# REGULATIONSAS EFFECTIVE ON DECEMBER7, 2012

## 401 KAR51:001. Defmitionsfor401 KARChapter 51. Page 1of13

401 KAR51:001. Definitionsfor401 KAR Chapter51. RELATES TO: KRS 48.010(15)(8), 224.01-010, 224.20-100, 224.20-110, 224.20-120, 40 C.F.R. Chapter I, 50 Appendices A-R, 51.100, 51.121, 51.165, 51.166, 51 Appendix S, 52.920, 53, 60,60 Appendices A, B, 61,61 Appendix B, 63 Appendices A-0, 70.2, 75, 82, 96,42 

### U.S.C. 7401-7671q STATUTORYAUTHORITY: KRS 224.10-100(5) NECESSITY, FUNCTION, AND CONFORMITY: KRS 224.10-100(5) requires the cabinet to promulgate administrative regulations forthe prevention, abatement, and control of air pollution. This administrative regulation defines the terms used in 401 KAR Chapter 51. The definitions contained in this administrative regulation are notmore stringentthan the correspondingfederal definitions. Section 1 Definitions. The definitions with citations to the Code of Federal Regulations shall be governed by 40 C.F.R. Parts 50 through 96, as published on July 1, 2012. (1} "Acid rain emissions limitation" means a limitation on emissions of so2 or NOx imposed by the Acid Rain Program under 42 U.S.C. 7651 to 7651o. (2} "Actual emissions": (a) Means the actual rate ofemissionsofa regulated NSR pollutantfrom an emissions unitasdetermined according

## to thefollowmg: 1. Actual emissions as ofa particulardate equals the average rate, in tons peryear, atwhich the unit actually emitted the pollutantduring a consecutive twenty-four (24) month period, that precedes that dale and is representative ofnormal source operation, unless a differenttime period is more representative ofnormal source operation; and 2. The unit's actual operating hours, production rates, and types of materials processed, stored, or combusted during the selected lime periods are used to calculate actual emissions; (b) Means source-specific allowable emissions for the unit are equivalent to actual emissions of the unit if the cabinet has made an equivalencydetermination pursuantto 40 C.F.R. 51.166; (c) Means, for an emissions unit that has not begun normal operations on a particular date, the potential to emit ofthe unit on that date; 

# '"'(d) Does not mean: 1. Calculating ifa significantemissions increase has occurred; or 2. Establishing a PAL under401 KAR 51:017, Section 20. (3) "Actuals PAL" or "PAL" means a plant-wide applicability limit established for a major stationary source based on the baseline actual emissions ofall emissions units atthesource thatemit or have the potential to emilthe PAL pollutant. (4) "Adverse impacton visibility" is defined by 40C.F.R. 51.301. (5) "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 outdooratmosphere. (6) "Aircontaminant" isdefined by KRS 224.01-010(1). (7) "Airpollutant" means aircontaminant. (8) "Airpollution" is defined by KRS 224.01-010(3). (9) "Air pollution control equipment" means a mechanism, device, or contrivance used to control or prevent air pollution, that is not, aside from airpollution control laws and administrative regulations, vitalto production ofthe normal product ofthe source orto its normal operation. (10) "Allocate"or"allocation" means the number ofNOxallowancesto be credited to a NOx budget unit. (11) "Allocation period" meanseach three (3) yearperiod beginning May 1, 2004. (12) "Allowableemissions" means: (a) The emissions rate of a stationary source calculated using the maximum rated capacity ofthe source, unless the source is subject to federally enforceable limitsthat restrictthe operating rate, hours ofoperation, orboth, and the moststringent ofthe following: 1. The applicable standards codified in 40 C.F.R. Parts60 and 61; 2. The applicable SIPemissions limitations, including thosewith afuture compliance date; or 3. The emissions rates specffied as afederally enforceable permit condition, induding thosewith a future compliance date; or (b) For an actuals PAL, the emissions rate ofa stationary source calculated considering any emission limitations that are enforceable as a practical matteron the emissions unit'spotential to emit, and the moststringent provision ofparagraph (a)1. through 3. ofthis subsection. (13) "Alteration" means: (a) The installation or replacement of air pollution control equipment at a source; or (b) A physical change in orchange in the method ofoperation ofan affected facility that increases the potentialtoemit a pollutant, towhich a standard applies, emitted by the facility orthat results in the emission ofan air pollutant, to which a standard applies, notpreviously emitted. (14) "Alternative method" is defined by 40 C.F.R. 60.2. For purposes ofthis definition, "administrator" means both the U.S. EPA and the cabinet. (15) "Ambientair'' meansthat portion ofthe atmosphere, externalto buildings, to which the general public has access. {16) "Ambient airquality standard" means a numerical expression ofa specified concentration level for a particularair contaminantandthe time averaging interval overwhich thatconcentration level is measured and isa goal to be achieved in a stated time through the application of appropriate preventive or control measures. (17) "ANSI" meansAmerican National Standards Institute. (18) "AOAC" meansAssociation ofOffidalAnalytical Chemists. (19) "ASTM" meansAmerican Society for Testing and Materials. (20) "Baseline actual emissions" means the rate ofemissions, in tons peryear, ofa regulated NSR pollutant, that: (a} For an existing electric utility steam generating unit (EUSGU), the unit actually emitted during any consecutive twenty-four (24) month period selected by the owner or operator within the five (5} year period immediately preceding the date the owner or operator begins actual construction ofthe project, unless a differenttwenty-four (24) month time period is more representative ofnormal source operation. 1. The rate is an averagethat: a. Includes fugitive emissions, to the extentquantifiable, and emissions assodatedwith startups, shutdowns, and malfunctions; b. !s adjusted downward to exclude any noncompliant emissions that occurred while the source was operating above an emission limitation thatwas legallyenforceableduring the consecutive twenty-four (24) month period; and c. Is based on any consecutivetwenty-four (24) month period for which there is adequate information fordetermining annual emissions, in tons peryear, and for adjusting this amountas necessary according to clause b. ofthis subparagraph; and 2. Ifa project involves multiple emissions units, only one (1} consecutive twenty-four (24) month period is used to determine the baseline actual emissions forthe emissions units being changed with a different consecutive twenty-four (24} month period allowed for each regulated NSR pollutant; {b) For an existing emissions unit that is not an EUSGU, the unit actually emitted during any consecutive twenty-four (24) month period



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## 401 KAR51:001. Definitionsfor 401 KARChapter 51. Page2 of13

selected by the owner or operator within the ten (10) year period beginning on or after November 15, 1990, and immediately preceding the earlierofthe date the owner or operator begins actual construction ofthe project orthe date a complete permit application is received by the cabinetfora permit required under401 KAR 51:017 or51:052. 1. The rate is an averagethat: a. Includesfugitive emissions, to the extentquantifiable, and emissions associated with startups, shutdowns, and malfunctions; b. Is adjusted downward: (i) 

### To exclude any noncompliant emissions that occurred while the source was operating above an emission limitation that was legally enforceable during the consecutive twenty-four (24) month period;

- (ii) To exclude any emissions thatwould have exceeded an emission limitation withwhich the major stationary source is required currently to comply, ifthe source had been required to complywith the lim;tationsduring the consecutivetwenty-four (24) month period; and (iii) For an emission limitation that is part ofa maximum achievable control technology standard proposed orpromulgated under40 C.F.R. Part63, only ifthe Commonwealth of Kentucky has taken credit forthe emissions reductions in an attainment demonstration or maintenance plan consistentwith 40 C.F.R. 51.165(a)(3)(ii)(G); and c. Is based on any consecutivetwenty-four (24) month period forwhich there is adequate information fordetermining annual emissions, in tons peryear, and foradjusting this amountas necessary accordingto clause b. ofthissubparagraph. 2. If a project involves multiple emissions unrts, only one (1) consecutive twenty-four (24} month period is used for each regulated NSR pollutantto determine the baseline actual emissions for theemissions un;ts being changed with a different consecutivetwenty-four (24) month period; (c) For a newemissions unit, equalszero fordetermining the emissions increase that will result from the initial construction and operation ofthe new unit and thereafter, forall otherpurposes, equalsthe unit's potential to em;t; or (d) Fora PALfor a stationary source, is determined asfollows: 1. Foran existing EUSGU, in accordancew;th the procedures contained in paragraph (a) ofthis subsection; 2. For otherexisting emissions units, in accordance w;th the procedures contained in paragraph (b) ofthissubsection; and 3. Fora new emissions unit, in accordance with the procedures contained in paragraph {c) ofthissubsection. (21} "Baseline area" means an intrastate area and every part ofthatarea designated as attainment or unclassifiable pursuantto 42 U.S.C. 7407(d){1)(A)(ii) or (iii) in which the major source or major modification establishing the minor source baseline date would construct orwould have an airquality impact equal to or greaterthan one (1)**~g/m3** annual average ofthe pollutant for which the minor source baseline date is established for502, N02, or PM10 or equalto orgreaterthan 0.3**~g/m 3**  annual averagefor PM2

_ 5. {a) Area redesignations under 42 U.S.C. 7407(d}{1)(A)(ii) or (iii) do not intersect and are not smaller than the area of impact of a major stationarysource or major modification that: 1 Establishesa minorsource baseline date; or 2. Is subjectto 401 KAR 51:017 and would be constructed in the Commonwealth ofKentucky. (b) A baseline area established originally for total suspended partiCIJiate (TSP) increments remains in effect to determine the amount of available PM10 increments, unlessthe cabinet rescindsthe corresponding minorsource baseline date. (22) "Baseline concentration" means the ambient concentration level that exists in the baseline area on the date the applicable minor source baselinedate isestablished. (23) "Baseline date" means major source baseline date or minor source baseline date and is established for each pollutant for which increments or other equivalent measures have been established ifthe area in which the proposed source or modification would construct is designated as attainment or unclassifiable pursuant to 42 U.S.C. 7407(d)(1)(A)(ii) or (iii) for the pollutant on the date ofthe source's complete application; and {a) Fora majorstationary source, the pollutantwould be emitted in significant amounts; or

. {b) Fora majormodification, there would be asignificant netemissions increase ofthe pollutant (24) "Begin actual construction" means: (a) Initiation of physical on-site construction activities on an emissions unit that are of a permanent nature and include installation of building supportsand foundations, laying underground pipework, and construction ofpermanent storage structures; and (b) For a change in method of operations, those on-site activities, other than the preparatory activities, that mark the initiation of the change. (25) "Best available control technology" or "BACT" means an emissions lim;tation, including a visible emission standard, based on the maximum degree of reduction for each regulated NSR pollutant that will be emitted from a proposed major stationary source or major modification and: (a) Is determined by the cabinet pursuant to 401 KAR 51:017, Section 8, after taking into account energy, environmental, and economic impacts and other costs, to be achievable by the source or modification through application of production processes or available methods, systems, and techniques, including fuel cieaning ortreatmentorinnovativefuel combustion techniquesforcontrol ofthat pollutant; (b) Does not result in emissions of a pollutant thatwould exceed the emissions allowed by an applicable standard codified in 40 C.F.R. Parts60 and 61; and (c) Is satisfied by a design, equipment, work practice, or operational standard or combination ofstandards approved bythe cabinet, if: 1. The cabinet determines pursuant to 40 C.F.R. 51.166(b)(12) that technological or economic limitations on the application of measurementmethodologyto a particularemissions unitwould makethe impos;tion ofan emissions standard infeasible; 2. The standard establishes the emissions reduction achievable by implementation ofthe design, equipment, work practice, or operation; ood3. The standard providesforcompliance by meansthatachieve equivalent results. (26) "BOD" means biochemical oxidantdemand. (27) "Boiler" means an enciosed fossil or other fuel-fired combustion device used to produce heat and to transfer heat to recirculating water, steam, orother medium. (28) "BTU" means British thermal unit. (29) "Building, structure, facility, orinstallation" means all ofthe pollutantemitting activitiesthat: (a) Belong to the same industrial grouping or have the same two {2) digit major group code as described in the Standard Industrial Classification Manual; (b) Are located on one (1) ormore contiguous or adjacentproperties; (c) Are underthe control ofthe same person or persons undercommon control; and (d) [fo not include the activtties ofa vessel. (30) "°C" meansdegree Celsius (centigrade). (31) "Cabinet" is defined by KRS 224.01-010(9). (32) "Cal" means calorie.



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(33) "Capital expenditure" is defined by40 C.F.R. 60.2. (34) 

### "cfm" means cubicfeet per minute. (35} "CH4"

### means methane. (36) "Clean coal technology" is defined by40 C.F.R. 51.166(b)(33). 

### (37) "Clean coal technology demonstration project" is defined by40 C.F.R. 51.166{b)(34). (38) "Clinker" meansthe product ofaportland cement kiln from which finished cement is manufactured by milling and grinding. (39) "CO" means carbon monoxide. {40) "C02 .. 

### means carbon dioxide. 

### (41) "COD" means chemical oxidant demand. (42)"Combined cycle system" means a system comprised of one (1) or more combustion turbines, heat recovery steam generators, or 

### steam turbines configured to improve overall efficiencyofelectricity generation orsteam production. (43) "Combustion turbine" means an enclosed fossil or other fuel-fired device that is comprised of a compressor, a combustor, and a turbine, and in which the flue gas resulting from the combustion offuel in the combustor passesthrough the turbine, rotating the turbine. (44) "Commence" means that an owneroroperator: (a) Has undertaken a continuous program of construction, modification, or reconstruction of an affected facility, or that an owner or operator has entered into acontractual obligation to undertake and complete, within a reasonable time, a continuous program ofconstruction, modification, or reconstruction ofan affected facility; or (b) For construction ofa major stationary source or major modification in the PSD or NSR program, has all necessary preconstruction approvals or permits, and: 1. Has begun, orcaused to begin, acontinuous program ofactual on-site construction ofthe source, to be completed within a reasonable time; or 2. Has entered into binding agreements or contractual obligations, that cannot be cancelled or modifted without substantial loss to the owneror operator, to undertake aprogram ofactual construction ofthe source to be completed within a reasonable time. (45} "Commence commercial operation" meansto have begun to produce steam, gas, or other heated medium used 

### to generate electricity for sale or use. Except as provided in 401 KAR 51 :195 or40 C.F.R. 96.5: (a} Fora unitthat is a NOx budget unit under40 C.F.R. 96.4, on the date the unit commences commercial operation, the date remains the unit's date ofcommencement ofcommercial operation

## even ifthe unit is subsequently-modified, reconstructed, or repowered; or {b) For a unitthat is not a NOx budget unit under40 C.F.R. 96.4, on the date the unit commences commercial operation, the date the unit becomes a NOx budget unit under40 CFR.96.4 is the unit's date ofcommencement ofcommercial operation. (46) "Commence operation" means, for a NOx budget unit, to have begun amechanical, chemical, orelectronic process, including start-up ofa unit's combustion cllamber. Exceptas provided in 401 KAR 51:195 or40 C_F_R. 96.5: (a) For a unitthat is a NOx budget unit under 40 C.F.R. 96.4 on the date ofcommencement ofoperation, the date remains the unit's date ofcommencement ofoperation even ifthe unit is subsequently modified, reconstructed, or repowered; or (b) For a unitthat is not a NOx budget unit under 40 C.F.R. 96.4 on the date ofcommencement ofoperation, the date the unit becomes a NOx budget unit under40 C.F.R. 96.4 isthe unit's date ofcommencement ofoperation. (47) "Complete" is defined by40 C.F.R. 51.166(b)(22). (48) "Compliance schedule" means a time schedule of remedial measures including an enforceable sequence of actions or operations leadingto compliance with alimitation or standard. (49} "Compliance supplement pool" means the quantity of NOx allowances provided to Kentucky bythe U.S. EPAto be: (a) Allocated to NOx budget unitsthat achieve early reduction; or (b) Used to assist NOx budget sourcesthat are unable to meetthe compliance deadline as provided in 401 KAR 51:180, Section 5. (50) "Construction" means: (a) Fabrication, erection, installation, or modification ofan aircontaminant source; or (b) For the NSR program, any physical change or change in the method of operation, including fabrication, erection, installation, demolition, or modification ofan emissions unitthatwould result in achange in the emissions at an aircontaminant source. {51) «Continuous emissions monitoring system" or "CEMS" means all of the equipment necessary to meet the data acquisition and availability requirements of401 KAR 51 :017 or 51:052 to sample, condition (if applicable), analyze, and provide a record of emissions on a continuous basis. (52) "Continuous emission monitoring system for NOx" or "CEMS for NOx" means the equipment required to sample, analyze, measure, and provide, by readings taken at least once every fifteen (15) minutes ofthe measured parameters, a permanent record of NOx emissions, expressed in tons per hour for NOx. The following systems are necessary component parts, as required by 40 C.F.R. Part 75, included in a continuous emissions monitoring system: (a) Flow monitor; (b) NOx pollutant concentration monitor; (c) Diluent gas monitor (02orC02 ); {d) Continuous moisture monitor; and {e) Automated data acquisition and handling system. (53) "Continuous emissions rate monitoring system" or "GERMS" is defined by40 C.F.R. 51.166(b}(46). (54) "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. {55) "Continuous parameter monitoring system" or "CPMS" is defined by: (a} 40 C.F.R. 51.166(b)(45) for 401 KAR 51 :017; or (b) 40 C.F.R. 51.165(a)(1)(xxxiii) for401 KAR 51:052. {56) "Control period" means the period beginning May 1ofayearand ending on September30 ofthe same year, inclusive. {57) "Director" means Directorofthe Division forAir Quality ofthe Energyand Environment Cabinet. (58) "District" is defined by KRS 224.01-010(11). {59) "dscf' means dry cubicfeet at standard conditions. (60) "dscm" means dry cubic meterat standard conditions. {61) "Electric generating unit" means, for 401 KAR 51:160 to 51 :195, a fossil fuel-fired boiler, combustion turbine, or a combined cycle system used to generatetwenty-five (25) megawatts or more ofelectricity, some ofwhich is offered for sale. (62) "Electric utility steam generating unit" or "EUSGU" is defined by40 C.F.R. 51.166(b)(30). (63) "Emission standard" means that numerical limit that fixes the amount of an air contaminant or air contaminants that may be vented intothe atmosphere from an affected facility orfrom air pollution control equipment installed in an affected facility.



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(64) "Emissions unit" means any part of a stationary source, including an EUSGU, thatemits or has the potential to emit a regulated NSR pollutant For401 KAR 51:017 and 51:052, thereare two (2}typesofemissions units: (a) A new emissions unit, which is any emissions unitthat is or will be newly constructed and that has existed for less than two (2) years from the datethe unitfirst operated: and (b) An existing emissions unit. which is any emissions unit that does not meetthe requirements in paragraph (a} ofthis subsection or is a 

### replacement unit. (65) "Enforceable as a practical matter" means thatthe emission or otherstandards contained in a permitor compliance schedule include: (a) Technically accurateemission standards and the portions ofthe source that are subjectto the standards; (b) A time period adequate to demonstrate compliancewith the standards; and (c) The method the source shall use to achieve and demonstrate compliance with the limitations and standards, including appropriate monitoring, recordkeeping, and reporting. (66) "Equivalent method" means a method ofsampling and analyzing for an air pollutant that has been demonstrated to the cabinet and the U.S. EPA pursuantto 40 C.F.R 53.3 to have a consistent and quantitatively known relationship to the reference method, under specified conditions. (67) "Excess NOx emissions" means anytonnage ofnitrogen oxides emitted by a NOx budget unitduring a control period that exceedsthe NOx budgetemissions limitationforthe unit. (68) "Exempt compound" or "exempt solvent" means an organic compound listed in the definition of volatile organic compound as not participating in atmosphericphotochemical reactions. (69} "Existing source" means asourcethat is nota newsource. (70} "Extreme nonattainment county" or "extreme nonattainment area" means a county or portion of a county designated extreme nonattainmentforthe nationalambientairqualitystandard forozone. (71} "°F" meansdegree Fahrenheit. (72) "Federal land manager" isdefined by 40 C.F.R 51.166(b)(24). (73} "Federallyenforceable" means all limitations and conditionsthat are enforceable bythe U.S. EPA, including: (a) Requirementsdeveloped under40 C.F.R Parts 60 and 61; (b) Requirements in the Kentucky State Implementation Plan (SIP) approved by the U.S. EPA; and (c) Any permit requirements established under 40 C.F.R 52.21 or under the Kentucky SIP approved pursuant to 40 C.F.R Part 51, Subpart I, including operating permits issued under a U.S. EPA-approved program incorporated into the SIP, that expressly requires adherenceto a permit issued underthe program. (74) "Federallyenforceable permif' means a permit issued under401 KAR 52:020 or 52:030, as appropriate. (75) "Fixed capital cost" meansthe capital needed to provide all thedepreciablecomponents. (76) "Fossil fuel" means natural gas; petroleum; coal; or a form of solid, liquid, or gaseous fuel derived from natural gas, petroleum, or coal. (77) "Fossil fuel fired" means, for a unit: (a) The combustion of fossil fuel, alone or in combination with another fuel, if the fossil fuel combusted comprises more than 

### fifty (50) percent ofthe annual heat input on a BTU basis during a year starting in 1995 or, ifa unit had no heat input starting in 1995, during the last yearofoperation ofthe unit priorto 1995; or (b) The combustion of fossil fuel, alone or in combination with anotherfuel, ifthe fossil fuel is projected to comprise more than 

### fifty (50) percent of the annual heat input on a BTU basis during a year, and the unit is to be fossil fuel fired as of the date during the year the unit begins combusting fossil fuel. {78) 

### "ft" means feet orfoot. (79) "Fuel" means natural gas; petroleum; coal; wood; or a form of solid, liquid, or gaseous fuel derived from these materials for the purpose ofcreating useful heal. (80) "Fugitive emissions" means those emissions that could not reasonably pass through a stack, chimney, vent, or other functionally equivalentopening. (81) "g" meansgram. (82) "gal" means gallon. (83) "Generalfund" is defined by KRS 48.010{15)(a). (84) "Generator" means adevice that produces electricity. (85) "gr" means grain. (86) "HCI" means hydrochloric acid. {87) "Heat inpuf' means the product, in MMBTU per unit oftime, ofthegross calorificvalue ofthe fuel, in BTU perlb, and the fuel feed rate into a combustion device, in massoffuel perunit oftime, that (a) Does not include the heat derived from preheated combustion air, recirculated flue gases, orexhaustfrom othersources; and {b) Is measured, recorded, and reported to the cabinet. {88) "HF" means hydrogen fluoride. {89) "Hg" means mercury. (90) "High terrain" is defined by 40 C.F.R. 51.166(b)(25). (91) "hr" means hour. {92) "Hydrocarbon" means an organiccompound consisting predominantly ofcarbon and hydrogen. {93) "Hydrocarbon combustion flare" means: (a) A flare used to comply with an applicable New Source Performance Standard (NSPS) or Maximum Achievable Control Technology (MACT) standard, including usesofflares during startup, shutdown, ormalfunction permitted underthe standard; or (b) A flare that serves to control emissions ofwaste streams comprised predominately of hydrocarbons and containing no more than 230 J.Jgfdscm hydrogen sulfide. (94) "H20" meanswater. (95) "H2S" means hydrogen sulfide. (96) "H2S04., means sulfuric acid. (97) "in" means inch. (98) "Incineration" meansthe process ofigniting and burning solid, semisolid, liquid, orgaseous combustiblewastes. (99) "Industrial boiler or turbine" means a fossil fuel-fired boiler, combustion turbine, or a combined cycle system having a maximum design heat inputof250 MMBTU per hourormorethat is not an electricgenerating unit. (100) "Innovativecontrol technology" is defined by 40 C.F.R. 51.166(b)(19). (101) "Intermittentemissions" means emissions ofparticulate matterinto the open airfrom a processthatoperatesfor lessthan anysix (6)



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## 401 KAR51:001. Definitionsfor 401 KARChapter 51.

consecutive minutes. (102) 

### "J" means joule. {103) "Kg" 

### means kilogram. {104) "I" 

### means liter. (105) "lb" 

### means pound. 

### (106) "Legally eilforceable" means the cabinet orthe U.S. EPA hasthe authorityto enforce acertain restriction. (107) "Long dry kiln" means akiln that employs no preheating ofthe feed and has adry inlet

### feed. (108) "Long wet kiln" means akiln that employs no preheating ofthe feed and the inletfeed to the kiln is aslurry. (109) "Low

### terrain" means an area otherthan high terrain. (110) "Lowestachievableemissions rate" or "LAER" means, foranysource: 

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(a)1. The most stringent emissions limitation that is contained in the Kentucky SIP for the class orcategory ofstationarysource, unlessthe owneror operatorofthe proposed stationarysourcedemonstratesthatthe limitation is notachievable; or 2. The most stringent emissions limitation achieved in practice bythe ciass orcategory ofstationarysource; (b) Fora majormodification, the lowest achievable emissions rate forthe newor modified emissions units atthe stationarysource; and (c) An emissions limitation thatdoes notexceed the allowable emissions ofan applicablestandard established pursuantto 40 C.F.R Parts 60, 61, or63. (111) "m" means meter. (112) "mJ" means cubic meter. (113) "Majoremissions unif' means: (a) Any emissions unitthatemits or has the potentialtoemit 100tons peryear or more ofa PAL pollutant in an attainment area; or (b) Anyemissions unitthatemits or has the potential to emit a PAL pollutant in an amountthat is equal to orgreaterthan the majorsource threshold forthe PAL pollutantasdefined bythe Clean AirAct, 42 U.S.C. 7401

- 7671q for nonattainmentareas. (114) "Major modification" means a physical change in or a change in the method ofoperation ofa majorstationary sourcethat results in a .significantemissions increase and a significant net emissions increase ofa regulated NSR pollutant. {a) A significant emissions increase from any emissions units or net emissions increase at a major stationary source that is significant for volatile organic compounds or nitrogen oxides is considered significantfor ozone. (b) A physical change or change in the method ofoperation does notinclude: 1. Routine maintenance, repair, and replacement; 2. Use ofalternativefuel orraw material by reason ofan order or a naturalgascurtailment plan in effect undera federal act; 3. Use ofan alternativefuel at a steam generating unittothe extentthatthe fuel is generated from municipal solid waste; 4. Use ofan alternativefuel or raw material bya stationarysourcethat: a. The source was capable ofaccommodating before January 6, 1975, for401 KAR 51 :017, or December 21, 1976, for401 KAR 51 :052; unless the change would be prohibited by a federally enforceable permit condition that was established after January 6, 1975, for 401 KAR 51 :017, or December21, 1976, for401 KAR 51 :052, pursuantto40 C.F.R 51.165 or 51.166; or b. The source is approved to use by a permit issued pursuantto401 KAR 51 :017 or51 :052; 5. An increase in the hours of operation or in the production rate, unless the change is prohibited by any federally enforceable permit condition established after January 6, 1975, for 401 KAR 51 :017 or December 21, 1976, for 401 KAR 51 :052 pursuant to 40 C.F.R 52.21; after June6, 1979, pursuantto 401 KAR 51 :015; after September22, 1982, pursuantto 401 KAR 51 :017; or pursuantto 401 KAR 52:020 and 51:016E; 6. A change in ownership at a stationary source; 7. The installation, operation, cessation, or removal of a temporary clean coal technology demonstration project, if the project complies with the Kentucky SIP and other requirements necessary to attain and maintain the national ambient air quality standards during the project and after it isterminated; 8. The installation oroperation ofa permanent clean coal technology demonstration project thatconstitutes repowering, ifthe projectdoes not result in an increase in the potential to emitofa regulated pollutantemitted by the unit, on a pollutant-by-pollutant basis; or 9. The reactivation ofa very clean coal-fired electric utilitysteamgenerating unit. (c) Instead ofthis definition, the definition for "PAL major modification", in subsection {175) ofthis section, is used for a particular regulated NSR pollutant, ifthe majorstationary source is complying with the requirements of401 KAR 51:017, Section 20, and 401 KAR 51 :052, Section 11, for a PALfor that pollutant. {1 15)"Major NSR permit" means a permit issued under Kentucky's PSD orNSR program. (116) "Major source" means a source with a potential emission rate equal to or greater than 100 tons per year of any one (1) of the following pollutants: particulate matter, sulfur oxides, nitrogen oxides, volatile organiccompounds, carbon monoxide, or ODS. (117) "Majorsource baseline date"means: {a) For PM10 and sulfurdioxide, January 6, 1975; (b) For nitrogen dioxide, February8, 1988; and {c) For PM2

_ 5, October20, 2010. (118) "Majorstationarysource" means: (a)1. A stationary source of air pollutants that emits, or has the potential to emit, 100 tons peryear or more 

### ofa regulated NSR pollutant, exceptthat: a. Forozone nonattainment areas: 100 tons peryear ofmore 

### ofvolatile organic compounds or nitrogen oxides in a marginal or moderate ozone nonattainment area; fifty (50) tons per year or more ofvolatile organiccompounds or nitrogen oxides in a serious ozone nonattainment area; twenty-five (25) tons per year or more ofvolatile organic compounds or nitrogen oxides in a severe ozone nonattainment area; or ten (10) tons peryearor more ofvolatile organic compounds ornitrogen oxides in an extreme ozone nonattainment area; b. Fifty (50) tons per year or more of carbon monoxide in a serious carbon monoxide nonattainment area where stationary sources contribute significantlyto carbon monoxide levels; and c. Seventy (70) tons peryear ormore ofparticulate matter (PM10) in aserious PM10 nonattainment area; or 2.a. Forthe PSD program, any ofthe following stationary sources ofair pollutantsthatemits, or hasthe potential to emit, 100tons peryear or more of a regulated NSR pollutant: fossil fuel-fired steam electric plants of more than 250 million BTU per hour heat input, coal cieaning plants with thermal dryers, kraft pulp mills, Portland cement plants, primary zinc smelters, iron and steel mill plants, primary aluminum ore reduction plants, primary copper smelters, municipal incinerators capable of charging more than 250 tons of refuse per day, hydrofluoric, sulfuric, and nitric acid plants, petroleum refineries, lime plants, phosphate rock processing plants, coke oven batteries, sulfur recovery plants, carbon black plants (furnace process}, primary lead smelters, fuel conversion plants, sintering plants, secondary metal production plants, chemical process plants, except ethanol production facilities producing ethanol by natural fermentation under the North American Industry



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# of13

Classification System (NAICS) codes 325193 or312140, fossil fuel boilers, or combination offossil fuel boilers, totaling more than 250 million BTU per hour heat input, petroleum storage and transfer units with atotal storage capacity exceeding 300,000 barrels, taconite ore processing plants, glassfiber processing plants, and charcoal production plants; and b. Regardless ofthe stationary source size specified in clause a. ofthis subparagraph, a stationary source that emitS, or has the potential to emit, 

### 250 tons peryear or more ofa regulated NSR pollutant; or 3. Any physical change thatwill occurat a stationary source not othetwise qualifying underthis subsection as a majorstationarysource, 

### if the changewill constitute a majorstationarysource by itself; (b) A sourcethat is majorforvolatile organiccompounds or nitrogenoxides is considered majorforozone; and (c) Fugitive emissions are included only ifthe source belongsto one (1) ofthefollowing categories ofstationary sources: 1. Coal cleaning plantswith thermal dryers; 2. Kraft pulp mills: 3. Portland cement plants; 4. Prrmary zincsmelters; 5. Iron and steel mills; 6. Primary aluminum ore reduction plants; 7. Primary coppersmelters; 8. MunicJpal incineratorscapable of charging more than 250tons ofrefuse perday; 9. Hydrofluoric, sulfuric, or nitricacid plants; 10. Petroleum refineries; 11. Lime plants; 12. Phosphate rock processing plants; 13. Cokeoven batteries; 14. Sulfur recovery plants; 15. Carbon blackplants {furnace process); 16. Primary lead smelters; 17. Fuel conversion plants; 18. Sintering plants; 19. Secondary metal production plants; 20. Chemical process plants, exceptethanol production facilities producing ethanol by natural fermentation under NAICS codes 325193 or 312140; 21. Fossil-fuel boilers, orcombination offossil-fuel boilers, totaling morethan 250 million BTUs perhour heat input; 22. Petroleum storage and transfer unitswith a total storage capacityexceeding 300,000 barrels; 23. Taconite ore processing plants; 24. Glassfiber processing plants; 25. Charcoal production plants; 26. Fossilfuel-fired steam electricplants ofmorethan 250 million BTUs perhourheatinput; or 27. Anotherstationary sourcecategorythat, as ofAugust7, 1980, is being regulated under42 U.S.C. 7411 or7412. (119) "Malfunction" means a sudden and infrequentfailure ofair pollution control equipment, process equipment, or a process to operate in a normal or usual manner that is not caused entirely or in part by poor maintenance, careless operation, or other upset condition or equipment breakdownthat is reasonably preventable. {120) "Mandatory Class I area" means an area identified in 40 C.f.R. Part 81, Subpart D, if the administrator of the U.S. EPA, in consultationwith the Secretary ofthe U.S. Departmentof Interior, hasdetermined visibilityto be an importantvalue. (121) "Marginal nonattainment county" or "marginal nonattainment area" means a county or portion of a county designated marginal nonattainmentforthe national ambient airquality standard for ozone. (122) "Maximum design heat inpuf' means the ability of a unit to combust a stated maximum amount offuel per hour on a steady state basis, as determined bythe physical design and physical characteristics ofthe unit. (123) "Maximum potential hour1y heat input" means an hourly heat input used for reporting purposes if a unit lacks certified monitors to report heat input and is: (a) A value calculated according to 40 C.f.R. Part 75 using the maximum fuel flow rate and the maximum gross calor1fic value, ifthe unit intendsto use 40C.F.R. Part 75,Appe11dix D, to report heat input; or {b) A value reported according to 40 C.f.R. Part 75 using the maximum potential flow rate and either the maximum percent C02 concentration (in percentC02) orthe minimum percent 02, ifthe unit intendsto use aflow monitor and a diluents gas monitor. (124) "Maximum potential NOx emission rate" means the emission rate of NOx (in lb per MMBTU) calculated according to 40 C.f.R. Part 75, Appendix F, Section 3, using the maximum potential NOx concentration as defined in 40 C.F.R. Part 75, Appendix A, Section 2, and the maximum percent 0 2 or the minimum percent C02 under all operating conditions of the unit except for unit startup, shutdown, and malfunction. {125) "Maximum rated hourly heat input" means a unit specific maximum hourly heat input (MMBTU) that is the higher of the manufacturer's maximum rated hourly heat inputorthe highest observed hourly heat input. (126)**"~g"** means microgram. (127) "mg" means milligram. {128) "Mid-kiln firing" means the secondary firing in kilns by injecting solid fuel at an intermediate point in the kiln using a specially designed feed injection mechanism forthe purposeofdecreasing NOx emissions through: {a) Burning partofthe fuel at a lowertemperature; and {b) Reducing-conditions atthe solid waste injection pointthat may destroy some ofthe NOx formed upstream in the kiln burning zone. {129) "min" means minute. (130) "Minorsource baseline date" means: (a) The earliest date after the trigger date on which a major stationary source or a major modification subject to permit requirements established pursuantto 40 C.F.R. 52.21 orthe Kentucky SIP submitsa complete application. The trigger date is: 1. August?, 1977, forPM10 and 502, 2. February 8, 1988, for N02; and 3. October20, 2011, for PM2

_ 5;



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## 401 KAR51:001. Definitionsfor401 KARChapter51. Page7of13

(b) For TSP increments, that the originally established date remains in effect to determine the amount of available PM10 increments, 

### unlessthe cabinet rescinds the minorsource baseline date pursuantto 40 C.F.R. 51.166(b)(14)(iv); and (c) Adate established for each pollutantforwhich increments orotherequivalent measures have been established if: 1. The area in which the proposed source or modificationwill construct is designated as attainment or unclassifiable pursuant to 42 U.S.C. 7407(d)(1)(A)(ii) 

### or (iii) 

### for the pollutanton the date ofits complete application pursuantto 401 KARChapter52; and 2. For a majorstationary source, the pollutantwill be emitted in significant amounts or a significant net emissions increase ofthe pollutant will occurfor a major modification. (131) "MJ" means megajoules. (132) "mm" means millimeter. (133) "MM"means million. (134) "mo" means month. (135) "Moderate nonattainment county" or "moderate nonattainment area" means a county or portion of a county designated moderate nonattainmentforthe national ambientairquality standard for ozone. {136) "Modification" means any physical change in, or a change in the method ofoperation of, an affected facility that: {a) Increases the amount ofany air pollutant {to which a standard applies) emitted into the atmosphere bythatfacility orthat results in the emission ofany air pollutant{to which astandard applies) into the atmosphere not previously emitted; and {b) Is not solely: 1. Maintenance, repair, and replacementthatthe cabinet detenninesto be routine for a source category considering available infonnation: 2. An increase in production rate ofan affected facility, ifthat increase can be accomplished without a capital expenditure on thatfacility; 3. An increase in the hours ofoperation; 4. Use ofan alternative fuel or raw material if, priorto the date astandard becomes applicable to that sourcetype, the affected facility was designed to accommodate that alternative use. A facility is considered to be designed to accommodate an alternative fuel or raw material if that use could be accomplished underthefacility's construction specification as amended priorto the change; 5. Conversion to coal required for energy considerations, as specified in 42 U.S.C. 7411 (a}{B); 6. The addition or use of a system or device the primary function of which is the reduction of air pollutants, unless an emission control system is removed or replaced by a system thatthe cabinet determines to be less environmentally beneficial; or 7. The relocation or change in ownership ofasource. (137) "Monitoring device" means the total equipment, required by an applicable administrative regulation in 401 KAR Chapters 50 to 65, used to measure and record, ifapplicable, process parameters. (138) "Monitoring system" means a monitoring system that meets the requirements ofany applicable administrative regulation in 401 KAR Chapters 50 to 65. {139} "MWe" means megawattelectrical. {140} "N2 ., means nitrogen. {141) "Nameplate capacity" meansthe maximum electrical generating output (in MWe) thata generatorcan sustain overa specified period oftime if not restricted by seasonal orotherderatingsas measured with United States Department ofEnergy standards. {142) "Natural conditions" means those naturally occurring phenomena that reduce visibility as measured in tenns of visual range, contrast, or coloration. (143) "Necessary preconstruction approvals or permits" means those pennits or approvals required under the administrative regulations approved to the Kentucky SIP pursuant to 40 C.F.R. 52.920, and federal air quality control laws and regulations established pursuant to 42 U.S.C. 7401 -7671q. {144) "Netemissions increase" means: {a) For any regulated NSR pollutantemitted by a major stationary source, the amount bywhich the sum ofsubparagraphs 1 and 2 ofthis paragraph exceeds zero: 1. An increase in emissions from a particular physical cl1ange or cl1ange in method of operation at a stationary source as calculated pursuantto 401 KAR 51:017, Section 1(4), or401 KAR 51:052, Section 1(2); and 2. 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 underthis paragraph are determined asdefined in thissection. (b) An increase ordecrease in actual emissions is contemporaneouswith the increasefrom the particularchange only if: 1. For construction that commences prior to January 6, 2002, the change occurs between the date ten (10) years before construction on the change commences and the datethatthe increase from the change occurs; and 2. For construction that commences on and afterJanuary 6, 2002, the change occurs between the date five (5) years before construction on the change commences and the datethatthe increase from the change occurs. ·(c)An increase ordecrease in actual emissions is creditable only if:

1. The cabinet orthe U.S. EPA has not relied on the change in issuing a penni!forthe source pursuantto401 KAR 51:017, 51:052, or 40 C.F.R. 52.21; and 2. The permit is in effect atthe time the increaseordecrease in actual emissions from the particularchange occurs. (d) An increase ordecrease 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. For particulate matter, only PM10 emissions are used toevaluate the net emissions increasefor PM10. (e) An increase in actual emissions is creditable only tothe extentthatthe new level ofactual emissions exceeds the old level. (f) A decrease in actual emissions is creditable onlyto the extentthat: 1. The old level ofactual emissionsorthe old level ofallowable emissions, whichever is lower, exceeds the new level ofactualemissions; 2. The decrease is enforceable asa practical matterat and afterthetimethatactual construction on the particularcl1ange begins; and 3. The decrease has approximately the same qualitative significance for public health and welfare as that attributed to the increase from the particularcl1ange. (g) An increase that results from a physical change at a source occurs if the emissions unit on which construction occurred becomes operational and beginsto emit a particular pollutant. A replacement unitthat requires shakedown becomes operational onlyafter a reasonable shakedown period, notto exceed 180days. {h) The term, actual emissions, as defined in subsection {2) of this section does not apply in detennining creditable increases and decreases. {145) "New source" means a source, the construction, reconstruction, or modification ofwhich commenced on or after the classification date as defined in the applicable administrative regulation, irrespectiveofa change in emission rate. (146) "Nitrogen oxides" means all oxides ofnitrogen except nitrous oxide, as measured by test methods specified in the Kentucky SIP.



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## 401 KAR

## 51:001.Defmitionsfor401 KAR

## Chapter51.

(147) 

### "ng" means nanograms. (148) "NO" means nitricoxide. (149) "N02"

### means nitrogen dioxide. 

## Page 8of13

(150) "Nonattainment majornew source review program"or"NSR program" is defined by40 C.F.R. 51.165{a)(1}(xxx). For purposes ofthis definition, "administrator" meansthe U.S. EPA. (151) "NOx" means nitrogen oxides. (152) "NOx allowance" is defined by 40 C.F.R. 96.2. (153) "NOxAllowance Tracking System" or"NATS" is defined by40 C.F.R. 96.2 For purposes ofthis definition, "administrator'' meansthe U.S. EPA. (154) "NOx authorized account representative" isdefined by 40 C.F.R. 96.2. 

### (155) "NOx budget emissions limitation" means, for a NOx budget unit, the tonnage equivalent of the NOx allowances available for compliance deduction for the unit and for a control period under 401 KAR 51:160 adjusted by deductions of sufficient NOx allowances to accountfor: (a) Actual utilization under40 C.F.R. 96.42(e) forthecontrol period; (b) Excess NOx emissionsfora priorcontrol period under40 C.F.R. 96.54(d}; (c) Withdrawalfromthe NOx budgetprogram under40 C.F.R. 96.86; or (d) A change in regulatory status for a NOx budget opt-in source under40 C.F.R. 96.87. (156) "NOx budgetopt-in source" means an affected facility that has elected to become a NOx budget unit underthe NOx Budget Trading Program and whose NOx budgetopt-in permit has been issued and is in effect. (157) "NOx budget source" is defined by40 C.F.R. 96.2. (158) "NOx BudgetTrading Program" is defined by 40 C.F.R. 96.2. (159) "NOx budget unit" means a unitthat is subjecttothe NOx BudgetTrading Program emissions limitation under401 KAR 51:160 or40 C.F.R. 96.80. (160) "NOx budget unit operator'' means a person who operates, controls, or supervises a NOx budget unit, a NOx budget source, or a unit for which an application for a NOx budget opt-in permit under401 KAR 51:195 is submitted and not denied orwithdrawn and includes a holding company, utility system, or plant managerofa NOx budgetunit orsource. (161) "NOx budget unitowner" means: (a) A holder of a portion ofthe legal or equitable title in a NOx budget unit or in a unit forwhich an application for a NOx budget opt-in permit under401 KAR 51:195 is submitted and notdenied orwithdrawn; (b) A holderofa leasehold interest in a NOx budget unitor in a unitfor which an application fora NOx budgetopt-in permit under401 KAR 51:195 is submitted and notdenied orwithdrawn; (c) A purchaser of power from a NOx budget unit orfrom a unit for which an application for a NOx budget opt-in permit under401 KAR 51:195 is submitted and not denied orwithdrawn under a life-of-the-unit, firm power contractual arrangement and unless expressly provided for in a leasehold agreement, does not include a passive lessor, or a person who has an equitable interest through the lessor, whose rental payments are not based, either directly or indirectly, upon the revenues or income from the NOx budget unit or the unit for which an applicationfora NOx budgetopt-in permit under401 KAR 51:195 is submitted and notdenied orwithdrawn; or (d) For any general account, a person who has an ownership interest with respectto the NOx allowances held in the general account and who issubjecttothebinding agreementfor the NOx authorized account representativeto representthat person's ownership. (162) "02" means oxygen. (163) "03" means ozone. (164) "Opacity" means the degree to which emissions reduce the transmission of light and obscure the view of an object in the background. (165) "Operating" means, fora NOx budget unit, having documented heat inputfor more than 876 hours in the six (6) months immediately precedingthe submission ofan applicationforan initial NOx budget permit. (166) "Operator'' means, for a NOx budget unit, any person who operates, controls, or supervises a NOx budget unit, a NOx budget source, or unit for which an application for a NOx budget opt-in permit is submitted and not denied or withdrawn, and includes any holding company, utility system, or plantmanagerofthe unit orsource. (167) "Opt-in" means to 

### be elected to become a NOx budget unit underthe NOx BudgetTrading Programthrough a final NOx budget optin permit. {168} "Owner", fora NOx budget unit, isdefined by 40 C.F.R. 96.2. {169) "Owneroroperator" means a personwho owns, leases, operates, controls, orsupervises an affected facility ora source ofwhich an affected facility is a part. (170) "oz" means ounce. (171) "Ozone depleting potential" or "ODP", means pursuant to 40 C.F.R. Part 82, Subpart A, Appendices A and B, the ratio ofthe total amount of ozone destroyed by a fixed amount of an ozone depleting substance to the amount of ozone destroyed by the same mass of trichlorofluoromethane (CFC-11) in which the ozone depleting potential ofCFC-11 is equal to one and zero-tenths (1.0). (172) "Ozone depleting substance" or "ODS" means any chemical compound regulated under40 C.F.R. Part 82 with decay products, after the photolysisofthe ODS by short-wave ultraviolet light, thatare able to catalyze the destruction ofstratosphericozone. (173) "PALeffective date" means: (a) The date ofissuance ofthe PAL permit; or (b) For an increased PAL, the date any emissions unit that is part ofthe PAL major modification becomes operational and begins to emit the PALpollutant. (174) "PALeffectiveperiod" meansthe period beginning with the PALeffective date and ending ten (10) years later. (175) "PAL major modification" means any physical change in or a change in the method of operation ofthe PAL source that causes it to emitthe PAL pollutantat a level equalto orgreaterthan the PAL. (176) "PAL permit" means the permit issued bythe cabinetthatestablishes a PALfor a majorstationary source. (177} "PAL pollutant" meansthe pollutantforwhich a PALis established at a majorstationary source. (178) "Particulate matter" means a material, except uncombinedwaterthatexists in afinely dividedform asa liqui(! or solid measured by a U.S. EPA-approved test method oratest method approved in the Kentucky SIP. (179) "Particulate matter emissions" means, except as used in 40 C.F.R. Part 60, all finely divided solid or liquid material, other than uncombined water, emitted to the ambient air as measured by applicable reference methods, or an equivalent or alternative method specified in 40 C.F.R. Chapter I, or by atest method specified in the Kentucky SIP. (180) "Peak load" means the maximum instantaneousoperating load. {181) "Permitted capacityfactor" meansthe annual permitted fuel use divided by the manufacturers specified maximum fuel consumption



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## 401 KAR51:001.Definitionsfor 401 KARChapter51. Page9of13

multiplied by 

### 8,760 hours peryear. (182) "Person" is defined by KRS 224.01-010(17). (183) "Plant-wide applicability limitation" or "PAL" means an emission limitation, expressed in tons per year, for a pollutant at a major 

### stationary source, that is enforceable as apractical matterand is established source-wide in accordance with 401 KAR 51:017 or51:052. (184} "PM2 :5" 

### means particulate matter with an aerodynamic diameter less than or equal to a nominal two and five-tenths (2.5) micrometers as measured by a reference method in 40 C.F.R. Part 50, Appendix L, and designated in accordance with 40 C.F.R. Part 53, or by an equivalent method designated in accordancewith 40C.F.R. Part 53. (185) "PM10" 

### means particulate matterwith an aerodynamic diameter less than or equal to a nominal ten (10)-micrometers as measured by a reference method in 40 C.F.R. Part 50, Appendix 

### J, and designated in accordance with 40 C.F.R. Part 53, or by an equivalent method designated in accordancewith 40 C.F.R. Part 53. (186) "PM10 emissions" means finely divided solid or liquid material with an aerodynamicdiameter lessthan orequal to a nominalten (10) micrometers emitted to the ambientair as measured by an applicable reference method, oran equivalentoralternative method specified in 40 C.F.R. Chapter I, or bya test method specified in the Kentucky SIP_ (187) "Pollution prevention" is defined by 40 C.F.R. 51.166(b)(38). (188) "Portland cemenf' means a hydrauliccement produced by pulverizing clinker consisting essentially ofhydrauliccalcium silicates. (189) "Portland cement kiln" means a system, including solid, gaseous or liquid fuel combustion equipment, used to calcite and fuse raw materials, including limestone and clay, to produce Portland cement clinker. (190) "Potentialto emit"or"PTE" means: (a) The maximum capacity ofa stationary sourceto emit a pollutant under its physical and operational design, in which: 1. 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, is treated as part of its design ifthe limitation is enforceable as a practical matter; and 2_ This definition does not alter oraffect the use ofthis term for other purposes ofthe Clean AirAct, 42 U.S.C. 7401

- 7671q, orthe term "capacityfactor" as used in the Acid Rain Program. (b) For the PSD and NSR programs, the maximum capacity of a stationary source to emit a pollutant under its physical or operational design, in which: 1. A 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, is treated as part of its design ifthe limitation orthe effect itwould have on emissions: a. Is federally enforceable; or b. Foran actual PAL, is·federally enforceable or enforceableas a practical matter; and 2. Secondaryemissions are notcounted. (191) "ppb" means parts perbillion. (192} "ppm" means parts per million. (193) "ppm{w/w)" means parts per million (weight by weight). (194) "Precalciner kiln" means a kiln in which the feed to the kiln system is preheated in cyclone chambers and utilizes a second burnerto calcine material in a separate vessel attached to the preheater priorto thefinal fusion in a kiln thatforms clinker. (195) "Predictive emissions monitoring system" or"PEMS" is defined by40 C.F.R. 51.166(b)(44). (196) "Preheater kiln" means a kiln in which the feed to the kiln system is preheated in cyclone chambers priorto the final fusion in a kiln that forms clinker. (197) "Prevention ofSignificant Deterioration Program" or "PSD Program" means a major source preconstruction program that has been approved by the U.S. EPAand incorporated intothe Kentucky SIP to implementthe requirements of40 C.F.R. 51.166 or 52.21. (198) "Project" means a physical change in or change in method ofoperation ofan existing majorstationary source. (199) "Projected actual emissions" means: (a) The maximum annual rate, in tons peryear, at which an existing emissions unit is projected to emit a regulated NSR pollutant in any one (1) ofthefive (5) years, in atwelve (12) month period, following the datethe unit resumes regular operation afterthe project, orin anyone (1) oftheten (10) yearsfollowing thatdate, if: 1. The project involves increasing the emrssions unit'sdesign capacity orits potentialtoemilthe regulated NSR pollutant; and 2. Full utilization ofthe unit would result in a significant emrssions increase or a significant net emissions increase at the major stationary source; or (b) The maximum annual rate, in tons per year, at which an emissions unit, before beginning actual construction, is projected 

### to emit a regulated NSR pollutant, ifthe source: 1.a. Considers all relevant information, including historical operational data and the company's own representations of expected and highest projected business activity, filings withthe cabinet and the U.S. EPA, and compliance plans underthe Kentucky SIP; b. Includesfugitive emissions and emissions associated with startups, shutdowns, and malfunctions; and c. Excludes, in calculating any increase in emissions that results from a project, that portion of the unit's emissions following the project that an existing unit could have accommodated during the consecutive twenty-four (24) month period used to establish the baseline actual emissions and thatare also unrelatedto the project, including any increased utilization due to productdemand growth; or 2. Elects to use the emissions unit's potential to emit, in tons per year, instead of using subparagraph 1. ofthis paragraph to determine projected actualemissions. (200) "psia" means pounds persquare inch absolute. (201) "psig" means pounds persquare inch gage. (202) "RACT/BACT/tAER Clearinghouse" or "RBLC" means the U.S. EPA's online collection of previous RACT/BACT/LAER determinations. (203) "Reactivation ofavery clean coal-fired EUSGU" is defined by 40 C.F.R. 51.166(b)(37). (204) "Reasonablefurther progress" is defined by42 U.S.C. 7501(1). For purposes ofthis definition, "administrator'' meansthe U.S. EPA. (205) "Reconstruction" meansthe replacement ofcomponents ofan existing affectedfacility tothe extentthat: (a) The fixed capital cost ofthe new components exceeds fifty (50) percent ofthe frxed capital cost that would be required to construct a comparable entirely new affected facility; and (b) It istechnologically and economicallyfeasible to meetthe applicable requirements of401 KAR Chapters 50to 65. (206) "Reference method" means a method ofsampling and analyzing for an air pollutant as published in 40 C.F.R. Part 50, AppendicesA toN; 40 C.F.R Part 53; 40 Part 60, AppendicesA and B; 40 C.F.R Part 61, Appendix B; or 40 C.F.R. Part63, AppendicesA to D. (207) "Regulated NSR pollutant" means: (a) For401 KAR51:017:



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## 401 KAR51:001. Definitionsfor401 KARChapter 51. Page 10 of13

1. A pollutantfor which a national ambient air quality standard has been promulgated and the following constituents or precursors to that 

### pollutant: a. Volatile organic compounds and nitrogen oxides are precursors to ozone in all attainment and unclassifiable areas; 

### b. Sulfurdioxide is aprecursorto PM2 5in all attainment and unclassifiable areas; c. Nitrogen oxides are presumed to be precursors to PM2

_ 5in all attainment and unclassifiable areas unless the Cabinet demonstrates to the EPA administrator's satisfaction or EPA demonstrates that emissions of nitrogen oxides from sources in a specific area are not a 

### significant contributorto that area's ambient PM2

_ 5concentrations; d. Volatile organic compounds are presumed not to be precursors to PM2

_ 5 in an attainment or unclassifiable area unless the Cabinet demonstrates to the EPA administrator's satisfaction or EPA demonstrates that emissions ofvolatile organic compounds from sources in a specific area are a significantcontributorto thatarea's ambient PMz.s concentrations; and



### e. PM2.5emissions and PM10 emissions indude gaseous emissions from a source or activity that condense to form particulate matter at ambienttemperatures; (i) On or after January 1, 2011, condensable particulate matter is included in applicability determinations and in establishing emissions limitations for PM2

_ 5and PM10 in permits issued pursuantto 401 KAR 51 :017; (ii} Compliance with emissions limitations for PM2

_ 5and PM10 issued prior to January 1, 2011, is not based on condensable particulate matter unless required bythe terms and conditions ofa permit; and (iii) Applicability determinations made priorto January 1, 2011, without accounting for condensable particulate matterare notconsidered in violation ofthissection; 2. A pollutantsubjectto a standard promulgated under42 U.S.C. 7411; 3. A pollutantsubjectto a standard promulgated underorestablished by42 U.S.C. 7671 to 7671q; or 4. A pollutantthat otherwise is subjectto regulation, as defined in subsection (231) ofthis section, under42 U.S.C. 7401 to 7671q, except that any hazardous air pollutant (HAP) listed in 42 U.S.C. 7412 or added to the list pursuant to 42 U.S.C. 7412(b)(2), that has not been delisted pursuant to 42 U.S.C. 7412(b)(3), is not a regulated NSR pollutant unless the listed HAP is also regulated as a constituent or precursorofa general pollutant listed under42 U.S.C. 7408; or (b) For401 KAR51:052: 1 Nitrogen oxides orvolatile organic compounds; or 2. A pollutantforwhich a national ambient air quality standard has been promulgated and the following constituents or precursors to that pollutant: a. Volatile organiccompounds and nitrogen oxides are precursors to ozone in all ozone nonattainment areas; b. Sulfurdioxide is a precursorto PM2

_ 5in all PM2

_ 5nonattainment areas; c. Nitrogen oxides are presumed to be precursors to PMz.s in all PMz.s nonattainment areas unless the Cabinetdemonstratesto the EPA Administrator's satisfaction or EPA demonstrates that emissions of nitrogen oxides from sources in a specific area are not a significant contributorto thatarea'sambient PM2

_ 5concentrations; d. Volatiie organic compounds and ammonia are presumed not to be precursors to PM2

_ 5 in a PM2 5 nonattainment area unless the Cabinet demonstrates to the EPAAdministrator's satisfaction or EPA demonstrates thatemissions ofvolatile organiccompounds or ammonia from sources in a specificarea are a significantcontributorto that area's ambient PM2

_ 5concentrations; and



### e. PM2

_ 5emissions and PM10 emissions include gaseous emissions from a source or activity that condense to form particulate matter at ambienttemperatures; (i) On or after January 1, 2011, condensable particulate matter is included in applicability determinations and in establishing emissions limitationsfor PM2

_ 5and PM10 in permits issued pursuantto 401 KAR 51:052; (ii) Compliance with emissions limitations for PM2

_ 5and PM10 issued prior to January 1, 2011, is not based on condensable particulate matter unless required by theterms and conditions ofa permit; and (iii) Applicability determinations made priorto January 1, 2011, without accounting for condensable particulate matterare notconsidered in violation ofthissection. (208} "Replacement unit" means an emissions unit that does not generate creditable emissions reductions by shutting down the existing emissions unitthat is replaced, and that: (a)1 Is a reconstructed unitwithin the meaning of40 C.F.R. 60.15(b){1) orthat completely takesthe place ofan existing emissions unit; 2. Is identical to orfunctionally equivalentto the replaced emissions unit; and 3. Does notalterthe basicdesign parameters ofthe process unit. {b) Replaces a unitthat: 1. Is permanently removed from the majorstationary source, is otherwise permanentlydisabled, or is prohibited from operating by a permit that is enforceableas a practical matter; and 2. If brought back into operation, is considered a new emissions unit. (209) "Repowering" is defined by 40 C.F.R. 51.166(b)(36). (210) "Responsibleofficial" means: (a) For a corporation: a president, secretary, treasurer, or vice-president of_lhe corporation in cl1arge of a principal business function, or other person who performs similar policy or decision-making functions forthe corporation, or a duly authorized representative ofthat person if the representative is responsible for the overall operation of one (1) or more manufacturing, production, or operating facilities applying for or subjectto a permit; and 1 Thefacilities employ morethan250 persons or have gross annual sales or expendituresexceeding $25,000,000 in second quarter 1980 dollars; or 2. The delegation ofauthorityto the representative is approved in advance by the cabinet pursuanttothis subsection; (b) Fora partnershiporsole proprietorship, a general partnerorthe proprietor, respectively; (c) Fora municipality, state, federal, or other public agency. a principal executive officeror ranking elected official. The principal executive officerofafederal agency includesthe cl1iefexecutive officer having responsibility forthe overall operation ofa principal geographic unitofthe 

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## 401 KAR51:001. Defmitionsfor 401 KARChapter51. Pagellof13

agency: or (d) Forthe acid rain portion ofa permitforan affected source, thedesignated representative. (211) "Run" meansthe net period oftime, either intermittent or continuous within the limits ofgood engineering practice, when an emission 

### sample is collected. (212) "S" 

### means at standard conditions. (213) 

### "sec" means second. 

### (214) "Secondaryemissions" means emissionsthat: (a) Occuras a result ofthe construction or operation ofa major stationary source or major modification, and do not come from the major stationary source ormajormodification 1tself; 

### (b) Are specific, well defined, quantifiable, and impact the same general area as the stationary source modification that causes the secondaryemissions: (c) Include emissions from an offsite support facility that would not otherwise be constructed or increase its emissions as a result ofthe construction oroperation ofthe majorstationarysource or majormodification; and {d) Do not include emissions that come directly from a mobile source, including emissions from the tailpipe of a motorvehicle, a train, or vessel. (215) "Serious nonattainment county" or "serious nonattainment area" means a county or portion of a county designated serious nonattainmentforthe national ambientairquality standard for ozone. (216) "Severe nonattainment county" or "severe nonattainment area" means a county or portion of a county designated severe nonattainmentforthe national ambientairqualitystandard for ozone. (217) "Shutdown" meansthecessation ofan operation. (218) "Significanr• means: (a} For 401 KAR 51:017, in reference to a net emissions increase or the potential of a source to emit any ofthe pollutants listed in the following table, a rate ofomii'

### ''''""'"two~~~~

•Nitrogen ox1de emissions are evaluated unless demonstrated not to be a PM25 precursor pursuant to subsection (207)(a)1.c. of this section. (b) For401 KAR 51:017, in reference to a net emissions increase or the potential ofa source to emit a regulated NSR pollutantthat is not listed in thetable in paragraph (a) ofthissubsection, anyemissions rate; (c) For401 KAR 51:017, in referenceto an emissions rate or a netemissions increase associated with a major stationary source ormajor modification, that is to be constructed within ten (10) kilometers of a Class 1area, an impact on that area equal to or greater than one (1) )J.g/m3overa twenty-four (24) houraverage; (d) For 401 KAR 51:052, in reference to a net emissions increase or the potential of a source to emit any of the pollutants listed in the following table, a rate ofemissionsthatwould equal orexceed a correspondinq rate listed in the table: I I 

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## 401 KAR51:001.Definitionsfor 401 KARChapter51. Page 12 of13

"Nitrogen oxide emissions are evaluated unless demonstrated not to be a PM2

_ 5 precursor pursuant to subsection (207)(b)2.c. of this 

### section. (e) For401 KAR 51:052, with the exception ofthe significant emissions rate for ozone in this subsection, significant means, in reference to an emissions increase or netemissions increase, a rate ofemissionsthatexceeds the following: 1. Twenty-five (25) tons peryear ofvolatile organiccompounds or nitrogen oxides in a serious or severe ozone nonattainment area; or 

### 2. An increase in actual emissions ofvolatile organic compounds or nitrogen oxides in an extreme ozone nonattainmentarea; or (f) For 401 KAR 51:052, with the exception ofthe significant emissions rate for carbon monoxide in this subsection, significant means, in reference to an emissions increase or net emissions increase, a rate of emissions of carbon monoxide that equals or exceeds fifty (50) tons peryear in a serious nonattainment areaforcarbon monoxide in which a stationary sourcecontribute significantlyto carbon monoxide levels. (219) "Significant emissions increase" means, for a regulated NSR pollutant, an increase in emissions that is equal to orgreaterthan the emission level that issignificantfor that pollutant. (220) "Significantemissions unit" means an emissions unitthatemits or hasthe potential to emit a PAL pollutant in an amountequal to or greaterthan the applicable significant level as defined in subsection (218) ofthis section orin 42 U.S.C. 7401 to 7671q, whichever is lowerfor that PAL pollutant, but lessthan the amountthatwould qualifythe unitas a majoremissions unit. (221) "Small emissions unit" means an emissions unit thatemits or has the potential to emrt the PAL pollutant in an amount less than the PAL pollutant's applicable significant level as defied in subsection (218) ofthis section; or in 42 U.S.C. 7401 to 7671q, whichever is lower. (222) "S02" means sulfurdioxide. (223) "Source" means one (1) or more affected facilities contained within a given contiguous property line, which means the property is separated only by a publicthoroughfare, stream, or other right ofway. (224) "sq" means square. (225) "Stack or chimney" means aflue, conduit, or duct arrangedto conduct emissionsto the atmosphere. (226) "Standard" means an emission standard, a standard ofperformance, oran amb1ent airquality standard as promulgated in 401 KAR Chapters50to 65 orthe emission control requirements necessarytocomplywith 401 KAR Chapter 51. (227) "Standard conditions" means: (a) For source measurements, twenty (20) degrees Celsius (sixty-eight (68) degrees Fahrenheit) and a pressure of760 mm Hg (29.92 in. ofHg); or (b) For air quality determinations, twenty-five (25) degrees Celsius (seventy-seven (77) degrees Fahrenheit) and a reference pressure of 760 mm Hg (29.92 in. of Hg). (228) "Start-up" or "startup" meansthe setting in operation ofan affectedfacility. (229) "State implementation plan" or "SIP" means the most recently prepared plan or revision required by 42 U.S.C. 7410 that has been approved by the U.S. EPA. (230) "Stationary source" means a building, structure, facility, or installation that emits or has the potential to emit a regulated NSR pollutant. (231) "Subjectto regulation" isdefined by 40 C.F.R 51.166(b)(48). (232) "Submit" meansto send ortransmita document, information, or correspondence in accordancewith an applicable requirement. (233) ''TAPPI" meansTechnicalAssociation ofthe Pulp and Paper Industry. (234) ''Temporary dean coal technology demonstration project" isdefined by40 C.F.R 51.166(b)(35). (235) "Ton" or "tonnage", for a NOx budget source, means a shortton or 2,000 pounds. Fordetermining compliance with the NOx budget emissions limitation, total tons for a control 'period is calculated as the sum ofall recorded hourly emissions, orthe tonnage equivalent ofthe recorded hourly emissions rates, in accordancewith 40 C.F.R Part 96, Subpart H with any remaining fraction ofaton equal to orgreaterthan 0.50ton deemed to equal one (1) ton and anyfraction ofa ton lessthan 0.50ton deemed to equal zero tons. (236) ''Total suspended particulates" or ''TSP" means particulate matter as measured by the method described in 40 C.F.R Part 50, Appendix B. (237) "tpy" meanstons peryear. (238) "TSS" meanstotal suspended solids. (239) "Uncombined water'' means water that can be separated from a compound by ordinary physical means and that is not bound to a compound by internal molecularforces. (240) "Unif' means afossil fuel-fired stationary boiler, combustion turbine, orcombined cycle system. (241) "Urban county" means a county that is a part of an urbanized area with a population greater than 200,000 based upon the 1980 census. Ifa portion ofa county is a partofan urbanized area, then the entire county is classified as urban for 401 KAR Chapters 50 to 65. (242) "Urbanized area" means an area defined by the U.S. DepartmentofCommerce, Bureau ofCensus. (243) "U.S. EPA" meansthe United States Environmental Protection Agency. (244) "UTM" means Universal Transverse Mercator. (245) "VIsibility impairment" is defined by 40 C.F.R. 51 .301. (246) 'Volatile organiccompound" or "VOC" is defined by 40 C.F.R 51.1OO(s). (247) "yd" meansyard. Section 2. Incorporation by Reference. (1) Thefollowing material is incorporated by reference: (a) "North American IndustryClassification System", 2007, as published bythe Office ofManagementand Budget: and



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## 401 KAR51:001. Definitionsfor 401 KARChapter 51. Page 13 of13

(b) "Standard Industrial Classification Manual", 1987, aspublished by theOffice ofManagement and Budget. (2) This material maybe inspected, copied or obtained, subjectto applicable copyright law, atthe following main and regional offices ofthe Kentucky DivisionforAirQuality duringthe normalworking hoursof8 a.m. to 4:30 p.m., local lime: {a) Kentucky Division forAirQuality, 200 FairOaks Lane, 1 slfloor, Frankfort, Kentucky 40601-1403, (502) 564-3999; {b) Ashland Regional Office, 1550Wolohan Drive, Suite 1, Ashland, Kentucky41102, (606) 929-5285; {c) Bowling Green Regional Office, 1508Westen Avenue, Bowling Green, Kentucky 42104, {270) 746-7475; (d) Florence Regional Office, 8020Veterans Memorial Drive, Suite 110, Florence, Kentucky41042, (859) 525-4923; (e) Frankfort Regional Office, 200 FairOaks Lane, Third Floor, Frankfort, Kentucky 40601, (502) 564-3358; (f) Hazard Regional Office, 233 Birch Street, Suite 2, Hazard, Kentucky 41701, (606) 435-6022; (g) London Regional Office, 875 S. Main Street, London, Kentucky 40741, {606) 330-2080; (h) OWensboro Regional Office, 3032Alvey Park Drive, W., Suite 700, Owensboro, Kentucky 42303, {270) 687-7304; and (i) Paducah Regional Office, 130 Eagle Nest Drive, Paducah, Kentucky 42003, (270) 898-8468. (3) The Standard Industrial Classification Manual is also available underOrder No. PB 87-100012from the National Technical Information Service, 5285 Port Royal Road, Springfield, Virginia 22161, phone (703) 487-4650. (18 Ky.R. 2737; Am. 2930; 3335; eff. 6-24-1992; 21 Ky.R. 1757; 2137; eff. 4-6-1995; 22 Ky.R. 1691; 2014; eff. 6-6-1996; 25 Ky.R.1442; eff. 4-14-1999; 27 Ky.R. 2557; 3270; 38 Ky.R. 367; eff. 8-15- 2001; 29 Ky.R. 538; 1600; eff. 12-18-2002; 30 Ky.R. 2176; 2487; 31 Ky.R. 34; eff. 7-14-2004; 33 Ky.R. 197; eff. 11-8-2006; 36 Ky.R. 867; 1247; 1462; eff. 2-5-2010; 37 Ky.R. 452; 

### Am. 1222; eff. 1-3-2011; 39 Ky.R. 113; 783; 971; eff. 12-7-2012.)



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## 401 KAR51 :017. Preventionofsignificantdeteriorationofair

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401 KAR 51:017. Prevention ofsignificantdeterioration ofairquality. RELATES TO: KRS 224.10-100, 40 C.F.R. 51 Subpart I, Appendix S, sec. IV, Part51, AppendixW, 51.166, 52.21, 52.26, 53, 58 Appendix A, 60, 61, 63, 70.6, 81.318,81 SubpartO, 42 U.S.C. 7401-7671q STATUTORYAUTHORITY: KRS 224.10-100(5}, 40 C.F.R. 51.166, 42 U.S.C. 7401-7671q NECESSITY, FUNCTION, AND CONFORMITY: KRS 224.10-100(5} requires the cabinet to promulgate administrative regulations for the prevention, abatement, and control of air pollution. This administrative regulation provides for the prevention of significant deterioration of ambientairquality. The provisionsofthis administrative regulation are not more stringent than the corresponding federal requirements. Section 1 Applicability. (1} This administrative regulation shall applytotheconstruction ofa new majorstationary source or a project at an existing major stationary source that commences construction after September 22, 1982, and locates in an area designated attainment or unclassifiable under42 U.S.C. 7407(d)(1)(A)(ii) and (iii). (2) Except as otheiWise provided in this administrative regulation, the provisions ofSections 8 to 16ofthis administrative regulation shall applyto the construction ofa new major stationary source or a major modification ofan existing majorstationarysource. (3} The owner or operatorofa new majorstationary source or major modification, which is subjectto the requirements ofSections 8to 16 of this administrative regulation, shall not begin actual construction without a proposed permit or proposed permit revision issued under 401 KAR 52:020 slating thatthe majorstationary source ormajor modification shall meetthose requirements. (4) Applicability tests for projects. Except as provided in subsection (5) of this section, a project shall 

### be a major modification for a regulated NSR pollutant only if the project causes a significant emissions increase and a significant net emissions increase as provided in paragraphs (a) and (b) ofthissubsection. (a) Prior to beginning actual construction, the owner or operator shall first determine if a significant emissions increase will occurfor the applicabletype ofunitbeing constructed according to subparagraphs 1to 3 

### of this paragraph. 1. Actual-to-projected actual applicability test for projects that only involve existing emissions units. A significant emissions increase ofa regulated NSR pollutant shall be projected to occur ifthe sum ofthe difference between the projected actualemissionsandthe baseline actual emissionsfor each existing emissions unitequals or exceedsthe significantamountforthat pollutant. 2. Actual-to-potential test for projectsthat involve only construction ofnew emissions units. A significant emissions increase ofa regulated NSR pollutant shall be projected to occur if the sum ofthe potential to emit from each new emissions unit following completion ofthe project equals or exceedsthe significant amountforthat pollutant. 3. Hybrid testfor projectsthat involve multiple types ofemissions units. A significantemissions increase ofa regulated NSR pollutant shall be projected to occur ifthe sum oftheemissions increasesfor each emissions unit, using a method specified in subparagraphs 1and 2 ofthis paragraph as applicable for each emissions unit, equals or exceedsthe significant amountforthat pollutant. (b) Priorto beginning actual construction and aftercompleting the applicable procedure established in paragraph (a) ofthe subsection, the owner or operator shall determine for each regulated NSR pollutant if a significant net emissions increase will occur pursuant to 401 KAR 51:001, Section 1(144) and (218). (5) For a plant-wide applicability limit (PAL) for a regulated NSR pollutant at a major stationary source, the owner or operatorofthe major stationary source shall complywith the applicable requirements ofSection 20 ofthisadministrative regulation. designated as Class I or II, increases in pollutant concentration over the baseline

,24-hourmaximum

, annual arithmetic mean

, 24-hourmaximum

(2) For any period otherthan an 

### II 

### I I may exceeded during one (1) sucll period



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## 401 KAR 51 :017. Preventionofsignificantdeteriorationofairquality. 

