# I JUL 1 

## 4 2010 

# I t%U.$dM REGULA IONS COMPILER ENERGYAND ENVIRONMENT CABINET Department for Environmental Protection Divisionfor Air Quality (Amendment) 401 KAR 52:001. Definitionsfor 401 KAR Chapter 52. RELATES TO: KRS 224.OI-Ol0, 224.40-100, 224.20-100, 224.20-110, 224.20-120,40 C.F.R. Parts 50-53, 60-63. 70-78.42 U.S.C. 7401-7671q STATUTORY AUTHORITY: KRS 224.10-1OO(5) NECESSITY, FUNCTION, AND CONFORMITY: KRS 224.10-100(5) requires the cabinet [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 SO2and NOx emissions established under 42 U.S.C. 7651 to 76510 (Title IV of the Act) and codified at 40 C.F.R. Parts72to 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 ). 

### [-



## -1 (4) "Affectedfacility" 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 includesone (1) or more affected units. (6) "Affected state" 

### [sht&']meansa 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 unitsubject to theAcid Rain Program. (8) "Air contaminant" isdefined

## &[kt] KRS 224.01-OlO(1). (9) "Air pollutant"means air contaminant. (1

0) "Air pollution" is defined

## &[kt] KRS224.01-01O(3). (11) "Air pollution control equipment" means a mechanism, device or contrivance used to control or prevent air pollution, that is not, aside from air pollution control laws and administrative regulations, vital to production of the normal product of the source or to its normaloperation. (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. 

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### . . 

## -1 (13) "Ambient air" is defined bv 40 C.F.R. 50.l(e). 

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## n1 (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 throughthe application of appropriate preventive or control measures. (15) "Applicable requirement'' means a state-origin or federally enforceable requirement or standardthat 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 inseparate batches. (1



### 7) "Cabinet" is defined bvKRS 224.01-01O(9). [~RW?%KM.C~? 

### Q?&] (18) "Capitalexpenditure" 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 obligationto undertake and complete, within a reasonable time, a continuous program of construction, modification, or reconstruction of an affectedfacility. (20) "Construction" means fabrication, erection, installationor modification of an air contaminant source.(21) "Continuous monitoring system" meansthe total equipment, required underthe applicable administrative regulations in 401 KAR Chapters 50 to 65, used to sample, to condition (if applicable), to analyze, and to provide a permanent record of emissions or process parameters. (22) "Control device" means equipment such as an incinerator or carbon adsorber used to reduce, by destruction or removal, the amount of air pollutants in an air stream priorto dischargeto the ambient air. (23) "Controlsystem" means a combination of one (1) or more capture systems and control devices working in concertto reduce discharges of pollutantsto 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, meansthe designated representative. (25) "Draft permit" means the version of a federally enforceable permit, which the cabinet offers for public review and any applicableaffected 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 unforeseeableevent beyond the control ofthe source

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

### [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 parameterthat limits the amount of a regulated air pollutant that a source

or emission unit is allowedto 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 theterm "unit" as used inthe 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 tothe standards; (b) A time period adequateto demonstrate compliance with the standards; and (c) The method the sourcewill useto achieve and demonstrate compliancewith 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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### . 

## -1 (33) "Exempt compound"or "exemptsolvent" means an organic compound listed in the definition of volatile organic compound as not participating in atmospheric photochemicalreactions. (34) "Federally enforceable requirement" means an item specified inthis 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 butwhich hasfuture-effective compliance dates. (a) A 

### standard or requirement inthe SIP that implementsthe relevant requirements of theAct, includinga revisionto that plan promulgatedat40 C.F.R. Part

### 52; (b) 

### A term or condition of a preconstruction permit issued pursuant to administrative regulationsapproved or promulgated pursuantto 42 U.S.C. 7401to 7515;

### 1 (c) A 

### standard or other requirement promulqated pursuant to 42 U.S.C. 7411 or 2 7429 governingsolidwaste incinerators; 3 (d)

