity of the source to emit a pollutant, including air pollutant control equipment and restrictions on hours of operation or on the type or amount of material combusted, stored, or processed, shall be treated as part of its design if the limitations or the effect it would have on emissions is federally enforceable. Secondary emissions do not count in determining the potential to emit of a stationary source. AO. "Predictive emissions monitoring system (PEMS)" means all of the equipment necessary to monitor process and control device operational parameters (for example, control device secondary voltages and electric currents) and other information (for example, gas flow rate, 02or C02 concentrations), and calculate and record the mass emissions rate (for example, Ibh) on a continuous basis. AP. "Project" means a physical change in, or change in method of operation of, an existing major stationary source. AQ, "Projected actual emissions" means the maximum annual rate, in tons per year, at which an existing emissions unit is projected to emit a regulated new source review pollutant in any one of the 

### 5 years (12- month period) following the date the unit resumes regular operation after the project, or in any one of the 10 years following that date, if the project involves increasing the emissions unit's design capacity or its potential to emit that regulated new source review pollutant, and full utilization of the unit would result in a significant emissions increase, or a significant net emissions increase at the major stationary source. In determining the projected actual emissions (before beginning actual construction), the owner or operator of the major stationary source: 

### (1) shall consider all relevant information, including but not limited to, historical operational data, the company's own representations, the company's expected business activity and the company's highest projections of business activity, the company's filings with the state or federal regulatory authorities, and compliance plans under the approved plan; and (2) shall include fugitive emissions to the extent quantifiable and emissions associated with startups, shutdowns, and malfunctions; and (3) shall exclude, in calculating any increase in emissions that results from the particular project, that portion of the unit's emissions following the project that an existing unit could have accommodated during the consecutive 24-month period used to establish the baseline actual emissions under Subsection G of this section and that are also unrelated to the particular project, including any increased utilization due to product demand growth;

or, (4) in lieu of using the method set out in Paragraphs (1) through (3) of this subsection, may elect to

use the emissions unit's potential to emit, in tons per year, as defined in Subsection AQ of this section. AR. "Regulated new source review pollutant", for purposes of this part, means the following: (1) any pollutant for which a national ambient air quality standard has been promulgated and any constituents or precursors for such pollutants identified by the administrator (e.g., volatile organic compounds 

### & nitrogen oxides are precursors for ozone); (2) any pollutant that is subject to any standard promulgated under Section 1 

### 11 of the act; (3) any class I or 

### I1 substance subject to a standard promulgated under or established by title VI of the act; or

Proposed Revisions to 20.2.74 NMAC 7(4) any pollutant that otherwise is subject to regulation under the act; except that any or all hazardous air pollutants either listed in Section 112 of the act or added to the list pursuant to Section 112(b)(2) of the act, which have not been delisted pursuant to Section 112(b)(3) of the act, are not regulated new source review pollutants unless the listed hazardous air pollutant is also regulated as a constituent or precursor of a general pollutant listed under Section 108 of the act. AS. "Replacement unit" means an emission unit for which all of the following criteria are met. No creditable emission reductions shall be generated from shutting down the existing emissions unit that is replaced. (1) The emissions unit is a reconstructed unit within the meaning of 40 CFR 60.15(b)(l), or the emissions unit completely takes the place of an existing emissions unit. (2) The emissions unit is identical to or hnctionally equivalent to the replaced emissions unit. (3) The replacement unit does not change the basic design parameter(s) of the process unit. (4) The replaced emissions unit is permanently removed from the major stationary source, otherwise permanently disabled, or permanently barred from operation by a permit that is enforceable as a practical matter. If the replaced emissions unit is brought back into operation, it shall constitute a new emissions unit. AT. "Secondary emissions" means emissions which occur as a result of the construction or operation of a major stationary source or major modification, but do not come from the major stationary source or major modification itself. For the purpose of this section, secondary emissions must be specific, well defined, quantifiable, and impact the same general areas as the stationary source or modification which causes the secondary emissions. Secondary emissions include emissions from any offsite support facility which would not be constructed or increase its emissions except as a result of the construction or operation of the major stationary source or major modification. Secondary emissions do not include any emissions which come directly from a mobile source, such as emissions from the tailpipe of a motor vehicle, from a train, or from a vessel. AU. "Secretary" means the cabinet level secretary of the New Mexico environment department or his or her successor. AV. "Significant" means in reference to a net emissions increase or the potential of a source to emit air pollutants, a rate of emission that would equal or exceed any of the rates listed in table 2 (20.2.74.502 NMAC). AW. "Significant emissions increase" means, for a regulated new source review pollutant, an increase in emissions that is significant (as defined in Subsection AV of this section) for that pollutant. AX. "Stationary source" means any building, structure, facility, or installation which emits, or may emit, any regulated new source review pollutant. AY. "Temporary source" means a stationary source which changes its location or ceases to exist within two years from the date of initial start of operations. AZ. "Visibility impairment" means any humanly perceptible change in visibility (visual range, contrast, coloration) from that which would have existed under natural conditions. BA. "Volatile organic compound (VOC)" means any organic compound which participates in atmospheric photochemical reactions; that is, any organic compound other than those which the administrator designates as having negligible photochemical reactivity. [07/20/95; 01/01/00; 20.2.74.7 NMAC 

### - 

### Rn,20 NMAC 2.74.107, 1013 1/02; A, 1/22/06]

20.2.74.8 AMENDMENT AND SUPERSESSION OF PRIOR REGULATIONS: This Part amends and supersedes Air Quality Control Regulation (AQCR) 707, which was originally filed on February 14, 1984, and subsequently refiled on July 15, 1986; August 1, 1988; and May 29, 1990. All references to AQCR 707 in any other rule shall be understood as a reference to this Part. [07/20/95; 20.2.74.8 NMAC 

### - Rn, 20 NMAC 2.74.106, 1013 1/02]

20.2.74.9 DOCUMENTS: Documents cited in this Part may be viewed at the New Mexico Environment Department, Air Quality Bureau, Harold Runnels Building, 1 190 St. Francis Drive, Santa Fe, NM 87503 [2048 Galisteo St., Santa Fe, NM 875051. [07/20/95; 20.2.74.9 NMAC - 

### Rn, 20 NMAC 2.74.109, 1013 1/02]

20.2.74.10 SEVERABILITY. If any provision of this part, or the application of such provision to any person or circumstance, is held invalid, the remainder of this part, or the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby. [20.2.74.10 NMAC 

### - N, 1/22/06]

20.2.74.11 CONSTRUCTION. This part shall be liberally construed to carry out its purpose.

Proposed Revisions to 20.2.74 NMAC[20.2.74.1 1 NMAC 

### - N, 1/22/06]

20.2.74.12 SAVINGS CLAUSE. Repeal or supersession of prior versions of this part shall not affect any administrative or judicial action initiated under those prior versions. [20.2.74.12 NMAC - N, 1/22/06]

20.2.74.13 COMPLIANCE WITH OTHER REGULATIONS. Compliance with this part does not relieve

a person from the responsibility to comply with any other applicable federal, state, or local regulations. [20.2.74.13 NMAC 

### - N, 1/22/06]

20.2.74.14 LIMITATION OF DEFENSE. The existence of a valid permit under this part shall not constitute

a defense to a violation of any section of this part, except the requirement for obtaining a permit. [20.2.74.14 NMAC 

### - N, 1/22/06]

20.2.74.15 to 20.2.74.107 [RESERVED]

20.2.74.108 RESTRICTIONS ON AREA CLASSIFICATIONS: A. Mandatory Class I Federal areas: (1) The following areas which were in existence on August 7, 1977, shall be mandatory Class I Federal areas and may not be redesignated: (a) International parks (all of them); (b) National wilderness areas which exceed 5,000 acres in size; (c) National memorial parks which exceed 5,000 acres in size; and (d) National parks which exceed 6,000 acres in size. (2) Specifically for New Mexico, these areas are: (a) Bandelier Wilderness, administered by NPS; (b) Bosque del Apache Wilderness, administered by NFWS; 

### (c) Carlsbad Caverns National Park, administered by NPS; (d) Gila Wilderness, administered by NFS; (e) Pecos Wilderness, administered by NFS; (f) Salt Creek Wilderness, administered by NFWS; (g) San Pedro Parks Wilderness, administered by NFS; (h) Wheeler Peak Wilderness, administered by NFS; and (i) White Mountain Wilderness, administered by NFS; where: NPS = National Park Service, NFWS =National Fish and Wildlife Service, NFS = National Forest Service. B. Areas which may be redesignated only as Class 1 or Class 11: (1) The following areas may be redesignated only as Class I or 11: (a) an area, as of August 

### 7, 1977, which exceeds 10,000 acres in size and is a national monument, national primitive area, national preserve, national recreational area, national wild and scenic river, national wildlife refuge; or (b) a national park or national wilderness area established after August 

### 7, 1977 which exceeds 10,000 acres in size. (2) Specifically for New Mexico, these areas include (but are not necessarily limited to): (a) Apache Kid Wilderness, administered by NFS; (b) Bandelier National Monument, administered by NPS; (c) Bitter Lake National Wildlife Refuge, administered by NFWS; (d) Blue Range Wilderness, administered by NFS; (e) Bosque del Apache National Wildlife Refuge, administered by NFWS; (f) Capitan Mountains Wilderness, administered by NFS; (g) Cebolla Wilderness, administered by BLM; (h) Chama River Canyon Wilderness, administered by NFS; (i) Cruces Basin Wilderness, administered by NFS; (j) De-na-zin Wilderness, administered by BLM; (k) 

### El Malpais National Monument, administered by NPS; (1) Latir Peak Wilderness, administered by NFS; (m) Manzano Mountain Wilderness, administered by NFS;

Proposed Revisions to 20.2.74 NMAC(n) San Andres National Wildlife Refuge, administered by NFWS;

(0) Sandia Mountain Wilderness, administered by NFS; (p) Sevilleta National Wildlife Refuge, administered by NFWS; (q) West Malpais Wilderness, administered by BLM; 

### (r) White Sands National Monument, administered by NPS; and (s) Withington Wilderness, administered by NFS; where: NFS =National Forest Service, NPS

= National Park Service, NFWS =National Fish and Wildlife Service, BLM = Bureau of Land Management. [07/20/95; 20.2.74.108 NMAC 

### - Rn, 20 NMAC 2.74.108, 1013 1/02]

20.2.74.109 to 20.2.74.199 [RESERVED]

20.2.74.200 

### APPLICABILITY. A. The requirements of this part apply to the construction of any new major stationary source (as defined in 20.2.74.7 NMAC) or any project at an existing major stationary source in an area designated as attainment or unclassifiable. B. The requirements of Sections 300 through 306,400 and 403 of this part apply to the construction of any new major stationary source or the major modification of any existing major stationary source, except 

### as this part otherwise provides. C. No new major stationary source or major modification to which the requirements of Subsections A, B, C and D of 20.2.74.300 NMAC, and Sections 301,302,303,304,305,306,400 and 403 of this part apply shall begin actual construction without a permit that states that the major stationary source or major modification will meet those requirements. D. Applicability procedures. 

### (1) Except as otherwise provided in Subsections E and 

### F of this section, and consistent with the definition of major modification contained in 20.2.74.7 NMAC, a project is a major modification for a regulated

new source review pollutant if it causes two types of emissions increases 

### - a significant emissions increase (as defined in 20.2.74.7 NMAC), and a significant net emissions increase (as defined in Subsections AK and AV of 20.2.74.7 NMAC). The project is not a major modification if it does not cause a significant emissions increase. If the project causes a significant emissions increase, then the project is a major modification only if it also results in a significant net emissions increase. (2) The procedure for calculating (before beginning actual construction) whether a significant emissions increase (i.e., the first step of the process) will occur depends upon the type of emissions units being modified, according to Paragraphs (3) through (4) of this subsection. The procedure for calculating (before beginning actual construction) whether a significant net emissions increase will occur at the major stationary source (i.e., the second step of the process) is contained in the definition in 20.2.74.7 NMAC. Regardless of any such preconstruction projections, a major modification results if the project causes a significant emissions increase and a significant net emissions increase. (3) Actual-to-projected-actual applicability test for projects that involve existing emissions units. A significant emissions increase of a regulated new source review pollutant is projected to occur if the sum of the difference between the projected actual emissions (as defined in 20.2.74.7 NMAC) and the baseline actual emissions (as defined in Paragraphs (1) and (2) of Subsection 

### G of 20.2.74.7 NMAC) for each existing emissions unit, equals

or exceeds the significant amount for that pollutant (as defined in 20.2.74.7 NMAC). (4) Actual-to-potential test for projects that involve construction of a new emissions unit(s). A significant emissions increase of a regulated new source review pollutant is projected to occur if the sum of the difference between the potential to emit (as defined in 20.2.74.7 NMAC) from each new emissions unit following completion of the project and the baseline actual emissions (as defined in Paragraph (3) of Subsection G of 20.2.74.7 NMAC) of these units before the project equals or exceeds the significant amount for that pollutant (as defined in 20.2.74.7 NMAC). (5) Hybrid test for projects that involve multiple types of emissions units. A significant emissions increase of a regulated NSR pollutant is projected to occur if the sum of the emissions increases for each emissions unit, using the method specified in Paragraphs (3) and (4) of this subsection as applicable with respect to each emissions unit, for each type of emissions unit equals or exceeds the significant amount for that pollutant. For example, if a project involves both an existing emissions unit and a new emissions unit, the projected increase is determined by summing the values determined using the method specified in Paragraph (3) of this subsection for the existing unit and determined using the method specified in Paragraph (4) of this subsection for the new unit.

Proposed Revisions to 20.2.74 NMAC 10

### E. For any major stationary source for a PAL for a regulated new source review pollutant, the major stationary source shall comply with requirements under 20.2.74.320 NMAC. [07/20/95; 20.2.74.200 NMAC - Rn, 20 NMAC 2.74.200, 1013 1/02; A, 1/22/06]

20.2.74.201 

### EXEMPTIONS: This Part shall not apply to: A. Each regulated pollutant emitted for which the area the source proposes to locate in is designated

as nonattainment; B. Sources or modifications that are part of a nonprofit health or nonprofit educational institution and

are approved by the Secretary; 

### C. A portable stationary source which has previously received a permit pursuant to this Part; and (1) The owner or operator proposes to relocate the source, and emissions from the source at the new location will be temporary; and (2) The emissions from the source would not exceed its allowable emission rate; and (3) The emissions from the source would not impact any Class I Federal area nor any area where an applicable increment is known to be violated; and (4) Reasonable notice is given to the Department prior to the relocation identifying the proposed new location and probable duration of operation at the new location. Such notice shall be given to the Department not less than ten (10) days in advance of the proposed relocation unless a different time interval is previously approved by the Department; D. A source or modification that would be major only if figitive emissions, to the extent they are quantifiable, are considered in calculating the potential to emit or net emissions increase, and the source does not belong to: (1) Any category in Table 1 of this Part (20.2.74.501 NMAC); or (2) Any other stationary source category which as of August 7, 1980 is being regulated under section 11l or 112 of the Act. [07/20/95; 20.2.74.201 NMAC 

### - Rn, 20 NMAC 2.74.201, 1013 1/02]

20.2.74.202 to 20.2.74.299 [RESERVED]

20.2.74.300 

### OBLIGATIONS OF OWNERS OR OPERATORS OF SOURCES: A. Any owner or operator who begins actual construction or operates a source or modification without, or not in accordance with, a permit issued under the requirements of this part shall be subject to enforcement action. B. The issuance of a permit does not relieve any person from the responsibility of complying with the provisions of the Air Quality Control Act, sections 74-2-1 to 74-2-17, NMSA 1978; any applicable regulations of the board; and any other requirements under local, state, or federal law. 

### C. Approval to construct shall become invalid if: 1) construction is not commenced within eighteen 

### (1 8) months after receipt of such approval; 2) if construction is discontinued for a period of eighteen (18) months or

more; or 3) if construction is not completed within a reasonable time. For a phased construction project, each phase

must commence construction within eighteen (18) months of the projected and approved commencement date. The secretary may extend the eighteen (1 8) month period upon a satisfactory showing that an extension is justified. 

### D. If a source or modification becomes a major stationary source or major modification solely due to

a relaxation in any enforceable limitation (which limitation was established after August 

### 7, 1980), on the capacity of the source or modification otherwise to emit a pollutant, such as a restriction on hours of operation, then this part shall apply to the source or modification as though construction had not yet commenced. 

### E. The following specific provisions apply to projects at existing emissions units at a major stationary source (other than projects at a source with a PAL) in circumstances where the owner or operator elects to

use the method specified in Paragraphs (I) through (3) of Subsection AQ of 20.2.74.7 NMAC for calculating projected actual emissions. 

### (1) Before beginning actual construction of the project, the owner or operator shall document and maintain a record of the following information: (a) a description of the project; (b) identification of the emissions unit(s) whose emissions of a regulated new source review pollutant could be affected by the project; and (c) a description of the applicability test used to determine that the project is not a major modification for any regulated new source review pollutant, including the baseline actual emissions, the projected

Proposed Revisions to 20.2.74 NMACactual emissions, the amount of emissions excluded under Paragraph (3) of Subsection AQ of 20.2.74.7 NMAC and

an explanation for why such amount was excluded, and any netting calculations, if applicable. (2) If the emissions unit is an existing electric utility steam generating unit, before beginning actual construction, the owner or operator shall provide a copy of the information set out in Paragraph (1) of this subsection to the department. Nothing in this paragraph shall be construed to require the owner or operator of such a unit to obtain any determination from the department; however, necessary preconstruction approvals and/or permits must be obtained before beginning actual construction. (3) The owner or operator shall monitor the emissions of any regulated new source review pollutant that could increase 

### as a result of the project and that is emitted by any emissions unit identified in Subparagraph (b) of Paragraph (I) of this subsection; and calculate and maintain a record of the annual emissions, in tons per year on

a calendar year basis, for a period of 5 years following resumption of regular operations after,the change, or for a period of 10 years following resumption of regular operations after the change if the project increases the design capacity or potential to emit of that regulated new source review pollutant at such emissions unit. (4) If the unit is an existing electric utility steam generating unit, the owner or operator shall submit a report to the department within 60 days after the end of each year during which records must be generated under Subparagraph (c) of Paragraph (I) of this subsection setting out the unit's annual emissions during the calendar year that preceded submission of the report.. (5) If the unit is an existing unit other than an electric utility steam generating unit, the owner or operator shall submit a report to the department if the annual emissions, in tons per year, from the project identified in Paragraph (1) of this subsection, exceed the baseline actual emissions (as documented and maintained pursuant to Subparagraph (c) of Paragraph (I) of this subsection) by a significant amount (as defined in 20.2.74.7 NMAC) for that regulated new source review pollutant, and if such emissions differ from the preconstruction projection as documented and maintained pursuant to Subparagraph (c) of Paragraph (I) of this subsection. Such report shall be submitted to the department within 60 days after the end of such year. The report shall contain the following: (a) the name, address and telephone number of the major stationary source; (b) the annual emissions as calculated pursuant to Paragraph (3) of this subsection; and (c) any other information that the owner or operator wishes to include in the report (e.g., an explanation as to why the emissions differ from the preconstruction projection). F. The owner or operator of the source shall make the information required to be documented and maintained pursuant to Subsection 

### E of this section available for review upon request for inspection by the department or the general public pursuant to.the requirements contained in 40 CFR 70.4(b)(3)(viii). [07/20/95; 20.2.74.300 NMAC 

## - Rn, 20 NMAC 2.74.300, 10/31/02; A, 1/22/06]

20.2.74.301 SOURCE INFORMATION: The owner or operator of a proposed source or modification shall submit all information necessary to perform any analysis or make any determination required under this Part. A. Information shall include, but is not limited to: (1) A description of the nature, location, design capacity, and typical operating schedule of the source or modification, including specifications and drawings showing the design and plant layout; and (2) A detailed schedule of construction of the source or modification; and (3) A detailed description of the planned system of continuous emission reduction for the source or modification, emission estimates, and other information necessary to determine that Best Available Control Technology will be applied. 

### B. Upon request by the Department, the owner or operator shall also provide information on: (1) The air quality impact of the source or modification, including meteorologic and topographic data necessary to estimate such impact; and (2) The air quality impacts, and the nature and extent of any or all general commercial, residential, industrial, and other growth which has occurred since August 7, 1977 in the area the source or modification would affect. [07/20/95; 20.2.74.30 1 NMAC - Rn, 20 NMAC 2.74.301, 1013 1/02]

20.2.74.302 CONTROL TECHNOLOGY REQUIREMENTS: A. A new major stationary source shall apply Best Available Control Technology for each regulated pollutant that it would have the potential to emit in amounts equal to or greater than the significance levels as listed in Table 2 of this Part (20.2.74.502 NMAC). This requirement applies to each proposed emissions unit or operation that will emit such pollutant.

Proposed Revisions to 20.2.74 NMACB. A major modification shall apply Best Available Control Technology for each regulated pollutant

at the source when a significant net emissions increase occurs 

### as defined in this Part. This requirement applies to each proposed emissions unit or operation where a net emissions increase in the pollutant would occur as a result of

a physical change or change in the method of operation in the unit. C. For phased construction projects, the determination of Best Available Control Technology shall be reviewed and modified as appropriate at the latest reasonable time but no later than eighteen (18) months prior to commencement of construction of each independent phase of the project. At such time, the owner or operator of the applicable stationary source may be required to demonstrate the adequacy of any previous determination of Best Available Control Technology for the source. D. The Department may approve a system of innovative control technology for the major stationary

source or major modification if: (1) The proposed control system would not cause or contribute to an unreasonable risk to public health, welfare, or safety in its operation or function; and (2) The owner or operator agrees to achieve a level of continuous emissions reduction equivalent to that which would have been required under Best Available Control Technology by a date specified by the Department. Such date shall not be later than four (4) years from the time of startup or seven (7) years from permit issuance; and (3) The source or modification would meet the requirements of 20.2.74.302 NMAC and 20.2.74.303 NMAC based on the emission rate that the system of innovative control technology would be required to meet on the date specified by the Department; and (4) During the interim period of achieving the permitted emission level, the source or modification



# . would not: (a) Cause or contribute to a violation of an applicable national ambient air quality standard; nor 

### (b) Impact any Class 

### I Federal area; nor 

### (c) Impact any area where an applicable increment is known to be violated; and (5) All other applicable requirements including those for public participation have been met. E. The Department shall withdraw any approval to employ a system of innovative control technology if: (1) The proposed system fails by the specified date to achieve the required continuous emissions reduction rate; or (2) The proposed system fails before the specified date so as to contribute to an unreasonable risk to public health, welfare, or safety; or (3) The Department decides at any time that the proposed system is unlikely to achieve the required level of control or to protect the public health, welfare, or safety. F. If a source or modification fails to meet the required level of continuous emission reduction within the specified time period or the approval is withdrawn in accordance with subsection 

### E of 20.2.74.302 NMAC, the Department may allow the source or modification up to an additional three (3) years to meet the requirement for the application of Best Available Control Technology. This shall be accomplished through use of a demonstrated system of control. G. If the owner or operator of a major stationary source or major modification previously issued a permit under this Part applies for an extension (as provided for under subsection C of 20.2.74.300 NMAC), and the new proposed date of construction is greater than eighteen (1 8) months from the date the permit would become invalid, the determination of Best Available Control Technology shall be reviewed and modified as appropriate before such an extension is granted. At such time, the owner or operator of the applicable stationary source may be required to demonstrate the adequacy of any previous determination of Best Available Control Technology for the

source. 

### H. With respect to PMIo, for the case where PMlo emissions cannot be quantified, the Best Available Control Technology limitation may be defined in terms of particulate matter emissions. [07/20/95; 20.2.74.302 NMAC 

### - Rn, 20 NMAC 2.74.302, 1013 1/02]

20.2.74.303 AMBIENT IMPACT REQUIREMENTS: A. The requirements of this section shall apply to each pollutant emitted by a new major stationary

source or major modification in amounts equal to or greater than those in Table 2 of this Part (20.2.74.502 NMAC). For particulate matter, the source will only be required to perform ambient impact analysis for PMlo when the source has the potential to emit significant amounts of PMlo (Table 2,20.2.74.502 NMAC).

