I JUL 1 4 2010 I 

t%U.$dM 

REGULA IONS COMPILER 

ENERGY AND ENVIRONMENT CABINET 

Department for Environmental Protection 

Division for Air Quality 

(Amendment) 

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

RELATES TO: KRS 224.OI-Ol0, 224.4 0-1 00, 224.20-1 00, 224.20-1 10, 

224.20-120,40 C.F.R. Parts 50-53, 60-63. 70-78.42 U.S.C. 7401-7671q 

STATUTORY AUTHORITY: KRS 224.10-1 OO(5) 

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

cabinet [En\r;mnmant?l] to promulgate administrative 

regulations for the prevention, abatement, and control of air pollution. There is no 

federal mandate for this administrative regulation. This administrative regulation defines 

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

regulation are neither more stringent nor otherwise different than the corresponding 

federal definitions. 

Section 1. Definitions. (1) "Acid Rain Program" means the national program for 

reducing SO2 and NOx emissions established under 42 U.S.C. 7651 to 76510 (Title IV 

of the Act) and codified at 40 C.F.R. Parts 72 to 78. 

(2) "Act" means the Clean Air Act established under 42 U.S.C. 7401 to 7671q. 
(3) "Actual emissions" is defined by 40 C.F.R. 51 .I66(bM ). [- 

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

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

atmosphere. 

(5) "Affected source" means a source that includes one (1) or more affected units. 

(6) "Affected state" [sht&'] means a state [sbtes] that: 

(a) Borders [%a&+

Kentucky and whose air quality may be affected by the 

proposed permit, permit revision, or permit renewal; or 

(b) Is [Ate] situated within fifty (50) miles of the source requesting the proposed 

permit action. 

(7) "Affected unit" means a unit subject to the Acid Rain Program. 

(8) "Air contaminant" is defined & [kt] KRS 224.01-OlO(1). 

(9) "Air pollutant" means air contaminant. 

(1 0) "Air pollution" is defined & [kt] KRS 224.01-01 O(3). 

(1 1) "Air pollution control equipment" means a mechanism, device or contrivance 

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

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

to its normal operation. 

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

definition, "administrator" means both the U.S. EPA and the cabinet. [v 
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(13) "Ambient air" is defined bv 40 C.F.R. 50.l(e). [y cf the 

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

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

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

through the application of appropriate preventive or control measures. 

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

requirement or standard that applies to a source. 

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

asphalt by heating and drying the aggregate in a dryer before separating and mixing it 

with asphalt cement in separate batches. 

(1 7) "Cabinet" is defined bv KRS 224.01-01 O(9). [~RW?%KM.C~? Q?&] 

(18) "Capital expenditure" is defined b~ [kt] 40 C.F.R. 60.2. 

(19) "Commence" means that an owner or operator has undertaken a continuous 

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

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

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

reconstruction of an affected facility. 

(20) "Construction" means fabrication, erection, installation or modification of an air 

contaminant source. 
(21) "Continuous monitoring system" means the total equipment, required under the 

applicable administrative regulations in 401 KAR Chapters 50 to 65, used to sample, to 

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

process parameters. 

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

used to reduce, by destruction or removal, the amount of air pollutants in an air stream 

prior to discharge to the ambient air. 

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

control devices working in concert to reduce discharges of pollutants to the ambient air. 

(24) "Designated representative" means a person authorized by the owner or 

operator 1-1 of an affected source and of all affected units at the 

source, as evidenced by a certificate of representation submitted to the U.S. EPA in 

accordance with 40 C.F.R. 72.20(b), to represent and legally bind each owner and 

operator, as a matter of federal law, in all matters pertaining to the Acid Rain Program. 

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

official", as defined in this section, means the designated representative. 

(25) "Draft permit" means the version of a federally enforceable permit, which the 

cabinet offers for public review and any applicable affected state review. 

(26) "Drum mix plant" means a source or affected facility that produces hot mix 

asphalt by heating, drying, and mixing the aggregate with asphalt cement in one (1) 

operation. 