### A standard or other requirement promulgated pursuantto 42 U.S.C. 7412; 4 (elA 

### standard or requirementoftheAcid 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 requirementfor a tank vessel adopted pursuant to 42 U.S.C. 751 1 b(f); and 

### (i)A 

### standard or other requirementto 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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## 91 (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 meetsthe applicable provisions of 401 

### KAR 52:040, andfor which a final determination has been made. (36) "Fixed capital cost" means the capital needed to provide all the depreciable components. (37) "Fuel" means naturalgas; petroleum; coal; wood; 

## [[I

or a form of solid, liquid,or gaseousfuel derived from these materialsfor the purpose of creating useful heat. (38) "Fugitive emissions" means those emissions that could not reasonably pass through a stack, chimney, vent, or otherfunctionally equivalentopening. (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" meansthe process of igniting and burningsolid, semisolid, liquid, or gaseous combustible wastes. (43) "Intermittentemissions" means emissions of particulate matter intothe open air from a processthat operates for less than any six 

### (6) consecutive minutes. (44) "KyEIS" meansthe Kentucky Emissions Inventory System. (45) "Major source" is defined bv 40 

### C.F.R. 70.2. For purposes of chapter 52, 

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## -1 (46) "Major source threshold" means PTE: (a) For HAPs: 1. Ten (1 0) tons per year or moreof a single HAP; 

### 2. Twenty-five (25) tons per year or more of combined HAPs; or 3. A lesser quantitythat the U.S. EPAestablishes 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 classifiedas marginalor moderate; b. Fifty (50) tons per year or more in areas classified as serious;

c. Twenty-five (25)tons peryear or more in areas classifiedas 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 contributesignificantlyto 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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## 11 (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 qualitystandard 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"isdefined by 

### 40 

### C.F.R 60.2. (b) Exceptionsto the definition of "modification" are listed in 40 

### C.F.R 60.14(e). 

### F purposes of this definition, "administrator" means the cabinet. [-7 Th (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. 7501to 7515.



### . . (53) "Opacity" is defined 

### bv 40 C.F.R. 60.2. [- 

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## *I (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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## -1 (56) 

### "Potential to emit" or "PTE" means the maximum capacity of a stationary

sourceto emit a pollutant under its physical and operationaldesign inwhich: 

### [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 restrictionson hours of operation

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

## js [sklkk?] treated as partof itsdesign ifthe limitationisenforceable as a practicalmatter; and (b) 

### This definition does not alter or affect the use of this term for other purposes of theAct or the term "capacityfactor" as used intheAcid Rain Program. (57) "Proposed permit" means the version of a permit that the cabinet proposes to issueand submittothe U.S. EPAfor

## aforty-five (45) day review period. (58) "Reconstruction" meansthe replacementof components of an existing affected facilityto the extentthat: (a) The fixed capital cost of the new components exceeds fifty (50) percent of the fixed capitalcost that would be requiredto 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; 40C.F.R. Part 60, Appendices 

### A and B; 40 C.F.R. Part 61, Appendix B; or 40 C.F.R. Part 63, AppendicesA 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 pursuantto 42 U.S.C. 7409 (Section 109 of theAct); (d) A Class 

### Ior Class II substance subject to a standard promulgated or established pursuant to 42 U.S.C. 7671to 7671q (TitleVI of theAct); (e) A pollutant subject to a standard promulgated pursuantto 42 U.S.C. 7411; (f) A hazardous air pollutant (HAP) subject to a standard or other requirement establishedpursuantto 42 U.S.C. 7412. (61) "Renewal" means the process by which a permit is reissued at the end of its permitterm. (62) "Responsible official" isdefined bv40 C.F.R. 70.2. [RXMS

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### ref3Fefefftaktte-I (63) "Section 502(b)(10) changes" means changes that contravene an express permit term and does not includechanges 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" meansthe 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