Proposed Revisions to 20.2.74 NMAC 13

### B. The allowable emission increases from the proposed source or modification, including secondary emissions, in conjunction with all other applicable emissions increases or reductions, including secondary emissions, shall not cause or contribute to air pollution in violation of: 

### (1) Any National Ambient Air Quality Standard in any location; or (2) Any applicable maximum allowable increase as shown in Table 4 of this Part (20.2.74.504 NMAC) over the baseline concentrations in any area. (3) The owner or operator of the proposed major stationary source or major modification shall demonstrate that neither paragraph (1) nor paragraph (2) of 20.2.74.303 NMAC will occur. [07/20/95; 20.2.74.303 NMAC 

### - 

### Rn, 20 NMAC 2.74.303, 10/31/02]

20.2.74.304 ADDITIONAL IMPACT REQUIREMENTS: A. The owner or operator of the proposed major stationary source or major modification shall provide

an analysis of the impairment to visibility, soils, and vegetation that would occur as a result of the source or modification and general commercial, residential, industrial, and other growth associated with the source or modification. The owner or operator need not provide an analysis of the impact on vegetation having no significant commercial or recreational value. The analysis can use data or information available from the Department. B. The owner or operator shall also provide an analysis of the air quality impact projected for the area

as a result of general commercial, residential, industrial, and other growth associated with the source or modification. [07/20/95; 20.2.74.304 NMAC 

### - 

### Rn, 20 NMAC 2.74.304, 1013 1/02]

20.2.74.305 AMBIENT AIR QUALITY MODELING: All estimates of ambient concentrations required by this Part shall be based on applicable air quality models, data bases, and other requirements as specified in EPA's Guideline on Air Quality Models (EPA-45012-78-027R, July, 1986), its revisions, or any superseding EPA document, and approved by the Department. Where an air quality impact model specified in the Guideline on Air Quality Models is inappropriate, the model may be modified or another model substituted. Any substitution or modification of a model must be approved by the Department. Notification shall be given by the Department of such a substitution or modification and the opportunity for public comment provided for in fulfilling the public notice requirements in subsection B of 20.2.74.400 NMAC. The Department will seek EPA approval of such substitutions or modifications. [07/20/95; 20.2.74.305 NMAC 

### - Rn, 20 NMAC 2.74.305, 10/31102]

20.2.74.306 MONITORING REQUIREMENTS: A. Any application for a permit under this Part shall contain an analysis of ambient air quality. Air quality data can be that measured by the applicant or that available from a government agency in the area affected by the major stationary source or major modification. The analysis shall contain the following: 

### (1) For a major stationary source, each pollutant for which the potential to emit is equal to or greater than the significant emission rates as listed in Table 2 of this Part (20.2.74.502 NMAC); or (2) For a major modification, each pollutant that would result in a significant net emission increase. 

### B. If no National Ambient Air Quality Standard (NAAQS) for a pollutant exists, and there is an acceptable method for monitoring that pollutant, the analysis shall contain such air quality monitoring data as the Department determines is necessary to assess ambient air quality for that pollutant. C. Continuous air quality monitoring data shall be required for all pollutants for which a National Ambient Air Quality Standard exists. Such data shall be submitted to the Department for at least the one 

### (I) year period prior to receipt of the permit application. The Department has the discretion to: (1) Determine that a complete and adequate analysis can be accomplished with monitoring data gathered over a period shorter than one year but not less than four months; or (2) Determine that existing air quality monitoring data is representative of air quality in the affected area and accept such data in lieu of additional monitoring by the applicant. D. Ozone monitoring shall be performed if monitoring data is required for volatile organic compounds. Post construction ozone monitoring data may be submitted in lieu of providing preconstruction data as required under subsection C of 20.2.74.306 NMAC if the owner or operator of the proposed major source or major modification satisfies all the provisions of 40 CFR Part 5 1, Appendix S, Section IV. E. The Department may require monitoring of visibility in any Class 

### I Federal area where the Department determines that an adverse impact on visibility may occur due primarily to the operations of the

Proposed Revisions to 20.2.74 NMACproposed new source or modification. Such monitoring shall be conducted following procedures approved by the ~epartment and subject to the following: (1) Visibility monitoring methods specified by the Department shall be reasonably available and not require any research and development; and (2) The cost of visibility monitoring required by the Department shall not exceed fifty percent (50%) of the cost of ambient monitoring required by this Part. If ambient monitoring is not required, the cost shall be estimated as if it were required for each pollutant to which this Part applies. (3) Both preconstruction and post construction visibility monitoring may be required. In each case, the duration of such monitoring shall not exceed one (1) year. 

### F. The owner or operator of a major stationary source or major modification shall conduct post construction ambient monitoring as the Department determines is necessary to validate attainment of ambient air aualitv standards and to assure that increments are not exceeded.

, , G. The owner or operator of a major stationary source or major modification shall meet the requirements of 40 CFR 58, Appendix B during the operation of monitoring stations for purposes of satisfying the requirements of this section. 

### H. The Department has the discretion to exempt a stationary source or modification from the requirements of this section with respect to monitoring for a particular pollutant if the emissions of the pollutant from the new source or the net emissions increase of the pollutant fiom the modification would cause, in any area, increases in ambient concentrations less than the levels listed in Table 3 of this Part (20.2.74.503 NMAC). I. The Department shall exempt a stationary source or modification from the requirements of this section with respect to preconstruction monitoring for a particular pollutant if: (1) For ozone, volatile organic compound emissions are less than one hundred (I 00) tons per year; or (2) The air pollutant is not a regulated pollutant; or (3) The existing ambient concentrations of the pollutant in the area affected by the source or modification are less than the concentrations listed in Table 3 of this Part (20.2.74.503 NMAC). [07/20/95; 20.2.74.306 NMAC 

## - Rn, 20 NMAC 2.74.306, 10/31/02]

20.2.74.307 TEMPORARY SOURCE EXEMPTIONS: The requirements of 20.2.74.304 NMAC and 20.2.74.306 NMAC shall not apply to a temporary source subject to this Part for a given pollutant if the allowable emissions of such pollutant would not impact any Class I Federal area or any areas where an applicable increment is violated and would be temporary. [07/20/95; 20.2.74.307 NMAC 

### - Rn, 20 NMAC 2.74.307, 10/31/02]

20.2.74.308 to 20.2.74.319 [RESERVED]

20.2.74.320 ACTUALS PLANTWIDE APPLICABILITY LIMITS (PALS) A. Applicability. (1) The department may approve the use of an actuals PAL for any existing major stationary source if the PAL meets the requirements in this section. The term "PAL" shall mean "actuals PAL" throughout this section. (2) Any physical change in or change in the method of operation of a major stationary source that maintains its total source-wide emissions below the PAL level, meets the requirements of this section, and complies with the PAL permit: (a) is not a major modification for the PAL pollutant; (b) does not have to be approved through the requirements of this part; and (c) is not subject to the provisions in Subsection D of 20.2.74.300 NMAC (restrictions on relaxing enforceable emission limitations that the major stationary source used to avoid applicability of the major

new source review program). (3) Except as provided under Subparagraph (c) of Paragraph (1) of this subsection, a major stationary

source shall continue to comply with all applicable federal or state requirements, emission limitations, and work practice requirements that were established prior to the effective date of the PAL. B. Definitions applicable to this section. (1) Actuals PAL for a major stationary source means a PAL based on the baseline actual emissions (as defined in 20.2.74.7 NMAC) of all emissions units (as defined in 20.2.74.7 NMAC) at the source, that emit or have the potential to emit the PAL pollutant. (2) Allowable emissions means "allowable emissions" as defined in 20.2.74.7 NMAC, except as this definition is modified in accordance with the following.

Proposed Revisions to 20.2.74 NMAC(a) The allowable emissions for any emissions unit shall be calculated considering any emission limitations that are enforceable as a practical matter on the emissions unit's potential to emit. (b) An emissions unit's potential to emit shall be determined using the definition in 20.2.74.7 NMAC, except that the words "or enforceable as a practical matter" should be added after "federally enforceable". (3) Small emissions unit means an emissions unit that emits or has the potential to emit the PAL pollutant in an amount less than the significant level for that PAL pollutant, as defined in Subsection AV of 20.2.74.7 NMAC or in the act, whichever is lower. 

### (4) Major emissions unit means: (a) any emissions unit that emits or has the potential to emit 100 tons per year or more of the PAL pollutant in an attainment area; or (b) any emissions unit that emits or has the potential to emit the PAL pollutant in an amount that is equal to or greater than the major source threshold for the PAL pollutant as defined by the act for nonattainment areas. For example, in accordance with the definition of major stationary source in Section 182(c) of the act, an emissions unit would be a major emissions unit for VOC if the emissions unit is located in a serious

ozone nonattainment area and it emits or has the potential to emit 50 or more tons of VOC per year. (5) Plantwide applicability limitation (PAL) means an emission limitation expressed in tons per year, for a pollutant at a major stationary source, that is enforceable as a practical matter and established source-wide in accordance with this section. (6) PAL effective date generally means the date of issuance of the PAL permit. However, the PAL effective date for an increased PAL is the date any emissions unit that is part of the PAL major modification becomes operational and begins to emit the PAL pollutant. 

### (7) PAL effective period means the period beginning with the PAL effective date and ending 10 years later. (8) PAL major modification means, notwithstanding the definitions for major modification and net emissions increase in 20.2.74.7 NMAC, any physical change in or change in the method of operation of the PAL

source that causes it to emit the PAL pollutant at a level equal to or greater than the PAL. (9) PAL permit means the major new source review permit, the minor new source review permit, or the state operating permit under a program that is approved into the plan, or the title V permit issued by the department that establishes a PAL for a major stationary source. (10) PAL pollutant means the pollutant for which a PAL is established at a major stationary source. (11) Significant emissions unit means an emissions unit that emits or has the potential to emit a PAL pollutant in an amount that is equal to or greater than the significant level (as defined in Subsection AV of 20.2.74.7 NMAC or in the act, whichever is lower) for that PAL pollutant, but less than the amount that would qualify the unit as a major emissions unit as defined in Paragraph (4) of this subsection. C. Permit application requirements. As part of a permit application requesting a PAL, the owner or operator of a major stationary source shall submit the following information to the department for approval. (1) A list of all emissions units at the source designated as small, significant or major based on their potential to emit. In addition, the owner or operator of the source shall indicate which, if any, federal or state applicable requirements, emission limitations, or work practices apply to each unit. (2) Calculations of the baseline actual emissions (with supporting documentation). Baseline actual emissions are to include emissions associated not only with operation of the unit, but also emissions associated with startup, shutdown, and malfunction. (3) The calculation procedures that the major stationary source owner or operator proposes to use to convert the monitoring system data to monthly emissions and annual emissions based on a 12-month rolling total for each month as required by Subsection M of this section. 

### D. General requirements for establishing PALS. (1) The department may establish a PAL at a major stationary source, provided that at a minimum, the following requirements are met. (a) The PAL shall impose an annual emission limitation in tons per year, that is enforceable as

a practical matter, for the entire major stationary source. For each month during the PAL effective period after the first 12 months of establishing a PAL, the major stationary source owner or operator shall show that the sum of the monthly emissions from each emissions unit under the PAL for the previous 12 consecutive months is less than the PAL (a 12-month average, rolled monthly). For each month during the first 

### 11 months from the PAL effective date, the major stationary source owner or operator shall show that the sum of the preceding monthly emissions from the PAL effective date for each emissions unit under the PAL is less than the PAL.

Proposed Revisions to 20.2.74 NMAC 16(b) The PAL shall be established in a PAL permit that meets the public participation requirements in Subsection E of this section. (c) The PAL permit shall contain all the requirements of Subsection G of this section. (d) The PAL shall include fugitive emissions, to the extent quantifiable, from all emissions units that emit or have the potential to emit the PAL pollutant at the major stationary source. (e) Each PAL shall regulate emissions of only one pollutant. 

### (f) Each PAL shall have a PAL effective period of 10 years. (g) The owner or operator of the major stationary source with a PAL shall comply with the monitoring, recordkeeping, and reporting requirements provided in Subsections L through 

### N of this section for each emissions unit under the PAL through the PAL effective period. (2) At no time (during or after the PAL effective period) are emissions reductions of a PAL pollutant that occur during the PAL effective period creditable 

### as decreases for purposes of offsets under 40 CFR 5 1.165(a)(3)(ii) unless the level of the PAL is reduced by the amount of such emissions reductions and such reductions would be creditable in the absence of the PAL. E. Public participation requirements for PALs. PALs for existing major stationary sources shall be established, renewed, or increased, through a procedure that is consistent with 40 CFR 5 1.160 and 161. This includes the requirement that the department provide the public with notice of the proposed approval of a PAL permit and at least a 30-day period for submittal of public comment. The department must address all material

comments before taking final action on the permit. F. Setting the 10-year actuals PAL level. (1) Except as provided in Paragraph (2) of this subsection, the actuals PAL level for a major stationary source shall be established as the sum of the baseline actual emissions (as defined in 20.2.74.7 NMAC) of the PAL pollutant for each emissions unit at the source; plus an amount equal to the applicable significant level for the PAL pollutant under Subsection AV of 20.2.74.7 NMAC or under the act, whichever is lower. When establishing the actuals PAL level, for a PAL pollutant, only one consecutive 24-month period must be used to determine the baseline actual emissions for all existing emissions units. However, a different consecutive 24-month period may be used for each different PAL pollutant. Emissions associated with units that were permanently shutdown after this 24-month period must be subtracted from the PAL level. The department shall specify a reduced PAL level(s) (in tons/yr) in the PAL permit to become effective on the future compliance date(s) of any applicable federal or state regulatory requirement(s) that the department is aware of prior to issuance of the PAL permit. For instance, if the source owner or operator will be required to reduce emissions from industrial boilers in half from baseline emissions of 60 ppm NOx to a new rule limit of 30 ppm, then the permit shall contain a future effective PAL level that is equal to the current PAL level reduced by half of the original baseline emissions of such unit(s). (2) For newly constructed units (which do not include modifications to existing units) on which actual construction began after the 24-month period, in lieu of adding the baseline actual emissions as specified in Paragraph (I) of this subsection, the emissions must be added to the PAL level in an amount equal to the potential to emit of the units. G. Contents of the PAL permit. The PAL permit shall contain, at a minimum, the following information. (1) The PAL pollutant and the applicable source-wide emission limitation in tons per year. (2) The PAL permit effective date and the expiration date of the PAL (PAL effective period). (3) Specification in the PAL permit that if a major stationary source owner or operator applies to renew a PAL in accordance with Subsection 

### J of this section before the end of the PAL effective period, then the PAL shall not expire at the end of the PAL effective period. It shall remain in effect until a revised PAL permit is issued by the department. (4) A requirement that emission calculations for compliance purposes include emissions from startups, shutdowns and malfunctions. (5) A requirement that, once the PAL expires, the major stationary source is subject to the reauirements of Subsection I of this section. (6) The calculation procedures that the major stationary source owner or operator shall use to convert the monitoring system data to monthly emissions and annual emissions based on a 12-month rolling total for each month as required by Paragraph (1) of Subsection C of this section. 

### (7) A requirement that the major stationary source owner or operator monitor all emissions units in accordance with the provisions under Subsection 

### M of this section. (8) A requirement to retain the records required under Subsection 

### M of this section on site. Such records may be retained in an electronic format.

Proposed Revisions to 20.2.74 NMAC(9) A requirement to submit the reports required under Subsection 

### N of this section by the required deadlines. (10) Any other requirements that the department deems necessary to implement and enforce the PAL. 

### H. PAL effective period and reopening of the PAL permit. (1) PAL effective period. The PAL effective period shall be 10 years. (2) Reopening of the PAL permit. (a) During the PAL effective period, the department shall reopen the PAL permit to: (i) correct 

### typographical/calculation errors made in setting the PAL or reflect a more accurate determination of emissions used to establish the PAL; (ii) reduce the PAL if the owner or operator of the major stationary source creates creditable emissions reductions for use as offsets under 40 CFR 

### 5 1.165(a)(3)(ii); and (iii) revise the PAL to reflect an increase in the PAL as provided under Subsection 

### K of this section. (b) The department may reopen the PAL permit for the following: (i) to reduce the PAL to reflect newly applicable federal requirements (for example, NSPS) with compliance dates after the PAL effective date; (ii) to reduce the PAL consistent with any other requirement, that is enforceable as a practical matter, and that the department may impose on the major stationary source under the plan; and (iii) to reduce the PAL if the department determines that a reduction is necessary to avoid causing or contributing to a NAAQS or PSD increment violation, or to an adverse impact on an AQRV that has been identified for a federal class 

### I area by a federal land manager and for which information is available to the general public. (c) Except for the permit reopening in Item (i) of Subparagraph (a) of Paragraph (2) of this subsection for the correction of 

### typographical/calculation errors that do not increase the PAL level, all reopenings shall be carried out in accordance with the public participation requirements of Subsection E of this section. I. Expiration of a PAL. Any PAL that is not renewed in accordance with the procedures in Subsection 

### J of this section shall expire at the end of the PAL effective period, and the following requirements shall apply. (1) Each emissions unit (or each group of emissions units) that existed under the PAL shall comply with an allowable emission limitation under a revised permit established according to the following procedures. (a) Within the time frame specified for PAL renewals in Paragraph (2) of Subsection J of this section, the major stationary source shall submit a proposed allowable emission limitation for each emissions unit (or each group of emissions units, if such a distribution is more appropriate as decided by the department) by distributing the PAL allowable emissions for the major stationary source among each of the emissions units that existed under the PAL. If the PAL had not yet been adjusted for an applicable requirement that became effective during the PAL effective period, as required under Paragraph (5) of Subsection 

### J of this section, such distribution shall be made as if the PAL had been adjusted. (b) The department shall decide whether and how the PAL allowable emissions will be distributed and issue a revised permit incorporating allowable limits for each emissions unit, or each group of emissions units, as the department determines is appropriate. (2) Each emissions unit(s) shall comply with the allowable emission limitation on a 12-month rolling basis. The department may approve the use of monitoring systems (source testing, emission factors, etc.) other than CEMS, CERMS, PEMS or CPMS to demonstrate compliance with the allowable emission limitation. (3) Until the department issues the revised permit incorporating allowable limits for each emissions unit, or each group of emissions units, as required under Subparagraph (b) of Paragraph (1) of Subsection 

### I of this section, the source shall continue to comply with a source-wide, multi-unit emissions cap equivalent to the level of the PAL emission limitation. (4) Any physical change or change in the method of operation at the major stationary source will be subject to major new source review requirements if such change meets the definition of major modification in 20.2.74.7 

### NMAC. (5) The major stationary source owner or operator shall continue to comply with any New Mexico or federal applicable requirements (BACT, RACT, NSPS, etc.) that may have applied either during the PAL effective period or prior to the PAL effective period except for those emission limitations that had been established pursuant
to Subsection 

### D of 20.2.74.300 NMAC, but were eliminated by the PAL in accordance with the provisions in Subparagraph (c) of Paragraph (2) of Subsection A of this section. 

### J. Renewal of a PAL.

Proposed Revisions to 20.2.74 NMAC(1) The department shall follow the procedures specified in Subsection 

### E of this section in approving any request to renew a PAL for a major stationary source, and shall provide both the proposed PAL level and a written rationale for the proposed PAL level to the public for review and comment. During such public review, any person may propose a PAL level for the source for consideration by the department. (2) Application deadline. A major stationary source owner or operator shall submit a timely application to the department to request renewal of a PAL. A timely application is one that is submitted at least 6 months prior to, but not earlier than 18 months from, the date of.permit expiration. This deadline for application submittal is to ensure that the permit will not expire before the permit is renewed. If the owner or operator of a major stationary source submits a complete application to renew the PAL within this time period, then the PAL shall continue to be effective until the revised permit with the renewed PAL is issued. (3) Application requirements. The application to renew a PAL permit shall contain the following information. (a) The information required in Subsection C of this section. (b) A proposed PAL level. (c) The sum of the potential to emit of all emissions units under the PAL (with supporting documentation). (d) Any other information the owner or operator wishes the department to consider in determining the appropriate level for renewing the PAL. (4) PAL adjustment. In determining whether and how to adjust the PAL, the department shall consider the options outlined in Subparagraphs (a) and (b) of this paragraph. However, in no case may any such adjustment fail to comply with Subparagraph (c) of this paragraph. (a) If the emissions level calculated in accordance with Subsection 

### F of this section is equal to

or greater than 80 percent of the PAL level, the department may renew the PAL at the same level without considering the factors set forth in Subparagraph (b) of this paragraph. (b) The department may set the PAL at a level that it determines to be more representative of the source's baseline actual emissions, or that it determines to be appropriate considering air quality needs, advances in control technology, anticipated economic growth in the area, desire to reward or encourage the source's voluntary emissions reductions, or other factors as specifically identified by the department in its written rationale. (c) Notwithstanding Subparagraphs (a) and (b) of this paragraph: (i) if the potential to emit of the major stationary source is less than the PAL, the department shall adjust the PAL to a level no greater than the potential to emit of the source; and (ii) the department shall not approve a renewed PAL level higher than the current PAL, unless the major stationary source has complied with the provisions of Subsection 

### K of this section (increasing a PAL). (5) If the compliance date for a state or federal requirement that applies to the PAL source occurs during the PAL effective period, and if the department has not already adjusted for such requirement, the PAL shall be adjusted at the time of PAL permit renewal or title V permit renewal, whichever occurs first. 

### K. Increasing a PAL during the PAL effective period. (1) The department may increase a PAL emission limitation only if the major stationary source complies with the following provisions. (a) The owner or operator of the major stationary source shall submit a complete application to request an increase in the PAL limit for a PAL major modification. Such application shall identify the emissions unit(s) contributing to the increase in emissions so as to cause the major stationary source's emissions to equal or exceed its PAL. 

### (b) As part of this application, the major stationary source owner or operator shall demonstrate that the sum of the baseline actual emissions of the small emissions units, plus the sum of the baseline actual emissions of the significant and major emissions units assuming application of BACT equivalent controls, plus the sum of the allowable emissions of the new or modified emissions unit(s), exceeds the PAL. The level of control that would result from BACT equivalent controls on each significant or major emissions unit shall be determined by conducting a new BACT analysis at the time the application is submitted, unless the emissions unit is currently required to comply with a BACT or LAER requirement that was established within the preceding 10 years. In such a case, the assumed control level for that emissions unit shall be equal to the level of BACT or LAER with which that emissions unit must currently comply. (c) The owner or operator obtains a major new source review permit for all emissions unit(s) identified in Subparagraph (a) of this paragraph, regardless of the magnitude of the emissions increase resulting from them (that is, no significant levels apply). These emissions unit(s) shall comply with any emissions

Proposed Revisions to 20.2.74 NMACrequirements resulting from the major new source review process (for example, BACT), even though they have also become subject to the PAL or continue to be subject to the PAL. (d) The PAL permit shall require that the increased PAL level shall be effective on the day any emissions unit that is part of the PAL major modification becomes operational and begins to emit the PAL pollutant. (2) The department shall calculate the new PAL as the sum of the allowable emissions for each modified or new emissions unit, plus the sum of the baseline actual emissions of the significant and major emissions units (assuming application of BACT equivalent controls 

### as determined in accordance with Subparagraph (b) of Paragraph (1) of this subsection), plus the sum of the baseline actual emissions of the small emissions units. (3) The PAL permit shall be revised to reflect the increased PAL level pursuant to the public notice requirements of Subsection E of this section. L. Monitoring requirements for PALS. 