(27) "Emergency" means a situation arising from a sudden and reasonably 

unforeseeable event beyond the control of the source that: [wbkk] 

4 
(a) Requires immediate corrective action to restore normal operation; 

(b) Causes the source to exceed a technology-based emission limitation in the 

permit due to unavoidable increases in emissions attributable to the emergency; and 

(c) Does [W] not include noncompliance caused by improperly designed 

equipment, lack of preventive maintenance, careless or improper operation, or operator 

error. 

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

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

or emission unit is allowed to emit to the ambient air. 

(29) "Emission unit" means an affected facility, or a part or activitv of a source, that 

emits or has the potential to emit a regulated air pollutant and does not alter the 

definition of the term "unit" as used in the Acid Rain Proaram. 

(30) "Emissions fee" means the annual fee assessed to a source as prescribed in 

401 KAR 50:038. made effective April 12, 1995. 

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(31) "Enforceable as a practical matter" means that the emission or other standards 

contained in a permit or compliance schedule include: 

(a) Technically accurate emission standards and the portions of the source that are 

subject to the standards; 

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

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

standards, including appropriate monitoring, recordkeeping, and reporting. 

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

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

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

the definition of volatile organic compound as not participating in atmospheric 

photochemical reactions. 

(34) "Federally enforceable requirement" means an item specified in this subsection 

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

requirement promulgated or approved by the U.S. €PA in coniunction with the permit 

issuance but which has future-effective compliance dates. 

(a) A standard or requirement in the SIP that implements the relevant requirements 

of the Act, including a revision to that plan promulgated at 40 C.F.R. Part 52; 

(b) A term or condition of a preconstruction permit issued pursuant to administrative 

regulations approved or promulgated pursuant to 42 U.S.C. 7401 to 7515; 
1 (c) A standard or other requirement promulqated pursuant to 42 U.S.C. 741 1 or 

2 7429 governing solid waste incinerators; 

3 (d) A standard or other requirement promulgated pursuant to 42 U.S.C. 7412; 

4 (el A standard or requirement of the Acid Rain Program; 

5 (f) A requirement established pursuant to 42 U.S.C. 7414(a)(3) or 7661c(b) for 

6 monitorinq and compliance certification; 

(4) A national ambient air qualitv standard or increment or visibility requirement 

pursuant to 42 U.S.C. 7470 to 7492 for a temporarv source permitted pursuant to 42 

U.S.C. 7661de); 

(h) A standard or other requirement for consumer and commercial products adopted 

pursuant to 42 U.S.C. 751 1 b(e); 

(i) A standard or other requirement for a tank vessel adopted pursuant to 42 U.S.C. 

751 1 b(f); and 

(i) A standard or other requirement to protect stratospheric ozone adopted pursuant 

to 42 U.S.C. 7671 to 7671q, unless the U.S. EPA determines that those requirements 

need not be contained in the permit. 

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(35) "Final permit" means: 

(a) For a federally enforceable permit, the version issued by the cabinet that has 

completed all the applicable review procedures of 401 KAR 52:100 and for which a final 

determination has been made; or [ma&-] 
(b) For a state-origin permit, the version that meets the applicable provisions of 401 

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

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

components. 

(37) "Fuel" means natural gas; petroleum; coal; wood; [[I 

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

creating useful heat. 

(38) "Fugitive emissions" means those emissions that could not reasonably pass 

through a stack, chimney, vent, or other functionally equivalent opening. 

(39) "Hazardous air pollutant" or "HAP" means a pollutant listed pursuant to 42 

U.S.C. 7412(b). 

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

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

asphalt cements. 

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

carbon and hydrogen. 

(42) "Incineration" means the process of igniting and burning solid, semisolid, liquid, 

or gaseous combustible wastes. 

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

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

(44) "KyEIS" means the Kentucky Emissions Inventory System. 

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(45) "Major source" is defined bv 40 C.F.R. 70.2. For purposes of chapter 52, 


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(46) "Major source threshold" means PTE: 

(a) For HAPs: 

1. Ten (1 0) tons per year or more of a single HAP; 

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

3. A lesser quantity that the U.S. EPA establishes in a final rulemaking; or 

(b) 100 tons per year or more for regulated air pollutants other than HAPs, except 

that: 

1. For ozone nonattainment areas: 

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

areas classified as marginal or moderate; 

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

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

d. Ten (10) tons per year or more in areas classified as extreme; 

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

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

contribute significantly to carbon monoxide levels; or 

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

nonattainment areas classified as serious. 
(47) "Malfunction" is defined bv 40 C.F.R 60.2. [- :: 

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

county or portion of a county designated marginal nonattainment for the [cweflfrk] 

national ambient air quality standard for ozone [m 5?:W]. 