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Section 3. Ambient Air Ceilings. The concentration of a regulated NSR pollutant shall not exceed the concentration allowed under the national secondary .ambient air quality standard or under the national primary ambient a1r quality standard, whichever concentration is lower for the pollutantfor

# aperiod of exposure. Section 4. Restrictions on Area Classifications. (1) The following areas, which were in existence on August 7, 1977, shall be Class I areas and shall not be redesignated: (a) International parks; (b) Nationalwilderness areas and national memorial parksthatexceed 5,000 acres in size; and {c) National parksthat exceed 6,000 acres in size_ (2) Any other area, unless otherwise specified in the legislation creating the area, shall be designated Class II but may 

### be redesignated as provided in 40 C.F.R. 51 166(g). (3) The visibility protection requirements ofthis administrative regulation shall apply only to sources that may impact a mandatory Class I federal area. (4) Thefollowing areas may be redesignated onlyas Class I or II: {a) An area that as ofAugust 7, 1977, exceeded 10,000 acres in size and was a national monument, a national primitive area, a national preserve, a national recreational area, a national wild and scenic river, a nationalwildlife refuge, a national lakeshore or seashore; and (b) A national parkornational wilderness area established afterAugust7, 1977,which exceeds 10,000acres in size_ Section 5. Exclusions from Increment Consumption. (1) Pursuant to notice and opportunity for at least one {1) public hearing to be held in accordance with procedures established in 401 KAR 52:100, the cabinet may exdude the following concentrations in determining compliance with a maximum allowable increase: {a) Concentrations attributable to the increase in emissions from stationary sources that have converted from the use of petroleum products, natural gas, or both by reason of an order in effect under a federal statute or regulation over the emissions from these sources beforethe effective date ofthe order; {b) Concentrations attributableto the increase in emissionsfrom sources that have converted from using natural gas by reason ofa natural gas curtailment plan in effect pursuantto a federal statute overthe emissionsfrom those sources beforethe effective date ofthe plan; {c) Concentrations of particulate matter attributable to the increase in emissions from construction or other temporary emission-related activities ofnew or modified sources: and {d) Concentrations attributable to the temporary increase in emissions of sulfur dioxide, particulate matter, or nitrogen oxides from stationary sources affected by plan revisions approved by the Administrator ofthe U.S. EPA as meeting the criteria established in subsection (3) ofthis section. {2){a) Exclusion ofconcentrations shall not apply more than five {5) years afterthe effective date ofthe orderto which subsection (1)(a) of this section refers orthe curtailment plan to which subsection (1)(b) ofthis section refers, whichever is applicable. (b) If both an order and curtailment plan are applicable, an exclusion shall not apply more than five (5) years afterthe later ofthe two (2) effective dates. (3) For exduding concentrations pursuantto subsection {1)(d) ofthissection: (a) The lime period overwhich thetemporary emissions increase ofsulfur dioxide, particulate matter, or nitrogen oxides would occur shall be specified and shall notexceed two (2) years in duration unless a longertime is approved bythe U.S. EPA; (b) The time period for excluding certain contributions in accordancewith paragraph (a) ofthis subsection shall not be renewable; (c) An emissions increase from astationary source shall notoccurthat will: 1. Impacta Class I area or an area in which an applicable Increment is known to be violated; or 2. Causeorcontributeto the violation ofa national ambient airquality standard; and (d) Limitations shall 

### be in effect at the end of the time period established in paragraph (a) of this subsection, which ensure that the emissions levels from stationary sources affected by the SIP revision shall not exceed the levels occurring from those sources before the revision was approved. Section 6. Stack Heights. (1) The degree ofemissions limitation required for control ofan air pollutant underthis administrative regulation shall not be affected by: (a) So much ofthe stack heightofasource as exceeds good engineering practice; or (b) Anotherdispersion technique. (2) Subsection (1} of this section shall not apply to stack heights in .existence before December 31, 1970, or to dispersion techniques implemented before then. Section 7. Exemptions. (1) Sections 8 to16 ofthis administrative regulation shall not apply to a particular major stationary source or major modification, if: (a) The owneror operator: 1. Obtained the necessaryfederal, state, and local preconstruction approval effect1ve before September22, 1982: 2. Commenced construction before September22, 1982; and 3. Did notdiscontinue construction for a period ofeighteen (18) months ormore. (b)1. The major stationary source is a nonprofit health institution, a nonprofit educational institution, or a major modification at such an institution; and 2. The Governorofthe Commonwealth ofKentucky requeststhat itbe exemptfrom those requirements. (c) The source or modification is a major stationary source or major modification only iffugitive emissions, to the extent quantifiable, are considered in calculating the potential to emit ofthe stationary source or modification and the source does not belong to any ofthe following categories: 1. Coal cleaning plantswith thermal dryers; 2. Kraft pulp mills; 3. Portland cement plants; 4. Primaryzinc smelters; 5. Iron and steel mills; 6. Primary aluminum ore reduction plants; 7. Primary coppersmellers; 8. Municipal incineratorscapable ofcharging morethan 250 tons ofrefuse per day: 9. Hydrofluoric, sulfuric, or nitricacid plants: 10. Petroleum refineries;



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## 401 KAR 51 :017. Preventionofsignificantdeteriorationofairquality. 

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11. Lime plants; 12. Phosphate rock processing plants; 13. Coke oven batteries; 14. Sulfur recovery plants; 15. Carbon black plants, furnace process; 16. Primary lead smelters; 17. Fuel conversion plants; 18. Sintering plants; 19. Secondary metal production plants; 20. Chemical process plants, except ethanol production facilities producing ethanol by natural fennentation under the North American IndustryClassification System (NAICS) codes 325193 or 312140; 21. Fossil-fuel boilers, or combination offossil-fuel boilers, totaling more than 250 million BTUs per hour heat input; 22. Petroleum storage and transfer unitswith atotal storage capacity exceeding 300,000 barrels; 23. TaconiteOre processing plants; 24. Glassfiber processing plants; 25. Charcoal production plants; 26. Fossil fuel-fired steam electric plants ofmore than 250 million BTUs per hour heat input; or 27. Anotherstationary source categorythat, as ofAugust 7, 1980, is being regulated under42 U.S.C. 7411 or7412. (d) The source or modification is a portable stationary source that has previously received a permit under this administrative regulation; 

# '"'1. The owneror operator proposesto relocate the source, and the emissions ofthe source atthe new location will be temporary; 2.The emiss·lonsfrom thesource wHI notexceed 1ts allowableemissions·, 3. The emissionsfrom thesource will notimpacta Class I area oran areawhere an applicable increment is knownto beviolated; and 4.a. Reasonable notice is given to the cabinet prior to the relocation identifying the proposed new location and the probable duration of operation atthe new location. b. Notice shall be given to the cabinet not less than ten (10) days in advance ofthe proposed relocation unless a differenttime duration is previouslyapproved by the cabinet pursuantto this subsection. (e) The source or modification was not subject to this administrative regulation with respect to particulate matter requirements in effect before July 31, 1987, and the owneror operator: 1. Obtained allfinal federal, state, and local preconstruction approvals orpermits necessary underthe applicable SIP before July 31, 1987; 2. Commenced constructionwithin eighteen (18) months afterJuly 31, 1987; and 3. Did not discontinue construction for a period ofeighteen (18) rilonths or more and completed construction within a reasonable period of lime. (f)1. The source or modification was subject to this administrative regulation for particulate matter requirements in effect before JulY 31, 1987, and the owneroroperatorsubmitted an application for a permit under·the applicable permit program beforethatdate; and 2. The cabinet subsequently detennined thatthe application as submitted was complete with respectto the particulate matter requirements then in effect (2) Sections 8 to 16 of this administrative regulation shall not apply to a major stationary source or major modification for a particular pollutant if the owner or operator demonstrates that, for that pollutant, the source or modification is located in an area designated as nonattainment pursuantto 42 U.S.C. 7407(d)(1)(A)(i). (3) Sections 9,11, and 13 ofthis administrative regulation shall not applyto a proposed major stationary source or major modification for a particular pollutant, if the allowable emissions of that pollutant from the source, or the net emissions increase of that pollutant from a modification; (a) Will not impact aClass Iarea oran areawhere an applicable increment is known to be violated; and (b) Will 

### betemporary. (4) Sections 9, 11, and 13 ofthis administrative regulation, as applicable to a maximum allowable increase for a Class II area, shall not apply to a majormodification at a i source that was in existence on March 1, 1978, ifthe net increase in allowable emissions ofeach regulated NSR pollutantfrom the the application ofBACTwill be lessthan fifty (50) tons peryear. (5) The cabinet exempt a stationary source or major modification from the monitoring requirements ofSection 11 of

# thill''~m~i"!'"~'~'iti!v'~~~~!''l'!'~~~~~~!'!**if~~~~~~~~** (a) The

## :i~i~~~f~~~:':

# :':**~";** increase ofthe pollutant from the modification will**~** II table; or



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## 401 KAR 51:017. Preventionofsignificantdeteriorationofairquality. Page4 of11

Total reduced sulfur 10j.Jglm3 1-houraverage Reduced sulfur 10j.Jg/m3 1-houraverage comcounds (b) The concentrations ofthe pollutant mthe area that the source or modification will affect are less than the concentrations listed in the table in paragraph {a) ofthis subsection, orthe pollutant is not listed in thetable. (6) Permitting requirements equivalentto Section 9(2) ofthis administrative regulation shall notapplyto a stationary source or modification for a maximum allowable increase for nitrogen oxides, if: (a) The owner or operator ofthe source or modification submitted an application for a permit or permit revision underthe applicable permit program beforethe date on whichthe provisions embodying the maximum allowable increase lookeffect in the Kentucky SIP; and (b) The cabinet subsequentlydetennined thatthe application as submitted before that date was complete. (7} Pennitting requirements equivalent to Section 1 0(2) of this administrative regulation shall not apply to a stationary source or modificationfor a maximum allowable increasefor PM10, if: {a) The owner or operator ofthe source or modification submitted an application for a penni! under the applicable permit program before the provisions embodyingthe maximum allowable increasesfor PM10 took effect as partofKentucky's SIP; and (b) The cabinet subsequentlydetennined thatthe application as submitted before that**~ate** was complete. (8}(a) The cabinet may determine that the requirements for air quality monitoring of PM10 in Section 11 ofthis administrative regulation shall notapplyto a particularsource or modification, if: 1. The owner or operatorofthe source or modification submitted an application for a penni! underthis section on or before June 1, 1988; 

# '"'2. The cabinet subsequently detennines that the application as submitted before that date was complete, except for the requirements for monitoring particulate matterspecified in Section 11 ofthis administrative regulation. (b) The requirements for airquality monitoring of PM10 in Section 11 ofthis administrative regulation shall apply to a particularsource or modification if the owner or operator of the source or modification submitted an application for a permit under 40 C.F.R. 52.21 or this administrative regulation afterJune 1, 1988, and not laterthan December 1, 1988. 1. The data shall have been gathered over at least the period from February 1, 1988, to the date the application becomes complete iii accordancewith Section 11 ofthis administrative regulation; and 2. Ifthe cabinet determines that a complete and adequate analysis can be accomplished with monitoring data overa shorter period, which may notto be less than four (4) months, the data that Section 11 ofthis administrative regulation requires shall have been gathered overthat shorter period. (9) Ifthe owner or operator ofthe source or modification submitted an application for a permit under40 C.F.R. 52.21 orthis administrative regulation before the date the provisions embodying the maximum allowable increases for PM10 took effect and the cabinet subsequently detennined that the application as submitted before that date was complete, the requirements ofSection 9(2) ofthis administrative regulation shall: {a) Not applyto a stationarysource or modificationfor a maximum allowable increase for PM10;and (b) Apply for the maximum allowable increases for TSP as in effect on the daythe application wassubmitted. Section 8. Control Technology Review. (1) A majorstationary source or major modification shall meeteach applicable emissions limitation underthe Kentucky SIP and each applicable emissions standard and standard ofperformance pursuantto 40 C.F.R. Parts 60 and 61. (2) A new major stationary source shall apply BACT for each regulated NSR pollutant for which the source has the potential to emit in significant amounts. (3) A major modification shall apply BACT: (a) For each regulated NSRpollutantthat results in a significant netemissions increase atthe source; and (b) For each proposed emissions unit atwhich a net emissions increase in the pollutantoccurs as a result ofa physical change orchange in the method ofoperation of the unit (4) For phased construction projects: {a) The cabinet shall review and modify, as appropriate, the BACT determination at the latest reasonable time occurring not later than eighteen (18) months priorto commencement ofconstruction ofeach independent phase ofthe project; and (b) If requested by the cabinet, the owner or operator ofthe applicable stationary source shall demonstrate the adequacy of a previous BACTdetermination for the source. Section 9. Source Impact Analysis. (1) The owner or operator of the proposed source or modification shall demonstrate that allowable emissions increases from the proposed source or modification, in conjunction with all other applicable emissions increases or reductions, including secondary emissions, shall not cause or contributeto air pollution in violation of: (a) A national ambient airqualitystandard in an airquality control region; or (b) An applicable maximum allowable increase overthe baseline concentration in any area. (2) For puf?oses of PM2

_ 5, the demonstration pursuant to subsection (1) of this section is deemed to have been made if the emissions increase from the new stationary source alone or from the modification alone would cause, in all areas, an air quality impact less than the amounts lis ted in the following table. Pollutant Avera in Time Class Iarea Class II area PM25 Annual 0.06 j.Jg/m3 0.3 j.Jglm3 PM2.5 24-hour 0.07 1Jg/m3 1.2 j.Jg/m3

Section 10. Air Quality Models. (1) Estimates of ambient concentrations shall be based on the applicable air quality models, databases, and other requirements specified in 40 C.F.R. Part51, AppendixW, "Guideline on AirQuality Models"AppendixA. {2) If an air quality model specified in 40 C.F.R. Part 51, Appendix W, is inappropriate, the model may be modified or another model substituted. (a) The use ofa modified or substitute model shall be: 1. Subjectto notice and opportunityfor publiccomment under401 KAR 52:100; and



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2. Approved in writing by the U.S. EPA pursuantto 40 C.F.R. 51.166(1). (b) Methods similarto those outlined in the "Workbookforthe Comparison ofAirQuality Models," specified in 401 KAR 50:040, Section 1 (3), shall be used to determinethe comparability ofairquality models. Section 11. AirQualityAnarysis. (1) Preapplication analysis. (a) An application for a permit or permit revision under 401 KAR 52:020 and this administrative regulation shall contain an analysis of ambientairquality in the areathatthe majorstationary source or major modification will affectfor each ofthefollowing: 1 Fora source, each pollutantthatthe sourcewill havethe potential to emitin a significant amount; 2. Fora modification, each pollutantthatthe modification will result in asignificant netemissions increase. (b) For a pollutant that does not have a national ambient air quality standard, the analysis shall contain air quality monitoring data the cabinet determines necessaryto assess ambientairqualityforthat pollutant in an areathatthe emissions ofthat pollutantwill affect. {c) For pollutants, other than nonmethane hydrocarbons, for whicll a standard exists, the analysis shall contain continuous air quality monitoring data gathered to determine if emissions of that pollutant will cause or contribute to a violation of the standard or a maximum allowable increase. (d)1. The required continuous air quality monitoring data shall have been gathered over a period of at least one (1) year and shall represent at leastthe year preceding receipt ofthe application. 2. If the cabinet determines that a complete and adequate analysis may be accomplished with monitoring data gathered over a period shorterthan one (1) year, that period shall be notlessthan four (4) months. (e) For analysis of volatile organic compounds, the owner or operator of a proposed major stationary source or major modification who satisfies all conditions of40 C.F.R. Part 51, Appendix S, section 

### fV may provide postapproval monitoring data for ozone instead ofproviding preconstruction dataas required in thissection. (f) For airquality monitoring ofPM10 underSection 7(8)(a) and (b) ofthis administrative regulation, the owner or operatorofthe source or major modification shall use a monitoring method approved by the cabinet pursuant to 40 C.F.R. Part 53 and shall estimate the ambient concentrations of PM10 using the data collected by that approved monitoring method in accordance with estimating procedures approved by the cabinet pursuantto 40 C.F.R. Part 58, AppendixA. (2) Postconstruction monitoring. Afterconstruction ofa majorstationary source or major modification, the owner or operatorshall conduct ambient monitoring thatthe cabinet determines is necessaryto determine the effect emissions from the stationary source or modification may have, or are having, on airquality in an area. (3) Operation of monitoring stations. During the operation of air quality monitoring stations, the owner or operator of a major stationary source or major modification shall meet the requirements of40 C.F.R. Part 58, Appendix A to satisfy the air quality analysis requirements of this section. Section 12. Source Information. The owner or operator of a proposed source or modification shall submit to the cabinet all information necessaryto perform an analysis ormake a determination required underthis administrative regulation. (1) The information shall include: (a) A description of the nature, location, design capacity, and typical operating schedule of the source or modification, including specifications and drawings showing its design and plant layout; (b) A detailed schedulefor construction ofthesource ormodification; and (c) A detailed description of the system of continuous emissions reduction planned for the source or modification, emissions estimates, and any infonnation necessaryto determine that BACTwill be applied. (2) Upon request ofthe cabinet, the owneroroperatorshall also provide information on: (a) The airquality 1mpact ofthe source or modification, including meteorological and topographical data necessary to estimate the impact; 

# "'(b) The air quality impacts and the nature and extent of general commercial, residential, industrial, and other growth that has occurred sinceAugust7, 1g77, in the area the source ormodification will affect. Section 13. Additional Impact Analysis. (1) The owner or operator shall provide an analysis of the impairment to visibility, soils, and vegetation thatwill occuras a result of: (a) The source ormodification; and (b) General commercial, residential, industrial, and other growth associated with the source or modification. (2) The owner or operator shall not be required to provide an analysis ofthe impact on vegetation not having significant commercial or recreationalvalue. (3) The owner or operator shall provide an analysis of the air quality impact projected for the area as a result of general commercial, residential, industrial, and othergrowth associated with the source or modification. (4) Visibility monitoring. (a} Ifthe cabinet requires monitoring ofvisibility in a Class I area impacted by the proposed new stationary source or major modification, the monitoring shall be performed using: 1 Human observations; 2. Teleradiometers; 3. Photographic cameras; 4. Nephelometers; 5. Fine particulate monitors; or 6. Other U.S. EPA-approved methods. (b) The method selected shall be determined on a case-by-case basis bythe cabinet pursuant

## to 40 C.F.R. 51.166. (c) Visibility monitoring required by the cabinet in a Class I area shall be approved by thefederal land manager. (d) Data obtained from visibility monitoring shall be made available to the cabinet, the U.S. EPA, and the federal land manager, upon request. Section 14. Sources Impacting Class I Areas; Additional Requirements. {1) Notice to U.S. EPA and federal land managers. The cabinet shall provide; (a) Written notice to the U.S. EPA, the federal land manager, and the federal official charged with direct responsibility for management of lands within a Class I area of a permit application for a proposed major stationary source or major modification that may affect the Class I area. (b) Notice promptlyafter receiving the permit application. The notice shall: 1. lndude acopy ofall information relevant to the permitapplication; 2. Be given within thirty (30) days of receipt and at least sixty (60) days prior to the public hearing on the application for a permit to 

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construct; and 3. lndude an analysis ofthe proposedsource's anticipated impacts on visibility in the Class I area. {c) The cabinet shall also provide the federal land manager and other federal officials with a copy of the preliminary determination and shall make availableto them the materials used in making thatdetermination, promptlyafterthe cabinet makes it. The cabinet shall also notify all affected federal land managerswithin thirty {30} days ofreceipt ofan advanced notification ofthe permit application. {2) Federal land manager. The federal land manager and the federal official charged with direct responsibility for management of lands located in a Class I area shall have an affirmative responsibility to protect visibility and other air quality related values of the lands and 

### to consider, in consultation with the cabinet, ifa proposed source ormodificationwill have an adverse impacton thosevalues. (3) Visibility analysis. (a) The cabinet shall consider an analysis performed by the federal land manager, which is provided within thirty {30) days ofthe notice and analysis required by subsection (1) ofthis section, which shows that a proposed new major stationary source or major modification may have an adverse impact on visibility in a Class I area. (b) Ifthe cabinetfinds the analysis does not demonstrate to the cabinefs satisfaction that an adverse impact on visibilitywill result in the Class I area, the cabinet shall, in the public notice required in 401 KAR 52:100, either explain that decision or give notice as to where the explanation may be obtained. (4) Denial; impact on air quality related values. (a) The federal land manageroflands located in a Class I area may demonstratetothe cabinetthatthe emissions from a proposed source or modification will have an adverse impact on the visibility and other air quality related values ofthose lands, even though the change in air quality resulting from emissions from the proposed source or modification will not cause or contribute to concentrations that will exceed the maximum allowable increasesfor a Class I area. (b) Ifthe cabinet concurs with the demonstration specified in paragraph (a) of this subsection, the cabinet shall not issue the permit or permit revision. (5) Class Ivariances. {a) The owneror operator ofa proposed source or modification may demonstrate to the federal land managerthatthe emissions from the source or modification will not have adverse impact on the visibility or other air quality related values of lands located in a Class I area, even though the cl1ange in air quality resulting from emissions from the source or modification will cause or contribute to concentrations that will exceed the maximum allowable increasesfor a Class 1area as specified in Section 2(1) ofthis adminis1rative regulation. (b) If limitations are necessary, 1he cabinet may issue the permit or permit revision with emissions limitations necessary to assure that emissions of**su~ur** dioxide, PM2

_ 5, PM10, and nitrogen oxides will not exceed the maximum allowable increases over minor source baseline concentration forthe pollutantsas specified in 40 C.F.R. 51.166(p){4), as published on July 1, 2012, if: 1. The federal land manager concurs with the demonstration specified in paragraph (a) ofthis subsection and certifies accordingly: and 2. The other applicable requirements ofthis administrative regulation are met. {6) Sulfurdioxidevariance bygovernorwith federal land manager's concurrence. (a) The owner or operator of a proposed source or modification, which cannot be approved under subsection (5) ofthis section because the source cannot be constructed without exceeding a maximum allowable increase in sulfur dioxide applicable to a Class I area for a period oftwenty-four {24) hours or less, may demonstrate to the Governor ofthe Commonwealth of Kentuckythat avariancewill not adversely affect the visibility orother airquality related values ofthe area. (b) The governor, after consideration of the federal land manager's recommendation, if applicable, apd subject to the federal land manager's concurrence, may, after notice and public hearing, grant avariance from the maximum allowable increase. (c) Ifa variance is granted, the cabinet shall issue a permit orpermit revision to the source or modification under the requirements 

### of401 KAR Chapter 52 ifthe otherapplicable requirements 

### ofthis administrative regulation are met. (7) Variance bythe governorwith the Presidenfs concurrence. (a) If the Governor 

### ofthe Commonwealth of Kentucky recommends a variance in which the federal land manager does not concur, the recommendations ofthe governorand the federal land managershall be transmitted to the Presidentofthe United States 

### OfAmerica. (b) Ifthe variance is approved by the President, the cabinet shall issue a permit or permit revision in accordance with the requirements of 401 KAR Chapter52, ifthe other applicable requirements ofthis administrative regulation are met. {8) Emissions limitations for presidential orgubernatorial variance. Fora permit or permit revision issued pursuantto subsections (6) or (7) ofthissection, the source or modification shall complywith the emissions limitations necessaryto assurethat: (a) Emissions of sulfur dioxide from the source or modification shall not, during a day on which the other applicable maximum allowable increases are cause or contribute to concentrations that will exceed the maximum allowable increases over the baseline

i i exposure oftwenty-four period. other applicable maximum allowable increases for periods of a total ofeighteen (18) days that are not necessarily consecutive during an annual

Section 15. Public Participation. The cabinet shall follow the applicable procedures of 401 KAR 52:100, 40 C.F.R. 51.166(q), and this administrative regulation in processing applications underthis administrative regulation. Section 16. Source Obligation. {1) An owner or operator of a source or modification subject to this administrative regulation who begins actual construction after September 22, 1982, shall construct and operate the source or modification in accordance with the application submitted to the cabinet underthis administrative regulation and 401 KAR 52:020 or undertheterms ofan approval to construct. (2){a) Approval to construct shall become invalid 

### ifconstruction: 1 Is not commenced within eighteen {18) months after receipt ofthe approval; 2. Is discontinuedfor a period ofeighteen (18) months or more; or 3. Is notcompleted within a reasonable time. (b) The cabinet may extend the eighteen {18) month period upon asatisfactorydemonstration that an extension isjustified. 1. An extension shall notapplyto the lime period between construction ofthe approved phases of a phased construction project; and 2. Each phase shall commence construction within eighteen (18) monthsofthe projected and approved commencement date. {3) Approval to construct shall not relieve an owner or operator ofthe responsibility to comptj fulty with 401 KAR Chapters 50 

### to 68 and 

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other requirements oflocal, slate, orfederal law. (4} If a particular source or modification becomes a major stationary source or major modification solely by virtue of a relaxation in an enforceable limitation thatwas established afterAugust 7, 1980, on the capacity ofthe source or modification to emit a pollutant, Sections 81o 16 ofthis administrative regulation shall apply to the source or modification as though construction had notyet commenced on the source or modification. (S)(a) The provisions ofthis subsection shall applyto projects at existing emissions unitsata maJorstationary source otherthan projectsat a source with a PAl, if: 1. There is a reasonable possibilitythat a projectthat is not partofa major modification may result in a significantemissions increase; and 2. The owner or operatorelectsto use the method spec1fied in 401 KAR 51:001, Section 1{199){b) to calculate projected actual emissions. (b) Before beginning actual construction of a project specified in paragraph (a) of this subsection, the owner or operator shall document and maintain a record ofthefollowing information: 1. A description ofthe project; 2. Identification ofthe emissions unitsfor which emissions ofa regulated NSR pollutant could be affected bythe project; and 3. A description of the applicability lest used to determine that the project is not a major modification for any regulated NSR pollutant, including: a. Baseline actual emissions; b. Projected actual emissions; c. Amount ofemissionsexcluded in calculating projected actual emissions and an explanation for whythatamountwas excluded; and d. Any applicable netting calculations. (c) For. a projectspecified in paragraph (a) ofthis subsection, the owneroroperatorshall: 1. Monitor the emissions of any regulated NSR pollutant that could increase as a result of the project and that are emitted by any emissions un'lt idenf1fied in paragraph (b)2 ofthis subsection; and 2. Calculate and maintain a record ofthe annual emissions, in tons peryear on a calendaryear basis for: a. Five (5) yearsfollowing resumption ofregularoperations afterthe change; or b. Ten (10) years following resumption of regular operations after the change if the project increases the design capacity or potential to emit ofthe regulated NSR pollutant atthe emissions unit. (d) Ifthe emissions unit is an existing EUSGU, before beginning actual construction, the owner or operator: 1. Shall provide a copy of the information in paragraph (b) of this subsection to the cabinet, but shal.l not be required to obtain a determination from the cabinet before beginning actualconstruction; and 2_ Shall submit a report to the cabinetwithin sixty (60) days afterthe end ofeach year during which records are required to be generated under paragraph (b) of this subsection that reports the unit's annual emissions during the calendar year that preceded submission of the report. (e)1 Foran existing unitotherthan an EUSGU, the owneroroperatorshall submita report to the cabinet if: a. The annual emissions, in tons per year, from a project identified in paragraph (a} of this subsection exceeds the baseline actual emissions, as documented and maintained pursuant to paragraph (b)3 of this subsection, by a significant amount for that regulated NSR pollutant; and b. The emissions differfrom the preconstruction projection asdocumented and maintained pursuantto paragraph (b)3 ofthis subsection. 2. The report shall be submitted within sixty (60) days afterthe end ofthe year during which records are required to be generated under paragraph (b) ofthis subsection and shall contain the following: a. The name. address, and telephone numberofthe majorstationary source; b. The annual emissions as calculated pursuant to paragraph (c) ofthis subsection; and c. Any other information thatthe owneroroperatorwishes to include in the report. 

### {f) The owner or operator ofthe source shall make the information required to be documented and maintained under to this subsection available for review upon requestfor inspection bythe cabinet orthe general public pursuantto 401 KAR 52:100. Section 17_ Environmental Impact Statements. If a proposed source or modification is subject to action by a federal agency that may necessitate preparation ofan environmental impact statement under42 U.S.C. 4321 to4370d (the National Environmental Policy Act), review by the cabinet conducted in accordance with this administrative regulation shall be coordinated with the broad environmental reviews under thatActand under42 U.S.C.7609 to the maximum extentfeasible and reasonable. Section 18. Innovative Control Technology. {1) 

### An owner or operator of a proposed major stationary source or major modification may make awritten requestthatthe cabinet approve a system ofinnovative controltechnology. (2} The cabinet may, with the consent ofthe governors of other affected states, determine that the source or modification may employ a system ofinnovative controltechnology if: (a) The proposed control systemwill not cause or contribute to an unreasonable risk to public health, welfare, orsafety in its operation or function; (b) The owneroroperator agrees to achieve a level ofcontinuous emissions reduction equivalent to thatwhich would have been required underSection 8(2) ofthis administrative regulation by a date, specified by the cabinetthat is not laterthan four (4) years from the time ofstartup or seven (7) yearsfrom permit issuance; {c) The source or modification shall meet requirements equivalent to those in Sections 8 and 9 ofthis administrative regulation based on the emissions rate that the stationary source employing the system of innovative control technology shall be required 

### to meet on the date specified bythe cabinet; (d) The source or modification shall not before the date spec'1fied by the cabinet: 1. Cause or contribute to a violation ofan applicable national ambientairqualitystandard; or 2. Impactan area in which an applicable increment is known to 

### beviolated; (e) Section 14 ofthis administrative regulation relating to Class I areas has been satisfied for all periods during the life of the source or modification; and 

### (f) All otherapplicable requirements including thosefor public participation have been met. (3) The cabinet shallwithdraw approval to employ a system ofinnovative controltechnology if: (a} The proposed systemfails bythe specified daleto achievethe required continuous emissions reduction rate; (b) The proposed system fails beforethe specified date and contributesto an unreasonable risk to public health, welfare, or safety; or (c) The cabinetdecidesthatthe proposed system is unlikely to achieve the required level ofcontrol orto protect the public health, welfare, or safety. (4) If a source or modification fails to meet the required level of continuous emissions reduction within the specified time period or the approval is withdrawn in accordance with subsection (3) ofthis section, the cabinet may allow the source or modification up to an additional three (3) years to meetthe requirementforthe application ofBACTthrough use ofademonstrated system ofcontrol.



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Section 19. Permit Condition Rescission. (1)(a) An owner or operator holding a permit for a stationarysource or modification that contains conditions pursuantto 401 KAR 51:015 or51 :016E may requestthatthe cabinet rescind the applicable conditions. (b) An owneror operatorofa stationary source or modification who holds a permitfor the source or modification thatwas issued underthis administrative regulation as in effect on July 30, 1987, or an earlier version of this administrative regulation, may request that the cabinet rescind the permit or a particular portion ofthe permit. (2) The cabinet shall rescind a permit condition ifrequested and ifthe applicant can demonstrate to the satisfaction ofthe cabinet thatthis administrative regulation does not applyto thesource or modification orto a portion ofthe sourceormodification. Section 20. Plant-wideApplicability Limit Provisions. The cabinet shall only approve the use ofan actuals PAL (PAL) foran existing major stationarysource ifthe PAL meetsthe requirements ofthis section. (1) General provisions. (a) An owner or operator mayexecute a projectwithouttriggering major NSR, ifthe source maintains itstotal source-wide emissions below the PAL level, meetsthe requirements in this section, and complieswiththe PALpermit. Ifthese conditions are met, a project: 1. Shall not be considered a majormodification forthe PAL pollutant; 2. Shall not haveto be approved through Kentucky's major NSR program; and 3. Shall not be subject to the provisions of Section 16(4) of this administrative regulation concerning restrictions on relaxing enforceable emission limitatiqnsthat a majorstationarysource used to avoid applicabilityofthe major NSR program. (b) Except as provided under subparagraph (1)(a)3 ofthis section, a major stationary source shall continue to comply with all applicable federal or state requirements, emissions limitations, and work practice requirements that were established prior to the effective date of the PAL {2) Permit application requirements. The owner or operator of a major stationary source shall submit the following information to the cabinetforapproval as part ofan application for a permitorpermit revision requesting a PAL: (a) A list ofall emissions units atthesource designated as small, significant. or major, based on their potential to emit; (b) Identification ofthe federal and state applicable requirenients, emissions limitations, and work practice requirements that applyto each emissions unit; {c) Calculations ofthe baseline actual emissions for the emissions units with supporting documentation, including emissions associated with startup, shutdown, and malfunction; and {d) The calculation procedures the owner or operator proposes to use to convert the monitoring system data to monthly emissions and annual emissions based on atwelve (12) month rolling total foreach month as required by subsection (12)(a} ofthis section. (3) Establishing a PAL. The cabinet shall establish a PAL at a major stationary source in a federally enforceable permit pursuant to the requirements ofthis section. (a) The PAL shall impose an annual emissions limitation in tons per year that is enforceable as a practical matter for the entire major stationarysource. 1. For each month during the PAL effective period after the first twelve (12) months of establishing a PAL, the owner or operator shall demonstrate that the sum ofthe monthly emissions from each emissions unit underthe PAL for the previous twelve (12) consecutive months is less than the PAL as atwelve (12) month average. rolled monthly; and 2. Foreach month during the first eleven (11) months from the PALeffectivedate, the owneror operatorshall demonstratethatthe sum of the preceding monthlyemissionsfromthe PAL effective date for each emissions unit underthe PAL is lessthan the PAL. (b)The PAL shall be established in a PAL permitthat: 1. Meets the public participation requirements in subsection (4) ofthis section; and 2. Contains all the requirements ofsubsection {6) ofthis section. {c) A PALshall includefugitive emissions, to the extentquantifiable, from all emissions unitsthatemit or havethe potential to emitthe PAL pollutant atthe majorstationary source. (d) Each PAL shall regulate emissions ofonly one {1) pollutant. (e) Each PAL shall have a PALeffective period often {10) years. 

### (f) The owner or operator of a major stationary source with a PAL shall comply with the monitoring, recordkeeping, and reporting requirements ofsubsections {11) to (13) ofthis section for each emissions unit underthe PALthrough the PAL effective period. (g) Emissions reductions of a PAL pollutant that occur during the PAL effective period shall not be creditable as decreases for offsets under40 C.F.R 51.165(a)(3)(ii), unless: 1. The level ofthe PAL is reduced by the amount ofthe emissions reductions; and 2. The reductions will be creditable in the absence ofthe PAL (4) Public participation requirements. PALs for existing major stationary sources shall be established, renewed, or increased pursuant to this subsection and the applicable procedures of401 KAR 52:100. The cabinet shall: (a) Provide the public with notice of the proposed approval of a PAL permit with at least a thirty (30) day period for submittal of public comment; and (b) Address-all material comments beforetaking final action on a PAL permitorpermit revision. (5) Setting the ten (10) year PAL leveL (a) The PAL level for a majorstationary source shall be the sum ofthe baseline actual emissions ofthe PAL pollutant for each emissions unit at the source during the chosen twenty-four (24) month period plus the applicable significant level for the PAL pollutant under the definition for "significant" in 401 KAR51:001, Section 1 or under42 U.S.C. 7401-7671q, whichever is lower. (b) In establishing a PAL level for a PAL pollutant, only one (1) consecutive twenty-four (24) month period shall be used to determine the baseline actual emissionsfor all existing emissions units. (c) A differentconsecutivetwenty-four (24) month period may be used foreach different PAL pollutant. (d) Emissions associated with units that were permanently shut down after the chosen twenty-four (24) month period shall be subtracted from the PAL leveL (e) Emissions from unitsforwhich actual construction began afterthe twenty-four {24) month period shall be added to the PAL level in an amountequalto the potential to emitofthe units. 

### (f) The cabinet shall specify a reduced PAL level in the PAL permit to become effective on the future compliance date of any applicable federal or state regulatory requirementthatthe cabinet is aware ofpriorto issuance ofthe PAL permit. {6) Contents ofthe PAL permit. The PAL permit shall contain thefollowing information: (a) The PAL pollutantand the applicable source-wide emissions limitation in tons peryear; (b) The PAL permiteffective date and the expiration date ofthe PAL or PALeffective period; (c) Specification in the PAL permit that ifa majorstationary source owner or operator applies to renew a PAL undersubsection (9) ofthis section beforetheend ofthe PAL effective period, the PALshall remain in effect until a revised PAL permit is issued bythe cabinet; (d) A requirementthatemissions calculationsfor compliance pui)Joses include emissionsfrom startups, shutdowns, and malfunctions;



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(e) A requirement that, once the PAl expires, the major stationary source shall be subject to the requirements of subsection (8) ofthis section; (f) 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 twelve (12) month rolling total for each month as required by subsection (12)(a) ofthis section; (g) A requirementthatthe majorstationary source owneroroperator shall monitorall emissions units in accordancewith the provisions in subsection {12) ofthis section; (h) A requirementthatthe owner or operatorshall retain the records required undersubsection (12) ofthis section on site. Records may be retained in an electronicformat; (i) A requirement for the owner or operator to submit the reports required under subsection (13} ofthis section by the required deadlines; 

# '"'OJ Any requirements necessaryto implementand enforce the PAL. (7) PAl effective period and reopening ofa PAl permit. (a) A PAleffective period shall be len (10) years. (b) The cabinet shall reopen a PAl permitto: 1. Correcttypographical or calculation errors made in setting the PAL; 2. Reflect a more accuratedetermination ofemissions used to establish the PAL; 3. Reducethe PAL ifthe owneror operatorofthe majorstationarysource creates creditable emissions reductions for use as offsets under 

### 40C.F.R. 51.165(a}(3)(ii); or 4. Revise the PALto reflect an increase in the PAL according to subsection (10) ofthis section. (c) The cabinet may reopen the PAL permit, duringthe PAL effective period, to: 1. Reducethe PALto reflect newly applicablefederal requirements with compliance dates afterthe PAL effectivedate; 2. Reduce the PAL consistent with any requirement enforceable as a practical matter and imposed on the major stationary source under the SIP; and 3. Reducethe PAL ifthe cabinet determinesthata reduction is necessary to avoid causing or contributing to: a. A NationalAmbientAirQuality Standard (NAAQS) or PSD incrementviolation; or b. An adverse impact on visibility or another air quality related value that has been identified for a federal Class I area by a federal land managerand for which information is available to the general public. (d) All permit reopenings shall be carried out underthe public participation requirements ofsubsection (4) ofthis section except for permit reopenings to correcttypographical or calculation oferrorsthatdo not increase the PAL level. (8) Expiration of a PAL. A PAL that is not renewed shall expire at the end of the PAL effective period, and the requirements of this subsection shall then apply. (a) Each emissions unit, or each group ofemissions units. that existed under the PAL shall complywith an allowable emissions limitations undera revised permitestablished as follows: 1. An owner or operator of a major stationary source using a PAL shall submit a proposed allowable emissions limitation for each emissions unit, or each group ofemissions units, by distributing the PAL allowable emissions for the major stationary source among each of the emissions unitsthatexisted underthe PAl. a. This proposal shall be submitted to the cabinet at least six (6} months before the expiration of the PAL permit but not sooner than eighteen (18) months before permit expiration. b. Ifthe PAL has not yet been adjusted for an applicable requirement that became effective during the PAL effective period, as required undersubsection (9)(e) ofthissection, distribution ofallowable emissions shall be made as ifthe PAL has been adjusted. 2. The cabinet shall decide the date and procedurethe owneror operatorshall use to distribute the PAL allowable emissions. 3. The cabinet shall issue a revised permit incorporating allowable limits for each emissions unit, or each group ofemissions units, asthe cabinet determines is appropriate. (b) E8c11 emissions unit shall complywith the allowable emissions limitation on atwelve (12) month rolling basis. The cabinet may approve the use of monitoring systems otherthan CEMS, CERMS, PEMS, or CPMS ifthe alternate monitoring system demonstrates compliance with the allowable emissions limitation. (c) The source shall continue to complywith a source-wide, multiunit emissions cap equivalent to the level ofthe PAL emissions limitation until the cabinet issuesthe revise!j permit incorporating allowable limitsfor each emissions unitoreach group ofemissions units. (d) A major modification atthe majorstationary source shall be subjectto majorNSR requirements. (e) The majorstationary source owner or operator shall continue to comply with any state orfederal applicable requirements eliminated by the PAL that applied during or before the PAL effective period, except for those emissions limitations established pursuant to Section .16(4) of this administrative regulation. (9) Renewal ofa PAL. (a) Public participation requirements. 1. The cabinet shall follow the public participation procedures specified in subsection (4) ofthis section in approving a requestto renew a PALfor a majorstationary source. 2. The cabinet shall provide awritten rationale for the proposed PAL levelfor public review and comment. 3. Any person may propose a PAL levelforthe sourcefor consideration bythe cabinet during the public review; period. (b) Application deadline.

- 1. A majorstationary source owner or operator shall submit an application for renewal ofa PAL at least six (6) months before the date of permitexpiration but notearlierthan eighteen (18) months before permit expiration. 2. The deadlinefor application submittal shallensure thatthe permit shall notexpire before the permit is renewed. 3. If a complete application for renewal is submitted within the timeframe specified in subparagraph 1 ofthis paragraph, the PAL shall continueto be effective until the revised permitwith the renewed PAL is issued. (c) Application requirements. The application to renew a PAL permit shall contain: 1. The information required in subsection (2) ofthissection; 2. A proposed PAL level; 3. The sum ofthe potentialto emit ofall emissions units underthe PALwith supporting documentation; and 4. Any other information the owner or operatorwishesthe cabinetto consider in determining the appropriate levelto renew the PAL. (d) PAL adjustment. 1. A PAL shall not exceed the source's potential to emit. The cabinet shall adjust the PAL downward if a source's potential to emit has declined belowthe PAL level. 2. The cabinet may renew the PAL atthe same level as the current PAL ifthe sum ofthe baseline actual emissions for all emissions units at the source plus an amount equal to the significant level is equal to or greater than eighty (80) percent of the current PAL level, unless the sum is greaterthan the source's potentialto emit.



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3. Ifthe sum ofthe baseline actual emissionsfor all emissions units atthe source plus an amount equal to the significant level is less than eighty (80} percent ofthe current PAL level, the cabinet may setthe PAL at a different level ifthe level is determined to be: a. More representative ofthe source's baseline actual emissions; or b. Appropriate considering thefollowing factors: (i) Air quality needs; (ii) Advances in control technology; (iii) Anticipated economicgrowth in the area ofthesource; (iv)The cabinet's goal ofpromoting voluntary emissions reductions; (v) Cost effective emissions control alternatives; and (vi) Otherfactors as specifically identified by the cabinet in its written rationale for setting the PAL level. 4. The cabinet shall not approve a renewed PAL level higher than the current PAL, unless the major stationary source has complied with the provisions ofsubsection (10) ofthis section. (e) The PAL shall be adjusted in conjunction with PAL permit renewal orTitleV permit renewal, whichevercomesfirst, if: 1. The compliance date for a state orfederal applicable requirement that applies to the PALsource occurs during the PAL effective period; 

# '"'2. The cabinet has not already adjusted for the requirement. (10) Increasing a PAL during the PAL effective period. The cabinet may increase a PAL emissions limrtation during the PAL effective period ifthe maJor stationarysource complies with the provisions ofthis subsection. {a) Application procedures. To request an increase in the PAL limit for a PAL major modification, the owner or operator of the major stationary source shall submit acomplete application, which shall include: 1 Identification ofthe emissions units contributing to the increase in emissions that cause the source's emissions to equal or exceed its PAL; 2. Demonstrationthatthe increased PAL, as calculated in paragraph (c) ofthissubsection, exceeds the PAL; and a. The level of control that results from BACT equivalent controls on each significant or major emissions unit shall be determined by conducting a new BACTanalysiswith the application submittal, unless the emissions unit is currently required to comply with a BACT or LAER requirementthatwas established within the precedingten (10} years; b. If an emissions unit currently complies w1th BACT or LAER, the assumed control level for that emissions unit shall be equal to the current level ofBACT or LAERforthat emissions unit; and 3. A statement 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 beginsto emitthe PAL pollutant. (b) NSR permit and compliance requirement. The owner oroperatorshall obtain a major NSR permitfor all emissions units contributing to the increase in emissions for the PAL major modification. 1. A significant level shall not apply in deciding for which emissions units a major NSRpermitshall be obtained; and 2. Emissions units that obtain a major NSR permit shall comply with any emissions requirements resulting from the major NSR process, even thoughthe units shall also become subjectto the PAL or shall continue to be subjectto the PAL. (c) Calculation of increased PAL. The cabinet shall calculate the new PAL asthe sum ofthe 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, plus the sum ofthe baseline actual emissionsofthe small emissions units. (d) Public notice requirement. The public notice requirements ofsubsection (4) ofthis section shall be followed during PAL permit revision for an increased PAL level. (11) Monitoring requirements for PALs. (a) General requirements. 1. Each PAL permit shall contain enforceable requirements for the chosen monitoring system that accurately determines plant-wide emissions ofthe PAL pollutant in termsofmass perun1t oftime; 2. A monitoring system authorized fOr use in the PAL permit shall be: a. Approved bythe cabinet pursuantto this subsection; and b. Based on sound science and meetgenerallyacceptablescientific procedures for data quality and manipulation; 3. The data generated by a monitoring system shall meet minimum legal requirements for admissibility in ajudicial proceeding to enforce the PAL permit; 4. The PAL monitoring system shall employ one (1) or more of the four (4) general monitoring approaches meeting the minimum requirements set forth in paragraph (b) ofthis subsection; 5. The cabinet may approve an alternative monitoring approach that meets the requirements of subparagraphs 1to 3 ofthis paragraph; 

# '"'6. Failure to use a monitoring system that meetsthe requirements ofthis section shall renderthe PAL invalid. (b) Minimum periormance requirements for approved monitoring approaches. If conducted in accordance with the minimum requirements in paragraphs (c) to (i) ofthis subsection, the·following shall be acceptable monitoring approaches: 1. Mass balance calculationsfor activities using coatings or solvents; 2. CEMS; 3. CPMS or PEMS; and 4. Emissionfactors. (c) Mass balance calculations. An owner or operator using mass balance calculations to monitor PAL pollutant emissions from activities using coatings or solvents shall: 1. Provide a demonstrated means ofvalidating the published content ofthe PAL pollutant contained in orcreated by all materials used in oratthe emissions unit; 2. Ifthe PALpollutantcannot be accounted for in the process, assume thatthe emissions unitemits all ofthe PAL pollutant contained in or created by any raw material orfuel used in or atthe emissions unit; and 3. Ifthe vendor ofthe material orfuel from whichthe pollutant originates publishes a range, use the highestvalue ofthe published range of pollutant contentto calculate the PAL poUutant emissions, unless the cabinet determinesthere is site-specific data or asite-specific monitoring program to supportanother pollutant content within the range. (d) CEMS. An owneror operator using CEMS to monitor PAL pollutant emissionsshall meetthe following requirements: 1. CEMS shall comply with applicable performance specificationsfound in 40 C.F.R. Part 60, Appendix B; and 2. CEMS shall sample, analyze, and record data at leastevery fifteen {15) minuteswhile the emissions unit is operating. (e) CPMS or PEMS. An owner or operator using CPMS or PEMS to monitor PAL pollutant emissions shall meet the following requirements: 1 The CPMS orthe PEMS shall be based on current site-specificdata demonstrating a correlation between the monitored parameterand the PAL pollutant emissions acrossthe range of operation ofthe emissions unit; and



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2. While the unit is operating, each CPMS or PEMS shall sample, analyze, and record data at least every fifteen (15) minutes, or at another less frequent interval ifapproved by the cabinet. (f) Emission factors. An owner or operator using emission factors to monitor PAL pollutant emissions shall meet the following requirements: 1. All emission factors shall be adjusted, ifappropriate, to accountforthe degree ofuncertaintyor limitations in thefactors' development; 2. The emissions unitshall operatewithinthe designated range ofuse forthe emission factor, ifapplicable; and 3. The owneror operatorofa significantemissions unitthat relies on an emission factorto calculate PAL pollutantemissions shall conduct validation testing to determine a site-specific emiss1on factor within six {6) months of PAL permit issuance if the cabinet determines that the testing is required and technically practicable. (g) A source owneror operatorshall record and report maximum potential emissionswithout considering enforceable emissions limitations or operational restrictions for an emissions unit during any period oftime there is no monitoring data, unless another method for determining emissionsduring such periods is specified in the PAL permit. (h) Ifan owner or operatorofan emissions unit cannot demonstrate a correlation between the monitored parameters and the PAL pollutant emissions rate at all operating points ofthe emissions unit, as an alternative to the requirements ofparagraphs (c) to (g) ofthis subsection, in conjunction with permit issuance the cabinet shall: 1. Establish default values for determining compliance with the PAL based on the highest potential emissions reasonably estimated at operating points; or 2. Determine that operation ofthe emissions unit during operatmg conditions if there 

### is not a correlation between monitored parameters and the PALpollutantemissions is aviolation ofthe PAL. {i) Revalidation. All data used to establish the PAL pollutant shall be revalidated through performance testing or other scientifically valid means ifapproved by the cabinet. Validation testing shall occurat leastonce everyfive (5) years alter issuance ofthe PAL. (12) Recordkeeping requirements. (a) The PAL permit shall require an owner or operator to retain a copy of all records necessary to determine compliance with any requirement ofthis section and ofthe PAL, including a determination ofeach emissions unit's twelve (12) month rolling total emissions for five (5) yearsfrom the date ofthe determination. {b) The PAL permit shall require an owner or operatorto retain a copy ofthe following records forthe duration ofthe PAL effective period plusfive (5) years: 1. A copy ofthe PAL permitapplication and any applicationsfor revisions tothe PAL; and 2. Each annual certification ofcompliance pursuantto TitleV and the data used to certify compliance. {13) Reporting and notification requirements. The owner or operator shall submit semiannual monitoring reports and prompt deviation reports to the cabinet in accordancewith 401 KAR 52:020, 52:030, and 52:040 that meetthe following requirements: (a) Semiannual report. The semiannual report shall be submitted to the cabinetwithin thirty (30) days ofthe end ofeach reporting period 

### andshall contain: 1. The identification ofowner and operatorand the permit number; 2. Total annual emissions, in tpy, based on a twelve (12) month rolling total for each month in the reporting period recorded pursuant to subsection (12)(a) ofthis section; 3. All data used in calculating the monthlyand annual PAL pollutantemissions, including any quality assuranceorquality control data; 4. A list ofany emissions units modified oradded to the majorstationarysource during the preceding six (6) month period; 5. 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 following a deviation; 6. A notification ofpermanentortemporary shutdown ofany monitoring system inciuding: a. The reason forthe shutdown; b. The anticipated datethatthe monitoring system shall be fully operational or shall be replaced with another monitoring system; c. If applicable, a statement that the emissions unit monitored by the monitoring system continued to operate without the monitoring system; and 

### d. The calculation of the emissions of the pollutant or the number determined according to subsection (11)(g) of this section that is included in the permit; 

### and 7. A signed statement by the responsible official, as defined by 401 KAR 51:001, Section 1(210), certifying the truth, accuracy, and completeness ofthe information provided in the semiannual report. (b) Deviation report. The major stationary source owner or operator shall submit reports of any deviation or exceedance of the PAL requirements, including periods monitoring is unavailable.

- 1. A report submitted pursuantto 40 C.F.R. 70.6(a)(3)(iii)(B) shall satisfythe deviation reporting requirement;

2. The deviation report shall be submitted within the time limits prescribed by 40 C.F.R. 70.6(a)(3)(iii)(B); 3. The deviation report shall contain the following information: a. The identmcation ofthe owner, the operator, 

### andthe permit number; b. The PAL requirementthat experienced the deviation orthatwas exceeded; c. Emissions resulting from the deviation orthe exceedance; and 

### d. A signed statement by the responsible official, as defined by 401 KAR 51:001, Section 1(210), certifying the truth, accuracy, and completeness ofthe information provided in the report. (c) Revalidation results. The owner or operator shall submit to the cabinet the results of any revalidation test or method within three (3) months after completion ofthe testormethod. {14) Transition requirements. (a) Afterthe U.S. EPA approves the Kentucky SIP revisions for the PAL provisions published in 67 Fed. Reg. 80186, December31, 2002, the cabinet shall only issue a PALthatcomplieswith the requirements ofthis section. (b) The cabinet may supersede a PAL thatwas established beforeAugust 10, 2006, with a different PAL ifthe new PAL complies with the requirements of this administrative regulation. (8 Ky.R. 1112; Am. 9 Ky.R. 350; eff. 9-22-1982; 12 Ky.R. 869; 1263; eff. 2-4-1986; 13 Ky.R. 924; eff. 12-2-1986; 14 Ky.R. 883; eff. 12-11-1987; 1601, eff. 4-14-1988; 18 Ky.R. 2605; eff. 6-24-1992; 23 Ky.R. 2203; 3009; eff. 3-12-1997; 30 Ky.R. 2188; 2500; 31 Ky.R. 45; eff. 7-14-2004; 36 Ky.R. 880; 1260; eff. 2·5-2010; 39 Ky.R. 124; 794; eff. 12-7-2012.)