### (1) General requirements. (a) Each PAL permit must contain enforceable requirements for the monitoring system that accurately determines plantwide emissions of the PAL pollutant in terms of mass per unit of time. Any monitoring system authorized for use in the PAL permit must be based on sound science and meet generally acceptable scientific procedures for data quality and manipulation. Additionally, the information generated by such system
must meet minimum legal requirements for admissibility in a judicial proceeding to enforce the PAL permit. (b) The PAL monitoring system must employ one or more of the four general monitoring approaches meeting the minimum requirements set forth in Paragraph (2) of this subsection and must be approved by the department. (c) Notwithstanding Subparagraph (b) of this paragraph, you may also employ an alternative monitoring approach that meets Subparagraph (a) of this paragraph if approved by the department. (d) Failure to use a monitoring system that meets the requirements of this section renders the PAL invalid. (2) The following are acceptable general monitoring approaches when conducted in accordance with the minimum requirements in Paragraphs (3) through (9) of this subsection: (a) Mass balance calculations for activities using coatings or solvents; (b) CEMS; (c) CPMS or PEMS; and (d) emission factors. (3) Mass balance calculations. An owner or operator using mass balance calculations to monitor PAL pollutant emissions from activities using coating or solvents shall meet the following requirements: (a) provide a demonstrated means of validating the published content of the PAL pollutant that is contained in or created by all materials used in or at the emissions unit; (b) assume that the emissions unit emits all of the PAL pollutant that is contained in or created by any raw material or fuel used in or at the emissions unit, if it cannot otherwise be accounted for in the process; and (c) where the vendor of a material or fuel, which is used in or at the emissions unit, publishes a range of pollutant content from such material, the owner or operator must use the highest value of the range to calculate the PAL pollutant emissions unless the department determines there is site-specific data or a site-specific monitoring program to support another content within the range. (4) CEMS. An owner or operator using CEMS to monitor PAL pollutant emissions shall meet the following requirements: (a) CEMS must comply with applicable performance specifications found in 40 CFR Part 60, Appendix B; and (b) CEMS must sample, analyze, and record data at least every 15 minutes while the emissions unit is operating. (5) CPMS or PEMS. An owner or operator using CPMS or PEMS to monitor PAL pollutant emissions shall meet the following requirements: (a) the CPMS or the PEMS must be based on current site-specific data demonstrating a correlation between the monitored parameter(s) and the PAL pollutant emissions across the range of operation of the emissions unit; and (b) each CPMS or PEMS must sample, analyze, and record data at least every 15 minutes, or at another less frequent interval approved by the department, while the emissions unit is operating. (6) Emission factors. An owner or operator using emission factors to monitor PAL pollutant emissions shall meet the follow.ing requirements:

Proposed Revisions to 20.2.74 NMAC(a) all emission factors shall be adjusted, if appropriate, to account for the degree of uncertainty or limitations in the factors' development; (b) the emissions unit shall operate within the designated range of use for the emission factor, if applicable; and (c) if technically practicable, the owner or operator of a significant emissions unit that relies on

an emission factor to calculate PAL pollutant emissions shall conduct validation testing to determine a site-specific emission factor within 6 months of PAL permit issuance, unless the department determines that testing is not

, required. 

### (7) A source owner or operator must record and report maximum potential emissions without considering enforceable emission limitations or operational restrictions for an emissions unit during any period of time that there is no monitoring data, unless another method for determining emissions during such periods is specified in the PAL pennit. (8) Notwithstanding the requirements in Paragraphs (3) through (7) of this subsection, where an owner or operator of an emissions unit cannot demonstrate a correlation between the monitored parameter(s) and the PAL pollutant emissions rate at all operating points of the emissions unit, the department shall, at the time of permit issuance: (a) establish default value(s) for determining compliance with the PAL based on the highest potential emissions reasonably estimated at such operating point(s); or (b) determine that operation of the emissions unit during operating conditions when there is no correlation between monitored parameter(s) and the PAL pollutant emissions is a violation of the PAL. (9) Revalidation. All data used to establish the PAL pollutant must be revalidated through performance testing or other scientifically valid means approved by the department. Such testing must occur at least

once every 5 years after issuance of the PAL. M. Recordkeeping requirements. 

### (1) The PAL permit shall require an owner or operator to retain a copy of all records necessary to determine compliance with any requirement of this section and of the PAL, including a determination of each emissions unit's 12-month rolling total emissions, for 5 years from the date of such record. (2) The PAL permit shall require an owner or operator to retain a copy of the following records, for the duration of the PAL effective period plus 

### 5 years: (a) a copy of the PAL permit application and any applications for revisions to the PAL; and (b) each annual certification of compliance pursuant to title V and the data relied on in certifying the compliance. 

### N. Reporting and notification requirements. The owner or operator shall submit semi-annual monitoring reports and prompt deviation reports to the department in accordance with the applicable title 

### V operating permit program. The reports shall meet the following requirements. 

### (1) Semi-annual report. The semi-annual report shall be submitted to the department within 30 days of the end of each reporting period. This report shall contain the following information: (a) the identification of owner and operator and the permit number; (b) total annual emissions (tons per year) based on a 12-month rolling total for each month in the reporting period recorded pursuant to Paragraph (1) of Subsection M of this section; (c) all data relied upon, including, but not limited to, any quality assurance or quality control data, in calculating the monthly and annual PAL pollutant emissions; (d) a list of any emissions units modified or added to the major stationary source during the preceding 6-month period; (e) the number, duration, and cause of any deviations or monitoring malfunctions (other than the time associated with zero and span calibration checks), and any corrective action taken; (f) a notification of a shutdown of any monitoring system, whether the shutdown was permanent or temporary, the reason for the shutdown, the anticipated date that the monitoring system will be fully operational or replaced with another monitoring system, and whether the emissions unit monitored by the monitoring system continued to operate, and the calculation of the emissions of the pollutant or the number determined by method included in the permit, as provided by Paragraph (7) of Subsection L of this section; and (g) a signed statement by the responsible official (as defined by the applicable title V operating permit program) certifying the truth, accuracy, and completeness of the information provided in the report. (2) Deviation report. The major stationary source owner or operator shall promptly submit reports of any deviations or exceedance of the PAL requirements, including periods where no monitoring is available. A report submitted pursuant to 40 

### CFR 70.6(a)(3)(iii)(B) shall satisfy this reporting requirement. The deviation reports shall

Proposed Revisions to 20.2.74 NMAC 2 1be submitted within the time limits prescribed by the applicable program implementing 40 CFR 70.6(a)(?)(iii)(B). The reports shall contain the following information: (a) the identification of owner and operator and the permit number; (b) the PAL requirement that experienced the deviation or that was exceeded; (c) emissions resulting from the deviation or the exceedance; and (d) a signed statement by the responsible official (as defined by the applicable title V operating permit program) certifying the truth, accuracy, and completeness of the information provided in the report. (3) Revalidation results. The owner or operator shall submit to the department the results of any

\ revalidation test or method within three months after completion of such test or method. 

### 0. Transition requirements. (1) The department may not issue a PAL that does not comply with the requirements in this section after the administrator has approved regulations incorporating these requirements into a plan. (2) The department may supersede any PAL which was established prior to the date of approval of the plan by the administrator with a PAL that complies with the requirements of this section. C20.2.74.320 NMAC 

### - N, 1/22/06]

20.2.74.321 to 20.2.74.399 [RESERVED]

20.2.74.400 PUBLIC PARTICIPATION AND NOTIFICATION: A. The Department shall, within thirty (30) days after receipt of an application, review such application and determine whether it is administratively complete or there is any deficiency in the application or information submitted. To be deemed administratively complete, the application must meet the requirements of 20.2.74.301 NMAC in addition to the requirements of 20.2.72 NMAC. If the application is deemed: (1) administratively complete, a letter to that effect shall be sent by certified mail to the applicant. (2) administratively incomplete, a letter shall be sent by certified mail to the applicant stating what additional information or points of clarification are necessary to deem the application administratively complete. Upon receipt of the additional information or clarification, the Department shall promptly review such information and determine whether the application is administratively complete. (3) administratively complete but no permit is required, a letter shall be sent by certified mail to the applicant informing the applicant of the determination. 

### B. For purposes of determining minor source baseline date pursuant to 40 CFR 

### 5 1 : (1) An application is complete when it contains all the information necessary for processing the application. Designating an application complete for purposes of 40 CFR 5 I does not preclude the Department from requesting or accepting any additional information; and (2) In the event that additional information is submitted to remedy any deficiency in the application or information submitted, the date of receipt of the application shall be the date on which the Department received all required information. C. The Department shall: (1) Make a preliminary determination whether construction should be approved, approved with conditions, or disapproved. (2) Make available at the Department district and local office nearest to the proposed source a copy of all materials the applicant submitted, a copy of the preliminary determination, and a copy or summary of other materials, if any, considered in making the preliminary determination. (3) Notify the public by advertisement in a newspaper of general circulation in the area in which the proposed source would be constructed: (a) Of the application, (b) The preliminary determination, (c) The degree of increment consumption that is expected from the source or modification, and (d) Of the opportunity for comment at a public hearing as well as written public comment. The public comment period shall be for thirty (30) days from the date of such advertisement. (4) Send a copy of the notice of public comment to: (a) The applicant, 

### (b) The Administrator, and (c) Officials and agencies having jurisdiction over the location where the proposed construction would occur as follows: (i) Any other state or local air pollution control agencies;

Proposed Revisions to 20.2.74 NMAC 22(ii) The chief executives of the city and county where the source would be located; (iii) Any comprehensive regional land use planning agency; and (iv) Any state, Federal Land Manager, or Indian governing body whose lands may be affected by emissions from the source or modification. (5) Provide opportunity for a public hearing for interested persons to appear and submit written or oral comments on the air quality impact of the source and other appropriate considerations. (6) Consider all written comments submitted within a time specified in the notice of public comment and all comments received at any public hearing(s) in making a final decision on the approvability of the application. The Department shall make all comments available for public inspection in the same locations where the Department made available preconstruction information relating to the source. (7) Within one hundred eighty (180) days after an application is deemed administratively complete, unless the Secretary, as specified in 20.2.72.207 NMAC, grants an extension not to exceed ninety (90) days for good

cause: (a) make a final determination of whether construction should be approved, approved with conditions, or disapproved; and (b) notify the applicant in writing of the final determination and make such notification available for public inspection at the same location where the Department made available preconstruction information and public comments relating to the source. [07/20/95; 01/01/00; 20.2.74.400 NMAC 

### - Rn, 20 NMAC 2.74.400, 1013 1/02]

20.2.74.401 STACK HEIGHT CREDIT: The Department shall review all applications in accordance with the provisions of 20.2.80 NMAC (Stack Heights) (formerly Air Quality Control Regulation 710 

## -- Stack Height Requirements). [07/20/95; 20.2.74.401 NMAC - Rn, 20 NMAC 2.74.401, 1013 1/02]

20.2.74.402 EXCLUSIONS FROM INCREMENT CONSUMPTION: Following a public hearing, the Secretary may exclude the following concentrations in determining compliance with a maximum allowable increase: A. Concentrations due to the increase in emissions from stationary sources, over the emissions from such sources before the effective date of an order under sections 2(a) and (b) of the Energy Supply and Environmental Coordination Act of 1974 (or any superseding legislation). Sources must have converted from the

use of petroleum products, natural gas, or both by reason of such order. This exclusion shall not apply more than five 

### (5) years after the effective date of such an order; or B. Concentrations due to the increase in emissions from sources, over the emissions from such

sources before the effective date of a plan in effect pursuant to the Federal Power Act. Sources must have converted from using natural gas by reason of a natural gas curtailment plan. This exclusion shall not apply more than five (5)
years after the effective date of such a plan; or C. Concentrations of particulate matter due to the increase in emissions from construction or other temporary emission-related activities of new or modified sources; or D. The increase in concentrations due to new sources outside the United States over the concentrations attributed to existing sources which are included in the baseline concentrations. [07/20/95; 20.2.74.402 NMAC 

### - Rn, 20 NMAC 2.74.402, 1013 1/02]

20.2.74.403 ADDITIONAL REQUIREMENTS FOR SOURCES IMPACTING CLASS I FEDERAL AREAS: A. The Department shall transmit to the Administrator and the Federal Land Manager a copy of each permit application relating to a major stationary source or major modification proposing to locate within one hundred (1 00) kilometers of any Class 

### I Federal area. The complete permit application shall be transmitted within thirty (30) days of receipt and sixty (60) days prior to any public hearing on the application. The Department shall include all relevant information in the permit application. Relevant information shall include an analysis of the proposed source's anticipated impacts on visibility in the Class I Federal area. The Department shall consult with all affected Federal Land Managers as to the completeness of the permit application and shall consider any analysis performed by the Federal Land Manager concerning the impact of the proposed major stationary source or major modification on air quality related values. This consideration shall include visibility, if such analysis is received within thirty (30) days after the Federal Land Manager receives a copy of the complete application. Additionally, the Department shall notify any affected Federal Land Manager within thirty days (30) from the date the Department receives a request for a pre-application meeting from a proposed source subject to this Part. Notice shall be

Proposed Revisions to 20.2.74 NMAC 23provided to the Administrator and Federal Land Manager of every action related to the consideration of such permit. The department shall also provide the Federal Land Manager and the Administrator with a copy of the preliminary determination required under 20.2.74.400 NMAC and shall make available to them any materials used in making that determination. In any case where the Department disagrees with the Federal Land Manager's analysis of source impact on air quality related values, the Department shall, either explain its decision or give notice to the Federal Land Manager as to where the explanation can be obtained. In the case where the Department disagrees with the Federal Land Managers' analysis, the Department will also explain its decision or give notice to the public by advertisement in a newspaper of general circulation in the area in which the proposed source would be constructed,

as to where the decision can be obtained. B. The Department shall transmit to air quality control agencies of neighboring states and Indian governing bodies a copy of each permit application having the potential to affect Class I Federal areas or increment consumption in areas under their jurisdiction. The Department shall also provide the affected air quality control agencies and Indian governing bodies with a copy of the preliminary determination required under 20.2.74.400 NMAC and shall make available to them any materials used in making that determination. The Department shall include a provision for a sixty (60) day comment period for the Federal Land Managers before any public hearing on

a permit application is held. C. Federal Land Managers may demonstrate to the Department that emissions from a proposed

source or modification would have an adverse impact on air quality related values, including visibility, of any Class 

### I Federal lands under their jurisdiction. This may be done even though the change in air quality resulting from emissions from the proposed source or modification would not cause or contribute to concentrations which would exceed the maximum allowable increases for a Class I Federal area. If the Department concurs with this demonstration, then the source shall not be issued a permit. D. Class I Waivers: The owner or operator of a proposed source or modification may demonstrate to the Federal Land Manager that the emissions from a proposed source or modification would have no adverse impact on air quality related values, including visibility, of Class I Federal lands under his or her jurisdiction. This may be done even though the change in air quality resulting from emissions from such source or modification would cause

or contribute to concentrations which would exceed the maximum allowable increases for a Class 

### I Federal area. If the Federal Land Manager concurs with such demonstration and so certifies to the Department, the Department may grant a waiver from such maximum allowable increases. Emission limitations must be included in the permit as necessary to assure that emissions of sulfur dioxide, particulate matter, and nitrogen oxides would not exceed the maximum allowable increases over minor source baseline concentrations shown in Table 5 of this Part (20.2.74.505 NMAC). 

### E. For the case where the Federal Land Manager does not perform an impact analysis with respect to visibility impairment in a Class 

### I Federal area, the Department may perform such an analysis. The Department shall not issue the source a permit if the Department determines that an adverse impact on visibility would occur. The adverse impact must be due, primarily, to the operation of the proposed source or modification. F. Sulfur Dioxide Waiver by Governor: The owner or operator of a proposed major stationary source or major modification, which cannot be approved under subsection D of 20.2.74.403 NMAC, may demonstrate to the Governor that the source cannot be constructed by reason of an exceedance of a maximum allowable increase for a Class 

### I Federal area for sulfur dioxide for a period of twenty-four (24) hours or less. The owner or operator may also demonstrate that a waiver from this requirement would not adversely affect the air quality related values of the Class I Federal area. The Governor, after consideration of the Federal Land Manager's recommendation and subject to his concurrence, may, after notice and public hearing, grant a waiver from such maximum allowable increase. If the waiver is granted, the Department shall issue a permit to the owner or operator of the source or modification. Any owner or operator of a source or modification who obtains a permit under this section shall comply with sulfur dioxide emissions limitations. These limitations do not allow increases of ambient concentrations, above the baseline concentration, to exceed the levels found in Table 6 of this Part (20.2.74.506 NMAC) for periods of twentyfour (24) hours or less for more than eighteen (18) days, not necessarily consecutive, in any annual period. 

### G. Sulfur Dioxide Waiver by Govemor with the President's Concurrence. In any case where the Governor recommends a waiver in which the Federal Land Manager does not concur, the recommendations of the Governor and the Federal Land Manager shall be transmitted to the President through the office of the Govemor. If the President so directs, the Department shall issue the permit. Any source or modification that obtains a permit under this section shall comply with sulfur dioxide emissions limitations. These limitations do not allow increases in ambient concentrations, above the baseline concentration, to exceed the levels found in Table 6 of this Part (20.2.74.506 NMAC) for periods of twenty-four (24) hours or less for more than eighteen (1 8) days, not necessarily consecutive, in any annual period.

Proposed Revisions to 20.2.74 NMAC 24[07/20/95; 20.2.74.403 NMAC 

### - Rn, 20 NMAC 2.74.403, 1013 1/02]

20.2.74.404 to 20.2.74.500 [RESERVED]

20.2.74.501 TABLE 1 

### - PSD SOURCE CATEGORIES. A. Carbon black plants (furnace process) 

### B. Charcoal production plants C. Chemical process plants D. Coal cleaning plants (with thermal dryers) E. Coke oven batteries 

### F. Fossil fuel boilers (or combinations thereof) totaling more than 250 million BTUhr heat input 

### G. Fossil fuel-fired steam electric plants of more than 250 million BTU/hr heat input H. Fuel conversion plants 

### I. Glass fiber processing plants J. Hydrofluoric acid plants 

### K. Iron and steel mills 

### L. Krafi pulp mills M. Lime plants N. Municipal incinerators capable of charging more than 50 tons of refuse per day 0. Nitric acid plants 

### P. Petroleum refineries Q. Petroleum storage and transfer units with a total storage capacity exceeding 300,000 barrels R. Phosphate rock processing plants S. Portland cement plants T. Primary aluminum ore reduction plants U. Primary copper smelters 

### V. Primary lead smelters 

### W. Primary zinc smelters X. Secondary metal production plants 

### Y. Sintering plants Z. Sulfur recovery plants AA. Sulfuric acid plants AB. Taconite ore processing plants [07/20/95; 20.2.74.501 NMAC - Rn, 20 NMAC 2.74 Table 1, 1013 1/02; A, 1/22/06]

20.2.74.502 TABLE 2 

## - SIGNIFICANT EMISSION RATES:

Proposed Revisions to 20.2.74 NMAC 25

POLLUTANT Carbon monoxide Fluorides Lead Municipal waste combustor Acid gases (measured as sulfur dioxide and hydrogen chloride) Metals (measured as particulate matter Organics (measured as total tetra- through octa-chlorinated dibenzo-p-dioxins and dibenzofurans) Nitrogen oxides Ozone (as VGC, Volatile Organic Compounds or nitrogen oxides) Particulate Matter Particulate matter emissions PM- I0 emissions Sulhr compounds Hydrogen sulfide (H2S) Reduced sulfur compounds (incl. H2S) Sulfur dioxide EMISSION RATE (TONSNR) 100 3 0.6

40 (36 megagramslyear) 15 (14 megagramslyear) 0.0000035 (0.0000032 megagramslyr)

40
40 @Q€)

25 

### 15

I0 10 401 2 [07/20/95; 20.2.74.502 NMAC 

### - Rn, 20 NMAC 2.74 Table 2, 1013 1/02; A, 1/22/06] Sulfuric acid mist Total reduced sulfur (incl. H2S) Any other pollutant regulated under the act that is not listed in this table Each regulated pollutant 7 10 Any emission rate

Emission rate or net emissions increase associated with a major stationary source

or major modification that causes an air

quality impact of one microgram per cubic meter or greater (24-hr average) in any class I federal area located within 10 krn of the source.

3 4 20.2.74.503 TABLE 3 

### - SIGNIFICANT MONITORING CONCENTRATIONS. 5

POLLUTANT

Carbon monoxide Fluorides Lead Nitrogen dioxide Ozone

r a, ubula~b ~uarrbl (1 ~n- A v, Sulfur compounds Hydrogen sulfide (H2S) Reduced sulfur compounds (incl. H2S) Sulhr dioxide Sulfuric acid mist

acceptable techniques are available. b -No de minimis air quality level ,is provided for ozone. However, any net increase of 100 tons per year or Total reduced sulfur (incl. H2S)

more of volatile organic compounds or nitropen oxides subject to PSD would be required to perform an ambient impact analysis, including the gathering of ambient air quality data. AIR QUALITY CONCENTRATION micrograms per cubic meter 575 0.25 0.1 14 b

I u

0.20

10 13

a

6 7 [07/20/95; 20.2.74.503 NMAC 

### - Rn, 20 NMAC 2.74 Table 3, 10/31/02; A, 1/22/06] 

### 8 9 20.2.74.504 TABLE 4 

## - ALLOWABLE PSD INCREMENTS: 10 AVERAGING TIME

8 hours 24 hours 3 months Annual

1-7 IIUUI~

l hour 1 hour 24 hours

a 

### - No acceptable monitoring techniques available at this time. Therefore, monitoring is not required until 10 1 hour

Nitrogen Dioxide

a 

## - Not to be exceeded more than once a year.

26 annual arithmetic mean Particulate Matter PMIo, annual arithmetic mean PMlo, 24-hour maximum Sulfur Dioxide annual arithmetic mean 24-hour maximum :-hour maximum

Proposed Revisions to 20.2.74 NMAC Micrograms per cubic meter (pg/m')

2.5

4 8"

2 5" 25a Class 111 Class I Class I1

25

17 30"

20 91a 512" 50

34 60"

40 182" 700a1 [07/20/95; 20.2.74.504 NMAC 

### - Rn, 20 NMAC 2.74 Table 4, 10/31/02] 2 3 20.2.74.505 TABLE 5 

## - MAXIMUM ALLOWABLE INCREASES FOR CLASS I WAIVERS: 4

[07/20/95; 20.2.74.505 NMAC 

### - Rn, 20 NMAC 2.74 Table 5, 1013 1/02] Nitrogen Dioxide annual arithmetic mean Particulate Matter PMlo, annual arithmetic mean PMlo, 24-hour maximum Sulhr Dioxide annual arithmetic mean 24-hour maximum 3-hour maximum

20.2.74.506 TABLE 6 

## - MAXIMUM ALLOWABLE INCREASE FOR SULFUR DIOXIDE WAIVER BY GOVERNOR: Micrograms per cubic meter (@m3)

25

17 30

20 9 1 325

Micrograms per cubic meter (pg/m3) Terrain Areas Period of Exposure Low High 24-hr. maximum 36 62 3-hr. maximum 130 22 1

[07/20/95; 20.2.74.506 NMAC 

### - Rn, 20 NMAC 2.74 Table 6, 1013 1/02]

HISTORY OF 20.2.74 NMAC: Pre NMAC History: The material in this part was derived from that previously filed with the commission of public records 

### - state records center and archives. EIBIAQCR 707, Air Quality Control Regulation 707 

### - Permits, Prevention Of Significant Deterioration (PSD), 02/14/84; EIBIAQCR 707, Air Quality Control Regulation 707 

### - Permits, Prevention Of Significant Deterioration (PSD), 0711 5/86; EIBIAQCR 707, Air Quality Control Regulation 707 - Permits, Prevention Of Significant Deterioration (PSD), 08/01/88; EIBJAQCR 707, Air Quality Control Regulation 707 

### - Permits, Prevention Of Significant Deterioration (PSD), 05/29/90.

History of Repealed Material: [RESERVED]

Other History: EIBIAQCR 707, Air Quality Control Regulation 707 

### - Permits, Prevention Of Significant Deterioration (PSD), filed 05/29/90 was renumbered into first version of the New Mexico Administrative Code as 20 NMAC 2.74, Permits 

### -- Prevention Of Significant Deterioration (PSD), filed 06/20/95. 20 

### NMAC 2.74, Permits 

### -- Prevention Of Significant Deterioration (PSD), filed 06/20/95 was renumbered, reformatted and replaced by 20.2.74 NMAC, Permits 

### -- Prevention Of Significant Deterioration (PSD), effective 1013 1/02.

Proposed Revisions to 20.2.74 NMACTITLE 20 ENVIRONMENTAL PROTECTION CHAPTER 2 AIR QUALITY (STATEWIDE) PART 79 PERMITS 

### - NONATTAINMENT AREAS 

## EXHIBIT 

# 1-

20.2.79.1 ISSUING AGENCY: Environmental Improvement Board. [I 1130195; 20.2.79.1 NMAC 

### - 

### Rn,20 NMAC 2.79.100, 10/31/02]

20.2.79.2 SCOPE: All persons who intend to construct or modify a source, except as otherwise provided by this Part. [I 1130195; 20.2.79.2 NMAC 

### - 

### Rn, 20 NMAC 2.79.101, 10/31/02]

20.2.79.3 STATUTORY AUTHORITY: Environmental Improvement Act, NMSA 1978, section 74- 1

### - 8(A)(4), and Air Quality Control Act, NMSA 1978, sections 74-2-1 et seq., including specifically, sections 74-2- 5(C)(1) and 74-2-7(A)(I), 

### (B), (C) and 

### (D). [I 1130195; 20.2.79.3 NMAC 

### - 

### Rn, 20 NMAC 2.79.102, 1013 1/02]

20.2.79.4 DURATION: Permanent. [I 1130195; 20.2.79.4 NMAC 

### - Rn, 20 NMAC 2.79.103, 1013 1/02]

20.2.79.5 EFFECTIVE DATE: November 30, 1995 except where a later date is cited at the end of a section or paragraph. [I 1130195; A, 10101197; 20.2.79.5 NMAC 

### - Rn, 20 NMAC 2.79.104, 1013 1/02] [The latest effective date of any section in this Part is 1/22/06.]

20.2.79.6 OBJECTIVE: The objective of this Part is to establish the requirements for obtaining a nonattainment area permit. [I 1130195; 20.2.79.6 NMAC 

### - Rn, 20 NMAC 2.79.105, 1013 1/02]

20.2.79.7 DEFINITIONS. In addition to the terms defined in 20.2.2 NMAC (Definitions), as used in this part, the following terms apply. A. "Actual emissions" means the actual rate of emissions of a regulated new source review pollutant from an emissions unit, as determined in accordance with the following, except that this definition shall not apply for calculating whether a significant emissions increase has occurred, or for establishing a plantwide applicability limit under 20.2.79.120 NMAC. Instead, Subsections 

### E and A1 of this section shall apply for those purposes. (1) In general, actual emissions as of a particular date shall equal the average rate, in tons per year, at which the unit actually emitted the pollutant during a consecutive 24-month period which precedes the particular date and which is representative of normal source operation. The department shall allow the use of a different time period upon a determination that it is more representative of normal source operation. Actual emissions shall be calculated using the unit's actual operating hours, production rates, and types of materials processed, stored, or combusted during the selected time period. (2) The department may presume that source-specific allowable emissions for the unit are equivalent

to the actual emissions of the unit. (3) For any emissions unit that has not begun normal operations on the particular date, actual emissions shall equal the potential to emit of the unit on that date. 