(49) "Minor source" means a stationary source that emits and has the potential to 

emit less than the major source thresholds. 

(50) "Moderate nonattainment county" or "moderate nonattainment area" means a 

county or portion of a county designated moderate nonattainment for the [-] 

national ambient air quality standard for ozone [i.twWMMa]. 

(51)M "Modification" is defined by 40 C.F.R 60.2. 

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

purposes of this definition, "administrator" means the cabinet. [- 
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(52) "Modification under Title I of the Act" means a change at a facility that 

constitutes [V] a modification under 42 U.S.C. 7470 to 7492 or 42 U.S.C. 

7501 to 7515. 

. . (53) "Opacity" is defined bv 40 C.F.R. 60.2. [- tfo whk- 

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

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. .. (55) "Person" is defined bv KRS 224.01-OIO(17). [[ 

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

source to emit a pollutant under its physical and operational design in which: [wb~s] 

(a) A physical or operational limitation on the capacity of a source to emit an air 

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

or on the type or amount of material combusted, stored, or processed js [sklkk?] 

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

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

the Act or the term "capacity factor" as used in the Acid Rain Program. 

(57) "Proposed permit" means the version of a permit that the cabinet proposes to 

issue and submit to the U.S. EPA for a forty-five (45) day review period. 

(58) "Reconstruction" means the replacement of components of an existing affected 

facility to the extent that: 

(a) The fixed capital cost of the new components exceeds fifty (50) percent of the 

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

facility; and 

(b) It is technologically and economically feasible to meet the applicable 

requirements in 401 KAR Chapters 50 to 65. [&%I 

(59) "Reference method" means a method of sampling and analyzing for an air 

pollutant as published in 40 C.F.R. Part 50, Appendices A to N; 40 C.F.R. Part 53; 40 
C.F.R. Part 60, Appendices A and B; 40 C.F.R. Part 61, Appendix B; or 40 C.F.R. Part 

63, Appendices A to D. 

(60) "Regulated air pollutant" means: 

(a) Nitrogen oxides; 

(b) Volatile organic compounds; 

(c) A pollutant for which a national ambient air quality standard has been 

promulgated pursuant to 42 U.S.C. 7409 (Section 109 of the Act); 

(d) A Class I or Class II substance subject to a standard promulgated or established 

pursuant to 42 U.S.C. 7671 to 7671q (Title VI of the Act); 

(e) A pollutant subject to a standard promulgated pursuant to 42 U.S.C. 741 1 ; 

(f) A hazardous air pollutant (HAP) subject to a standard or other requirement 

established pursuant to 42 U.S.C. 7412. 

(61) "Renewal" means the process by which a permit is reissued at the end of its 

permit term. 

(62) "Responsible official" is defined bv 40 C.F. R. 70.2. [RXMS 

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(63) "Section 502(b)(10) changes" means changes that contravene an express 

permit term and does not include changes that would violate applicable requirements or 

contravene federally enforceable permit terms and conditions that are monitoring 

(including test methods), recordkeeping, reporting, or compliance certification 

requirements. 

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

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

contiguous property line, which means the property is separated only by a public 

thoroughfare, stream, or other right of way. 

(66) "Standard" means an emission standard, a standard of performance, or an 

ambient air quality standard promulgated in 401 KAR Chapters 50 to 65 [#be 
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Urn I] or the emission control 

requirements necessary to comply with 401 KAR Chapter 51. 

(67) "Start-up" or "startup" means the setting in operation of an affected facility. 

(68) "State implementation plan" or "SIP" means the most recently prepared plan or 

revision required by 42 U.S.C. 7410, that [whkb] has been approved by the U.S. EPA. 