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401 KAR 51:052. Reviewofnewsources in or Impacting upon nonattainmentareas. RELATES TO: KRS 224.20-100, 224.20-110, 224.20-120, 40 C.F.R. Part 51 Appendix S, Part 51 Subpart I, 51.165, 51.166, 51.300, 51.307, 52.21, 60, 61, 70.6, Part81 Subpart D, 81.318,42 U.S.C. 7401-7671q STATUTORYAUTHORilY: KRS 224.10-100(5), 42 U.S.C. 7401-7671q NECESSilY, FUNCTION, AND CONFORMilY: KRS 224.10-100(5} requires the cabinet to promulgate administrative regulations forthe prevention, abatement, and control ofair pollution. This administrative regulation establishes requirementsforthe construction or modification ofstationary sourceswithin, orimpacting upon, areaswherethe national ambient airquality standards have not been attained. The provisions ofthis administrative regulation are not more stringentthan the corresponding federal requirements. Section 1 Applicability. This administrative regulation shall apply to the construction ofa new major stationary source or a project that is a major modificaUon atan existing major stationary source, which commences construction after September22, 1982, and locates in or impacts upon an area designated nonattainment under 42 U.S.C. 740'r(d)(1)(A)(i). (1} The provisions of this administrative regulation relating to visibility protection shall also applyto major sources or majormodifications in nonattainmentareas that potentially have an impact on visibility in a mandatoryClass Ifederal area. (2) Applicability tests for projects. Except as provided in subsection (3) of this section, a project shall be a major modification for a regulated NSR pollutant only if the project causes a significant emissions increase and a significant net emissions increase, as provided in paragraphs (a) and (b) ofthissubsection. (a) Pnor to beginning actual construction, the owner or operator shall first determine if a significant emissions increase will occur for the applicabletype ofunitbeing constructed ormodified according to subparagra'phs 1to 3 ofthis paragraph. 1. Actual-to-projected actual applicability test for projects that only involve existing emissions units. A significant emissions increase of a regulated NSR pollutant shall be projected to occur ifthe sum ofthe difference between the projected actual emissionsand the basefme actual emissionsforeach existing emissions unit equals orexceedsthe significantamountforthatpollutant. 2. Actual-to-potential testfor projects that involve only construction of new emissions units. A significant emissions increase ofa regulated NSR pollutant shall be projected to occur ifthe sum ofthe potential to emit from each rlew emissions unit following completion ofthe project equalsorexceedsthe significant amountfor thatpollutant. 3. Hybrid testfor projects that involve multiple types ofemissions units. A significantemissions increase ofa regulated NSR pollutant shall be projected to occur ifthe sum ofthe emissions increases foreach emissions unit, using the methods specified in subparagraphs 1 and 2 of this paragraph as applicableforeach emissions unit, equals orexceeds the significantamountfor thatpollutant. (b) Priorto beginning actual construction and aftercompleting the applicable test in paragraph (a) ofthis subsection, the owneror operator shall determine foreach regulated NSR pollutant ifa significant netemissions increase will occur pursuantto 401 KAR 51 :001, Section 1(144) and (218). (3) Fora plant-wide applicability limit (PAL) for a regulated NSR pollutant at a majorstationary source, the owner or operatorofthe major stationary source shall complywith the applicable requirements ofSection 11 ofthis administrative regulation. Section 2. Initial Screening Analyses and Determination of Applicable Requiremerlts. (1) Review of all sources for emissions limitation compliance. (a)The cabinet shall examine each proposed majornewsource and proposed major modification to determine if the source or modification will meetall applicableemissions requirements in the Kentucky State Implementation Plan (SIP) and 40 C.F.R. Parts 60 and 61. (b) Ifthe cabinetdetermines from the application and all other available information thatthe proposed source ormodification w1ll not meet theapplicable emissions requirements, the permitto construct shall be denied. (2) Review ofspecified sourcesofairquality impact. (a) The cabinet shall determine if a proposed major stationary source or major modification will be constructed in an area designated as nonattainmentpursuantto 42 U.S.C. 7407(d}(1)(A)(i)fora pollutantforwhich the stationary source or modification is major. (b) If a designated nonattainment area is projected to be an attainment area as part of an approved control strategy by the new source start-up date, offsets shall notbe required ifthe newsourcewill not cause a newviolation. (3) Fugitive emissions sources. Sections 4 and 10 ofthis administrative regulation shall rlot applyto a source or modification thatwill be a major stationary source or major modification only iffugitive emissions, to the extentquarltifiable, are considered in calculating the potentialto emitofthe stationary source or modification andthe source does not belong to one (1) ofthe following categories: (a} Coal cleaning plantswith thermal dryers; (b) Kraft pulp mills; (c) Portland cement plants; (d) Primaryzincsmelters; (e) Iron and steel m1lls; (f) Primary aluminum ore reduction plants; (g) Primary copper smelters; {h) Municipal incinerators capable ofcharging morethan 250 tons of refuse perday; (i) Hydrofluoric, sulfuric, ornitricacid plants; (j) Petroleum refineries; {k) Lime plarlts; (I) Phosphate rock processing plants; (m) Coke oven batteries; (rl) Sulfur recovery pjants; (o) Carbon black plants, furnace process; (p) Primary lead smelters; (q) Fuel conversion plants; (r) Sintering plants; (s) Secondarymetal production plants; (t) Chemical process plants, except ethanol production facilities producing ethanol by natural fermentation under the North American IndustryClassification System {NAJCS) codes325193 or312140; (u) Fossil-fuel boilers, orcombination offossil-fuel boilers, totaling more than 250 million BTUs per hour heat input; (v) Petroleum storage and transfer unitswith a total storage capacity exceeding 300,000 barrels; {w)Taconite ore processing plants; {x) Glassfiber processing plants; · (y) Charcoal production plants; (z) Fossil fuel-fired steam electricplantsofmore than 250 million BTUs per hour heat input; or



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(aa) Anotherstationary source categorythat, as ofAugust 7, 1980, is being regulated under42 U.S.C. 7411 or7412. Section 3. Sources Locating in Designated Attainment or Unclassifiable Areas that Will Cause or Contribute to a Violation of a National AmbientAir Quality Standard. (1) This section shall apply only to new major stationary sources or new major modifications that will locate in designated attainment or unclassifiable areas, pursuant to 42 U.S.C. 7407(d)(1)(A)(ii) or (iii), ifthe source or modification will cause impacts thatexceed the significance levels, as listed in the table in this subsection, at a locality that does not orwill not meet the national ambient air

(3) For sources ofsulfur dioxide {S02), particulate matter, and carbon monoxide {CO), the determination thata new majorsource ormajor modification will cause or contribute to a violation ofa national ambient a1r quality standard shall be made on a case-by-case basis using the source's allowable emissions in an approved atmospheric simulation model listed in 40 C.F.R. Part 51, AppendixW, "Guideline on Air Quality Models". (4) Forsources ofNOx, the initial determination that a new major source or major modification will cause or contribute to a violation ofthe national ambient air quality standard for nitrogen dioxide {N02 ) shall be made using an approved atmospheric simulation model assuming all the mtric oxide emitted is oxidized to N02 by the time the plume reaches ground level. The initial concentration estimates may be adjusted 

### if adequate data are availableto accountfor the expected oxidation rate. (5) For ozone, sources of VOCs or NOx locating outside a designated ozone nonattainment area shall be presumed to not have a significant impact on the designated nonattainment area. If ambient monitoring indicates that the area of source location is in fact nonattainment, the source shall be permitted pursuant to this administrative regulation and 401 KAR 52:020 until the area is designated nonattainment pursuantto 42 U.S.C. 7407(d)(1)(A)(i). (6) The determination that a new major source or major modification will cause or contribute to a violation of a national ambient airquality standard shall be made as ofthe start-update. (7) Applications for major new sources and major modifications locating in attainment or unclassifiable areas, the operation of which will cause a new violation of a national ambient air quality standard but will not contribute to an existing violation, may be approved only if the following conditions are met: (a) The new source shall:

- 1 Meet an emissions limitation; 2. Meet adesign, operational, orequipmentstandard; or 3. Control existing sources so thatthe new sourcewill not cause aviolation of a national ambientairquality standard. (b) The new emissions limitations for the new and existing sources affected shall be state and federally enforceable in accordance with Section 6 ofthis administrative regulation. Section 4. Sources Locating in a Designated Nonattainment Area. This section shall apply to a new major stationary source or major modification thatwill be constructed in an area designated as nonattainment pursuantto 42 U.S.C. 7407(d)(1)(A){i) for a pollutantfor which the stationary source or modification is major. Approval to construct may be granted only if the conditions ofthis section are met. (1) The new major source or major modification shall be required to meet an emissions limitation that specifies the lowest acl1ievable emissions rate (LAER)forthesource. (2) The applicant shall demonstrate that all existing major sources owned or operated by the applicant, or an entity controlling, controlled by, or under common control with the applicant, in the Commonwealth of Kentucky are in compliance with all applicable emissions limitations and standards specified in Title 401, Chapters 50 to 65, and 40 C.F.R Parts 60 and 61 and 42 U.S.C. 7401-7626, or are in compliancewith an expeditious state and federally enforceable compliance scl1edule or a courtdecreeestablishing a compliance schedule. {3)(a) Except for VOCs or NOx emissions, emissions from existing sources in the affected area of the proposed new major source or modification, whether or not under the same ownership, shall be reduced or offset at a ratio of at least 1:1, so that there will be reasonable further progress toward attainment of the applicable national ambient air quality standard (NAAQS). Only those transactions in which the emissions being offset are from the same criteria pollutant category shall be accepted. (b) The rat1o oftotal emissions reductions ofVOCs or NOx to total increased emissions of the same air pollutantshall be at least the ratio indicated forthe following ozone nonattainmentarea classifications: 1. For marginal nonattainment areas, at least 1.1 to 1; 2. For moderate nonattainment are.as, atleast 1.15to 1; 3. Forserious nonattainment areas, at least 1.2to 1; 4. Forsevere nonattainmentareas, at least 1.3 to 1; and 5. For extreme nonattainmentareas, atleast 1.5 to 1. (4) The emissions reductions shall provide a positive netairquality benefit in the affected area. (a) Atmospheric simulation modeling shall not be required forVOCs and NOx. (b) Except as provided in Section 3(5) ofthis administrative regulation, compliance with subsection {3) ofthis section and Section 5(3)(e) ofthis administrative regulation shall be adequate to meetthis condition. (5) The proposed major stationary source ormajor modification shall include in the application for a construction permit an analysis ofthe alternative sites, sizes, production processes, and environmental control techniques for the proposed source, which demonstrates that benefits ofthe proposed source significantly outweigh the environmental and social costs imposed as a result of its location, construction, or modification.



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Section 5. Determining Credit for Emissions Offsets. (1) The baseline for determining credit for emissions reductions or offsets shall be, considenng that baseline actual emissions as defined in 401 KAR 51:001, Section 1{20), shall not be used for determining the baseline for emissions offsets: (a) The emissions limitations in effectwhen the application to construct or modify a source is filed; or (b) The actual emissionsofthe sourcefrom which offset credit is attained if: 1. The demonstration of reasonable further progress and attainment of ambient air quality standards for the SIP was based on actual emissions; or 2. The SIP does not contain an emissions limitation for thatsource or source category. (2) Creditfor emissions offsets. Credit for emissions offset purposes may be allowed for existing control ifthe existing control goes beyond the control required under401 KAR Chapters 50 to 65 and applicable federal regulations. (3) General provisions for calculating offsetvalues. (a) Offsetcalculations shall be made on a pound-per-hour basis ifall facilities involved in the emissions offset calculations are operating at their maximum orallowed production rate. (b) Offsets may be calculated on a Ions-per-year basis ifbaseline emissions for existing sources providing the offsets are calculated using the actual annual operating hoursforthe previous two (2) yearperiod. {c) If the cabinet requires certain hardware controls instead of an emissions limitation, baseline allowable emissions shall be based on actual operating conditionsforthe previoustwo (2) year period in conjunctionwith the required hardware controls. (d) If the emissions limitations required by the cabinet allow greater emissions than the uncontrolled emissions rate of the source, emissions offset creditshall be allowed only for control belowthe uncontrolled emissions rate. (e) The owner or operator of a new or modified major stationary source shall comply with any offset requirement in effect under this administrative regulation to ·Increase em·lssions ofan air pollutant byobtaining emissions reductions ofthe air pollutantfrom·. 1. The same source orother sources in the same nonattainmentarea; or 2. A source in another nonattainment area if: a. The other area has an equal or higher nonattainmentclassification than the area in which the source is located; and b. Emissions from the otherarea contribute to a violation ofthe national ambient airquality standard in the nonattainment area in which the source is located. (4) Calculating offsets ifan applicable emissions limitation does not exist. Ifthe Kentucky SIP does notcontain an emissions limitation for a source or source category, the emissions offset baseline involving the source shall be actual emissions determined under actual operating conditionsfor the previoustwo {2) year period. (5) Calculating offsetsfor existing fuel combustion sources. {a) The emissions for determining emissions offset credit involving an existing fuel combustion source shall be the allowable emissions underthe emissions limitation requirements ofthe cabinetforthe type offuel being burned when the new major source or major modification application isfiled. (b) Ifthe existing source has switched to a different type of fuel at some earlier date, a resulting emissions reduction, either actual or allowable, shall not be used for emissionsoffsetcredit. (c) Ifthe existing source commits to switch to a cleanerfuel at some future date, emissions offset credit based on the allowable emissions forthefuels involved shall not be allowed unless the permit is conditioned to require the use ofa specified alternative control measure thatwill achievethe same degree ofemissions reduction ifthe source switches backto adirtierfuel at some laterdate. {6) Calculating offsets for operating hoursand source shutdowns. (a) A source may be credited with emissions reductions achieved by shutting down an existing source orpermanently curtailing production or operating hours below baseline levels ifthe workforce to be affected has been notified in writing ofthe proposed shutdown or curtailment. {b) Emissions reductions achieved by shutting down an existing emissions unit or curtailing production or operating hours: 1. May be generallycredited for offsets pursuantto40 C.F.R. 51.165(a)(3}{ii)(C}{1) if: a. The reductions are surplus, permanent, quantifiable, and federally enforceable; and b. The shutdown orcurtailment occurred afterthe last dayofthe baseyearforthe SIP planning process. (i) The cabinet may consider a priorshutdown orcurtailmentto have occurred afterthe lastday ofthe baseyear ifthe projected emissions inventory used to develop an attainment demonstration explicitly includes the emissions from the previously shutdown or curtailed emission unit, pursuantto 40 C.F.R. 51.165(a){3)(ii)(C)(1)(ii). (ii) Creditshall not be givenfor a shutdown thatoccurred beforeAugust7, 1977; 2. That do not meetthe requirements ofsubparagraph 1.b. ofthis paragraph may be generally credited pursuant to 40 C.F.R. 51.165{a)(3) (ii)(C)(2) if: a. The shutdown orcurtailmentoccurred on orafterthe datethe construction permitapplication isfiled; or b. The applicant establishes that the proposed new emissions unit is a replacementforthe shutdown or curtailed emissions unit, and the emissions reductions achieved bythe shutdown or curtailment meetthe requirements ofsubparagraph 1·.a. ofthis paragraph. (7) Calculating offsets for hydrocarbon substitution. An emissions offset credit shall not be allowed for replacing one volatile organic compound with another of lesser photochemical reactivity, unless the replacement compound is methane, ethane, 1,1,1-trichloroethane, or trichlorofluoroethane. (8) Banking ofemissionsoffset credit. (a) New sources obtaining permits by applying offsets afterthe effective date ofthis administrative regulation may bank offsetsthatexceed the requirements ofSection 5(3) ofthis administrative regulation. (b) An owner or operator ofan existing source that reduces its own emissions may bank a resulting reduction beyond those required by regulation for use underthisadministraf1ve regulation, even ifthe offsets are appned "1mmediatelyto a new source permit. (c) Banked emissions offsets may be used underthe preconstruction review program required in 42 U.S.C. 7401 to 7626, as long as these banked emissions are identifted and accounted for in Kentucky's control strategy. {9) Offset creditfor meeting NSPS or NESHAPS. (a) If a source is subject to an emissions limitation established in a New Source Performance Standard {NSPS} or a National Emissions Standard for HazardousAir Pollutants (NESHAPS) and a different emissions limitation is required bythe cabinet, the more stringent limitation shall be used asthe baselinefordetermining creditfor emissions offsets. (b) The difference in emissions between NSPS or NESHAPS and otheremissions limitationsshall not 

### be used as offset credit. Section 6. Administrative Procedures for EmissionsOffsets. {1) Emission reductions shall 

### be enforceable bythe cabinet and the U.S. EPA, and shall 

### be accomplished by the start-up date ofthe new source. (a) If emissions reductions are to be obtained in a state that neighbors the Commonwealth for a new source to be located in the Commonwealth, the emissions reductions shall be enforceable by the neighboring state or local agencies and the U.S. EPA. (b) The necessaryemissionsoffsets may be proposed bythe owner ofthe proposed source or by the cabinet.



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{2) Source initiated emissions offsets. {a)The owneroroperatorofa source may propose: 1. Internalemissions offsets, which involve reductions from sources controlled bythe owner; or 2. External emissions offsets, which involve reductions from other sources, ifthe emissions offsets meet the requirements ofthis section and Section 4(3) ofthis administrative regulation. (b)An internal emissionsoffset shall be included and made enforceable as a condition ofthesource's permit. (c) An external emissions offset shall only be accepted ifthe cabinet requiresthe affected source to complywith a new emissions limitation to ensure that its emissions shall be reduced by a specified amount in a specified time; and the new emissions limitation shall be enforceable by the cabinet and the U.S. EPA (3) Cab1net initiated emissionsoffsets. (a)The cabinet maycommitto reducing emissionsfrom mobile sources and otherexisting sourcesto provide a netairquality benefit in the impact area ofa proposed new sourceto accommodate the proposed newsource. (b) This emissions reduction commitment shall be reflected in the emissions limitation requirements for the new and existing sources as required bythis section. Section 7. Source Obligation. {1) An owner or operator ofa source or modification subject to this administrative regulation shall construct and operatethesource or modification in accordance with the application submitted to the cabinet underthis administrative regulation and 401 KAR 52:020 orundertheterms ofan approvalto construct. (2)(a)Approval to construct shall become invalid ifconstruction: 1. Is not commenced within eighteen (18) months after receipt oftheapproval; 2. Is discontinuedfora period ofeighteen (18) months or more; or 3. Is not completedwithin a reasonable time. (b) The cabinet mayextend theeighteen (18) month period upon a satisfactorydemonstration that an extension isjustified. 1 An extension shall not apply to the time period between construction ofthe approved phasesofa phased construction project; and 2. Each phase shall commence construction within eighteen (18) months ofthe projected and approved commencementdate. (3) Approval to construct shall not relieve an owner or operator ofthe responsibility to comply fully with applicable provisions of401 KAR Chapters 50 to 65 and otherapplicable requirements under local, state, orfederal law. (4} If a particular source or modification becomes a major stationary source or major modification solely by virtue of a relaxation in an enforceable limitation which was established afterAugust 7, 1980, on the capacity ofthe source or modification otherwise to emit a pollutant, the requirements ofthis administrative regulation shaH apply to the source or modification as though construction had not yet commenced on the source or modiflcation. (5)(a) The provisions ofthis subsection shall apply to projects at existing emissions unrts ata major stationary source otherthan projects at a sourcewith a PAL, if: 1. There is a reasonable possibilitythata projectthat is not partofa majormodification may result in a significantemissions increase; and 2. The owneroroperator usesthe method specified in 401 KAR 51:001, Section 1(199)(b) to calculate projected actual emissions. (b) Before beginning actual construction of a project specified in paragraph (a) ofthis subsection, the owner or operator shall document and maintain a record ofthefollowing information: 1. A description ofthe project; 2. Identification ofthe emissions unitsfor which emissionsofa regulated NSR pollutant may be affected bythe project; and 3. A description of the applicability test used to determine that the project is not a major modification for any regulated NSR pollutant, including: a. Baseline actual emissions; b. Projected actual emissions; c. Amountofemissions excluded in calculating projected actual emissions and an explanation forwhythatamountwas excluded; and d. Anyapplicable netting calculations. (c) Fora project specified in paragraph (a) ofthis subsection, the owneroroperatorshall: 1. Monitorthe emissions ofany regulated NSR pollutantthat could increase as a result ofthe project and that are emitted by an emissions unit identified in paragraph (a)2 ofthis subsection; and 2. Calculate and maintain a record ofthe annual emissions, in tons peryear on a calendaryear basis, for: a. Five (5) yearsfollowing resumption of regular operations afterthe change; or b. Ten (10) years ifthe project increases the design capacityofor potentialtoemitforthat regulated NSRpollutantatthe emissions unit. (d) Ifthe unitis an existing EUSGU, before beginning actual construction, the owner oroperator: 1 Shall provide a copy ofthe information in paragraph (b) ofthis subsection to the cabinet; and 2. Shall not be required to obtain a determination from the cabinet before beginning actual construction; and 3. Shall submit a reportto the cabinet within sixty (60) days afterthe end ofeach year during which records are required to be generated under paragraph (b) ofthis subsection that contains the unit'sannual emissionsduring the calendaryear preceding reportsubmittal. (e)1. Foran existing unitotherthan an EUSGU, the owneroroperatorshall submit a reporttothecabinet if: a. The annual emissions, in tons per year, from a project identified in paragraph (a) of this subsection exceed !he baseline actual emissions, as documented and maintained pursuant to paragraph (b)3 of this subsection, by a significant amount for that regulated NSR pollutant; and b. The emissionsdifferfromthe preconstruction projection as documented and maintained pursuantto paragraph (b)3 ofthissubsection. 2. The report shall be submitted to the cabinet within sixty (60) days after the end of the year during which records are required to be generated under paragraph (b) ofthis subsection and shall contain the following: a. The name, address, and telephone number ofthe majorstationary source; b. The annualemissions as calculated pursuantto paragraph (c) ofthis subsection; and c. Anyotherinformation thatthe owneroroperatorwishesto include in the report. (f) The owner or operator of the source shall make the information required to be documented and maintained under this subsection availablefor review upon requestfor inspection bythe cabinetorthegeneral publicpursuantto 401 KAR 52:100.\ Section 8. Permit Condition Rescission. (1} An owner or operator holding a permitfor a stationary source or modification that was issued pursuantto 401 KAR 51 :050 or51 :051 E may requestthatthe cabinet rescind theapplicable conditions. (2) The cabinetshall rescind a permit condition ifthe owneroroperator: (a) Requests and demonstrates to the satisfaction of the cabinet that this administrative regulation does not apply to the source or modification orto a portion ofthe source or modification ifconstruction will have commenced afterSeptember22, 1982; and (b) Demonstrates thatthe rescission will notviolatethe requirements ofSections 4(3) and 7 ofthis administrative regulation.



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Section 9. Class I Areas. (1) The following areas, which were in existence on August 7, 1977, shall be Class I areas and shall not be redesignated: (a) International parks; (b) Nationalwilderness areas and national memorial parks which exceed 5,000 acres in size; and (c) National parksthatexceed 6,000 acres in size. (2) Any other area, unless otherwise specified in the legislation creating the area, is designated Class II but may be redesignated as provided in 40 C.F.R. 51 166(g). (3) The visibility protection requirements ofthis administrative regulation shall applyonlyto sources that may impact a mandatoryClass I federal area. (4) The following areas may be redesignated only as Class Ior II: (a) An areawhich as ofAugust 7,1977, exceeded 10,000 acres in size and was a national monument, a national primitive area, a national preserve, a national recreational area, a national Wild and scenic river, a nationalwildlife refuge, a national lakeshore or seashore; and (b) A national park or nationalwilderness areaestablished afterAugust7, 1977, which exceeds 10,000 acres in size. Section 10. Protection ofVisibility. (1) Newsource review; applicability and exemptions. (a) A stationary source or modification to which this section applies shall not begin actual construction without a permit that states the stationarysource or modification shall meetthe requirements ofthis section.

. (b) This section shall apply to construction of a new major stationary source or major modification that will be constructed in an area designated as nonattainment under42 U.S.C. 7407(d)(1)(A)(i) and potentially have an impacton visibility in a Class Iarea. (c) This section shall apply to a majorstationary source or major modification for each pollutant subject to regulation under42 U.S.C. 7401 to 7626that itwill emil, except as provided in paragraphs (d) and (e) ofthis subsection. (d) This sed1on shall notapplyto a particular majorstationarysource or major modification if: 1 The source or modification is a nonprofit health or nonprofit educational institution or a major modification will occur at the institution, and the Governorofthe Commonwealth requests that it be exemptfrom the requirements ofthis section; and 2. The source is a portable stationarysourcethat has previously received a permit underthissection and will be temporarily**relocated~** and (a} Theemissionsfrom the source will notexceed the allowable emissions; b. The emissions from the sourcewill not impact a Class Iarea oran area where an applicable increment is knownto be violated; and c. Reasonable notice is given to the cabinet prior to the relocation, identifying the proposed new location and the probable duration of operation atthe new location. The notice shall be giventothe cabinet not lessthanten (10) days in advance ofthe proposed relocation unless a differenttime duration is previouslyapproved by the cabinet pursuantto this section. (e) This section shall not apply to a major stationary source or major modification with respect to a particular pollutant, ifthe allowable emissions ofthat pollutantfrom the source, orthe netemissions increase ofthat pollutantfrom the modification: 1. Will not impact a Class I area; 2. Will not impact an area where an applicable increment is known to be violated; and 3. Will be temporary. (2) VIsibility impact analyses. The owner or operator ofa source shall provide an analysis ofthe impairment to visibility that will occur in a Class I area as a result ofthe source or modification and general commercial, residential, industrial, and other growth associated with the source or modification. (3) Federal land manager notification. (a) The federal land manager and the federal official charged with direct responsibility for management of Class I areas shall have an affirmative responsibility to protectthe visibility and otherairquality related values ofthe Class l lands and to consider, in consultation with the cabinet, ifa proposed source ormodification will have an adverse impact on these values. (b) The cabinet shall provide written notification to all affected federal land managers and to the federal official charged with direct responsibility for management of lands within the Class I area of a permit application or an advanced notice of a permit application for a proposed new majorstationarysource or majormodificationthat may affectvisibility in a Class I area. The notification shall: 1. Include a copy ofall information relevant to the permitapplication; 2. Be submitted pursuant to this paragraph within thirty (30) days of receipt of the permit application or advanced notice of permit application and at leastsixty (60} days priorto a public hearing on the applicationfor a permitto construct; and 3. Include an analysis ofthe proposed source's anticipated impactson visibility in a Class I area. (c}1. The cabinet shall consider an analysis by the federal land manager, provided within thirty (30) days ofthe notification and analysis required by paragraph (b) of this subsection, that the proposed new major stationary source or major modification may have an adverse impact on visibility in a Class Iarea. 2. Ifthe cabinet finds that the anafysis does not demonstrate, to the satisfaction of the cabinet, that an adverse impact on visibility will result in the Class I area, the cabinet shall, in the public hearing notice required in 401 KAR 52:100, either explain that decision or give notice asto wherethe explanation may be obtained. (d) Adverse impact on visibility as it applies to paragraph (c) ofthis subsection shall be determined on a case-by-case basis, taking into accountthe geographicextent, intensity, duration, frequency, and time ofvisibility impairments, and howthese factors correlatewith the limes ofvisitor use ofthe Class I area, and the frequency and time ofnatural conditionsthat reduce visibility. (4} Public participation. The cabinetshall followthe applicable procedures of401 KAR 52:100 in processing applications underthis section and shallfollowthe procedures at 40 C.F.R 52.21(r), effectiveJuly 1, 2009, to the extentthatthe procedures of401 KAR 52:100do notapply. (5} National visibility goal. (a) The·cabinet shall onry fssue permits to those sources for which emissions will be consistent with making reasonable progress toward the national goal ofpreventing future, and remedying ex·lsting, impairment ofvis'lbility in Class I areaswhich impairment results from manmade airpollution. (b) In making the decision to issue a permit, the cabinet shall consider: 1 The costs ofcompliance; 2. The time necessaryfor compliance; 3. The energy and non-airqualityenvironmental impacts ofcompliance; and 4. The useful life ofthe source. (6) Monitoring. (a} The cabinet may require monitoring ofvisibility in a Class I area near the proposed new stationary source or major modification using human observations, teleradiometers, photographic cameras, nephelometers, fine particulate monitors, or other appropriate methods as specified bythe U.S. EPA. (b) The mon1toring method selected shall be determined on acase-by-case basis bythe cabinet. (c) The cabinet shall not undertake visibility monitoring in a Class I areawithoutthe approval ofthe federal land manager. (d) Data obtained from visibility monitoring shall be made available to the cabinet, the federal land manager, and the U.S. EPA, upon 

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request. Section 11. Plant-wide Applicability Limit Provisions. The cabinet may approve the use of an actuals PAL (PAL} for an existing major stationary source ifthe PAL meets the requirements ofthissection. (1} General provisions. (a} Ari owneroroperator mayexecute a projectwithouttriggering majorNSR, ifthe source maintains its total source-wide emissions below the PAL level, meetsthe requirements in this section, and complieswith the PAL permit. Ifthese conditions·are met, a project: 1. Shall not be considered a majormodification for the PAL pollutant; 2. Shall not haveto be approvedthrough Kentucky's major NSR program; and 3. Shall not be subject to the provisions of Section 7(4} of this administrative regulation concerning restrictions on relaxing enforceable emissions limitationsthatthe major stationarysource used to avoid applicability ofthe major NSR program. (b) Except as provided undersubparagraph (1}(a}3 ofthis section, the major stationary source shall continue to comply with all applicable federal or state requirements, emissions limitations, and work. practice requirements that were established prior to the effective date of the PAL. (c) The cabinet shall notallow a PALfor VOC orNOxfor any majorstationary source located in an extreme ozone nonattainmentarea. (2} Permit application requirements. The owner or operator of a major stationary source shall submit the following Information to the cabinetfor approval as part ofan application for a permit or permit revision requesting a PAL: (a) A list ofall emissions units atthe sourcedesignated assmall, significantormajor, based on their potentialto emit; (b) Identification ofthe federal and state applicable requirements, emissions limitations, and workpractice requirementsthat applyto each emissions untt; (c) Calculationsofthe baseline actual emissionsforthe emissions unttswith supporting documentation; and {d) The calculation procedures the owner or operator proposes to use to convert the monitoring system data to monthly emissions and annual emissions based on atwelve {12} month rolling total for each month as required bysubsection (12)(a) ofthissection. {3) Establishing a PAL. The cabinet shall establish a PAL at a major stationary source in a federally enforceable permit pursuant to the requirements ofthis section. (a) The PAL shall impose an annual emissions limitation in tons per year that is enforceable as a practical matter for the entire major stationarysource, in which: 1. For each month during the PAL effective period after the first twelve {12) months of establishing a PAL, the owner or operator shall demonstrate thatthe sum ofthe monthly emissions from each emissions unit under the PAL forthe previous twelve {12) consecutive months is lessthan the PAL as atwelve {12) month average, rolled monthly; and 2. Foreach month during the first eleven (11) monthsfrom the PAL effective date, the owner oroperatorshall demonstratethatthe sum of the preceding monthlyemissionsfromthe PALeffectivedateforeach emissions unit underthe PAL is less than the PAL; (b) The PAL shall be established in a PALpermitthat: 1. Meetsthe publicparticipation requirements in subsection (4) ofthis section; and 2. Containsallthe requirements ofsubsection (6) ofthis section; (c) A PAL shall include fugitive emissions, totheextentquantifiable, from all emissions unitsthatemitorhavethe potential to emitthe PAL pollutantatthe majorstationarysource; (d) Each PALshall regulate emissions of onlyone (1) pollutant; (e) Each PALshall havea PAL effective period often (10)years; (f) The owner or operator of a major stationary source with a PAL shall comply with the monitoring, recordkeeping, and reporting requirements ofsubsections (11}to (13) ofthis sectionforeach emissions unit underthe PALthrough the PALeffective period; and {g) Emissions reductions of a PAL pollutant that occur during the PAL effective period shall not be creditable as decreases for offsets under40 C.F.R. 51.165{a)(3)(ii), unless: 1. The level ofthe PAL is reduced bytheamount oftheemissions reductions; and 2. The reductions would be creditable in the absence ofthe PAL. (4) Public participation requirements. PAls for existing major stationary sources shall be established, renewed, or increased pursuant to thissubsection and theapplicable procedures of401 KAR 52:100 for issuing permits or permit revisions. The cabinetshall: (a) Provide the public with notice of the proposed approval of a PAL permit with at least a thirty (30) day period for submittal of public comment; and (b) Address all material comments beforetaking final action on a PAL permll or permit revision. (5) Settingtheten (10) year PAL level. (a) The PAL level for a majorstationary source shall be the sum ofthe baseline actual emissions ofthe PAL pollutant for each emissions unit at the source during the chosen twenty-four (24) month period plus the applicable significant level for the PAL pollutant under the definition for "significant" in 401 KAR51:001, Section 1 or under42 U.S.C. 7401-7671q, whichever is lower. (b) In establishing a PAl level for a PAL pollutant, only one (1) consecutive twenty-four (24) month period shall be used to determine the baseline actual emissionsfor all existing emissions units. (c) A different consecutivetwenty-four (24) month period maybe usedforeach different PAL pollutant. (d) Emissions associated with units that were permanently shut down after the chosen twenty-four (24) month period shall be subtracted from the PAL level. (e) Emissions from unitsforwhich actual construction began after the twenty-four (24) month period shall be added to the PAL level in an amountequalto the potentialto emitofthe units. (f) The cabinet shall specify a reduced PAL level in the PAL permit to become effective on the future compliance date of any applicable federal orstate regulatory requirementthatthe cabinet is awareofpriorto issuance ofthe PAL permit. (6) Contents ofthe PAL permit. The PAL permit shall contain thefollowing information: (a) The PAL pollutant and theapplicable source-wide emissions limitation in tons peryear; (b) The PAL permiteffective date and theexpiration date ofthe PAL or PALeffective period; (c) Specification in the PAL permit that ifa major stationary source owner or operator applies to renew a PAL under subsection {9) ofthis section beforethe end ofthe PALeffective period, the PAL shall remain in effect until a revised PAL permit is issued bythe cabinet; (d)A requirementthatemissions calculationsfor compliance purposes include emissionsfrom startups, shutdowns, and malfunctions; (e) A requirement that, once the PAL expires, the major stationary source shall be subject to the requirements of subsection (8) ofthis section; (f) The calculation procedures that the major stationary source owner or operator shall use to convert the monttoring system data to monthly emissions and annual emissions based on a twelve {12) month rolling total for each month as required by subsection (12)(a) of this section; (g)A requirementthat the majorstationary source owneroroperatorshall monttor all emissions units in accordance with the provisions in subsection (12) ofthis section; (h) A requirementthatthe owner oroperatorshall retain the records required undersubsection (12) ofthis section on site. Records may be



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retained in an electronicformat; (i) A requirement for the owner or operator to submit, by the reports required under subsection (13} of this section by the required deadlines; and 

### 0) Any requirements necessary to implementand enforce the PAL (7) PAL effective period and reopening ofa PAL permit (a) A PAL effective period shall beten (10) years. (b) The cabinet shall reopen a PAL permitto: 1 Correcttypographical or calculation errors made in setting the PAL; 2. Reflect a more accuratedetermination ofemissions used to establish the PAL; 3. Reducethe PAL ifthe owneroroperatorofthe majorstationary source creates creditable emissions reductions for use as offsets under 40 C.F.R 51.165(a)(3}(ii); or 4. Revisethe PALto reflect an increase in the PAL according to subsection (10) ofthis section. (c) The cabinet may reopen the PAL permit, duringthe PAL effective period, to: 1. Reducethe PAL to reflect newly applicablefederal requirements with compliance dates afterthe PAL effectivedate; 2. Reduce the PAL consistentwith any other requirement: a. That is enforceable asa practical matter; and b. That may be imposed on the majorstationarysource underthe SIP; and 3. Reducethe PAL ifthe cabinetdeterminesthata reduction is necessaryto avoid causing or contributing to: a. A NationalAmbientAirQuality Standard (NAAQS) orPSD incrementviolation; or b. An adverse impact on visibility or another air quality related value that has been identified for a federal Class I area by a federal land managerand forwhich information is available to the general public. (d) All permit reopenings shall be carried out underthe public participation requirements ofsubsection (4) ofthis section except for permit reopenings to correcttypographical or calculation oferrorsthat do not increasethe PAL level. (8) Expiration of a PAL. A PAL that is not renewed shall expire at the end of the PAL effective period and the requirements of this subsection shall then apply. (a} Each emissions unit, or each group ofemissions units, that existed under the PAL shall comply with an allowable emissions limitation undera revised permit established as follows: 1. An owner or operator of a major stationary source using a PAL shall submit a proposed allowable emissions limitation for each emissions unit, or each group ofemissions units, by distributing the PAL allowable emissions for the major stationary source among each of the emissions units thatexisted underthe PAL a. This proposal shall be submitted to the cabinet at least six (6) months before the expiration of the PAL permit but not sooner than eighteen (18} months before permitexpiration. b. Ifthe PAL has not yet been adjusted for an applicable requirement that became effective during the PAL effective period, as required undersubsection (9)(e} ofthis section, distribution ofallowable emissions shall be made as ifthe PAL has been adjusted. 2. The cabinet shall provide the date and procedurethe owneroroperatorshall use to distributethe PAL allowable emissions. 3. The cabinetshall issue a revised permn: incor;::Jorating allowable limits for each emissions unit, or each group ofemissions units, as the cabinetdetermines is appropriate. (b) Each emissions unitshall complywiththe allowable emissions limitation on a twelve (12) month rolling basis. The cabinet may approve the use ofmonrtoring systems otherthan CEMS, CERMS, PEMS, or CPMS ifthe alternate monrtoring system demonstrates compliance with the allowable emissions limitation. (c) The source shall continue to comply with a source-wide, multiunitemissions cap equivalentto the level ofthe PAL emissions limitation until the cabinet issues the revised permit incorporating allowable limits for each emissions unit or each group ofemissions units. (d) A majormodification atthe majorstationarysource shall be subjectto major NSR requirements. · (e) The majorstationary source owneroroperator shall continue to complywith any state orfederal applicable requirements eliminated by the PAL that applied during or before the PAL effective period, exceptfor those emissions limrtations established pursuant to Section 7(4) of this administrative regulation. (9) Renewal ofa PAL (a} Public participation requirements. 1. The cabinet shall follow the public participation procedures specified in subsection (4) ofthis section in approving a request to renew a PAL for a majorstationary source. 2. The cabinet shall provide awritten rationale forthe proposed PAL levelfor public review and comment 3. Any person maypropose a PAL level forthe source for consideration by the cabinet during the public review period. (b) Application deadline. 1. A major stationary source owner or operator shall submit an application for renewal ofa PAL at least six (6) months before the date of permitexpiration but not earHerthan eighteen (18) months before permitexpiration. 2. The deadlinefor application submittal shall ensurethatthe permitshall notexpire before the permit is renewed. 3. If a complete application for renewal is submitted within the timeframe specJfied in subparagraph 1 of this paragraph, the PAL shall continue to be effective untilthe revised permitwith the renewed PAl is issued. (c) Application requirements. The application to renew a PAL permitshall contain: 1. The information required in subsection (2) ofthis section; 2. A proposed PAl level; 3. The sum ofthe potential to emitofall emissions units underthe PALwith supporting documentation; and 4. Anyother information the owneror operatorwishesthe cabinetto consider in determining the appropriate level to renew the PAL. (d) PAL adjustment. 1. A PAL shall not exceed the source's potential to emit. The cabinet shall adjust the PAl downward to a level not greater than the potentialtoemit ifasource's potential to emit has declined below the PAl level. 2. The cabinet may renew the PAL atthe same level asthe current PALwithout considering the factors specified in subparagraph 3 ofthis section, ifthe emissions level calculated according to subsection (5) ofthis section is equal to or greaterthan eighty (80) percent ofthe PAL level; or 3. The cabinet may set the PAL at a level that is determined to be: a. More representative ofthe source's baseline actual emissions; or b. Appropriate considering the following factors: (i) Air quality needs; (ii} Advances in control technology; (iii) Anticipated economicgrowth in the area ofthe source; (iv) The cabinet's goal ofpromoting voluntary emissions reductions; or



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(v) Otherfactors as specifically identified bythe cabinet in its written rationaleforsetting the PAL level. 4. The cabinet shall not approve a renewed PAL level higherthan the current PAL, unless the major stationary source has complied with the provisions ofsubsection {1O) ofthissection. {e) The PAL shall be adjusted in conjunctionwith the PAL permit renewal orTitleV permit renewal, whichevercomesfirst, 

### if: 1. The compliance date fora state orfederal applicable requirementthat appliesto the PAL source occursduring the PAL effective period; 

# '"'2. The cabinet has notalreadyadjusted forthe requirement. (10} Increasing a PAL during the PAL effective period. The cabinet may increase a PAL emissions limitation during the PAL effective period ifthe majorstationarysource complieswith the provisions ofthissubsection. (a) Application procedures. To request an increase in the PAL limit for a PAL major modification, the owner or operator of the major stationary sourceshall submita complete application, which shall include: 1. Identification oftheemissions units contributing to the increase in emissionsforthe PAL major modification; 2. Demonstration that increased PAL, as calculated in paragraph {c) ofthis subsection exceedsthe PAL, and: a. The level of control that results from BACT equivalent controls on each significant or major emissions unit shall be determined by conducting a new BACT analysiswhen the application is submitted, unless the emissions unit is currently required to complywith a BACT or LAER requirementthatwasestablishedwithin the preceding ten (10}years. b. If an emissions unit currently complies with BACT or LAER, the assumed control level for that emissions unit shall be equal to the current level ofBACTor LAERfor that emissions unit; and 3. A statement 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 beginsto emitthe PAL pollutant. (b) NSR permitand compliance requirement The owner or operator shall obtain a major NSR permit for all emissions units contributing to the increase in emissionsforthe PAL majormodification. 1. A significant level shall notapply in decidingforwhich emissions units a major NSR permit shall be obtained; and 2. Emissions units that obtain a major NSR permit shall comply with any emissions requirements resulting from the major NSR process, even though the units shall also become subjectto the PALor shall continueto be subjectto the PAL (c) Calculation ofincreased PAL The cabinet shall calculate the new PAL as the sum ofthe allowable emissionsfor 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, plusthe sum ofthe baseline actual emissions ofthe small emissions units. (d) Public notice requirement The public notice requirements ofsubsection (4} ofthis section shall be followed during PAL permit revision foran increased PAL level. (11) Monitoring requirementsfor PALs. (a} General requirements. 1. Each PAL permit shall contain enforceable requirements for the chosen monitoring system that accurately determines plant-wide emissions ofthe PAL pollutant in terms ofmass per unit oftime; 2. A monitoring system authorized for use in the PAL permitshall be: a. Approved by the cabinet pursuantto thissubsection; and b. Based on sound science and meet generally-acceptable scientific proceduresfordata quality and manipulation; 3. The data generated by a monitoring system shall meet minimum legal requirements for admissibility in ajudicial proceeding to enforce the PAL permit; 4. The PAL monitoring system shall employ one (1) or more of the four (4} general monitoring approaches meeting the minimum requirements setforth in paragraph (b) ofthissubsection; 5. The cabinet may approve an alternative monitoring approach that meets the requirements of subparagraphs 1 to 3 ofthis paragraph; 

# '"'6. Failureto use a monitoring system that meetsthe requirements ofthissection shall renderthe PAL invalid. (b) Minimum performance requirements for approved monitoring approaches. If conducted in accordance with the minimum requirements in paragraphs (c) to (i) ofthissubsection, the following shall be acceptable monitoring approaches: 1. Mass balance calculationsfor activities using coatings orsolvents; 2. CEMS; 3. CPMS or PEMS; and 4. Emissionsfactors. (c) Mass balance calculations. An owner or operator using mass balance calculations to monitor PAL pollutant emissions from activities using coatings orsolventsshall: 1. Provide a demonstrated means ofvalidating the published content ofthe PAL pollutant contained in or created by all materials used in oratthe emissions unit; 2. Ifit cannot be accounted for in the process, assume thatthe emissions unit emits all ofthe PAL pollutant contained in or created by any raw material orfuel used in or atthe emissions unit; and 3. Ifthe vendorofthe material orfuel from which the pollutant originates publishes a range, use the highestvalue ofthe published range of pollutantcontentto calculatethe PAL pollutantemissions, unless the cabinet determinesthere issite-specificdata or asite-specifiC monitoring program to supportanotherpollutant contentwithin the range. (d) CEMS. An owneror operator using CEMSto monitor PAL pollutantemissions shall meetthefollowing requirements: 1. CEMS shall complywith applicable Performance Specifications found in 40 C.F.R. Part60,AppendixA; and 2. CEMS shall sample, analyze, and record data at leastevery fifteen (15) minuteswhile the emissions unit is operating. (e) CPMS or PEMS. An owner or operator using CPMS or PEMS to monitor PAL pollutant emissions shall meet the following requirements: 1. The CPMS orthe PEMS shall be based on current site-specificdata demonstrating a correlation between the monitored parameterand the PAL pollutantemissions acrossthe range ofoperation oftheemissions unit; and 2. Wl1ile the unit is operating, each CPMS or PEMS shall sample, analyze, and record data at least every fifteen (15) minutes, or at another lessfrequent interval approved bythe cabinet. (f) Emissions factors. An owner or operator using emissions factors to monitor PAL pollutant emissions shall meet the following requirements: 1 All emissionsfactors shall be adjusted, ifappropriate, to accountfor the degreeofuncertaintyorlimitations in the factors' development; 2. The emissions unit shall operatewithinthe designated range ofuse for the emissions factor, ifapplicable; and 3. The owner or operator of a significant emissions unit that relies on an emissions factor to calculate PAL pollutant emissions shall conduct validation testing to determine a site-specific emissions factorwithin six (6) months of PAL permit issuance ifthe cabinet determines thatthe testing is required and technically practicable. (g) A source owneror operatorshall record and report maximum potential emissions without considering enforceable emissions limitations



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or operational restrictions for an emissions unit during any period oftime there is no monitoring data, unless another method for determining emissionsduring the periods is specified in the PAL permit (h) Ifan owneroroperatorofan emissions unit cannot demonstrate a correlation between the monitored parameters and the PAL pollutant emissions rate at all operating points ofthe emissions unit, as an alternative to the requirements in paragraphs (c) to (g) ofthis subsection, in conjunction with permit issuancethe cabinet shall: 1. Establish default values for determining compliance with the PAL based on the highest potential emissions reasonably estimated at operating points ifa correlation cannot be demonstrated; or 2. Ifthere is not a correlation between monitored parameters and the PAL pollutant emissions, determine that operation ofthe emissions unit during operating conditions is a violation ofthe PAL. (i) Revalidation. All data used to establish the PAL pollutant shall be revalidated through performance testing or other scientifica!ly valid means approved bythe cabinet. Validation testing shall occuratleastonce everyfive (5) years after issuance ofthe PAL. (12) Recordkeeping requirements. {a) The PAL permit shall require an owner or operator to retain a copy of all records necessary to determine compliance with any requirement ofthis section and ofthe PAL, including a determination of each emissions unit'stwelve {12) month rolling total emissions forfive (5) yearsfrom the date ofthe determination. (b) The PAL permit shall require an owner or operator to retain a copy ofthe following records for the duration 

### ofthe PAL effective period plus five (5) years: 1 A copyofthe PAL permitapplication and any applicationsfor revisions to the PAL: and 2. Each annual certification ofcompliance pursuantto TitleV and the data usedto certifythe compliance. (13) Reporting and notification requirements. The owner or operator shall submit semi-annual monitoring reports and prompt deviation reportsto the cabinet in accordance with 401 KAR Chapter52that meetthe following requirements: (a) Semiannual report. The semiannual report shall be submitted to the cabinet within thirty (30) days ofthe end ofeach reporting period and shall contain: 1. The identification ofownerand operator and the permit number; 2. Total annual emissions, in tpy, based on a twelve (12) month rolling total for each month in the reporting period recorded pursuant to subsection {12)(a) ofthis section; 3. All data used in calculating the monthly and annual PAL pollutant emissions, including any quality assurance or quality control data; 4. A listofanyemissions units modified or addedto the majorstationary source during the preceding six (6) month period; 5. 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 following a deviation; 6. A notification ofpermanent ortemporary shutdown ofany monitoring system induding: a. The reason for the shutdown; b. The anticipated date thatthe monitoring system shall be fully operational orshall be replaced with another monitoring system; c. If applicable, a statement that the emissions unit monitored by the monitoring system continued to operate without the monitoring system; and d. The calculation of the emissions of the pollutant or the number determined according to subsection (11)(g) of this section that is included in the permit; and 7. A signed statement by the responsible official, as defined by 401 KAR 51:001, Section 1(210), certifying the truth, accuracy, and completeness ofthe information provided in the semiannual report. {b) Deviation report. The major stationary source owner or operator shall submit reports of any deviation or exceedance of the PAL requirements, including periods monitoring is unavailable. 1. A report submitted pursuantto40 C.F.R. 70.6(a)(3)(iii)(B) shall satisfythis deviation reporting requirement; 2. The deviation report shall be submitted within the time limits prescribed bythe applicable program implementing 40 C.F.R. 70.6(a)(3)(iii) (B);3. The deviation report shall contain thefollowing information: a. The identification ofthe owner, the operator, and the permit number; b. The PAL requirementthatexperienced the deviation orthatwas exceeded; c. Emissions resulting from the deviation orthe exceedance; and d. A signed statement by the responsible off"rcial, as defined by 401 KAR 51:001, Section 1(210), certifying the truth, accuracy, and completeness ofthe information provided in the report. (c) Revalidation results. The owner or operator shall submit to the cabinet the results of any revalidation test or method within three (3) months aftercompletion ofthetestormethod. (14) Transition requirements. (a) Afterthe U.S. EPA approves the Kentucky SIP revisions forthe PAL provisions published at67 Fed. Reg. 80186, December 31, 2002, the cabinet shall only issue a PALthat complies with the requirements ofthis section. (b) The cabinet may supersede a PAL thatwas established beforeAugust 10, 2006, with a PALthatcomplieswith the requirements ofthis administrative regulation. (8 Ky.R. 1120; Am. 9 Ky.R. 358; eff. 9-22-1982; 12 Ky.R. 879; 1273; eff. 2-4-1986; 14 Ky.R. 892; eff. 12-11-1987; 1612; 1909; eff. 4-14-1988; 19 Ky.R. 1105; 1585; eff. 2-8-1993; 30 Ky.R. 2209; 2520; eff. 7-14-2004; 36 Ky.R. 895; 1275; 1474; eff. 2-5-2010; 37 Ky.R. 2470; 38 Ky.R. 28; eff. 8-4-2011; 39 Ky.R. 135; eff. 12-7-2012.)



# http;/ /www.lrc.ky.gov/kar/40110511052.htm 1/14/2013

# PROPOSED REGULATIONS

# ENERGYAND ENVIRONMENTCABINET StevenL Beshear Governor



# Ms. DonnaLittle Regulations Compiler LegislativeResearch Commission CapitolAnnexRoom029 Frankfort,Kentucky 40601 DearMs. Little: capitalPlazaTower 500 Mero

### Street, 12111 

### Floor Frankfort, Kentucky 40601

Phone: (502) 564-7192



### Fax: (502) 564·•7484



## June 15,2012 Leonard K. 

## Peters Secretary



## Pursuant to 

## KRS Chapter 13A, the Energy and Environment Cabinet hereby files the 

# enclosedadministrativeregulationsforpublicationin

# theJuly 1,2012,AdministrativeRegisterof Kentucky. 

# 'This submittalincludesthe originalandfive copiesofthefollowingregulations: 401 KAR51:001. Definitionsfor401 KARChapter51. (Amendment) 401 KAR51:017. Preventionofsignificantdeteriorationofairquality. (Amendment) 401 KAR51:052. Reviewofnewsources

## inorimpactinguponnonattainmentareas. (Amendment) A public hearing will be 

## held on July 24, 2012, at 10:00 am. (Local Time), 

# in Conference Room 201B of the Division for 

## Air Quality, 200 Fair Oaks Lane, Frankfort, Kentucky. Please contact Laura Lund at (502) 564-3999, ext. 4428, orLauraLund@ky.gov, 

## if 

# youhave any questionsregardingthis submittal orthepublichearing.



# LKP/ll Enclosures

KentuckyUnbridledSpirit.com

# Sinc:r:l~

# V 

# t% ffat;'-".;;..,-· LeonardK. Peters, Secretary

An Equal Opportunity EmplOyer MIF/0SENATE MEMBERS David L. Williams President. LRC Co-Chair Katie Kratz Stine President ProTern

Robert Stivers Majority Floor Leader 

### R. 

### J. Palmer 

### II Minority Floor Leader 

# LEGISLATIVE RESEARCH COMMISSION

Dan Seum Majority Caucus Chair Johnny RayTurner Minority Caucus Chair Carroll Gibson MajorityWhip Jerry P. Rhoads

MinorityWhip



## TO:

FROM: StateCapitol 700 CapitolAvenue FrankfortKY 40601 502-564-8100 Capitol FAX 502-223-5094 Annex FAX 502-564-6543 lrc.ky.gov

Robert Sherman Director



## MEMORANDUM LauraLund, Environmental TechnologistIII DivisionforAirQuality DonnaLittle RegulationsCompiler HOUSE MEMBERS Gregory0. Stumbo Speaker, LRC Co-Chair LarryClark Speaker ProTam



### RockyAdkins Majority Floor Leader JeffHoover Minority Floor Leader Robert R. Damron Majority Caucus Chair Bob DeWeese Minority Caucus Chair TommyThompson MajorityWhip DannyR. Ford MinorityWhip



## RE: AcknowledgementofProposedAdministrativeRegulationsand/orAmendment

## 401 KAR51:001,401 KAR51:017, and401 KAR51:052 DATE: 

## June 14, 2012 A copyofeachadministrativeregulationlistedabove isenclosedforyourfiles. Theseadministrative regulationsaretentativelyscheduledforreviewbytheAdministrativeRegulationReviewSubcommittee at its August2012meeting. Wewillnotifyyouofthe dateandtimeofthis meetingwhenithasbeen scheduled. Pursuantto KRS 13A.280,

## ifapublichearingisheldoryoureceivewrittencommentsduringthepublic commentperiod,the StatementofConsiderationfortheseadministrativeregulationsisduebynoonon August15,2012.PleasereferenceKRS 13A.270and 13A.280forotherrequirementsrelatingtopublic hearingsandthe StatementofConsideration. Ifyouhave anyquestions,pleasedonothesitateto contactmeat (502) 564-8100. Enclosures

### Steven L. Beshear Govemor



## ScottDavis, Chief AirPlanningBranch U.S. EPA,Region4 61 ForsythStreet, SW Atlanta, Georgia30303 

## Dear

# Mr. Davis: Energyand Cabinet Departmentfor Environmental Protection Division forAirQuality 200 FairOaks Lane, 1st Floor Frankfort, Kentucky 40601-1403 air,ky.gov



## June 18, 2012 Leonard K. Peters Secretary



## The KentuckyDivisionfor Air

## Qualityencloses foryourreviewand comment a

## proposalto amend the following administrative regulations, which are currently approved to the Kentucky State Implementation Plan. These amendments were filed with the Legislative Research Commission on June 14, 2012. Two sets of the following administrative regulations are enclosed: 401 KAR51:001.Definitionsfor401 KARChapter51. (Amendment) 401 KAR51:017. Preventionofsignificantdeteriorationofairquality. (Amendment) 401 KAR51:052. Review ofnewsourcesin orimpactinguponnonattainmentareas. (Amendment) 

## IbiS letter, the regulations, and the public hearing notice have been transmitted electronically to you and Ms. Lynorae Benjamin. The proposed administrative regulations will bepublished 

## inthe July 1, 2012,AdministrativeRegister of Kentucky. 

## A public hearing will

## be conducted on July 24,2012, at 10:00 a.m., in Conference Room 201B ofthe Division for Air Quality, 

## 200 Fair Oaks Lane, Frankfort, Kentucky. Comments on the proposed regulation amendments

# willbe accepteduntilclose ofbusinessonJuly 31, 2012. Ifyouhave any comments orquestions regardingthis submittal,please contactLauraLund at(502) 564-3999, ext. 4428, orLaura.Lund@ky.gov.



## Cc: Lynorae Benjamin JSU!l Enclosures

KentuckyUnbridledSpirit.com 

# ):aJtW

JohnS.Lyons

# ~ Director

An

### EqualOpportunityEmployerMIF/D

### Steven L. Beshear Governor



## Ms. GwenKeyesFleming Regional Administrator U.S. EPA,Region4 

## Energyand EnvironmentCabinet Departmentfor Environmental Protection Division for Air Quality 200 FairOaks Lane, 1stFloor Frankfort, Kentucky 40601-1403 air.ky.gov



## June27,2012

SamNunnAtlantaFederalCenter 61 ForsythStreet, SW Atlanta, GA30303-8960 DearMs. Fleming, Leonard K. Peters Secretary



## The Kentucky Division for Air Quality is requesting that the EPA propose approval ofthe following proposed administrativeregulationsbyparallelprocessingforthepurpose ofexpeditingthe adoption ofthese regulationsinto the Kentucky SIP. The amendments to these administrativeregulations revise defmitions to reflect the New Source Review (NSR) program at the federal level. This regulatory action establishes significantimpact levels, significantmonitoring concentrations, andbaseline dates for the implementationof the 

## PM2.5 NAAQS. Also, the amendments adopt the significant emissions rates to determine NSR applicability for PM2.5 

## and PM2.5 

## precursors. The amendments were filed with the Legislative Research CommissiononJune 14,2012,and copieswere submittedto the EPA onJune 19,2012. 

## 401 KAR51:001. Definitionsfor401 KARChapter51. 401 KAR51:017. Preventionofsignificantdeteriorationofairquality. 401 KAR51:052. ReviewOfnew sourcesin orimpactingupon nonattainmentareas. A schedulefor fmal adoptionofthe administrativeregulations intotheKentuckySIPis as follows: Endofpublic commentperiod, inwhichapublichearing is July31,2012 conducted SubmitStatementofConsiderationofcomments received August 15,2012 duringnublic commentneriod Firstlegislativesubcommittee (AdministrativeRegulation September2012 Review Subcommittee)reviewsre!!ulation Secondlegislativesubcommittee (Natural Resources and October2012 Environment Subcommittee)reviewsregulation 

## Ifreviewedby 2nd subcommittee, the effectivedate isatadjournment Announce effective date ofregulation ofmeeting, else 30daysafterthe regulationreferral by 1 •t 

## subcommittee Submitamendmentsto EPAas an amendmenttoKentucky's SIP EarlyNovember2012

KentuckyUnbridledSpirit.com AnEqual Opportunity EmployerM/F/D

## Ms. GwenKeyesFleming June27,2012 Page 2

If

## you have any comments or questions regarding this request, please contactLauraLund at (502)**564~3999** 

## orLaura.Lund@ky.gov.

Cc: LynoraeBenjamin ScottDavis 

## JSWI

### Steven 

### L. Beshear Governor



## Ms. GwenKeyesFleming RegionalAdministrator U.S. EPA, Region4 

## Energy and EnvironmentCabinet Departmentfor Environmental Protection Division for Air Quality 

## 200 Fair Oaks Lane, 

## 1st Floor 

## Frankfort, Kentucky40601-1403 air.ky.gov ., 

## July3, 2012

SamNunnAtlantaFederalCenter 61 ForsythStreet, SW Atlanta, GA30303-8960

DearMs. Fleming, Leonard K. Peters Secretary



## The Kentucky Division for Air Quality (KyDAQ) requests that the U.S. EPA grant conditional approval ofelements 110(a)(2)(C) and 110(a)(2)(J)ofthe CleanAirAct (CAA) relatedto prevention of significant deterioration (PSD) requirements for the 1997 and 2006 fine particulate matter (PM2.5) NationalAmbientAir Quality Standards (NAAQS). KyDAQ is in the process ofrevisingthe Kentucky PSD regulations to meet current requirements for the 

## PM 2

## .s standards. Specifically, the following administrativeregulations intotheKentucky StateImplementationPlan (SIP)are beingamended: 

## 401 KAR51:001. Definitionsfor401 KARChapter51o 401 KAR51:017. Preventionofsignificantdeteriorationofairquality. 401 KAR51:052. Review ofnew sourcesinorimpactinguponnonattainmentareas. KyDAQ submitted the aforementioned proposed regulation amendments to EPA for review and comment on June 19, 2012, and requested parallel processing ofthese amendments on June 27, 2012. Untiltheseproposed amendments become effective, Kentucky's SIP willnotprovideforthemost current requirements related to the PM2.5 

## standards. However, Kentucky will have a complete SIP meeting all permittingprogram requirements inaccordancewiththeCAA oncethese amendments are effective. Kentuckywill strive to provide a SIP revisionto address the currentPSDrequirementsforthePM2.s standards and in accordance with section 110(k)(4) ofthe CAA, and in accordance with the following scheduleforthe SIPrevision: End ofpubliccommentperiod,inwhichapublic hearingis July31,2012 conducted Submit StatementofConsiderationofcomments received August 15,**20~2** 

## duringvublic commentperiod Kentuck:yUnbridledSpirit.com An 

### Equal OpportunityEmployerMIF/D

## Ms. GwenKeyesFleming July3, 2012 Page2

FirstlegiSlative subcommittee (Administrative Regulation ReviewSubcommittee)reviewsregulation Secondlegislativesubcommittee (Natural Resources and Environment Subcommittee)reviewsregulation

Announce effective date ofregulation

SubmitamendmentstoEPA as an amendmentto

## Kentucky's SIP September2012 October2012 Ifreviewedby2nd subcommittee, the effective date is atadjournment ofmeeting, else30days afterthe regulationreferralby 1st subcommittee EarlyNovember2012



## Ifyouhave any comments orquestionsregarding this request, please contactMs. AndreaSmith at (502) 564-3999 orAndrea.Smith@ky.gov.

Cc: LynoraeBenjamin ScottDavis 

## JSL/11

## 1 ENERGYAND ENVIRONMENT CABINET 2 Departmentfor Environmental Protection 

## 3 Division forAirQuality 4 (Amendment) 5 401 KAR 51:001. Definitionsfor401 KAR Chapter51. 

# JUN 

# 1 42012**~l-~** REGULATIONS COMPILER



## 6 RELATES TO: KRS 48.010(15)(a), 224.01-010, 224.20-100, 224.20-110, 224.20- 7 120, 40 C.F.R. Chapter I, 50 Appendices A-R, 51.100, 51.121, 51.165, 51.166, 51 8 Appendix S, 52.920, 53, 60, 60 AppendicesA, B, 61, 61 Appendix B, 63 Appendices A9 D, 70.2, 75, 82, 96, 42 U.S.C. 7401-7671q 10 STATUTORYAUTHORITY: KRS 224.10-100(5) 11 NECESSITY, FUNCTION, AND CONFORMITY: KRS 224.10-100(5) requires the 12 cabinet to promulgate administrative regulations for the prevention, abatement, and 

## 13 control ofair pollution. This administrative regulation defines the terms used in 401 KAR 14 Chapter 51. The definitions contained in this administrative regulation are not [neither] 15 more stringent [norotherwise different) than the corresponding federal definitions. 16 Section 1. Definitions. The definitions with citations to the Code of Federal 17 Regulations shall be governed by 40 C.F.R. Parts 50 through 96[, effestive July 1, 

## 18 

# =l· 19 (1) "Acid 

# rain emissions limitation" means a limitation on emissions of S02 or NOx 20 imposed bythe Acid Rain Program under42 U.S.C. 7651 to 7651o. 21 (2) "Actual emissions": 

# 1

## 1 (a) Means the actual rate of emissions of a regulated NSR pollutant from an 2 emissions unitas determined according to the following: 3 1. Actual emissions as ofa particulardate equals the average rate, in tons peryear, 4 at which the unit actually emitted the pollutant during a consecutive twenty-four (24) 5 month period, that precedes that date and is representative of normal source operation, 

## 6 unless adifferenttime period is more representative of normal source operation; and 7 2. The unit's actual operating hours, production rates, and types of materials 

## 8 processed, stored, or combusted during the selected time periods are used to calculate 9 actual emissions; 

## 10 (b) Means source-specific allowable emissions for the unit are equivalent to actual 11 emissions ofthe unit if

## the cabinet has made an equivalency determination pursuant to 12 40 C.F.R. 51.166; 13 

## (c) Means, for an emissions unit that has not begun normal operations on a 

## 14 particulardate, the potential to emit ofthe uniton that date; and 15 (d) Does not mean: 16 1. Calculating 

## ifa significantemissions increase has occurred; or 

## 17 2. Establishing a PAL under401 KAR 51:017, Section 20. 18 (3) "Actuals PAL" or "PAL" means a plant-wide applicability limit established for a 19 major stationary source based on the baseline actual emissions of all emissions units at 

## 20 the source that emit or have the potential to emitthe PAL pollutant. 21 (4) "Adverse impact on visibility" is defined by40 C.F.R. 51.301. 22 (5) "Affected facility" means an apparatus, building, operation, road, or other entity 23 or series of entities that emits or may emit an air contaminant into the outdoor



# 2

## 1 atmosphere. 2 (6) "Aircontaminant" is defined by KRS 224.01-010(1). 3 (7) "Airpollutant" means aircontaminant. 4 (8) "Airpollution" is defined by KRS 224.01-010(3). 5 (9) "Air pollution control equipment" means a mechanism, device, or contrivance 

## 6 used to control or prevent air pollution, that is not, aside from air pollution control laws 7 and administrative regulations, vital to production ofthe normal product ofthe source or 8 

## to its normal operation. 

## 9 (10) "Allocate" or "allocation" means the number of NOx allowances to be credited 10 to a NOx budget unit. 11 (11) "Allocation period" means each three (3) year period beginning May 1, 2004. 12 (12) "Allowable emissions" means: 13 (a) The emissions rate of a stationary source calculated using the maximum rated 14 capacity of the source, unless the source is subject to federally enforceable limits that 15 restrict the operating rate, hours of operation, or both, and the most stringent of the 16 following: 17 1. The applicable standards codified in 40 C.F.R. Parts 60 and 61; 18 2. The applicable SIP emissions limitations, including thosewith afuture compliance 19 date; or 20 3. The emissions rates specified as a federally enforceable permit condition, 

## 21 including thosewith afuture compliance date; or 22 (b) For an actuals PAL, the emissions rate of a stationary source calculated 23 considering any emission limitations that are enforceable as a practical matter on the



# 3

## 1 emissions unit's potential to emit, and the most stringent provision of paragraph (a)1. 2 through 3. ofthis subsection. 3 (13) "Alteration" means: 4 (a) 

## The installation or replacement ofair pollution control equipment at asource; or 5 (b) A physical change in or change in the method of operation of an affected facility 6 that increases the potential to emit a pollutant, to which a standard applies, emitted by 7 the facility orthat results in the emission of an air pollutant, to which astandard applies, 8 not previously emitted. 9 (14) "Alternative method" is defined by 40 C.F.R. 60.2. For purposes of this 10 definition, "administrator" means both the U.S. EPA and the cabinet. 11 (15) "Ambient air" means that portion of the atmosphere, external to buildings, to 12 which the general public has access. 13 (16) "Ambient air quality standard" means a numerical expression of a specified 14 

# concentration level for a particular air contaminant and the time averaging interval over 15 which that concentration level**i~** 

## measured and is 8 goal to be achieved in a stated time 

## 16 through the application ofappropriate preventive orcontrol measures. 17 (17) "ANSI" meansAmerican National Standards Institute. 18 (18) "AOAC" means Association ofOfficial Analytical Chemists. 19 (19) "ASTM" means American SocietyforTesting and Materials. 20 (20) "Baseline actual emissions" means the rate of emissions, in tons per year, of a 

## 21 regulated NSR pollutant, that: 22 (a) For an existing electric utility steam generating unit (EUSGU), the unit actually 23 emitted during any consecutive twenty-four (24) month period selected by the owner or

4

## 1 operator within the five (5) year period immediately preceding the date the owner or 2 operator begins actual construction of the project, unless a different twenty-four (24) 3 month time period is more representative of normal source operation. 