### B. "Administrator" means the administrator of the U.S. environmental protection agency (EPA) or

an authorized representative. C. "Adverse impact on visibility" means visibility impairment which interferes with the management, protection, preservation, or enjoyment of the visitor's visual experience oT the mandatory federal class I area. This determination must be made on a case-by-case basis taking into account the geographic extent, intensity, duration, frequency, and time of the visibility impairments and how these factors correlate with: 1) times of visitor use of the mandatory federal class I area; and 2) the frequency and timing of natural conditions that reduce visibility. This term does not include effects on integral vistas as defined in 40 CFR 51.301 Definitions. D. "Allowable emissions" means the emissions rate of a stationary source calculated using the maximum rated capacity of the source (unless the source is subject to federally enforceable limits which restrict the operating rate, or hours of operation, or both) and the most stringent of the following: (1) the applicable standard set forth in 40 CFR Part 60 or 6 

### 1 ;

Proposed Revisions to 20.2.79 NMAC

### (2) any applicable state implementation plan emissions limitation including those with a future compliance date; or (3) the emissions rate specified as a federally enforceable permit condition, including those with a future compliance date. 

### E. "Baseline actual emissions" means the rate of emissions, in tons per year, of a regulated new source review pollutant, as determined in accordance with the following. (1) For any existing electric utility steam generating unit, baseline actual emissions means the
average rate, in tons per year, at which the unit actually emitted the pollutant during any consecutive 24-month period selected by the owner or operator within the 5-year period immediately preceding when the owner or operator begins actual construction of the project. The department shall allow the use of a different time period upon a determination that it is more representative of normal source operation. (a) The average rate shall include fugitive emissions to the extent quantifiable, and emissions associated with startups, shutdowns, and malfunctions. (b) The average rate shall be adjusted downward to exclude any noncompliant emissions that occurred while the source was operating above any emission limitation that was legally enforceable during the consecutive 24-month period. 

### (c) For a regulated new source review pollutant, when a project involves multiple emissions units, only one consecutive 24-month period must be used to determine the baseline actual emissions for the emissions units being changed. A different consecutive 24-month period can be used for each regulated new source review pollutant. 

### (d) The average rate shall not be based on any consecutive 24-month period for which there is inadequate information for determining annual emissions, in tons per year, and for adjusting this amount if required by Subparagraph (b) of Paragraph (1) of this subsection. (2) For an existing emissions unit (other than an electric utility steam generating unit), baseline actual emissions means the average rate, in tons per year, at which the emissions unit actually emitted the pollutant during
any consecutive 24-month period selected by the owner or operator within the 10-year period immediately preceding either the date the owner or operator begins actual construction of the project, or the date a complete permit application is received by the department for a permit required either under this section or under a plan approved by the administrator, whichever is earlier, except that the 10-year period shall not include any period earlier than November 15, 1990. (a) The average rate shall include fugitive emissions to the extent quantifiable, and emissions associated with startups, shutdowns, and malfunctions. (b) The average rate shall be adjusted downward to exclude any noncompliant emissions that occurred while the source was operating above an emission limitation that was legally enforceable during the consecutive 24-month period. (c) The average rate shall be adjusted downward to exclude any emissions that would have exceeded an emission limitation with which the major stationary source must currently comply, had such major stationary source been required to comply with such limitations during the consecutive 24-month period. However, if an emission limitation is part of a maximum achievable control technology standard that the administrator proposed or promulgated under 40 CFR Part 63, the baseline actual emissions need only be adjusted if the state has taken credit for such emissions reductions in an attainment demonstration or maintenance plan consistent with the requirements of Subsection 

### D of 20.2.79.1 15 NMAC. (d) For a regulated new source review pollutant, when a project involves multiple emissions units, only one consecutive 24-month period must be used to determine the baseline actual emissions for the emissions units being changed. 

### A different consecutive 24-month period can be used for each regulated new source review pollutant. (e) The average rate shall not be based on any consecutive 24-month period for which there is inadequate information for determining annual emissions, in tons per year, and for adjusting this amount if required by Subparagraphs (b) and (c) of Paragraph (2) of this subsection. (3) For a new emissions unit, the baseline actual emissions for purposes of determining the emissions increase that will result from the initial construction and operation of such unit shall equal zero; and thereafter, for all other purposes, shall equal the unit's potential to emit. (4) For a plantwide applicability limit for a major stationary source, the baseline actual emissions shall be calculated for existing electric utility steam generating units in accordance with the procedures contained in Paragraph (1) of this subsection, for other existing emissions units in accordance with the procedures contained in

Proposed Revisions to 20.2.79 NMACParagraph (2) of this subsection, and for a new emissions unit in accordance with the procedures contained in Paragraph (3) of this subsection. F. "Begin actual construction" means in general, initiation of physical on-site construction activities on an emissions unit which are of a permanent nature. Such activities include, but are not limited to, installation of building support and foundations, laying of underground pipework, and construction of permanent storage structures. With respect to a change in method of operating this term refers to those on-site activities other than preparatory activities which mark the initiation of the change. G. "Best available control technology (BACT) means an emissions limitation (including a visible emissions standard) based on the maximum degree of reduction for each regulated new source review pollutant which would be emitted from any proposed major stationary source or major modification which the department, on

a case-by-case basis, taking into account energy, environmental, and economic impacts and other costs, determines is achievable for such source or modification through application of production processes or available methods, systems, and techniques, including fuel cleaning, clean fuels, or treatment or innovative he1 combustion techniques for control of such pollutant. In no event shall application of best available control technology result in emissions of any pollutant which would exceed the emissions allowed by any applicable standard under 40 CFR Part 60 or 61. If the department determines that technological or economic limitations on the application of measurement methodology to a particular emissions unit would make the imposition of an emissions standard infeasible, a design, equipment, work practice, operational standard, or combination thereof, may be prescribed instead to satisfy the requirement for the application of BACT. Such standard shall, to the degree possible, set forth the emissions reduction achievable by implementation of such design, equipment, work practice or operation, and shall provide for compliance by means which achieve equivalent results. 

### H. "Building, structure, facility, or installation" means all of the pollutant-emitting activities which belong to the same industrial grouping, are located on one or more contiguous or adjacent properties, and are under the control of the same person (or persons under common control). Pollutant-emitting activities shall be considered as part of the same industrial grouping if they belong to the same "major group" (i.e., which have the

same two-digit code) as described in the standard industrial classification manual, 1972, as amended by the 1977 supplement (US. government printing office stock numbers 4101-0066 and 003-005-00 176-0, respectively). 

### I. "Commence" as applied to construction of a major stationary source or major modification means that the owner or operator has all necessary preconstruction approvals or permits and either has: (1) begun, or caused to begin, a continuous program of actual on-site construction of the source, to 

### be completed within a reasonable time; or (2) entered into binding agreements or contractual obligations, which cannot be cancelled or modified without substantial loss to the owner or operator, to undertake a program of actual construction of the source to be completed within a reasonable time. 

### J. "Construction" means any physical change or change in the method of operation (including fabrication, erection, installation, demolition, or modification of an emissions unit) which would result in a change in actual emissions. 

### K. "Continuous emissions monitoring system" (CEMS) means all of the equipment that may be required to meet the data acquisition and availability requirements of this section, to sample, condition (if applicable), analyze, and provide a record of emissions on a continuous basis. 

### L. "Continuous emissions rate monitoring system" (CERMS) means the total equipment required for the determination and recording of the pollutant mass emissions rate (in terms of mass per unit of time). 

### M. "Continuous parameter monitoring system" (CPMS) means all of the equipment necessary to

meet the data acquisition and availability requirements of this section, to monitor process and control device operational parameters (for example, control device secondary voltages and electric currents) and other information (for example, gas flow rate, oxygen or carbon dioxide concentrations), and to record average operational parameter value(s) on a continuous basis. 

### N. "Electric utility steam generating unit" means any steam electric generating unit that is constructed for the purpose of supplying more than one-third of its potential electric output capacity and more than 25 megawatts electrical output to any utility power distribution system for sale. Any steam supplied to a steam distribution system for the purpose of providing steam to a steam-electric generator that would produce electrical energy for sale is also considered in determining the electrical energy output capacity of the affected facility. 0. "Emissions unit" means any part of a stationary source that emits or would have the potential to emit any regulated new source review pollutant and includes an electric steam generating unit as defined in Subsection N of this section. For purposes of this section, there are two types of emissions units.

Proposed Revisions to 20.2.79 NMAC(1) A new emissions unit is any emissions unit which is (or will be) newly constructed and which has existed for less than 2 years from the date such emissions unit first operated. (2) An existing emissions unit is any emissions unit that does not meet the requirements in Paragraph (I) of this subsection. A replacement unit, as defined in this section, is an existing unit. 

### P. "Federal class I area" means any Federal land that is classified or reclassified "class 

### I". 

## Q. "Federal land manager" means, with respect to any lands in the United States, the secretary of the department with authority over such lands. R. "Federallv enforceable" means all limitations and conditions which are enforceable by the administrator, including those requirements developed pursuant to 40 CFR Parts 60 and 61, requirements within any applicable state implementation plan, any permit requirements established pursuant to 40 CFR 52.21 or under regulations approved pursuant to 40 CFR Part 5 1, Subpart I including 40 CFR 5 1.165 and 40 CFR 5 1.166.

- S. "Fugitive emissions" means those emissions which could not reasonably pass through a stack, chimney, vent, or other functionally equivalent opening. T. "Lowest achievable emission rate" means, for any source, the more stringent rate of emissions based on the following: 

### (1) the most stringent emissions limitation which is contained in the implementation plan of any state for such class or category of stationary source, unless the owner or operator of the proposed stationary source demonstrates that such limitations are not achievable; or (2) the most stringent emissions limitation which is achieved in practice by such class or category of stationary source; this limitation, when applied to a modification, means the lowest achievable emissions rate for the

new or modified emissions units within the stationary source; in no event shall the application of this term permit a proposed new or modified stationary source to emit any pollutant in excess of the amount allowable under an gppiicable new source standard of performance. 

### U. "Major modification" means any physical change in or change in the method of operation of a major stationary source that would result in a significant emissions increase of a regulated new source review pollutant (as defined in this section); and a significant net emissions increase of that pollutant from the major stationary source. Any significant emissions increase (as defined in this section) from any emissions units or net emissions increase (as defined in this section) at a major stationary source that is significant for volatile organic compounds or oxides of nitrogen shall be considered significant for ozone. (1) A physical change or change in the method of operation shall not include: (a) routine maintenance, repair, and replacement; (b) use of an alternative fuel or raw material by reason of an order under Section 2 (a) and (b) of the Energy Supply and Environmental Coordination Act of 1974 (or any superseding legislation) or by reason of

a natural curtailment plan pursuant to the federal Power Act; (c) use of an alternative fuel by reason of an order or rule under Section 125 of the federal Clean Air Act; (d) use of an alternative fuel at a steam generating unit to the extent that the fuel is generated from municipal solid waste; (e) use of an alternative fuel or raw material by a stationary source which: (i) the source was capable of accommodating before December 21, 1976, unless such change would be prohibited under any federally enforceable permit condition which was established after December 2 1, 1976 pursuant to 40 CFR 52.21 or under regulations approved pursuant to 40 CFR 

### 5 1.165 or 40 CFR 5 1.166; or (ii) the source is approved to use under any permit issued under 40 CFR 52.21 or under regulations approved pursuant to 40 CFR 5 1.166; 

### (f) an increase in the hours of operation or in the production rate, unless such change would be prohibited under any federally enforceable permit which was established after December 21, 1976, pursuant to 40 CFR 52.2 1 or under regulations approved pursuant to 40 CFR 

### 5 1.165 or 40 CFR 5 1.166; (g) any change in ownership at a stationary source; or (h) the installation, operation, cessation, or removal of a temporary clean coal technology demonstration project, provided that the project complies with the state implementation plan for the state in which is project is located, and other requirements necessary to attain and maintain the national ambient air quality standards during the project and after it is terminated. (2) This definition shall not apply with respect to a particular regulated new source review pollutant when the major stationary source is complying with the requirements under 20.2.79.120 NMAC for a plantwide applicability limit for that pollutant. Instead, the definition at Paragraph (8) of Subsection 

### B of 20.2.79.120 NMAC shall apply.

Proposed Revisions to 20.2.79 NMAC 413) For the purpose of applyino the requirements of Subsection 

### H of 20.2.79.109 NMAC to modifications at major stationary sources of nitrogen oxides located in ozone nonattainment areas or in ozone transport regions, whether or not subiect to subpart 2, part D, title 

### I of the federal Clean Air Act, any significant net emissi&s increase of nitrogen oxides is considered significant for ozone. (4) Any physical change in, or change in the method of operation of a maior stationary source of volatile organic compounds that results in any increase in emissions of volatile organic compounds from any discrete operation, emissions unit, or other pollutant emitting activity at the source shall be considered a simificant

net emissions increase and a maior modification for ozone, if the major stationary source is located in an extreme

ozone nonattainment area that is subiect to subpart 2, part D, title I of the federal Clean Air Act. V. "Major stationary source" means the following. (1) Any stationary source of air pollutants which emits, or has the potential to emit, 100 tons per year

or more of any regulated new source review pollutant, except that lower emissions thresholds shall apply in areas subject to subpart 2, subpart 3, or subpart 

### 4 of part D, title 

### I of the 

## ...'..--' of the federal Clean Air Act, according to Subparagraphs (a) through 

### (0 of this paragraph (20.2.79.7.V.l NMAC). (a) 50 tons per year of volatile organic compounds in any serious ozone nonattainment area. (b) 50 tons per year of volatile organic compounds in an area within an ozone transport region, except for any severe or extreme ozone nonattainment area. (c) 25 tons per year of volatile organic compounds in any severe ozone nonattainment area. (d) 10 tons per year of volatile organic compounds in any extreme ozone nonattainment area. (e) 50 tons per year of carbon monoxide in any serious nonattainment area for carbon monoxide, where stationary sources contribute significantly to carbon monoxide levels in the area (as determined under rules issued bv the United States environmental protection agency administratorZ, (f) 70 tons per year of PM10 in any serious nonattainment area for PM10. (2) For the purposes of applying the requirements of Subsection 

### H of 20.2.79.109 NMAC to stationary sources of nitrogen oxides located in an ozone nonattainment area or in an ozone transport repion, any stationary source which emits, or has the potential to emit, 100 tons per year or more of nitrogen oxides emissions, except that the emission thresholds in Subparagraphs (a) through (f) of this paragraph (20.2.79.7.V.2 NMAC) shall apply in areas subject to subpart 2 of part 

### D, title I of the federal Clean Air Act. (a) 100 tons per vear or more of nitrogen oxides in any ozone nonattainment area classified as marginal or moderate. (b) 100 tons per vear or more of nitrogen oxides in any ozone nonattainment area classified as

a transitional. submarginal, or incomolete or no data area, when such area is located in an ozone transDort region. (c) 100 tons per year or more of nitrogen oxides in any area designated under section 107(D) if the federal Clean Air Act as attainment or unclassifiable for ozone that is located in an ozone transport region. (d) 50 tons per year or more of nitrogen oxides in any serious nonattainment area for ozone. (e) 25 tons per year or more of nitrogen oxides in any severe nonattainment area for ozone. (f) 10 tons per year or more of nitrogen oxides in any extreme nonattainment area for ozone; or 

### (2 Any physical change that would occur at a stationary source not qualifying under Paragraph 

### (I)

or (2) of this definition as a major stationary source, if the change would constitute a major stationary source by itself. 

### (39 A major stationary source that is major for volatile organic compounds or oxides of nitrogen shall be considered major for ozone. (45) A stationary source shall not be a major stationary source due to hgitive emissions, to the extent they are quantifiable, unless the source belongs to: (a) any category in Subsection B of 20.2.79.1 19 NMAC; or (b) any other stationary source category which as of August 7, 1980 is being regulated under Section 1 1 1 or 1 12 of the federal Clean Air Act. (56J A stationary source shall not be a major stationary source due to secondary emissions. 

### W. "Mandatory federal class I area" means those federal lands that are international parks, national wilderness areas which exceed five thousand (5,000) acres in size, national memorial parks which exceed five thousand (5,000) acres in size, and national parks which exceed six thousand (6,000) acres in size, and which were in existence on August 7, 1977. These areas may not be redesignated. X. "Natural conditions" includes naturally occurring phenomena that reduce visibility as measured in terms of visual range, contrast or coloration.

Proposed Revisions to 20.2.79 NMAC

### Y. "Necessary preconstruction approvals or permits" means those permits or approvals required under federal air quality control laws and regulations and those air quality control laws and regulations which are part of the applicable state implementation plan. Z. "Net emissions increase". (1) With respect to any regulated new source review pollutant emitted by a major stationary source, the amount by which the sum of the following exceeds zero: (a) the increase in emissions from a particular physical change or change in the method of operation at a stationary source as calculated pursuant to Subsection 

### E of 20.2.79.109 NMAC; and (b) any other increases and decreases in actual emissions at the major stationary source that are contemporaneous with the particular change and are otherwise creditable; baseline actual emissions for calculating increases and decreases shall be determined as provided in Subsection 

### E of this section, except that Subparagraphs (c) and (d) of Paragraph (2) of Subsection 

### E of this section shall not apply. (2) An increase or decrease in actual emissions is contemporaneous with the increase from the particular change only if it occurs within the time period five years prior to the commencement of construction on the particular change and the date that the increase from the particular change occurs; (3) An increase or decrease in actual emissions is creditable only if: (a) it occurs within the time period five years prior to the commencement of construction on the particular change and the date that the increase from the particular change occurs; and 

### (b) either the department or the administrator has not relied on it in issuing a permit for the

source under regulations approved pursuant to this section, which permit is in effect when the increase in actual emissions from the particular change occurs. (4) An increase in actual emissions is creditable only to the extent that the new level of actual emissions exceeds the old level. (5) A decrease in actual emissions is creditable only to the extent that: (a) the old level of actual emissions or the old level of allowable emissions whichever is lower, exceeds the new level of actual emissions; (b) it is enforceable as a practical matter at and after the time that actual construction on the particular change begins; (c) the department has not relied on it in issuing any permit under regulations approved pursuant to 40 CFR Part 5 1 Subpart 

### I or the state has not relied on it in demonstrating attainment or reasonable firther progress; and (d) it has approximately the same qualitative significance for public health and welfare as that attributed to the increase from the particular change. (6) An increase that results from a physical change at a source occurs when the emissions unit on which construction occurred becomes operational and begins to emit a particular pollutant. Any replacement unit that requires shakedown becomes operational only after a reasonable shakedown period, not to exceed 180 days. (7) Paragraph (1) of Subsection A of this section shall not apply for determining creditable increases and decreases or afier a change. AA. "Nonattainment area" means, for any air pollutant an area which is shown by monitored data or which is calculated by air quality modeling (or other methods determined by the administrator to be reliable) to exceed any national ambient air quality standard for such pollutant. Such term includes any area identified under Subparagraphs (A) through (C) of Section 107(d)(l) of the federal Clean Air Act. AB. "Nonattainment major new source review (NSR) program" means a major source preconstruction permit program that has been approved by the administrator and incorporated into the New Mexico

state implementation plan to implement the requirements of 40 CFR 5 1.165, or a program that implements 40 CFR Part 5 I, Appendix S, Sections 

### I through VI. Any permit issued under such a program is a major new source review permit. AC. "Part" means an air quality control regulation under Title 20, Chapter 2 of the New Mexico Administrative Code, unless otherwise noted; as adopted or amended by the board. AD. "Portable stationary source" means a source which can be relocated to another operating site with limited dismantling and reassembly. AE. "Potential to emit" means the maximum capacity of a stationary source to emit a pollutant under its physical and operational design. Any physical or operational limitation on the capacity of the source to emit a pollutant, including air pollution control equipment and restrictions on hours of operation or on the type or amount of material combusted, stored, or processed, shall be treated as part of its design only if the limitation or the effect it would have on emissions is federally enforceable.

Proposed Revisions to 20.2.79 NMACAF. "Predictive emissions monitoring system" (PEMS) means all of the equipment necessary to monitor process and control device operational parameters (for example, control device secondary voltages and electric currents) and other information (for example, gas flow rate, oxygen or carbon dioxide concentrations), and calculate and record the mass emissions rate (for example, pounds per hour) on a continuous basis. AG. "Prevention of significant deterioration (PSD) permit" means any permit that is issued under 20.2.74 NMAC. AH. "Project" means a physical change in, or change in the method of operation of, an existing major stationary source. 