(69) "State-origin permit" means a permit that is issued pursuant to 401 KAR 52:040 

and is not federally enforceable. 

(70) "State-origin requirement" means an applicable requirement contained in 401 

KAR Chapters 50 to 65, which is not mandated by the Act and is not federally 

enforceable. 

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

that emits or may emit a regulated air pollutant. 

(72) "Subject to requlation" is defined bv 40 C.F.R. 70.2 for the Title V program. 

(73) [o] "Title V permit" means a permit issued under Kentuckv's Title V proaram. 

1- fc 4Q-I 2.'= 52:- x -5 

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174) [o] "Title V program" means a state operating permit program approved by 

the U.S. EPA pursuant to 42 U.S.C. 7661 to 7661f (Title V of the Act). 

a [f34)] "Total suspended particulates" or "TSP is defined bv 40 C.F.R. 

51.100(~s). [[ zv h 4Q 

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/76) [m] "tpy" means ton per year. 

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(77) [W] "U.S. EPA means the U.S. Environmental Protection Agency. 

(78) [-I "Volatile organic compound" or "VOC" is defined [k] 40 C.F.R. 

51.1 OO(s). 

(79) [f78)] "Waste oil" means a petroleum based or synthetic oil such as an engine 

lubricant, engine oil, motor oil, or lubricating oil for use in an internal combustion engine, 

or a lubricant for motor transmissions, gears, or axles which through use, storage, or 

handling has become unsuitable for its original purpose due to the presence of 

impurities or loss of original properties. 
Date Leonard K. Peters, Secretary 

Energy and Environment Cabinet 
PUBLIC HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this 

administrative regulation shall be held on August 24, 2010, at 2:00 p.m. (local time) in 

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

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

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

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

canceled. 

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

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

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

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

August 31, 2010. Send written notification of intent to be heard at the public hearing or 

written comments on the proposed administrative regulation to the contact person listed 

below. 

The hearing facility is accessible to persons with disabilities. Requests for reasonable 

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

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

hearing. 

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

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

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

AND TIERING STATEMENT 

Administrative Regulation #: 401 KAR 52:001 

Contact person: Laura Lund, Environmental Technologist II 

(1) Provide a brief summary of: 

What this administrative regulation does: This administrative regulation 

defines the terms used in 401 KAR Chapter 52. 

The necessity of this administrative regulation: This administrative 

regulation provides clear and consistent definitions for terms used in 401 

KAR Chapter 52. 

How this administrative regulation conforms to the content of the 

authorizing statutes: The statutory authority for this regulation is given 

in KRS 224.10-100(5), which provides the cabinet the authority, power, 

and duty to prevent and control air pollution. KRS 224.10-lOO(26) 

requires the cabinet to issue regulations that are no more stringent than 

federal requirements. The definitions contained in this administrative 

regulation are not more stringent or otherwise different than the 

corresponding federal definitions. 

How this administrative regulation currently assists or will assist in 

the effective administration of the statutes: 

This administrative regulation assists the public and the regulated 

community by providing clear and consistent definitions for terms used in 

401 KAR Chapter 52. 

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

brief summary of: 

(a) How the amendment will change this existing administrative 

regulation: This amendment revises definitions to reflect amendments 

made to the New Source Review (NSR) program at the federal level. The 

Prevention of Significant Deterioration and Title V Greenhouse Gas 

Tailoring Rule (Tailoring Rule), published as a final rule on June 3, 2010, 

amends and creates definitions that significantly impact the Prevention of 

Significant Deterioration (PSD) and Title V permitting programs. The 

amendments are to the definitions for "Regulated NSR pollutant", which 

includes greenhouse gases (GHGs) as a regulated NSR pollutant under 

the Clean Air Act; "Major source", which includes air pollutants subject to 

regulation; and the inclusion of a definition for "Subject to regulation", 

which includes the greenhouse gas emission thresholds to trigger PSD 

and Title V permitting. 