## 4 1. The rate is an averagethat: 5 a. Includes fugitive emissions, to the extent quantifiable, and emissions associated 6 with 

## startups, shutdowns, and malfunctions; 

## 7 b. Is adjusted downward to exclude any noncompliant emissions that occurred while 8 the source was operating above an emission limitation that was legally enforceable 

## 9 during the consecutive twenty-four (24) month period; and 10 c. Is based on any consecutive twenty-four (24) month period for which there is 11 adequate information for determining annual emissions, in tons per year, and for 

## 12 adjusting this amount as necessary according to clause b. ofthis subparagraph; and 13 2. Ifa project involves multiple emissions units, only one (1) consecutive twenty-four 14 (24) month period is used to determine the baseline actual emissions for the emissions 

## 15 units being changed with a different consecutive twenty-four (24) month period allowed 16 for each regulated NSR pollutant; 17 (b) For an existing emissions unit that is not an EUSGU, the unit actually emitted 18 during any consecutive twenty-four (24) month period selected bythe owneroroperator 19 within the ten (10) year period beginning on or after November 15, 1990, and 20 immediately preceding the earlier of the date the owner or operator begins actual 21 construction ofthe project or the date a complete permit application is received by the 22 cabinetfor a permit required under401 KAR 51:017 or 51:052. 23 1. The rate is an average that:



# 5

## 1 a. Includes fugitive emissions, to the extent quantifiable, and emissions associated 2 with startups, shutdowns, and malfunctions; 

## 3 b. Is adjusted downward: 4 

## (i) To exclude any noncompliant emissions that occurred while the source was 5 operating above an emission limitation that was legally enforceable during the 

## 6 consecutivetwenty-four (24) month period; 7 (ii) To exclude any emissions that would have exceeded an emission limitation with 8 which the major stationary source is required currently to comply, ifthe source had been 

## 9 required to comply with the limitations during the consecutive twenty-four (24) month 10 period; and 11 

# (iii) For an emission limitation that is part of a maximum achievable control 

## 12 technology standard proposed or promulgated under 40 C.F.R. Part 63, only if the 13 Commonwealth of Kentucky has taken credit for the emissions reductions in an 14 attainment demonstration or maintenance plan consistent with 40 C.F.R. 

## 15 51.165(a)(3)(ii)(G); and 16 c. Is based on any consecutive twenty-four (24) month period for which there is 17 adequate information for determining annual emissions, in tons per year, and for 18 adjusting this amount as necessary according to clause b. ofthis subparagraph. 

## 19 2. Ifa project involves multiple emissions units, only one (1) consecutivetwenty-four 20 (24) month period is used for each regulated NSR pollutant to detenmine the baseline 21 actual emissions for the emissions units being changed with a different consecutive 

## 22 twenty-four (24) month period; 23 (c) 

## For a new emissions unit, equals zero for determining the emissions increase



# 6

## 1 thatwill result from the initial construction and operation ofthe new unit and thereafter, 2 for all other purposes, equals the unit's potential to emit; or 3 (d) Fora PALfor astationarysource, is determined as follows: 4 1. For an existing EUSGU, in accordance with the procedures contained in 

## 5 paragraph (a) ofthis subsection; 6 2. For other existing emissions units, in accordance with the procedures contained 

## 7 in paragraph (b) ofthis subsection; and 8 3. For a new emissions unit, in accordance with the procedures contained in 

## 9 paragraph (c) ofthis subsection. 10 (21) "Baseline area11 

## means an intrastate area and every part of that area 

## 11 designated as attainment or unclassifiable pursuantto 42 U.S.C. 7407(d)(1)(A)(ii) or (iii) 12 in 

## which the major source or major modification establishing the minor source baseline 13 datewould construct orwould have an airquality impact equal to orgreaterthan one (1) 14**~g/m 3**  

## annual average of the pollutant for which the minor source baseline date is 15 established for SO<, N02, 

## or PM 10 

## or0.3 ug/m3 

## annual average for PM&§. 16 (a) Area redesignations under 42 U.S.C. 7407(d)(1)(A)(ii) or (iii) do not intersect and 17 are not 

## smaller than the area of impact of a major stationary source or major 

## 18 modification that: 19 1. Establishes a minor source baseline date; or 

## 20 2. Is subject to 401 KAR 51:017 and would be constructed in the Commonwealth of 21 Kentucky. 22 (b) A baseline area established originally for total suspended particulate (TSP) 23 increments remains in effect to determine the amount of available PM1o increments,



# 7

## 1 unlessthe cabinet rescinds the corresponding minorsource baseline date. 2 (22) "Baseline concentration" means the ambient concentration level that exists in 

## 3 the baseline area on the date the applicable minor source baseline date is established. 4 (23) "Baseline date" means major source baseline date or minor source baseline 

## 5 date and is established for each pollutant for which increments or other equivalent 6 

# measures have been established 

## if the area in which the proposed source or 7 modification would construct is designated as attainment or unclassifiable pursuant to 

## 8 42 U.S.C. 7407(d)(1)(A)(ii) or (iii) for the pollutant on the date of the source's complete 9 application; and 10 (a) For a major stationary source, the pollutant would be emitted in significant 11 amounts; or 12 (b) For a major modification, there would be a significant net emissions increase of 

## 13 the pollutant. 14 (24) "Begin actual construction" means: 15 (a) 

## Initiation of physical on-site construction activities on an emissions unit that are 

## 16 of a permanent nature and include installation of building supports and foundations, 17 laying underground pipe work, and construction of permanent storage structures; and 

## 18 (b) For a change in method of operations, those on-site activities, other than the 19 preparatory activities, that markthe initiation ofthe change. 

## 20 (25) "Best available control technology" or "BACT" means an emissions limitation, 21 including a visible emission standard, based on the maximum degree of reduction for 

## 22 each regulated NSR pollutant that will be emitted from a proposed major stationary 23 source or major modification and:



# 8

## 1 (a) Is determined bythe cabinet pursuantto 401 KAR 51:017, Section 8, aftertaking 2 into account energy, environmental, and economic impacts and other costs, to be 

## 3 achievable 

# by the source or modification through application of production processes or 4 available methods, systems, and techniques, including fuel cleaning or treatment or 5 innovativefuel combustion techniques for control ofthat pollutant; 6 (b) Does not result in emissions of a pollutant that would exceed the emissions 

## 7 allowed by an applicable standard codified in 40 C.F.R. Parts 60 and 61; and 8 (c) Is satisfied by a design, equipment, work practice, or operational standard or 9 combination ofstandards approved bythe cabinet, if: 10 1. The cabinet determines pursuantto 40 C.F.R. 51.166(b)(12) that technological or 11 economic limitations on the application of measurement methodology to a particular 12 emissions unitwould makethe imposition·ofan emissions standard infeasible; 13 2. The standard establishes the emissions reduction achievable by implementation 14 ofthe design, equipment, work practice, oroperation; and 15 3. The standard provides for compliance by means that achieve equivalent results. 16 (26) "BOD" means biochemical oxidantdemand. 17 (27) "Boiler" means an enclosed fossil or other fuel-fired combustion device used to 

## 18 produce heatand to transfer heatto recirculating water, steam, orother medium. 19 (28) "BTU" means British thermal unit. 20 (29) "Building, structure, facility, or installation" means all of the pollutant emitting 21 activities that: 22 (a) Belong to the same industrial grouping or have the same two (2) digit major 23 group code as described in the Standard Industrial Classification Manual;



# 9

## 1 (b) Are located on one (1) or more contiguous or adjacent properties; 2 

# (c) Are underthe control ofthe same person or persons under common control; and 

## 3 (d) Do not include the activities ofavessel. 4 (30) "C" means degree Celsius (centigrade). 5 (31) "Cabinet" is defined by KRS 224.01-010(9). 6 (32) "Cal" means calorie. 7 (33) "Capital expenditure" is defined by40 C.F.R. 60.2. 8 (34) "elm" means cubicfeet per minute. 9 (35) "CH4' means methane. 10 (36) "Clean coal technology" is defined by40 C.F.R 51.166(b)(33). 11 (37) "Clean coal technology demonstration projecf' is defined by 40 C.F.R. 12 51.166(b)(34). 13 (38) "Clinker" means the product of a portland cement kiln from which finished 14 cement is manufactured by milling and grinding. 15 (39) "CO" means carbon monoxide. 16 (40) "CO,. means carbon dioxide. 17 (41) "COD" means chemical oxidantdemand. 18 (42)"Combined cycle system" means a system comprised of one (1) or more 19 combustion turbines, heat recovery steam generators, or steam turbines configured to 

## 20 improve overall efficiency ofelectricity generation or steam production. 

## 21 (43) "Combustion turbine" means an enclosed fossil or otherfuel-fired device that is 22 comprised of a compressor, a combustor, and a turbine, and in which the flue gas 

## 23 resulting from the combustion of fuel in the combustor passes through the turbine,

10

## 1 rotating the turbine. 2 (44) "Commence11 

## means that an owneror operator: 

## 3 (a) 

## Has undertaken a continuous program of construction, modification, at 4 reconstruction of an affected facility, or that an owner or operator has entered into a 5 contractual obligation to undertake and complete, within a reasonable time, a 6 

## continuous program of construction, modification, or reconstruction of an affected 7 facility; or 8 (b) For construction of a major stationary source or major modification in the PSD or 9 NSR program, has all necessary preconstruction approvals orpermits, and: 

## 10 1. Has begun, or caused to begin, a continuous program of actual on-site 11 

## construction ofthe source, to be completed within a reasonabletime; or 

## 12 2. Has entered into binding agreements or contractual obligations, that cannot be 

## 13 cancelled or modified without substantial loss to the owner or operator, to undertake a 14 program ofactual construction ofthe sourceto be completed within a reasonabletime. 15 (45) "Commence commercial operation" means to have begun to produce steam, 

## 16 gas, or other heated medium used to generate electricity for sale or use. Except as 17 provided in 401 KAR 51:195 or40 C.F.R. 96.5: 18 (a) For a unit that is a NOx budget unit under 40 C.F.R. 96.4, on the date the unit 

## 19 commences commercial operation, the date remains the unit's date of commencement 20 of commercial operation even if the unit is subsequently modified, reconstructed, or 21 repowered; or 22 (b) For a unit that is not a NOx budget unit under 40 C.F.R. 96.4, on the date the 

## 23 unit commences commercial operation, the date the unit becomes a NOx budget unit

11

## 1 under40 C.F.R. 96.4 is the unit's date ofcommencement ofcommercial operation. 2 (46) "Commence operation" means, for a NOx budget unit, to have begun a 3 mechanical, chemical, or electronic process, including start-up of a unit's combustion 

## 4 chamber. Except as provided in 401 KAR 51:195 or40 C.F.R. 96.5: 5 (a) For a unit that is a NOx budget unit under 40 C.F.R. 96.4 on the date of 6 commencement of operation, 

## the date remains the unit's date of commencement of 

# 7 operation even 

## ifthe unit is subsequently modified, reconstructed, or repowered; or 

## 8 (b) For a unit that is not a NOx budget unit under 40 C.F.R. 96.4 on the date of 9 commencement of operation, the date the unit becomes a NOx budget unit under 40 10 C.F.R. 96.4 is the unit's date ofcommencement ofoperation. 11 (47) "Complete" is defined by40 C.F.R. 51.166(b)(22). 12 (48) "Compliance schedule" means a time schedule of remedial measures including 

# 13 an 

# enforceable sequence ofactions oroperations leading to compliance with alimitation 14 orstandard. 15 (49) "Compliance supplement pool" means the quantity of NOx allowances provided 16 to Kentucky bythe U.S. EPAto be: 17 (a) Allocated to NOx budget units that achieve early reduction; or 18 (b) Used to assist NOx budget sources that are unable to meet the compliance 19 deadline as provided in 401 KAR 51:180, Section 5. 20 (50) "Construction" means: 21 

# (a) Fabrication, erection, installation, or modification ofan air contaminant source; or 

## 22 (b) For the NSR program, any physical change or change in the method of 23 

# operation, including fabrication, erection, installation, demolition, or modification of an

12

## 1 emissions unit that would result in a change in the emissions at an air contaminant 2 source. 

## 3 (51) "Continuous emissions monitoring system" or "CEMS" means all of the 4 equipment necessary to meet the data acquisition and availability requirements of 401 

## 5 KAR 51:017 or 51:052 to sample, condition (if applicable), analyze, and provide a 6 record ofemissions on a continuous basis. 7 (52) "Continuous emission monitoring system for NOx" or "GEMS for NOx" means 8 the equipment required to sample, analyze, measure, and provide, by readings taken at 

## 9 least once every fifteen (15) minutes of the measured parameters, a permanent record 10 of NOx emissions, expressed in tons per hour for NOx. The following systems are 11 necessary component parts, as required by 40 C.F.R. Part 75, included in a continuous 12 emissions monitoring system: 

## 13 (a) Flow monitor; 14 (b) NOx pollutant concentration monitor; 15 (c) Diluent gas monitor 

# (02 

## or CO,); 16 (d) Continuous moisture monitor; and 17 (e) Automated data acquisition and handling system. 18 (53) "Continuous emissions rate monitoring system" or "GERMS" is defined by 40 19 C.F.R. 51.166(b)(46). 20 (54) "Continuous monitoring system" means the total equipment, required underthe 21 applicable administrative regulations in 401 KAR Chapters 50 to 65, used to sample, to 22 condition (if applicable), to analyze, and to provide a permanent record of emissions or 23 process parameters.



## 13

## 1 (55) "Continuous parameter monitoring system" or "CPMS" is defined by: 

## 2 (a) 40 C.F.R. 51.166(b)(45) for401 KAR 51:017; or 3 (b) 40 C.F.R. 51.165(a)(1)(xxxiii) for401 KAR 51:052. 4 (56) "Control period" means the period beginning May 1 of a year and ending on 5 September30 ofthe same year, inclusive. 6 (57) "Director" means Director of the Division for Air Quality of the Energy and 7 Environment Cabinet. 

## 8 (58) "District" is defined by KRS 224.01-010(11). 9 (59) "dscf' means dry cubicfeet at standard conditions. 10 (60) "dscm" means drycubic meterat standard conditions. 11 (61) "Electric generating unit" means, for 401 KAR 51:160 to 51:195, a fossil fuel12 fired boiler, combustion turbine, or a combined cycle system used to generate twenty

## 13 five (25) megawatts or more ofelectricity, some ofwhich is offered for sale. 14 (62) "Electric utility steam generating unit" or "EUSGU" is defined by 40 C.F.R. 15 51.166(b)(30). 16 (63) "Emission standard" means that numerical limit that fixes the amount of an air 17 contaminant or air contaminants that may be vented into the atmosphere from an 

## 18 affected facility orfrom air pollution control equipment installed in an affected facility. 19 (64) "Emissions unit" means any part of a stationary source, including an EUSGU, 20 that emits or has the potential to emit a regulated NSR pollutant. For 401 KAR 51:017 21 and 51:052, there are two (2) types ofemissions units: 22 (a) A new emissions unit, which is any emissions unit that is or will be newly 

## 23 constructed and that has existed for less than two (2) years from the date the unit first

14

## 1 operated; and 2 (b) An existing emissions unit, which is any emissions unit that does not meet the 3 requirements in paragraph (a) ofthis subsection or is a replacement unit 4 (65) "Enforceatile as a practical matter" means thatthe emission or other standards 5 contained in a permit orcompliance schedule include: 6 (a) Technically accurate emission standards and the portions ofthe source that are 7 subjectto the standards; 8 (b) A time period adequate to demonstrate compliance with the standards; and 9 (c) The method the source shall use to achieve and demonstrate compliance with 10 the limitations and standards, including appropriate monitoring, recordkeeping, and 11 reporting. 12 (66) "Equivalent method" means a method of sampling and analyzing for an air 13 pollutant that has been demonstrated to the cabinet and the U.S. EPA pursuant to 40 14 C.F.R. 53.3 to have aconsistent and quantitatively known relationship to the reference 15 method, underspecified conditions. 16 (67) "Excess NOx emissions" means any tonnage of nitrogen oxides emitted by a 17 NOx budget unit during a control period that exceeds the NOx budget emissions 18 limitation forthe unit 19 (68) "Exempt compound" or "exempt solvent" means an organic compound listed in 20 the definition of volatile organic compound as not participating in atmospheric 21 photochemical reactions. 22 (69) 

## "Existing source" means asource that is nota newsource. 

# 23 (70) "Extreme nonattainment county" or "extreme nonattainment area" means a

15

## 1 county or portion of a county designated extreme nonattainment for the national 

## 2 ambient airqualitystandard for ozone. 3 (71) "oF" means degree Fahrenheit. 4 (72) "Federal land manager" is defined by40 C.F.R. 51.166(b)(24). 5 (73) "Federally enforceable" means all limitations and conditions that are 6 enforceable bythe U.S. EPA, including: 7 (a) Requirements developed under40 C.F.R. Parts 60 and 61; 8 (b) Requirements in the Kentucky State Implementation Plan (SIP) approved by the 9 U.S. EPA; and 10 (c) Any permit requirements established under 40 C.F.R. 52.21 or under the 11 Kentucky SIP approved pursuant to 40 C.F.R. Part 51, Subpart I, including operating 12 permits issued under a U.S. EPA-approved program incorporated into the SIP, that 

## 13 expressly requires adherenceto a permit issued underthe program. 14 (74) "Federally enforceable permit" means a penmit issued under 401 KAR 52:020 15 or52:030, as appropriate. 16 (75) "Fixed capital cost" means the capital needed to provide all the depreciable 

## 17 components. 

## 18 (76) "Fossil fuel" means natural gas; petroleum; coal; or a form of solid, liquid, or 19 gaseous

## fuel derived from natural gas, petroleum, or coal. 

## 20 (77) "Fossil fuel fired" means, for a unit: 21 (a) The combustion of fossil fuel, alone or in combination with another fuel, if the 22 fossil fuel combusted comprises more than fifty (50) percent ofthe annual heat input on 23 a BTU basis during a year starting in 1995 or, if a unit had no heat input starting in

16

## 1 ·1995, during the lastyearofoperation ofthe unit priorto 1995; or 2 (b) The combustion of fossil fuel, alone or in combination with another fuel, if the 3 fossil fuel is projected tocomprise more than fifty (50) percent of the annual heat input 4 on a BTU basis during a year, and the unit is to be fossil fuel fired as ofthe date during 5 the yearthe unit begins combusting fossil fueL 6 (78) 

# "ft" means feet orfoot 7 (79) "Fuel" means natural gas; petroleum; coal; wood; or a form ofsolid, liquid, or 8 

# gaseous fuel derived from these materials forthe purpose of creating useful heat. 9 (80) "Fugitive emissions" means those emissions that could not reasonably pass 

## 10 through astack, chimney, vent, orotherfunctionally equivalent opening. 11 (81) "g" means gram. 12 (82) "gal" means gallon. 13 (83) "General fund" is defined by KRS 48.010(15)(a). 14 (84) "Generator" means adevice that produces electricity. 15 (85) "gr" means grain. 16 (86) "HCI" means hydrochloric acid. 17 (87) "Heat input" means the product, in MMBTU per unit of time, of the gross 18 calorific value ofthe fuel, in BTU per lb, and the fuel feed rate into a combustion device, 19 in mass offuel per unitoftime, that: 20 (a) Does not include the heat derived from preheated combustion air, recirculated 21 flue gases, or exhaust from other sources; and 

## 22 (b) Is measured, recorded, and reported to the cabinet 23 (88) "HF" means hydrogen fluoride.

17

## 1 (89) "Hg" means mercury. 2 (90) "High terrain" is defined by40 C.F.R. 51.166(b)(25). 3 (91) ''hr" means hour. 4 (92) "Hydrocarbon" means an organic compound consisting predominantly of 5 carbon and hydrogen. 6 (93) "Hydrocarbon combustion fiare" means: 7 (a) A fiare used to comply with an applicable New Source Perfomnance Standard 8 (NSPS) or Maximum Achievable Control Technology (MACT) standard, including uses 9 offlares during startup, shutdown, 

# or malfunction permitted underthe standard; or 10 (b) A flare that serves to control emissions of waste streams comprised 

## 11 predominately of hydrocarbons and containing no more than 230**~g/dscm** 

## hydrogen 12 sulfide. 13 (94) "H2

## 0" meanswater. 14 (95) "H,S" means hydrogen sulfide. 15 (96) "H2

## S04" 

## means sulfuric acid. 16 (97) "in" means 

## inch. 17 (98) "Incineration" means the process of igniting and burning solid, semisolid, liquid, 18 or gaseous 

## combustible wastes. 

## 19 (99) "Industrial boiler orturbine" means afossil fuel-fired boiler, combustion turbine, 20 or a combined cycle system having a maximum design heat input of 250 MMBTU per 21 houror more that is not an electric generating unit. 22 (100) "Innovative control technology" is defined by40 C.F.R. 51.166(b)(19). 23 (101) "Intermittent emissions" means emissions of particulate matter into the open

18

## 1 airfrom aprocess that operates for less than any six (6) consecutive minutes. 2 (102) 

# "J" meansjoule. 3 (103) "Kg" means kilogram. 4 (104)

# npr means liter. 

## 5 (105) "lb" means pound. 6 (106) "Legally enforceable" means the cabinet or the U.S. EPA has the authority to 7 

# enforce acertain restriction. 8 (107) "Long dry kiln" means a kiln that employs no preheating ofthefeed and has a 9 dry inletfeed. 10 (108) "Long wet kiln" means a kiln that employs no preheating of the feed and the 11 inletfeed to the kiln is aslurry. 12 (109) "Lowterrain" means an area otherthan high terrain. 13 (110) "Lowestachievable emissions rate" or "LAER" means, for any source: 14 (a)1. The most stringent emissions limitation that is contained in the Kentucky SIP 15 for the class or category of stationary source, unless the owner or operator of the 16 proposed stationary source demonstratesthatthe limitation is notachievable; or 17 2. The most stringent emissions limitation achieved in practice by the class or 18 category ofstationarysource; 19 (b) For a major modification, the lowest achievable emissions rate for the new or 20 modified emissions units at the stationary source; and 21 (c) An emissions limitation that does not exceed the allowable emissions of an 

## 22 applicable standard established pursuantto 40 C.F.R. Parts 60, 61, or63. 23 (111) "m" means meter.

19

## 1 (112) "m3" 

## means cubic meter. 2 (113) "Majoremissions unit" means: 3 (a) Any emissions unit that emits or has the potential to emit 100 tons per year or 4 more ofa PAL pollutant in an attainment area; or 5 (b) Any emissions unit that emits or has the potential to emit a PAL pollutant in an 6 amountthat is equal to or greaterthan the major source threshold for the PAL pollutant 7 as defined bythe Clean AirAct, 42 U.S.C. 7401- 7671q for nonattainment areas. 8 (114) "Major modification" means a physical change in or achange in the method of 9 operation of a major stationary source that results in a significant emissions increase 10 and asignificant netemissions increase of a regulated NSR pollutant. 11 (a) 

## A significant emissions increase from any emissions units or net emissions 

## 12 increase at a major stationary source that is significant for volatile organic compounds 13 

# or nitrogen oxides is considered significantfor ozone. 

## 14 (b) A physical change orchange in themethod ofoperation does not include: 15 1. Routine maintenance, repair, and replacement; 

## 16 2. Use of alternative fuel or raw material by reason of an order or a natural gas 17 curtailment plan in effect underafederal act; 18 3. Use of an alternative fuel at a steam generating unit to the extent that the fuel is 19 generated from municipal solid waste; 

## 20 4. Use ofan alternative fuel or raw material by astationary source that: 21 a. The source was capable ofaccommodating before January 6, 1975, for401 KAR 22 51:017, or December 21, 1976, for 401 KAR 51:052; unless the change would be 23 prohibited by afederally enforceable permit condition thatwas established after January

20

## 1 6, 1975,for401 KAR51:017, orDecember21, 1976, for401 KAR51:052, pursuant to 2 40 C.F.R. 51.165 or 51.166; or 3 

# b. The source is approved to use by a permit issued pursuantto 401 KAR 51:017 or 4 51 :052; 5 5. An increase in the hours of operation or in the production rate, unless the change 

## 6 is prohibited by any federally enforceable permit condition established after January 6, 7 1975, for 401 KAR 51:017 or December 21, 1976, for 401 KAR 51:052 pursuant to 40 8 C.F.R. 52.21; after June 6, 1979, pursuant to 401 KAR 51:015; after September 22, 9 1982, pursuantto 401 KAR 51 :017; or pursuantto 401 KAR 52:020 and 51 :016E; 10 

# 6. A change in ownership at astationary source; 11 7. The installation, operation, cessation, or removal of a temporary clean- coal 

## 12 technology demonstration project, if the project complies with the Kentucky SIP and 13 other requirements- necessary to attain and maintain the national ambient air quality 

## 14 standards during the project and after it isterminated; 15 

# 8. The installation or operation of a permanent clean coal technology demonstration 16 

# project that constitutes repowering, if 

## the project does not result in an increase in the 17 potential to emit ofa regulated pollutant emitted by the unit, on a pollutant-by-pollutant 18 basis; or 

## 19 9. The reactivation ofavery clean coal-fired electric utilitysteam generating unit 20 (c) Instead ofthis definition, the definition for "PAL major modification", in subsection 21 (175) of this section, is used for a particular regulated NSR pollutant, if the major 22 stationary source is complying with the requirements of 401 KAR 51:017, Section 20, 23 and 401 KAR 51:052, Section 11, for a PALforthat pollutant

21

## 1 (115)"Major NSR permit" means a permit issued under Kentucky's PSD or NSR 2 program. 3 (116) "Major source" means a source with a potential emission rate equal to or 

# 4 greater than 100 tons per year of any one (1) of the following pollutants: particulate 

# 5 matter, sulfur oxides, nitrogen oxides, volatile organic compounds, carbon monoxide, or 6 ODS. 7 (117) "Major source baseline date" means: 8 (a) For PM10 

## [particulate matter] and sulfur dioxide, January6, 1975; 

# [aA€1] 9 (b) For nitrogen dioxide, February 8, 1988· and 10 (c) For PM2.5, 

## October20, 2010. 11 (118) "Majorstationarysource" means: 12 (a)1. A stationary source of air pollutants that emits, or has the potential to emit, 100 13 tons peryearor more ofa regulated NSR pollutant, exceptthat: 14 

## a. For**o~one** 

## nonattainment areas: 100 tons per year of more of volatile organic 15 compounds or nitrogen oxides in a marginal or moderate ozone nonattainment area; 

## 16 fifty (50) tons per year or more of volatile organic compounds or nitrogen oxides in a 17 serious ozone nonattainment area; twenty-five (25) tons per year or more of volatile 18 

# organic compounds or nitrogen oxides in a severe ozone nonattainment area; or ten 

## 19 (10) tons per year or more of volatile organic compounds or nitrogen oxides in an 

# 20 extreme ozone nonattainment area; 21 b. Fifty (50) tons peryear or more of carbon monoxide in aserious carbon monoxide 22 nonattainment area where stationary sources contribute significantly to carbon 23 monoxide levels; and



## 22

## 1 c. Seventy (70) tons peryear or more of parjiculate matter (PM10) in a serious PM10 

# 2 nonattainment area; or 

## 3 2.a. For the PSD program, any of the following stationary sources of air pollutants· 4 that emits, or has the potential to emit, 100 tons per year or more of a regulated NSR 5 pollutant: fossil fuel-fired steam electric plants of more than 250 million BTU per hour 6 heat input, coal cleaning plants with thermal dryers, kraft pulp mills, PorJiand cement 7 plants, primary zinc smelters, iron and steel mill plants, primary aluminum ore reduction 8 plants, primary copper smelters, municipal incinerators capable of charging more than 

## 9 250 tons of refuse per day, hydrofluoric, sulfuric, and nitric acid plants, petroleum 10 

# refineries, lime plants, phosphate rock processing plants, coke oven batteries, sulfur 

## 11 recovery plants, carbon black plants (furnace process), primary lead smelters, fuel 12 

# conversion plants, sintering plants, secondary metal production plants, chemical 

## 13 process plants, except ethanol production facilities producing ethanol by natural 14 fermentation under the North American Industry Classification System (NAICS) codes 15 325193 or 312140, fossil fuel boilers, or combination offossil fuel boilers, totaling more 16 than 250 million BTU per hour heat input, petroleum storage and transfer units with a 17 total storage capacity exceeding 300,000 barrels, taconite ore processing plants, glass 18 fiber processing plants, and charcoal production plants; and 

## 19 b. Regardless of the stationary source size specified in clause a. [subclause (i)] 

## of 20 this subparagraph [clause], a stationary source that emits, or has the potential to emit, 21 250tons peryearor more of

# a regulated NSR pollutant; or 22 3. Any physical change thatwill occurat a stationary source not otherwise qualifying 23 underthis subsection as a major stationary source, 

## ifthe change 

## will constitute a major



## 23

## 1 stationary source by itself; 2 (b) A source that is major for volatile organic compounds or nitrogen oxides is 3 considered majorfor ozone; and 

## 4 (c) Fugitive emissions are included only if the source belongs to one (1) of the 5 following categories ofstationarysources: 6 1. Coal cleaning plants with thermal dryers; 7 2. Kraft pulp mills; 8 3. Portland cement plants; 9 4. Primary zinc smelters; 

## 1

0 5. Iron and steel mills; 11 6. Primary aluminum ore reduction plants; 

## 12 7. Primary coppersmelters; 13 8. Municipal incinerators capable ofcharging more than 250 tons of refuse perday; 14 9. Hydrofluoric, sulfuric, or nitric acid plants; 15 10. Petroleum refineries; 

## 16 11. Lime plants; 17 12. Phosphate rock processing plants; 18 13. Coke oven batteries; 19 14. Sulfur recovery plants; 20 15. Carbon black plants (furnace process); 21 16. Primary lead smelters; 22 17. Fuel conversion plants; 23 18. Sintering plants;



# 24

## 1 19. Secondary metal production plants; 2 20. Chemical process plants, except ethanol production facilities producing ethanol 3 by natural fermentation under NAICS codes 325193 or312140; 4 21. Fossil-fuel boilers, or combination of fossil-fuel boilers, totaling more than 250 5 million BTUs per hour heat input; 6 22. Petroleum storage and transfer units with a total storage capacity exceeding 

## 7 300,000 barrels; 8 23. Taconite ore processing plants; 

## 9 24. Glass fiber processing plants; 10 25. Charccal production plants; 11 26. Fossil fuel-fired steam electric plants of more than 250 million BTUs per hour 12 heat input; or 13 27. Anotherstationary source categorythat, as ofAugust 7, 1980, is being regulated 14 under42 U.S.C. 7411 or7412. 15 (119) "Malfunction" means a sudden and infrequent failure of air pollution control 16 equipment, process equipment, or a process to operate in a normal or usual manner 17 that is not caused entirely or in part 

# by poor maintenance, careless operation, or other 18 upset 

## condition orequipment breakdown that is reasonably preventable. 

## 19 (120) "Mandatory Class I area" means an area identified in 40 C.F.R. Part 81, 20 Subpart D, ifthe administrator ofthe U.S. EPA, in consultation with the Secretary ofthe 21 U.S. Departmentof Interior, has determined visibilityto be an importantvalue. 22 (121) "Marginal nonattainment county" or "marginal nonattainment area" means a 23 county or portion of a county designated marginal nonattainment for the national



## 25

## 1 ambient air quality standard for ozone. 

## 2 (122) "Maximum design heat input" means the ability of a unit to combust a stated 3 maximum amount of fuel per hour on a steady state basis, as determined by the 4 physical design and physical characteristics ofthe unit. 5 (123) "Maximum potential hourly heat input" means an hourly heat input used for 6 reporting purposes ifa unit lacks certified monitors to report heat input and is: 7 (a) A value calculated according to 40 C.F.R. Part 75 using the maximum fuel flow 8 rate and the maximum gross calorific value, ifthe unit intends to use 40 C.F.R. Part 75, 9 Appendix D, to report heat input; or 10 (b) A value reported according to 40 C.F.R. Part 75 using the maximum potential 11 flow rate and either the maximum percent C02 

## concentration (in percent C02) or the 12 

## minimum percent 02, 

## if the unit intends to use a flow monitor and a diluents gas 

## 13 monitor. 14 (124) "Maximum potential NOx emission rate" meansthe emission rate of NOx (in lb 15 per MMBTU) calculated according to 40 C.F.R. Part 75, Appendix F, Section 3, using 16 the maximum potential NOx concentration as defined in 40 C.F.R. Part 75, Appendix A, 17 Section 2, and the maximum percent 0

## 2 or the minimum percent 

## C02 under all 

## 18 operating conditions ofthe unitexceptfor unit startup, shutdown, and malfunction. 19 (125) "Maximum rated hourly heat input" means a unit specific maximum hourly 20 heat input (MMBTU) that is the higherofthe manufacturer's maximum rated hourly heat 21 inputorthe highestobserved hourly heat input. 22 (126)**"~g"** 

## means microgram 23 (127) "mg" means milligram.

26

## 1 (128) "Mid-kiln firing" means the secondary firing in kilns by injecting solid fuel at an 2 intermediate point in the kiln using a specially designed feed injection mechanism for 3 the purpose ofdecreasing NOxemissions through: 4 (a) Burning part ofthe fuel at a lowertemperature; and 5 (b) Reducing-conditions at the solid waste injection point that rnay destroy some of 6 the NOxformed upstream in the kiln burning zone. 7 (129) "min" means minute. 8 (130) "Minorsource baseline date" means: 9 (a) The earliest date after the trigger date on which a major stationary source or a 10 major modification subject to permit requirements established pursuant to 40 C.F.R. 11 52.21 orthe Kentucky SIP submits acomplete application. Thetriggerdate is: 12 1. [For particulate matter and**su~ur** 

## dioxide, the trigger date is] August 7, 1977 for 13 PM,0 

## and**SO~** 

## 14

__ 2. [;and 2. For nitrogen dioxide, the triggerdate is] February 8, 1988, for NOz; and 15 3. October20, 2011, for PM<&; 16 (b) For TSP increments, that the originally established date remains in effect to 17 determine the amount of available PM10 

## increments, unless the cabinet rescinds the 

## 18 minor source baseline date pursuantto40 C.F.R. 51.166(b)(14)(iv); and 19 (c) A date established for each pollutant for which increments or other equivalent 20 measures have been established if: 21 1. The area in which the proposed source or modification will construct is 22 designated as attainment or unclassifiable pursuantto 42 U.S.C. 7407(d)(1)(A)(ii) or (iii) 23 for the pollutant on the date of its complete application pursuant to 401 KAR Chapter

27

## 1 52; and 2 2. For a major stationary source, the pollutant will be emitted in significant amounts 3 

## or a significant net emissions increase of the pollutant will occur for a major 4 modification. 

## 5 (131) "MJ" means megajoules. 6 (132) "mm" means millimeter. 7 (133) "MM" means million. 8 (134) "mo" means month. 9 (135) "Moderate nonattainment county" or "moderate nonattainment area" means a 10 

## county or- portion of a county designated moderate nonattainment for the national 11 ambient air quality standard for ozone. 

## 12 (136) "Modification" means any physical change in, or a change in the method of 13 operation of, an affected facility that: 14 (a) Increases the amount of any air pollutant (to which a standard applies) emitted 15 into the atmosphere by that facility or that results in the emission of any air pollutant (to 16 which astandard applies) into the atmosphere not previously emitted; and 17 (b) Is not solely: 18 1. Maintenance, repair, and replacement that the cabinet determines to be routine 

## 19 for asource category considering available information; 20 2. An increase in production rate of an affected facility, 

# if that increase can be 

## 21 accomplished without acapital expenditure on thatfacility; 22 3. An increase in the hours ofoperation; 23 4. Use of an alternative fuel or raw material 

## if, prior to the date a standard becomes



# 28

## 1 applicable to that source type, the affected facility was designed to accommodate that 2 alternative use. A facility is considered to be designed to accommodate an alternative 3 fuel or raw material 

# if that use could be accomplished under the facility's construction· 4 

# specification as amended priorto the change; 

## 5 5. Conversion to coal required for energy considerations, as specified in 42 U.S.C. 6 7411(a)(8); 7 6. The addition or use of a system or device.the primary function of which is the 

## 8 reduction of air pollutants, unless an emission control system is removed or replaced 

# by 9 a system 

## that the cabinet determinesto be less environmentally beneficial; or 10 7. The relocation or change in ownership of asource. 

## 11 (137) "Monitoring device" means the total equipment, required by an applicable 12 administrative regulation in 401 KAR 

## Chapters 50 to 65, used to measure and record, if 13 applicable, process parameters. 14 (138) "Monitoring system" means a monitoring system that meets the requirements 15 ofanyapplicable administrative regulation in 401. KAR 

## Chapters 50 to 65. 16 (139) "MWe" means megawatt electrical. 17 (140) "N2 , 

## means nitrogen. 18 (141) "Nameplate capacity" means the maximum electrical generating output (in 19 MWe) that a generator can sustain over a specified period of time if not restricted by 20 seasonal or other deratings as measured with United States Department of Energy 21 standards. 22 (142) "Natural conditions" means those naturally occurring phenomena that reduce 23 visibility as measured in terms ofvisual range, contrast, or coloration.



## 29

## 1 (143) 11

## Necessary preconstruction approvals or permits" means those permits or 

## 2 approvals required under the administrative regulations approved to the Kentucky SIP 3 pursuant to 40 C.F.R. 52.920, and federal air quality control laws and regulations 4 established pursuantto 42 U.S.C. 7401- 7671q. 5 (144) "Net emissions increase" means: 6 (a) For any regulated NSR pollutant emitted by a major stationary source, the 7 amount bywhich the sum ofsubparagraphs 1and 2ofthis paragraph exceeds zero: 8 1. An increase in emissions from a particular physical change or change in method 

## 9 of operation at a stationary source as calculated pursuant to 401 KAR 51:017, Section 10 1(4), or401 KAR 51:052, Section 1(2); and 11 2. Any other increases and decreases in actual emissions at the major stationary 12 source that are contemporaneous with the particular change and are otherwise 13 creditable. Baseline actual emissions for calculating increases and decreases underthis 

## 14 paragraph are determined as defined in this section. 15 (b) An increase or decrease in actual emissions is contemporaneous with the 

## 16 increase from the particularchange only if: 17 1. For construction that commences prior to January 6, 2002, the change occurs 

## 18 between the date ten (10) years before construction on the change commences and the 19 date thatthe increasefrom the change occurs; and 20 2. For construction that commences on and after January 6, 2002, the change 21 occurs between the date five (5) years before construction on the change commences 22 and the datethatthe increasefrom the change occurs. 23 (c) 

## An increase ordecrease in actual emissions is creditable only if:



# 30

## 1 1. The cabinet orthe U.S. EPA has not relied on the change in issuing a permit for 2 the source pursuantto 401 KAR 51:017, 51:052, or40 C.F.R. 52.21; and 3 2. The permit is in effect at the time the increase ·ar decrease in actual emissions 

## 4 from the particular change occurs. 5 (d) An increase or decrease in actual emissions of sulfur dioxide, particulate matter, 6 or nitrogen oxides that occurs before the applicable minor source baseline date is 7 creditable only 

## if it is required to be considered in calculating the amount of maximum 8 allowable increases remaining available. For particulate matter, only PM1o emissions 

## 9 are used to evaluatethe net emissions increase for PM10. 

## 10 (e) An increase in actual emissions is creditable onlytothe extentthatthe new level 11 ofactual emissions exceeds the old level. 12 (f) 

## A decrease in actual emissions is creditable only to the extentthat: 13 1. The old level of actual emissions or the old level of allowable emissions, 14 whichever is lower, exceeds the new level ofactual emissions; 15 2. The decrease is enforceable as a practical matter at and afterthe time that actual 16 construction on the particularchange begins; and 17 3. The decrease has approximately the same qualitative significance for public 

## 18 health and welfare as that attributed tothe increase from the particularchange. 19 (g) An increase that results from a physical change at a source occurs if the 20 emissions unit on which construction occurred becomes operational and begins to emit ' 

## 21 a particular pollutant. A replacement unit that requires shakedown becomes operational 22 only after a reasonable shakedown period, notto exceed 180 days. 23 (h) The term, actual emissions, as defined in subsection (2) ofthis section does not

31

## 1 apply in determining creditable increases and decreases. 2 (145) "New source" means a source, the construction, reconstruction, or 3 modification of which commenced on or after the classification date as defined in the 

# A applicable administrative regulation, irrespective of a change in emission rate. 

## 5 (146) "Nitrogen oxides" means all oxides of nitrogen except nitrous oxide, as 6 measured bytest methods specified in the Kentucky SIP. 7 (147) "ng" means nanograms. 8 (148) "NO" means nitric oxide. 9 (149) "NO," means nitrogen dioxide. 10 (150) "Nonattainment major new source review program" or "NSR program" is 

## 11 defined by 40 C.F.R. 51.165(a)(1)(xxx). For purposes of this definition, "administrator" 12 meansthe U.S. EPA. 13 (151) "NOx" means nitrogen oxides. 14 (152) "NOxallowance" is defined by 40 C.F.R. 96.2. 15 (153) "NOxAllowance Tracking System" or "NATS" is defined by40 C.F.R. 96.2 For 16 purposes ofthis definition, "administrator" means the U.S. EPA. 17 (154) "NOxauthorized account representative" is defined by40 C.F.R. 96.2. 18 (155) "NOx budget emissions limitation" means, for a NOx budget unit, the tonnage 19 equivalent ofthe NOxallowances availablefor compliance deduction forthe unitand for 20 a control period under 401 KAR 51:160 adjusted by deductions of sufficient NOx 21 allowances to account for: 

## 22 (a) Actual utilization under40 C.F.R. 96.42(e) forthe control period; 23 (b) Excess NOx emissionsfor apriorcontrol period under40 C.F.R. 96.54(d);

32

## 1 (c) Withdrawal from the NOx budget program under40 C.F.R. 96.86; or 2 (d) A change in regulatory status for a NOx budget opt-in source under 40 C.F.R. 3 96.87. 4 (156) "NOx budget opt-in source" means an affected facility that has elected to 5 become a NOx budget unit under the NOx Budget Trading Program and whose NOx 6 budget opt-in permit has been issued and is in effect. 7 (157) "NOx budget source" is defined by40 C.F.R. 96.2. 8 (158) "NOx BudgetTrading Program" is defined by40 C.F.R. 96.2. 9 (159) "NOx budget unit" means a unit that is subject to the NOx Budget Trading 10 Program emissions limitation under401 KAR 51:160 or40 C.F.R. 96.80. 11 (160) "NOx budget unit operator" means a person who operates, controls, or 12 supervises a NOx budget unit, a NOx budget source, or a unit for which an application 

## 13 for a NOx budget opt-in permit under 401 KAR 51:195 is submitted and not denied or 14 withdrawn and includes a holding company, utility system, or plant manager of a NOx 15 budget unit or source. 

## 16 (161) "NOx budget unit owner" means: 17 (a) A holder of a portion of the legal or equitable title in a NOx budget unit or in a 18 unit for which an application for a NOx budget opt-in permitunder 401 KAR 51:195 is 19 submitted and notdenied orwithdrawn; 20 (b) A holder of a leasehold interest in a NOx budget unit or in a unit for which an 21 application for a NOx budget opt-in permit under 401 KAR 51:195 is submitted and not 22 denied orwithdrawn; 23 (c) A purchaser of power from a NOx budget unit or from a unit for which an

33

## 1 application for a NOx budget opt-in permit under 

## 401 KAR 

## 51:195 is submitted and not 2 denied or withdrawn under a life-of-the-unit, firm power contractual arrangement and 3 unless expressly provided for in a leasehold agreement, does not include a passive 4 lessor, or a person who has an equitable interest through the lessor, whose rental 

## 5 payments are not 

## based, either directly or indirectly, upon the revenues or income from 6 the NOx budget unit or the unit for which an application for a NOx budget opt-in permit 

## 7 under

## 401 KAR 

## 51:195 is submitted and notdenied orwithdrawn; or 8 (d) Forany general account, a person who has an ownership interestwith respectto 9 the NOx allowances held in the general account and who is subject to the binding 10 agreement for the NOx authorized account representative to represent that person's· 

## 11 ownership. 

## 12 (162) "02' means oxygen.· 

## 13 (163) 

# "03' means ozone. 

## 14 (164) "Opacity" means the degree to which emissions reduce the transmission of 

## 15 lightand obscurethe view ofan object in the background. 

## 16 (165) "Operating" means, for a NOx budget unit, having documented heat input for 

## 17 more than 

## 876 hours in the six 

## (6) months immediately preceding the submission of an 

## 18 application for an initial NOx budget permit. 

## 19 (166) "Operator" means, for a NOx budget unit, any person who operates, controls, 

## 20 or supervises a NOx budget unit, a NOx budget source, or unitfor which an application 

## 21 for a NOx budget opt-in permit is submitted and not denied or withdrawn, and includes 22 any holding company, utilitysystem, orplant managerofthe unit orsource. 

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

34

## 1 BudgetTrading Program through afinal NOx budgetopt-in penmit. 2 (168) "Owner'', for a NOx budget unit, is defined by40 C.F.R. 96.2. 3 (169) "Owner or operator" means a person who owns, leases, operates, controls, or 

## 4 supervises an affected facility orasource ofwhich an affected facility is a part. 

# 5 (170) "oz" means ounce. 

## 6 (171) "Ozone depleting potential" or "ODP", means pursuant to 40 C.F.R. Part 82, 7 Subpart A, Appendices A and B, the ratio of the total amount of ozone destroyed by a 8 fixed amount of an ozone depleting substance to the amount of ozone destroyed 

# by the 

## 9 same mass oftrichloroftuoromethane (CFC-11) in which the ozone depleting potential of 10 CFC-11 is equal to one and zero-tenths (1.0). 11 (172) "Ozone depleting substance" or "ODS" means any chemical compound 12 regulated under40 C.F.R. Part 82 with decay products, afterthe photolysis ofthe ODS 13 by short-wave ultraviolet light, that are able to catalyze the destruction of stratospheric 14 

## ozone. 

## 15 (173) "PAL effective date" means: 16 (a) The date of issuance ofthe PAL permit; or 17 (b) For an increased PAL, the date any emissions unit that is part ofthe PAL major 18 modification becomes operational and begins to emitthe PAL pollutant. 19 (174) "PAL effective period" means the period beginning with the PAL effective date 20 and ending ten (10) years later. 21 (175) "PAL major modification" means any physical change in or a change in the 22 method ofoperation ofthe PAL source that causes itto emitthe PAL pollutant at a level 23 equal to orgreaterthan the PAL.

35

## 1 (176) "PAL permit" means the permit issued by the cabinet that establishes a PAL 

# 2 for a majorstationary source. 

## 3 (177) "PAL pollutant" means the pollutant for which a PAL is established at a major 4 stationary source. 

## 5 (178) "Particulate matter" means a material, except uncombined waterthat exists in 6 afinely divided form as a liquidorsolid measured by a U.S. EPA-approved test method 7 oratest method approved in the Kentucky SIP. 8 (179) "Particulate matter emissions" means, except as used in 40 C.F.R. Part 60, all 9 finely divided solid or liquid material, other than uncombined water, emitted to the 10 ambient· air as measured 

# by applicable reference methods, or an equivalent or 

## 11 alternative method specified in 40 C.F.R. Chapter I, or by atest method specified in the 12 Kentucky SIP. 13 (180) "Peak load" means the maximum instantaneous operating load. 14 (181) "Permitted capacityfactor'' means the annual permitted fuel use divided by the 15 manufacturer's specified maximum fuel consumption multiplied by 8,760 hours peryear. 16 (182) "Person" is defined by KRS 224.01-010(17). 17 (183) "Plant-wide applicability limitation" or "PAL" means an emission limitation, 18 expressed in tons per year, for a pollutant at a major stationary source, that is 

## 19 enforceable as a practical matter and is established source-wide in accordance with 401 20 KAR51:017or51:052. 21 (184) 

## "PM2.s11 

## means particulate matter with an aerodynamic diameter less than or 

## 22 equal to a nominal two and five-tenths (2.5) micrometers as measured by a reference 23 method in 40 C.F.R. Part 50, Appendix L, and designated in accordance with 40 C.F.R.

36

## 1 Part 53, or by an equivalent method designated in accordancewith 40 C.F.R. Part 53. 2 (185) "PM,o'' means particulate matter with an aerodynamic diameter less than or 3 equal to a nominal ten (10) micrometers as measured by a reference method in 40 4 C.F.R. Part 50, Appendix J, 

## and designated in accordancewith 40 C.F.R. Part 53, or by 5 an equivalent method designated in accordance with 40 C.F.R. Part 53. 6 (186) "PM 10 

## emissions" means finely divided solid or liquid material with an 7 aerodynamic diameter less than or equal to a nominal ten (10) micrometers emitted to 8 the ambient air as measured 

# by an applicable reference method, or an equivalent or 

## 9 alternative method specified in 40 C.F.R. Chapter I, or by atest method specified in the 1

0 Kentucky SIP. 11 (187) "Pollution prevention" is defined by40 C.F.R. 51.166(b)(38). 12 (188) "Portland cement" means a hydraulic cement produced by pulverizing clinker 13 consisting essentially of hydraulic calcium silicates. 

## 14 (189) "Portland cement kiln" means asystem, including solid, gaseous or liquid fuel 15 combustion equipment, used to calcite and fuse raw materials, including limestone and 

## 16 clay, to produce Portland cement clinker. 17 (190) "Potential to emit" or"PTE" means: 18 (a) The maximum capacity of a stationary source to emit a pollutant under its 19 physical and operational design, in which: 20 1. A physical or operational limitation on the capacity of a source to emit an air 21 pollutant, including air pollution control equipment and restrictions on hours of operation 

## 22 oron the type or amount of material combusted, stored, or processed, is treated as part 23 of its design ifthe limitation is enforceable as a practical matter; and

37

## 1 2. This definition does not alter or affect the use of this term for other purposes of 2 the Clean AirAct, 42 U.S.C. 7401

- 7671q, or the term "capacity factor" as used in the 3 Acid Rain Program. 

## 4 (b) Forthe PSD and NSR programs, the maximum capacity ofastationary source to 5 emit a 

## pollutant under its physical or operational design, in which; 

## 6 1. A physical or operational limitation on the capacity of the source to emit a 7 pollutant, including air pollution control equipment and restrictions on hours of operation 8 or on 

## the type or amount of material combusted, stored, or processed, is treated as part 

## 9 of its design ifthe limitation orthe effect itwould have on emissions: 1

0 a. Is federally enforceable; or 11 b. For an actual PAL, is federally enforceable or enforceable as a practical matter; 12 and 13 2. Secondary emissions are not counted. 

## 14 (191) "ppb" means parts per billion. 15 (192) "ppm" means parts per million. 16 (193) "ppm(w/w)" means parts per million (weight byweight). 17 (194) "Precalciner kiln" means a kiln in which the feed to the kiln system is 18 preheated in cyclone chambers and utilizes a second burner to calcine material in a 

## 19 separate vessel attached to the preheater prior to the final fusion in a kiln that forms 20 clinker. 21 (195) "Predictive emissions monitoring system" or "PEMS" is defined by 40 C.F.R. 22 51.166(b)(44). 23 (196) "Preheater kiln" means a kiln in which the feed to the kiln system is preheated



# 38

## 1 in cyclone chambers priorto the final fusion in a kiln thatforms clinker. 2 (197) "Prevention of Significant Deterioration Program" or "PSD Program" means a 3 major source preconstruction program that has been approved by the U.S. EPA and 4 incorporated into the Kentucky SIP to implement the requirements of 40 C.F.R. 51.166 5 or52.21. 6 (198) "Project" means a physical change in or change in method of operation of an 7 

## existing majorstationary source. 

## 8 (199) "Projected actual emissions" means: 9 (a) The maximum annual rate, in tons per year, at which an existing emissions unit 10 is projected to emit a regulated NSR pollutant in any one (1) of the five (5) years, in a 11 twelve (12) month period, following the date the unit resumes regular operation afterthe 12 project, or in any one (1) oftheten (10) years following that date, if: 13 1. The project involves increasing the emissions unit's design capacity or its 

## 14 potential to emitthe regulated NSR pollutant; and 15 2. Full utilization of the unit would result in a significant emissions increase or a 

## 16 significant netemissions increase atthe majorstationary source; or 

## 17 (b) The maximum annual rate, in tons per year, at which an emissions unit, before 18 beginning actual construction, is projected to emit a regulated NSR pollutant, 

# if the 19 source: 20 1.a. Considers all relevant information, including historical operational data and the 21 company's own representations of expected and highest projected business activity, 22 filings with the cabinet and the U.S. EPA, and compliance plans under the Kentucky 23 SIP;

39

## 1 b. Includes fugitive emissions and emissions associated with startups, shutdowns, 

## 2 and malfunctions; and 3 c. Excludes, in calculating any increase in emissions that results from a project, that 

## 4 portion of the unit's emissions following the project that an existing unit could have 5 accommodated during the consecutive twenty-four (24) month period used to establish 6 the baseline actual emissions and that are also unrelated to the project, including any 7 increased utilization due to product demand growth; or 8 2. Elects to use the emissions unit1

## s potential to emit, in tons per year, instead of 

## 9 using subparagraph 1. ofthis paragraph to determine projected actual emissions. 1

0 (200) "psia" means pounds persquare inch absolute. 11 (201) "psig" means pounds persquare inch gage. 12 (202) "RACT/BACT/LAER Clearinghouse" or "RBLC" means the U.S. EPA's online 13 collection ofprevious RACT/BACT/LAER determinations. 14 (203) "Reactivation of a very clean coal-fired EUSGU" is defined by 40 C.F.R. 15 51.166(b)(37). 16 (204) "Reasonable further progress" is defined by 42 U.S.C. 7501(1). For purposes 17 ofthis definition, "administrator" meansthe U.S. EPA. 18 (205) "Reconstruction" means the replacement of components of an existing 19 affected facility tothe extentthat: 20 (a) The fixed capital cost of the new components exceeds fifty (50) percent of the 21 fixed capital costthatwould be required to construct acomparable entirely new affected 22 facility; and 23 (b) It is technologically and economically feasible to meet the applicable

40

# 1 requirements of401 KAR Chapters 50to 65. 2 (206) "Reference method" means a method of sampling and analyzing for an air 3 pollutant as published in 40 C.F.R. Part 50, Appendices A toN; 40 C.F.R. Part 53; 40 4 Part 60, Appendices A and B; 40 C.F.R. Part 61, Appendix B; or 40 C.F.R. Part 63, 5 Appendices A to D. 6 (207) "Regulated NSR pollutant" meansthe following: 7 (a) A pollutant for which a national ambient air quality standard has been 8 promulgated and the following [ooy] 

# constituents or precursors; 9 1. Volatile organic compounds and nitrogen oxides are precursors to ozone in all 

## 10 attainment and unclassifiable areas: 11 2. Sulfur dioxide is a precursor to PMllin

# all attainment and unclassifiable areas; 12 3. Nitrogen oxides are presumed to be precursors to PML2 in all attainment and 

## 13 unclassifiable areas unless it is demonstrated that emissions of nitrogen oxides from 14 sources in a specific area are not a significant contributor to that area's ambient PM.u 15 

# concentrations; 16 4.**Volatil~** 

## organic compounds are presumed not to be precursors to PM,_s in any 

## 17 attainment or unclassifiable area unless it is demonstrated that emissions of volatile 18 

## organic compounds from sources in a specific area are a significant contributor to that 19 

## area's ambient PMa& concentrations: and 20 5. Particulate matter emissions. PMa& emissions. and PM1o emissions shall include 21 gaseous emissions from a source or activity that condense to form particulate matter at 

# 22 ambienttemperatures [forsuoh pollulanls ieenliliee by

# lhe U.S. EPA] ; 23 (b) A pollutant subjectto anystandard promulgated under42 U.S.C. 7411;

41

## 1 (c) A pollutant subject to a standard promulgated under or established by 42 U.S.C. 

# 2 7671 to 7671q; or 3 (d) A 

## pollutant that otherwise is subject to regulation, as defined in subsection (231) 4 ofthis section, under 42 U.S.C. 7401 to 7671q, except that any hazardous air pollutant 5 (HAP) 

## listed in 42 U.S.C. 7412 or added to the list pursuant to 42 U.S.C. 7412(b)(2), 6 that has not been delisted pursuant to 42 U.S.C. 7412(b)(3), is not a regulated NSR 7 pollutant unless the listed HAP 

## is also regulated as a constituent or precursor of a 8 general pollutant listed under42 U.S.C. 7408. 9 (208) "Replacement unW' means an emissions unit that does not generate creditable 

## 10 emissions reductions 

# by shutting down the existing emissions unitthat is replaced, and 

## 11 that: 12 (a)1. Is a reconstructed unit within the meaning of 40 C.F.R. 60.15(b)(1) or that 13 completely takes the place ofan existing emissions unit; 14 2. Is identical to or functionally equivalent to the replaced emissions unit; and 15 3. Does not alter the basic design parameters ofthe process unit 

## 16 (b) Replaces a unitthat: 17 1. Is permanently removed from the major stationary source, is otherwise 18 permanently disabled, or is prohibited from operating 

# by a permit that is enforceable as 

## 19 a practical matter; and 20 2. If brought back into operation, is considered a new emissions unit. 

## 21 (209) "Repowering" is defined by40 C.F.R. 51.166(b)(36). 22 (210) "Responsible official" means: 23 (a) For a corporation: a president, secretary, treasurer, or vice-president of the



## 42

## 1 corporation in charge of a principal business function, or other person who performs 

## 2 similar policy or decision-making functions for the corporation, or a duly authorized 3 representative ofthat person ifthe representative is responsible forthe overall operation 4 of one (1) or more manufacturing, production, or operating facilities applying for or 5 subjectto a permit; and 6 1. The facilities employ more than 250 persons or have gross annual sales or 

## 7 expenditures exceeding $25,000,000 in second quarter 1980 dollars; or 8 2. The delegation of authority to the representative is approved in advance by the 9 cabinet pursuant to this subsection; 

## 10 (b) For a partnership or sole proprietorship, a general partner or the proprietor, 11 respectively; 12 (c) For a municipality, state, federal, or other public agency, a principal executive 13 officer or ranking elected official. The principal executive officer of a federal agency 14 includes the chief executive officer having responsibility for the overall operation of a 15 principal geographic unit ofthe agency; or 16 (d) For the acid rain portion of a permit for an affected source, the designated 17 representative. 18 (211) "Run" means the net period oftime, either intermittent or continuous within the 19 limits ofgood engineering practice, when an emission sample is collected. 

## 20 (212) "S" means at standard conditions. 21 (213) "sec" means second. 22 (214) "Secondary emissions" means emissions that: 23 (a) Occur as a result ofthe construction or operation of a major stationary source or



# 43

## 1 major modification, and do not come from the major stationary source or major 2 modification itself; 

## 3 (b) Are specific, well defined, quantifiable, and impactthe same general area as the 4 stationary source modification that causes the secondary emissions; 

## 5 (c) Include emissions from an offsite support facility that would not otherwise be 6 constructed or increase its emissions as a result of the construction or operation ofthe 7 major stationary source or major modification; and 8 (d) 

## Do not include emissions that come directly from a _mobile source, including 9 emissions from the tailpipe of a motor vehicle, atrain, or vessel. 10 (215) "Serious nonattainment county" or "serious nonattainment area" means a 11 county or portion of a county designated serious nonattainment for the national ambient 

## 12 airquality standard for ozone. 13 (216) "Severe nonattainment county" or "severe nonattainment area" means a 14 county or portion of a county designated severe nonattainment for the national ambient 15 air quality standard for ozone. 