### AI. "Projected actual emissions" means, the maximum annual rate, in tons per year, at which an existing emissions unit is projected to emit a regulated new source review pollutant in any one of the 5 years (12- month period) following the date the unit resumes regular operation after the project, or in any one of the 10 years following that date, if the project involves increasing the emissions unit's design capacity or its potential to emit of that regulated new source review pollutant and full utilization of the unit would result in a significant emissions increase or a significant net emissions increase at the major stationary source. In determining the projected actual emissions before beginning actual construction, the owner or operator of the major stationary source: 

### (1) shall consider all relevant information, including but not limited to, historical operational data, the company's own representations, the company's expected business activity and the company's highest projections of business activity, the company's filings with the state or federal regulatory authorities, and compliance plans under the approved plan; and (2) shall include fugitive emissions to the extent quantifiable, and emissions associated with startups, shutdowns, and malfunctions; and (3) shall exclude, in calculating any increase in emissions that results from the particular project, that portion of the unit's emissions following the project that an existing unit could have accommodated during the consecutive 24-month period used to establish the baseline actual emissions under Subsection E of this section and that are also unrelated to the particular project, including any increased utilization due to product demand growth;

or, (4) in lieu of using the method set out in Paragraphs (1) through (3) of this subsection, may elect to use the emissions unit's potential to emit, in tons per year, as defined under Subsection AE of this section. AJ. "Regulated new source review pollutant", for purposes of this section, means the following: (1) nitrogen oxides or any volatile organic compounds; (2) any pollutant for which a national ambient air quality standard has been promulgated; 

### e~ (3) any pollutant that is a constituent or precursor of a general pollutant listed in Paragraphs (1) or (2) of this subsection, provided that a constituent or precursor pollutant may only be regulated under new source review

as part of regulation of the general pollutant. AK. "Replacement Unit" means an emission unit for which all of the following criteria are met. No creditable emission reductions shall be generated from shutting down the existing emissions unit that is replaced. (1) The emissions unit is a reconstructed unit within the meaning of 40 CFR 60.15(b)(l), or the emissions unit completely takes the place of an existing emissions unit. (2) The emissions unit is identical to or fbnctionally equivalent to the replaced emissions unit. (3) The replacement unit does not change the basic design parameter(s) of the process unit. (4) The replaced emissions unit is permanently removed from the major stationary source, otherwise permanently disabled, or permanently barred from operation by a permit that is enforceable as a practical matter. If the replaced emissions unit is brought back into operation, it shall constitute a new emissions unit. AL. "Secondary emissions" means emissions which would occur as a result of the construction or operation of a major stationary source or major modification, but do not come from the major stationary source or major modification itself. For the purpose of this section, secondary emissions must be specific, well defined, quantifiable, and impact the same general area 

### as the stationary source or modification which causes the secondary emissions. Secondary emissions include emissions from any offsite support facility which would not be constructed

or increase its emissions except as a result of the construction or operation of the major stationary source or major modification. Secondary emissions do not include any emissions which come directly from a mobile source, such as emissions from the tailpipe of a motor vehicle, from a train, or from a vessel. AM. "Significant" means: (1) In reference to 

### a net emissions increase or the potential of a source to emit any of the following pollutants, a rate of emissions that would equal or exceed any of the following rates: carbon monoxide, 100 tons per year; nitrogen oxides, 40 tons per year; sulfur dioxide, 40 tons per year; PM-10 emissions, 15 tons per year; ozone, 40 tons per year of volatile organic compounds or nitrogen oxides; lead, 0.6 tons per year.

Proposed Revisions to 20.2.79 NMAC

### (2) Notwithstanding the significant emissions rate for ozone in Paragraph (1) of 20.2.79.7.AM NMAC, significant means, in reference to an emissions increase or a net emissions increase, any increase in actual emissions of volatile orpanic compounds that would result from any physical change in, or change in the method of operation of, a maior stationarv source locating in a serious or severe ozone nonattainment area that is subject to subpart 2, part D, title 

### I of the federal Clean Air Act, if such emissions increase of volatile organic compounds exceeds 25 tons per year. (3) For the puruoses of applying the requirements of Subsection H of 20.2.79.109 NMAC to modifications at maior stationary sources of nitrogen oxides located in an ozone nonattainment area or in an ozone transport region, the significant emission rates and other requirements for volatile organic compounds in Paragraphs (I), (2), and (5) of this subsection (20.2.79.7.AM NMAC) shall apply to nitrogen oxides emissions. (4) Notwithstanding the significant emissions rate for carbon monoxide under Paragraph (1) of this subsection (20.2.79.7.AM NMAC), significant means, in reference to an emissions increase or a net emissions increase, any increase in actual emissions of carbon monoxide that would result from any physical change in. or change in the method of operation of, a maior stationary source in a serious nonattainment area for carbon monoxide if such increase equals or exceeds 50 tons per year, provided the U.S. environmental protection agency administrator has determined that stationarv sources contribute significantly to carbon monoxide levels in that area. (5) Notwithstanding the significant emissions rates for ozone under Paragraphs (1) and (2) of this subsection (20.2.70.7.AM NMAC), any increase in actual emissions of volatile organic compounds from any emissions unit at a maior stationary source of volatile orpanic compounds located in an extreme ozone nonattainment area that is subject to subpart 2, part D, title 

### I of the federal Clean Air Act shall be considered a si~nificant net emissions increase. AN. "Significant emissions increase" means, for a regulated new source review pollutant, an increase in emissions that is significant (as defined in Subsection AM of this section) for that pollutant. AO. "Stationary source" means any building, structure, facility, or installation which emits or may emit any regulated new source review pollutant. AP. "Temporary source1' means a stationary source which changes its location or ceases to exist within one year from the date of initial start of operations. AQ. "Visibility impairment" means any humanly perceptible change in visibility (visual range, contrast, coloration) from that which would have existed under natural conditions. [I 1/30/95; 20.2.79.7 NMAC 

### - Rn, 20 NMAC 2.79.107, 1013 1/02; A, 1/22/06; A, XXlXX/XX]

20.2.79.8 AMENDMENT AND SUPERSESSION OF PRIOR REGULATIONS: This Part amends and supersedes Air Quality Control Regulation ("AQCR") 709 

### -- Permits -- Nonattainment Areas last filed June 25, 1992, as amended ("AQCR 709"). A. All references to AQCR 709 in any other rule shall be construed as a reference to this Part. 

### B. The amendment and supersession of AQCR 709 shall not affect any administrative or judicial enforcement action pending on the effective date of such amendment nor the validity of any permit issued pursuant to AQCR 709. [11/30/95; 20.2.79.8 NMAC 

### - Rn, 20 NMAC 2.79.106, 1013 1/02]

20.2.79.9 DOCUMENTS: Documents cited in this Part may be viewed at the New Mexico Environment Department, Air Quality Bureau, Harold Runnels Building, 1 190 St. Francis Drive, Santa Fe, NM 87505 [2048 Galisteo St., Santa Fe, NM 875051. [I 1/30/95; 20.2.79.9 NMAC 

### - Rn, 20 NMAC 2.79.108, 1013 1/02]

20.2.79.10 SEVERABILITY. If any provision of this part, or the application of such provision to any person or circumstance, is held invalid, the remainder of this part, or the application of such provision to persons or circumstances other than those as to which it is held invalid, shall not be affected thereby. [20.2.79.10 NMAC 

### - N, 1/22/06]

20.2.79.11 CONSTRUCTION. This part shall be liberally construed to carry out its purpose. [20.2.79.11 NMAC 

### - N, 1/22/06]

20.2.79.12 SAVINGS CLAUSE. Repeal or supersession of prior versions of this part shall not affect any administrative or judicial action initiated under those prior versions. [20.2.79.12 NMAC 

### - N, 1/22/06]

Proposed Revisions to 20.2.79 NMAC20.2.79.13 COMPLIANCE WITH OTHER REGULATIONS. Compliance with this part does not relieve

a person from the responsibility to comply with any other applicable federal, state, or local regulations. [20.2.79.13 NMAC 

### - N, 1/22/06]

20.2.79.14 LIMITATION OF DEFENSE. The existence of a valid permit under this part shall not constitute a defense to a violation of any section of this part, except the requirement for obtaining a permit. [20.2.79.14 NMAC 

## - N, 1/22/06]

20.2.79.15 to 20.2.79.108 [RESERVED]

20.2.79.109 APPLICABILITY. A. Any person constructing any new major stationary source or major modification shall obtain a permit from the department in accordance with the requirements of this part prior to the start of construction or modification if either of the following conditions apply: (1) the major stationary source or major modification will be located within a nonattainment area so designated pursuant to Section 107 of the federal Clean Air Act and will emit a regulated pollutant for which it is major and which the area is designated nonattainment for; or (2) the major stationary source or major modification will be located within an area designated attainment or unclassifiable pursuant to Section 107 of the federal Clean Air Act and will emit 

### a regulated pollutant for which it is major and the ambient impact of such pollutant would exceed any of the significance levels in Subsection 

### A of 20.2.79.1 19 NMAC at any location that does not meet any national ambient air quality standard for the same pollutant. (See Subsection 

### D of 20.2.79.109 NMAC.) B. The requirements of this part apply to each regulated pollutant meeting the criteria of either Paragraph 

### (I) or Paragraph (2) of Subsection A of 20.2.79.109 NMAC. 

### C. For an area which is nonattainment for ozone, volatile organic compounds and oxides of nitrogen

are the regulated pollutants which may make this part applicable under the provisions of Paragraph (1) of Subsection A of 20.2.79.109 NMAC. D. Other requirements. (1) A new major stationary source or major modification which meets the criteria of Paragraph 

### (2) of Subsection A of 20.2.79.109 NMAC shall demonstrate that the source or modification will not cause or contribute to

a violation of any national ambient air quality standard by meeting the following requirements and no others of this part: (a) Paragraph (2) of Subsection C of 20.2.79.1 12 NMAC regarding emission offsets; 

### (b) Subsection 

### D of 20.2.79.1 12 NMAC regarding a net air quality benefit; (c) 20.2.79.1 14 NMAC 

## - Emission Offset Baseline; (d) 20.2.79.1 15 NMAC - Emission Offset; and 

### (e) 20.2.79.1 17 NMAC 

### - Air Quality Benefit. (2) In addition, a new source or modification which meets the criteria of Paragraph (2) of Subsection A of 20.2.79.109 NMAC and is also 

### a major stationary source or major modification as defined in 20.2.74 NMAC (prevention of significant deterioration (PSD)), shall obtain a PSD permit under the provisions of 20.2.74 NMAC. 

### E. Applicability procedures. (1) Except as otherwise provided in Paragraphs (3) and (4) of this subsection, and consistent with the definition'of major modification, a project is a major modification for a regulated new source review pollutant if it causes two types of emissions increases 

### - a significant emissions increase (as defined in Subsection AM of 20.2.79.7 NMAC), and a significant net emissions increase (as defined in Subsections 

### Z and AM of 20.2.79.7 NMAC). The project is not a major modification if it does not cause a significant emissions increase. If the project causes a significant emissions increase, then the project is a major modification only if it also results in a significant net emissions increase. (2) The procedure for calculating (before beginning actual construction) whether a significant emissions increase (i.e., the first step of the process) will occur depends upon the type of emissions units being modified, according to Paragraphs (3) and (4) of this subsection. The procedure for calculating (before beginning actual construction) whether a significant net emissions increase will occur at the major stationary source (i.e., the second step of the process) is contained in the definition of net emissions increase. Regardless of any such preconstruction projections, a major modification results if the project causes a significant emissions increase and a significant net emissions increase.

Proposed Revisions to 20.2.79 NMAC 9(3) Actual-to-projected-actual applicability test for projects that involve existing emissions units. A significant emissions increase of a regulated new source review pollutant is projected to occur if the sum of the difference between the projected actual emissions and the baseline actual emissions (as defined in Paragraphs (I) and (2) of Subsection 

### E of 20.2.79.7 NMAC, as applicable), for each existing emissions unit, equals or exceeds the significant amount for that pollutant (as defined in Subsection AM of 20.2.79.7 NMAC). (4) Actual-to-potential test for projects that involve construction of a new emissions unit(s). A significant emissions increase of a regulated new source review pollutant is projected to occur if the sum of the difference between the potential to emit from each new emissions unit following completion of the project and the baseline actual emissions (as defined in Paragraph (3) of Subsection 

### E of 20.2.79.7 NMAC) of these units before the project equals or exceeds the significant amount for that pollutant (as defined in Subsection AM of 20.2.79.7 NMAC). 

### (5) Hybrid test for projects that involve multiple types of emissions units. A significant emissions increase of a regulated NSR pollutant is projected to occur if the sum of the emissions increases for each emissions unit, using the method specified in Paragraphs (3) and (4) of this subsection as applicable with respect to each emissions unit, for each type of emissions unit equals or exceeds the significant amount for that pollutant. For example, if a project involves both an existing emissions unit and a new emissions unit, the projected increase is determined by summing the values determined using the method specified in Paragraph (3) of this subsection for the existing unit and determined using the method specified in Paragraph (4) of this subsection for the new unit. (6) For any major stationary source for a PAL for a regulated new source review pollutant, the major stationary source shall comply with requirements under 20.2.79.120 NMAC. 

### F. The following specific provisions apply to projects at existing emissions units at a major stationary source (other than projects at a source with a PAL) in circumstances where the owner or operator elects to

use the method specified in Paragraphs (1) through (3) of Subsection A1 of 20.2.79.7 NMAC for calculating projected actual emissions. 

### (1) Before beginning actual construction of the project, the owner or operator shall document and maintain a record of the following information: (a) a description of the project; 

### (b) identification of the emissions unit(s) whose emissions of a regulated new source review pollutant could be affected by the project; and (c) a description of the applicability test used to determine that the project is not a major modification for any regulated new source review pollutant, including the baseline actual emissions, the projected actual emissions, the amount of emissions excluded under Paragraph (3) of Subsection A1 of 20.2.79.7 NMAC and

an explanation for why such amount was excluded, and any netting calculations, if applicable. (2) If the emissions unit is an existing electric utility steam generating unit, before beginning actual construction, the owner or operator shall provide a copy of the information set out in Paragraph (1) of this subsection to the department. Nothing in this paragraph shall be construed to require the owner or operator of such a unit to obtain any determination from the department; however, necessary preconstruction approvals and/or permits

must be obtained before beginning actual construction. (3) The owner or operator shall monitor the emissions'of any regulated new source review pollutant that could increase as a result of the project and that is emitted by any emissions units identified in Subparagraph (b) of Paragraph (1) of this subsection; and calculate and maintain a record of the annual emissions, in tons per year on

a calendar year basis, for a period of 5 years following resumption of regular operations after the change, or for a period of 10 years following resumption of regular operations after the change if the project increases the design capacity or potential to emit of that regulated new source review pollutant at such emissions unit. (4) If the unit is an existing electric utility steam generating unit, the owner or operator shall submit a report to the department within 60 days after the end of each year during which records must be generated under Paragraph (3) of this subsection setting out the unit's annual emissions during the year that preceded submission of the report. (5) If the unit is an existing unit other than an electric utility steam generating unit, the owner or operator shall submit a report to the department if the annual emissions, in tons per year, from the project identified in Paragraph (I) of this subsection, exceed the baseline actual emissions (as documented and maintained pursuant to Subparagraph (c) of Paragraph (I) of this subsection, by a significant amount (as defined in Subsection AM of 20.2.79.7 NMAC) for that regulated new source review pollutant, and if such emissions differ from the preconstruction projection as documented and maintained pursuant to Subparagraph (c) of Paragraph (1) of this subsection. Such report shall be submitted to the department within 60 days after the end of such year. The report shall contain the following:

Proposed Revisions to 20.2.79 NMAC

### (a) the name, address and telephone number of the major stationary source; 

### (b) the annual emissions as calculated pursuant to Paragraph (3) of this subsection; and 

### (c) any other information that the owner or operator wishes to include in the report (e.g., an explanation as to why the emissions differ from the preconstruction projection). G. The owner or operator of the source shall make the information required to be documented and maintained pursuant to Subsection F of this section (20.2.79.109 NMAC) available for review upon a request for inspection by the department or the general public pursuant to the requirements contained in 40 CFR 70.4(b)(3)(viii). 

### H. The requirements of this section (20.2.79.109 NMAC) applicable to maior stationary sources and major modifications of volatile organic compounds shall apply to nitrogen oxides emissions from maior stationary

sources and maior modifications of nitrogen oxides in an ozone transport region or in any ozone nonattainment area, except in ozone nonattainment areas or in portions of an ozone transport region where the U.S. Environmental Protection Agency administrator has granted a NOvwaiver applying the standards set forth under section 182(f) of the federal Clean Air Act and the waiver continues to apply. I. In meeting the emissions offset requirements of Section 115 of 20.2.79 NMAC for ozone nonattainment areas that are subiect to subpart 2, part D, title 

### I of the clean air act, the ratio of total actual emissions reductions of VOC to the emissions increase of VOC shall be as follows; 

### (1) In any marginal nonattainment area for ozone, at least 1.1 : 1 ; (2) In any moderate nonattainment area for ozone, at least 1.15: 1 ; (3) In any serious nonattainment area for ozone, at least 1.2: 1 ; (4) In any severe nonattainment area for ozone, at least 1.3: 1 (except that the ratio may be at least 1.2: 1 if the approved state implementation plan also requires all existing major sources in such nonattainment area to

use BACT for the control of VOC); and (5) In any extreme nonattainment area for ozone, at least 1.5: 

### 1 (except that the ratio may be at least 1.2:l if the approved state implementation plan also requires all existing maior sources in such nonattainment area to

use BACT for the control of VOC. J. Notwithstanding the requirements of Para~raph (I) of 20.2.79.1 NMAC for meeting the requirements of Section 1 15 of 20.2.79 NMAC. the ratio of total actual emissions reductions of VOC to the emissions increase of VOC shall be at least 1.15: 1 for all areas within an ozone transport region that is subiect to subpart 2, part D title 

### I of the federal Clean Air Act, except for serious. severe, and extreme ozone nonattainment

areas that are subject to subpart 2, part D, title I of the federal Clean Air Act. K. Meeting the emissions offset requirements of Section 115 of 20.2.79 NMAC for ozone nonattainment areas that are subiect to subpart 1. part D, title 

### I of the clean air act, including 8-hour ozone nonattainment areas subject to 40 CFR 5 1.902(b), the ratio of total actual emissions increase of VOC shall be at least 1:l. 

### - L. The requirements of Section 109 of 20.2.79 NMAC auulicable to maior stationary sources and maior modifications of PM10 shall also apply to maior stationary sources and maior modifications of PMIO
precursors except where the US. Environmental Protection A~encv administrator determines that such sources do not contribute significantly to PMlO levels that exceed the PMlO ambient standards in the area. [I 1130195; 20.2.79.109 NMAC 

### - Rn, 20 NMAC 2.79.109, 1013 1/02; A, 1/22/06; A, 

### XXJWXX]

20.2.79.110 

### SOURCE OBLIGATION: A. The requirements of this Part shall apply as though construction had not yet commenced at the time that a source or modification becomes a major source or major modification solely due to a relaxation in any enforceable limitation established after August 

### 7, 1980. B. The issuance of a permit by the Department shall not relieve any owner or operator of the responsibility to comply with the provisions of the Air Quality Control Act, sections 74-2-1 to 74-2-17, NMSA 1978, any applicable regulations of the Board, and any other requirements under local, state, or federal law. C. Any owner or operator who commences construction or operates a major stationary source or major modification without, or not in accordance with, a permit issued under the requirements of this Part shall be subject to enforcement action. D. Approval to construct shall become invalid if construction is not commenced within 18 months after receipt of such approval, if construction is discontinued for a period of 18 months or more, or if construction is not completed within a reasonable time. For a phased construction project, each phase must commence construction within 18 months of the projected and approved commencement date. The Secretary may extend the 18-month period upon a satisfactory showing that an extension is justified.

Proposed Revisions to 20.2.79 NMAC 

### 11E. For phased construction projects, the determination of the lowest achievable emission rate shall be reviewed and modified as appropriate at the latest reasonable time, but no later than 18 months prior to commencement of construction of each independent phase of the project. At such time, the owner or operator of the applicable stationary source may be required to demonstrate the adequacy of any previous determination of lowest achievable emission rate. 

### F. If the owner or operator previously issued a permit under this Part applies for an extension as provided for under subsection D of 20.2.79.1 10 NMAC, and the new proposed date of construction is greater than 18 months from the date the permit would become invalid, the determination of lowest achievable emission rate shall be reviewed and modified as appropriate before such an extension is granted. At such time, the owner or operator may be required to demonstrate the adequacy of any previous determination of lowest achievable emission

rate. [I 1130195; 20.2.79.1 10 NMAC 

### - 

### Rn, 20 NMAC 2.79.1 10, 10/31/02]

20.2.79.111 APPLICATION CONTENTS: The owner or operator of a proposed major stationary source or major modification shall submit all information necessary to perform any analysis or make any determination required under this Part. The items of this section are required before the Department may deem an application administratively complete. All applications shall include: A. All information required by subsection A of 20.2.72.203 MAC;and B. A detailed schedule for construction of the major stationary source or major modification; and C. A detailed description of the planned system of continuous emission reduction to be implemented, emission estimates, and other information necessary to demonstrate that the lowest achievable emission rate or any other applicable emission limitation will be maintained [I 1/30/95; A, 01/01/00; 20.2.79.1 11 NMAC 

### - Rn, 20 NMAC 2.79.1 11, 10/31/02]

20.2.79.112 SOURCE REQUIREMENTS: In order for a permit to be granted, all of the following conditions shall be met: A. The major stationary source or major modification shall be designed such that the lowest achievable emission rate (LAER) will be met and maintained for each pollutant emitted which is subject to this Part; B. The owner or operator of the proposed new or modified source has demonstrated that all existing major stationary sources owned or operated by such person (or any entity controlling, controlled by, or under

common control with such person) in this state are in compliance with, or on a schedule for compliance, with all applicable emission limitations and standards, under the Federal Act, and all conditions in a federally enforceable permit; C. Emission Reductions: 

### (1) Emission reductions (offsets) at existing sources shall occur prior to or concurrent with the start of operation of the proposed major stationary source or major modification for each pollutant emitted which is subject
to this Part. As a general rule, such offsets shall be at least twenty percent (20%) greater than the allowable emissions of the proposed new major stationary source or major modification, and shall assure that the total tonnage of increased emissions of the air pollutant from the new or modified source shall be offset by an equal or greater reduction in the actual emissions of such air pollutant from the same or other sources in the area. An offset less than twenty percent (20%) but at least ten percent (lo%, or 1 :I .I ratio), may be allowed if reasonable progress toward the atta'inment of the applicable NAAQS will be achieved. A higher level of offset reduction may be required in order

to demonstrate that a net air quality benefit will occur; or (2) A new major stationary source or major modification which is subject to the requirements of subsection 

### D of 20.2.79.109 NMAC shall obtain sufficient emission reductions to, at a minimum, compensate for its adverse ambient impact where the major stationary source or major modification would otherwise cause or contribute to a violation of any national ambient air quality standard. D. Emission offsets shall provide a net air quality benefit in the area where the national ambient air quality standard for that pollutant is violated; and 

### E. The owner or operator of the proposed major stationary source or major modification has conducted an analysis of alternative sites, sizes, production processes, and environmental control techniques for such proposed source which demonstrates that benefits of the proposed source significantly outweigh the environmental and social costs imposed as a result of its location, construction, or modification. 

### F. The proposed major stationary source or major modification will meet all applicable emission requirements in the New Mexico State Implementation Plan, any applicable new source performance standard in 40 CFR Part 60, and any national emission standard for hazardous air pollutants in 40 CFR Part 

### 6 1.

Proposed Revisions to 20.2.79 NMAC 12

### [I 1130195; A, 10101197; 20.2.79.1 12 NMAC - Rn, 20 NMAC 2.79.1 12, 10/31/02]

20.2.79.113 ADDITIONAL REQUIREMENTS FOR SOURCES IMPACTING MANDATORY FEDERAL CLASS 

### I AREAS: A. The requirements of this section apply only to proposed major stationary sources or major modifications that meet the criteria of paragraph (I) of subsection A of 20.2.79.109 NMAC and that also are major stationary sources or major modifications as defined in 20.2.74 NMAC. A major stationary source or major modification which meets the criteria of paragraph (2) of subsection A of 20.2.79. I09 NMAC may be subject to requirements for Federal Class I Areas in 20.2.74 NMAC if that Part applies. 

### B. The Department shall transmit to the Administrator and any affected Federal Land Manager a copy of each permit application and any information relevant to any proposed major stationary source or major modification which may have an impact on visibility in any mandatory Federal Class I area. Relevant information will include an analysis of the proposed source's anticipated impacts on visibility in the Federal Class I area. The application shall be transmitted within thirty (30) days of receipt by the Department and at least sixty (60) days prior to any public hearing on the application. Additionally, the Department shall notify any affected Federal Land Manager within thirty (30) days from the date the Department receives a request for a pre-application meeting from

a proposed source subject to this Part. The Department shall consult with the affected Federal Land Manager prior
to making a determination of completeness for any such permit application. The Department shall also provide the Federal Land Manager and the Administrator with a copy of the preliminary determination on the permit application and shall make available to them any materials used in making that determination. C. The owner or operator of any proposed major stationary source or major modification which may have an impact on visibility in a mandatory Federal Class I area shall include in the permit application an analysis of the anticipated impacts on visibility in such areas. D. The Department may require monitoring of visibility in any mandatory Federal Class I area where the Department determines an adverse impact on visibility may occur due to the operations of the proposed new

source or modification. Such monitoring shall be conducted following procedures approved by the Department and subject to the following conditions: (1) Visibility monitoring methods specified by the Department shall be reasonably available and not require any research and development; and (2) Both preconstruction and post construction visibility monitoring may be required. In each case, the duration of such monitoring shall not exceed one year. E. The Department shall consider any analysis with respect to visibility impacts provided by the Federal Land Manager if it is received within thirty (30) days from the date a complete application is given to the Federal Land Manager. In any case where the Department disagrees with the Federal Land Manager's analysis, the Department shall either explain its decision to the Federal Land Manager or give notice as to where the explanation

can be obtained. In the case where the Department disagrees with the Federal Land Manager's analysis, the Department will also explain its decision or give notice to the public by means of an advertisement in a newspaper of general circulation in the area in which the proposed source would be constructed as to where the decision can be obtained. 