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

The definition amendments are necessary at the state level to ensure 

consistency between state and federal programs. The Tailoring Rule 

establishes January 2, 201 1, as the trigger date for GHGs to become 

regulated. If Kentucky's State Implementation Plan (SIP) is not revised by 
that date to include these requirements, the SIP will be found deficient, 

and the U.S. EPA will have authority to issue a Federal Implementation 

Plan (FIP). Serious consequences of a FIP include loss of PSD and Title 

V program approvals and loss of federal highway funds. EPA clearly 

states their intent in the preamble to the final rule, "For any state that lacks 

the ability to issue PSD or Title V permits for GHG emissions sources 

consistent with the final rule, we [EPA] intend to undertake a separate 

action to call for revisions to these programs. We [EPA] also intend to 

move quickly to impose a FIP for PSD through 40 CFR 52.21, and use our 

federal Title V authority to ensure that GHG sources will be permitted 

consistent with the final rule." This amendment also clarifies that small 

businesses will not be regulated solely because of their greenhouse gas 

emissions by tailoring the threshold limits. 

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

statutes: KRS 224.1 0-1 OO(26) requires the cabinet to issue regulations 

that are no more stringent than federal requirements. This amendment 

maintains consistency with corresponding federal definitions affecting 

Kentucky's PSD and Title V permitting programs. 

(d) How the amendment will assist in the effective administration of 

statutes: This amendment will provide clear and consistent definitions of 

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

List the type and number of individuals, businesses, organizations, or state 

and local governments affected by this administrative regulation: Any 

facility with the capacity to emit greenhouse gases at or above the thresholds 

specified in the GHG Tailoring Rule, which changes to 401 KAR 52:001 

incorporate, would be affected by the changes to this regulation. This includes 

PSD and Title V sources of greenhouse gas emissions but does not affect 

smaller emitters of greenhouse gases. EPA has estimated that without the 

Tailoring Rule there would be 82,000 permitting actions nationwide per year 

necessary to address greenhouse gas emissions, but with the implementation of 

the rule that number is reduced to 1,600 nationwide. The Division for Air Quality 

has estimated this regulation change to affect 30 - 40 permitting actions per year 

in Kentucky. If these amendments are not made, the U.S. EPA will find 

Kentucky's SIP deficient and exercise their authority to issue a construction ban 

to prevent the construction or modification of a major emitting facility (pursuant to 

CAA s167) until a FIP is issued. 

Provide an assessment of how the entities identified in question (3) will be 

impacted by either the implementation of this administrative regulation, if 

new, or by the change if it is an amendment: Changes to the current 

regulation will include the regulation of greenhouse gas emissions. For those 

sources emitting at or above the major source threshold for greenhouse gas 

emissions, new permits will have to be issued. 

(a) List the actions that each of the regulated entities identified in 

question (3) will have to take to comply with this administrative 
regulation or amendment: Sources permitted under the Title V program 

will have to submit a permit application identifying and reporting the 

emissions but there will be no new requirements or standards imposed on 

the source. Sources permitted under the PSD program will have to submit 

a permit application including Best Available Control Technology (BACT) 

review for greenhouse gas emissions. 

In complying with this administrative regulation or amendment, how 

much will it cost each of the entities identified in question (3): There 

are no emission fees associated with the regulation of greenhouse gas 

emissions. For those sources that must provide a BACT analysis, there is 

the additional cost to meet the requirements of the BACT determination. 

Additionally, sources required to obtain a new permit will have the 

expense of completing a permit application. EPA has estimated that a 

Title V permit application for greenhouse gas sources would cost each 

source, on average, between $23,200 and $46,400. 

As a result of compliance, what benefits will accrue to the entities 

identified in question (3): These major sources will remain in 

compliance with state and federal regulations. 

Provide an estimate of how much it will cost the administrative body to 

implement this administrative regulation: 

(a) Initially: The inclusion of greenhouse gases in stationary source permits 

will require the Division for Air Quality to expand staff to review the 

increased permit load and inspect changes made to sources as a result of 

this regulation. 

(b) On a continuing basis: The cabinet must maintain the additional staff in 

order to handle the increase in permit issuance. EPA has estimated that a 

Title V permit application for greenhouse gas sources would cost a 

permitting authority, on average, between $9,844 and $19,688 to process 

each source permit. 