## 16 (217) "Shutdown" means the cessation ofan operation. 17 (218) "Significant" means: 18 (a) For401 KAR 51:017, in reference to a net emissions increase or the potential of 19 a source to emit any of the pollutants listed in the following table, a rate of emissions 20 that would equal or exceed a corresponding rate listed in the table: 

## POLLUTANT

44 EMISSIONS RATE

## Carbon monoxide 100 tons per year (tpy) 

## Ozone depleting 100 tpy 

## substance Nitrogen oxides 40 tpy Sulfurdioxide 40 tpy 

# PM2s**~** 

## 10 tpy direct, 40 tpy of 

## sulfur dioxide 

# or nitrogen oxides for grecursors* 

# .EMJg 15tpy Particulate matter 25 tpy [ef**~artisulate** 

## matter eFRissieRs] [1

# a**t~y** 

## of 

# PM"' emissieRs] Ozone 40 tpy of volatile 

## organic compounds or 

## nitrogen oxides Lead 0.6 tpy Fluorides 3tpy

45

## Sulfuric acid mist 7tpy Hydrogen sulfide (H2

## S) 10 tpy Total 

## reduced sulfur 10 tpy (including H2

## S) Reduced 

## sulfur 10 tpy 

## compounds (including H,S) 

## Municipal waste 3.2 X 

## 1

# o-o combustor organics megagrams per (measured as total year (Mg/y) (3.5 x 

## tetra- through 

## acta- 1

# o·' tpy) chlorinated dibenzo-p

## dioxins and dibenzofurans) 

## Municipal waste 14 Mg/y (15 tpy) 

## combustor metals (measured as particulate matter) 

## Municipal waste 36 Mg/y (40 tpy) 

## combustor acid gases (measured as sulfur 

## dioxide and hydrogen chloride)

46

## Municipal solid waste 45**[~]** 

## Mg/y (50 landfill emissions tpy) (measured as



# nonmethane organic compounds) . 

## 1 *Nitrogen oxide emissions are evaluated unless demonstrated not to be a PMZJi 

## 2 precursor pursuant to subsection (207)(a)(3) ofthis section. 3 (b) For 401 KAR 51:017, in reference to a net emissions increase or the potential of 4 a source to emit a regulated NSR pollutantthat is not listed in the table in paragraph (a) 

# 5 of

# this subsection, anyemissions rate; 6 (c) 

## For 401 KAR 51:017, in reference to an emissions rate or a net emissions 

# 7 increase associated with a major stationary source or major modification, that is to be 8 constructed within ten (10) kilometers ofa Class Iarea, an impact on that area equal to 

# 9 orgreaterthan one (1)**~g/m 3**  

## overatwenty-four (24) houraverage; 10 (d) For401 KAR 51:052, in reference to a net emissions increase or the potential of 11 a source to emit any of the pollutants listed in the following table, a rate of emissions 12 thatwould equal orexceed acorresponding rate listed in thetable: POLLUTANT EMISSIONS RATE Carbon monoxide 

## 100 tons 

## per year (tpy) Ozone 

## depleting 100 tpy 

# Isubstance

Nitrogen oxides 

## 40 tpy

47

## Sulfur dioxide 40 tpy



# PM25**~** 

## 10tpy direct, 40 tpy of sulfur dioxide 

## or 

# nitrogen oxides 

## for

!;!fSCUfSQrS*

## ~ 15tpy Ozone 

## 40 tpy ' of volatile 

# organic compounds or nitrogen oxides 

## Lead 0.6 tpy 1 *Nitrogen oxide emiSSions 

## are evaluated unless demonstrated not to be a PM£.5 2 precursor pursuantto subsection (207)(a)(3} ofthis section. 3 (e) For 401 KAR 51:052, with the exception of the significant emissions rate for 4 

## ozone in this subsection, significant means, in referenceto an emissions increase or net 5 emissions increase, a rate ofemissions that exceeds the following: 

## 6 1. Twenty-five (25) tons peryear ofvolatile organic compounds or nitrogen oxides in 

# 7 a serious orsevere ozone nonattainment area; or 

## 8 2. Any increase in actual emissions of volatile organic compounds or nitrogen 9 oxides in an extreme ozone nonattainment area; or 10 

# (f) For 401 KAR 51:052, with the exception of the significant emissions rate for 11 carbon monoxide in this subsection, significant means, in reference to an emissions 12 increase or net emissions increase, a rate of emissions of carbon monoxide that equals 13 or exceeds fifty (50) tons per year in a serious nonattainment area for carbon monoxide 

# 48

## 1 in which astationary source contribute significantlytocarbon monoxide levels. 2 (219) "Significant emissions increase" means, for a regulated NSR pollutant, an 3 

# increase in emissions that is equal to or greater than the emission level that is 

## 4 significantforthat pollutant. 5 {220) "Significant emissions unit" means an emissions unit that emits or has the 

## 6 potential to emit a PAL pollutant in an amount equal to or greater than the applicable 7 significant level as defined in subsection (218) ofthis section or in 42 U.S.C. 7401 to 8 7671q, whichever is lower for-that PAL pollutant, but less than the amount that would 9 

# qualifythe unit as a majoremissions unit. 

## 10 (221) "Small emissions unit" means an emissions unit that emits or has the potential 11 to emit the PAL pollutant in an amount less than the PAL pollutant's applicable 12 significant level as defied in subsection (218) of this section; or in 42 U.S.C. 7401 to 13 7671q, whichever is lower. 14 (222) "SO," means sulfur dioxide. 15 (223) "Source" means one (1) or more affected facilities contained within a given 16 contiguous property line, which means the property is separated only by a public 17 thoroughfare, stream, orother right ofway. 18 (224) "sq" means square. 19 (225) "Stack or chimney" means a fiue, conduit, or duct arranged to conduct 20 emissionsto the atmosphere. 21 (226) "Standard" means an emission standard, a standard of performance, or an 

## 22 ambient air quality standard as promulgated in 401 KAR Chapters 50 to 65 or the 23 emission control requirements necessary to complywith 401 KAR Chapter 51.

49

## 1 (227) "Standard conditions" means: 2 (a) Forsource measurements, twenty (20) degrees Celsius (sixty-eight (68) degrees 3 Fahrenheit) and a pressure of760 mm Hg (29.92 in. of Hg); or 4 (b) For air quality detenminations, twenty-five (25) degrees Celsius (seventy-seven 5 (77) degrees Fahrenheit) and a reference pressure of760 mm Hg (29.92 in. of Hg). 6 (228) "Start-up" or "startup" means the setting in operation ofan affected facility. 7 (229) "State implementation plan" or "SIP" means the most recently prepared plan 8 or revision required by42 U.S.C. 7410 that has been approved bythe U.S. EPA. 

## 9 (230) "Stationary source" means a building, structure, facility, or installation that 10 emits or has the potential to emita regulated NSR pollutant. 11 (231) "Subject to regulation" is defined by40 C.F.R. 51.166(b)(48). 12 (232) "Submit" means to send or transmit a document, informa'tion, or 

## 13 correspondence in accordancewith an applicable requirement. 14 (233) "TAPPI" means TechnicalAssociation ofthe Pulp and Paper Industry. 15 (234) "Temporary clean coal technology demonstration project" is defined by 40 16 C.F.R. 51.166(b)(35). 17 (235) "Ton" or "tonnage", for a NOx budget source, means a short ton or 2,000 18 pounds. For determining compliance with the NOx budget emissions limitation, total 19 tons for acontrol period is calculated as the sum ofall recorded hourlyemissions, orthe 20 tonnage equivalent of the recorded hourly emissions rates, in accordance with 40 21 C.F.R. Part 96, Subpart H with any remaining fraction of a ton equal to or greater than 22 0.50 ton deemed to equal one (1) ton and any fraction of a ton less than 0.50 ton 23 deemed to equal zero tons.

50

# 1 (236) "Total suspended particulates" or "TSP" means particulate matter as 2 measured by the method described in 

## 40 C.F.R. Part 50, Appendix B. 3 (237) "tpy" meanstons peryear. 4 (238) "TSS" means total suspended solids. 5 (239) "Uncombined water" meanswaterthat can be separated from a compound by 6 ordinary physical means and that is not bound to a compound by internal molecular 7 forces. 

## 8 (240) "Unit" means a fossil fuel-fired stationary boiler, combustion turbine, or 9 combined cycle system. 10 (241) "Urban county" means a county that is a part of an urbanized area with a 11 population greaterthan 200,000 based upon the 1980 census. Ifa portion ofacounty is 12 a part of an urbanized area, then the entire county is classified as urban for 401 KAR 

## 13 Chapters 50 to 65. 14 (242) "Urbanized area" means an area defined by the U.S. Department of 15 Commerce, Bureau of Census. 

## 16 (243) "U.S. EPA" means the United States Environmental Protection Agency. 17 (244) 

# "UTM" means Universal Transverse Mercator. 18 (245) "Visibility impairment" is defined by40 C.F.R. 51.301. 19 (246) "Volatile organic compound" or "VOC" is defined by40 C.F.R. 51.100(s). 20 (247) "yd" means yard. 21 Section 2. Incorporation by Reference. (1) The following material is incorporated by 

# 22 reference: 23 (a) "North American Industry Classification System", 2007, as published by the

51

## 1 Office of Managementand Budget; and 2 (b) "Standard Industrial Classification Manual", 1987, as published by the Office of 3 Managementand Budget [is inserpernted by 

## reference]. 4 (2) This material may be inspected, copied or obtained, subject to applicable 5 copyright law, at the following main and regional offices ofthe Kentucky Division forAir 6 Quality during the normal working hours of8a.m. to 4:30p.m., localtime: 7 (a) Kentucky Division for Air Quality, 200 Fair Oaks Lane, 1st floor, Frankfort, 8 Kentucky 40601-1403, (502) 564-3999; 9 (b) Ashland Regional Office, 1550 Wolohan Drive, Suite 1, Ashland, Kentucky 10 41102, (606) 929-5285; 11 (c) Bowling Green Regional Office, 1508 Westen Avenue, Bowling Green, Kentucky 12 42104, (270) 746-7475; 13 (d) Florence Regional Office, 8020 Veterans Memorial Drive, Suite 110, Florence, 14 Kentucky 41042, (859) 525-4923; 15 (e) Frankfort Regional Office, 200 Fair Oaks Lane, Third Floor, Frankfort, Kentucky 16 40601, (502) 564-3358; 17 (f) 

## Hazard Regional Office, 233 Birch Street, Suite 2, Hazard, Kentucky 41701, 18 (606) 435-6022; 19 (g) London Regional Office, 875 S. Main Street, London, Kentucky 40741, (606) 20 330-2080; 21 (h) Owensboro Regional Office, 3032 Alvey Park Drive, W., Suite 700, Owensboro, 22 Kentucky 42303, (270) 687-7304; and 23 (i) Paducah Regional Office, 130 Eagle Nest Drive, Paducah, Kentucky 42003,

52

## 1 (270) 898-8468. 2 (3) The Standard Industrial Classification Manual is also available under Order No. 3 PB 87-100012 from the National Technical Information Service, 5285 Port Royal Road, 4 Springfield, Virginia 22161, phone (703) 487-4650.

53

# Leonard K. Peters, Secretary Energy and EnvironmentCabinet



# 54

## PUBLIC HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this administrative regulation shall be held on July 24, 2012, at 10:00 a.m. (local time) in Conference Room 201B on the firstfloor ofthe Division forAir 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. Ifyou do notwish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted until close of business on July 31, 2012. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person listed below. The hearing facility is accessible to persons with disabilities. Requests for reasonable 

## accommodations, including auxiliary aids and services necessary to participate in the hearing, may be made to the contact person at least five (5) workdays prior to the hearing. CONTACT PERSON: Laura Lund, Environmental Technologist Ill, Division for Air Quality, 1'1

## Floor, 200 Fair Oaks Lane, Frankfort, Kentucky 40601, telephone (502) 564- 3999, ext 4428, fax (502) 564-4666, and electronic mail Laura.Lund@ky.gov.

55

## REGULATORY IMPACTANALYSIS AND TIERING STATEMENT Administrative Regulation#: 401 KAR 51:001 Contact person: Laura Lund, Environmental Technologist Ill (1) Provide a briefsummaryof: (a) What this administrative regulation does: This administrative regulation 

## defines the terms used in 401 KAR Chapter 51. (b) The necessity of this administrative regulation: This administrative regulation provides clear and consistent definitions for terms used in 401 

## KAR Chapter 51. (c) How this administrative regulation conforms to the content of the authorizingstatutes: KRS 224.10-100(5) requires the Cabinet to provide for the prevention, abatement, and control of air pollution. The definitions 

# contained in this administrative regulation are not more stringent than the corresponding federal definitions and assist in the fulfillment offederal and state statutes 

# by providing clear and consistent definitions for terms used 

## in 401 KAR Chapter 51. (d) How this administrative regulation currently assists or will assist in the effective administration ofthe statutes: This administrative regulation assists the public and the regulated community by providing clear and consistent definitions for terms used in 

## 401 KAR Chapter51. (2) Ifthis is an amendment to an existing administrative regulation, provide a 

## briefsummaryof: (a) How the amendment will change this existing administrative regulation: This amendment adopts revisions to the New Source Review 

## (NSR) program at the federal level that implement the 

# PM,.s National Ambient Air Quality Standards (NAAQS). Specifically, the definition of "Regulated NSR pollutant" has been amended for consistency with the federal program. (b) The necessityofthe amendmenttothis administrative regulation: These amendments are necessary to ensure consistency between state and federal programs. 

## (c) How the amendment conforms to the content of the authorizing statutes: 42 U.S.C. 7410(a)(1) requires each state to adopt and submit a plan providing for the implementation, maintenance, and enforcement of a 

## NAAQS. This amendment provides the mechanisms and tools necessary to implement, maintain, and enforce standards for 

## PM2.s. This amendment maintains consistency with corresponding federal definitions affecting 

## Kentucky's NSR program. (d) How the amendment will assist in the effective administration of statutes: This amendment provides definitions ofterms used in 401 KAR



# 56

## Chapter 51 to prevent and control air pollution that are consistent with those atthefederal level. (3) Listthe type andnumberofindividuals, businesses, organizations, orstate 

## and local governments affected 

## by this administrative regulation: 

## Individuals, businesses, organizations, or governments will be affected by this regulation ifthey are subjectto any ofthe requirements contained in this chapter. (4) Provide an assessment of howthe 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: This amendment maintains consistency 

# with corresponding federal definitions affecting Kentucky's NSR 

## program. (a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment: Affected facilities wiil be required to apply and usethe terms as defined in this regulation. (b) In complying with this administrative regulation or amendment, how 

## much will it cost each ofthe entities identified in question (3): This amendment does not impose an increased cost to the regulated community. 

## (c) As a result of compliance, what benefits will accrue to the entities identified in question (3): When operating in compliance, the affected facilities will not be subject to enforcement actions and penalties. Furthermore, compliance with the Clean Air Act requirements preserves 

## and improves airqualitythroughoutthe Commonwealth. (5) Provide an estimate of how much it will cost the administrative body to implementthis administrative regulation: 

## (a) Initially: The Cabinet will not incur any additional costs for the implementation ofthis administrative regulation. 

## (b) On a continuing basis: There will not be any additional continuing costs for the implementation ofthis administrative regulation. 

## (6) What is the source ofthe funding to be used for the implementation and enforcement of this administrative regulation: The Cabinet's current 

## operating budget will be used for the implementation and enforcement of this administrative regulation. (7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment. No increase in fees or funding is necessary to 

## implementthis administrative regulation amendment. (8) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees. This administrative regulation does



# 57

# notestablish, nordirectlyor indirectly increase, any leas. (9) TIERING: Is tiering applied? Yes. This administrative regulation contains thresholds overwhich facilities may besubjectto permitting requirements.



# 58

## FEDERAL MANDATE ANALYSIS COMPARISON 1. Federal statute or regulation constituting the federal mandate. 42 U.S.C. 7410(a)(1) requires Kentucky to adopt and submit a plan providing for the implementation, maintenance, and enforcement ofa NAAQS. 

## 2. State compliance standards. The state compliance standards are found in KRS 224.10-100(5). 3. Minimum or uniform standards contained in the federal mandate. The Clean 

## AirAct is the federal mandate that requires states to have

# a plan forthe attainment ofthe national primary ambientairqualitystandards and reasonable further progress ofthe airquality. 4. Will this administrative regulation impose stricter requirements, or additional ordifferentresponsibilities 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 than the corresponding federal 

# definitions.



# 59

## FISCAL NOTE ON STATE OR LOCAL GOVERNMENT Administrative Regulation#: 401 KAR 51:001 Contactperson: Laura Lund, Environmental Technologist Ill 1. Does this administrative regulation relate to any program, service, or requirements of a state or local government (including cities, counties, fire departments, orschool 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? State and local governments will be required to 

# use definitions contained in this administrative regulation ifsubjectto the requirements of 401 KAR Chapter51. 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); 40 CFR 51.165, 51.166; and 42 U.S.C. 7401-7671q. 4. Estimate the effect of this administrative regulation on the expenditures and revenues ofastate or local governmentagency (including cities, counties,fire departments, or school districts) for the first full year the administrative regulation isto be ineffect. (a) How much revenue will this administrative regulation generate forthe state or local government (including cities, counties, fire departments, or school districts)forthefirstyear? This administrative regulation generates no revenue. (b) How much revenue will this administrative regulation generate forthe state or local government (including cities, counties, fire departments, or school districts) for subsequent years? This administrative regulation generates no revenue. (c) How much will it cost 

# to administer this program for the first year? The Cabinet's existing operating budget is the source of funding for the implementatioh ofthis program. (d) Howmuchwill itcostto administerthis programforsubsequentyears? There 

# will be noadditional costs for administering this program in subsequent years. Note: Ifspecific dollar estimates cannot be determined, provide a briefnarrative to explain the fiscal impacts ofthe administrative regulation.**·Revenues(+/~):** 

## There is no known effect on current revenues. Expenditures (+/-): 

## There is no known effect on current expenditures. Other Explanation: There is nofurther explanation.

60

## 1 ENERGYAND ENVIRONMENT CABINET 2 Departmentfor Environmental Protection 3 Division forAir Quality 4 (Amendment) 

# JUN I42012**~L~** REGULATIONS COMPILER



## 5 401 KAR 51:017. Prevention ofsignificantdeterioration ofair quality. 6 RELATES TO: KRS 224.10-100,40 C.F.R. 51 Subpart I, Appendix S, sec. IV, Part 7 51, AppendixW, 51.166, 52.21, 52.26, 53,58AppendixA, 60, 61, 63, 70.6, 81.318,81 8 Subpart D, 42 U.S.C. 7401-7671q[, 4321 4370d, EO 2009 538] 9 STATUTORY AUTHORITY: KRS 224.10-100(5), 40 C.F.R. 51.166, [52.21,] 42 10 U.S.C. 7401-7671q[. EO 2009 538] 11 NECESSITY, FUNCTION, AND CONFORMITY: KRS 224.10-100@ requires the 12 cabinet to promulgate administrative regulations for the prevention, abatement, and 

## 13 control ofair pollution. [EO 2009 538, ellestive June 12, 2009, establishes the Energy 14 and Environment Cabinet.] This administrative regulation provides for the prevention of 15 significant deterioration of ambient air quality. The provisions of this administrative 16 regulation are not [dillerent nor] more stringent than the corresponding federal 17 requirements [regulation, 40 C.F.R. 51.166]. 18 Section 1. Applicability. (1) This administrative regulation shall apply to the 19 

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

## 20 source 

## that commences construction after September 22, 1982, and locates in an area 21 designated attainment or unclassifiable under42 U.S.C. 7407(d)(1)(A}(ii) and (iii). 

# 1

## 1 (2) Except as otherwise provided in this administrative regulation, the provisions of 2 Sections 8to 16 ofthis administrative regulation shall apply to the construction of a new 3 majorstationary source or a major modification ofan existing majorstationary source. 4 (3) 

## The owner or operator of a new major stationary source or major modification, 

## 5 which is subjectto the requirements ofSections 8to 16 ofthis administrative regulation, 6 shall not begin actual construction without a proposed permit or proposeid permit 

## 7 revision issued under401 KAR 52:020 stating that the majorstationary source or major 8 modification shall meetthose requirements. 

## 9 (4) Applicability tests for projects. Except as provided in subsection (5) of this 10 section, a project shall be a major modification for a regulated NSR pollutant only ifthe 11 project causes asignificant emissions increase and asignificant net emissions increase 

## 12 as provided in paragraphs (a) and (b) ofthis subsection. 13 (a) Priorto beginning actual construction, the owner or operator shall first determine 14 

## if 

# a significant emissions increase will 

# occur for the applicable type of unit being 

## 15 constructed according to subparagraphs 1to 3ofthis paragraph. 16 1. Actual-to-projected actual applicability test for projects that only involve existing 17 

# emissions units. A 

# significant emissions increase of a regulated NSR pollutant shall be 

## 18 projected to occur if the sum of the difference between the projected actual emissions 19 and the baseline actual emissions for each existing emissions unit equals or exceeds 

## 20 the significant amountforthat pollutant. 21 2. Actual-to-potential test for projects that involve only construction of new 22 emissions units. A significant emissions increase of a regulated NSR pollutant shall be 23 projected to occur if the sum of the potential to emit from each new emissions unit



## 2

## 1 following completion of the project equals or exceeds the significant amount for that 2 pollutant. 3 3. Hybrid test for projects that involve multiple types ofemissions units. A significant 4 emissions increase of a regulated NSR pollutant shall be projected to occur ifthe sum 5 

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

## 6 subparagraphs 1 and 2 ofthis paragraph as applicable for each emissions unit, equals 7 or exceeds the significantamountforthat pollutant. 8 (b) Prior to beginning actual construction and after completing the applicable 9 procedure established in paragraph (a) of the subsection, the owner or operator shall 10 determine for each regulated NSR pollutant 

# if a significant net emissions increase will 

## 11 occurpursuantto401 KAR 51:001, Section 1(144) and (218). 12 (5) For a plant-wide applicability limit (PAL) for a regulated NSR pollutant at a major 13 

## stationary source, the owner or operator of the major stationary source shall comply 

## 14 with the applicable requirements ofSection 20 ofthis administrative regulation. 15 Section 2. Ambient Air Increments. (1) In areas designated as Class I or II, 16 

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

## 17 thefollowing levels: Pollutant 

# Maximum Allowable 

# Increase (Micrograms per cubic meter) Class I Particulate Matter:



# 3

# PM,.s annual 

# 1 arithmetic mean 

# PM,.s, 24-hour**~** 

## ·maximum



# PM10, annual 4 arithmetic mean 

# PM10, 24-hour 8 maximum 

# Sulfur Dioxide: Annual arithmetic 2

mean 

# 24whour maximum 5 3-hour maximum 25 Nitrogen Dioxide: 

# Annual arithmetic 

# 2.5

mean 

# Class II Particulate Matter:

PM,.s annual 

# 1 arithmetic mean 

# PM,.s 24-hour**~** 

## maximum



# 4

# PM,o, annual 17 

# arithmetic mean . 

# PM10, 24-hour 30 maximum 

## Sulfur Dioxide: Annual 

## arithmetic 20

mean 24-hour maximum 

## 91 3-hour maximum 

## 512 Nitrogen Dioxide: Annual arithmetic 

## 25

mean 

## 1 (2) For any perrod other than an annual perrod, the applicable maximum allowable 2 increase may be exceeded during one (1) such period peryearatanyone (1) location. 3 Section 3. Ambient Air Ceilings. The concentration of a regulated NSR pollutant 4 shall not exceed the concentration allowed under the national secondary ambient air 5 quality standard or under the national primary ambient air quality standard, whichever 6 concentration is lowerfor the pollutantfor a period ofexposure. 

## 7 Section 4. Restrictions on Area Classifications. (1) Thefollowing areas, which were 8 in existence on August 7, 1977, shall be Class Iareas and shall not be redesignated: 9 (a) International parks; 10 (b) National wilderness areas and national memorial parks that exceed 5,000 acres 11 in size; and



# 5

## 1 (c) National parks that exceed 6,000 acres in size. 2 (2) Any other area, unless otherwise specified in the legislation creating the area, 3 shall be designated Class II but may be redesignated as provided in 40 C.F.R. 4 51.166(g). 5 (3) The visibility protection requirements of this administrative regulation shall apply 6 only to sources that may impact a mandatory Class Ifederal area. 

## 7 (4) The following areas may be redesignated onlyas Class Ior II: 8 (a) An area that as of August 7, 1977, exceeded 10,000 acres in size and was a 9 national monument, a national primitive area, a national preserve, a national 

## 10 recreational area, a national wild and scenic river, a national wildlife refuge, a national 11 lakeshore or seashore; and 

## 12 (b) A national park or national wilderness area established after August 7, 1977, 13 which exceeds 10,000 acres in size. 14 Section 5. Exclusions frorn Increment Consumption. (1) Pursuant to notice and 15 opportunity for at least one (1) public hearing to be held in accordance with procedures 16 established in 401 KAR 52:100, the cabinet may exclude the following concentrations in 17 determining compliance with a maximum allowable increase: 18 (a) 

## Concentrations attributable to the increase in emissions from stationary sources 19 that have converted from the use of petroleum products, natural gas, or both by reason 20 

# of an order in effect under afederal statute or regulation over the emissions from**the~e** 

## 21 sources before the effective date ofthe order; 22 (b) Concentrations attributable to the increase in emissions from sources that have 23 converted from using natural gas 

# by reason of a natural gas curtailment plan in effect



# 6

## 1 pursuant to afederal statute overthe emissions from those sources before the effective 2 date ofthe plan; 3 (c) Concentrations of particulate matter attributable to the increase in emissions 4 from construction or other temporary emission-related activities of new or modified 5 sources; and 

## 6 (d) Concentrations attributable to the temporary increase in emissions of sulfur 7 dioxide, particulate matter, or nitrogen oxides from stationary sources affected 

# by plan 8 revisions approved by the Administrator of the U.S. EPA as meeting the criteria 9 established in subsection (3) ofthis section. 10 (2)(a) Exclusion of concentrations shall not apply more than five (5) years after the 11 effective date of the order to which subsection (1)(a) of this section refers or the 12 curtailment plan to which subsection (1)(b) of this section refers, whichever is 13 applicable. 14 (b) Ifboth an orderand curtailment plan are applicable, an exclusion shall not apply 15 morethan five (5) years afterthe laterofthe two (2) effective dates. 16 (3) Forexcluding concentrations pursuantto subsection (1)(d) ofthis section: 17 (a) The time period over which the temporary emissions increase of sulfur dioxide, 18 particulate matter, or nitrogen oxides would occur shall be specified and shall not 19 exceed two (2) years in duration unless a longertime is approved bythe U.S. EPA; 20 (b) The time period for excluding certain contributions in accordance with paragraph 21 (a) ofthis subsection shall not be renewable; 22 (c)

## An emissions increase from astationary source shall not occurthat

# will:

7

## 1 1. Impact aClass Iarea or an area in which an applicable increment is known to be 2 violated; or 3 2. Cause or contribute to the violation ofa national ambient air quality standard; and 

## 4 (d) Limitations shall be in effect at the end of the time period established in 5 paragraph (a) of this subsection, which ensure that the emissions levels from stationary 

## 6 sources affected by the SIP revision shall not exceed the levels occurring from those 7 sources before the revision was approved: 

## 8 Section 6. Stack Heights. (1) The degree ofemissions limitation required for control 9 ofan air pollutant underthis administrative regulation shall notbe affected by: 1

0 (a) So much ofthe stack height of a source as exceeds good engineering practice; 11 or 12 (b) Anotherdispersion technique. 13 (2) Subsection (1) of this section shall not apply to stack heights in existence before 14 December31, 1970, orto dispersion techniques implemented before then. 15 Section 7. Exemptions. (1) Sections 8to16 ofthis administrative regulation shall not 16 applyto aparticular major stationary source or major modification, 

# if: 17 (a) The owneroroperator: 18 1. Obtained the necessary federal, state, and local preconstruction approval 19 effective before September22, 1982; 20 2. Commenced construction before September22, 1982; and 21 3. Did not discontinue construction for a period ofeighteen (18) months or more. 22 (b)1. The major stationary source is a nonprofit heatth institution, a nonprofit 23 educational institution, or a major modification at such an institution; and



# 8

# 1 2. The Governor ofthe Commonwealth of Kentucky requests that it be exemptfrom 2 those requirements. 

# 3 (c) 

# The source or modification is a major stationary source or major modification 4 only if fugitive emissions, to the extent quantifiable, are considered in calculating the 5 potential to emit ofthe stationarysource or modification and the source does not belong 6 to any ofthe following categories: 7 1. Coal cleaning plants with thermal dryers; 8 2. Kraft pulp mills; 9 3. Portland cement plants; 1

0 4. Primaryzincsmelters; 11 5. Iron and steel mills; 12 6. Primary aluminum ore reduction plants; 

# 13 7. Primary coppersmelters; 14 8. Municipal incinerators capable ofcharging morethan 250tons of refuse per day; 15 9. Hydrofluoric, sulfuric, or nitric acid plants; 16 10. Petroleum refineries; 17 11. Lime plants; 18 12. Phosphate rock processing plants; 19 13. Coke oven batteries; 20 14. Sulfur recovery plants; 21 15. Carbon black plants, furnace process; 22 16. Primary lead smelters; 23 17. Fuel conversion plants;



# 9

## 1 18. Sintering plants; 2 19. Secondary metal production plants; 3 20. Chemical process plants, except ethanol production facilities producing ethanol 4 by 

## natural fermentation under the North American Industry Classification System 

## 5 (NAICS) codes 325193 or312140; 6 21. Fossil-fuel boilers, or combination of fossil-fuel boilers, totaling more than 250 

## 7 million BTUs per hourheat input; 8 22. Petroleum storage and transfer units with a total storage capacity exceeding 

## 9 300,000 barrels; 10 23. Taconite ore processing plants; 11 24. Glassfiber processing plants; 12 25. Charcoal production plants; 13 26. Fossil fuel-fired steam eleCtric plants of more than 250 million BTUs per hour 14 heat input; or 15 27. Anotherstationarysource category that, as ofAugust 7, 1980, is being regulated 16 under42 U.S.C. 7411 or7412. 17 (d) The source or modification is a portable stationary source that has previously 18 received a permit underthis administrative regulation; and 1 9 1. The owner or operator proposes to relocate the source, and the emissions ofthe 20 source atthe new location will be temporary; 21 2. The emissions from the source

## will not exceed its allowable emissions; 22 3. The emissions from the source will not impact a Class I area or an area where an 23 applicable increment is known to be violated; and



## 10

## 1 4.a. Reasonable notice is given to the cabinet prior to the relocation identifying the 2 proposed new location and the probable duration ofoperation atthe new location. 3 b. Notice shall be given to the cabinet not less than ten (10) days in advance ofthe 4 proposed relocation unless a different time duration is previously approved 

# by the 

## 5 cabinet pursuantto this subsection. 6 (e) The source or modification was not subject to this administrative regulation with 7 respect toparticulate matter requirements in effect before July 31, 1987, and the owner 

# 8 or operator: 

## 9 1. Obtained all final federal, state, and local preconstruction approvals or permits 10 necessary underthe applicable SIP before July 31, 1987; 11 2. Commenced construction within eighteen (18) months afterJuly 31, 1987; and 12 3. Did not discontinue construction for a period ofeighteen (18) months or more and 13 completed construction within a reasonable period oftime. 14 (f)1. The source or modification was subject to this administrative regulation for 

## 15 particulate matter requirements in effect before July 31, 1987, and the owner or 16 operator submitted an application for a permit under the applicable permit program 17 before that date; and 18 2. The cabinet subsequently determined that the application as submitted was 19 completewith respectto the particulate matter requirements then in effect. 20 (2) Sections 8 to 16 of this administrative regulation shall not apply to a major 21 stationary source or major modification for a particular pollutant 

# ifthe owner or operator 

## 22 demonstrates that, for that pollutant, the source or modification is located in an area 23 designated as nonattainment pursuantto 42 U.S.C. 7407(d)(1)(A)(i).



# 11

## 1 (3) Sections 9,11, and 13 of this administrative regulation shall not apply to a 2 proposed major stationary source or major modification for a particular pollutant, if the 3 allowable emissions of that pollutant from the source, or the net emissions increase of 

## 4 that pollutantfrom a modification: 5 (a) Will not impact a Class Iarea or an areawhere an applicable increment is known 

## 6 to be violated; and 7 (b) Will be temporary. 8 (4) 

## Sections 9, 11, and 13 of this administrative regulation, as applicable to a 9 maximum allowable increase for a Class II area, shall not apply to a major modification 10 at a stationary source that was in existence on March 1, 1978, 

## if the net increase in 

## 11 allowable emissions of each regulated NSR pollutant from the modification after the 12 application of BACTwill be less than fifty (50) tons peryear. 13 (5) The cabinet may exempt a proposed major stationary source or major 14 modification from the monitoring requirements of Section 11 of this administrative 

## 15 regulation for a particular pollutant, if: 16 (a) The emissions increase of the pollutant from the new source or the net 17 emissions increase ofthe pollutantfrom the modification 

# will cause airquality impacts in 18 an area, which are lessthan the amounts listed in thefollowing table; or Pollutant Air Quality Averaging Level Time 

## Carbon 575**~g/m"** 

## 8-hour 

# monoxide average

12

## Nitrogen 14**~g/m'** 

## annual dioxide average 

# PM'-' 4 uglm' 24-hour 

## average 

# PM10 10 ug/m' 24-hour average 

## [Partisulate 

# 10**~glm ~**  

## 24 hour FAatteF 

# PM, a•erage] Sulfur 13**~g/rii'** 

## 24-hour dioxide average 

# Ozone A de minimis air quality level is not provided for 

## ozone. However, a net increase of 100 tons per year or more of volatile 

## organic compounds

or nitrogen .oxides subject to 

## this administrative regulation shall be required to perform

an ambient impact analysis 

## including the gathering of ambientair qualitydata.

13

## Lead 0.1**~g/m** 

## 3-month average 

## Fluorides 

## 0.25**~glm'** 

## 24-hour 

# average Hydrogen 0.2**~g/m** 

## 1-hour sulfide 

# average Total 10**~g/m"** 

## 1-hour reduced average 

## sulfur Reduced 10**~g/m"** 

## 1-hour sulfur 

# average compounds 

## 1 (b) The concentrations ofthe pollutant 1n the area thatthe source or modification will 2 affect are less than the concentrations listed in the table in paragraph (a) of this 3 subsection, orthe pollutant is not listed in thetable. 4 (6) Permitting requirements equivalent to Section 9(2) of this administrative 5 regulation shall not apply to a stationary source or modification for a maximum 

# 6 allowable increase for nitrogen oxides, if: 7 (a) 

## The owner or operator ofthe source or modification submitted an application for 8 a permit or permit revision 

## under the applicable permit program before the date on 9 which the provisions embodying the maximum allowable increase took effect in the 

## 10 Kentucky SIP; and

14

## 1 (b) The cabinet subsequently determined that the application as submitted before 2 that date was complete. 3 (7) Permitting requirements equivalent to Section 1 0(2) of this administrative 4 regulation shall not apply to a stationary source or modification for a maximum 5 allowable increasefor PM10, if: 6 (a) The owner or operator ofthe source or modification submitted an application for 7 a permit under the applicable permit program before the provisions embodying the 8 

# maximum allowable increasesfor PM10 

## took effect as part of Kentucky1

## SSIP; and 

## 9 (b) The cabinet subsequently determined that the application as submitted before 10 thatdate was complete. 11 (8)(a) The cabinet may determine that the requirements for air quality monitoring of 12 PM1o in Section 11 ofthis administrative regulation shall not apply to a particularsource 13 or modification, if: 14 1. The owner or operator ofthe source or modification submitted an application for a 15 permit underthis section on or before June 1, 1988; and 16 2. The cabinet subsequently determines that the application as submitted before 17 that date was complete, except for the requirements for monitoring particulate matter 18 specified in Section 11 ofthis administrative regulation. 

## 19 (b) The requirements for air quality monitoring of PM,, in Section 11 of this 20 administrative regulation shall applyto a particularsource or modification ifthe owneror 21 operator of the source or modification submitted an application for a permit under 40 22 C.F.R. 52.21 or this administrative regulation after June 1, 1988, and not later than 23 December 1, 1988.

15

## 1 1. The data shall have been gathered over at least the period from February 1, 2 1988, to the date the application becomes complete in accordance with Section 11 of 3 this administrative regulation; and 

## 4 2. If the cabinet determines that a complete and adequate analysis can be 5 accomplished with monitoring data over a shorter period, which may not to be less than 6 four (4) months, the data that Section 11 ofthis administrative regulation requires shall 7 have been gathered overthatshorter period. 8 (9) Ifthe owneroroperator ofthe source or modification submitted an application for 9 a permit under 40 C.F.R. 52.21 or this administrative regulation before the date the 1

0 provisions embodying the maximum allowable increases for PM,, took effect and the 11 cabinet subsequently determined that the application as submitted before that date was 12 complete, the requirements of Section 9(2) ofthis administrative regulation shall: 13 (a) Not apply to a stationary source or modification for a maximum allowable 

## 14 increase for PM10;

## and 

## 15 (b) Apply for the maximum allowable increases for TSP as in effect on the day the 16 application was submitted. 

## 17 Section 8. Control Technology Review. (1) A major stationary source or major 18 modification shall meet each applicable emissions limitation under the Kentucky SIP 

## 19 and each applicable emissions standard and standard of performance pursuant to 40 20 C.F.R. Parts 60 and 61. 21 (2) A new major stationary source shall apply BACT for each regulated NSR 22 pollutantforwhich the source has the potential to emit in significant amounts. 

## 23 (3) A major modification shall apply BACT:

16

## 1 (a) For each regulated NSR pollutant that results in a significant net emissions 2 increase at

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

## 4 pollutant occurs as a result of a physical change or change in the method of operation 5 ofthe unit. 6 (4) For phased construction projects: 7 (a) The cabinet shall review and modify, as appropriate, the BACT determination at 8 the latest reasonable time occurring not later than eighteen (18) months prior to 9 commencement

# Otconstruction of

## each independentphase 

## ofthe project; and 

## 10 (b) If requested by the cabinet, the owner or operator of the applicable stationary 11 source shall demonstrate the adequacy of a previous BACT determination for the 12 source. 

## 13 Section 9. Source Impact Analysis

. 

# .(11_ The owner or operator of the proposed 14 source or modification shall demonstrate that allowable emissions increases from the 15 proposed source or modification, in conjunction with all other applicable emissions 

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

## 17 air pollution in violation of: 18 

# @)(fB]A national ambientairquality standard in an airqualitycontrol region; or 19**f!ll[~]** 

## An applicable maximum allowable increase over the baseline concentration 

# 20 in any area. 

## 21 (2) For purposes of PM2.5, 

## the demonstration pursuant to subsection (1) of this 22 section is deemed to have been made ifthe emissions increasefrom the newstationary



## 17

## 1 

## source alone or from the modification alone would cause. in all areas, an air quality 

## 2 impact less than the amounts listed in thefollowing table. Pollutant Averaging Time 

## Class Iarea Class II area

PM;c; Annual 

## 0.06**~g/m** 

## 0.3**~gim'** 

## PM,,s 24-hour 0.07**~g/m** 

## 1.2**~g/m** 

## 3 Sect1on 10. Alf Quality Models. (1) Est1mates of ambient concentrations shall be 4 based on the applicable airquality models, databases, and other requirements specified 5 in 40 C.F.R. Part51, AppendixW, "Guideline on AirQuality Models" AppendixA. 6 (2) If an air quality model specified in 40 C.F.R. Part 51, Appendix W, is 7 inappropriate, the model may be modified or another model substituted. 8 (a) The use ofa modified orsubstitute model shall be: 9 1. Subjectto notice and opportunityfor public comment under401 KAR 52:100; and 10 2. Approved in writing bythe U.S. EPA pursuantto 

## 40 C.F.R. 51.166(1). 11 (b) Methods similar to those outlined in the "Workbook for the Comparison of Air 12 Quality Models," specified in 401 KAR 50:040, Section 1(3), shall be used to determine 13 the comparability ofairquality models. 14 Section 11. AirQualityAnalysis. (1) Preapplication analysis. 15 (a) An application for a permit or permit revision under 401 KAR 52:020 and this 16 adri'linistrative regulation shall contain an analysis of ambient air quality in the area that 

## 17 the majorstationary source or major modification will affectfor each ofthefollowing: 18 1. For a source, each pollutant that the source will have the potential to emit in a 19 significantamount;

18

## 1 2. For a modification, each pollutant that the modification will result in a significant 2 netemissions increase. 

## 3 (b) For a pollutant that does not have a national ambient air quality standard, the 4 analysis shall contain air quality monitoring data the cabinet determines necessary to 5 assess ambient air quality for that pollutant in an area that the emissions of that 6 pollutantwill affect. 7 (c) For pollutants, other than nonmethane hydrocarbons, for which a standard 8 

# exists, the analysis shall contain continuous air quality monitoring data gathered to 9 determine 

# if emissions of that pollutant 

# will cause or contribute to a violation of the 1

0 standard ora maximum allowable increase. 

## 11 (d)1. The required continuous air quality monitoring data shall have been gathered 12 over a period of at least one (1) year and shall represent at least the year preceding 13 receipt ofthe application. 14 2. If the cabinet determines that a complete and adequate analysis may be 15 accomplished with monitoring data gathered over a period shorter than one (1) year, 16 that period shall be not lessthan four (4) months. 17 (e) For analysis ofvolatile organic compounds, the owner or operator ofa proposed 18 major stationary source or major 

## modification who satisfies all conditions of 40 C.F.R. 

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

# 20 instead of providing preconstruction data as required in this section. 21 

# (f) For air quality monitoring of PM 10 

## under Section 7(8)(a) and (b) of this 

# 22 administrative regulation, the owner or operatorofthe source or major modification shall 23 use a monitoring method approved by the cabinet pursuant to 40 C.F.R. Part 53 and

19

## 1 shall estimate the ambient concentrations of PM 10 

## using the data collected by that 2 approved monitoring method in accordance with estimating procedures approved bythe 3 cabinet pursuant to 40 C.F.R. Part 58, AppendixA. 4 (2) Postconstruction monitoring. After construction of a·major stationary source or 

## 5 major modification, the owner or operator shall conduct ambient monitoring that the 6 cabinet determines is necessary to determine the effect emissions from the stationary 

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

## 8 (3) Operation of monitoring stations. During the operation of air quality monitoring 9 

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

## 10 meet the requirements of 40 C.F.R. Part 58, Appendix A to satisfy the air quality 11 analysis reqUirements of this section. 

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

## 13 modification shall submitto the cabinet all information necessaryto perform an analysis 14 

# or make adetermination required underthis administrative regulation. 

## 15 (1) The information shall include: 16 (a) A description of the nature, location, design capacity, and typical operating 17 schedule of the source or modification, including specifications and drawings showing 18 its design and plant layout; 19 (b) A detailed schedulefor construction ofthe source or modification; and 20 (c) A detailed description of the system of continuous emissions reduction planned 21 for the source or modification, emissions estimates, and any information necessary to 

## 22 determine that BACTwill be applied.

20

# 1 (2) Upon request ofthe cabinet, the owner oroperatorshall also provide information 

# 2 on: 

# 3 (a) The airquality impact ofthe source or modification, including meteorological and 4 topographical data necessaryto estimatethe impact; and 5 (b) The air quality impacts and the nature and extent of general commercial, 6 residential, industrial, and other growth that has occurred since August 7, 1977, in the 7 

# area the source or modification will affect. 

# 8 Section 13. Additional Impact Analysis. (1) The owner or operator shall provide an 9 analysis ofthe impairmentto visibility, soils, and vegetation that will occur as a result of: 

# 10 (a) The source or modification; and 11 (b) General commercial, residential, industrial, and othergrowth associated with the 12 

# source or modification. 

# 13 (2) The owner or operator shall not be required to provide an analysis ofthe impact 14 on vegetation not having significant commercial or recreational value. 

# 15 (3) The owner or operator shall provide an analysis of the air quality impact 16 projected forthe area as a result ofgeneral commercial, residential, industrial, and other 17 growth associated with the source or modification. 

# 18 (4) Visibility monitoring. 19 (a) Ifthe cabinet requires monitoring of visibility in a Class I area impacted by the 20 proposed new stationary source or major modification, the monitoring shall be 21 performed using: 22 1. Human observations; 23 2. Teleradiometers;

21

## 1 3. Photographic cameras; 2 4. Nephelometers; 3 5. Fine particulate monitors; or 

## 4 6. Other U.S. EPA-approved methods. 5 (b) The method selected shall be determined on a case-by-case basis by the 6 cabinet pursuantto 40 C.F.R. 51.166. 7 (c) Visibility monitoring required by the cabinet in a Class I area shall be approved 8 bythefederal land manager. 9 (d) Data obtained from visibility monitoring shall be made available to the cabinet, 10 the U.S. EPA, and thefederal land manager, upon request. 11 Section 14. Sources Impacting Class IAreas; Additional Requirements. (1) Notice 12 to U.S. EPA and federal land managers. The cabinet shall provide; 13 (a) Written notice to the U.S. EPA, the federal land manager, and the federal official 14 charged with direct responsibility for management of lands within a Class I area of a 15 permit application for a proposed majorstationary source or major modification that may 

## 16 affectthe Class Iarea. 17 (b) Notice promptly after receiving the penmit application. The notice shall: 18 1. Include acopy of all information relevantto the permit application; 19 2. Be given within thirty (30) days of receipt and at least sixty (60) days priorto the 20 public hearing on the application for a permitto construct; and 21 3. Include an analysis of the proposed source's anticipated impacts on visibility in 22 the Class Iarea.

22

## 1 (c) The cabinet shall also provide the federal land manager and other federal 2 officials with a copy of the preliminary determination and shall make available to them 3 the materials used in making that determination, promptly after the cabinet makes it. 4 The cabinet shall also notify all affected federal land managers within thirty (30) days of 5 receipt ofan advanced notification ofthe permit application. 6 (2) Federal land manager. The federal land manager and thefederal official charged 7 with direct responsibility for management of lands located in a Class I area shall have 8 an affirmative responsibility to protectvisibility and other air quality related values ofthe 9 lands and to consider, in consultation with the cabinet, 

# if a proposed source or 

## 10 modification will have an adverse impact on those values. 11 (3) Visibility analysis. 12 (a) The cabinet shall consider an analysis performed by the federal land manager, 13 which is provided within thirty (30) days of the notice and analysis required by 14 subsection (1) ofthis section, which shows that a proposed new majorstationarysource 15 

# or major modification may have an adverse impact on visibility in a Class Iarea. 

## 16 (b) If the cabinet finds the analysis does not demonstrate to the cabinet's 17 satisfaction that an adverse impact on visibility 

## will result in the Class Iarea, the cabinet 

## 18 shall, in the public notice required in 401 KAR 52:100, either explain that decision or 19 give notice as to where the explanation may be obtained. 20 (4) Denial; impacton airquality related values. 21 (a) The federal land manager of lands located in a Class I area may demonstrate to 22 the cabinet that the emissions from a proposed source or modification will have an 23 adverse impact on the visibility and other air quality related values ofthose lands, even

23

# 1 though the change in air quality resulting from emissions from the proposed source or 2 modification 

## will not cause or contributeto concentrations that

# will exceed the maximum 

# 3 allowable increases for aClass Iarea. 4 (b) If the cabinet concurs with the demonstration specified in paragraph (a) of this 5 subsection, the cabinet shall not issue the permit or permit revision. 6 (5) Class Ivariances. 7 (a) 

## The owner or operator of a proposed source or modification may demonstrate to 8 the federal land manager that the emissions from the source or modification 

## will not 

## 9 have adverse impact on the visibility or other air quality related values of lands located 10 in a Class I area, even though the change in air quality resulting from emissions from 11 the source or modification will cause or contribute to concentrations that will exceed the 

# 12 maximum allowable increases for a Class I area as specified in Section 2(1) of this 13 administrative regulation. 14 (b) If limitations are necessary, the cabinet may issue the permit or permit revision 

## 15 with 

# emissions limitations necessary to assure that emissions of sulfur dioxide, PMz.&.,. 

# 16 PM1ll [particulate matter], and nitrogen oxides will not exceed the maximum allowable 17 increases over minor source baseline concentration for the pollutants as specified in 40 

# 18 C.F.R. 51.166(p)(4) [Section 2(1) ofthis administrative regulation] if: 19 1. The federal land manager concurs with the demonstration specified in paragraph 20 (a) ofthis subsection and certifies accordingly; and I 

## 21 2. The other applicable requirements ofthis administrative regulation are met. ' 

# 22 (6) Sulfurdioxide variance by governorwith federal land manager's concurrence.



# 24

## 1 (a) The owner or operator of a proposed source or modification, which cannot be 2 approved under subsection (5) of this section because the source cannot be 3 constructed without exceeding a maximum allowable increase in sulfur dioxide 

## 4 applicable to a Class I area for a period of twenty-four (24) hours or less, may 5 demonstrate to the Governor ofthe Commonwealth of Kentucky that a variance will not 6 adversely affectthe visibility orotherairquality related values ofthe area. 7 (b) The governor, after consideration of the federal land manager's 8 recommendation, if applicable, and subject to the federal land manager's concurrence, 9 may, after notice 

## and public hearing, grant a variance from the maximum allowable 10 increase. 

## 11 (c) If avariance is granted, the cabinet shall issue a permit or permit revision to the 12 source or modification under the requirements of 401 KAR Chapter 52 if the other 13 applicable requirements ofthis administrative regulation are met. 14 (7) Variance bythe governorwith the President's concurrence. 15 (a) If the Governor of the Commonwealth of Kentucky recommends a variance in 16 which the federal land manager does not concur, the recommendations ofthe governor 17 and the federal land manager shall be transmitted to the President ofthe United States 18 ofAmerica. 19 (b) Ifthe variance is approved by the President, the cabinet shall issue a permit or 20 permit revision in accordancewith the requirements of401 KAR Chapter 52, if

## the other 21 applicable requirements ofthis administrative regulation are met.

25

## 1 (8) Emissions limitations for presidential or gubernatorial variance. For a permit or 2 permit revision issued pursuant to subsections (6) or (7) of this section, the source or 

## 3 modification shall complywith the emissions limitations necessaryto assure that: 4 (a) Emissions of sulfur dioxide from the source or modification shall not, during a 5 day on which the other applicable maximum allowable increases are exceeded, cause 6 or contribute to concentrations that will exceed the maximum allowable increases over 

## 7 the baseline concentration as specified in the following table; and Maximum Allowable Increase 

## (Micrograms percubic meter) Terrain areas Period 

## of Low High Exposure 24-hour maximum 

## 36 62 3-hour maximum 

## 130 221 8 (b) Em1ss1ons shall not cause or contnbute to concentrations that exceed other 

## 9 applicable maximum allowable increases for periods of exposure of twenty-four (24) 10 hours or less for more than a total of eighteen (18) days that are not necessarily 11 consecutive during an annual period. 

## 12 Section 15. Public Participation. The cabinet shall follow the applicable procedures 13 of 401 KAR 52:100, 40 C.F.R. 51.166(q), and this administrative regulation in 14 processing applications underthis administrative regulation. 

## 15 Section 16. Source Obligation. (1) An owner or operator ofa source or modification 16 subject to this administrative regulation who begins actual construction after September



## 26

## 1 22, 1982, shall construct and operate the source or modification in accordance with the 2 application submitted to the cabinet under this administrative regulation and 401 KAR 3 52:020 or underthe terms ofan approval to construct. 4 (2)(a) Approval to construct shall become invalid ifconstruction: 5 1. Is not commenced within eighteen (18) months after receipt ofthe approval; 6 2. Is discontinued for a period ofeighteen (18) months ormore; or 7 3. Is not completed within a reasonable time. 

## 8 (b) The cabinet may extend the eighteen (18) month period upon a satisfactory 9 demonstration that an extension is justified. 

## 10 1. An extension shall not apply to the time period between construction of the 11 approved phases ofaphased construction project; and 12 2. Each phase shall commence construction within eighteen (18) months of the 13 projected and approved commencement date. 14 (3) Approval to construct shall not relieve an owner or operator of the responsibility 15 to comply fully with 401 KAR Chapters 50 to 68 and other requirements of local, state, 16 orfederal law. 17 (4) If

# a particular source or modification becomes a majorstationary source or major 18' modification solely 

# by virtue of a relaxation in an enforceable limitation that was 

## 19 established afterAugust 7, 1980, on the capacity ofthe source or modification to emit a 20 pollutant, Sections 8 to 16 of this administrative regulation shall apply to the source or 21 modification as though construction had not yet commenced on the source or 

## 22 modification.



# 27

## 1 (5)(a) The provisions ofthis subsection shall apply to projects at existing emissions 2 

# units at a majorstationary source otherthan projects_at asourcewith a PAL, 

## if: 

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

# 4 modification may result in asignificantemissions increase; and 5 2. The owner or operator elects to use the method specified in 401 KAR 51:001, 6 Section 1(199)(b) to calculate projected actual emissions. 

# 7 (b) Before beginning actual construction of a project specified in paragraph (a) of 8 this subsection, the owner or operator shall document and maintain a record of the 

## 9 following information: 1

0 1. A description ofthe project; 11 2. Identification of the emissions units for which emissions of a regulated NSR 12 pollutant could be affected bythe project; and 13 3. A description of the applicability test used to determine that the project is not a 14 major modification for any regulated NSR pollutant, including: 

# 15 a. Baselihe actual emissions; 16 b. Projected actual emissions; 

## 17 c. 

## Amount of emissions excluded in calculating projected actual emissions and an 

## 18 explanation forwhythat amountwas excluded; and 19 d. Any applicable netting calculations. 20 (c) For a project specified in paragraph (a) ofthis subsection, the owner or operator 21 shall:

28

## 1 1. Monitor the emissions of any regulated NSR pollutant that could increase as a 2 result of the project and that are emitted by any emissions unit identified in paragraph 3 (b)2 ofthis subsection; and 4 2. Calculate and maintain a record of the annual emissions, in tons per year on a 

## 5 calendaryear basisfor: 6 a. Five (5) years following resumption of regular operations afterthe change; or 7 b. Ten (10) years following resumption of regular operations after the change ifthe 8 project increases the design capacity or potential to emit ofthe regulated NSR pollutant 9 

# atthe emissions unit. 10 (d) litheemissions unit is an existing EUSGU, before beginning actual construction, 11 the owner oroperator: 12 1. Shall provide a copy ofthe information in paragraph (b) ofthis subsection to the 13 cabinet, but shall not be required to obtain a determination from the cabinet before 14 beginning actual construction; and 15 2. Shall submit a report to the cabinet within sixty (60) days after the end of each 16 year during which records are required to be generated under paragraph (b) of this 17 subsection that reports the unit's annual emissions during the calendar year that 18 preceded submission ofthe report. 19 (e)1. Foran existing unitotherthan an EUSGU, the owneroroperatorshall submit a 20 reportto the cabinet if: 21 a. The annual emissions, in tons per year, from a project identified in paragraph (a) 22 

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



## 29

## 1 maintained pursuant to paragraph (b)3 of this subsection, by a significant amount for 2 that regulated NSR pollutant; and 3 b. The emissions differ from the preconstruction projection as documented and 

## 4 maintained pursuantto paragraph (b)3 ofthis subsection. 5 2. The report shall be submitted within sixty (60) days after the end of the year 6 during which records are required to be generated under paragraph (b) of this 7 subsection and shall contain thefollowing: 8 

# a. The name, address, and telephone numberofthe majorstationary source; 

## 9 b. The annual emissions as calculated pursuant to paragraph (c) ofthis subsection; 10 and 11 c. Anyother information thatthe owneroroperatorwishes to include in the report. 12 

# (f) The owner or operator ofthe source shall make the information required to be 13 documented and maintained underto this subsection available for review upon request 

## 14 for inspection bythe cabinet orthe general public pursuantto401 KAR 52:100. 15 Section 17. Environmental Impact Statements. If a proposed source or modification 16 

## is subject to action 

# by a federal agency that may necessitate preparation of an 

## 17 environmental impact statement under 42 U.S.C. 4321 to 4370d (the National 18 Environmental Policy Act), review by the cabinet conducted in accordance with this 19 administrative regulation shall be coordinated with the broad environmental reviews 

## 20 under that Act and under 42 U.S.C. 7609 to the maximum extent feasible and 21 reasonable.



## 30

# 1 Section 18. Innovative Control Technology. (1) An owner or operator of a proposed 2 major stationary source or major modification may make a written request that the 3 cabinet approve asystem of innovative control technology. 4 (2) The cabinet may, with the consent of the governors of other affected states, 5 determine that the source or modification may employ a system of innovative control 

# 6 technology if: 7 (a) 

## The proposed control system will not cause or contributeto an unreasonable risk 8 

# to public health, welfare, or safety in its operation orfunction; 9 (b) The owner or operator agrees to achieve a level of continuous emissions 

# 10 reduction equivalent to that which would have been required under Section 8(2) ofthis 11 administrative regulation by adate, specified bythe cabinetthat is not laterthan four (4) 12 years from the time ofstart-up orseven (7) years !tom penmit issuance; 13 (c) The source or modification shall meet requirements equivalent to those in 14 Sections 8 and 9 of this administrative regulation based on the emissions rate that the 15 stationary source employing the system of innovative control technology shall be 16 required to meeton the date specified bythe cabinet; 17 (d) The source or modification shall not before the date specified bythe cabinet: 18 1. Cause or contribute to a violation of·an applicable national ambient air quality 19 standard; or 20 2. Impact an area in which an applicable increment is known to be violated; 21 (e) Section 14 of this administrative regulation relating to Class I areas has been 22 satisfied for all periods during the life ofthe source or modification; and



# 31

## 1 (f) 

## All other applicable requirements including those for public participation have 2 been met. 

## 3 (3) The cabinet shall withdraw approval to employ a system of innovative control 4 technology if: 5 (a) The proposed system fails by the specified date to achieve the required 6 

## continuous emissions reduction rate; 

## 7 (b) The proposed system fails before the specified date and contributes to an 8 unreasonable risk to public health, welfare, orsafety; or 9 (c) The cabinet decides that the proposed system is unlikely to achieve the required 10 level ofcontrol orto protectthe public health, welfare, orsafety. 11 (4) If a source or modification fails to meet the required level of continuous 

# 12 emissions 

# reduction within the specified time period or th6 approval is withdrawn in 13 accordance with subsection (3) 

## of this section, the cabinet may allow the source or 14 modification up to an additional three (3) 

## years to meet the requirement for the 15 application of BACTthrough use ofademonstrated system ofcontrol. 16 Section 19. Permit Condition Rescission. (1)(a) An owner or operator holding a 17 permit for a stationary source or 

## modification that cOntains conditions pursuant to 401 18 KAR 51:015 or51 :016E may requestthatthe cabinet rescind the applicable conditions. 19 (b) An owner or operator of a stationary source or modification who holds a permit 20 

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

## 21 effect on July 30, 1987, or an earlier version of this administrative regulation, may 22 requestthatthe cabinet rescind the penmit ora particular portion ofthe permit.

32

## 1 (2) The cabinet shall rescind a permit condition if requested and ifthe applicant can 2 demonstrate to the satisfaction ofthe cabinetthatthis administrative regulation does not 3 applyto the source or modification orto a portion ofthe source or modification. 

## 4 Section 20. Plant-wide Applicability Limit Provisions. The cabinet shall only approve 5 the use of an actuals PAL (PAL) for an existing major stationary source if the PAL 6 meets 

## the requirements ofthis section. 

## 7 (1) General provisions. 8 (a) An owner or operator may execute a projectwithouttriggering major NSR, ifthe 9 source maintains its total source-wide emissions below the PAL level, meets the 

## 10 requirements in this section, and complies with the PAL permit. Ifthese conditions are 11 met, a project: 12 1. Shall not be considered a major modification forthe PAL pollutant; 13 2. Shall not haveto be approved through Kentucky's major NSR program; and 14 3. Shall not be subject to the provisions of Section 16(4) of this administrative 15 regulation concerning restrictions on relaxing enforceable emission limitations that a 

## 16 major stationary source used to avoid applicability ofthe major NSR program. 17 (b) Except as provided under subparagraph (1)(a)3 of this section, a major 18 stationary source shall continue to comply with all applicable federal or state 19 requirements, emissions 

## limitations, and work practice requirements that were 

## 20 established priorto the effective date ofthe PAL. 21 (2) Permit application requirements. The owner or operator of a major stationary 22 source shall submit the following information to the cabinet for approval as part of an 23 application for a permit or permit revision requesting a PAL:



## 33

## 1 (a) A list of all emissions units at the source designated as small, significant, or 2 major, based on their potential to emit; 3 (b) Identification of the federal and state applicable requirements, emissions 4 limitations, and work practice requirements that apply to each emissions unit; 5 (c) 

## Calculations of the baseline actual emissions for the emissions units with 

## 6 

# supporting documentation, including emissions associated with startup, shutdown, and 7 malfunction; and 

## 8 (d) The calculation procedures the owneror operator proposes to use to convert the 9 

## monitoring system data to monthly emissions and annual emissions based on atwelve 

## 10 (12) month rolling total for each month as required by subsection (12)(a) ofthis section. 11 (3) Establishing a PAL. The cabinet shall establish a PAL at a major stationary 12 source in a

## federally enforceable permit pursuantto the requirements ofthis section. 

## 13 (a) The PAL shall impose an annual emissions limitation in tons per year that is 14 enforceable as a practical matterfor the entire major stationary source. 

## 15 1. Foreach month during the PAL effective period afterthe firsttwelve (12) months 16 of establishing a PAL, the owner or operator shall demonstrate that the sum of the 17 monthly emissions from each emissions unit underthe PAL forthe previous twelve (12) 18 consecutive months is less than the PAL as a twelve (12) month average, rolled 19 monthly; and 20 2. For each month during the first eleven (11) months from the PAL effective date, 21 the owner or operator shall demonstrate that the sum of the preceding monthly 22 emissions from the PAL effective date for each emissions unit under the PAL is less 23 than the PAL.



# 34

# 1 (b) The PAL shall be established in a PAL permitthat: 2 1. Meets the public participation requirements in subsection (4) ofthis section; and 3 2. Contains all the requirements ofsubsection (6) ofthis section. 4 (c) A PAL shall include fugitive emissions, to the extent quantifiable, from all 5 emissions units that emit or have the potential to emit the PAL pollutant at the major 6 stationary source. 

# 7 (d) Each PAL shall regulate emissions ofonly one (1) pollutant. 8 (e) Each PAL shall have a PAL effective period often (10) years. 9 (f) 

# The owner or operator ofa major stationary source with a PAL shall comply with 10 the monitoring, recordkeeping, and reporting requirements ofsubsections (11) to (13) of 11 this section for each emissions unit underthe PALthrough the PAL effective period. 12 (g) Emissions reductions of a PAL pollutant that occur during the PAL effective 13 period shall not be creditable as decreases for offsets under 40 C.F.R. 51.165(a)(3)(ii), 14 unless: 15 1. The level ofthe PAL is reduced bythe amount ofthe emissions reductions; and 16 2. The reductions will be creditable in the absence ofthe PAL. 17 (4) 

# Public participation requirements. PALs for existing major stationary sources 18 shall be established, renewed, or increased pursuant to this subsection and the 19 applicable procedures of401 

# KAR 52:100. The cabinet shall: 20 (a) Provide the public with notice of the proposed approval of a PAL permit with at 21 least athirty (30) day period for submittal ofpublic comment; and 22 (b) Address all material comments before taking final action on a PAL permit or 

# 23 permit revision.



# 35

# 1 (5) Setting the ten (10) year PAL leveL 2 (a) The PAL level for a major stationary source shall be the sum of the baseline 3 actual emissions of the PAL pollutant for each emissions unit at the source during the 4 chosen twenty-four (24) month period plus the applicable significant level for the PAL 5 pollutant under the definition for "significant" in 401 KAR 

## 51:001, Section 1 or under 42 6 U.S.C. 7401-7671q, whichever is lower. 7 (b) In establishing a PAL level for a PAL pollutant, only one (1) consecutive twenty

# a four (24) month period shall be used to determine the baseline actual emissions for all 9 

# existing emissions units. 10 (c) A different consecutive twenty-four (24) month period may be used for each 11 different PAL pollutant. 12 (d) Emissions associated with units that were permanently shut down after the 13 chosen twenty-four (24) month period shall be subtracted from the PAL leveL 14 (e) Emissions from units for which actual construction began after the twenty-four 15 (24) month period shall be added to the PAL level in an amount equal to the potential to 16 emitofthe units. 17 (f) 

## The cabinet shall specify a reduced PAL level in the PAL permit to become 18 effective on the future compliance date of any applicable federal or state regulatory 19 requirementthatthe cabinet is aware ofpriorto issuance ofthe PAL permit. 20 (6) Contents of the PAL permit. The PAL permit shall contain the following 21 information: 22 (a) The PAL pollutant and the applicable source-wide emissions limitation in tons 23 peryear;

36

## 1 (b) The PAL permit effective date and the expiration date of the PAL or PAL 2 effective period; 3 (c) Specification in the PAL permit that if a major stationary source owner or 4 operator applies to renew a PAL under subsection (9) ofthis section before the end of 

# 5 the PAL effective period, the PAL shall remain in effect until a revised PAL permit is 6 

## issued bythe cabinet; 7 (d) A requirement that emissions calculations for compliance purposes include 

# 8 emissions from startups, 

# shutdowns, and malfunctions; 

# 9 (e) A requirement that, once the PAL expires, the major stationary source shall be 10 subjecttothe requirements ofsubsection (8) ofthis section; 11 (f) 

## The calculation procedures that the major stationary source owner or operator 12 shall use to convert the monitoring system data to monthly emissions and annual 13 emissions based on a twelve (12) month rolling total for each month as required by 14 subsection (12)(a) ofthis section; 15 (g) A requirement that the major stationary source owner or operator shall monitor 16 all emissions units in accordance with the provisions in subsection (12) ofthis section; 

## 17 (h) A requirement that the owner or operator shall retain the records required under 18 subsection (12) ofthis section on site. Records may be retained in an electronicfonmat; 

# 19 (i) A requirement for the owner or operator to submit the reports required under 20 subsection (13) ofthissection bythe required deadlines; and 21 

# 0) Any requirements necessaryto implement and enforcethe PAL. 22 (7) PAL effective period and reopening of a PAL permit. 23 (a) A PAL effective period shall be ten (10) years.