### F. In making its determination as to whether or not to issue a permit, the Department shall ensure that the source's emissions will be consistent with making reasonable progress toward the national visibility goal of preventing any future impairment of visibility in mandatory Federal Class I areas. The Department may take into account the costs of compliance, the time necessary for compliance, the energy and non-air quality environmental impacts of compliance, and the useful life of the source. [I 1130195; 20.2.79.1 13 NMAC 

### - Rn, 20 NMAC 2.79.113, 10131/02]

20.2.79.114 EMISSION OFFSET BASELINE: The baseline for determining credit for emission offsets shall be the most stringent emissions limitation pursuant to a New Mexico air quality regulation or federally enforceable permit which is applicable and in effect at the time the application to construct is filed. If neither a state air quality regulation nor a federally enforceable permit contains an emissions limitation for the source, the baseline shall be the actual emissions of the source from which offset credit is obtained. Where a source is subject to an emission standard established in a New Source Performance Standard (NSPS) or a National Emission Standard for Hazardous Air Pollutants (NESHAPS) and a different State Implementation Plan or permit limitation, including any emission limitation used in demonstrating reasonable further progress, the more stringent emission standard shall be used as the baseline for determining credit for emission offsets. [I 1130195; 20.2.79.1 14 NMAC 

## - Rn, 20 NMAC 2.79.1 14, 1013 1/02]

Proposed Revisions to 20.2.79 NMAC 1320.2.79.115 

### EMISSION OFFSETS. All emission offsets approved by the department shall meet the following criteria. 

### A. All emission reductions claimed as offset credit shall be from decreases of the same pollutant for which the offset is required. 

### B. All emission reductions claimed as offset credit shall occur prior to or concurrent with the start of operation of the proposed source. In addition, past reductions must have occurred later than the date upon which the aiea became n~~attainlnent in order to be creditable. 

### C. For the case where emission reductions claimed as offset credit occur at the source subject to this part, such reductions shall be a condition required by a federally enforceable permit. For the case where emission reductions claimed as offset credit occur at a neighboring source, such reductions shall be incorporated as modifications to pertinent federally enforceable permits held by the neighboring source. If the neighboring source has no relevant permits, the reductions shall be approved as a revision to the state implementation plan by the board. 

### D. Offset credit for any emissions reduction can be claimed only to the extent that the department or U.S. EPA has not relied on it in previously issuing any permit or in demonstrating attainment or reasonable hrther
progress. E. No emissions reduction credit shall be allowed for replacing one volatile organic compound with another of lesser reactivity, except as approved by the U.S. EPA reactivity guidance found at 42 Federal Register 353 14, (1977), and any amendments thereto. 

### F. Emission reduction credit may be allowed for a source permanently curtailing production or operating hours below baseline levels provided that the work force to be affected has been notified of the curtailment. (1) Emissions reductions achieved by shutting down an existing sewee emission unit or curtailing production or operating hours below baseline levels may be generally credited for offsets if such reductions are permanent, quantifiable, and federally enforceable- EPA 

# w. In addition, the shutdown or curtailment is creditable only if it occurred -after the date of the most recent emissions inventory used in them implementationlan's demonstration of attainment.

However, in no event may credit be given for shutdowns which occurred prior to August 7, 1977. For purposes of this paragraph, a permitting authority may choose to consider a prior shutdown or curtailment to have occurred after

. 

### . the date of P the base year inventory, if the proiected inventory used to develop the

. . 

### . . attainment demonstration explicitly includes 

### .* the emissions from such previously shutdown or curtailed emission units. (2) Such reductions may be credited in the absence of an approved attainment demonstration only if the shutdown or curtailment occurred on or after the date the new source pennit application is filed, or, if the applicant can establish that the proposed new 

### wwee emission unit is a replacement for the shutdown or curtailed

sewe emission unit, and th- provisions of Paragraph (1) of this subsection (20.2.79.7.F NMAC) are observed. G. Where the most stringent emissions limit which is applicable allows greater emissions than the potential to emit of the offsetting source, emission offset credit will be allowed only for control below the potential

to emit of the source. 

### H. The emission limit for determining emission offset credit involving an existing fbel combustion

source shall be the most stringent emission standard which is applicable for this source for the type of fbel being burned at the time the permit application is filed. If the existing source commits to switch to a cleaner fuel, emission offset credit based on the difference between the allowable emissions of the fuels involved shall be acceptable only if an alternative control measure, which would achieve the same degree of emission reduction should the source switch back to a fuel which produces more pollution, is specified in a permit issued by the department. 

### I. The owner or operator desiring to utilize an emission reduction as an offset shall submit to the department the following information: (1) a detailed description of the process to be controlled and the control technology to be used; and (2) emission calculations showing the types and amounts of actual emissions to be reduced; and (3) the effective date of the reduction. 

### J. Source shutdowns and curtailments in production or operating hours may be used for emission offset credit only if they occur after August 7, 1977, or less than one year prior to the date of permit application,

Proposed Revisions to 20.2.79 NMACwhichever is earlier, and the proposed new source for which the offset is to apply is a replacement for the shutdown

or curtailment. 

### K. The total tonnage of increased emissions, in tons per year, resulting from a major modification that must be offset in accordance with Section 173 of the federal Clean Air Act shall be determined by summing the difference between the allowable emissions after the modification and the actual emissions before the modification for each emissions unit. [I 1130195; 20.2.79.1 15 NMAC 

### - Rn, 20 NMAC 2.79.1 15, 10/31/02; A, 1/22/06; A, 

### XX/XX/XX]

20.2.79.116 BANKING OF EMISSION REDUCTION: A. Any stationary source which decreases actual emissions of a regulated pollutant in excess of the requirements of this Part or any other applicable air quality regulation or permit emission limitation may preserve or bank such excess emission reductions for sale or hture use. B. The owner or operator desiring to preserve such reductions shall submit a written request prior to the actual emission reduction to the Department which contains the following information: (1) A detailed description of the process(es) to be controlled and the control technology to be used; and (2) Emission calculations showing the types and amounts of actual emissions to be reduced; and (3) The effective date(s) of such reductions. C. The Department shall: (1) Verify the amount of emission reduction claimed in the written request; and (2) Approve or deny the request for banking of the emission reduction and notify the applicant in writing of the decision; and (3) Keep appropriate records of any emission reduction accepted for banking; and (4) For the case where emission reductions are approved in excess of those required for obtaining a permit under this Part, the Department shall make such reductions a condition of the permit; and (5) For the case where emission reductions are approved not in conjunction with granting a permit, the Department shall preserve such reductions as a State Implementation Plan revision which must be approved by the Environmental Improvement Board. 

### D. Use and Sale of Emission Reductions. (1) The use of any preserved emission reduction is confined to meeting the emission offset requirements of this Part or 20.2.72 NMAC. (2) The provisions of this Part apply to the hture use of any preserved emission reduction as if such reductions were obtained concurrently with the commencement of operations of the new or modified source. (3) Before the use or sale of any preserved emission reduction occurs, written notification must be given to the Department. Such notice shall be in writing and shall identify the permit(s) and State Implementation Plan revision(s) in which such reductions are preserved. The Department must verify the availability of the preserved reduction before any use or sale occurs. (4) The use of preserved emission reduction credits is subject to the criteria of 20.2.79.1 15 NMAC - Emission Offsets. [I 1130195; 20.2.79.1 16 NMAC 

### - Rn, 20 NMAC 2.79.1 16, 1013 1/02]

20.2.79.117 AIR QUALITY BENEFIT: All demonstrations of the occurrence of a net air quality benefit shall meet the following criteria: 

## ./ A. Emission offsets for volatile organic compounds or nitrogen oxides emissions impacting an ozone nonattainment area may be obtained from sources located in the broad vicinity of the proposed new source or modification, subject to approval by the Department. Atmospheric dispersion modeling will not be required to demonstrate the net air quality benefit that occurs due to reductions in volatile organic compound emissions. B. An applicant which proposes emission offsets for sulfur dioxide, particulate matter, carbon monoxide, nitrogen oxides, or any other pollutant may be required by the Department to submit atmospheric dispersion modeling to demonstrate a net air quality benefit will occur. For any case involving these pollutants where stack emissions and fugitive or ground level emissions are offsetting, atmospheric dispersion modeling shall be required to demonstrate a net air quality benefit will occur. [1 1/30/95; 20.2.79.1 17 NMAC 

### - Rn, 20 NMAC 2.79.1 17, 1013 1/02]

20.2.79.118 PUBLIC PARTICIPATION AND NOTIFICATION:

Proposed Revisions to 20.2.79 NMACA. The Department shall, within thirty (30) days after its receipt of an application for a permit or significant permit revision subject to this Part, review such application and determine whether it is administratively complete. If the application is deemed: 

### (1) administratively complete, a letter to that effect shall be sent by certified mail to the applicant. (2) administratively incomplete, a letter shall be sent by certified mail to the applicant stating what additional information or points of clarification are necessary to deem the application administratively complete. Upon receipt of the additional information or clarification, the Department shall promptly review such information and determine whether the application is administratively complete. (3) administratively complete but no permit is required, a letter shall be sent by certified mail to the applicant informing the applicant of the determination. B. The Department shall: (1) Make a preliminary determination whether construction should be approved, approved with conditions, or disapproved. 

### (2) Make available at the Department, district and local office nearest to the proposed source a copy of all materials the applicant submitted, a copy of the preliminary determination, and a copy or summary of other materials, if any, considered in making the preliminary determination. (3) Notify the public by advertisement in a newspaper of general circulation in the area in which the proposed major stationary source or major modification would be constructed, of the application, the preliminary determination, and of the opportunity for comment at a public hearing as well as written public comment. The public comment period shall be for forty-five days from the date of such advertisement. (4) Send a copy of the notice of public comment to the applicant, the Administrator, and to officials and agencies having jurisdiction over the location where the proposed construction would occur as follows: any other state or local air pollution control agencies, the chief executives of the city and county where the source would be located, any regional comprehensive land use planning agency, and any state, federal land manager, or Indian governing body whose lands may be affected by emissions from the source or modification. (5) Provide opportunity for a public hearing for interested persons to appear and submit written or oral comments on the air quality impact of the source and other appropriate considerations. Public hearings shall be held in the geographic area likely to be impacted by the source. 

### (6) Consider all written comments submitted within a time specified in the notice of public comment and all comments received at any public hearing(s) in making a final decision on the approvability of the application. The Department shall make all comments available for public inspection in the same locations where the Department made available preconstruction information relating to the source. (7) Within ninety (90) days after the application is deemed administratively complete, unless the Secretary grants an extension, as specified in 20.2.72.207 NMAC, not to exceed ninety (90) days for good cause: (a) make a final determination whether construction should be approved, approved with conditions, or disapproved, or whether no permit is required; and 

### (b) notify the applicant in writing of the final determination and make such notification available for public inspection at the same location where the Department made available preconstruction information and public comments relating to the source. [11/30/95; A, 01/01/00; 20.2.79.1 18 NMAC 

### - Rn, 20 NMAC 2.79.1 18, 10/31/02]

20.2.79.119 TABLES: A. Significant Ambient Concentrations:

[Concentration in micrograms per cubic meter (&m3) or milligrams per cubic meter (mg/m3)] Pollutant Averaging Time Annual 24-hr 8-hr 3-hr I -hr Sulfbr Dioxide l .O pg/m3 5 -- 25 pg/m3 -- PMIO 1.0 pg/tn3 5 pg/m -- 

### -- -- Nitrogen Dioxide 1.0 &rn3 

### -- -- -- -- Carbon Monoxide -- -- 0.5 mg/m3 

### -- 2 mg/m3

B. Fugitive Emissions Source Categories: 

### (1) Carbon black plants (furnace process); (2) Charcoal production plants;

Proposed Revisions to 20.2.79 NMAC(3) Chemical process plants; (4) Coal cleaning plants (with thermal dryers); (5) Coke oven batteries; (6) Fossil fuel-fired steam electric plants of more than 250 million Btuhr heat input; (7) Fossil fuel boiler (or combination thereof) totaling more than 50 million Btdhr heat input; (8) Fuel conversion plants; (9) Glass fiber processing plants; (10) Hydrofluoric acid plants; (11) Iron and steel mill plants; (12) Kraft pulp mills; (13) Lime plants; (14) Municipal incinerators capable of charging more than 250 tons of refuse per day; (15) Nitric acid plants; (16) Petroleum refineries; (17) Petroleum storage and transfer units with a total storage capacity exceeding 300,000 barrels; (18) Phosphate rock processing plants; (19) Portland cement plant; (20) Primary lead smelters; (21) Primary zinc smelters; (22) Primary aluminum ore reduction plants; (23) Primary copper smelters; (24) Secondary metal production plants; (25) Sintering plants; (26) Sulfur recovery plants; (27) Sulfuric acid plants; (28) Taconite ore processing plants. [I 1130195; 20.2.79.1 19 NMAC 

### - Rn, 20 NMAC 2.79.1 19, 1013 1/02]

20.2.79.120 ACTUALS PLANTWIDE APPLICABILITY LIMITS (PALs). A. Applicability. (1) The department may approve the use of an actuals PAL for any existing major stationary source (except as provided in Paragraph 

### (2) of this subsection) if the PAL meets the requirements of this section. The term "PAL" shall mean "actuals PAL" throughout this section. (2) Actuals PALs shall not be allowed for VOC or NOx for any major stationary source located in an extreme ozone nonattainment area. (3) Any physical change in or change in the method of operation of a major stationary source that maintains its total source-wide emissions below the PAL level, meets the requirements of this section, and complies with the PAL permit: (a) is not a major modification for the PAL pollutant; (b) does not have to be approved through the requirements of this part; and 

### (c) is not subject to the provisions in 20.2.79.1 10 NMAC (restrictions on relaxing enforceable emission limitations that the major stationary source used to avoid applicability of the nonattainment major new

source review program). (4) Except as provided under Subparagraph (c) of Paragraph (3) of this subsection, a major stationary

source shall continue to comply with all applicable federal or state requirements, emission limitations, and work practice requirements that were established prior to the effective date of the PAL. B. Definitions. When a term is not defined in this subsection, it shall have the meaning given in 20.2.79.7 NMAC or in 20.2.2 NMAC. (1) Actuals PAL for a major stationary source means a PAL based on the baseline actual emissions of all emissions units at the source, that emit or have the potential to emit the PAL pollutant. 

### (2) Allowable emissions means "allowable emissions" as defined in 20.2.79.7 NMAC, except as this definition is modified according to the following. (a) The allowable emissions for any emissions unit shall be calculated considering any emission limitations that are enforceable as a practical matter on the emissions unit's potential to emit. 

### (b) An emissions unit's potential to emit shall be determined using the definition in this part, except that the words "or enforceable as a practical matter" should be added after "federally enforceable".

Proposed Revisions to 20.2.79 NMAC 17(3) Small emissions unit means an emissions unit that emits or has the potential to emit the PAL pollutant in an amount less than the significant level for that PAL pollutant, as defined in Subsection AM of 20.2.79.7 NMAC or in the federal Clean Air Act, whichever is lower. (4) Major emissions unit means: (a) any emissions unit that emits or has the potential to emit 100 tons per year or more of the PAL pollutant in an attainment area; or (b) any emissions unit that emits or has the potential to emit the PAL pollutant in an amount that is equal to or greater than the major source threshold for the PAL pollutant as defined by the federal Clean Air Act for nonattainment areas; for example, in accordance with the definition of major stationary source in Section 182 (c) of the federal Clean Air Act, an emissions unit would be a major emissions unit for VOC if the emissions unit is located in a serious ozone nonattainment area and it emits or has the potential to emit 50 or more tons of VOC
per year. (5) Plantwide applicability limitation (PAL) means an emission limitation expressed in tons per year, for a pollutant at a major stationary source, that is enforceable as a practical matter and established source-wide in accordance with this section. (6) PAL effective date generally means the date of issuance of the PAL permit. However, the PAL effective date for an increased PAL is the date any emissions unit which is part of the PAL major modification becomes operational and begins to emit the PAL pollutant. 

### (7) PAL effective period means the period beginning with the PAL effective date and ending 10 years later. (8) PAL major modification means, notwithstanding the definitions for major modification and net emissions increase in 20.2.79.7 NMAC, any physical change in or change in the method of operation of the PAL

source that causes it to emit the PAL pollutant at a level equal to or greater than the PAL. (9) PAL permit means the major new source review permit, the minor NSR permit, or the state operating permit under the requirements of 20.2.72 NMAC, 20.2.74 NMAC, 20.2.79 NMAC, or the title V permit under the requirements of 20.2.70 NMAC issued by the department that establishes a PAL for a major stationary

source. (10) PAL pollutant means the pollutant for which a PAL is established at a major stationary source. (11) Significant emissions unit means an emissions unit that emits or has the potential to emit a PAL pollutant in an amount that is equal to or greater than the significant level (as defined in Subsection AM of 20.2.79.7 NMAC or in the federal Clean Air Act, whichever is lower) for that PAL pollutant, but less than the amount that would qualify the unit as a major emissions unit as defined in Paragraph (4) of Subsection B of this section. C. Permit application requirements. As part of a permit application requesting a PAL, the owner or operator of a major stationary source shall submit the following information to the department for approval. (1) A list of all emissions units at the source designated as small, significant or major based on their potential to emit. In addition, the owner or operator of the source shall indicate which, if any, federal or state applicable requirements, emission limitations or work practices apply to each unit. (2) Calculations of the baseline actual emissions (with supporting documentation). Baseline actual emissions are to include emissions associated not only with operation of the unit, but also emissions associated with startup, shutdown and malfunction. (3) The calculation procedures that the major stationary source owner or operator proposes to use to convert the monitoring system data to monthly emissions and annual emissions based on a 12-month rolling total for each month as required by Paragraph (1) of Subsection M of this section. D. General requirements for establishing PALS. (1) A PAL at a major stationary source may be allowed by the department, provided that at a minimum, the following requirements are met. 

### (a) The PAL shall impose an annual emission limitation in tons per year, that is enforceable as

a practical matter, for the entire major stationary source. For each month during the PAL effective period after the first 12 months of establishing a PAL, the major stationary source owner or operator shall show that the sum of the monthly emissions from each emissions unit under the PAL for the previous 12 consecutive months is less than the PAL (a 12-month average, rolled monthly). For each month during the first 1 

### 1 months from the PAL effective date, the major stationary source owner or operator shall show that the sum of the preceding monthly emissions from the PAL effective date for each emissions unit under the PAL is less than the PAL. (b) The PAL shall be established in a PAL permit that meets the public participation requirements in Subsection 

### E of this section. (c) The PAL permit shall contain all the requirements of Subsection G of this section.

Proposed Revisions to 20.2.79 NMAC(d) The PAL shall include fbgitive emissions, to the extent quantifiable, from all emissions units that emit or have the potential to emit the PAL pollutant at the major stationary source. (e) Each PAL shall regulate emissions of only one pollutant. (f) Each PAL shall have 

### a PAL effective period of 10 years. (g) The owner or operator of the major stationary source with a PAL shall comply with the monitoring, recordkeeping, and reporting requirements provided in Subsections L through N of this section for each emissions unit under the PAL through the PAL effective period. 

### (2) At no time (during or after the PAL effective period) are emissions reductions of a PAL pollutant, which occur during the PAL effective period, creditable as decreases for purposes of offsets under 20.2.79.1 

### 15 NMAC unless the level of the PAL is reduced by the amount of such emissions reductions and such reductions would be creditable in the absence of the PAL. 

### E. Public participation requirement for PALs. PALs for existing major stationary sources shall be established, renewed, or increased through a procedure that is consistent with 40 CFR 5 1.160 and 16 1. This includes the requirement that the department provide the public with notice of the proposed approval of a PAL permit and at least a 30-day period for submittal of public comment. The department shall address all material comments before taking final action on the permit. F. Setting the 10-year actuals PAL level. (1) Except as provided in Paragraph (2) of this subsection, the actuals PAL level for a major stationary source shall be established as the sum of the baseline actual emissions (as defined in 20.2.79.7 NMAC) of the PAL pollutant for each emissions unit at the source; plus an amount equal to the applicable significant level for the PAL pollutant under 20.2.79.7 NMAC or under the act, whichever is lower. When establishing the actuals PAL level, for a PAL pollutant, only one consecutive 24-month period must be used to determine the baseline actual emissions for all existing emissions units. However, a different consecutive 24-month period may be used for each different PAL pollutant. Emissions associated with units that were permanently shutdown after this 24-month period

must be subtracted from the PAL level. The department shall specify a reduced PAL level(s) (in tonslyr) in the PAL permit to become effective on the kture compliance date(s) of any applicable federal or state regulatory requirement(s) that the department is aware of prior to issuance of the PAL permit. For instance, if the source owner or operator will be required to reduce emissions from industrial boilers in half from baseline emissions of 60 ppm NOx to a new rule limit of 30 ppm, then the permit shall contain a future effective PAL level that is equal to the current PAL level reduced by half of the original baseline emissions of such unit(s). (2) For newly constructed units (which do not include modifications to existing units) on which actual construction began after the 24-month period, in lieu of adding the baseline actual emissions as specified in Paragraph (1) of this subsection, the emissions must be added to the PAL level in an amount equal to the potential to emit of the units. 

### G. Contents of the PAL permit. The PAL permit shall contain, at a minimum, all of the following information. (1) The PAL pollutant and the applicable source-wide emission limitation in tons per year. (2) The PAL permit effective date and the expiration date of the PAL (PAL effective period). (3) Specification in the PAL permit that if a major stationary source owner or operator applies to

renew a PAL in accordance with Subsection 

### J of this section before the end of the PAL effective period, then the PAL shall not expire at the end of the PAL effective period. It shall remain in effect until a revised PAL permit is issued by the department. (4) A requirement that emission calculations for compliance purposes include emissions from startups, shutdowns and malfunctions. (5) A requirement that, once the PAL expires, the major stationary source is subject to the requirements of Subsection 

### 1 of this section. (6) The calculation procedures that the major stationary source owner or operator shall use to convert the monitoring system data to monthly emissions and annual emissions based on a 12-month rolling total for each month as required by Paragraph 

### (1) of Subsection 

### M of this section. 

### (7) A requirement that the major stationary source owner or operator monitor all emissions units in accordance with the provisions under Subsection L of this section. (8) A requirement to retain the records required under Subsection M of this section on site. Such records may be retained in an electronic format. (9) A requirement to submit the reports required under Subsection 

### N of this section by the required deadlines. (10) Any other requirements that the department deems necessary to implement and enforce the PAL.