What is the source of the funding to be used for the implementation and 

enforcement of this administrative regulation: Any additional expense 

incurred by the Division for Air Quality to regulate greenhouse gas emissions 

would be paid for through Title V emission fees. The cabinet is not requesting 

additional general funds for the implementation and enforcement of the 

regulation. 

Provide an assessment of whether an increase in fees or funding will be 

necessary to implement this administrative regulation, if new, or by the 

change if it is an amendment. The cabinet is not requesting additional general 

funds for the implementation of this administrative regulation. However, Title V 

emission fees may be impacted by the implementation of this administrative 

regulation. 

State whether or not this administrative regulation established any fees or 

directly or indirectly increased any fees. This administrative regulation does 
not establish fees, but as stated above in (7), Title V emission fees may be 

impacted. 

(9) TIERING: Is tiering applied? Yes. The Tailoring Rule amends the threshold of 

greenhouse gas emission levels subject to regulation. This tiering revision was 

necessary to prevent small businesses and individuals from becoming subject to 

permitting requirements solely due to greenhouse gas emissions. 
FEDERAL MANDATE ANALYSIS COMPARISON 

1. Federal statute or regulation constituting the federal mandate. As a SIPapproved state for the PSD program under 40 CFR 51.166, recent changes in the 

federal PSDINSR and Title V programs make it necessary to revise the regulation in 

order to maintain federal approvability. Failure to do so will result in a Federal 

Implementation Plan. 

2. State compliance standards. The state compliance standards are found in KRS 

224.10-lOO(5). 

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

the federal definitions for this program necessitate changes in the state definitions. 

, 4. Will this administrative regulation impose stricter requirements, or additional 

or different responsibilities or requirements, than those required by the federal 

mandate? No. 

5. Justification for the imposition of the stricter standard, or additional or 

different responsibilities or requirements. The definitions contained in this 

administrative regulation are not more stringent or otherwise different than the 

corresponding federal definitions. 
FISCAL NOTE ON STATE OR LOCAL GOVERNMENT 

Administrative Regulation #: 401 KAR 52:OOl 

Contact person: Laura Lund, Environmental Technologist II 

I. Does this administrative regulation relate to any program, service, or 

requirements of a state or local government (including cities, counties, fire 

departments, or school districts)? Yes. 

2. What units, parts or divisions of state or local government (including cities, 

counties, fire departments, or school districts) will be impacted by this 

administrative regulation? This administrative regulation impacts the Division for 

Air Quality as the applicability of other administrative regulations is altered. Any 

state or local government that emits greenhouse gases in the thresholds subject to 

the PSD or Title V permitting programs would be required to obtain a permit from the 

Division for Air Quality. 

3. Identify each state or federal statute or federal regulation that requires or 

authorizes the action taken by the administrative regulation. KRS 224.10- 

100(5), (26); 42 U.S.C. 7401, 7410, 7471, 7607; 40 CFR 51.166. 

4. Estimate the effect of this administrative regulation on the expenditures and 

revenues of a state or local government agency (including cities, counties, fire 

departments, or school districts) for the first full year the administrative 

regulation is to be in effect. 

(a) How much revenue will this administrative regulation generate for the state or 

local government (including cities, counties, fire departments, or school 

districts) for the first year? This administrative regulation does not generate 

revenue, but Title V fees may be impacted by the implementation of this regulation. 

(b) How much revenue will this administrative regulation generate for the state or 

local government (including cities, counties, fire departments, or school 

districts) for subsequent years? This administrative regulation does not generate 

revenue, but Title V fees may be impacted by the implementation of this regulation. 

(c) How much will it cost to administer this program for the first year? The U.S. 

EPA has estimated that it will cost the permitting authority between $9,844 and 

$19,688 per permit issued, and the Division for Air Quality has estimated 30 - 40 

permit actions per year. Therefore, it is estimated that an increase of between 

$300,000 and $800,000 will be necessary to operate this program. 

(d) How much will it cost to administer this program for subsequent years? The 

U.S. EPA has estimated that it will cost the permitting authority between $9,844 and 

$19,688 per permit issued, and the Division for Air Quality has estimated 30 - 40 

permit actions per year. Therefore, it is estimated that an increase of between 

$300,000 and $800,000 will be necessary to operate this program.