37

## 1 (b) The cabinet shall reopen a PAL permitto: 2 1. Correcttypographical orcalculation errors made in setting the PAL; 

# 3 2. Reflect a more accurate determination ofemissions used to establish the PAL; 4 3. Reduce the PAL 

## if the owner or operator of the major stationary source creates 

## 5 creditable emissions reductions for use as offsets under40 C.F.R. 51.165(a)(3)(ii); or 6 4. Revise the PAL to reflect an increase in the PAL according to subsection (10) of 7 this section. 

## 8 (c) The cabinet may reopen the PAL permit, during the PAL effective period, to: 9 1. Reduce the PAL to reflect newly applicable federal requirements with compliance 10 dates afterthe PAL effective date; 11 2. Reduce the PAL consistent with any requirement enforceable as a practical 12 matterand imposed on the majorstationarysource underthe SIP; and 13 3. Reduce the PAL if the cabinet determines that a reduction is necessary to avoid 14 causing or contributing to: 15 a. A National AmbientAir Quality Standard (NMOS) or PSD incrementviolation; or 16 b. An adverse impact on visibility or another air quality related value that has been 17 identified for afederal Class Iarea by afederal land manager and forwhich information 1

# a is available to the general public. 19 (d) All permit reopenings shall be carried out under the public participation 20 

## requirements of subsection (4) of this section except for permit teopenings to correct 

## 21 typographical or calculation oferrors thatdo not increasethe PAL level. 22 (8) Expiration ofa PAL. A PALthat is not renewed shall expire atthe end ofthe PAL 23 effective period, and the requirements ofthis subsection shall then apply.



# 38

## 1 (a) Each emissions unit, or each group of emissions units, that existed under the 2 PAL shall comply with an allowable emissions limitations under a revised permit 3 established as follows: 4 1. An owner or operator of a major stationary source using a PAL shall submit a 5 proposed allowable emissions limitation for each emissions unit, or each group of 

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

## 7 source among each ofthe emissions unitsthat existed underthe PAL. 8 a. This proposal shall be submitted to the cabinet at least six (6) months before the 9 expiration of the PAL permit but not sooner than eighteen (18) months before permit 10 expiration. 11 b. Ifthe PAL has not yet been adjusted for an applicable requirement that became 12 effective during the PAL effective period, as required under subsection (9)(e) of this 13 section, distribution of allowable emissions shall be made as if the PAL has been 14 adjusted. 15 2. The cabinet shall decide the date and procedure the owner or operator shall use 16 to distribute the PAL allowable emissions. 17 3. The cabinet shall issue a revised penmit incorporating allowable limits for each 18 emissions unit, or 

## each group of emissions units, as the cabinet determines is 

## 19 appropriate. 20 (b) Each emissions unit shall comply with the allowable emissions limitation on a 21 twelve (12) month rolling basis. The cabinet may approvethe use ofmonitoring systems 22 other than CEMS, CERMS, PEMS, or CPMS if the alternate monitoring system 23 demonstrates compliancewith the allowable emissions limitation.



# 39

## 1 (c) The source shall continue to complywith a source-wide, multiunit emissions cap 2 equivalent to the level of the PAL emissions limitation until the cabinet issues the 3 revised permit incorporating allowable limits for each emissions unit or each group of 

# 4 emissions units. 

## 5 (d) A major modification at the major stationary source shall be subject to major 6 NSR requirements. 7 (e) The major stationary source owner or operatorshall continueto comply with any 8 state or federal applicable requirements eliminated by the PAL that applied during or 9 before the PAL effective period, except for those emissions limitations established 10 pursuantto Section 16(4) ofthis administrative regulation. 11 (9) Renewal ofa PAL. 12 (a) Public participation requirements. 13 1. The cabinet shall follow the public participation procedures specified in 14 subsection (4) of this section in approving a request to renew a PAL for a major 15 stationary source. 16 2. The cabinet shall provide awritten rationale forthe proposed PAL level for public 

# 17 review

# and comment. 18 3. Any person may propose a PAL level for the source for consideration by the 19 cabinet during the public review period. 

## 20 (b) Application deadline. 21 1. A major stationary source owner or operator shall submit an application for 22 renewal of a PAL at least six (6) months before the date of permit expiration but not 23 earlierthan eighteen (18) months before permit expiration.

40

## 1 2. The deadline for application submittal shall ensure thatthe permit shall not expire 2 before the permit is renewed. 

## 3 3. Ifacomplete application for renewal is submitted within thetimeframe specified in 4 subparagraph 1 of this paragraph, the PAL shall continue to be effective until the 5 revised permitwith the renewed PAL is issued. 6 (c) Application requirements. The application to renew a PAL permit shall contain: 7 1. The information required in subsection (2) ofthis section; 8 2. A proposed PAL level; 9 3. The sum of the potential to emit of all emissions units under the PAL with 10 

## supporting documentation; and 11 4·. Any other information the owner or operator wishes the cabinet 

# to consider in 

## 12 determining the appropriate level to renewthe PAL. 13 (d) PAL adjustment. 14 1. A PAL shall not exceed the source's potential to emit. The cabinet shall adjustthe 15 PAL downward ifasource's potential to emit has declined belowthe PAL level. 16 2. The cabinet may renew the PAL at the same level as the current PAL 

# if the sum 17 

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

## 18 equal to the significant level is equal to or greaterthan eighty (80) percentofthe current 19 PAL level, unless the sum is greaterthan the source's potential to emit. 20 3. If the sum of the baseline actual emissions for all emissions units at the source 

## 21 plus an amount equal to the significant level is less than eighty (80) percent of the 22 current PAL level, the cabinet may set the PAL at a different level if the level is 23 determined to be:

41

## 1 

## a. More representative ofthe source's baseline actual emissions; or 

## 2 b. Appropriate considering thefollowing factors: 3 (i) Airquality needs; 4 (ii) Advances in control technology; 5 (iii) Anticipated economic growth in the area ofthe source; 6 (iv) The cabinet's goal ofpromoting voluntary emissions reductions; 7 (v) Cost effective emissions control alternatives; and 

## 8 (vi) Other factors as specifically identified by the cabinet in its written rationale for 9 setting the PAL level. 10 4. The cabinet shall not approve a renewed PAL level higher than the current PAL, 11 unless the major stationary source has complied with the provisions of subsection (10) 12 ofthis section. 13 (e) The PAL shall be adjusted in conjunction with PAL permit renewal or Title V 14 permit renewal, whichever comes first, if: 

## 15 1. The compliance date for a state orfederal applicable requirement that applies to 16 the PAL source occurs during the PAL effective period; and 17 2. The cabinet has notalready adjusted forthe requirement. 18 (10) Increasing a PAL during the PAL effective period. The cabinet may increase a 19 PAL emissions limitation during the PAL effective period if the major stationary source 20 complies with the provisions ofthis subsection. 

## 21 (a) Application procedures. To request an increase in the PAL limit for a PAL major 22 modification, the owner or operator of the major stationary source shall submit a 23 complete application, which shall include:



# 42

## 1 1. Identification of the emissions units contributing to the increase in emissions that 2 cause the source's emissions to equal or exceed its PAL; 

## 3 2. Demonstration that the increased PAL, as calculated in paragraph (c) of this 4 subsection, exceedsthe PAL; and 5 a. The level ofcontrol that results from BACT equivalent controls on each significant 6 or major emissions unit shall be determined by conducting a new BACT analysis with 7 the application submittal, unless the emissions unit is currently required to comply with a 

## 8 BACT or LAER requirement that was established within the preceding ten (10) years; 9 b. If an emissions unit currently complies with BACT or LAER, the assumed control 10 level forthat emissions unitshall be equal to the current level of BACT or LAER forthat 11 emissions unit; and 

## 12 3. A statement that the increased PAL level shall be effective on the day any 13 emissions unit that is part of the PAL major modification becomes operational and 14 begins to emitthe PAL pollutant. 15 (b) NSR permit and compliance requirement. The owner or operator shall obtain a 16 major NSR permitfor all emissions units contributing to the increase in emissions forthe 

## 17 PAL major modification. 18 1. A significant level shall not apply in deciding for which emissions units a major 19 NSR permit shall be obtained; and 20 2. Emissions units that obtain a major NSR permit shall comply with any emissions 21 requirements resulting from the major NSR process, even though the units shall also 22 become subjectto the PAL orshall continueto be subjectto the PAL.



# 43

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

# 2 sum of

# the allowable emissions for each modified or new emissions unit, plus the sum 3 

## ofthe baseline actual emissions of the significant and major emissions units assuming 

## 4 application of BACT equivalent controls, plus the sum of the baseline actual emissions 5 

# ofthe small emissions units. 

## 6 (d) Public notice requirement. The public notice requirements of subsection (4) of 7 this section shall be followed during PAL permit revision foran increased PAL level. 8 (11) Monitoring requirements for PALs. 9 (a) General requirements. 10 1. Each PAL permit shall contain enforceable requirements for the chosen 11 monitoring system that accurately determines plant-wide emissions ofthe PAL pollutant 12 in terms of mass per unit oftime; 

## 13 2. A monitoring system authorized for use in the PAL permit shall be: 14 a. Approved bythe cabinet pursuantto this subsection; and 15 b. Based on sound science and meet generally acceptable scientific procedures for 16 data quality and manipulation; 17 3. The data generated by a monitoring system shall meet minimum legal 18 requirements for admissibility in ajudicial proceeding to enforcethe PAL permit; 19 4. The PAL monitoring system shall employ one (1) or more of the four (4) general 20 monitoring approaches meeting the minimum requirements set forth in paragraph (b) of 21 this subsection; 22 5. The cabinet may approve an alternative monitoring approach that meets the 23 requirements ofsubparagraphs 1to 3ofthis paragraph; and

44

## 1 6. Failure to use a monitoring system that meets the requirements ofthis section 2 shall renderthe PAL invalid. 3 (b) Minimum performance requirements for approved monitoring approaches. If 4 conducted in accordance with the minimum requirements in paragraphs (c) to (i) ofthis 5 subsection, the following shall be acceptable monitoring approaches: 6 1. Mass balance calculations for activities using coatings or solvents; 7 2. GEMS; 8 3. GPMS or PEMS; and 9 4. Emission factors. 10 (c) 

## Mass balance calculations. An owner or operator using mass balance 11 calculations to monitor PAL pollutant emissions from activities using coatings or 

## 12 solvents shall: 13 1. Provide a demonstrated means of validating the published content of the PAL 14 pollutant contained in orcreated 

# byall materials used in oratthe emissions unit; 15 2. If the PAL pollutant cannot be accounted for in the process, assume that the 16 emissions unit emits all ofthe PAL pollutant contained in or created 

# by any raw material 

## 17 or

## fuel used in oratthe emissions unit; and 18 3. lithevendorofthe material orfuel from which the pollutant originates publishes a 19 range, use the highestvalue ofthe published range of pollutant contentto calculate the 20 PAL pollutant emissions, unless the cabinet determines there is site-specific data or a 21 site-specific monitoring program to supportanother pollutant contentwithin the range. 22 (d) GEMS. An owner or operator using GEMS to monitor PAL pollutant emissions 23 shall meetthefollowing requirements:



# 45

## 1 1. GEMS shall complywith applicable performance specificationsfound in 40 G.F.R. 2 Part 60, Appendix B; and 3 2. GEMS shall sample, analyze, and record data at least every fifteen (15) minutes 4 while the emissions unit is operating. 

## 5 (e) GPMS or PEMS. An owner or operator using GPMS or PEMS to monitor PAL 6 pollutantemissions shall"meetthe following requirements: 

## 7 1. The GPMS or the PEMS shall be based on current site-specific data 8 demonstrating a correlation between the monitored parameter and the PAL pollutant 9 emissions across 

## the range of operation ofthe emissions unit; and 

## 10 2, While the unit is operating, each GPMS or PEMS shall sample, analyze, and 11 record data at least every fifteen (15) minutes, or at another less frequent interval if 12 approved bythe cabinet. 13 (f) 

## Emission factors. An owner or operator using emission factors to monitor PAL 

## 14 pollutant emissions shall meetthefollowing requirements: 15 1. All emission factors shall be adjusted, ifappropriate, to accountforthe degree of 16 uncertainty or limitations in the factors' development; 17 2. The emissions unit shall operate within the designated range of use for the 18 emissionfactor, 

# ifapplicable; and

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

## 20 factor to calculate PAL pollutant emissions shall conduct validation testing to determine 21 asite-specificemissionfactorwithin six (6) months of PAL permit issuance ifthe cabinet 22 determines thatthe testing is required and technically practicable.



# 46

## 1 (g) A source owner oroperatorshall record and report maximum potential emissions 2 without considering enforceable emissions limitations or operational restrictions for an 3 emissions unit during any period of time there is no monitoring data, unless another 4 method for determining emissions during such periods is specified in the PAL permit. 5 (h) If an owner or operator of an emissions unit cannot 

## demonstrate a correlation 6 between the monitored parameters and the PAL pollutantemissions rate at all operating 7 points of the emissions unit, as an alternative to the requirements of paragraphs (c) to 8 (g) ofthis subsection, in conjunction with permit issuancethe cabinet shall: 9 1. Establish**defau~** 

## values for determining compliance with the PAL based on the 10 highest potential emissions reasonably estimated at operating points; or 11 2. Determine that operation of the emissions unit during operating conditions 

## if there 

## 12 is not a 

## correlation between monitored parameters and the PAL pollutant emissions is a 13 violation ofthe PAL 14 (i) Revalidation. All data used to establish the PAL pollutant shall be revalidated 15 through performance testing or other scientifically valid means if approved by the 16 cabinet. Validation testing shall occurat least once everyfive (5) years after issuance of 17 the PAL 18 (12) Recordkeeping requirements. 19 (a) The PAL permit shall require an owner or operatorto retain a copy ofall records 20 necessaryto determine compliance with any requirement ofthis section and ofthe PAL, 21 including a determination of each emissions unit's twelve (12) month rolling total 22 emissionsforfive (5) yearsfrom the date ofthe determination.



# 47

## 1 (b) The PAL permit shall require an owner or operator to retain a copy of the 2 following records forthe duration ofthe PAL effective period plus five (5) years: 3 1. A copy of the PAL permit application and any applications for revisions to the 4 PAL; and 5 2. Each annual certification of compliance pursuant to Title V and the data used to 

## 6 certify compliance. 7 (13) Reporting and notification requirements. The owner or operator shall submit 8 semiannual monitoring reports and prompt deviation reports to the cabinet in 

## 9 accordance with 401 KAR 52:020, 52:030, and 52:040 that meet the following 10 requirements: 11 (a) Semiannual report. The semiannual report shall be submitted to the cabinet 12 within thirty (30) days ofthe end of each reporting period and shall contain: 13 1. The identification ofownerand operatorand the permit number; 14 2. Total annual emissions, in tpy, based on atwelve (12) month rolling total for each 15 month in the reporting period recorded pursuantto subsection (12)(a) ofthis section; 16 3. All data used in calculating the monthly and annual PAL pollutant emissions, 17 including any quality assurance orqualitycontrol data; 18 4. A list of any emissions units modified or added to the major stationary source 

## 19 during the preceding six (6) month period; 20 5. The number, duration, and cause of any deviations or monitoring malfunctions, 

## 21 other than the time associated with zero and span calibration checks, and any 22 corrective action 

## following adeviation;



# 48

## 1 6. A notification of permanent or temporary shutdown of any monitoring system 2 including: 3 a. The reason forthe shutdown; 4 b. The anticipated date that the monitoring system shall be fully operational or shall 5 be replaced with another monitoring system; 

## 6 c. If applicable, a statement that the emissions unit monitored by the monitoring 7 system continued to operatewithoutthe monitoring system; and 

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

# 9 according to subsection (11)(g) ofthis section that is included in the permit; and 10 7. A 

## signed statement by the responsible official, as defined by 401 KAR 

## 51:001, 11 Section 1(210), certifying the truth, accuracy, and completeness of the information 12 provided in the semiannual report. 13 (b) Deviation report. The major stationary source owner or operator shall submit 14 reports of any deviation or exceedance of the PAL 

## requirements, including periods 15 monitoring is unavailable. 16 1. A report submitted pursuant to 40 C.F.R. 70.6(a)(3)(iii)(B) shall satisfy the 17 deviation reporting requirement; 

## 18 2. The deviation report shall be submitted within the time limits prescribed by 40 19 C.F.R. 70.6(a)(3)(iii)(B); 20 3. The deviation report shall contain thefollowing information: 21 a. The identification ofthe owner, the operator, and the permit number; 22 b. 

## The PAL 

## requirement that experienced the deviation orthatwas exceeded; 

# 23 

# c. Emissions resulting from the deviation orthe exceedance; and

49

## 1 d. A signed statement by the responsible official, as defined by 401 KAR 51:001, 2 Section 1(210), certifying the truth, accuracy, and completeness of the information 3 provided in the report. 4 (c) Revalidation results. The owner or operator shall submit to the cabinet the 5 results ofany revalidation test or method within three (3) months after completion ofthe 6 test or method. 7 (14) Transition requirements. 8 (a) Afterthe U.S. EPA approves the Kentucky SIP revisions for the PAL provisions 9 published in 67 Fed. Reg. 80186, December 31, 2002, the cabinet shall only issue a 1

0 PAL that complies with the requirements ofthis section. 11 (b) The cabinet may supersede a PAL thatwas established before August 10, 2006, 12 with adifferent PAL ifthe new PAL complies with the requirements ofthis administrative 13 regulation.

50

## Leonard K. Peters, Secretary Energy and EnvironmentCabinet



# 51

## PUBLIC HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this administrative regulation shall be held on July 24, 2012, at 10:00 a.m. (local time) in Conference Room 201 B on the firstfloor ofthe Division forAir 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. Ifyou do notwish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted until close of business on 

## July 31, 2012. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person listed 

## below. The hearing facility is accessible to persons with disabilities. Requests for reasonable accommodations, including auxiliary aids and services necessary to participate in the 

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

## CONTACT PERSON: Laura Lund, Environmental Technologist Ill, Division for Air Quality, 1'1

## Floor. 200 Fair Oaks Lane, Frankfort, Kentucky 40601, telephone (502) 564- 3999, ext. 4428, fax (502) 564-4666, and electronic mail Laura.Lund@ky.gov.

52

## REGULATORY IMPACTANALYSIS AND TIERING STATEMENT Administrative Regulation#: 401 KAR 51:017 Contactperson: Laura Lund, Environmental Technologist Ill (1) Provide a briefsummaryof: (a) Whatthis administrative regulation does: This administrative regulation provides forthe prevention ofsignificant deterioration (PSD) ofambient air quality, and applies to major stationary sources and major modificationS 

## constructing in areas that are maintaining the National Ambient Air Quality Standards (NAAQS). (b) The necessity of this administrative regulation: This administrative regulation is necessary to continue to receive full approval of the PSD 

## program into the Kentucky State Implementation Plan (SIP) and remain the PSD permitting authority. (c) How this administrative regulation conforms to the content of the authorizing statutes: KRS 224.10-100(5) requires the cabinet to promulgate administrative regulations for the prevention, abatement, and control of air pollution. This administrative regulation conforms to 42 

## U.S.C. 7470, which authorizes thefederal PSD program. (d) How this administrative regulation currently assists or 

# will assist in the effective administration of the statutes: This administrative 

## regulation establishes the requirements for issuing permits to stationary sources in areas where the NAAQS have been attained. 

## (2) Ifthis is an amendment to an existing administrative regulation, provide a briefsummary of: 

## (a) How the amendment will change this existing administrative regulation: This amendment reflects revisions to the PSD program atthe federal level to address the PM2.5 

## NAAQS. This amendment includes maximum allowable increases for 

# PM2.5 in Class I and II areas at annual and 24-hour levels. This amendment also includes de minimis levels to preclude further evaluation for sources emitting or increasing their 

## emissions by an amount less than the airquality impactlevelsfor PMz.s. (b) The necessityofthe amendmenttothis administrative regulation: These amendments are necessary to ensure consistency between state 

## and federal programs. (c) How the amendment conforms to the content of the authorizing statutes: 42 U.S.C. 7410(a)(1) requires each state to adopt and submit a plan providing for the implementation, maintenance, and enforcement of a 

## NAAQS. This amendment contains implementation tools for the maintenance and attainment ofthe NAAQS. KRS 224.10-100(5) requires the Cabinet to provide for the prevention, abatement, and control of air pollution. This amendment maintains consistency with corresponding federal requirements.



# 53 I '

## (d) How the amendment will assist in the effective administration of statutes: ·This amendment incorporates implementation elements relating 

## to PM,.s, as required by 40 C.F.R 51.166, and eliminates regulatory uncertainty between the state and federal programs. (3) Listthe type and numberofindividuals, businesses, organizations, orstate and local governments affected 

## by this administrative regulation: Any new major stationary source or any project at an existing major stationary source that commences construction after September 22, 1982, and locates in an area 

## designated attainment or unclassifiable is affected by this administrative regulation. 

## (4) Provide an assessmentof howthe entities identified in question (3) will be impacted 

## by either the implementation of this administrative regulation, if new, or 

## by the change if it is an amendment: Amendments to the current 

## regulation include the permitting elements relating to PM2.5 

## emissions. Entities subject to this regulation are to provide 

## PM2.5 

## emissions data and demonstrate thatthe project emissions do not cause or contribute to a violation ofthe NAAQS. 

## In the past, DAQ has used PM10 

## as a surrogate for PM25 

## due to inadequate test methods and the lack of implementation elements. However, the U.S. EPA has determined that the appropriate data and technology are now available and the use ofthe 

## PM1osurrogacy policy is no longer allowed. 

## (a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation oramendment: Affected facilities' permit applications will be required to provide emissions data for PMz.s and demonstrate that the project's emissions do not cause or contribute to a violation of the PMz.s 

## NAAQS. 

## (b) In complying with this administrative regulation oramendment, how much will it cost each of the entities identified in question (3): Affected -facilities will incur the cost necessary to obtain a permit that includes an evaluation of 

## PM2.5

## emissions. 

## (c) As a result of compliance, what benefits will accrue to the entities identified in question (3): When operating in compliance, the affected facilities will not be subject to enforcement actions and penalties. Furthermore, compliance with the Clean Air Act requirements preserves 

## and improves airqualitythroughoutthe Commonwealth. (5) Provide an estimate of how much it will cost the administrative body to implementthis administrative regulation: 

## (a) Initially: The Cabinet will not incur any additional costs for the implementation ofthis administrative regulation. 

## (b) On a continuing basis: There will not be any additional continuing costs for the implementation ofthis administrative regulation. 

## (6) What is the source ofthe funding to be used for the implementation and



# 54

## enforcement of this administrative regulation: The Cabinefs current operating budget will be used for the implementation and enforcement of this administrative regulation. (7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it"is an amendment. No increase in fees or funding is necessary to implementthis administrative regulation amendment. (8) State whether or notthis administrative regulation establishes any fees or directly or indirectly increases any fees. This administrative regulation does not establish, nordirectly or indirectly increase, anyfees. (9) TIERING: Is tiering applied? Yes. This administrative regulation only applies to new major stationary sources, or an existing major stationary source with a project, that commences construction afterSeptember22, 1982, and is located in an area designated attainment or unclassifiable.



# 55

## FEDERAL MANDATEANALYSIS COMPARISON 1. Federal statute or regulation constituting the federal mandate. As a SIPapproved state for the PSD program under 40 CFR 51.166, recent changes in the federal PSD program make it necessary to revise this regulation to maintain federal approvability. 42 U.S.C. 7410(a)(1) requires Kentucky to adopt and submit a plan providing forthe implementation, maintenance, and enforcement ofa NAAQS. 2. State compliance standards. The state compliance standards are found in KRS 224.10-100(5). 3. Minimum or uniform standards contained in the federal mandate. The Clean 

## AirAct requires applicable sources demonstrate that any major construction or major modification 

# will not cause emissions to cause or contribute to a violation of the 

## NAAQS. 40 C.F.R. 51.166 is the federal rule that provides the framework to establish a plan and requirements necessary to receive full approval into the Kentucky SIP. 4. Will this administrative regulation impose stricter requirements, or additional ordifferentresponsibilities or requirements, than those required 

# by the federal mandate? No. This regulation is no more stringent than the federal rule, codified in 

## 40 C.F.R. 51.166, and no more stringentthan the federal mandate established by 42 U.S.C. 7401-7626. 

# 5. Justification for the imposition of the stricter standard, or additional or different responsibilities or requirements. Stricter standards and requirements are not imposed.



## 56

# FISCAL NOTE ON STATE OR LOCAL GOVERNMENT Administrative Regulation#: 401 KAR 51:017 Contact person: Laura Lund, Environmental Technologist Ill 1. Does this administrative regulation relate to any program, service, or requirements of a state or local government (including cities, counties, fire 

# departments,orschool districts)? Yes. 

# 2. What units, parts or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation? The Division for Air Quality will continue to implement and enforce the PSD program. Also, state and local governments constructing or modifying a major stationary source in an area classified as attainment or 

# unclassified will be impacted bythis administrative regulation. 

# 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); 40 CFR 51.166; and 42 U.S.C. 7401-7671q. 

# 4. Estimate the effect ofthis administrative regulation on the expenditures and revenues ofa state or local governmentagency (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 forthe state or local government (including cities, counties, fire departments, or school 

# districts)forthe firstyear? This administrative regulation generates no revenue. (b)· How much revenue will this administrative regulation generate forthe state or local government (including cities, counties, fire departments, or school 

# districts) for subsequent years? This administrative regulation generates no 

# revenue. (c) How much will it cost to administer this program for the first year? The Cabinet's existing operating budget is the source of funding for the implementation ofthis program. (d) Howmuchwill itcostto administerthis program forsubsequentyears? There will be no additional costs for administering this program in subsequentyears. Note: Ifspecific· dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impacts ofthe administrative regulation. Revenues(+/-): There is no known effect on current revenues. 

# Expenditures(+/-): There is no known effect on currentexpenditures. Other Explanation: There is no further explanation.

57

## 1 ENERGYAND ENVIRONMENTCABINET 2 Departmentfor Environmental Protection 3 Division forAirQuality 4 (Amendment) 

# JUN 142012**D-.......l'~** REGULATIONS COMPILER



## 5 401 KAR 51:052. Review ofnew sources in or impacting upon nonattainmentareas. 6 RELATES TO: KRS 224.20-100[f§l], 224.20-110, 224.20-120, 40 C.F.R. Part 51 7 Appendix S, Part 51 Subpart I, 51.165, 51.166, 51.300, 51.307, 52.21, 60, 61, 70.6, Part 8 81 Subpart D, 81.318,42 U.S.C. 7401-7671q 9 STATUTORYAUTHORITY: KRS 224.10-100(5), 42 U.S.C. 7401-7671q 10 NECESSITY, FUNCTION, AND CONFORMITY: KRS 224.10-100(5) requires the 11 cabinet to promulgate administrative regulations for the prevention, abatement, and 12 control of air pollution. This administrative regulation establishes requirements for the 13 construction or 

## modification of stationary sources within, or impacting upon, areas 14 where the national ambientairquality standards have not been attained. The provisions 15 of 

## this administrative regulation are not more stringent than the corresponding federal 

## 16 requirements (regulation, 40 C.F.R. §1.15§]. 17 Section 1. Applicability. This administrative regulation shall apply to the construction 18 of a new major stationary source or a project 

## that is a major modification at an existing 

## 19 major stationary source, which commences construction after September 22, 1982, and 

## 20 locates in or impacts upon an area designated nonattainment under 42 U.S.C. 21 7407(d)(1)(A)(i).

1

## 1 (1) The provisions ofthis administrative regulation relating to visibility protection shall 2 also apply to major sources or major modifications in nonattainment areas that 

## 3 potentially have an impact on visibility in a mandatory Class Ifederal area. 4 (2) Applicability tests for projects. Except as provided in subsection (3) of this 5 section, a project shall be a major modification for a regulated NSR pollutant only if the 6 project causes a significant emissions increase 

## and a significant net emissions 

## 7 increase, as provided in paragraphs (a) and (b) ofthis subsection. 8 

# (a} Priorto beginning actual construction, the owner or operator shall first determine 9 

# if a significant emissions increase 

# will occur for the applicable type of unit being 

## 10 constructed or modified according to subparagraphs 1to 3ofthis paragraph. 11 1. Actual-to-projected actual applicability test for projects that only involve existing 12 emissions units. 

## A significant emissions increase of a 

## regulated NSR pollutant shall be 

## 13 projected to occur ifthe sum of the difference between the projected actual emissions 14 and the baseline actual emissions for each existing emissions unit equals or exceeds 

## 15 the significant amountforthat pollutant. 16 2. Actual-to-potential test for projects that involve only construction of new 17 emissions units. A significant emissions increase of a regulated NSR pollutant shall be 18 projected to occur 

# if the sum of the potential to emit from each new emissions unit 

## 19 following completion of the project equals or exceeds the significant amount for that 20 pollutant. 21 3. Hybrid test for projects that involve multiple types ofemissions units. A significant 22 emissions increase of a regulated NSR pollutant shall be projected to occur if the sum 23 of the emissions increases for each emissions unit, using the methods specified in



## 2

## 1 subparagraphs 1 and 2 ofthis paragraph as applicable for each emissions unit, equals 2 orexceeds the significantamountforthat pollutant. 3 (b) Priorto beginning actual construction and after completing the applicable test in 4 paragraph (a) of this subsection, the owner or operator shall detenmine for each 5 regulated NSR pollutant 

# if a significant net emissions increase will occur pursuant to 

## 6 401 KAR 51:001, Section 1(144) and (218). 7 (3) For a plant-wide applicability limit (PAL) for a regulated NSR pollutant at a major 8 stationary source, the owner or operator of the major stationary source shall comply 9 with the applicable requirements ofSection 11 ofthis administrative regulation. 10 Section 2. Initial Screening Analyses and Determination of Applicable 11 Requirements. (1) Review ofall sources for emissions limitation compliance. 12 (a) The cabinet shall examine each proposed major new source and proposed 13 major modification to determine 

# if the source or modification will meet all applicable 

## 14 emissions requirements in the Kentucky State Implementation Plan (SIP) and 40 C.F.R. 15 Parts60and61. 16 (b) Ifthe cabinet determines from the application and all other available infonmation 17 that the proposed source or modification will not meet the applicable emissions 18 requirements, the penmit to construct shall be denied. 19 (2) Review ofspecified sources ofair quality impact. 20 (a) The cabinet shall detenmine if a proposed major stationary source or major 21 modification 

## will be constructed in an area designated as nonattainment pursuant to 42 

## 22 U.S.C. 7407(d)(1)(A)(i) for a pollutant for which the stationary source or modification is 23 major.



# 3

## 1 (b) If adesignated nonattainment area is projected to be an attainment area as part 2 of an approved control strategy by the new source start-up date, offsets shall not be 3 required 

# ifthe newsource will not cause a newviolation. 4 (3) Fugitive emissions sources. Sections 4 and 10 of this administrative regulation 5 shall not applyto a source or modification thatwill be a majorstationarysource or major 6 modification only 

# if fugitive emissions, to the extent quantifiable, are considered in 

## 7 calculating the potential to emit ofthe stationary source or modification and the source 8 does not belong to one (1) ofthefollowing categories: 9 (a) Coal cleaning plants with thermal dryers; 10 (b) Kraft pulp mills; 11 (c) Portland cement plants; 12 (d) Primary zinc smelters; 13 (e) Iron and steel mills; 14 

# (f) Primary aluminum ore reduction plants; 15 (g) Primary coppersmelters; 16 (h) Municipal incinerators capable ofcharging morethan 250 tons of refuse perday; 17 (i) Hydrofluoric, sulfuric, or nitricacid plants; 18 

# U) Petroleum refineries; 19 (k) Lime plants; 20 (I) Phosphate rock processing plants; 21 (m) Coke oven batteries; 22 (n) Sulfur recovery plants; 23 (o) Carbon black plants, furnace process;



# 4

## 1 (p) Primary lead**sme~ers;** 

## 2 (q) Fuel conversion plants; 3 (r) Sintering plants; 4 (s) Secondary metal production plants; 5 (t) Chemical process plants, except ethanol production facilities producing ethanol 6 by natural fermentation under the North American Industry Classification System 7 (NAICS) codes 325193 or 312140; 8 (u) Fossil-fuel boilers, or combination of fossil-fuel boilers, totaling more than 250 9 million BTUs per hour heat input; 1

0 (v) Petroleum storage and transfer units with a total storage capacity exceeding 11 300,000 barrels; 12 (w) 

## Taconite ore processing plants; 13 (x) Glass fiber processing plants; 14 (y) Charcoal production plants; 15 (z) Fossil fuel-fired steam electric plants of more than 250 million BTUs per hour 16 heat input; or 17 (aa) Another stationary source category that, as of August 7, 1980, is being 18 regulated under42 U.S.C. 7411 or7412. 19 Section 3. Sources Locating in Designated Attainment or Unclassifiable Areas that 20 Will Cause or Contribute to aViolation of a National Ambient Air Quality Standard. (1) 21 This section shall apply only to new major stationary sources or new major 22 modifications that will locate in designated attainment or unclassifiable areas, pursuant 23 to 42 U.S.C. 7407(d)(1)(A)(ii) or (iii), ifthe source or modification will cause impacts that



# 5

# 1 exceed the significance levels, as listed in the table in this subsection, at a locality that 2 does not orwill not meetthe national ambient airqualitystandards. Pollutant 

## Annual 

## Averaging Time Average 24- 8- 

## 3- 1- 

## Hour 

## Hour Hour Hour Sulfur 1.0 

# 5 

# -- 25 

# -- Dioxide

## ~g/m**3**

## ~g/m**3 ~g**  

## /m3



## PM25 

## 0.3 

# .11 

# -- -- --



# - - - ug/m3 

## ug/m3 

## PM10 1.0 5 

# - -- --**~g/m 3** 

# ~g/m**3** 

## Nitrogen 1.0 

# -- 

# - - -- Dioxide

## ~g/m**3** 

## Carbon



# -- -- 0.5 

# -- 2 

## Monoxide mg/m3 

## mg/m3 

## 3 (2) Sources to wh1ch th1s sect1on applies shall meet the requirements in Section 4 4(1), (2) and (4) ofthis administrative regulation and may be exempt from Section 4(3) 

## 5 

# ofthis administrative regulation. 6 (3) For sources of sulfur dioxide (S02), 

## particulate matter, and carbon monoxide 7 (CO), the determination that a new major source or major modification will cause or 8 contribute to a violation of a national ambient air quality standard shall be made on a 

## 9 case-by-case basis using the source's allowable emissions in an approved atmospheric



# 6

## 1 simulation model listed in 40 C.F.R. Part 51, Appendix W, "Guideline on Air Quality 2 Models". 3 (4) For sources of NOx, the initial determination that a new major source or major 4 modification will cause or contribute to a violation of the national ambient air quality 

## 5 standard for nitrogen dioxide (N02) 

## shall be made using an approved atmospheric 6 simulation model assuming all the nitric oxide emitted is oxidized to N02 

# by the time the 

## 7 plume reaches ground level. The initial concentration estimates may be adjusted 

## if 8 adequate data are available to accountforthe expected oxidation rate. 

## 9 (5) For ozone, sources of VOCs or NOx locating outside a designated ozone 10 nonattainment area shall be presumed to not have a significant impact on the 11 designated nonattainment area. If ambient monitoring indicates that the area of source 12 location is in fact nonattainment, the source shall be permitted pursuant to this 

## 13 administrative regulation and 401 KAR 52:020 until the area is designated 14 nonattainment pursuantto 42 U.S.C. 7407(d)(1)(A)(i). 15 (6) The determination that a new major source or major modification will cause or 16 contribute to a violation of a national ambient air quality standard shall be made as of 17 the start-up date. 18 (7) Applications for major new sources and major modifications locating in 19 attainment or 

## unctassifiable areas, the operation ofwhich will cause a newviolation of a 20 national ambient air quality standard but 

## will not contribute to an existing violation, may 

## 21 be approved only ifthe following conditions are met: 22 (a) The new source shall: 23 1. Meet an emissions limitation;



# 7

## 1 2. Meet adesign, operational, or equipment standard; or 2 3. Control existing sources so that the new source will not cause a violation of a 

## 3 national ambient airquality standard. 4 (b) The newemissions limitations forthe new and existing sources affected shall be 5 state and federally enforceable in accordance with Section 6 of this administrative 

## 6 regulation. 7 Section 4. Sources Locating in a Designated Nonattainment Area. This section 8 shall apply to a new major stationary source or major modification that will be 9 constructed in an area designated as nonattainment pursuant to 42 U.S.C. 

## 10 7407(d)(1)(A)(i) for a pollutant for which the stationary source or modification is major. 11 Approval to construct may be granted only ifthe conditions ofthis section are met. 12 (1) The new major source or major modification shall be required to meet an 13 emissions limitation that specifies the lowest achievable emissions rate (LAER) for the 14 source. 

## 15 (2) The applicant shall demonstrate that all existing major sources owned or 16 operated by the applicant, or an entity controlling, controlled by, or under common 17 control with the applicant, in the Commonwealth of Kentucky are in compliance with all 18 applicable emissions limitations and standards specified in Title 401, Chapters 50 to 65, 19 and 40 C.F.R. Parts 60 and 61 and 42 U.S.C. 7401-7626, or are in compliance with an 20 expeditious state and federally enforceable compliance schedule or a court decree 21 establishing acompliance schedule. 22 (3)(a) Except for VOCs or NOx emissions, emissions from existing sources in the 23 affected area of the proposed new major source or modification, whether or not under



# 8

## 1 the same ownership, shall be reduced oroffsetat a ratio ofat least1:1, so thatthere will 2 be reasonable further progress toward attainment ofthe applicable national ambient air 3 quality standard (NMQS). Only those transactions in which the emissions being offset 4 are from the same criteria pollutant category shall be accepted. 5 (b) The ratio of total emissions reductions of VOCs or NOx to total increased 6 emissions ofthe same air pollutant shall be at least the ratio indicated for the following 

# 7 ozone nonattainment area classifications: 8 1. For marginal nonattainment areas, at least 1.1 to 1; 

## 9 2. For moderate nonattainmentareas, at least 1.15to 1; 10 3. For serious nonattainment areas, at least 1.2 to 1; 

## 11 4. Forsevere nonattainmentareas, at least 1.3 to 1; and 12 5. For extreme nonattainment areas, at least 1.5to 1. 

## 13 (4) The emissions reductions shall provide a positive net air quality benefit in the 14 affected area. 15 (a) Atmospheric simulation modeling shall not be required for VOCs and NOx. 16 (b) Except as provided in Section 3(5) of this administrative regulation, compliance 17 with subsection (3) ofthis section and Section 5(3)(e) of this administrative regulation 18 shall be adequateto meetthis condition. 19 (5) The proposed major stationary source or major modification shall include in the 20 application for a construction permit an analysis of the alternative sites, sizes, 

# 21 production processes, and environmental control techniques for the proposed source, 22 · which demonstrates that benefits of the proposed source significantly outweigh the 23 environmental and social costs imposed as a result of its location, construction, or



# 9

## 1 modification. 

## 2 Section 5. Determining Credit for Emissions Offsets. (1) The baseline for 3 determining credit for emissions reductions or offsets shall be, considering that baseline 

## 4 actual emissions as**defi~ed** 

## in 401 KAR 51:001, Section 1(20), shall not be used for 5 determining the baseline for emissions offsets: 6 (a) The emissions limitations in effect when the application to construct or modify a 7 source is filed; or 

## 8 (b) The actual emissions ofthe sourcefrom which offset credit is attained if: 9 1. The demonstration of reasonable further progress and attainment of ambient air 

## 10 quality standardsforthe SlPwas based on actual emissions; or 11 2. The SIP does not contain an emissions limitation for that source or source 

## 12 category. 13 (2) Credit for emissions offsets. Creditfor emissions offset purposes may be allowed 

## 14 for existing control if the existing control goes beyond the control required under 401 15 KAR 

## Chapters 50 to 65 and applicablefederal regulations. 16 (3) General provisions for calculating offsetvalues. 17 (a) Offset calculations shall be made on a pound-per-hour basis if all facilities 18 involved in the emissions offset calculations are operating at their maximum or allowed 19 production rate. 

## 20 (b) Offsets may be calculated on a tons-per-year basis if baseline emissions for 21 eXisting sources providing the offsets are calculated using the actual annual operating 

## 22 hoursforthe previous two (2) year period. 23 (c) If the cabinet requires certain hardware controls instead of an emissions

10

## 1 limitation, baseline allowable emissions shall be based on actual operating conditions 2 forthe previoustwo (2) year period in conjunction with the required hardware controls. 3 (d) Ifthe emissions limitations required by the cabinet allow greater emissions than 4 the uncontrolled emissions rate of the source, emissions offset credit shall be allowed 5 onlyfor control belowthe uncontrolled emissions rate. 6 (e) The owneror operator of a new or modified major stationary source shall comply 7 with any offset requirement in effect under this administrative regulation to increase 8 emissions ofan air pollutant by obtaining emissions reductions ofthe air pollutantfrOm: 9 1. The same source or othersources in the same nonattainmen.tarea; or 10 2. A Source in another nonattainment area if: 11 a. The other area has an equal or higher nonattainment classification than the area 12 in whichthesource is located; and 13 b. Emissions from the other area contribute to aviolation ofthe national ambient air 14 quality standard in the nonattainment area in which the source is located. 15 (4) Calculating offsets if an applicable emissions limitation does not exist. If the 16 Kentucky SIP does not contain an emissions limitation for a source or source category, 17 the emissions offset baseline involving the source shall be actual emissions determined 18 underactual operating conditionsforthe previous two (2) year period. 19 (5) Calculating offsets for existing fuel combustion sources. 20 (a) The emissions for determining emissions offset credit involving an existing fuel 21 combustion source shall be the allowable emissions under the emissions limitation 22 requirements of the cabinet for the type of fuel being burned when the new major 23 source or major modification application is filed.

11

## 1 (b) Ifthe existing source has switched to adifferent type offuel at some earlier date, 2 

# a resulting emissions reduction, either actual or aUowable, shall not be used for 

## 3 emissions offset 

## credit. 

## 4 (c) If the existing source commits to switch to a cleaner fuel at some future date, 5 emissions offset 

## credit based on the allowable emissions for the fuels involved shall not 6 be allowed unless the permit is conditioned to require the use of a specified alternative 

## 7 control measure that will achieve the same degree of emissions reduction ifthe source 

## 8 switches back to adirtierfuel at some laterdate. 9 (6) Calculating offsets for operating hours and source shutdowns. 10 (a) A source may be credited with emissions reductions achieved by shutting down 11 an existing source or permanently curtailing production or operating hours below 

## 12 baseline levels if the work force to be affected has been notified in writing of the 13 proposed shutdown orcurtailment. 14 (b) Emissions reductions achieved 

# by shutting down an existing emissions unit or 15 curtailing production or operating hours: 

## 16 1. May be generally credited for offsets pursuant to 40 C.F.R. 51.165(a)(3)(ii)(C)(1) 

# 17 if: 18 a. The reductions are surplus, penmanent, quantifiable, and federally enforceable; 19 and 20 b. The shutdown or curtailment occurred after the last day of the base year for the 21 SIP planning process. 22 (i) The cabinet may consider a prior shutdown or curtailment to have occurred after 23 the last day of the base year 

## if the projected emissions inventory used to develop an



## 12

## 1 attainment demonstrationexplicitly includes the emissions from the previouslyshutdown 2 orcurtailed emission unit, pursuantto 40 C.F.R. 51.165(a)(3)(ii)(C)(1)(ii). 

## 3 (ii) Credit shall not be given for ashutdown that occurred beforeAugust 7, 1977; 4 2. Thatdo not meetthe requirements ofsubparagraph 1.b. ofthis paragraph may be 5 generallycredited pursuant to 40 C.F.R. 51.165(a)(3)(ii)(C)(2) if: 6 a. 

## The shutdown or curtailment occurred on or afterthe date the construction permit 7 application is filed; or 8 b. The applicant establishes that the proposed new emissions unit is a rep-lacement 

## 9 for 

## the shutdown or curtailed emissions unit, and the emissions reductions achieved 

# by 10 the shutdown or curtailment meet the requirements of subparagraph 1.a. of this 11 paragraph. 12 (7) Calculating offsets for hydrocarbon substitution. An emissions offset credit shall 13 

## not be allowed for replacing one volatile organic compound with another of lesser 

## 14 photochemical reactivity, unless the replacement compound is methane, ethane, 1,1,1- 15 trichloroethane, ortrichlorofiuoroethane. 16 (8) Banking ofemissions offsetcredit 17 (a) New sources obtaining permits by applying offsets after the effective date ofthis 18 administrative regulation may bank offsets that exceed the requirements of Section 5(3) 19 ofthis administrative regulation. 20 (b) An owner or operator of an existing source that reduces its own emissions may 21 bank a resulting reduction beyond those required 

# by regulation for use under this 22 administrative regulation, even 

## if the offsets are applied immediately to a new source 

## 23 permit

13

## 1 (c) Banked emissions offsets may be used under the preconstruction review 2 program required in 42 U.S.C. 7401 to 7626, as long as these banked emissions are 3 identified and accounted for in Kentucky's control strategy. 

## 4 (9) Offset creditfor meeting NSPS or NESHAPS. 5 

## (a) If 

## a source is subject to an emissions limitation established in a New Source 

## 6 Performance Standard (NSPS) or a National Emissions Standard for Hazardous Air 7 Pollutants (NESHAPS) and a different emissions limitation is required by the cabinet, 8 the more stringent limitation shall be used as the baseline for determining credit for 

## 9 

# emissions offsets. 10 (b) The difference in emissions between NSPS or NESHAPS and other emissions 11 limitations shall not be used as offset credit 12 Section 6. Administrative Procedures for Emissions Offsets. (1) Emission 

## 13 reductions shall be enforceable by the cabinet and the U.S. EPA, and shall be 14 accomplished bythe start-up date ofthe new source. 15 (a) If emissions reductions are to be obtained in a state that neighbors the 16 Commonwealth for a new source to be located in the Commonwealth, the emissions 

## 17 reductions shall be enforceable by the neighboring state or local agencies and the U.S. 

# 18 EPA 19 (b) The necessaryemissions offsets may be proposed bythe ownerofthe proposed 20 

## source or by

## the cabinet. 21 (2) Source initiated emissions offsets. 

## 22 (a) The owneroroperatorofasource may propose: 23 1. Internal emissions offsets, which involve reductions from sources controlled 

# by

14

## 1 the owner; or 2 2. External emissions offsets, which involve reductions from other sources, if the 3 emissions offsets meet the requirements of this section and Section 4(3) of this 4 administrative· regulation. 

## 5 (b) An internal emissions offset shall be included and rnade enforceable as a 6 condition ofthe source's perrnit. 

# 7 (c) An external emissions offset shall only be accepted if the cabinet requires the 8 affected source to comply with a new emissions limitation to ensure that its emissions 9 shall be reduced by a specified amount in a specified time; and the new emissions 

## 10 limrtation shall be enforceable bythe cabinet and the U.S. EPA. 

## 11 (3) 

## Cabinet initiated emissions offsets. 12 (a) The cabinet may commit to reducing emissions from mobile sources and other 13 existing sources to provide a.net air quality benefit in the impact area of a proposed new · 14 source to accommodate the proposed new source. 15 (b) This emissions reduction commitment shall be reflected in the emissions 16 limitation requirements for the new and existing sources as required bythis section. 17 Section 7. Source Obligation. (1) An owner or operator of a source or modification 

## 18 subject to this administrative regulation shall construct and operate the source or 19 modification in accordance with the application submitted to the cabinet under this 20 administrative regulation and 401 

# KAR 52:020 or under the terms of an approval to 21 construct. 

## 22 (2)(a) Approval to construct shall become invalid ifconstruction: 23 1. Is not commenced within eighteen (18) months after receipt ofthe approval;

15

## 1 2. Is discontinued for a period ofeighteen (18) months or more; or 2 3. Is not completed within a reasonable time. 

## 3 (b) The cabinet may extend the eighteen (18) month period upon a satisfactory 4 demonstration that an extension is justified. 

## 5 1. An extension shall not apply to the time period between construction of the 6 approved phases of a phased construction project; and 7 2. Each phase shall commence construction within eighteen (18) months of the 8 projected and approved commencement date. 

## 9 (3) Approval to construct shall not relieve an owner or operator of the responsibility 10 to comply fully with applicable provisions of 401 

# KAR Chapters 50 to 65 and other 11 applicable requirements under local, state, orfederal law. 12 (4) If

# a particular source or modification becomes a major stationary source or major 13 modification solely 

# by virtue of a relaxation in an enforceable limitation which was 

## 14 established after August 

# 7, 1980, on the capacity of the source or modification 15 otherwise to emit a pollutant, the requirements of this administrative regulation shall 

## 16 apply to the source or modification as though construction had not yet commenced on 17 the source or modification. 

## 18 (5)(a) The provisions ofthis subsection shall apply to projects at existing emissions 19 units at a majorstationary source otherthan projects at asourcewith a PAL, 

# if: 20 1. There is a reasonable possibility that a project that is not part of a major 21 modification may result in asignificant·emissions increase; and 

## 22 2. The owner or operator uses the method specified in 401 

# KAR 51:001, Section 23 1(199)(b)to calculate projected actual emissions.

16

## 1 (b) Before beginning actual construction of a project specified in paragraph (a) of 2 this subsection, the owner or operator shall document and maintain a record of the 3 following information: 

## 4 1. A description ofthe projeci; 5 2. Identification of the emissions units for which emissions of a regulated NSR 

## 6 pollutant may be affected bythe project; and 7 3. A description of the applicability test used to determine that the project is not a 8 major modification for any regulated NSR 

## pollutant, including: 9 a. 

## Baseline actual emissions; 10 b. Projected actual emissions; 11 c. 

## Amount of emissions excluded in calculating projected actual emissions and an 

## 12 explanation forwhythat amountwas excluded; and 13 d. Any applicable netting calculations. 14 (c) For a project specified in paragraph (a) ofthis subsection, the owner or operator 15 shall: 16 1. Monitor the emissions of any regulated NSR 

## pollutant that could increase as a 17 result of the project and that are emitted by an emissions unit identified in paragraph 18 (a)2 ofthis subsection; and 19 2. Calculate and maintain a record of the annual emissions, in tons per year on a 20 calendaryear basis, for: 

## 21 a. Five (5) years following resumption of regular operations afterthe change; or 22 b. Ten (10) years ifthe project increases the design capacity of or potential to emit 23 forthat regulated NSR 

## pollutant atthe emissions unit.

17 

# I 

# I

## 1 (d) Ifthe unit is an existing EUSGU, before beginning actual construction, the owner 2 oroperator: 3 1. Shall provide a copy ofthe information in paragraph (b) ofthis subsection to the 4 cabinet; and 

## 5 2. Shall not be required to obtain adetermination from the cabinet before beginning 6 actual construction; and 

## 7 3. 

## Shall submit a report to the cabinet within sixty (60) days after the end of each 8 year during which records are required to be generated under paragraph (b) of this 9 subsection that contains the unit's annual emissions during the calendaryear preceding 10 report submittal. 11 (e)1. Foran existing unit otherthan an EUSGU, the owner or operator shall submit a 12 report to the cabinet if: 13 a. The annual emissions, in tons per year, from a project identified in paragraph (a) 14 

## of this subsection exceed the baseline actual emissions, as documented and 

## 15 maintained pursuant to paragraph (b)3 of this subsection, by a significant amount for 16 that regulated NSR pollutant; and 17 b. The emissions differ from the preconstruction projection as documented and 18 maintained pursuantto paragraph (b)3 ofthis subsection. 19 2. The report shall be submitted to the cabinet within sixty (60) days after the end of 20 the year during which records are required to be generated under paragraph (b) ofthis 21 subsection and shall contain the following: 22 a. The name, address, and telephone numberofthe major stationary source; 23 b. The annual emissions as calculated pursuant to paragraph (c) ofthis subsection;

18

## 1 and 2 

## c. Any other information that the owner or operatorwishes to include in the report. 

## 3 (I) 

## The owner or operator of the source shall make the information recuired to be 4 documented and maintained underthis subsection available for review upon request for 

## 5 inspection bythe cabinet orthe general public pursuantto 401 KAR 52:100. 6 Section 8. Permit Condition Rescission. (1) An owner or operator holding a permit 7 for a stationary source or modification that was issued pursuant to 401 KAR 51:050 or 8 51:051 E may request thatthe cabinet rescind the applicable conditions. 9 (2) The cabinet shall rescind a permit condition ifthe owner oroperator: 10 (a) Requests and demonstrates to the satisfaction of the cabinet that this 11 administrative regulation does not apply to the source or modification or to a portion of 12 the source or modification if construction 

## will have commenced after September 22, 

## 13 1982;and 14 (b) Demonstrates that the rescission will not violate the requirements of Sections 15 4(3) and 7ofthis administrative regulation. 16 Section 9. Class I Areas. (1) The following areas, which were in existence on 17 August 7, 1977, shall be Class Iareas and shall notbe redesignated: 18 (a) International parks; 19 (b) National wilderness areas and national memorial parks which exceed 5,000 

# 20 acres in size; 

# and 21 (c) National parks that exceed 6,000 acres in size. 22 (2) Any other area, unless otherwise specified in the legislation creating the area, is 23 designated Class 

# II but may be redesignated as provided in 40 C.F.R 51.166(g).

19

## 1 (3) The visibility protection requirements ofthis administrative regulation shall apply 2 onlyto sourcesthat may impacta mandatory Class Ifederal area. 3 (4) The following areas may be redesignated only as Class I 

## or II: 

## 4 (a) An area which as ofAugust 7, 1977, exceeded 10,000 acres in size and was a 5 national monument, a national primitive area, a national preserve, a national 6 recreational area, a national wild and scenic river, a national wildlife refuge, a national 7 lakeshore or seashore; and 

## 8 (b) A national park or national wilderness area established after August 7, 1977, 9 which exceeds 10,000acres in size. 

## 10 Section 10. Protection of Visibility. (1) New source review; applicability and 

# 11 exemptions. 

## 12 (a) A stationary source or modification to which this section applies shall not begin 13 actual construction without a permit that states the stationary source or modification 14 shall meetthe requirements ofthis section. 

## 15 (b) This section shall applyto construction ofa new major stationary source or major 16 modification that will be constructed in an area designated as nonattainment under 42 

## 17 U.S.C. 7407(d)(1)(A)(i) and potentially have an impacton visibility in a Class Iarea. 18 (c) This section shall apply to a major stationary source or major modification for 19 each pollutant subject to regulation under 42 U.S.C. 7401 to 7626 that it will emit, 20 except as provided in paragraphs (d) and (e) ofthis subsection. 21 (d) This section shall not apply to a particular major stationary source or major 22 modification if: 23 1. The source or modification is a nonprofit health or nonprofit educational institution

20

## 1 or a major modification will occur at the institution, and the Governor of the 

## 2 Commonwealth requests that it be exemptfrom the requirements ofthis section; and 3 2. The source is a portable stationary source that has previously received a permit 

## 4 underthis section and will be temporarily relocated; and 5 (a) The emissions from the source will not exceed the allowable emissions; 6 b. The emissions from the source will not impact a Class Iarea or an area where an 

## 7 applicable increment is known to be violated; and 8 c. Reasonable notice is given to the cabinet prior to the relocation, identifying the 9 proposed new location and the probable duration of operation at the new location. The 

## 1

0 notice shall be given to the cabinet not less than ten (10) days in advance of the 11 proposed relocation unless a different time duration is previously approved by the 12 cabinet pursuantto this section. 13 (e) This section shall not apply to a major stationary source or major modification 14 with respect to a particular pollutant, ifthe allowable emissionsofthat pollutantfrom the 15 source, orthe net emissions increase ofthat pollutantfrom the modification: 16 1. Will not impact aClass Iarea; 17 2. Will not impact an area where an applicable increment is known to be violated; 

## 18 and 19 3. Will be temporary. 20 (2) Visibility impact analyses. The owner or operator of a source shall provide an 21 analysis of the impairment to visibility that will occur in a Class I area as a result ofthe 22 source or modification and general commercial, residential, industrial, and other growth 23 associated with the source or modification.



## 21

## 1 (3) Federal land manager notification. 2 (a) The federal land manager and the federal official charged with direct 3 responsibilityfor management of Class Iareas shall have an affirmative responsibilityto 

## 4 protect the visibility and other air quality related values of the Class I lands and to 5 consider, in consultation with the cabinet, 

## if a proposed source or modification will have 

# 6 

# an adverse impacton these values. 7 (b) The cabinet shall provide written notification to all affected federal land 8 managers and to the federal official charged with direct responsibility for management 9 of lands within the Class Iarea ofa permit application oran advanced notice ofa permit 10 

# application for a proposed new major stationary source or major modification that may 

## 11 affectvisibility in aClass Iarea. The notification shall: 12 1. Include acopy ofall information relevant to the permit application; 13 2. Be submitted pursuant to this paragraph within thirty (30) days of receipt of the 14 permit application or advanced notice of permit application and at least sixty (60) days 15 priorto a public hearing on the application for apenmitto construct; and 16 3. Include an analysis of the proposed source's anticipated impacts on visibility in a 

## 17 Class Iarea. 18 (c)1. The cabinet shall consider an analysis by the federal land manager, provided 19 within thirty (30) days of the notification and analysis required by paragraph (b) of this 20 subsection, that the proposed new major stationary source or major modification may 

## 21 have an adverse impact on visibility in a Class Iarea. 

## 22 2. Ifthe cabinet finds that the analysis does not demonstrate, to the satisfaction of 23 the cabinet, that an adverse impact on visibilitywill result in the Class Iarea, the cabinet

22

## 1 shall, in the public hearing notice required in 401 KAR 52:100, either explain that 2 decision or give notice as to where the explanation may be obtained. 

## 3 (d) Adverse impact on visibility as it applies to paragraph (c) ofthis subsection shall 4 be determined on a case-by-case basis, taking into account the geographic extent, 

## 5 

# intensity, duration, frequency, and time of visibility impairments, and how these factors 

## 6 correlate with the times ofvisitor use ofthe Class Iarea, and the frequency and time of 7 natural conditions that reduce visibility. 

# 8 (4) Public participation. The cabinet shall follow the applicable procedures of 401 9 KAR 52:100 in processing applications under this section and shall follow the 10 procedures at 40 C.F.R. 52.21(r), effective July 1, 2009, to the extent that the 11 procedures of401 KAR 52:100 do not apply. 12 (5) National visibillly goal. 13 (a) The cabinet shall only issue permitsto those sources forwhich emissionswill be 14 consistent with making reasonable progress toward the national goal of preventing 15 future, and remedying existing, impairment ofvisibility.in Class Iareas which impairment 

## 16 results from manmade air pollution. 17 (b) In making the decision to issue a permit, the cabinet shall consider: 18 1. The costs ofcompliance; 19 2. Thetime necessary for compliance; 20 3. The energ'y and non-air qualityenvironmental impacts of compliance; and 

## 21 4. The useful life ofthe source. 22 (6) Monitoring. 23 (a) The cabinet may require monitoring of visibility in a Class I area near the

23

# 1 proposed new stationary source or major modification using human observations, 2 teleradiometers, photographic cameras, nephelometers, fine particulate monitors, or 

## 3 otherappropriate methods as specified bythe U.S. EPA 4 (b) The monitoring method selected shall be determined on acase-by-case basis by 5 the cabinet 6 (c) The cabinet shall not undertake visibility monitoring in a Class Iarea without the 7 approval ofthe federal land manager. 8 (d) Data obtained from visibility monitoring shall be made available to the cabinet, 9 thefe.deralland manager, and the U.S. EPA, upon request 10 Section 11. Plant-wide Applicability Limit Provisions. The cabinet may approve the 11 use of an actuals PAL (PAL) for an existing major stationary source if the PAL meets 12 the requirements ofthis section. 

## 13 (1) General provisions. 14 (a) An owner or operator may execute a project withouttriggering major NSR, ifthe 15 

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

## 16 requirements in this section, and complies with the PAL permit If these conditions are 17 met, a project: 18 1. Shall not be considered a major modification for the PAL pollutant; 19 2. Shall not have to be approved through Kentucky's major NSR program; and 20 3. Shall not be subject to the provisions of Section 7(4) of this administrative 21 regulation concerning restrictions on relaxing enforceable emissions limitations that the 

## 22 majorstationary source used to avoid applicability ofthe major NSR program. 23 (b) Except as provided under subparagraph (1)(a)3 of this section, the major

24

## 1 stationary source shall continue to comply with all applicable federal or state 2 

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

## 3 established priorto the effective date ofthe PAL. 4 (c) The cabinet shall not allow a PAL for VOC or NOx for any major stationary 5 

# source located in an extreme ozone nonattainment area. 

## 6 (2) Permit application requirements. The owner or operator of a major stationary 7 source shall submit the following information to the cabinet for approval as part of an 8 application for a permit or permit revision requesting a PAL: 9 (a) A list of all emissions units at the source designated as small, significant or 

## 10 major, based on their potential to emit; 

## 11 (b) Identification of the federal and state applicable requirements, emissions 12 limitations, and work practice requirements that applyto each emissions unit; 

## 13 (c) Calculations of the baseline actual emissions for the emissions units with 14 supporting documentation; and 15 (d) The calculation procedures the owneror operator proposes to use to convert the 16 

# monitoring system data to monthly emissions and annual emissions based on a twelve 17 (12) month rolling totalfor each month as required bysubsection (12)(a) ofthis section. 18 (3) Establishing a PAL. The cabinet shall establish a PAL at a major stationary 

# 19 source in afederally enforceable permit pursuantto the requirements ofthis section. 20 (a) The PAL shall impose an annual emissions limitation in tons per year that is 21 enforceable as a practical matterforthe entire major stationarysource, in which: 22 1. For each month during the PAL effective period after the first twelve (12) months 23 of establishing a PAL, the owner or operator shall demonstrate that the sum of the

25

## 1 monthly emissions from each emissions unit underthe PALforthe previous twelve (12) 2 consecutive months is less than the PAL as a twelve (12) month average, rolled 3 monthly; and 4 2. For each month during the first eleven (11) months from the PAL effective date, 5 the owner or operator shall demonstrate that the sum of the preceding monthly 6 

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

## 7 than the PAL; 8 (b) The PAL shall be established in a PAL permitthat: 9 1. Meets the public participation requirements in subsection (4) ofthis section; and 10 2. Contains all the requirements of subsection (6) ofthis section; 11 (c) A PAL shall include fugitive emissions, to the extent quantifiable, from all 12 emissions units that emit or have the potential to emit the PAL pollutant at the major 

# 13 stationary source; 

## 14 (d) Each PAL shall regulate emissions ofonly one (1) pollutant; 15 (e) Each PAL shall have a PAL effective period often (10) years; 16 

# (f) The owner or operator of a major stationary source with a PAL shall comply with 17 the monitoring, recordkeeping, and reporting requirements ofsubsections (11) to (13) of 18 this section for each emissions unit underthe PALthrough the PAL effective period; and 19 (g) Emissions reductions of a PAL pollutant that occur during the PAL effective 20 period shall not be creditable as decreases for offsets under 40 C.F.R. 51.165(a)(3)(ii), 21 unless: 22 1. The level ofthe PAL is reduced bythe amountofthe emissions reductions; and 23 2. The reductions would be creditable in the absence ofthe PAL.