Proposed Revisions to 20.2.79 NMAC 19H. PAL effective period and reopening of the PAL permit. (1) PAL effective period. The permit shall specify a PAL effective period of 10 years. (2) Reopening of the PAL permit. (a) During the PAL effective period, the department shall reopen the PAL permit to: (i) correct 

### typographical/calculationerrors made in setting the PAL or reflect a more accurate determination of emissions used to establish the PAL; (ii) reduce the PAL if the owner or operator of the major stationary source creates creditable emissions reductions for use as offsets under 20.2.79.1 15 NMAC; or (iii) revise the PAL to reflect an increase in the PAL as provided under Subsection 

### K of this section. (b) The department may reopen the PAL permit for the following: (i) to reduce the PAL to reflect newly applicable federal requirements (for example, NSPS) with compliance dates after the PAL effective date; (ii) to reduce the PAL consistent with any other requirement, that is enforceable as a practical matter, and that the department may impose on the major stationary source under this part; or (iii) to reduce the PAL if the department determines that a reduction is necessary to avoid causing or contributing to a NAAQS or PSD increment violation, or to an adverse impact on an air quality related value that has been identified for a federal class I area by a federal land manager and for which information is available to the general public. (c) Except for the permit reopening in Item (i) of Subparagraph (a) of this paragraph for the correction of 

### typographical/calculation errors that do not increase the PAL level, all other reopenings shall be carried

out in accordance with the public participation requirements of Subsection E of this section. 1. Expiration of a PAL. Any PAL which is not renewed in accordance with the procedures in Subsection 

### J of this section shall expire at the end of the PAL effective period, and the following requirements shall apply. (1) Each emissions unit (or each group of emissions units) that existed under the PAL shall comply with an allowable emission limitation under a revised permit established according to the following procedures. (a) Within the time frame specified for PAL renewals in Paragraph (2) of Subsection 

### J of this section, the major stationary source shall submit a proposed allowable emission limitation for each emissions unit (or each group of emissions units, if such a distribution'is more appropriate as decided by the department) by distributing the PAL allowable emissions for the major stationary source among each of the emissions units that existed under the PAL. If the PAL had not yet been adjusted for an applicable requirement that became effective during the PAL effective period, as required under Paragraph (5) of Subsection 

### J of this section, such distribution shall be made as if the PAL had been adjusted. 

### (b) The department shall decide whether and how the PAL allowable emissions will be distributed and issue a revised permit incorporating allowable limits for each emissions unit, or each group of emissions units, as the department determines is appropriate. (2) Each emissions unit(s) shall comply with the allowable emission limitation on a 12-month rolling basis. The department may approve the use of monitoring systems (source testing, emission factors, etc.) other than CEMS, CERMS, PEMS or CPMS to demonstrate compliance with the allowable emission limitation. (3) Until the department issues the revised permit incorporating allowable limits for each emissions unit, or each group of emissions units, as required under Subparagraph (a) of Paragraph (1) of this subsection, the

source shall continue to comply with a source-wide, multi-unit emissions cap equivalent to the level of the PAL emission limitation. (4) Any physical change or change in the method of operation at the major stationary source will be subject to the nonattainment major new source review requirements if such change meets the definition of major modification in 20.2.79.7 NMAC. (5) The major stationary source owner or operator shall continue to comply with any New Mexico or federal applicable requirements (BACT, RACT, NSPS, etc.) that may have applied either during the PAL effective period or prior to the PAL effective period except for those emission limitations that had been established pursuant

to 20.2.79.109 NMAC, but were eliminated by the PAL in accordance with the provisions in Subparagraph (c) of Paragraph (3) of Subsection A of this section. 

### J. Renewal of a PAL. (1) The department shall follow the procedures specified in Subsection E of this section in approving any request to renew a PAL for a major stationary source, and shall provide both the proposed PAL level and a

Proposed Revisions to 20.2.79 NMAC 20written rationale for the proposed PAL level to the public for review and comment. During such public review, any
person may propose a PAL level for the source for consideration by the department. (2) Application deadline. A major stationary source owner or operator shall submit a timely application to the department to request renewal of a PAL. A timely application is one that is submitted at least 

### 6 months prior to, but not earlier than 18 months from, the date of permit expiration. This deadline for application submittal is to ensure that the permit will not expire before the permit is renewed. If the owner or operator of a major stationary source submits a complete application to renew the PAL within this time period, then the PAL shall continue to be effective until the revised permit with the renewed PAL is issued. (3) Application requirements. The application to renew a PAL permit shall contain the following information. (a) The information required in Paragraphs (1) through (3) of Subsection C of this section. 

### (b) A proposed PAL level. (c) The sum of the potential to emit of all emissions units under the PAL (with supporting documentation). 

### (d) Any other information the owner or operator wishes the department to consider in determining the appropriate level for renewing the PAL. (4) PAL adjustment. In determining whether and how to adjust the PAL, the department shall consider the options outlined in Subparagraph (a) of this paragraph. However, in no case may any such adjustment fail to comply with Subparagraph (b) of this paragraph. (a) If the emissions level calculated in accordance with Subsection 

### F of this section is equal to

or greater than 80 percent of the PAL level, the department may: (i) renew the PAL at the same level without considering the factors set forth in Item (ii) of this subparagraph; or (ii) set the PAL at a level that it determines to be more representative of the source's baseline actual emissions, or that it determines to be appropriate considering air quality needs, advances in control technology, anticipated economic growth in the area, desire to reward or encourage the source's voluntary emissions reductions, or other factors as specifically identified by the department in its written rationale. (b) Notwithstanding Subparagraph (a) of this paragraph: 

### (i) if the potential to emit of the major stationary source is less than the PAL, the department shall adjust the PAL to a level no greater than the potential to emit of the source; and (ii) the department shall not approve a renewed PAL level higher than the current PAL, unless the major stationary source has complied with the provisions of Subsection K of this section (increasing a PAL). i (5) If the'compliance date for a New Mexico or federal requirement that applies to the PAL source occurs during the PAL effective period, and if the department has not already adjusted for such requirement, the PAL shall be adjusted at the time of PAL permit renewal or title V permit renewal, whichever occurs first. K. Increasing a PAL during the PAL effective period. 

### (1) The department may increase a PAL emission limitation only if the major stationary source complies with the following provisions. (a) The owner or operator of the major stationary source shall submit a complete application to request an increase in the PAL limit for a PAL major modification. Such application shall identify the emissions unit(s) contributing to the increase in emissions so as to cause the major stationary source's emissions to equal or exceed its PAL. 

### (b) As part of this application, the major stationary source owner or operator shall demonstrate that the sum of the baseline actual emissions of the small emissions units, plus the sum of the baseline actual emissions of the significant and major emissions units assuming application of BACT equivalent controls, plus the sum of the allowable emissions of the new or modified emissions unit(s) exceeds the PAL. The level of control that would result from BACT equivalent controls on each significant or major emissions unit shall be determined by conducting a new BACT analysis at the time the application is submitted, unless the emissions unit is currently required to comply with a BACT or LAER requirement that was established within the preceding 10 years. In such a case, the assumed control level for that emissions unit shall be equal to the level of BACT or LAER with which that emissions unit must currently comply. (c) The owner or operator shall obtain a major new source review permit for all emissions unit(s) identified in Subparagraph (a) of Paragraph (I) of Subsection 

### K of this section, regardless of the magnitude of the emissions increase resulting from them (that is, no significant levels apply). These emissions unit(s) shall

Proposed Revisions to 20.2.79 NMAC 2 1comply with any emissions requirements resulting from the nonattainment major NSR program process (for example, LAER), even though they have also become subject to the PAL or continue to be subject to the PAL. (d) The PAL permit shall require that the increased PAL level shall be effective on the day any emissions unit that is part of the PAL major modification becomes operational and begins to emit the PAL pollutant. (2) The department shall calculate the new PAL as the sum of the allowable emissions for each modified or new emissions unit, plus the sum of the baseline actual emissions of the significant and major emissions units (assuming application of BACT equivalent controls as determined in accordance with Subparagraph (b) of Paragraph (I) of Subsection 

### K of this section), plus the sum of the baseline actual emissions of the small emissions units. (3) The PAL permit shall be revised to reflect the increased PAL level pursuant to the public notice requirements of Subsection E of this section. 

### L. Monitoring requirements for PALS. (1) General Requirements. (a) Each PAL permit must contain enforceable requirements for the monitoring system that accurately determines plantwide emissions of the PAL pollutant in terms of mass per unit of time. Any monitoring system authorized for use in the PAL permit must be based on sound science and meet generally acceptable scientific procedures for data quality and manipulation. Additionally, the information generated by such system must meet minimum legal requirements for admissibility in a judicial proceeding to enforce the PAL permit. (b) The PAL monitoring system must employ one or more of the four general monitoring approaches meeting the minimum requirements set forth in Subparagraphs (a) through (d) of Paragraph (2) of this subsection and must be approved by the department. 

### (c) Notwithstanding Subparagraph (b) of this paragraph, the owner or operator may also employ an alternative monitoring approach that meets Subparagraph (a) of this paragraph if approved by the department. (d) Failure to use a monitoring system that meets the requirements of this section renders the PAL invalid. (2) The following are acceptable general monitoring approaches when conducted in accordance with the minimum requirements in Paragraphs (3) through (9) of this subsection: (a) mass balance calculations for activities using coatings or solvents; (b) CEMS; 

### (c) CPMS or PEMS; and (d) emission factors. (3) Mass balance calculations. An owner or operator using mass balance calculations to monitor PAL pollutant emissions from activities using coating or solvents shall meet the following requirements: (a) provide a demonstrated means of validating the published content of the PAL pollutant that is contained in or created by all materials used in or at the emissions unit; (b) assume that the emissions unit emits all of the PAL pollutant that is contained in or created by any raw material or fuel used in or at the emissions unit, if it cannot otherwise be accounted for in the process; and 

### (c) where the vendor of a material or fuel, which is used in or at the emissions unit, publishes a range of pollutant content from such material, the owner or operator must use the highest value of the range to calculate the PAL pollutant emissions unless the department determines there is site-specific data or a site-specific monitoring program to support another content within the range. (4) CEMS. An owner or operator using CEMS to monitor PAL pollutant emissions shall meet the following requirements: 

### (a) CEMS must comply with applicable performance specifications found in 40 CFR part 

### 60, appendix 

### B; and (b) CEMS must sample, analyze and record data at least every 15 minutes while the emissions unit is operating. (5) CPMS or PEMS. An owner or operator using CPMS or PEMS to monitor PAL pollutant emissions shall meet the following requirements: (a) the CPMS or the PEMS must be based on current site-specific data demonstrating a correlation between the monitored parameter(s) and the PAL pollutant emissions across the range of operation of the emissions unit; and (b) each CPMS or PEMS must sample, analyze, and record data at least every 15 minutes, or at another less frequent interval approved by the department, while the emissions unit is operating.

Proposed Revisions to 20.2.79 NMAC 22(6) Emission factors. An owner or operator using emission factors to monitor PAL pollutant emissions shall meet the following requirements: (a) all emission factors shall be adjusted, if appropriate, to account for the degree of uncertainty or limitations in the factors' development; (b) the emissions unit shall operate within the designated range of use for the emission factor, if applicable; and (c) if technically practicable, the owner or operator of a significant emissions unit that relies on

an emission factor to calculate PAL pollutant emissions shall conduct validation testing to determine a site-specific emission factor within 6 months of PAL permit issuance, unless the department determines that testing is not required. 

### (7) A source owner or operator must record and report maximum potential emissions without considering enforceable emission limitations or operational restrictions for an emissions unit during any period of time that there is no monitoring data, unless another method for determining emissions during such periods is specified in the PAL permit. (8) Notwithstanding the requirements in Paragraphs (3) through (7) of this subsection, where an

owner or operator of an emissions unit cannot demonstrate a correlation between the monitored parameter(s) and the PAL pollutant emissions rate at all operating points of the emissions unit, the department shall, at the time of pennit issuance: (a) establish default value(s) for determining compliance with the PAL based on the highest potential emissions reasonably estimated at such operating point(s); or 

### (b) determine that operation of the emissions unit during operating conditions when there is no correlation between monitored parameter(s) and the PAL pollutant emissions is a violation of the PAL. (9) Revalidation. All data used to establish the PAL pollutant must be revalidated through performance testing or other scientifically valid means approved by the department. Such testing must occur at least
once every 

### 5 years after issuance of the PAL. 

### M. Recordkeeping requirements. (1) The PAL permit shall require an owner or operator to retain a copy of all records necessary to determine compliance with any requirement of this section and of the PAL, including a determination of each emissions unit's 12-month roiling total emissions, for 

### 5 years from the date of such record. (2) The PAL permit shall require an owner or operator to retain a copy of the following records for the duration of the PAL effective period plus 5 years: (a) a copy of the PAL permit application and any applications for revisions to the PAL; and 

### (b) each annual certification of compliance pursuant to title V and the data relied on in certifying the compliance. N. Reporting and notification requirements. The owner or operator shall submit semi-annual monitoring reports and prompt deviation reports to the department in accordance with the requirements of 20.2.70 NMAC. The reports shall meet the following requirements. 

### (1) Semi-Annual Report. The semi-annual report shall be submitted to the department within 30 days of the end of each reporting period. This report shall contain the following information. (a) The identification of owner and operator and the permit number. (b) Total annual emissions (tonsfyear) based on a 12-month rolling total for each month in the reporting period recorded pursuant to Paragraph (1) of Subsection M of this section. (c) All data relied upon, including, but not limited to, any quality assurance or quality control data, in calculating the monthly and annual PAL pollutant emissions. (d) A list of any emissions units modified or added to the major stationary source during the preceding 6-month period. (e) The number, duration, and cause of any deviations or monitoring malfunctions (other than the time associated with zero and span calibration checks), and any corrective action taken. (f) A notification of a shutdown of any monitoring system, whether the shutdown was permanent or temporary, the reason for the shutdown, the anticipated date that the monitoring system will be fully operational or replaced with another monitoring system, and whether the emissions unit monitored by the monitoring system continued to operate, and the calculation of the emissions of the pollutant or the number determined by method included in the permit, as provided by Paragraph 

### (7) of Subsection L of this section. (g) A signed statement by the responsible official (as defined by the applicable title V operating permit program) certifying the truth, accuracy, and completeness of the information provided in the report.

Proposed Revisions to 20.2.79 NMAC(2) Deviation report. The major stationary source owner or operator shall promptly submit reports of
any deviations or exceedance of the PAL requirements, including periods where no monitoring is available. A report submitted pursuant to 40 CFR 70.6(a)(3)(iii)(B) shall satisfy this reporting requirement. The deviation reports shall be submitted within the time limits prescribed by the applicable program implementing 40 CFR 70.6(a)(3)(iii)(B). The reports shall contain the following information: (a) the identification of owner and operator and the permit number; 

### (b) the PAL requirement that experienced the deviation or that was exceeded; (c) emissions resulting from the deviation or the exceedance; and (d) a signed statement by the responsible official (as defined by the applicable title V operating permit program) certifying the truth, accuracy, and completeness of the information provided in the report. (3) Revalidation results. The owner or operator shall submit to the department the results of any revalidation test or method within 3 months after completion of such test or method. 

### 0. Transition requirements. (1) The department shall not issue a PAL that does not comply with the requirements of this section after the administrator has approved these regulations. (2) The department may supersede any PAL which was established prior to the date of approval of this part by the administrator with a PAL that complies with the requirements of this section. [20.2.79.120 NMAC - N, 1/22/06]

HISTORY OF 20.2.79 NMAC: Pre-NMAC History: The material in this part was derived from that previously filed with the commission of public records-state records center and archives: EIBIAQCR 709, Air Quality Control Regulation 709 

### - Permits 

### - Nonattainment Areas, 07/26/85; EIBJAQCR 709, Air Quality Control Regulation 709 

### - Permits 

### - Nonattainment Areas, 07/16/86; EIBJAQCR 709, Air Quality Control Regulation 709 

### - Permits 

### - Nonattainment Areas, 08/01/88; EIBJAQCR 709, Air Quality Control Regulation 709 

### - Permits 

### - Nonattainment Areas, 05/29/90; EIBJAQCR 709, Air Quality Control Regulation 709 

### - Permits 

### - Nonattainment Areas, 06/25/92.

History of Repealed Material: [RESERVED]

Other History: EIBJAQCR 709, Air Quality Control Regulation 709 

### - Permits 

### - Nonattainment Areas, filed 06/25/92 was renumbered into first version of the New Mexico Administrative Code as 20 NMAC 2.79, Permits 

### - Nonattainment Areas, filed 10/30/95. 20 NMAC 2.79, Permits 

### - Nonattainment Areas, filed 10/30/95 was renumbered, reformatted and replaced by 20.2.79 NMAC, Permits 

### - Nonattainment Areas, effective 1013 1/02.

Proposed Revisions to 20.2.79 NMAC

### Wednesday, April 25, 2007



# Part I1



# Environmental Protection 

# Agency

40 CFR Part 

### 51
Clean 

### Air Fie Particle Implementation Rule; Fiaal 

### Rule Agency Information Collection Activities: Proposed Collection; Comment RequesfPh'f2.5 Ozone National Ambient Air Quality Standard Implementation Rule; EPA ICR No. 2258.01; 

### Notice



## NMED 

# - 5 (April 25,2007 Federal Register) NOTE: This Federal Register is available in at least two Federal Government web sites including the Regulations,.gov web site at 

## http://www.regulations.gov in docket EPA-HQ-OAR-2003-0062, document 

## EPA-HQ-OAR-2003-0062-0170

The Federal Register is also available at the Federal Government Printing Office (GPO) Access web site at 

## http://www.gpoaccess.gov/multidb.html and may be available at other Federal Government web sites.

### Tuesday,

November 29, 2005



## EXHIBIT



# Part I1



# Environmental Protection 

# Agency

40 CFR Parts 

### 51, 52, and 80 

### Final Rule 

### To Implement the 8-Hour 

### Ozone National Ambient 

### Air 

### Quality Standard. 

### Final Rule



## NMED 

# - 6 (November 29,2005 Federal Register) NOTE: This Federal Register is available in at least two Federal Government web sites including the Regulations.gov web site at 

## http://www.regulations.gov in docket EPA-HQ-OAR-2003-0079, document 

## EPA-HQ-OAR-2003-0079-0993

The Federal Register is also available at the Federal Government Printing Office (GPO) Access web site at 

## http://www.gpoaccess.gov/multidb.html and may be available at other Federal Government web sites.

# New Mexico Commission of 

# Public Records 

# Administrative Law 

# Division
1205 Cainino Carlos 

## Rey Santa 

## Fe, 

## NM 87507 505-476-7907 

# Affidavit of Pnblicatiolsa 

# in the 

# New Mexico Register

I, John Mai-tinez



### , certif!y that the agency noted below has published legal notices or rules in the New Mexico Register, and that payment has been assessed 

### by invoice for said legal notice

or publication, which appeared on the date and in the volume and issue nunlber noted below.

Date of Publication: 

### 413012009

Volume: 

### XX Issue # : 

### S



### Invoice # : 

### NA/fl-2009- -775

Amount: 

### $33.00

Description: Agency: 

### ELB 

### - Air Qua1 Contact: Gail Cooke 1301 Siles 

### RD Bldg 

### B Santa Fe, NM S7507-

Notice Notice of Rulemaking



### State of New 

### Mexico, County of 

### Santa Fe Signed and affir~ned before me on Monday, May 04,2009 by 

### John Mai-tinez 

## Notary Public: Bridgett Wood 

## 1

I



### Date: 

### 5/4/2009

(seal) 

# u -Copies ojlhepzlblished material doczone17tedin this nj,iclm)i/ nre s17closedForm SRC-2002-04 Revised July 2007

### New Mexico Register / 

### Volume 

### XX, Number 

### 8 / 

### A~ril30.2009 423 

# Notices 

# of Rulemaking 

# and Proposed 

# Rules

NEW MEXICO ENVIRONMENTAL IMPROVEMENT BOARD should contact ludy Bentley by June 22, 2009 at the NMED, Personnel Services Bureau, P.O. Box 261 10, 1190 St. Francis Drive, Santa Fe, New Mexico, 87502, telephone 505-827-9872. TDY users please

access her number via the New Mexico Relay Network at 1-800-659-8331. Act, Section 74-1-9 NMSA 1978, the Air Quality Control Act Section, 74-2-6 NMSA 1978, and other applicable procedures.

NEW MEXICO ENVIRONMENTAL IMPROVEMENT BOARD NOTICE OF RULEMAICINGI-IEARING


## rile jqew Mesico Environnlenta1 ~nlprovement Board ("Boardw) will hold a public hearing on July 7, 2009 at 8:00 a.m. in Room 317 at the State Capital in Santa Fe, New Mexico. TIle purpose of hearing is to consider the matter of EIB 09-04 (R), proposed revisions to Air Quality Control Regulations 20.2.2 New Mexico Administrative Code (NMAC) (Definitions); 20.2.74 NMAC (PermitsPrevention of Signilicant Deterioration) and 20.2.79 NMAC (Permits- Nonattainlnent Areas).

The proponent of this regulatory adoption and revision is the New Mexico Environment Department ("NMED").

The purpose of the public hearing is to consider and take possible action on a petition fro111 NMED regarding proposed revisions to 20.2.2 NMAC 

## - Defitlifions; 20.2.74 

### - perIllits 

### - ion of ~i~~~~~~~,~~ ~~~~,.i~~~~;~~,. flt7d20.2.79 

### - perr12;fs 

### - No~latfait~trrerif Areas to comply with Implementation Rules adopted by the U.S. Environmental Protection Agency (EPA) for the &hour ozone and particulate matter 2.5 microns in size and less (PM2.5) National Ambient Air Quality Standards (NAAQS). Under Section 110(A)(2) of the Clean Air Act, states are required to update

state implementation plans upon the promulgation of a new or revised NAAQS. The NMED will host an infomlational open house on the proposed revisions to 20.2.2

, 20.2.74, and 20.2.79 NMAC at the NMED Air Quality Bureau Office, 1301 Siler Rd, Building B, Santa Fe, New Mexico 87507, from 2:00p,m.-6:00p.m. on May 21, 2009.

The proposed revised regulations may be reviewed during regular business hours at the NMED Air Quality Bureau office, 1301 Siler Road, Building B, Santa Fe, New Mexico. Full text of NMED's proposed revised regulations are available on NMED's web site at www.nmenv.state.nm.us, or by contacting Gail Cooke at (505) 476-43 1 g or gail.cooke@state.nn~.us.

The hearing will be conducted in accordance with 20.1.1 NMAC (Ruleniaking Procedures 

### - Environmental Inlprovement Board), the Environmental Inlprovenlent The Board may make a decision on the proposed revised regulations at the conclusion of the hearing, or the Board may convene a meeting at a later date to consider action on the proposal.



### NEW MEXICO ENVIRONMENTAL IMPROVEMENT BOARD All interested persons will be given reasonable opportunity at the hearing Lo submit relevant evidence, data, views and arguments, orally or in writing, to introduce exhibits, and to examine witnesses. Persons wishing to present technical testimony must file wit11 the Board a written notice of intent

to do so. The notice of intent shall:

(1) identify the person f0l whom the witness(es) will testify; (2) identify each Lechnical witness that the person intends to present and state the qualifications of the witness, including a description of their education and work background; (3) su1"l"arize or include a copy of the direct testimony of each technical witness and state the anticipated duration of the testimony of that witness; (4) list and describe, or attach, each eshibit anticipated to be offered by that person at the hearing; and (5) attach the text of any recommended m~dificalions to the proposed new and revised regulations.

Notices of intent for the hearing must be received in the Office of the Board not later than 5:00 PIn on June 22, 2009, and should reference the docket number, EIB 09-04 (R), and the date of the Ilearing. Notices of intent to present technical teslimony should be ~ubnlitted to:

Joyce Medina, Board Administrator Ofice of the Environmental Improvement Board Harold Runnels Building 1190 St. Francis Dr., Room N-2 150 1 2 153 Santa Fe, NM 87502 Phone: (505) 827-2425, Fax (505) 827- 2836

Any member of the general public may testify at the hearing. No prior notification is required to present non-techni~al teslimony

at the hearing. Any such member may also offer exhibits in ~0nnCction wit11 his testimony, SO long as the exhibit is not unduly repetitious of the testimony.

A member of the general public who wishes to submit a written statement for the record, in lieu of providing oral testimony at the hearing, shall file the written statement prior to the hearing, or submit it at the hearing.

Persons having a disability and needing help in being a part of this hearing process NEW MEXICO ENVIRONMENTAL IMPROVEMENT BOARD NOTICE OF PUBLIC MEETING AND RULEMAKING HEARING

The New Mexico Environmental Improven~ent Board ("Board") will hold a public hearing on the July 7, 2009 at 8:00

a.m. at the State Capitol Building, Room 3 17, 490 Old Santa Fe Trail, Santa Fe NM 87501. The purpose of the hearing is to consider the matter of EIB 09-03 (R) proposed revisions to Air Quality Control Regulations 20.2.77 NMAC (New Source Performance Standards), 20.2.78 NMAC (Emission Standards for Hazardous, Air Pollutants) and 20.2.82 NMAC (Maximum Achievable Control Technology Standards for Source Categories of Hazardous Air Pollutants).

The proponent of this regulatory adoption and revision is the New Mexico Environment Department ("NMED").

NMED proposes to revise 20.2.77 NMAC to incorporate by reference federal New Source Perfomlance Standards. 20.2.78 NMAC to incorporate by reference federal National Eniission Standards for Hazardous Air Pollutants. NMED proposes to revise 20.2.82 NMAC to incorporate by reference federal Maximum Achievable Control Technology Standards for Source Categories.