### ... nf Urn 

## I] or the emission control requirements necessaryto comply with 401 KAR Chapter51. (67) "Start-up" or "startup" meansthe setting in operation of an affectedfacility. (68) "State implementation plan" or "SIP" meansthe most recently prepared plan or revision required by42 U.S.C. 7410,

## that [whkb] 

### has been approved bythe U.S. EPA. (69) "State-origin permit" means a permitthat is issued pursuantto 401 KAR 52:040 and is notfederally enforceable. (70) "State-origin requirement" means an applicable requirement contained in 401 KAR 

### Chapters 50 to 65, which is not mandated by the Act and is not federally enforceable. (71) "Stationary source" means a building, structure, affected facility, or installation that emits or may emit 

### a regulated air pollutant. (72) "Subjectto requlation" isdefined bv40 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. 

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### 2.'= 52:- 

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## -1 174)

# [o] "Title V 

### program" means a state operating permit program approved by the U.S. EPA pursuantto 

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

### V ofthe Act). 

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### "Total suspended particulates" or "TSP is defined bv 40 C.F.R. 51.100(~s). 

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## -1 /76) 

# [m] "tpy" means ton peryear.

18(77) 

## [W] "U.S. EPAmeansthe 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)] 

### "Wasteoil" means 

### a petroleum based or synthetic oil such as an engine lubricant, engine oil, motor oil, or lubricating oil for use in an internalcombustion engine,

or a lubricant for motor transmissions, gears, or axles which through use, storage, or handling has become unsuitable for its original purpose due to the presence of impuritiesor loss of original properties.

### Date Leonard 

### K. Peters, Secretary Energy 

### and Environment CabinetPUBLIC HEARING AND PUBLIC COMMENT PERIOD:A public hearing on this administrative regulationshall be held onAugust 24, 2010, at 2:00 p.m. (localtime) in Conference Room201 

### B on thefirst floor of the Divisionfor Air Quality at 200 FairOaks Lane, Frankfort, Kentucky. Individualsinterested in being heard at this hearing shall notify this agencyfive (5) workdays priorto the hearing of their intentto attend. If no notification of intentto attend the hearing is received bythat date, the hearing may be canceled. This hearing is opento the public. Any personwho wishes to be heard shall be given an opportunityto comment onthe proposed administrative regulation. Ifyou do not wish to be heard atthe public hearing, you may submitwritten commentson the proposed administrative regulation.Written comments shall be accepted until close of businesson August 31, 2010. Sendwritten notification of intentto be heardatthe public hearingor written comments on the proposed administrative regulation to the contact person listed below. The hearingfacility is accessibleto persons with disabilities. Requestsfor reasonable accommodations, including auxiliary aids and services necessaryto participate inthe hearing, may be madeto the contact person at least five (5) workdays priorto the hearing. CONTACT PERSON: Laura Lund, Environmental Technologist 

### Ill Divisionfor Air Quality, lSt Floor, 200 Fair Oaks Lane, Frankfort, Kentucky40601, telephone (502) 564- 3999, ext. 4428, fax (502) 564-4666, and electronic mail Laura-Lund@ky.gov.REGULATORY IMPACTANALYSIS AND TIERING STATEMENT Administrative Regulation#: 401 KAR 52:001 Contact person: Laura Lund, Environmental Technologist 