26

## 1 (4) Public participation requirements. PALs for existing major stationary sources 2 shall be established, renewed, or increased pursuant to this subsection and the 

## 3 applicable procedures of 401 KAR 52:100 for issuing permits or permit revisions. The 4 cabinet shall: 5 (a) Provide the public with notice ofthe proposed approval of a PAL permit with at 6 least athirty (30) day period for submittal ofpublic comment; and 7 (b) Address all material comments before taking final action on a PAL permit or 

# 8 permit revision. 

## 9 (5) Setting the ten (10) year PAL level. 10 (a) The PAL level for a major stationary source shall be the sum of the baseline 11 actual emissions of the PAL pollutant for each emissions unit at the source during the 12 chosen twenty-four (24) month period plus the applicable significant level for the PAL 13 pollutant under the definition for "significant" in 401 KAR 51:001, Section 1 or under 42 14 U.S.C. 7401-7671q, whichever is lower. 15 (b) In establishing a PAL level for a PAL pollutant, only one (1) consecutive twenty16 four (24) month period shall be used to determine the baseline actual emissions for all 17 existing emissions units. 

## 18 (c) A different consecutive twenty-four (24) month period may be used for each 19 different PAL pollutant. 20 (d) Emissions associated with units that were permanently shut down after the 21 chosen twenty-four (24) month period shall be subtracted from the PAL level. 22 (e) Emissions from units for which actual construction began after the twenty-four 23 (24) month period shall be added tothe PAL level in an amount equal to the potential to

27

## 1 emit ofthe units. 2 

# (f) The cabinet shall specify a reduced PAL level in the PAL permit to become 3 effective on the future compliance date of any applicable federal or state regulatory 4 requirementthat the cabinet is aware of priorto issuance ofthe PAL permit. 

## 5 (6) Contents of the PAL permit. The PAL permit shall contain the following 6 information: 

## 7 (a) The PAL pollutant and the applicable source-wide emissions limitation in tons 8 peryear; 9 (b) The PAL permit effective date and the expiration date of the PAL or PAL 10 effective period; 11 (c) Specification in the PAL permit that if a major stationary source owner or 12 operator applies to renew a PAL under subsection (9) ofthis section before the end of 13 the PAL effective period, the PAL shall remain in effect until a revised PAL permit is 14 issued bythe cabinet; 15 

# (d) A requirement 

## that emissions calculations for compliance purposes include 

## 16 emissions from startups, shutdowns, and malfunctions; 17 (e) A requirement that, once the PAL expires, the major stationary source shall be 18 subjectto the requirements ofsubsection (8) ofthis section; 19 

# (f) The calculation procedures that the major stationary source owner or operator 20 shall use to convert the monitoring system data to monthly emissions and annual 21 emissions based on a twelve (12) month rolling total for each month as required by 22 subsection (12)(a) ofthis section; 23 (g) 

## A requirement 

## that the major stationary source owner or operator shall monitor



# 28

## 1 all emissions units in accordancewith the provisions in subsection (12) ofthis section; 2 (h) A requirement that the owner or operator shall retain the records required under 3 subsection (12) ofthis section on site. Records may be retained in an electronic format; 

## 4 (i) A requirement for the owner or operatorto submit, by the reports required under 5 subsection (13) ofthis section bythe required deadlines; and 6 U) 

## Any requirements necessaryto implement and enforce the PAL. 7 (7) PAL effective period and reopening ofa PAL permit. 8 (a) A PAL effective period shall be ten (10) years. 9 (b) The cabinet shall reopen a PAL permitto: 1

0 1. Correcttypographical orcalculation errors made in setting the PAL; 11 2. Reflect a more accurate determination of emissions used to establish the PAL; 

## 12 3. Reduce the PAL ifthe owner or operator of the major stationary source creates 13 creditable emissions reductions for use as offsets under40 C.F.R. 51.165(a)(3)(ii); or 14 4. Revise the PAL to refiect an increase in the PAL according to subsection (10) of 15 this section. 16 (c) The cabinet may reopen the PAL permit, during the PAL effective period, to: 17 1. Reduce the PAL to reflect newly applicable federal requirements with compliance 18 dates afterthe PAL effective date; 19 2. Reduce the PAL consistentwith anyother requirement: 20 a. That is enforceable as a practical matter; and 21 b. That may be imposed on the majorstationarysource underthe SIP; and 22 3. Reduce the PAL if the cabinet determines that a reduction is necessary to avoid 23 causing or contributing to:

29

## 1 a. A National AmbientAir Quality Standard (NAAQS) or PSD incrementviolation; or 2 b. An adverse impact on visibility or another air quality related value that has been 3 identified for afederal Class I area by afederal land manager and for which information 4 is availableto the general public. 5 (d) All permit reopenings shall be carried out under the public participation 6 

## requirements of subsection (4) 

## of this section except for permit reopenings to correct 7 typographical orcalculation oferrors that dn not increasethe PAL leveL 8 (8) Expiration ofa PAL A PALthat is not renewed shall expire at the end ofthe PAL 9 effective period and the requirements ofthis subsection shall then apply. 10 (a) 

## Each emissions unit, or each group of emissions units, that existed under the 

## 11 PAL shall comply with an allowable emissions limitation under a revised permit 12 established as follows: 13 1. An owner or operator of a major stationary source using a PAL shall submit a 14 proposed allowable emissions limitation for each emissions unit, or each group of 

## 15 emissions units, by distributing the PAL allowable emissions for the major stationary 

## 16 source among 

## each ofthe emissions units that existed underthe PAL. 17 a. This proposal shall be submitted to the cabinet at least six (6) 

## months before the 18 expiration of the PAL permit but not sooner than eighteen (18) months before permit 19 expiration. 20 b. If the PAL has not yet been adjusted for an arplicable requirement that became 21 effective during the PAL effective period, as required under subsection (9)(e) of this 22 section, distribution of allowable emissions shall be made as if the PAL has been 23 adjusted.

30

## 1 2. The cabinet shall provide the date and procedure the owner or operator shall use 2 to distribute the PAL allowable emissions. 

# 3 3. The cabinet shall issue a revised permit incorporating allowable limits for each 4 emissions unit, or each group of emissions units, as the cabinet determines is 

## 5 appropriate. 6 (b) Each emissions unit shall comply with the allowable emissions limitation on a 7 twelve (12) month rolling basis. The cabinet mayapprove the use ofmonitoring systems 8 other than GEMS, GERMS, PEMS, or GPMS if the**a~ernate** 

## monitoring system 9 demonstrates compliancewith the allowable emissions limitation. 

## 10 (c) The source shall continue to comply with asource-wide, multiunit emissions cap 11 equivalent to the level of the PAL emissions limitation until the cabinet issues the 12 revised permit incorporating allowable limits for each emissions unit or each group of 

## 13 

# emissions units. 14 (d) A major modification at the major stationary source shall be subject to major 15 NSR requirements. 16 (e) The major stationary source owner or operatorshall continue to comply with any 17 state or federal applicable requirements eliminated by the PAL that applied during or 18 before the PAL effective period, except for those emissions limitations established 

## 19 pursuantto Section 7(4) ofthis administrative regulation. 20 (9) Renewal ofa PAL. 21 (a) Public participation requirements. 22 1. The cabinet shall follow the public participation procedures specified

.in 23 subsection (4) of this section in approving a request to renew a PAL for a major



# 31

## 1 stationary source. 

## 2 2. The cabinet shall provide awritten rationale for the proposed PAL level for public 3 review and comment. 

## 4 3. Any person may propose a PAL level for the source for consideration by the 5 cabinet during the public review period. 

## 6 (b) Application deadline. 7 1. A major stationary source owner or operator shall submit an application for 

## 8 renewal of a PAL at least six (6) months before the date of permit expiration but not 9 earlierthan eighteen (18) months before permitexpiration. 10 2. The deadline for application submittal shall ensure thatthe permit shall not expire 11 beforethe permit is renewed. 12 3. If a complete application for renewal is submitted within the timeframe specified in 

## 13 subparagraph 1 of this paragraph, the PAL shall continue to be effective until the 14 revised permitwith the renewed PAL is issued. 15 (c) Application requirements. The application to renew a PAL permit shall contain: 16 1. The information required in subsection (2) ofthis section; 17 2. A proposed PAL level; 18 3. The sum of the potential to emit of all emissions units under the PAL with 19 supporting documentation; and 20 4. Any other information the owner or operator wishes the cabinet to consider in 

## 21 determining the appropriate level to renewthe PAL. 22 (d) PAL adjustment. 23 1. A PAL shall not exceed the source's potential to emit. The cabinet shall adjustthe

32

## 1 PAL downward to a level not greater than the potential to emit ifasource's potential to 2 emit has declined belowthe PAL level. 3 2. The cabinet may renew the PAL at the same level as the current PAL without 4 considering thefactors specified in subparagraph 3ofthis section, ifthe emissions level 5 calculated according to subsection (5) of this section is equal to or greater than eighty 6 (80) percent ofthe PAL level; or 7 3. The cabinet may setthe PAL at a level that is determined to be: 8 a. 

## More representative ofthe source's baseline actual emissions; or 

## 9 b. Appropriate consideringthe following factors: 10 (i) Airquality needs; 11 (ii) Advances in control technology; 12 (iii) Anticipated economic growth in the area ofthe source; 13 (iv) The cabinet's goal ofpromoting voluntary emissions reductions; or 14 (v) Other factors as specifically identified by the cabinet in its written rationale for 15 setting the PAL level. 16 4. The cabinet shall not approve a renewed PAL level higherthan the current PAL, 17 unless the major stationary source has complied with the provisions of subsection (10) 18 ofthis section. 19 (e) The PAL shall be adjusted in conjunction with the PAL permit renewal orTitle V 20 permit renewal, whichever comes first, 

## if: 

## 21 1. The compliance date for a state orfederal applicable requirement that applies to 22 the PAL source occurs during the PAL effective period; and 23 2. The cabinet has not already adjusted forthe requirement.

33

## 1 (10) Increasing a PAL during the PAL effective period. The cabinet may increase a 2 PAL emissions limitation during the PAL effective period if the major stationary source 3 complies with the provisions ofthis subsection. 

## 4 (a) Application procedures. To request an increase in the PAL limit for a PAL major 5 modification, the owner or operator of the major stationary source shall submit a 

## 6 complete application, which shall include: 7 

# t Identification of the emissions units contributing to the increase in emissions for 

## 8 the PAL major modification; 9 2. Demonstration that increased PAL, as calculated in paragraph (c) of this 10 subsection exceedsthe PAL, and: 11 a. The level ofcontrol that results from BACTequivalent controls on each significant 12 or major emissions unit shall be determined by conducting a new BACT analysis when 13 the application is submitted, unless the emissions unit is currently required to comply 14 with a BACT or LAER requirement that was established within the preceding ten (10) 15 years. 16 b. If an emissions unit currently complies with BACT or LAER, the assumed control 17 level forthat emissions unit shall be equal to the current level ofBACT or LAER forthat 18 emissions unit; and 

## 19 3. A statement that the increased PAL level shall be effective on the day any 20 

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

## 21 begins to emitthe PAL pollutant. 22 (b) NSR permit and compliance requirement. The owner or operator shall obtain a 23 major NSR permitfor all emissions units contributing to the increase in emissions for the



# 34

## 1 PAL major modification. 2 1. A significant level shall not apply in deciding for which emissions units a major 3 NSR permit shall be obtained; and 4 2. Emissions units that obtain a major NSR permit shall comply with any emissions 5 

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

## 6 become subjectto the PAL orshall continue to be subjectto the PAL. 7 (c) Calculation of increased PAL. The cabinet shall calculate the new PAL as the 8 

# sum of the allowable emissions for each modified or new emissions unit, plus the sum 9 of the baseline actual emissions of the significant and major emissions units assuming 

## 1

0 application of BACT equivalent controls, plus the sum ofthe baseline actual emissions 11 ofthe small emissions units. 

## 12 

# (di Public notice requirement. The public notice requirements of subsection (4) of 13 this section shall be followed during PAL permit revision for an increased PAL level. 14 (11) Monitoring requirements for PALs. 15 (a) General requirements. 16 1. Each PAL permit shall contain enforceable requirements for the chosen 17 monitoring system that accurately determines plant-wide emissions ofthe PAL pollutant 

# 18 in terms ofmass per unit oftime; 

## 19 2. A monitoring system authorized for use in the PAL permit shall be: 20 a. Approved bythe cabinet pursuantto this subsection; and 21 b. Based on sound science and meet generally-acceptable scientific procedures for 

## 22 data quality and manipulation; 23 3. The data generated by a monitoring system shall meet minimum legal



# 35

## 1 requirements for admissibility in ajudicial proceeding to enforcethe PAL permit; 2 4. The PAL monitoring system shall employ one (1) or more ofthe four (4) general 3 monitoring approaches meeting the minimum requirements set forth in paragraph (b) of 

## 4 this subsection; 5 5. The cabinet may approve an alternative monitoring approach that meets the 6 requirements ofsubparagraphs 1to 3ofthis paragraph; and 7 6. Failure to use a monitoring system that meets the requirements of this section 

## 8 shall renderthe PAL invalid. 9 (b) Minimum performance requirements for approved monitoring approaches. If 

## 10 conducted in accordance with the minimum requirements in paragraphs (c) to (i) ofthis 11 subsection, the following shall be acceptable monitoring approaches: 12 1. Mass balance calculations for activities using coatings or solvents; 

## 13 2. GEMS; 14 3. CPMS or PEMS; and 15 4. Emissionsfactors. 16 

## (c) Mass balance calculations. An owner or operator using mass balance 17 calculations to monitor PAL pollutant emissions from activities using coatings or 

## 18 solvents shall: 19 1. Provide a demonstrated means of validating the published content of the PAL 20 pollutant contained in or created 

# by all materials used in or at the emissions unit; 

## 21 2. If it cannot be accounted for in the process, assume thatthe emissions .unit emits 22 all ofthe PAL pollutant contained in or created by any raw material or fuel used in or at 23 the emissions unit; and



# 36

## 1 3. Ifthe vendor ofthe material orfuel from which the pollutant originates publishes a 2 range, use the highestvalue ofthe published range ofpollutant content to calculate the 3 PAL pollutant emissions, unless the cabinet determines there is site-specific data or a 4 site-specific monitoring program to support another pollutant contentwithin the range. 5 (d) CEMS. An owner or operator using CEMS to monitor PAL pollutant emissions 6 shall meetthe following requirements: 

## 7 1. CEMS shall comply with applicable Performance Specifications found in 40 8 C.F.R. Part 60, AppendixA; and 9 2. CEMS shall sample, analyze, and record data at least every fifteen (15) minutes 1

0 while the emissions unit is operating. 

## 11 (e) CPMS or PEMS. An owner or operator using CPMS or PEMS to monitor PAL 12 pollutant emissions shall meetthe following requirements: 

## 13 1. The CPMS or the PEMS shall be based on current site-specific data 14 demonstrating a correlation between the monitored parameter and the PAL pollutant 15 

# emissions across the range ofoperation ofthe emissions unit; and 16 2. While the unit is operating, each CPMS or PEMS shall sample, analyze, and 17 record data at least every fifteen (15) minutes, or at another less frequent interval 18 approved bythe cabinet. 19 (f) 

## Emissions factors. An owner or operator using emissions factors to monitor PAL 20 pollutantemissions shall meetthe following requirements: 21 1. All emissions factors shall be 

## adjusted, ifappropriate, to accountforthe degree of 22 uncertaintyor limitations in the factors' development; 23 2. The emissions unit shall operate within the designated range of use for the



# 37

## 1 emissions factor, ifapplicable; and 2 3. The owner or operator of a significant emissions unit that relies on an emissions 

## 3 factorto calculate PAL pollutant emissions shall conduct validation testing to determine 4 a site-specific emissions factor within six (6) months of PAL penmit issuance if the 5 cabinet determines thatthe testing is required and technically practicable. 6 (g) A source owner or operator shall record and report maximum potential emissions 7 without considering enforceable emissions limitations or operational restrictions for an 8 emissions unit during any period of time there is no monitoring data, unless another 9 method for determining emissions during the periods is specified in the PAL permit. 10 (h) If an owner or operator of an emissions unit cannot demonstrate a correlation 

## 11 between the monitored parameters and the PAL pollutant emissions rate at all operating 12 points of the emissions unit, as an alternative to the requirements in paragraphs (c) to 13 (g) ofthis subsection, in conjunction with permit issuance the cabinet shall: 14 1. Establish default values for determining compliance with the PAL based on the 15 highest potential emissions reasonably estimated at operating points if a correlation 16 cannot be demonstrated; or 

## 17 2. Ifthere is not a correlation between monitored parameters and the PAL pollutant 18 emissions, determine that operation ofthe emissions unit during operating conditions is 

## 19 aviolation ofthe PAL. 20 (i) Revalidation. All data used to establish the PAL pollutant shall be revalidated 21 through perionmance testing or other scientifically valid means approved by the cabinet. 22 Validation testing shall occur at least once every five (5) years after issuance of the 23 PAL.



# 38

## 1 (12) Recordkeeping requirements. 2 (a) The PAL permit shall require an owner or operatorto retain a copy ofall records 3 necessary to determine compliance with any requirement ofthis section and ofthe PAL, 

# 4 including a determination of each emissions unit's twelve (12) month rolling total 5 emissionsforfive (5) years from the date ofthe determination. 6 (b) The PAL permit shall require an owner or operator to retain a copy of the 7 following records forthe duration ofthe PAL effective period plus five (5) years: 8 1. A copy of the PAL permit application and any applications for revisions to the 9 PAL; and 10 2. Each annual certification of compliance pursuant to Title 

# Vand the data used to 11 certify the compliance. 12 (13) Reporting and notification requirements. The owner or operator shall submit 13 semi-annual monitoring reports and prompt deviation reports to the cabinet in 

## 14 accordance with 401 KAR Chapter 52 that meetthe following requirements: 15 (a) Semiannual report. The semiannual report shall be submitted to the cabinet 16 within thirty (30) days ofthe end ofeach reporting period and shall contain: 17 1. The identification ofowner and operatorand the permit number; 18 2. Total annual emissions, in tpy, based on atwelve (12) month rolling total foreach 19 month in the reporting period recorded pursuantto subsection (12)(a) ofthis section; 20 3. All data used in calculating the monthly and annual PAL pollutant emissions, 21 including anyquality assurance orquality control data; 22 

# 4. A list of any emissions units modified or added to the major stationary source 23 during the preceding six (6) 

## month period;

39

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

## 2 other than the time associated with zero and span calibration checks, and any 3 corrective action following a deviation; 4 6. A notification of permanent or temporary shutdown of any monitoring system 

## 5 including: 6 a. The reason for the shutdown; 

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

# 8 be replaced with another monitoring system; 9 c. If applicable, a statement that the emissions unit monitored by the monitoring 10 system continued to operate without the monitoring system·; and 

## 11 d. The calculation of the emissions of the pollutant or the number determined 12 according tosubsection (11)(g) ofthis section that is included in the permit; and 13 7. 

# A signed statement by the responsible official, as defined by 401 

# KAR 51:001, 14 Section 1(210), certifying the truth, accuracy, and completeness of the information 15 provided in the semiannual report. 16 (b) Deviation report. The major stationary source owner or operator shall submit 17 reports of any deviation or exceedance of the PAL requirements, including periods 18 monitoring is unavailable. 

## 19 1. 

# A report submitted pursuant to 40 

# C.F.R 70.6(a)(3)(iii)(B) shall satisfy this 20 deviation reporting requirement; 

## 21 2. The deviation report shall be submitted within the time limits prescribed by the 22 applicable program implementing 40 

# C.F.R 70.6(a)(3)(iii)(B); 23 3. The deviation report shall contain thefollowing information:

40

## 1 a. The identification ofthe owner, the operator, and the permit number; 2 b. The PAL requirement that experienced the deviation orthatwas exceeded; 3 

# c. Emissions resulting from the deviation orthe exceedance; and 4 d. A signed statement by the responsible official, as defined by 401 KAR 51:001, 5 Section 1(210), certifying the truth, accuracy, and completeness of the infonmation 6 provided in the report. 7 (c) Revalidation results. The owner or operator shall submit to the cabinet the 8 results ofany revalidation test or method within three (3) months after completion ofthe 9 test or method. 10 (14) Transition requirements. 11 (a) After the U.S. EPA approves the Kentucky SIP revisions forthe PAL provisions 12 published at 67 Fed. Reg. 80186, December 31, 2002, the cabinet shall only issue a 13 PALthat complies with the requirements ofthis section. 14 (b) The cabinet may supersede a PAL thatwas established before August 10, 2006, 15 with a PAL that complies with the requirements ofthis administrative regulation.

41

## Dale 

# I L a ard K. Peters, Secretary Energy and Environment Cabinet



# 42

## PUBLIC HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this administrative regulation shall be held on July 24, 2012, at 10:00 a.m. (local time) in Conference Room 201 Bonthe first fioor ofthe Division forAir Quality at 200 FairOaks 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 whowishes to be heard shall be given an opportunity to comment on the proposed administrative regulation. Ifyou do notwish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted until close of business on July 31, 2012. Send written notification of intent to be heard at the public hearing or written**~omments** 

## on the proposed administrative regulation to the contact person_ listed below. The hearing facility is accessible to persons with disabilities. Requests for reasonable accommodations, including auxiliary aids and services necessary to 

## participate in the hearing, may be made to the contact person at least five (5) workdays prior to the hearing. CONTACT PERSON: Laura Lund, Environmental Technologist Ill, Division for Air Quality, 1'1

## Floor, 200 Fair Oaks Lane, Frankfort, Kentucky 40601, telephone (502) 564- 3999, ext. 4428, fax (502) 564-4666, and electronic mail Laura.Lund@ky.gov.

43

## REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT Administrative Regulation#: 401 KAR 51:052 Contact person: Laura Lund, Environmental Technologist Ill (1) Provide a briefsummary of: (a) Whatthis administrative regulation does: This administrative regulation 

## establishes air quality permitting requirements for the construction or 

## modification of major stationary sources located within, or impacting upon, areas where the national ambient air quality standards have not been 

## demonstrated to be attained. (b) The necessity of this administrative regulation: This administrative regulation is necessary to ensure that the addition of stationary source 

## emissions 

# will not contribute significantly to Kentucky's achievement of reasonable further progress of a national ambient air quality standard for 

## an area currently not attaining that standard. This administrative regulation provides for economic growth in a nonattainment area without 

## impeding Kentucky's progress towards cleaner air and attainment of

# thEi applicable national ambient airqualitystandards (NAAQS). (c) How this administrative regulation conforms to the content of the authorizing statutes: KRS 224.10-100(5) requires the Cabinet to provide forthe prevention, abatement, and control ofair pollution. 42 U.S.C 7503 requires air quality permits issued to sources located or impacting a 

## nonattainment area to include provisions for the attainment ofthe national 

## primary ambient air quality standards and reasonable further progress of the air quality, which are contained in this administrative regulation. This regulation conforms to the statutes because it 

## is no more stringent than thefederal mandate. (d) How this administrative regulation currently assists or will 

## assist in the effective administration of the statutes: This administrative regulation provides the requirements for issuing permits to stationary 

## sources in areas where the NAAQS have not been·attained. (2) 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 incorporates significant impact levels (SILs) for PM2.s· 

## (b) The necessityofthe amendmenttothis administrative regulation: The PM2.5 

## SlLs included in this amendment are necessary to ensure consistency between state and federal New Source Review (NSR) permitting programs. 

## (c) How the amendment conforms 

# to the content of the authorizing statutes: KRS 224.10-100(5) requires the Cabinet to provide for the prevention, abatement, and control of air pollution. 42 U.S.C 7503 requires that permits issued in a nonattainment area contain provisions for



## 44

## the attainment of the national primary ambient air quality standards and reasonable further progress of the air quality, which are contained in this administrative regulation. (d) How the amendment will assist in the effective administration of statutes: This amendment incorporates SILs for PM,.,, as required by 40 

# C.F.R. 51.165. (3) Listthetype and numberofindividuals, businesses, organizations, orstate and local governments affected 

# by this administrative regulation. Any new 

## major stationary source or any project at an existing major stationary source that commences construction after September 22, 1982, and locates in an area 

## designated nonattainment is affected by this administrative regulation. This regulation does not affect sources in Jefferson County, which are regulated 

## under the Louisville Metro Air Pollution Control District. There are currently 6 counties in Kentucky (not including Jefferson County) classified as nonattainment 

## for the 

# 1997 annual particulate matter NAAQS (Boone, Boyd, Bullitt, Campbell, Kenton, and a portion of Lawrence). This amendment affects new major stationary sources or new major modifications locating in areas that have 

## attained the NAAQS, but cause impacts that will exceed the amounts of PM,., listed in an area that does notorwill not attain the NAAQS. (4) Provide an assessment of howthe 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 permitting of PM2.5 

## and require affected facilities to provide data on their PM2.5 

## emissions. In the past, DAQ has used PM10 as a surrogate for PM,,5 

## due to inadequate test methods and the lack of implementation elements. However, the U.S. EPA has determined that the appropriate data and technology are now available and the use 

# of the PM1o surrogacy policy is no longerallowed. (a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment: Affected facilities' permit applications will be required to provide emissions data for PM2.5 

## and demonstrate that the project's emissions do not cause or contribute to a violation of the PM2.s 

## NAAQS. (b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3): Affected facilities will incur the cost necessary to obtain a permit that includes an evaluation of PM2.5

## emissions. 

## (c) As a result of compliance, what benefits will accrue to the entities identified in question (3): When operating in compliance, the affected facilities will not be subject to enforcement actions and penalties. Furthermore, compliance with the Clean Air Act requirements preserves 

## and improves airqualitythroughout the Commonwealth.



# 45

## (5) Provide an estimate of how much it will cost the administrative body to implementthisadministrative regulation: 

## (a) Initially: The Cabinet will not incur any additional costs for the implementation ofthis administrative regulation. 

## (b) On a continuing basis: There will not be any additional continuing costs forthe implementation ofthis administrative regulation. 

## (6) What is the source ofthe funding to be used for the implementation and enforcement of this administrative regulation: The Cabinet's current 

## operating budget will be used for the implementation and enforcement of this administrative regulation. 

## (7) Provide an assessment of whether an increase in fees or funding will be 

## "necessary to implement this administrative reguJation, 

# if new, or bY the 'change if 

## it is an amendment. No increase in fees or funding is necessary to implementthis administrative regulation amendment. 

## (8) State whether or notthis administrative regulation established any fees or directly or indirectly increased any fees. This administrative regulation does notestablish, nordirectlyor indirectly increase, any fees. 

## (9) TIERING: Is tiering applied? Yes. This administrative regulation only applies to new major stationary sources, or an existing major stationary source with a project, that commences construction after September 22, 1982, and is located or impacting upon an area designated nonattainment



# 46

## FEDERAL MANDATE ANALYSIS COMPARISON 1. Federal statute or regulation constituting the federal mandate. As a SIPapproved state for the NSR program under 40 CFR 51.165, recent changes in the federal NSR program make 

# it necessary to revise this regulation to maintain federal 

## approvability. 42 U.S.C. 7410(a)(1) requires Kentucky to adopt and submit a plan 

# providing forthe implementation, maintenance, and enforcement ofastandard. 2. State compliance standards. The state compliance standards are found in KRS 224.10-100(5). 

# 3. Minimum or uniform standards contained in the federal mandate. The federal mandate governing nonattainment NSR requires sources subject to this regulation to demonstrate that any construction or modification of a major stationary source will not cause a net increase in air pollution, that emissions resulting from the project

# will not create a delay in attainment of the NAAQS, and that the source will install and use control technology that achieves the lowest achievable emissions rate (LAER). The Clean AirAct is the federal mandate that requires states to have a plan forthe attainment of the national primarY ambient air quality standards and reasonable 

## further progress ofthe air quality. 40 C.F.R. 51.165 is the federal rule that provides authorityforthe Cabinetto establish a plan and promulgate administrative regulation requirements to ensure compliance. 4. Will this administrative regulation impose stricter requirements, or additional ordifferent responsibilities or requirements, than those required by the federal mandate? No. This regulation is no more stringent than the federal rule, codified in 

## 40 C.F.R. 51.165, and no more stringentthan thefederal mandate established by 42 

# u.s.c. 7401-7626. 5. Justification for the imposition of the stricter standard, or additional or different responsibilities or requirements. Stricter standards and requirements are not imposed.



## 47

## FISCAL NOTE ON STATE OR LOCAL GOVERNMENT Administrative Regulation#: 401 KAR 51:052 Contact person: Laura Lund, Environmental Technologist Ill 1. Does this administrative regulation relate 

# to any program, service, or requirements of a state or local government (including cities, counties, fire 

## departments, orschool districts)? Yes. 

# 2. What units, parts ordivisions ofstate or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation? The Division for Air Quality will continue to 

## implement and enforce the New Source Review (NSR) program. Also, state and local governments. constructing or modifying a major stationary source in, ·or impacting upon, an area where the national ambient air quality standards have 

## not been attained will be impacted bythis administrative regulation. 

# 3. Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation. KRS 224.10- 1

00(5), 40 C.F.R. 51.165, and 42 U.S.C. 7401-7671q. 

# 4. Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, 

## counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect. 

## (a) How much revenue willthis administrative regulation generateforthe state or local government (including cities, counties, fire departments, or school districts) for the first year? This administrative regulation generates no revenue. 

## (b) How much revenue will this administrative regulation generate forthestate or local government (including cities, counties, fire departments, orschool 

## districts) for subsequent years? This administrative regulation generates no revenue. 

## (c) How much will it cost to administer this program for the first year? The Cabinet's existing operating budget continues as the source of funding for the implementation ofthis program. 

## (d) How much will it cost 

# to administer this program for subsequent years? There will be no additional costs for administering the program in subsequent 

## yearS. Note: Ifspecific dollar estimates cannot be determined, provide a brief narrative 

## to explainthe fiscal impactsofthe administrative regulation. Revenues 

# (+/w): There is no known effect on current revenues. 

## Expenditures (+/-): There is no known effect on current expenditures. OtherExplanation: There is no furtherexplanation.



# 48

## VOLUME 39, NUMBER 1-JULY 1, 2012 lion ofthe statuies: This administrative regulation amendment will make the requirements for a pesticide sales agent and public health pest control easierto locale and follow. (3) Listthe type and number ofindividuals, businesses, organizations, orstate and local governments affected bythis administrative regulation:: Currently 975 Pesticide Sales agents and 87 Public Health category 8 license holders. Commercial License Pest Control companies operate within the Commonwealth. Approximately 2,430 persons currently hold certifications in structural pest control. (4) Provide an analysis ofhowthe entities identified in question (3) will be impacted by eitherthe implementation ofthis administrative regulation, 

### if new, or by the change, 

### if it is an amendment, including: (a) List the actions that each ofthe regulated entities identified in question (3) will have to lake 

### to comply with this administrative regulation or amendment The individuals will need to take no action.(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3): The KDA believes that no additional costs will be incurred bythe regulated individuals. (c) 

### As a result of compliance, what benefits will accrue to the entities identified in question (3): The individual will 

### be able to find the requirements for a pesticide sales agent in a single location within the regulations. The change makesthe requirements easier to understand. (5) Provide an estimate ofhow much itwill costthe administrative bodyto implementthisadministrative regulation: (a) Initially: No newadditional costs. (b) On a continuing basis: No additional costs. (6) What is the source ofthe funding to be used forthe implementation and enforcement 

### of this administrative regulation: Federal EPAfunds 51% ofthe program, and pesticide product registrationfees fund 49%. (7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulalion, ifnew, or by the change if it is an amendment: No increase in fees orfundingwill be required forthis amended regulation. (8) State whether or not this administrative regulation established any fees or directly or indirectly increased any fees: No fee has been establish directlyorindirectlythroughthis amended regulation. (9) TIERING: Is tiering applied? No. All regulated entities have the same requirements. FISCAL NOTE ON STATE OR LOCAL GOVERNMENT 1. Does this administrative regulation relate to any program, service, or requirements of a state or local government (including cities, counties, firedepartments, orschool districts)?Yes. 2. What units, parts or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation? The Kentucky DepartmentofAgricuHure, Division of Regulation and Inspection. 3. Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation. KRS 2178.050 4. Estimate the effect of this administrative regulation on the**e~enditures** and revenues of a state or local government agency (irlcluding cities, counties, fire departments, or school districts) for the first full yearthe administrative regulation is to be in effect. No fiscal changeswill occur. (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? No fiscal changes will occur. (b) How much revenue**will_.\~is** administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years? No fiscal changeswill occur. (c) How much will 

### it costto administerthis program forthefirst year? No changes in spending will occur. (d) How much will it cost

### to administerthis program forsubsequentyears? Nochanges in spending will occur. Note: Ifspecificdollarestimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation. Revenues(+/-): Expenditures(+/-): Other Explanation:

ENERGYAND ENVIRONMENTCABINET 

### Departmentfor Environmental Protection DivisionforAir Quality (Amendment) 401 KAR 51:001. Definitionsfor401 KAR Chapter51. RELATES TO: KRS 48.010(15)(a), 224.01-010, 224.20-100, 224.20-110, 224.20-120, 40 C.F.R. Chapter I, 50 Appendices A-R, 51.100, 51.121, 51.165, 51.166, 51 Appendix S, 52.920, 53, 60, 60 Appendices A, B, 61, 61 Appendix B, 63AppendicesA-D, 70.2, 75, 82, 96, 42 u.s.c. 7401-7671q STATUTORYAUTHORITY: KRS 224.10-100(5) NECESSITY, FUNCTION, AND CONFORMITY: KRS 224.10- 100(5) requires the cabinet to promulgate administrative regulations for the prevention, abatement, and control of air pollution. This administrative regulation defines the terms used in 401 KAR Chapter 51. The definitions contained in this administrative regulation are not 

### [ReitAeF] more stringent[Rer etAeP.vise GiffeFeRt] than the correspondingfederal definitions. Section 1. Definitions. The definitionswith citations tothe Code of Federal Regulations shall be governed by 40 C.F.R. Parts 50 through 96[, effective July 1, 2010]. (1) "Acid rain emissions limitation" means a limitation on emissions of SO, or NOx imposed by the Acid Rain Program under42 U.S.C. 7651 to 7651o. (2) "Actual emissions": {a) Means the actual rate of emissions of a regulated NSR pollutant from an emissions unit as determined according to the following: 1. Actual emissions as of a particulardate equals the average rate, in tons per year, at which the unit actually emitted the pollutant during a consecutive twenty-four (24) month period, that precedes that date and is representative of normal source operation, unless a different time period is more representative of normal source operation; and 2. The unit's actual operating hours, production rates, and types of materials processed, stored, or combusted during the selectedtime periods are used to calculate actual emissions: (b) Means source-specific allowable emissions for the unit are equivalent to actual emissions ofthe unit ifthe cabinet has made an equivalencydetermination pursuantto 40 C.F.R. 51.166; (c) Means, for an emissions unit that has not begun normal operations on a particular date, the potential to emit ofthe unit on thatdate; and (d) Does notmean: 1. Calculating if a significant emissions increase has occurred; 2. Establishing a PAL under401 KAR 51:017, Section 20. (3) "Actuels PAL" or "PAL" means a plant-wide applicability limit established for a major stationary source based on the baseline actual emissions ofall emissions units at the source that emit or havethe potential toemilthe PAL pollutant. {4) "Adverse impact on Visibility" is defined by 40 C.F.R. 51.301. (5) "Affected facility'' means an apparatus, building, operation, road, or other entity or series ofentities that emits or may emil an aircontaminant intothe outdooratmosphere. (6) "Aircontaminant" is defined by KRS 224.01-010(1). (7) "Airpollutant" means aircontaminant. (8) "Airpollution· is defined by KRS 224.01-010(3). (9) "Air pollution control equipment" means a mechanism, device, or contrivance used to control or prevent air pollution, that is not, aside from air pollution control laws and administrative regulations, vital to production ofthe normal product of the source or to



## - 113

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## VOLUME 39, NUMBER 

## 1-JULY 

## 1,2012 its normal operation. 

### (10) 'Allocate" or "allocation" means the number of 

### NOxallowancesto be creditedto a NOx budget unit. 

### (11) "Allocation period' means each three (3) year period beginning May 1, 2004. 

### (12) "Allowable emissions• means: (a) 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 that restrict the operating rate, hours of operation, or both, and the most stringent ofthe following: 1. The applicable standards codified in 40 C.F.R Parts 60 and 

### 61; 2. The applicable SIP emissions limitations, induding those with a future compliancedate; or 

### 3. The emissions rates specified as a federally enforceable 

### permit condition, includingthose with afuture compliancedate; or (b) For an actuels PAL, the emissions rate of a stationary source calculated considering any emission limitations that are enforceable as a practical matter on the emissions unit's potential toemit, andthe moststringent provision ofparagraph (a)1. through 3. ofthis subsection. (13) "Alteration" means: (a) The installation or replacement of air pollution control equipment ata source; or (b) A physical change in or change in the method of operation of an affected facility that increases the potential to emit a pollutant, to which a standard applies, emitted by the facility or that results in the emission of an air pollutant, to which a standard applies, not previouslyemitted. (14) "Alternative method" is defined by 40 C.F.R. 60.2. For purposes of this definition, "administrator'' means both the U.S. EPAand thecabinel (15) "Ambient air'' means that portion of the atmosphere, external to buildings,towhichthe general publichas access. (16) "Ambient air quality standard" means a numerical expression of a specified concentration level for a particular air contaminant and the time averaging interval overwhich 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. (17) "ANSI" meansAmerican National Standards Institute. (18) "AOAC" means Association of Official Analytical Chemists.(19) "ASTM" means American Society for Testing and Materials. (20) "Baseline actual emissions" means the rate ofemissions, in tons peryear, ofa regulated NSR pollutant, that: (a) For an existing electric utility steam generating unit (EUSGU), the unitactually emitted during any consecutivetwentyfour (24) month period selected bythe owner oroperatorwithin the five (5) year period immediately preceding the date the owner or operator begins actual construction ofthe project, unless a different twenty-four (24) month time period is more representative of normal source operation. 1. The rate is an average that: a. Includes fugitive emissions, 

### to the extent quantifiable, and emissions associatedwith startups, shutdowns, and malfunctions; b. Is adjusted downward to exclude any noncompliant emissionsthatoccurred whilethe sourcewas operating above an emission limitation that was legally enforceable during the consecutive twenty-four (24) month period; and c. Is based on any consecutive twenty-four (24) month period for which there is adequate information for determining annual emissions, in tons per year, and for adjusting this amount as necessaryaccordingtoclause b. ofthissubparagraph; and 2. If a project involves multiple emissions units, only one (1) consecutive twenty-four (24) month period is used to determinethe baseline actual emissions for the emissions units being changed with a different consecutive twenty-four (24) month period allowed foreach regulated NSR pollutant; {b) For an existing emissions unit that is not an EUSGU, the unit actuallyemitted during anyconsecutivetwenty-four (24) month period selected by the owner or operator within the ten (10) year period beginning on or after November 15, 1990, and immediately preceding the earlier ofthe dale the owner or operator begins actual construction ofthe project orthe date a complete permit application is received by the cabinet for a permit required under 401 KAR 51:017 or51:052. 1.The rate iS an average that: a. Includes fugitive emissions, to the extent quantifiable, and emissions associatedwith startups, shutdowns, and malfunctions; b. Is adjusted downward: (i) To exclude any noncompliant emissions that occurred while the source was operating above an emission limitation that was legally enforceable during the consecutive twenty-four {24) month period; (li) To exclude any emissions that would have exceeded an emission limitation with which the major stationary source is 

## required currentlytocomply, ifthe source had been required to comply with the limitations during the consecutive twenty-four (24) month period; and (iii) For an emission limitation that is part of a maximum achievable control technology standard proposed or promulgated under 40 C.F.R. Part 

### 63, only if the Commonwealth of Kentucky has taken credit for the emissions reductions in an attainment demonstration or maintenance plan consistent with 40 C.F.R. 51.165(a)(3)(ii)(G); and c. Is based on any consecutive twenty-four (24) month period for which there is adequate infonnation for detennining annual emissions, in tons per year, and for adjusting this amount as necessary accordingtoclause b. ofthis subparagraph. 2. 

### If a project involves multiple emissions units, only one 

### (1) consecutive twenty-four (24) month period is used for each regulated NSR pollutant to detennine the baseline actual emissions for the emissions units being changed with a different consecutive twenty-four (24) month period; {c) For a new emissions unit, equals zero for detennining the emissions increase that will result from the initial construction and operation of the new unit and thereafter, for all other purposes, equals the unifs potential to emit; or (d) Fora PALfora stationarysource, is determined asfollows: 1. For an existing EUSGU, in accordance with the procedures contained in paragraph (a) ofthis subsection; 2. For other existing emissions units, in accordance with the procedures contained in paragraph (b) ofthis subsection; and 3. Fora new emissions unit, inaccordancewiththe procedures contained in paragraph (c) ofthissubsection. (21) "Baseline area" means an intrastate area and every part ofthat area designated as attainment or unclassifiable pursuant to 42 U.S.C. 7407(d)(1)(A)(ii) or (iii) in which the major source or major modification establishing the minor source baseline date would construct or would have an air quality impact equal to or greater than one (1)**~JQ/m 3**  annual average of the pollutant for which the minor source baseline dale is established for SO,, NOz, or PM10 or0.3 ugfm3annual averagefor PM, 5· (a) Area redesignations under 42 U.S.C. 7407(d)(1)(A)(ii) or 

### (iii) do not intersectand are not smallerthanthearea ofimpact ofa major stationarysourceor majormodification that: 1. Establishes a minorsource baselinedate; or 2. Is subject to 401 KAR 51:017 and would be constructed in the Commonwealth ofKentucky. (b) A baseline area established originally for total suspended particulate (TSP} increments remains in effect to determine the amount ofavailable PM,0 increments, unless the cabinet rescinds the corresponding minorsource baseline date. (22) "Baseline concentration" meansthe ambient concentration level that exists in the baseline area on the date the applicable minorsource baselinedate isestablished. {23) "Baseline date" means major source baseline date or minorsource baselinedateand is established for each pollutantfor which increments or other equivalent measures have been established if the area in which the proposed source or modification would construct is designated as attainment or unclassifiable pursuant to 42 U.S.C. 7407(d)(1)(A)(ii) or (iii) for the pollutant on the date ofthesource's completeapplication; and (a} For a majorstationary source, the pollutantwould be emit-



## -114-

## VOLUME 39, NUMBER 1-JULY 1, 2012 ted in significantamounts; or {b) For a major modification, there would be a significant net emissions increaseofthe pollutant. (24) "Begin actual construction" means: (a) Initiation of physical on-site construction activities on an emissions unitthat are ofa permanent nature and include installation of building supports and foundations, laying underground pipe work, and construction ofpermanentstorage structures; and (b) For a change in method of operations, those on-site acflv·lties, otherthan the preparatory activities, that mark the initiation of thechange. (25) "Best available control technology'' or "BACr means an emissions limitation, including a visible emission standard, based on the maximum degreeofreduction foreach regulated NSR pollutant thatwill be emitted from a proposed majorstationarysourceor majormodification and: (a) Is determined by the cabinet pursuant to 401 KAR 51:017, Section 8, after laking into account energy, environmental, and economic impacts and other costs, to be achievable by the source or modification through application of production processes or available methods, systems, and techniques, including fuel cleaning or treatment or innovative fuel combustion techniques for control ofthat pollutant; (b) Does not result in emissions of a pollutant that would exceed the emissions allowed by an applicable standard codified in 40 C.F.R. Parts 60and 61; and (c) Is satisfied byadesign, equipment, work practice, oroperational standard or combination ofstandards approved by the cabinet, if: 1. The cabinetdetermines pursuantto40 C.F.R. 51.166(b)(12) that technological or economic limitations on the application of measurement methodology to a particular emissions unit would makethe imposition ofan emissions standard infeasible; 2. The standard establishes the emissions reduction achievable by implementation of the design, equipment, work practice, or operation; and 3. The standard provides for compliance by means that achieve equivalent results. (26) "BOD" means biochemical oxidantdemand. (27) "Boiler'' means an enclosed fossil or other fuel-fired combustion device usedto produce heat andtotransfer heatto recirculating water, steam, or othermedium. (28) "BTU" means British thermal unit. (29) "Building, structure, facility, orinstallation" means all ofthe pollutantemitting activitiesthat: (a) Belong to the same industrial grouping or have the same two (2) digit major group code as described in the Standard Industrial Classification Manual; (b) Are located on one (1) or more contiguous or adjacent properties; (c) Are underthe control ofthe same person or persons under common control; and {d) Do not includethe activities ofa vessel. (30) "C" meansdegree Celsius (centigrade). (31) "Cabinet" is defined by KRS224.01-010(9). (32) "Cal" meanscalorie. (33) "Capital expenditure" is defined by40 C.F.R. 60.2. (34) "cfm"means cubicfeet per minute. (35) "CH4" means methane. (36) "Clean coal technology" is defined by 40 C.F.R. 51.166(b)(33). (37) "Clean coal technology demonstration project" is defined by40 C.F.R. 51.166(b)(34). (38) "Clinker" meansthe product ofa portland cement kiln from which finished cement is manufactured by milling and grinding. (39) "CO" meanscarbon monoxide. (40) "C02· means carbon dioxide. (41) "COD" means chemical oxidant demand. (42)"Combined cycle system" means a system comprised of one (1) or more combustion turbines, heat recovery steam generators, or steam turbines configured to improve overall efficiency of electricitygeneration orsteam production. (43) "Combustion turbine" means an enclosed fossil or other fuel-fired device that is comprised of a compressor, a corilbustor, and a turbine, and in which theflue gas resulting from thecombustion of fuel in the combustor passes through the turbine, rotating theturbine. (44) "Commence" meansthat an owneror operator: (a) 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; or {b) For construction of a major stationary source or major modification in the PSD or NSR program, has all necessary preconstruction approvals orpermits, and: 1. Has begun, or caused to begin, a continuous program of actual on-site construction ofthe source, to be completed within a reasonable time: or 2. Has entered into binding agreements or contractual obligations, thatcannot be cancelled or modified without substantial loss to the owner or operator, to undertake a program of actual construction ofthesourceto 

### becompleted within a reasonabletime. (45) "Commence commercial operation" meansto have begun to produce steam, gas, orotherheated medium used to generate electricityforsale or use. Except as provided in 401 KAR51:195 or 40 C.F.R. 96.5: {a) For a unit that is a NOx budget unit under 40 C.F.R. 96.4, on the date the unit commences commercial operation, the dale remains the unit's date ofcommencement ofcommercial operation even ifthe unit is subsequently modified, reconstructed, or repowered; or (b) For a unit that is not a NOx budget unit under 40 C.F.R. 96.4, on the date the unit commences commercial operation, the date the unit becomes a NOx budget unit under 40 C.F.R. 96.4 is the unifsdate ofcommencementofcommercialoperation. (46) "Commence operation" means, for a NOx budget unit, to have begun a mechanical, chemical, or electronic process, including start-up ofa unit's combustion chamber. Except as provided in 401 KAR 51:195 or40 C.F.R. 96.5: (a) For a unit that is a NOx budget unit under 40 C.F.R. 96.4 on the date of commencement of operation, the dale remains the unit's date of commencement of operation even if the unit is subsequently modified, reconstructed, orrepowered; or (b) For a unit that is not a NOx budget unit under 40 C.F.R. 96.4 on the date ofcommencement ofoperation, the date the unit becomes a NOx budget unit under40 C.F.R. 96.4 isthe unit's date ofcommencement of operation. (47) "Complete" is defined by40 C.F.R. 51 .166(b){22). (48) "Compliance schedule" means a time scheduleofremedial measures including an enforceable sequence ofactions oroperations leadingtocompliance with a limitation orstandard. (49) "Compliance supplement pool" meansthe quantity ofNOx allowances providedto Kentucky bythe U.S. EPAtobe: (a) Allocated to NOx budget units that achieve early reduction; 

## oc (b) Usedto assist NOx budget sourcesthatare unableto meet the compliance deadline as provided in 401 KAR 51:180, Section 

### 5. (50) "Construction" means: {a) Fabrication, erection, installation, or modification of an air contaminantsource; or (b) For the NSR program, any physical change or change in the method ofoperation, including fabrication, erection, installation, demol'llion, ormodification ofan emissions un·rt thatwould result 'm a change in the emissionsatan aircontaminantsource. (51) "Continuous emissions monitoring system" or "GEMS" means all ofthe equipment necessaryto meetthe data acquisition and availability requirements of401 KAR 51:017 or51:052to sample, condition (if applicable), analyze, and provide a record of emissions on a continuous basis. (52) "Continuous emission monitoring system for NOx" or "GEMS for NOx'' means the equipment required to sample, analyze, measure, and provide, by readings taken at least once every fifteen {15) minutes of the measured parameters, a permanent record ofNOx emissions, expressed in tons per hour for NOx. The following systems are necessary component parts, as required by 

## ·115.

## VOLUME 39, NUMBER 1-JULY 1, 2012 40 C.F.R. Part 75, included in a continuous emissions monitoring system: 

### (a) Flow monitor; (b) NOxpollutant concentration monitor; {c) Diluentgasmonitor(02 orC02 ); (d)Continuous moisture monitor, and (e)Automateddataacquisition and handling system. 

### (53) "Continuous emissions rate monitoring system" or 

### "GERMS" is 

### defined by40 

### C.F.R. 51.166(b)(46). (54) "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 (ifapplicable), to analyze, and to providea pennanent record ofemissions or process parameters. (55) "Continuous parameter monitoring system" or "CPMS" is defined by: (a) 40 C.F.R. 51.166(b)(45)for401 KAR51 :017; or (b) 40 C.F.R 51.165(a)(1)(xxxiii)for401 KAR 51:052. (56) "Control period" means the period beginning May 1 of a year

### and ending on September30 ofthe sameyear, inclusive. (57) "Director'' means Director ofthe Division for Air Quality of the Energyand Environment Cabinet. (58) "District" is defined byKRS224.01-010(11). (59) "dscf" means drycubicfeet at standard condftions. (60) "dscm"means drycubic meteratstandard conditions. (61) "Electric generating unit" means, for 401 KAR 51:160 to 51:195, a fossil fuel-fired boiler, combustion turbine, ora combined cycle system usedto generate twenty-frve (25) megawatts or more ofelectricity, some ofwhich is offeredforsale. (62) "Electric utility steam generating unit" or "EUSGU" is defined by40 C.F.R. 51.166(b)(30). (63) "Emission standard" means that numerical limit that fixes the amount of an air contaminant or air contaminants that may be vented into the atmosphere from an affected facility or from air pollution control equipment installed in anaffected facility. (64) "Emissions unit" means any part of a stationary source, including an EUSGU, that emits orhasthe potential to emil a regulated NSR pollutant. For 401 KAR 51:017 and 51:052, there are 

### two (2) types ofemissions units: (a) A new emissions unit, which is any emissions unftthat is or will be newly constructed and that has existed for lessthan

### two (2) years from the datethe unitfirst operated; and (b)An existing emissions unit, which is anyemissions unit that does not meetthe requirements in paragraph (a) ofthis subsection oris a replacement unit. (65) "Enforceable as a practical matter'' means that the emission or other standards contained in a permit or compliance schedule include: (a) Technically accurate emission standards and the portions ofthe sourcethataresubjecttothe standards; (b)A time period adequatetodemonstrate compliancewith the standards; and (c) The method the source shall use to achieve and demonstrate compliance with the limitations and standards, including appropriate monitoring, recordkeeping, and reporting. (66) "Equivalent method" means a method of sampling and analyzing for an air pollutant that has been demonstrated to the cabinet and the U.S. EPA pursuant to 40 C.F.R. 53.3 to have a consistent and quantitatively known relationship to the reference method, underspecified conditions. (67) "Excess NOx emissions" means any tonnage of nitrogen oxides emitted by a NOx budget unit during a control period that exceedsthe NOx budget emissions limitation for the unit. (68) "Exempt compound" or "exemptsolvent" means an organic compound listed in the definition ofvolatile organiccompound as notparticipating in atmospheric photochemical reactions. (69) "Existing source" means a source that is not a new source. (70) "Extreme nonattainmenl county" or "extreme nonattainment area" means a county or portion of a county designated extreme nonattainmenl for the national ambient air quality standard forozone. (71) "°F" means degree Fahrenheit. (72) "Federal land manager'' is defined by 40 C.F.R 51.166(b)(24). (73) "Federally enforceable" means all limitations and conditions thatare enforceable bythe U.S. EPA, including: (a) Requirements developed under40 C.F.R. Parts 60 and 61; (b) Requirements in the Kentucky State Implementation Plan (SIP)approved by the U.S. EPA; and (c)Anypermit requirements established under40 C.F.R. 52.21 or underthe Kentucky SIP approved pursuantto40 C.F.R. Part51, Subpart I, including operating permits issued under a U.S. EPAapproved program incorporated into the SIP, that expressly requires adherencetoa permit issued underthe program. (74) "Federally enforceable permir means a permit issued under401 KAR52:020 or52:030, as appropriate. (75) "Fixed capital cost" means the capital needed to provide all the depreciablecomponents. (76) "Fossil fuel" means natural gas; petroleum; coal; ora form of solid, liquid, or gaseous fuel derived from natural gas, petroleum, orcoal. (77) "Fossil fuel fired" means, fora unit: (a) The combustion offossil fuel, alone or in combination with anotherfuel, ifthe fossil fuel combusled comprises more than 

### frfty (50) percent ofthe annual heat input on a BTU basis during a year starting in 1995 or, ifa unit had no heat inputstarting in 1995, during the lastyearofoperation ofthe unit priorto 1995; or (b) The combustion offossil fuel, alone or in combination with another fuel, if the fossil fuel is projected to comprise more than fifty (50) percent ofthe annual heal input on a BTU basis during a year, and the unit is to be fossil fuel fired as ofthe date during the yearthe unit begins combustingfossilfuel. (78)

### "ft" meansfeetorfoot. (79) "Fuel" means natural gas; petroleum; coal; wood; or a form of solid, liquid, or gaseous fuel derived from these materials forthe purpose ofcreating useful heat. (80) "Fugitive emissions" means those emissions that could not reasonably pass through a stack, chimney, vent, or otherfunctionallyequivalent opening. (81) "g" means gram. (82) "gal" means gallon. (83) "General fund" isdefined byKRS 48.010(15)(a). (84) "Generator" means a device that produces electricity. (85) "gr" means grain. (86) "HCI" means hydrochloricacid. (87) "Heat inpur means the product, in MMBTU per unit of time, ofthe gross calorifrc value ofthe fuel, in BTU per lb, and the fuel feed rate into a combustion device, in mass offuel per unit of time, that: (a) Does not include the heat derived from preheated combustion air, recirculated flue gases, orexhaustfrom othersources; and (b) Ismeasured, recorded, and reported to the cabinet. (88) "HF" means hydrogenfluoride. (89) "Hg" means mercury. (90) "High terrain" is defined by40 C.F.R. 51.166(b)(25). (91) "hr" means hour. (92) "Hydrocarbon" means an organic compound consisting predominantlyofcarbon and hydrogen. (93) "Hydrocarbon combustion flare" means: (a)A flare used to complywith an applicable New Source Performance Standard (NSPS) or Maximum Achievable Control Technology (MACT) standard, including uses of flares during startup, shutdown, or malfunction permitted underthe standard; or (b) A flare that serves to control emissions of waste streams comprised predominately 

### of hydrocarbons and containing no more than 230 j.Jg/dscm hydrogen sulfide. (94) "HzO" meanswater. (95) "H2S' means hydrogen sulfide. (96) "H2 SQ•. meanssulfuricacid. (97) "in" means inch. (98) "Incineration" means the process of igniting and burning solid, semisolid, liquid, orgaseouscombustiblewastes. (99) "Industrial boilerorturbine" meansafossil fuel-fired boiler, combustion turbine, or a combined cycle system having a maximum design heat inputof250 MMBTU per hourormore that is not an electricgenerating unit. 