The proposed revised regulations may be reviewed during regular business hours at the NMED Air Quality Bureau office, 1301 Siler Rd. building B, Santa Fe, New Mexico 87507. Full text of NMED's proposed revised regulations are available on NMED's web site at www.nmenv.state.nm us, or by contacting Adam Keaster at (505) 476-5559 or

## STATE OF 

## NEW MEXICO County 

### of Bernalillo SS

Bill Tafoya, being duly sworn, declares and says that he is Classified Advertising Manager of The Albuquerque Journal, and that this newspaper is duly qualified to publish legal notices or advertisements within the meaning of

Section 3, Chapter 167, Session Laws of 1937, and that payment therefore has

been made of assessed as court cost; that the notice, copy of which is hereto attached, was published in said paper in the regular daily e ition for being on the 

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ACCOUNT NUMBER

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## EXHIBIT

STATE OF NEW MEXICO 

# [GI

BEFORE THE ENVIRONMENTAL IMPROVEMENT BOARD

In the Matter of Proposed Amendments to 20.2.2 NMAC - 

### Definitions; 20.2.74 NMAC - 

### Permits
- 

### Prevention of Significant Deterioration; 20.2.79 NMAC - 

### Permits
- 

### Nonattainment Areas. EIB 09-04(R)

NEW MEXICO ENVIRONMENT DEPARTMENT

Petitioner,



## NMED'S PROPOSED ORDER AND STATEMENT OF REASONS

FOR AMENDMENT OF REGULATIONS

This matter comes before the New Mexico Environmental Improvement Board ("Board")

upon a petition filed by the Air Quality Bureau ("Bureau") of the New Mexico Environment

Department ("NMED" or "Petitioner"), proposing amendments to 20.2.2 NMAC, 20.2.74

NMAC, and 20.2.79 NMAC. A public hearing was held in Santa Fe, New Mexico on July 7,

2009, with a quorum of the Board present during the hearing. The Board heard technical

testimony from Petitioner and admitted exhibits into the record. On the same day, the Board

deliberated and voted to adopt the proposed amendments for the reasons that follow:



## I. AMENDMENTS

1. The proposed amendments to 20.2.2,20.2.74, and 20.2.79 MAC were adopted by the

Board at its July 7, 2009 public hearing.



## 11. STATEMENT OF REASONS

2. NMED filed its petition for Public Hearing with the Board on March 19,2009. 

## See

NMED Petition.

EIB 09-04 

## (R)
- 

### Statement of Reasons Page 1 of 

### 3

### Notice of Hearing was published in the Albuquerque Journal on May 4,2009 in English

and Spanish. 

## See NMED Exhibit 7.

Notice of Hearing was published in the New Mexico Register on April 30, 2009. 

# See

NMED Exhibit 7.

NMED filed a Notice of Intent to Present Technical Testimony on June 19,2009. 

# See

NMED Notice of Intent to Present Technical Testimony.

A hearing was convened in this matter on July 7 in Santa Fe, New Mexico.

NMED presented technical evidence related to the proposed amendments to the relevant

Parts of the Air Quality Management Regulations through the oral testimony of Gail

Cooke
- 

### Air Quality Bureau Environmental Analyst and Planner. NMED Exhibit 1.

Ms. Cooke also provided written testimony to the Board in support of the proposed

amendments. NMED Exhibit 2.

Ms. Cooke testified that the proposed regulatory changes are in response to requirements

under the federal Clean Air Act (CAA) Section 1 1 O(a), which requires updates to State

Implementation Plans (SIPS) within three years of the U.S. EPA's promulgation of a

National Ambient Air Quality Standard (NAAQS). &NMED Exhibit 2 at

. 

### p2.

Ms. Cooke testified that revisions to 20.2.2 NMAC, Definitions, are necessary in order to

provide definitions related to the new NAAQS for fine particulate matter (PM2.5).

Id. at p2. -



### Ms. Cooke further testified that revisions to 20.2.74 NMAC are necessary in order to add

nitrogen oxides as a precursor to ozone under the State's Prevention of Significant

Deterioration program. 

# a. at. p2.

EIB 09-04 (R)
- 

### Statement of Reasons Page 2 of 

### 3

### 1 1. Ms. Cooke also testified that revisions to 20.2.79 NMAC are necessary to incorporate

major stationary source thresholds, significant emission rates, and offset ratios pursuant

to part 

## D of title 

## I of the CAA, as amended in 1990, for the 8-hour ozone NAAQS, the

carbon monoxide NAAQS, and particulate matter 10 microns in size and less (PMIO)

NAAQS. 

# Id.

12. Pursuant to 20.1.300.A NMAC, any person may petition the Board for amendment of

regulations within the jurisdiction of the Board.

13. The Board has the authority to approve these proposed amendments pursuant to NMSA

1978 Section 74-2-5.B.

14. The proposed amendments satisfy all applicable procedural requirements.

15. The proposed amendments satisfy the statutory requirements of the Air Quality Control

Act, NMSA 1978, Section 74-2-5.E.

24. The proposed amendments are adopted for any or all of the reasons stated above.

111. 

## ORDER

By majority vote of a quorum of the Board members, the proposed amendments were

approved by the Board on July 7, 2009. The proposed amendments are to be set forth in 20.2.2

NMAC, 20.2.74 NMAC, and 20.2.79 NMAC with any appropriate corrections of typographical

errors, formatting, or other changes necessary to file these regulations with the New Mexico

State Records Center. The regulations described in this Order are hereby adopted, to be effective

30 days after filing with the State Records Center.

Dated:

On Behalf of the Board

EIB 09-04 (R) - 

### Statement of Reasons Page 3 of 3

### 1

1 STATE OF NEW MEXICO
ENVIRONMENTAL IMPROVEMENT BOARD 2

3 No. EIB 09-04(R)

4 IN THE MATTER OF PROPOSED AMENDMENTS TO: 20.2.2 NMAC - DEFINITIONS 5 20.2.74 NMAC - PERMITS - PREVENTION OF SIGNIFICANT
DETERIORATION 6 20.2.79 NMAC - PERMITS - NONATTAINMENT AREAS

7

8

9

10

11

12 TRANSCRIPT OF PROCEEDINGS

13

14 BE IT REMEMBERED that on the 7th day of July,

15 2009, the above-entitled matter came on for hearing

16 before the New Mexico Environmental Improvement Board,

17 taken at the State Capitol Building, Room 317, 490 Old

18 Santa Fe Trail, Santa Fe, New Mexico, at the hour of

19 11:05 a.m.

20

21

22

23

24

25

KATHY TOWNSEND COURT REPORTERS

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1 A P P E A R A N C E S

2

3 For the Environmental Improvement Board:

4 GAY DILLINGHAM GREGORY GREEN, Chair 5 SOREN PETERS
HAROLD TSO 6

ADRIAN TERRY 7 Assistant Attorney General Civil Division 8 Office of the Attorney General Post Office Drawer 1508 9 Santa Fe, New Mexico 87504-1508 (505) 827-6040 10 aterry@nmag.gov

11 For the New Mexico Environment Department:

12 BILL GRANTHAM Assistant General Counsel 13 Office of General Counsel New Mexico Environment Department 14 1190 St. Francis Drive Santa Fe, New Mexico 87505 15 (505) 827-2824 Bill.grantham@state.nm.us 16

17

18

19

20

21

22

23

24

25

KATHY TOWNSEND COURT REPORTERS

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### 3

1 I N D E X

2 PAGE

3 WITNESSES:

4 GAIL COOKE

5 Direct Examination by Mr. Grantham 6

6 Examination by the Board 16

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

KATHY TOWNSEND COURT REPORTERS

### 110 Twelfth Street, Northwest, Albuquerque, New Mexico 87102 (505) 243-5018 - Fax (505) 243-3606

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1 E X H I B I T S

2 MARKED/ADMITTED

3 NMED:

4 1. Written Testimony of Gail Cooke 15

5 2. Proposed rule changes to 20.2.2 NMAC 15

6 3. Proposed rule changes to 20.2.74 NMAC 15

7 4. Proposed rule changes to 20.2.79 NMAC 15

8 5. April 25, 2007, Federal Register

9 notice, PM2.5 Implementation Rule

10 (Submitted electronically only) 15

11 6. November 29, 2005, Federal Register

12 notice, 8 Hour Ozone Implementation

13 Rule 15

14 7. Notice of public meeting and hearing 15

15

16

17

18

19

20

21

22

23

24

25

KATHY TOWNSEND COURT REPORTERS

### 110 Twelfth Street, Northwest, Albuquerque, New Mexico 87102 (505) 243-5018 - Fax (505) 243-3606

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1 MR. PETERS: Carrying on with another hearing,

2 this is a hearing in EIB Number 09-04(R) to consider

3 proposed amendments to 20.2.2, 20.2.74, 20.2.79 NMAC,

4 Permits - Prevention of Significant Deterioration and

5 Permits - Nonattainment Areas.

6 I am Soren Peters, I am the EIB member who is

7 designated as Hearing Officer in this matter.

8 For the record, the time is now 11:05, we are

9 in the Capitol, Room 317, Santa Fe, July 7th, 2009.

10 We are here to consider the petition for

11 rule-making submitted by the Air Quality Bureau in the

12 New Mexico Environment Department.

13 This hearing will be conducted in accordance

14 with the Board's rule-making procedures. This hearing

15 will be conducted in a fair and impartial manner, et

16 cetera, et cetera.

17 Mr. Grantham, do you have any opening

18 statements?

19 MR. GRANTHAM: Thank you, Mr. Hearing Officer,

20 members of the Board.

21 My name is Bill Grantham, again for the

22 record, and I'm an attorney for the Environment

23 Department.

24 With me here today is Gail Cooke of the Air

25 Quality Bureau. She will provide testimony in support

KATHY TOWNSEND COURT REPORTERS

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### 6

1 of amendments to these three parts of the NMAC.

2 And as Ms. Cooke will testify, when EPA

3 revises the National Ambient Air Quality Standards,

4 states are required to submit revisions to their state

5 implementation plans, and the changes proposed today are

6 in response to recent revisions to the National Air --

7 National Ambient Air Quality Standards for PM2.5 and

8 ozone.

9 And without further ado, I would like to have

10 Ms. Cooke sworn in and provide testimony.

11 GAIL COOKE

12 having been first duly sworn or affirmed, was

13 examined and testified as follows:

14 DIRECT EXAMINATION

15 BY MR. GRANTHAM:

16 Q. Please state your name for the record.

17 A. My name is Gail Cooke.

18 Q. And, Ms. Cooke, where do you work?

19 A. I work for the New Mexico Environment

20 Department Air Quality Bureau.

21 Q. And what do you do for the Bureau?

22 A. I develop and review state implementation

23 plans and community initiative projects and develop

24 regulatory and conduct -- sorry -- I develop regulatory

25 language and conduct public outreach.

KATHY TOWNSEND COURT REPORTERS

### 110 Twelfth Street, Northwest, Albuquerque, New Mexico 87102 (505) 243-5018 - Fax (505) 243-3606

### 7

1 Q. And how long have you been in your current

2 position?

3 A. I've been there for 10 years.

4 Q. And can you briefly describe your educational

5 background?

6 A. Yes. I have a master -- or -- I'm sorry. I

7 have a bachelor degree in environmental design from

8 Texas A&M, and I have a master degree in urban and

9 regional planning with emphasis in environmental

10 planning from Virginia Tech.

11 Q. And can you describe the purpose of your

12 testimony today?

13 A. Yes, I can.

14 Chairman and members of the Board, I'm here to

15 present the New Mexico Environment Department's proposed

16 amendments to 20.2.2 NMAC, Definitions; 20.2.74 NMAC,

17 Permits - Prevention of Significant Deterioration; and

18 20.2.79 NMAC, Permits - Nonattainment Areas.

19 NMED's Exhibits 2 through 4 reflects the

20 Department's proposed amendments in current NMAC format.

21 The proposed amendments are shown in standard

22 legislative format. New material is underlined, and

23 deleted material is stricken or designated as stricken.

24 20.2.2 NMAC, which is Exhibit 2, is

25 hereinafter referred to as Part 2; 20.2.74 NMAC,

KATHY TOWNSEND COURT REPORTERS

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1 Exhibit 3, as Part 74; and 20.2.79 NMAC, which is

2 Exhibit 4, as Part 79.

3 MR. GREEN: Mr. Hearing Officer?

4 MR. PETERS: Yes, sir.

5 MR. GREEN: Can we take a short recess?

6 We all seem to be having trouble getting our

7 link to come up.

8 MS. COOKE: Oh, okay.

9 MR. PETERS: What do you propose? Five or ten

10 minutes or --

11 MR. GREEN: Just -- if that's all right?

12 MR. PETERS: Yes. That's okay.

13 (Proceedings in recess from 11:10 a.m. to

14 11:14 a.m.)

15 MR. PETERS: Back on the record.

16 MS. COOKE: Okay. Let me get situated again.

17 MR. GREEN: Thank you.

18 Q. (BY MR. GRANTHAM) Ms. Cooke, when we took a

19 brief recess, you were discussing that there were

20 exhibits, Exhibits NMED 2, 3 and 4, which are the texts

21 of proposed revisions to Part 2, Part 74 and Part 79.

22 Are those complete copies of proposed

23 amendments?

24 A. Yes, they are.

25 Q. And, Ms. Cooke, did you prefile a summary of

KATHY TOWNSEND COURT REPORTERS

### 110 Twelfth Street, Northwest, Albuquerque, New Mexico 87102 (505) 243-5018 - Fax (505) 243-3606

### 9

1 your technical testimony, providing detailed information

2 on those amendments?

3 A. Yes, I did.

4 Q. And is that included in the notice of intent

5 as NMED Exhibit 1?

6 A. Yes. Yes, it is.

7 Q. Can you just describe why the Department is

8 proposing to revise these three regulations?

9 A. NMED is proposing revisions to Parts 2, 74 and

10 79 to comply with implementation rules adopted by the US

11 Environmental Protection Agency for the National Ambient

12 Air Quality Standards for eight-hour ozone and for

13 particulate matter 25 microns in size or less, or what

14 is referred to as PM2.5.

15 Under Section 110(a) of the federal Clean Air

16 Act, states are required to update state implementation

17 plans upon the promulgation of a new or revised National

18 Ambient Air Quality Standard within three years of that

19 promulgation.

20 Q. Can you describe the proposed amendments to

21 each of those parts?

22 A. Yes, I can.

23 The proposed revisions to Part 2 are in

24 response to the new PM2.5 National Ambient Air Quality

25 Standard implementation rule promulgated by EPA in April

KATHY TOWNSEND COURT REPORTERS

### 110 Twelfth Street, Northwest, Albuquerque, New Mexico 87102 (505) 243-5018 - Fax (505) 243-3606

### 10

1 of 2007.

2 This is Exhibit 5.

3 The new -- the PM2.5 National Ambient Air

4 Quality Standard promulgated by EPA is a new standard

5 that has not been included in New Mexico's State

6 Implementation Plan and needs to be defined for

7 regulatory purposes.

8 The implementation rule for the new PM2.5

9 standard requires definitions for PM2.5 and PM2.5

10 emissions be included in the definitions section of the

11 state's air quality regulations.

12 The proposed revisions to Part 74 are in

13 response to the eight-hour ozone National Ambient Air

14 Quality Standard -- or Standard implementation rule --

15 excuse me -- promulgated by EPA in November of 2005.

16 This is Exhibit 6.

17 Included with this rule are revisions to the

18 federal Prevention of Significant Deterioration rule in

19 order to include nitrogen oxides as an ozone precursor.

20 Specifically, EPA amended the definitions of major

21 stationary source, major modification and regulated new

22 source review pollutant to include nitrogen oxide as an

23 ozone precursor.

24 The proposed revisions to Part 79 are also in

25 response to the eight-hour ozone National Ambient Air

KATHY TOWNSEND COURT REPORTERS

### 110 Twelfth Street, Northwest, Albuquerque, New Mexico 87102 (505) 243-5018 - Fax (505) 243-3606

### 11

1 Quality Standard implementation rule. Specifically, the

2 proposed revisions incorporate major source -- I'm

3 sorry -- the proposed revisions incorporate major

4 stationary source thresholds, significant emission rates

5 and offset ratios pursuant to Part D of Title I of the

6 Clean Air Act for the eight-hour ozone National Ambient

7 Air Quality Standard, the carbon monoxide National

8 Ambient Air Quality Standard, and particulate matter

9 10 microns in size and less National Ambient Air Quality

10 Standard.

11 EPA also changed the requirement for emission

12 reductions achieved from shutdowns or curtailments for

13 clarification purposes.

14 Table 1 in my written testimony outlined the

15 specific revisions for each of the NMAC rules.

16 Q. And who would be affected by the amendments to

17 this rule if they are adopted?

18 A. The revisions to Parts 2 and 74 will apply to

19 permitted sources statewide. The revisions to both

20 parts are relatively minor and should have a very

21 limited effect on sources in the state.

22 The revisions to Part 2 only establishes

23 definitions for the new PM2.5 National Ambient Air

24 Quality Standard. These definitions are needed for

25 future reference to the standard within the state

KATHY TOWNSEND COURT REPORTERS

### 110 Twelfth Street, Northwest, Albuquerque, New Mexico 87102 (505) 243-5018 - Fax (505) 243-3606

### 12

1 regulations.

2 The revisions to Part 74 presented today

3 update the state's Prevention of Significant

4 Deterioration program to include nitrogen oxides as an

5 ozone precursor in attainment and unclassifiable areas.

6 Nitrogen oxides and volatile organic compounds, or VOCs,

7 are the two main precursors in the formation and

8 transport of ozone.

9 The revisions to Part 79 are needed to update

10 this regulation to correspond with other air quality

11 laws, rules and regulations.

12 Part 79 only applies to areas that have been

13 found to be in violation of a federal -- a federal air

14 quality standard or what is referred to as a

15 nonattainment area. Therefore, revisions to Part 79

16 will affect only major permitted sources that are

17 located in nonattainment areas.

18 Presently there is only one nonattainment area

19 under the Department's jurisdiction in New Mexico. The

20 nonattainment area is located in Southern Dona Ana

21 County, in Anthony, New Mexico. Anthony was designated

22 nonattainment by EPA in 1991.

23 Today's proposed revisions to Part 79 will not

24 affect the nonattainment area in Anthony, New Mexico,

25 because this area is not nonattainment for ozone. This

KATHY TOWNSEND COURT REPORTERS

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### 13

1 area was originally designated nonattainment due to high

2 wind events, not emissions from permitted point sources.

3 The proposed revisions will affect any future

4 ozone nonattainment areas within the State of New

5 Mexico's jurisdiction.

6 Q. And what about small businesses? Will they be

7 affected by the amendments to the rule?

8 A. The proposed changes will not adversely affect

9 small businesses.

10 To the Department's knowledge, the only

11 facility potentially affected by the amendments is El

12 Paso Electric located in Sunland Park, New Mexico, and

13 an area for which the state has recommended

14 nonattainment status with respect to the new eight-hour

15 ozone standard. This facility is not a small business

16 as defined by the Small Business Regulatory Relief Act.

17 Moreover, if New Mexico were not to adopt

18 these revisions, EPA would be obliged to exercise its

19 oversight authority and issue a Federal Implementation

20 Plan for this rule.

21 Q. Did the Air Quality Bureau provide a public

22 comment period for these revisions?

23 A. Yes. Yes, we did.

24 Q. And can you explain when and how that was

25 conducted?

KATHY TOWNSEND COURT REPORTERS

### 110 Twelfth Street, Northwest, Albuquerque, New Mexico 87102 (505) 243-5018 - Fax (505) 243-3606

### 14

1 A. Out -- outreach was conducted for all three

2 regulations in the form of public notices, which is

3 Exhibit 7, and an open house.

4 Q. Did you receive any public comment through

5 that process?

6 A. No, we did not receive any public comment.

7 And I'd like -- also like to add that the

8 federal government also does an extensive public comment

9 period during their initial writing and review of these

10 rules.

11 Q. So are there facilities in New Mexico that are

12 currently subject to these rules?

13 A. Yes. Although states are required to adopt

14 federally promulgated rules, once the rules are adopted

15 by the federal government, they are -- they are

16 applicable to all states regardless if a state has

17 adopted these revisions or not.

18 The purposes for adoption of federally

19 promulgated rules and revisions on the state level are

20 to fulfill the requirements of the Clean Air Act and to

21 grant states the authority to oversee and enforce those

22 rules.

23 So although the proposed revisions to Parts 2,

24 74 and 79 have not been adopted on the state level,

25 affected sources have been subject to these revisions

KATHY TOWNSEND COURT REPORTERS

### 110 Twelfth Street, Northwest, Albuquerque, New Mexico 87102 (505) 243-5018 - Fax (505) 243-3606

### 15

1 since the promulgation of the federal -- since the

2 promulgation on a federal level. Excuse me.

3 Q. And what would happen if the proposed rules

4 amendments are not adopted by the Board?

5 A. A notice of deficiency by EPA. There's a

6 Federal Implementation -- Implementation Plan will be

7 put into effect, and primacy is at stake.

8 Also, not adopting the proposed regulation

9 revisions could create a hardship for businesses within

10 New Mexico due to the fact that EPA would now be -- be

11 responsible for these rules and EPA would not have

12 direct access to these businesses, thus causing

13 potential delays in permitting and enforcement actions.

14 Q. Based on your knowledge of the proposed

15 revisions and your expertise and experience in this

16 area, is it your opinion that these revisions should be

17 approved?

18 A. Yes, it is my opinion that they should be

19 approved.

20 MR. GRANTHAM: Mr. Hearing Officer, at this

21 time, I'd like to move for admission of NMED Exhibits 1

22 through 7.

23 MR. PETERS: So admit.

24 (Exhibits NMED 1 through 7 admitted into

25 evidence.)

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1 MR. GRANTHAM: Attached to the notice of

2 intent is also NMED Exhibit 8, which is our proposed

3 statement of reasons that's attached as an amendment

4 because that's what the rules specify. I'm not sure if

5 that's --

6 MR. PETERS: Thank you.

7 MR. GRANTHAM: -- appropriate to move for

8 admission, but I wanted to alert the Board to its

9 existence there, for possible use by the Board in

10 approving these regulations.

11 MR. PETERS: Thank you.

12 MR. GRANTHAM: I have no more questions for

13 the witness.

14 MR. PETERS: Any questions from the Board?

15 EXAMINATION

16 BY THE BOARD:

17 MR. PETERS: Is this a time sensitive issue

18 with the EPA?

19 MS. COOKE: Actually for the revisions for the

20 National Ambient Air Quality Standards for ozone, and

21 including NOx as a precursor, it is, because we're

22 actually beyond the three years, but we worked with EPA

23 on this, and they understand that we're going to be a

24 bit late. So we've already discussed this with them.

25 MR. PETERS: So we're in a bit of a grace

KATHY TOWNSEND COURT REPORTERS

### 110 Twelfth Street, Northwest, Albuquerque, New Mexico 87102 (505) 243-5018 - Fax (505) 243-3606

### 17

1 period with EPA.

2 MS. COOKE: Yes. We're fine right now.

3 MR. PETERS: Any questions on the subject from

4 the public?

5 Seeing none, any reason not to close the

6 record at this point?

7 I close the record and yield the floor to

8 Chairman Green.

9 (Proceedings adjourned at 11:24 a.m.)

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KATHY TOWNSEND COURT REPORTERS

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1 STATE OF NEW MEXICO )

2 ) ss.

3 COUNTY OF BERNALILLO )

4

5

6 I, CHERYL ARREGUIN, the officer before whom the

7 foregoing proceeding was taken, do hereby certify that

8 the witnesses whose testimony appears in the foregoing

9 transcript were duly sworn or affirmed; that I

10 personally recorded the testimony by machine shorthand;

11 that said transcript is a true record of the testimony

12 given by said witnesses; that I am neither attorney nor

13 counsel for, nor related to or employed by any of the

14 parties to the action in which this proceeding is taken,

15 and that I am not a relative or employee of any attorney

16 or counsel employed by the parties hereto or financially

17 interested in the action.

18

19
NOTARY PUBLIC 20 CCR License Number: 21 Expires: 12/31/09 21

22 My Commission Expires: 12/12/11

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KATHY TOWNSEND COURT REPORTERS

### 110 Twelfth Street, Northwest, Albuquerque, New Mexico 87102 (505) 243-5018 - Fax (505) 243-3606