### II 

### (1) Provide a briefsummary of: What this administrative regulationdoes: This administrative regulation defines the terms used in401 KAR Chapter52. The necessity of this administrative regulation: This administrative regulation provides clear and consistent definitions for terms used in 401 KAR Chapter52. How this administrative regulation conforms to the content of the authorizing statutes: The statutory authority for this regulation is given in KRS 224.10-100(5), which provides the cabinet the authority, power, and duty to prevent and control air pollution. KRS 224.10-lOO(26) requires the cabinet to issue regulations that are no more stringent than federal requirements. The definitions contained in this administrative regulation are not more stringent or otherwise different than the correspondingfederal definitions. How this administrative regulation currently assists or will assist in the effective administration of the statutes: This administrative regulation assists the public and the regulated community by providing clear and consistent definitions for terms used in 401 KAR Chapter52. If this is an amendment to an existing administrative regulation, provide a briefsummary of: (a) How the amendment will change this existing administrative regulation: This amendment revises definitions to reflect amendments madeto 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 definitionsthat 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 TitleV permitting. (b) The necessity of the amendmentto this administrative regulation: The definition amendments are necessary at the state level to ensure consistency between state and federal programs. The Tailoring Rule establishes January 2, 2011, as the trigger date for GHGs to become regulated. If Kentucky's State Implementation Plan (SIP) is not revised bythat date to include these requirements, the SIP will be found deficient, and the U.S. EPA will have authority to issue a Federal Implementation Plan (FIP). Serious consequences of a FIP include loss of PSD and Title 

### V program approvals and loss of federal highway funds. EPA clearly states their intent inthe preambleto the final rule, "For any statethat 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 quicklyto 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 bytailoring the threshold limits. (c) How the amendment conforms to the content of the authorizing statutes: KRS 224.10-1 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 andTitleV 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 controlair pollution. Listthe 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 necessaryto address greenhouse gas emissions, but with the implementation of the rule that number is reducedto 1,600 nationwide. The Divisionfor Air Quality has estimatedthis regulationchange to affect 30 

### -40 permitting actions per year in Kentucky. If these amendments are not made, the U.S. EPA will find Kentucky's SIP deficient and exercise their authority to issue a construction ban to prevent the construction or modification of a major emitting facility (pursuant to CAA 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 haveto be issued. (a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative

### regulation or amendment: Sources permitted underthe Title 

### V program will have to submit a permit application identifying and reporting the emissions but there will be no new requirementsor standards imposed on the source. Sources permitted underthe PSD programwill haveto submit a permit application including Best Available Control Technology (BACT) review for greenhouse gas emissions. 

### In complying with this administrative regulation or amendment, how muchwill it 

### cost each of the entities identified inquestion (3): There are no emission fees associated with the regulation of greenhouse gas emissions. For those sources that must provide a BACT analysis, there is the additional cost to meet the requirements of the BACT determination. Additionally, sources required to obtain a new permit will have the expense of completing a permit application. EPA has estimated that a Title V permit application for greenhouse gas sources would cost each source, on average, between $23,200 and $46,400. 

### As a result of compliance, what benefits will accrue to the entities identified in question (3): These major sources will remain in compliance with state and federal regulations. 

### Provide an estimate of how much it 

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

### On a continuing basis: The cabinet must maintainthe additional staff in orderto handlethe increase in permit issuance. EPA has estimatedthat a Title V permit application for greenhouse gas sources would cost a permitting authority, on average, between $9,844 and $19,688 to process each source permit. 

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

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

### 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 notthis administrative regulation established any fees or directly or indirectly increased any fees. This administrative regulation doesnot 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 revisionwas necessaryto 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 necessaryto revisethe 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 inthe federal mandate. Changes in the federal definitions for this program necessitate changes inthe state definitions.

, 4. Will this administrative regulation impose stricter requirements, or additional or different responsibilities or requirements,than those required 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, EnvironmentalTechnologist 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 programswould be requiredto 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 revenuesof a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation isto be ineffect. (a) How much revenuewill this administrative regulation generatefor the state or local government (including cities, counties, fire departments, or school districts) for the first year? This administrative regulation does not generate revenue, butTitle V fees may be impacted bythe implementationof this regulation. (b) How much revenuewill this administrative regulation generatefor 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 bythe implementationof this regulation. (c) How much will it cost to administer this program for the first year? The U.S. EPA has estimated that it will cost the permitting authority between $9,844 and $19,688 per permit issued, and the Division for Air Quality has estimated 30 

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

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