## -116-

## VOLUME 39, NUMBER 1-JULY1,2012 (100) "Innovative control technology'' is defined by 40 C.F.R. 51.166(b)(19). (101) "Intermittent emissions" means emissions of particulate matter into the open airfrom a process that operates for less than any six (6) consecutive minutes. (102) "J" meansjoule. (103) "Kg" means kilogram. (104) "I" means liter. (105) "lb" means pound. (106) "Legally enforceable" meansthe cabinet orthe U.S. EPA has the authorityto enforce a certain restriction. (107) "Long dry kiln" means a kiln that employs no preheating ofthefeed and hasa dryinletfeed. (108) "Long 

### wet kiln" means a kiln that employs no preheating ofthefeed and the inletfeed tothe kiln is aslurry. (109) "Lowterrain" means an areaotherthan high terrain. (110) "Lowest achievable emissions rate" or "LAER" means, foranysource: (a)1. The most stringent emissions limitation that is contained in the Kentucky SIP forthe class or category ofstationary source, unless the owner or operator of the proposed stationary source demonstratesthatthe limitation is notachievable; or 2. The most stringent emissions limitation achieved in practice bythe class orcategory ofstationarysource; (b) For a major modification, the lowest achievable emissions rate for the new or modified emissions units 

## at the stationary source; and {c) An emissions limitation that does not exceed the allowable emissions of an applicable standard established pursuant to 40 C.F.R. Parts 60, 61, or 63. (111) "m" means meter. (112) "m3" means cubic meter. (113) "Majoremissions unit" means: (a) Any emissions unit that emits or has the potential to emit 100 Ions per year ormore

### cla PAL pollutant in an alla'rnment area; 

# " (b) Any emissions unit that emits or has the potential to emit a PAL pollutant in an amount that is equal to or greater than the major source threshold for the PAL pollutant as defined by the Clean AirAct, 42 U.S.C. 7401

- 7671q for nonattainmentareas. (114) "Major modification" means a physical change in or a change in the method ofoperation ofa majorstationary sourcethat results in a significant emissions increase and a significant net emissions increaseofa regulated NSR pollutant {a) A significant emissions increase from any emissions units or net emissions increase at a major stationary source that is significant for volatile organic compounds or nitrogen oxides is considered significantforozone. (b) A physical change or change in the method of operation does not include: 1. Routine maintenance, repair, and replacement; 2. Use ofalternative fuel or raw material by reason of an order or a natural gascurtailment plan in effect underafederal act: 3. Use of an alternative fuel at a steam generating unit to the extentthatthe fuel is generatedfrom municipal solidwaste: 4. Use of an alternative fuel or raw material by a stationary sourcethat: a. The source was capable of accommodating before January 6, 1975, for 401 KAR 51:017, or December21, 1976, for401 KAR 51 :052; unless the change would be prohibited by a federally enforceable permit condition that was established after January 6, 1975, for 401 KAR 51:017, or December 21, 1976, for 401 KAR 51:052, pursuanlto40 C.F.R. 51.165 or51.166; or b. The source is approved to use by a permit issued pursuant to401 KAR51:017or51:052; 5. An increase in the hours of operation or in the production rate, unless the change is prohibited by any federally enforceable permit condition established after January 6, 1975, for 401 KAR 51 :017 or December 21, 1976, for401 KAR 51:052 pUrsuantto 40 C.F.R. 52.21; after June 6, 1979, pursuant to 401 KAR 51:015; after September 22, 1982, pursuant to 401 KAR 51:017; or pursuantto401 KAR 52:020 and 51 :016E; 6. A change in ownership at a stationarysource; 7. The installation, operation, cessation, or removal of a temporary clean coal technology demonstration project, if the project complies with the Kentucky SIP and other requirements necessary to attain and maintain the national ambient air quality standards during the project and after it is terminated; 8. The installation oroperation ofa permanent clean coal technology demonstration project that constitutes repowering, 

### if the project does not result in an increase in the potential to emit of a regulated pollutant emitted by the unit, on a pollutant-by-pollutant basis; or 9. The reactivation of a very clean coal-fired electric utility steam generating unit. (c) Instead ofthis definition, the definition for "PAL majormodification", in subsection (175) ofthis section, is used for a particular regulated NSR pollutant, if the major stationary source is complying with the requirements of401 KAR 51:017, Section 20, and 401 KAR 51 ;052, Section 11, for a PALforthat pollutant. (115)"Major NSR permit" means a permit issued under Kentucky's PSD orNSRprogram. (116) "Majorsource• means a source with a potential emission rate equal toorgreaterthan 100tons peryear ofany one (1) ofthe following pollutants; particulate matter, sulfur oxides, nitrogen oxides, volatile organic compounds, carbon monoxide, orODS. (117) "Majorsource baseline date" means: (a) For PM 10[1:mrtiGr.tlate mat=ter] and sulfur dioxide, January 6, 1975;[aR9] (b) Fornitrogen dioxide, February 8, 1988· and (c) For PMn, October20. 2010. (118) "Majorstationarysource" means: (a)1. A stationary source of air pollutants that emits, or has the potential to emil, 100 tons per year or more of a regulated NSR pollutant, exceptthat: a. For ozone nonattainment areas: 100 tons per year of more of volatile organic compounds or nitrogen oxides in a marginal or moderate ozone nonattainment area; frfl.y (50) tons per year or more ofvolatile organic compounds ornitrogen oxides in a ser'lous ozone nonattainmenl area; twenty-five (25) tons per year or more ofvolatile organic compounds or nitrogen oxides in a severe ozone nonattainment area; or ten (10) tons per year or more of volatile organic compounds or nitrogen oxides in an extreme ozone nonattainment area; b. Fifty (50) tons per year or more of carbon monoxide in a serious carbon monoxide nonattainment area where stationary sources contribute significantlyto carbon monoxide levels; and c. Seventy (70) tons per year or more of particulate matter (PM 10) in a serious PM,o nonattainmentarea; or 2.a. For the PSD program, any of the following stationary sources ofairpollutants thatemits, or hasthe potentialto emit, 100 tons peryearormore ofa regulated NSR pollutant'. fossil fuel-frred steam electric plants of more than 250 million BTU per hour heat input, coal cleaning plants with thermal dryers, kraft pulp mills, Portland cement plants, primary zinc smelters, iron and steel mill plants, primary aluminum ore reduction plants, primary copper smelters, municipal incinerators capable ofcharging morethan 250 tons of refuse per day, hydrofluoric, sulfuric, and nitric acid plants, petroleum refineries, lime plants, phosphate rock processing plants, coke oven batteries, sulfur recovery plants, carbon black plants (furnace process), primary lead smelters, fuel conversion plants, sintering plants, secondary metal production plants, chemical process plants, except ethanol production facilities producing ethanol by natural fermentation underthe North American Industry Classifrcation System (NAICS) codes 325193 or312140, fossilfuel boilers, orcombination offossil fuel boilers, totaling more than 250 million BTU per hour heal input, petroleum storage and transfer units with a total storage capacity exceeding 300,000 barrels, taconite ore processing plants, glass fiber processing plants, and charcoal production plants; and b. Regardless ofthe stationary source size specified in clause li.**[sr.~bola~o~se** (i)] ofthis subparagraph 

### [GiaYse], a stationary source that emits, or has the potential to emit, 250 tons per year or more ofa regulated NSR pollutant; or 3. Any physical change that will occur 

### at a stationary source not otherwisequalifying underthissubsection as a majorstationary source, if the change will constitute a major stationary source by itself;



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## VOLUME 39, NUMBER 1-JULY 1, 2012 (b) A 

### source that is major for volatile organic compounds or 

### nitrogen oxides isconsidered majorfor ozone; and (c) Fugitive emissions are included only ifthe source belongs to one (1) ctthefollowing categor"1es ofstationarysources: 1. Coal cleaning plantswiththermal dryers; 2. Kraft pulp mills; 3. Portland cementplants; 4. Primaryzincsmelters; 5. Iron and steel mills; 

### 6. Primaryaluminum ore reduction plants; 7. Primarycoppersmelters; 8. Municipal incinerators capable of charging more than 250 tons of refuse perday; 9. Hydrofluoric, sulfuric, ornitricacid plants; 

### 10. Petroleum refineries; 

### 11. Lime 

### plants; 12. Phosphate rock processing plants; 13. Cokeoven batteries; 14. Sulfur recovery plants; 15. Carbon black plants (furnace process); 16. Primary lead smelters; 17. Fuel conversion plants; 18. Sintering plants; 19. Secondarymetal production plants; 20. Chemical process plants, except ethanol production facilities producing ethanol by na.tural fermentation under NAICS codes 325193 or312140; 21. Fossil-fuel boilers, or combination of fossil-fuel boilers, totaling morethan 250 million BTUs perhourheat input; 22. Petroleum storage and transfer units with a total storage capacityexceeding 300,000 barrels; 23. Taconite ore processing plants; 24. Glassfiber processing plants; 25. Charcoal production plants; 26. Fossil fuel-fired steam electric plants of more than 250 million BTUs per hourheat input; or 27. Another stationary source category that. as of August 7, 1980, is being regulated under42 U.S.C. 7411 or7412. (119) "Malfunction" means a sudden and infrequent failure of airpollution control equipment. process equipment, ora process to operate in a normal or usual manner that is not caused entirely or in part by poor maintenance, careless operation, or other upset condition orequipmentbreakdownthat is reasonably preventable. {120) "Mandatory Class I area" means an area identified in 40 C.F.R. Part 81, Subpart D, ifthe administrator ofthe U.S. EPA, in consultation with the Secretary ofthe U.S. Department of Interior, has determined visibilityto be an importantvalue. (121) "Marginal nonattainment county" or "marginal nonattainment area" means a county or portion ofa county designated marginal nonattainmentforthe national ambient airquality standardfor ozone. (122) "Maximum design heat input" means the ability of a unit to combust a stated maximum amount offuel per houron a steady state basis, as determined by the physical design and physical characteristics ofthe unit. (123) •Maximum potential hourly heal input" means an hourly heat input used for repo1t'1ng purposes ifa unit lacks certified monitorsto report heat input and is: (a)A value calculated accordingto 40 C.F.R. Part 75 using the maximum fuel flow rate and the maximum gross calorific value, 

### if the unit intends to use 40 C.F.R Part 75, Appendix D, to report heal input; or (b) A value reported according to 40 C.F.R. Part 75 using the maximum potential flow rate and eitherthe maximum percent CO, concentration (in percent CO,) or the minimum percent 02, 

### if the unit intendsto usea flow monitorand a diluents gas monitor. (124) "Maximum potential NOx emission rate" means the emission rate ofNOx(in lb perMMBTU) calculated according to 40 C.F.R. Part 75, Appendix F, Section 3, using the maximum potential NOx concentration as defined in 40 C.F.R. Part 75, Appendix A, Section 2, and the maximum percent02 orthe minimum percent CO. under all operating conditions of the unit except for unit startup, shutdown, and malfunction. (125) "Maximum rated hourly heat input" means a unit specific maximum hourly heat input (MMBTU) that is the higher of the manufacturer's maximum rated hourly heat input or the highest observed hourly heatinput. (126) "!J-g" meansmicrogram (127) "mg" means milligram. (128) "Mid-kiln firing" means the secondary firing in kilns by injecting solid fuel at an intermediate point in the kiln using a specially designed feed injection mechanism for the purpose of decreasing NOxemissionsthrough: (a) Burning part ofthe fuel ata lowertemperature; and {b) Reducing-conditions at the solid waste injection point that may destroy some ofthe NOxformed upstream in the kiln burning zone. (129) "min" meansminute. (130) "Minorsource baselinedate" means: (a) The earliest date after the trigger date on which a major stationary source or a ri1ajor modification subject to permit requirements established pursuant to 40 C.F.R. 52.21 or the KentuckySIPsubmitsa completeapplication The triggerdate is: 1.[j;erfJartisbllate matter anG Slllfur GiexiGe, the trigger <late is] August7, 1977. for PM10 and SO,; 

### g,_[; anG 2. Fer ni!Fegen <liexi<le, the trig!iler Bate is] February 8, 1988, for N02; and 3. October20, 2011, for PM,.s: {b) For TSP increments, that the originally established date remains in effect to determine the amount ofavailable PM1o increments, unless the cabinet rescinds the minorsource baseline dale pursuantto 40 C.F

### .R. 51.166{b)(14)(iv); and (c) A date established for each pollutant for which increments orotherequivalent measures have been established if: 1. The area in which the proposed source or modification will construct is designated as attainment or unclassifiable pursuant to 42 U.S.C. 7407(d)(1)(A)(ii) or (iii)forthe pollutant on the date ofits complete application pursuantto401 KAR Chapter52; and 2. Fora majorstationarysource, the pollutantwill be emitted in significant amounts or a significant net emissions increase of the pollutantwill occurfora majormodification. (131) "MJ" means megajoules. (132) "mm" means millimeter. {133) "MM" means million. (134) "rna" means month. (135) "Moderate nonattainment county" or "moderate nonattainment area" means a county or portion of a county designated moderate nonattainment forthe national ambient air quality standard forozone. (136) "Modification" means any physical change in, or a change in the method ofoperation of, an affectedfacilitythat: (a) Increasesthe amountofanyairpollutant (to which a standard applies) emftted into the atmosphere by that facility or that results in the emission of any air pollutant (to which a standard applies) intotheatmosphere not previously emitted; and (b) Is notsolely: 1. Maintenance, repair, and replacement that the cabinet determines to be routine for a source category considering available information; 2. An increase in production rate of an affected facility, 

### ifthat increasecan be accomp1'1shed without a capital expenditure on that facility; 3. An increase in the hours ofoperation: 4. Use of an alternative fuel or raw material 

### if, priorto the date a standard becomes applicable to that source type, the affected facilitywas designed to accommodate that alternative use. A facility is consideredto

### be designed to accommodate an alternativefuel or raw material 

### ifthat use could be accomplished under the facility's construction specification as amended priorto thechange; 5. Conversion to coal required for energy considerations, as specified in 42 U.S.C. 7411(a)(8); 6. The addition or use ofa system or device the primary function ofwhich is the reduction of air pollutants, unless an emission control system is removed or replaced by a systemthatthe cabinet determinesto be lessenvironmentally beneficial; or 7. The relocation orchange in ownership ofasource. {137) "Monitoring device' means the total equipment, required



## - 118

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## VOLUME 39, NUMBER 1-JULY 1, 2012 by an applicable administrative regulation in 401 KAR Chapters 50 to 65, used to measure and record, ifapplicable, process parameters. {138) "Monitoring system" means a monitoring system that meets the requirements ofany applicable administrative regulation in401 KAR Chapters 50 to65. (139)**~MWe"** means megawatt electrical. (140) "Nz· means nitrogen. (141) "Nameplate capacity" means the maximum electrical generating output (in MWe) that a generator can sustain over a specified period 

### of time if not restricted by seasonal or other deratings as measured with United States Department of Energy standards. (142} "Natural conditions" means those naturally occurring phenomena that reduce visibility as measured in terms of visual range, contrast, orcoloration. (143) "Necessary preconstruction approvals or permits" means those permits or approvals required underthe administrative regulations approved to the Kentucky SIP pursuant to 40 C.F.R. 52.920, and federal air quality control laws and regulations established pursuantto 42 

### U.S.C. 7401

- 7671q. {144) "Netemissions increase" means: (a) For any regulated NSR pollutant emitted by a major stationary source, the amount by which the sum of subparagraphs 1 and 2 ofthis paragraph exceeds

## zero: 1. An increase in emissions from a particular physical change or change in method of operation at a stationary source as calculated pursuanl"to 401 KAR 51:017, Section 1(4), or 401 KAR 51:052, Section 1(2); and 2. 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 underthis**par~** agraph are determined as defined inthis section. {b) An increase or decrease in actual emissions is contemporaneous with the increasefrom the particularchange only 

### if: 1. For construction that commences prior to January 6, 2002, the change occurs between the date ten (10) years before construction on the change commences and the datethatthe increase from the change occurs; and 2. For construction that commences on and after January 6, 2002, the change occurs between the date five (5) years before construction on the change commences and the date that the increasefrom the change occurs. (c) An increase or decrease in actual emissions is creditable only if: 1. The cabinetorthe U.S. EPA has not relied on the change in issuing a permit for the source pursuant to 401 

### KAR 51:017, 51:052, or 40C.F.R. 52.21; and 2. The pem1it is in effectatthetime the increase ordecrease in actual emissions from the particularchange occurs. (d) An increase ordecrease in actual emissions ofsulfur 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. For particulate matter, only 

### PMw emissions are used to evaluate the net emissions increasefor PM,0. (e) An increase in actual emissions is creditable only to the extentthatthe newlevel ofactual emissions exceeds the old level. 

### (f) A decrease in actual emissions is creditable only to the extentthat: 1. The old level ofactual emissions orthe old level ofallowable emissions, whichever is lower, exceeds the new level of actual emissions; 2. The decrease is enforceable as a practical matter at and after the time that actual construction on the particular change begins; and 3. The decrease has approximately the same qualitative significance for public health and welfare as that attributed to the increasefrom the particularchange. (g)An increasethat results from a physical change at a source occurs if the emissions unit on which construction occurred becomes operational and begins to emit a particular pollutant. A replacement unit that requires shakedown becomes operational only aftera reasonable shakedown period, notto exceed 180 days. (h) The term, actual emissions, as defined in subsection (2) of this section does not apply in determining creditable increases and decreases. (145) "New source• means a source, the construction, reconstruction, or modtfication ofwhich commenced on or afterthe classification date as defined in the applicable administrative regulalion, irrespective ofa change in emission rate. (146) "Nitrogen oxides" means all oxides of nitrogen except nitrous oxide, as measured by test methods spectfied in the KentuckySIP. {147) "ng" means nanograms. (148) "NO" means nitricoxide. (149) "N02" means nitrogen dioxide. (150) "Nonattainment major new source review program" or "NSR program" is defined by 40 C.F.R. 51.165(a)(1)(xxx). For purposes ofthis definition, "administrator'' meansthe U.S. EPA. (151) "NOx" means nitrogen oxides. (152) "NOxallowance" is defined by

### 40 C.F.R. 96.2. (153) "NOx Allowance Tracking System" or "NATS" is defined by 40 C.F.R. 96.2 For purposes of this definition, "administrator" means the U.S. EPA. (154) "NOxauthorized account representative" is defined by40 C.F.R. 96.2. (155) "NOx budget emissions limitation" means, for a NOx budget unit, the tonnage equivalent ofthe NOx allowances available for compliance deduction for the unit and for a control period under 401 KAR 51:160 adjusted by deductions of sufficient NOx allowances to accountfor: (a) Actual utllization under 40 C.F.R. 96.42(e) for the control period; (b) Excess NOx emissions for a prior control period under 40 C.F.R. 96.54(d); (c) Withdrawal from the NOx budget program under 40 C.F.R. 96.86; or (d) A change in regulatory status for a NOx budget opt-in source under40C.F.R. 96.87. (156) "NOx budget opt-in source" means an affected facility that has elected to become a NOx budget unit under the NOx

..BudgetTrading Program and whose NOx budget opt-in pem11t has

been issued and is in effect. (157) "NOxbudgetsource" is defined by40 C.F.R. 96.2. (158) "NOx Budget Trading Program" is defined by 40 C.F.R. 96.2. (159} "NOx budget unit' means a unit that is subject to the NOx Budget Trading Program emissions limitation under401 KAR 51:160 or40 C.F.R. 96.80. (160) "NOx budget unit operator" means a person who operates, controls, or supervises a NOx budget unit, a NOx budget source, or a unit for which an application for a NOx budget opt-in pem1it under401 KAR 51:195 is submitted and notdenied or withdrawn and includes a holding company, utility system, or plant managerofa NOxbudget unit or source. (161) "NOx budget unitowner'' means: (a) A holder of a portion ofthe legal or equitable title in a NOx budget unit or in a unit for which an application for a NOx budget opt-in permit under401 KAR51:195 is submitted and notdenied or withdrawn; (b) A holderofa leasehold Interest in a NOx budget unit or in a unit for which an application for a NOx budget opt-in pem1it under 401 KAR 51:195 is submitted and notdenied orwithdrawn; (c) A purchaserof powerfrom a NOxbudget unit orfrom a unit forwhich an application for a NOx budget opt-in permit under 401 KAR 51:195 is submitted and notdenied orwithdrawn undera lifeof-the-unit, firm power contractual arrangement and unless expressly provided for in a leasehold agreement, does not include a passive lessor, or a person who has an equitable interest through the lessor, whose rental payments are not based, eitherdirectly or indirectly, upon the revenues or income from the NOx budget unit orthe unit for which an application for a NOx budget opt-in permit under 401 KAR 51:195 is submitted and not denied or withdrawn; (d) For any general account, a person who has an ownership



## - 119-

## VOLUME 39, NUMBER 

## 1-JULY 

## 1,2012 interest with respect to the NOx allowances held in the general account and who is subject to the binding agreementfor the NOx authorized account representative to represent that person's ownership. 

### (162) "02" 

### means oxygen. (163) "Oa" means ozone. 

### (164) "Opacity'' means the degree to which emissions reduce the transmission of light and obscure the view of an object in the background. (165) "Operating" means, for a NOx budget unit, having documented heat inpllt for more than 876 hours in the six (6) months 

### immediately preceding the submission of an application for an initial NOxbudgetpermit. (166) "Operator'' means, for a NOx budget unit, any person 

### who operates, controls, or supervises a NOx budget unit, a NOx budget source, or unit for which an application for a NOx budget opt-in pennit is submitted and not denied or withdrawn, and includes any holding company, utility system, or plant manager of the unitor source. (167) "Opt-in" means to 

### be elected to become a NOx budget unit under the NOx Budget Trading Program through a final NOx budget opt-in penni!. (168) "Owner", for a NOx budget unit, is defined by 40 C.F.R. 96.2. (169) "Owner or operator'' means a person who owns, leases, operates, controls, or supervises an affected facility or a source of which an affected facility is a part. (170) "oz" means ounce. (171) "Ozone depleting potential" or"ODP", means pursuantto 40 C.F.R. Part 82, Subpart A, AppendicesA and B, the ratio ofthe total amount of ozone destroyed by a fixed amount of an ozone depleting substance to the amount of ozone destroyed by the same mass oftrichlorofluoromethane (CFC-11) in which the ozone depleting potential ofCFC-11 is equal to one and zero-tenths (1.0). (172) "Ozone depleting substance" or "ODS" means any chemical compound regulated under 40 C.F.R. Part 82 with decay products, afterthe photolysis ofthe ODS by short-wave uttraviolet light, that are able to catalyze the destruction of stratospheric ozone. (173) "PALeffectivedate" means: (a) The date ofissuance ofthe PAL permit; or (b) For an increased PAL, the date any emissions unit that is part of the PAL major modification becomes operational and beginsto emitthe PAL pollutant. (174) "PAL effective period" means the period beginning with the PAL effective dateand endingten (10)years later. (175) "PAL major modification" means any physical change in or a 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. (176) "PAL penni!" meansthe pennit issued bythe cabinetthat establishes a PALfor a majorstationarysource. (177) "PAL pollutanf' means the pollutant for which a PAL is established at a majorstationary source. (178) "Particulate matter'' means a material, except uncombined water that exists in a finely divided fonn as a liquid or solid measured by a U.S. EPA-approved test method or a test method approved in the Kentucky SIP. (179) "Particulate matter emissions" means, except as used in 40 C.F.R. Part 60, all finely divided solid or liquid material, other than uncombined water, emitted

### to the ambientairas measured by applicable reference methods, or an equivalent or artemalive method specified in 40 C.F.R. Chapter I, or by atest method specified in the Kentucky SIP. (180) "Peak load" means the maximum instantaneous operating load. (181) "Permitted capacity factor'' means the annual pennitled fuel use divided by the manufacturer's specified maximum fuel consumption multiplied by 8,760 hours peryear. (182) "Person" is defined by KRS 224.01-010(17). (183) "Plant-wide applicability limitation" or "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 is established source-wide in accordance with 401 KAR 51:017 or51:052. (184) "PM25" means particulate matter with an aerodynamic diameter less than or equal to a nominal two and five-tenths (2.5) micrometers as measured bya reference method in 40 C.F.R. Part 50, Appendix L, and designated in accordance with 40 C.F.R. Part 53, or by an equivalent method designated in accordance with 40 C.F.R. Part 53. (185) "PM,o" means particulate matter with an aerodynamic diameter Jess than 

### or equal to a nominal ten (10) micrometers as measured bya reference method in 40 C.F.R. Part 50, Appendix

### J, and designated in accordance with 40 C.F.R. Part 53, or by an equivalent method designated in accordance with 40 C.F.R. Part 

### 53. (186) "PM,0 emissions" means finely divided solid or liquid material with an aerodynamic diameter less than or equal to a nominal ten (10) micrometers emitted to the ambient air as measured by an applicable reference method, or an equivalent or a!ternatlve method specified in40 C.F.R. Chapter I, or by atest method specified in the Kentucky SIP. (187) "Pollution prevention" is defined by 40 C.F.R. 51.166(b)(38). (188) "Portland cement" means a hydraulic cement produced by pulverizing clinker consisting essentially of hydraulic calcium silicates. (189) "Portland cement kiln" means a system, including solid, gaseous or liquid fuel combustion equipment, used to calcite and fuse raw materials, including limestone and clay, to produce Portland cement clinker. (190) "Potentialto emit" or"PTE" means: (a) The maximum capacity of a stationary source to emit a pollutant under its physical and operational design, inwhich: 1. 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 oombusted, stored, or processed, is treated as part of its design ifthe limitation is enforceable as a practical matter; and 2. This definition does notalter or affectthe use ofthis tenn for other purposesofthe CleanAirAct, 42 U.S.C. 7401

- 7671q, orthe tenn "capacityfactor'' as used in theAcid Rain Program. (b) Forthe PSD and NSR·programs, the maximum capacity of a stationary source to emit a pollutant under its physical or operational design, in which: 1. A 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 oramount of material combusted, stored, or processed, is treated as part of its design ifthe limitation orthe effect itwould have on emissions: a. Is federally enforceable; or b. Foran actual PAL, isfederally enforceable or enforceable as a practical matter; and 2. Secondary emtssions are not counted. (191) "ppb" means parts perbillion. (192) "ppm" means parts per million. (193) "ppm(wlw)" means parts permillion (weight by weight). (194) "Precalciner kiln" means a kiln in which the feed to the kiln system is preheated in cyclone chambers and utilizes a second burner to calcine material in a separate vessel attached to the preheater priortothefinal fusion in a kiln thatfonns clinker. (195) "Predictive emissions monitoring system" or "PEMS" is defined by40 C.F.R. 51.166(b)(44). (196) "Preheater kiln" means a kiln in which the feed

### to the kiln system is preheated in cyclone chambers priortothefinal fusion in a kiln thatfonns clinker. (197) "Prevention of Significant Deterioration Program" or "PSD Program" means a major source preconstruction program that has been approved by the U.S. EPA and incorporated into the Kentucky SIP to implement the requirements of 40 C.F.R. 51.166 or52.21. (198) "Project" means a physical change in or change in method ofoperationofan existing majorstationarysource. (199) "Projected actual emissions" means: (a) The maximum annual rate, in tons per year, 

## at which an existing emissions unll is projected to emit a regulated NSR poilu- 

## -120-

## VOLUME 39, NUMBER 1-JULY 1, 2012 tan! in any one (1) of the five {5) years, in a twelve (12) month period, following the date the unit resumes regular operation after the project, or in any one (1) of the ten (10) years following that date, if: 1. The project involves increasing the emissions unit's design capacity orIts potentialtoemitthe regulated NSRpollutant; and 2. Full utilization of the unit would result in a significant emissions increase or a significant net emissions increase at the major stationarysource; or (b) The maximum annual rate, in Ions per year, at which an emissions unit, before beginning actual construction, is projected to emil a regulated NSR pollutant, ifthe source: 1.a. Considers all relevant information, including historical operational data and the company's own representations of expected and highest projected business activity, filings with the cabinet and the U.S. EPA, and compliance plans under the Kentucky SIP;b. Includes fugitive emissions and emissions associated with startups, shutdowns, and malfunctions; and c. Excludes, in calculating any increase in emissions that results from a project, that portion of the unit's emissions following the project that an existing un"rt could have accommodated during the consecutive twenty-four (24) month period used 

### to establish the baseline actual emissions and that are also unrelated to the project, including any increased utilization due to product demand growth; or 2. Elects to use the emissions unit's potential 

### to emit, in tons per year, instead of using subparagraph 1. of this paragraph to determine projected actual emissions. (200) "psia" means pounds persquare inch absolute. (201) "psig" means pounds persquare inch gage. (202) "RACT/BACT/LAER Clearinghouse" or "RBLC" means the U.S. EPA's online collection of previous RACT/BACTILAER determinations. (203) "Reactivation of a very clean coal-fired EUSGU" is defined by40 C.F.R. 51.166(b)(37). (204) "Reasonable further progress" is defined by 42 U.S.C. 7501(1). For purposes ofthis definition, "administrator'' means the U.S. EPA. (205) "Reconstruction" means the replacement ofcomponents ofan existing affected facility to the extentthat: (a) The fixed capital cost ofthe new components exceeds 

### fifty (50) percentofthe fixed capital costthat would 

### be required to construct acomparable entirely newaffectedfacility; and (b) It is technologically and economically feasible to meet the applicable requirements of401 KAR Chapters 50to 65. (206} "Reference method" means a method of sampling and analyzing for an air pollutant as published in 40 C.F.R. Part 50, Appendices A toN; 40 C.F.R. Part 53; 40 Part 60, Appendices A and B; 40 C.F.R. Part 61, Appendix B; or 40 C.F.R. Part 63, AppendicesA to 

### D. (207) "Regulated NSRpollutant" means the following: (a) A pollutantforwhich a national ambient airquality standard has been promulgated and the followinqfarw] constituents or pre**cursors~** 1. Volatile oraaniC compounds and nitrogen oxides are precursorsto ozone in all attainmentand unclassifiable areas· 2. Sulfur dioxide is a precursor to PM, 5 in all attainment and unclassifiable areas· 3. Nitrogen oxides are presumed to be precursors to PM, 5 in all attainment and unclassifiable areas unless it is demonstrated that emissions of nitrogen oxides from sources in a specific area are not a significant contributor to that area's ambient PM2, concentrations: 4. Volatile oraanic compounds are presumed not to be precursors to PM,, in any attainment or unclassifiable area unless it is demonstrated that emissions of volatile organic comoounds from sources in a specific area are a significantcontributortothatarea's ambient PM,s concentrations· and 5. Particulate matter emissions, PMn emissioris and PM12 emissions shall includegaseous emissions from a source or activity that condense to form particulate matter at ambient temperaturesffor**s~,~s~** 

### f!BIIutaF!tS iEientmea 

### tly**t~e** U.S. l;ij;!A]; (b) A pollutant subject to any standard promulgated under 42



## - 121 U.S.C. 7411; (c) A pollutant subject to a standard promulgated under or established by42 U.S.C. 7671to 7671q; or (d) A pollutant that otherwise is subject to regulation, as defined in subsection (231) of this section, under42 U.S.C. 7401 to 7671q, except that any hazardous air pollutant (HAP) listed in 42 U.S.C. 7412 or added to the list pursuant to 42 U.S.C. 7412{b)(2), that has not been delisted pursuantto 42 U.S.C. 7412(b)(3), is not a regulated NSR pollutant unless the listed HAP is also regulated as a constituent or precursor ofa general pollutant listed under 42 U.S.C. 7408. (208) "Replacement unit" means an emissions unit that does not generate creditable emissions reductions by shutting down the existing emissions unitthat is replaced, andthat: (a)1. Is a reconstructed unit wfthin the meaning of 40 C.F.R. 60.15(b)(1) or that completelytakes the place ofan existing emissions unit; 2. Is identical to or functionally equivalent to the replaced emissions unit; and 

### 3. Does not alter the basic design parameters of the process unit.(b) Replaces a unitthat: 1. Is permanently removed from the majorstationarysource, is otherwise permanently disabled, or is prohibited from operating by. a permitthat is enforceable as a practical matter; and 2. If brought back into operation, is considered a new emissions unit. (209) "Repowering" is defined by40 C.F.R. 51.166(b)(36). (210) "Responsible official' means: (a) For a corporation: a president, secretary, treasurer, orvicepresident ofthe corporation in charge ofa principal business function, or other person who performs similar policy or decisionmaking functions for the corporation, or a duly authorized representative ofthat person ifthe representative is responsible for the overall operation of one (1) or more manufacturing, production, or operatingfacilities applyingforor subjectto a permit; and 1. The facilities employ more than 250 persons or have gross annual sales or expenditures exceeding $25,000,000 in second quarter 1980 dollars; or 2. The delegation ofauthority to the representative is approved in advance bythe cabinet pursuantto this subsection; (b) For a partnership or sole proprietorship, a general partner orthe proprietor, respectively; (c) For a municipality, state, federal, or other publlc agency, a principal executive officer or ranking elected official. The principal executive officer of a federal agency includes the chief executive officer having responsibility for the overall operation of a principal geographic unitoftheagency; or (d) For the acid rain portion ofa permit foran affected source, the designated representative. (211) "Run" means the net period oftime, either intermittent or continuous within the limits ofgood engineering practice, when an emission sample is collected. (212) "S" means atstandard conditions. (213) "sec" meanssecond. (214) "Secondary emissions" means emissionsthat (a) Occuras a result ofthe construction oroperation of a major stationary source or major modification, and do not come from the majorstationarysourceormajor modification itself; (b) Are specific, well defined, quantifiable, and impact the same general area as the stationary source modification that causes the secondaryemissions; (c) Include emissions from an offsite supportfacilitythat would not otherwise be constructed or increase 

### its emissions as a result of the construction or operation of the major stationary source or major modification; and (d) Do not include emissions that come directly from a mobile source, including emissions from the tailpipe of a motor vehicle, a train, orvessel. (215) "Serious nonattainment county" or "serious nonattainment area" means a countyor portion of a county designated serious nonattainment forthe national ambient air quality standard for ozone. (216) "Severe nonattainment county• or "severe nonattainment

## VOLUME 39, NUMBER 1-JULY 1, 2012 area" means a county or portion of a county designated severe 

### nonattainment for the national ambient air quality standard for 

### ozone. (217) "Shutdown" meansthe cessation ofan operation. (218) "Significant' means: 

### (a) For 401 KAR 51:017, in reference to a net emissions increase or the I of a source to emit any of 

### the pollutants listed in the 

### i thatwould equal or



### ; 

### i i

, in reference to a net emissions increase or the potential of a source to emit a regulated NSR pollutant that is not listed in thetable in paragraph (a) ofthis subsection, anyemissions rate; 

### (c) For401 KAR 51:017, in reference to an emissions rate ora net emissions increase associated 

### with a major stationary source or major modification, that is to be constructed within ten (10) kilo

### meters ofa Class Iarea, an impact on that area equal to orgreater than one (1) !!g/m3

### overatwenty-four (24) houraverage; (d) For 401 KAR 51:052, in reference to a net emissions increase or the potential of a source to emit any of the pollutants listed in the following table, a rate ofemissions that would equal or exceed a corresponding rate listed in the table: i i



### 51:052, with the exception of the significant 

# •rr;;;,,;O<,. rate for ozone in this subsection, significant means, in reference to an emissions increase or net emissions increase, a rate ofemissions that exceedsthefollowing: 1. Twenty-five (25) tons peryear ofvolatile organiccompounds or nitrogen oxides in a serious or severe ozone nonattainment area: or 2. Any increase in actual emissions 

### of volatile organic compounds or nitrogen oxides in an extreme ozone nonattainment area; or (f) 

### For 401 KAR 51:052, with the exception of the significant emissions rate for carbon monoxide in this subsection, significant means, in reference to an emissions increase or net emissions increase, a rate of emissions of carbon monoxide that equals or exceedsfifty (50) tons peryear in a serious nonattainmentarea for carbon monoxide in which a stationary source contribute significantlyto carbon monoxide levels. (219) "Significant emissions increase' means, for a regulated NSR pollutant, an increase in emissions that is equal to or greater thanthe emission levelthat is significantforthat pollutant. (220) "Significant emissions unit" means an emissions unitthat emits or has the potential to emil a PAL pollutant in an amount equal to or greaterthan the applicable significant level as defined in subsection (218) ofthis section or in 42 U.S.C. 7401 to 7671q, whichever is lowerforthat PAL pollutant, but less than the amount thatwould qualifythe unitas a majoremissions unit. (221) "Small emissions unit" means an emissions unit that emits or has the potential to emil the PAL pollutant in an amount less than the PAL pollutanfs applicable significant level as defied in sUbsection (218) 

### ofthis section; or in 42 U.S.C. 7401 to 7671q, whichever is lower. (222) "SO/ means sulfurdioxide. (223) "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 

### ofway. (224) "sq" means square. (225) "Stack or chimney" means a flue, conduit, or duct arranged to conduct emissionsto the atmosphere. (226)**~standard"** 

### means an emission standard, a standard of performance, or an ambient air quality standard as promulgated in 401 KAR Chapters 50 to 65 or the emission control requirements necessaryto comply with 401 KAR Chapter51. (227) "Standard conditions" means: (a) For source measurements, twenty (20) degrees Celsius (sixty-eight (68) degrees Fahrenheit)and a pressure of76(}mm Hg (29.92 in. ofHg}; or (b) For air quality detenninations, twenty-five (25) degrees Celsius (seventy-seven (77) degrees Fahrenheit) and a reference pressure of760 mm Hg (29.92 in. of Hg). (228) "Start-up" or "startup" means the setting in operation of an affectedfacility. (229) "State implementation plan" or "SIP" means the most recentiy prepared plan or revision required by 42 U.S.C. 7410 that has been approved bythe U.S. EPA. (230) "Stationary source" means a building, structure, facility, or installation that emits or has the potential to emit a regulated NSR pollutant.



## - 122

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## VOLUME 39, NUMBER 1-JULY 1,

## 2012 (231) "Subject to regulation" is defined by 40 C.F.R 51.166(b)(48). (232) "Submit" means to send or transmit a document, information, or correspondence in accordance with an applicable requirement. {233) "TAPPI" means Technical Association of the Pulp and Paper Industry. (234) "Temporary clean coal technologydemonstration project" ·1s defined by40 C.F.R. 51.166(b)(35). (235) "Ton" or "tonnage", for a NOx budget source, means a shortton or 2,000 pounds. Fordetermining compliance

### with the NOx budget emissions limitation, total tonsfor a control period is calculated as the sum of all recorded hourly emissions, or the tonnage equivalentofthe recorded hourlyemissions rates, in accordance with 40 C.F.R. Part 96, Subpart H with any remaining fraction of a ton equal to or greater than 0.50 ton deemed to equal one (1) ton and anyfraction ofaton less than 0.50ton deemedto equal zero tons. (236) "Total suspended particulates" or "TSP" means particulate matteras measured by the method described in40 C.F.R. Part 50, Appendix B. (237) "tpy" meanstons peryear. (238) "TSS"meanstotal susperded solids. (239) "Uncombined water'' means waterthat can be separated from a compound by ordinary physical means and that is not bound to a compound 

### by internal molecularforces. (240) "Unit" means a fossil fuel-fired stationary boiler, combustionturbine, orcombined cycle system. {241) "Urban county" means a county that is a part of an urbanized area with a population greater than 200,000 based upon the 1980 census. Ifa portion of a county is a part of an urbanized area, then the entire county is classified as urban for 401 KAR Chapters 50 to 65. (242) "Urbanized area" means an area defined by the U.S. DepartmentofCommerce, Bureau ofCensus. (243) "U.S. EPA" means the United Stales Environmental Protection Agency. (244) "UTM" means Universal Transverse Mercator. (245) ''Visibility impairment" is defined by40 C.F.R 51.301. (246) "Volatile organic compound" or "VOC" is defined by 40 C.F.R. S1.100(s). {247) "yd" meansyard. Section 2. Incorporation by Reference. (1) The following material is incorporated by reference: {a) "North American Industry Classification System", 2007, as published bythe Office ofManagement and Budget; and (b) "Standard Industrial Classification Manual", 1987, as published by the Office of Managementand Budget [Is lnsel'jSieroled 

### By refeFGnce]. (2) This material may be inspected, copied or obtained, subject to applicable copyright law, at the following main and regional offices of the Kentucky Division for Air Quality during the normal working hours of8 a.m. to4:30p.m., local time: (a) Kentucky Division for Air Quality, 200 Fair Oaks Lane, 1st floor, Frankfort, Kentucky 40601-1403, (502) 564-3999; (b) Ashland Regional Office, 1550 Wolohan Drive, Suite 1, Ashland, Kentucky41102, (606) 929-5285; (c) Bowling Green Regional Office, 1508 Westen Avenue, Bowling Green, Kentucky 42104, (270}746-7475; (d) Florence Regional Office, 8020 Veterans Memorial Drive, Suite 110, Florence, Kentucky41042, (859) 525-4923; (e) Frankfort Regional Office, 200 FairOaks Lane, Third Floor, Frankfort, Kentucky 40601, (502) 564-3358; (f) Hazard Regional Office, 233 Birch S1reel, Suite 2, Hazard, Kentucky 41701, (606} 435-6022; (g) London Regional Office, 875 S. Main Street, London, Kentucky40741, (606) 330-2080; (h) Owensboro Regional Office, 3032 Alvey Park Drive, W., Suite700, Owensboro, Kentucky42303, (270) 687-7304; and (i) Paducah Regional Office, 130 Eagle Nest Drive, Paducah, Kentucky 42003, (270) 898-8468. (3) The Standard Industrial Classification Manual is also available under Order No. PB 87-100012 from the National Technical Information Service, 5285 Port Royal Road, Springfield, Virginia 22161, phone(703)487-4650. LEONARD K. PETERS, Secretary APPROVED BYAGENCY: June 13, 2012 FILEDWITH LRC: June 14, 2012 at 2 p.m. PUBLIC HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this administrative regulation shall be held on July24, 2012, at 10:00 a.m. (local time) in Conference Room 201B on the first floor of the Divis·1on for Air Quality at 200 Fak Oaks Lane, Frankfort, Kentucky. Individuals interested in being heard at this hearing shall notify this agency five (5) workdays prior to the hearing oftheir intentto attend. If no notification ofintent to attend the hearing is received bythat 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 wrftten comments on the proposed administrative regulation. Written comments shall be accepted until close of business on July 31, 2012. Send written notification of intent to be heard at the public hearing orwritten comments on the proposed administrative regulation to the contact person listed below. The hearingfacility is accessibleto persons with disabilities. Requests for reasonable accommodations, including auxiliary aids and services necessaryto participate in the hearing, may be made tothe contact personatleastfive (5) workdays priortothe hearing. CONTACT PERSON: Laura Lund, EnvironmentalTechnologist Ill, Division for Air Quality, 1st Floor, 200 Fair Oaks Lane, Frankfort, Kentucky 40601, phone (502) 564-3999, ext. 4428, fax {502) 564-4666, and email Laura.Lund@ky.gov. REGULATORY IMPACTANALYSISAND TIERING STATEMENT Contact person: Laura Lund (1) Provide a briefsummary

### of: (a) What this administrative regulation does: This administrative regulation definestheterms used in 401 KAR Chapter 51. (b) The necessity ofthis administrative regulation: This administrative regulation provides clear and consistent definitions for terms used in401 KAR Chapter51. (c) How this administrative regulation conforms to the content of the authorizing statutes: KRS 224.10-100(5) requires the Cabinet to provide for the prevention, abatement, and control of air pollution. The definitions contained in this administrative regulation are not more stringent than the corresponding federal definitions and assist in the fulfillment offederal and state statutes by providing clear and consistent definitions for terms used in 401 KAR Chapter51. (d) 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 forterms used in 401 KARChapter51. (2) Ifthis is an amendmentto an existing administrative regulalion, provide a briefsummary

## ot {a) Howthe amendmentwill change this existing administrative regulation: This amendment adopts revisions to the New Source Review (NSR) program at the federal level that implement the PM2

. 5 National AmbientAirQualityStandards (NMOS). Specifically, the definition of "Regulated NSR pollutanf' has been amended for consistencywiththefederal program. (b) The necessity of the amendment to this administrative regulation: These amendments are necessary to ensure consistency between state and federal programs. {c) Howthe amendment conforms to the content ofthe authorizing statutes: 42 U.S.C. 7410{a)(1) requires each state to adopt and submit a plan providing for the implementation, maintenance, and enforcement of a NAAQS. This amendment provides the mechanisms and tools necessary to implement, maintain, and enforce standards for PM2.s- This amendment maintains consistency with corresponding federal definitions affecting Kentucky's NSR program. (d) How the amendment will assist in the effective administration ofstatutes: This amendment provides definitions ofterms used in 401 KAR Chapter 51 to prevent and control air pollution that are 

## -123-

## VOLUME 39, NUMBER 1-JULY·1, 2012 consistent

### with those atthe federal level. (3) 

### List the type and numberofindividuals, businesses, organizations, orstale and local governments affected bythis administrative regulation: Individuals, businesses, organizations, or governments 

### will be affected bythis regulation 

### iftheyare subjectto any of the requirements contained in thischapter. 

### (4) Provide an assessment of how the entities identified in question 

### (3) will be impacted by either the implementation of this 

### administrative regulation, if 

### new, or by the change if 

### it is an amendment: This amendment maintains consistency with correspondingfederal definitionsaffecting Kentucky's NSR program. (a) Listthe actionsthat each ofthe regulated entities identified in question (3) will have to take 

### to comply with this administrative regulation or amendment: Affected facilities will be required to apply and usethetermsasdefined in this regulation. {b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3): This amendmentdoes notimpose an increased costtothe regulated community. (c) 

### As a result of compliance, what benefits will accrue to the entities identified in question (3): When operating in compliance, the affected facilities will not be subjectto enforcement actions and penalties. Furthermore, compliance with the Clean AirAct requirements preserves and improves air quality throughout the Commonwealth. (5) Provide anestimate ofhowmuch itwill costthe administrative bodyto implementthisadministrative regulation: (a) Initially: The Cabinet will not incur any additional costs for the implementation ofthis administrative regulation. (b) On a continuing basis: Therewill not be anyadditional continuing costs for the implementation of this administrative regulation.(6) What is the source ofthe funding to be used forthe implementation and enforcement of this administrative regulation: The Cabinet's current operating budgetwill be usedforthe implementation and enforcement ofthis administrative regulation. (7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change 

### ifit is an amendment. No increase in fees orfunding is necessary to implement this administrative regulation amendment. (8) State whether or not this administrative regulation establishes any fees or· directly or indirectly increases any fees. This administrative regulation does not establish, nor directly or indirectly increase, anyfees. (9) TIERING: Is tiering applied? Yes. This administrative regulation contains thresholds over which facilities may be subject to permitting requirements. FEDERAL MANDATEANALYSIS COMPARISON 1. Federal statute or regulation constituting the federal mandate. 42 U.S.C. 7410(a)(1) requires Kentucky to adopt and submit a plan providing for the implementation, maintenance, and enforcement ofa NAAQS. 2. State compliance standards. The state compliance standards arefound in KRS 224.10-100(5). 3. Minimum or uniform standards contained in the federal mandate. The Clean Air Act is the federal mandate that requires states to have a plan for the attainment of the national primary ambient air quality standards and reasonable further progress of the airquality. 4. Will this administrative regulation impose stricter requirements, or additional or different responsibilities or requirements, thanthose required bythefederal 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 stringentthanthe correspondingfederal definitions. FISCAL NOTE ON STATE OR LOCAL GOVERNMENT 1. Does this administrative regulation relate to any program, service, or requirements of a state or local government (including cities, counties,fire departments, orschool districts)?Yes. 2. What units, parts or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted bythis administrative regulation? State and local governments will be required to use definitions contained in this administrative regulation if subject to the requirements of 401 KAR Chapter51. 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); 40 C.F.R. 51.165, 51.166; and 42 U.S.C. 7401-7671q. 4. Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full yearthe admii"listrative regulation is to be in effect. (a) How much revenue will this administrative regulation generate for the stale or local government (including cities, counties, fire departments, or school districts) forthe first year? This administrative regulation generates no revenue. (b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years? This administrative regulation generates no revenue. (c) Howmuch will it costto administerthis programforthefirst year? The Cabinet's existing operating budget is the source of funding forthe implementationofthis program. (d) How much will it costto administerthis program forsubse· quent years? There will be no additional costs for administering this program in subsequentyears. Note: Ifspecificdollarestimates cannot be determined, provide a brief narrative to explain the fiscal impacts of the administrative regulation. Revenues(+/-): There is no known effectoncurrent revenues. ExpendiTures (+/-): There is no known effect on current ex· penditures. Other Explanation: There is nofurther explanation.



### ENERGYAND ENVIRONMENTCABINET Departmentfor Environmental Protection Division forAir Quality (Amendment) 401 KAR 51:017. Prevention of significant deterioration 

### of airquality. RELATES TO: KRS 224.10-100, 40 C.F.R. 51 Subpart I, Appendix S, sec. IV, Part 51, Appendix W, 51.166, 52.21, 52.26, 53, 58 AppendixA, 60, 61, 63, 70.6, 81.318, 81 Subpart D, 42 U.S.C. 7401-7671q[,**"~.;11 4~708,**  1;;0 2009 §38] STATUTORY AUTHORITY: KRS 224.10-100(5), 40 C.F.R. 51.166,**[~]42** U.S.C. 7401-7671q[, EO2009 §38] NECESSITY, FUNCTION, AND CONFORMITY: KRS 224.10- 100@ requires the cabinet to promulgate administrative regulations forthe prevention, abatement, and control ofairpollution.[EG 2009 §38, effestive**Jto~ne** 12, 2009, est:aBiisAes IRe Enei\IY anG**J;;nviFSnn:~ent** CaBinet.] This administrative regulation provides for the prevention of significant deterioration of ambient air quality. The provisions of this administrative regulation are**not[~** 

### ReF] more stringent than the corresponding federal reouirementsfregblla!ion, 40 C.P.R §1.188]. Section 1. Applicability. (1) This administrative regulation shall apply 

## to the construction of a new major stationary source or a project at an existing major stationary source that commences construction after September 22, 1982, and locates in an area designated attainment or unclassifiable under 42 U.S.C. 7407(d)(1)(A)(ii) and (iii). (2) Except as otherwise provided in this administrative regulation, the provisions ofSections 8 to 16 ofthis administrative regulalion shall apply to the construction of a new major stationary source or a major modification of an existing major stationary source. (3) The owner or operator of a new major stationary source or



## - 124-

## VOLUME 39, NUMBER 1-JULY 1, 2012 major modification, which is subject to the requirements of Seclions 8 to 16 ofthis administrative regulation, shall not begin actual construction without a proposed pennitor proposed permit revision 

### issued under 401 KAR 52:020 stating that the major stationary sourceormajormodification shall meetthose requirements. {4) Applicability tests for projects. Except as provided in subsection (5) of this section, a project shall be a major modification fora regulated NSR pollutantonly ifthe project causes a significant em"1ss'1ons increase and a significant net emissions increase as provided in paragraphs (a) and (b) ofthis subsection. (a) Prior to beginning actual construction, the owner or operatorshall first determine ifa significant emissions increase will occur for the applicable type of unit being constructed according to subparagraphs 1to 3 ofthis paragraph. 1. Actual-to-projected actual applicability test for projects that only involve existing emissions units. A significant emissions increase of a regulated NSR pollutant shall be projected to occur if the sum of the difference between the projected actual emissions and the baseline actual emissions for each existing emissions unit equals orexceedsthesignificant amountforthat pollutant 2. Actual-to-potential test for projects that involve only construction of new emiss·lons units. A significant emissions '1ncrease 

### ofa regulated NSR pollutant shall be projected to occurifthe sum 

### of the potential to emit from each new emissions unit following completion ofthe project equals orexceeds the significant amount forthat pollutant. 3. Hybrid test for projects that involve multiple types of emissions units. A significant emissions increase of a regulated NSR pollutant shall be projected to occur if the sum of the emissions increases for each emissions unit, using a method specified in subparagraphs 1 and 

### 2 of this paragraph as applicable for each emissions unit, equals or exceeds the significant amount for that pollutant. (b) Prior to beginning actual construction and after completing the applicable procedure established in paragraph (a) 

### of the subsection, the owner or operator shall determine for each regulated NSR pollutant if a significant net emissions increase will occur pursuantto401 KAR 51:001, Section 1(144) and (218). (5) For a plant-wide applicability limit (PAL) for a regulated NSR pollutant at a major stationary source, the owner or operator of the major stationary source shall comply with the applicable requirements ofSecllon 20 ofthis administrative regulation. (2) For any period other than an annual period, the applicable maximum allowable increase may be exceeded during one (1) such period peryearat anyone (1) location. Section 3. Ambient Air Ceilings. The concentration of a regulated NSR pollutant shall not exceed the concentration allowed underthe national secondary ambient airquality standard or under the national primary ambient air quality standard, whichever concentration is lowerforthe pollutantfora pariod 

### ofexposure. Section 4. Restrictions on Area Classifications. (1) The following areas, which were in existence on August 7, 1977, shall be Class I areas and shall notbe redesignated: (a) International parks; (b) National wilderness areas and national memorial parksthat exceed 5,000 acres in size; and (c) National parksthatexceed 6,000 acres in size. (2) Any otherarea, unless otherwise specified in the legislation creating the area, shall be designated Class Ubut may 

### be redesignated as provided in 40 C.F.R. 51.166(g). (3) The visibility protection requirements of this administrative regulaf1on shall applyonlytosources that mayimpact a mandatory Class Ifederal area. (4)The following areas may be redesignated only as Class I or II: (a) An area that as ofAugust 7, 1977, exceeded 10,000 acres in size and was a national monument, a national primitive area, a national preseiVe, a national recreational area, a national wild and scenic river, a national wildlife refuge, a national lakeshore orseashore; and (b) A national park or national wilderness area established afterAugust7, 1g77, which exceeds 10,000acres in size. Section 5. Exclusions from Increment Consumption. {1) Pursuant to notice and opportunityfor

### at least one (1) public hearing to 

### be held in accordance with procedures established in 401 KAR 52:100, the cabinet may exclude the following concentrations in determining compliancewith a maximum allowable increase: (a) Concentrations attributable 

### to the increase in emissions from stationary sources that have converted from the use of petroleum products, natural gas, or both by reason ofan order in effect under a federal statute orregulation overthe emissionsfrom these sources beforethe effective dale 

### oftheorder; (b) Concentrations attributable to the increase in emissions from sourcesthat have converted from using natural gas by reason of a natural gas curtailment plan in effect pursuant to a federal statute over the emissions from those sources before the effective date ofthe plan; (c) Concentrations of particulate matter attributable to the increase in emissions from construction or other temporary emission-related activities ofnewor modified sources; and (d) Concentrations attributable to the temporary increase in emissions of sulfur dioxide, particulate matter, or nitrogen oxides from stationarysources affected by plan revisions approved by the Administratorofthe U.S. EPAas meeting the criteria established in subsection (3) ofthis section. (2)(a) Exclusion of concentrations shall not apply more than five (5) years afterthe effective date ofthe orderto which subsection (1)(a) of this section refers or the curtailment plan to which subsection (1)(b) ofthis section refers, whichever is applicable. (b) If both an order and curtailment plan are applicable, an exclusion shall not apply more than five (5) years after the later of the two (2) effectivedates. (3) For excluding concentrations pursuant to subsection {1)(d) ofthissection: {a) The time period over which the temporary emissions increase of sulfur dioxide, particulate matter, or nitrogen oxides would occur shall 

### be specified and shall not exceed 

### two (2) years in duration unlessa longertime is approved by the U.S. EPA; (b) The time period for excluding certain contributions in accordancewith paragraph (a) ofthis subsection shall not be renewable; (c) An emissions increase .from a stationary source shall not occurthatwill: 

## ·125.

## VOlUME 39, NUMBER 

## 1 -JUlY 

## 1,2012 1. Impact a Class 

### t area or an area in which an applicable in

### crement is known to 

### beviolated; or 2. Cause or contributeto the violation ofa national ambient air quality standard; and (d) 

### Limitations shall be in effect at the end of the time period established in paragraph (a) ofthis subsection, which ensure that the emissions levels from stationary sources affected by the SIP revision shall not exceed the levels occurring from those sources 

### before the revision was approved. Section 6. Stack Heights. (1) The degree of emissions limitation required for control ofan airpollutant underthis administrative 

### regulation shall not be

### affected by: (a) So much 

### of the stack height of a source as exceeds good engineering practice; or 

### (b) Another dispersiontechnique. (2) Subsection (1) of this section shall not apply to stack heights in existence before December 31, 1970, or to dispersion techniques implemented beforethen. Section 7. Exemptions. (1) Sections 8 to16 ofthis administrative regulation shall not apply to a particular major stationary source or majormodification, if: (a)The owneroroperator: 1. Obtained the necessary federal, state, and local preconstructionapproval effective before September22, 1982; 2. Commenced construction before September22, 1982; and 3. Did notdiscontinue constructionfora period ofeighteen (18) monthsormore. (b)1. The major stationary source is a nonprofit health institution, a nonprofrt educational institution, or a major modification at such an institution; and 2. The Governor ofthe Commonwealth of Kentucky requests that it be exemptfrom those requirements. (c) The source or modification is a major stationary source or major modification only iffugitive emissions, to the extent quantifiable, are considered in calculating the potential to emit of the stationary source or modification and the source does not belong to anyofthefollowing categories: 1. Coal cleaning plantswith thennal dryers; 2. Kraft pulp mills; 3. Portland cement plants; 4. Primaryzincsmelters; 5. Iron and steel mills; 6. Primaryaluminum ore reduction plants; 7. Primarycoppersmelters; 8. Municipal incinerators capable of charging more than 250 tons ofrefuse perday; 9. Hydrofluoric, sulfuric, ornitricacid plants; 10. Petroleum refineries; 11. Lime plants; 12. Phosphate rock processing plants; 13. Coke oven batteries; 14. Sulfur recovery plants; 15. Carbon black plants, furnace process; 16. Primary lead smelters; 17. Fuel conversion plants; 18. Sintering plants; 19. Secondarymetal production plants; 20. Chemical process plants, except ethanol production facilities producing ethanol by natural fermentation under the North American Industry Classification System (NAICS) codes 325193 or 312140; 21. Fossil-fuel boilers, or combination of fossil-fuel boilers, totaling morethan 250 million BTUs per hourheat input; 22. Petroleum storage and transfer units with a total storage capacityexceeding 300,000 barrels; 23. Taconiteore processing plants; 24. Glassfiberprocessing plants; 25. Charcoal production plants; 26. Fossil fuel-fired steam electric plants of more than 250 million BTUs per hour heat input; or 27. Another stationary source category that, as of August 7, 1980, is being regulated under42 U.S.C. 7411 or7412. (d) The source or modiftcation is a portable stationary source that has previously received a permit under this administrative regulation; and 1. The owneror operator proposes

## to relocate the source, and the emissions ofthesourceatthe newlocationwill betemporary; 2. The emissions from the source will not exceed its allowable emissions; 3. The emissions from the sourcewill not impact a Class I area or an area where an applicable increment is known 

## to be violated; 

# '"'4.a. Reasonable notice is given to the cabinet priorto the relocation identifying the proposed new location and the probable duration ofoperation atthe new location. b. Notice shall be given to the cabinet not less than ten (10) days in advance ofthe proposed relocation unless a different time duration is previously approved by the cabinet pursuant to this subsection. (e) The source or modification was not subjectto this administrative regulation with respect to particulate matter requirements in effect beforeJuly 31, 1987, andtheowneror operator: 1. Obtained all final federal, state, and local preconstruction approvals or permits necessary under the applicable SIP before July31, 1987; 2. Commenced construction wfthin eighteen (18) months after July31, 1987; and 3. Did notdiscontinue construction fora period ofeighteen (18) months or more and completed construction within a reasonable period oflime. (f)1. The source or modification was subjecttothis administrative regulation for particulate matter requirements in effect before July 31, 1987, and the owner or operator submitted an application fora permit under the applicable permit program before that date; 

# "'2. The cabinet subsequentlydetermined thatthe application as submitted was complete with respect to the particulate matter requirementsthen in effect. (2) Sections 8 to 16 of this administrative regulation shall not apply to a major stationary source or major modification for a particular pollutant ifthe owner or operatordemonstrates that, forthat pollutant, the source or modification is located in an area designated as nonattainment pursuantto42 u.s.c. 7407(d){1)(A){i). (3) Sections 9,11, and 13 ofthis administrative regulation shall notapplyto a proposed majorstationary source or majormodification for a particular pollutant, 

### if the allowable emissions of that pollutant from the source, or the net emissions increase of that pollutantfrom a modification: (a) Will not impact a Class I area oran area where an applicable increment is knownto be violated; and (b) Will be temporary. (4) Sections 9, 11, and 13 ofthis administrative regulation, as applicable to a maximum allowable increase for a Class II area, shall not apply to a major modification at a stationary source that was in existence on March 1, 1978, 

### ifthe net increase in allowable emissions of each regulated NSR pollutant from the modification after the application of BACT will be less than 

### flfly (50) tons per year. (5) The cabinet may exempt a proposed major stationary source or major modification from the monitoring requirements of Section 11 of this administrative regulation for a particular pollutant, 

### if: (a) The emissions increase of the pollutant from the new source·orthe net emissions increase ofthe pollutantfrom the modification will cause air in an area, which are less 

### 1i I 

### II I



## - 126-i 

### source or modification will are less than the concentrations listed in the table in paragraph (a) ofthis subsection, or the pollutant is notlisted inthetable. (6) Permitting requirements equivalent to Section 9(2) of this administrative regulation shall not apply 

### to a stationary source or 

### modificationfor a maximum allowable increasefor nitrogen oxldes, if: 

### (a) The owneroroperatorofthe source ormodification submitted an application for a permit or permit revision underthe applicable permit program before the date on which the provisions embodying the maximum allowable increase took effect in the Ken

### tucky SIP; and (b) The cabinet subsequently determined that the application as submitted beforethat datewas complete. (7) Permitting requirements equivalent to Section 10(2) ofthis administrative regulation shall not apply to a stationary source or modificationfora maximum allowable increasefor PM1o, if: {a) The owneroroperatorofthe source or modification submttted an application for a penni! underthe applicable permit program before the provisions embodyingthe maximum allowable increases for PM,o took effectas part 

### of Kentucky's SIP; and {b) The cabinet subsequently determined that the application assubmitted beforethat datewascomplete. {8){a) The cabinet may detenninethatthe requirements for air quality monitoring of PM10 in Section 11 ofthis administrative regulation shall notapplytoa particularsourceor modification, 

### it 1. The owner or operatorofthe source or modification submitted an application for a permit underthis section on orbefore June 1, 1988; and 2. The cabinetsubsequently determinesthatthe application as submitted before that date was complete, except for the requirements for monitoring particulate matter specified in Section 11 of this administrative regulation. {b) The requirements for air quality monitoring of PM,0in Section 11 of this administrative regulation shall apply to a particular source or modification if the owner or operator of the source or modification submitted an application for a permit under 40 C.F.R. 52.21 or this administrative regulation after June 1, 1988, and not laterthan December 1, 1988. 1. The data shall have been gathered over at least the period from February 1, 1988, to the date the application becomes complete in accordance with Section 11 of this administrative regulation; and 2. If the cabinet detennines that a complete and adequate analysis can be accomplished with monitoring data over a shorter period, which maynotto be less thanfour (4) months, thedata that Section 11 of this administrative regulation requires shall have been gathered overthat shorterperiod. (9) Ifthe owner or operator of the source or modification submitted an application for a penni! under 40 C.F.R. 52.21 or this administrative regulation before the date the provisions embodying the maximum allowable increases for PM 10 took effect and the cabinet subsequently determined that the application as submitted beforethat date was complete, the requirements ofSection 9(2) of this administrative regulation shall: (a) Not apply to a stationary source or modification for a maximum allowable increasefor PM 10; and (b) Apply for the maximum allowable increases for TSP as in effecton the daytheapplicationwas submitted. Section 8. Control Technology Review. (1) A major stationary source or major modification shall meet each applicable emissions limitation under the Kentucky SIP and each applicable emissions standard and standard 

### of performance pursuantto 40 C.F.R. Parts 60and61. (2) A new major stationary source shall apply BACT for each regulated NSR pollutant for which the source has the potential to emit in significant amounts. (3)A majormodificationshall apply BACT: (a) For each regulated NSR pollutant that results in a significant net emissions increaseatthe source; and (b) Foreach proposed emissions unitatwhich a netemissions increase in the pollutant occurs as a result ofa physical change or change in the method ofoperationofthe unit. (4) For phased construction projects: {a) The cabinet shall review and modify, as appropriate, the BACT determination at the latest reasonable time occurring not later than eighteen (18) months prior to commencement of construction ofeach independent phase ofthe project; and (b) If requested by the cabinet, the owner 

## or operator of the applicable stationary source shall demonstrate the adequacy of a previous BACTdetenninationforthe source. Section 9. Source Impact Analysis. 

## illThe owner or operator of the proposed source or modification-shall demonstrate that al· lowable emissions increases from the proposed source or modification, in conjunction with all other applicable emissions increases or reductions, including secondary emissions, shall not cause or contributetoairpollution in violation of: .@}H·+H A national ambient air quality standard in an air quality control region; or 

### .{12):[{2}] An applicable maximum allowable increase over the baseline concentration in anyarea 

## m Fe 'of PM: , the 

## '""'"h i i i 

# =I

I i II 

### ' i 

## r I 

# " i II 

# tm I I I II 

# 1! I

Section 10. Air Quality Models. (1) Estimates of ambient con· centrations shall be based on the applicable air quality models, databases, and other requirements specified in 40 C.F.R. Part 51, AppendixW, "Guidelineon Air Quality Models"AppendixA. (2) If an air quality model specified in 40 C.F.R. Part 51, Appendix W, is inappropriate, the model may be modified or another model substituted. (a) The use ofa modified orsubstitute model shall be: 1. Subject to notice and opportunity for public comment under 401 KAR 52:100; and 2. Approved in writing by the U.S. EPA pursuant to 40 C.F.R. 51.166(1). (b) Methods similar to those outlined in the "Workbook forthe Comparison of Air Quality Models," specified in 401 KAR 50:040, Section 1(3), shall be used 

### to determine the comparability of air quality models. Section 11. Air QualityAnalysis. (1) Preapplicationanalysis. (a) An application for a permit or permit revision under 401 KAR 52:020 and this administrative regulation shall contain an analysis ofambient air quality in the area that the major stationary source ormajor modification will affectforeach ofthe following: 1. For a source, each pollutant that the source 

### will have the potential to emilin a significantamount; 2. For a modification, each pollutant that the modification will result in a significant netemissions increase. {b) For a pollutant that does not have a national ambient air quality standard, the analysis shall contain air quality monitoring data the cabinet determines necessarytoassess ambientairquality for that pollutant in an area that the emissions of that pollutant will affect. 

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## VOLUME 39, NUMBER 1-JULY 1, 2012 (c) For pollutants, other than nonmethane hydrocarbons, for which a standard exists, the analysis shall contain continuous air quality monitoring data gathered 

### to determine if emissions of that pollutant will cause or contributeto a violation ofthe standard or a 

### maximum allowable increase. (d)1. The required continuous air quality monitoring data shall have been gathered overa period of

## at least one (1) year and shall 

### represent at leastthe year preceding receipt ofthe application. 2. If the cabinet determines that a complete and adequate analysis may be accomplished with monitoring data gathered over 

### a period shorter than one (1) year, that period shall be not**l~ss** thanfour (4) months. (e) For analysis ofvolatile organic compounds, the owner or operator of a proposed major stationary source or major modification who satisfies all conditions of40 C.F.R. Part 51, Appendix S, section IV may provide postapproval monitoring data for ozone instead of providing preconstruction data as required in this section.

### (f) Forairquality monitoring ofPM 10 under Section 7(8){a) and (b) of this administrative regulation, the owner or operator of the source or major modification shall use a monitoring method approved by the cabinet pursuant to 40 C.F.R. Part 53 and shall estimate the ambientconcentrations of PM 10 using the data collected bythat approved monitoring method in accordance with estimating procedures approved bythe cabinet pursuantto 40 C.F.R Part 58, AppendixA. (2) Postconstruction monitoring. After construction of a major stationary source or major modification, theowneroroperatorshall conduct ambient monitoring that the cabinet determines is necessary to determine the effect emissions from the stationary source ormodification may have, orare having, on airquality in an area. (3) Operation ofmonitoring stations. During the operation ofair quality monitoring stations, the owner or operator of a major stationarysource or major modification shall meetthe requirements of 40 C.F.R. Part 58, Appendix A to satisfy the air quality analysis requirements ofthis section. Section 12. Source Information. The owner or operator of a proposed source or modification shall submit to the cabinet all information necessary

### to perform an analysis ormake a determination required under this administrative regulation. (1) The information shall include: (a) A description of the nature, location, design capacity, and typical operating schedule ofthe source or modification, including specifications and drawings showing its design and plant layout; (b) A detailed schedule for construction ofthe source or modification; and (c) A detailed description of the system of continuous emissions reduction planned for the source or modification, emissions estimates, and any information necessary to determine that BACT will be applied. (2) Upon request of the cabinet, the owner or operator shall also provide information on: (a) The air quality impact 

### of the source or modification, including meteorological and topographical data necessary to estimate the impact and (b)The airquality impacts and the nature and extentofgeneral commercial, residential, industrial, and other growth that has occurred since August?, 1977, in the area the source or modification will affect. Section 13. Additional ImpactAnalysis. (1) The owner oroperator shall provide an analysis of the impairment 

### to visibility, soils, and vegetationthatwill occuras a result 

### of: (a)The source or modification; and (b) General commercial, residential, industrial, and other growth associated with the source ormodification. (2) The owner or operator shall not be required to provide an analysis of the impact on vegetation not having significant commercial orrecreational value. (3) The owner or operator shall provide an analysis of the air quality impact projected for the area as a result of general commercial, residential, industrial, and other growth associatedwiththe source or modification. (4) Visibility monitoring. (a) If the cabinet requires monitoring of visibility in a Class I area impacted by the proposed new stationary source 

### or major modification, the monitoring shall 

### be performed using: 1. Human observations; 2. Teleradiometers; 3. Photographic cameras; 4. Nephelometers; 5. Fine particulate monitors; or 

### 6. Other U.S. EPA-approved methods. (b) The method selected shall be determined on a case-bycase basis by the cabinet pursuantto 40 C.F.R. 51.166. (c)Visibility monitoring required bythe cabinet in a Class I area shall be approved by thefederal land manager. (d) Data obtained from visibility monitoring shall be made available to the cabinet, the U.S. EPA, and the federal land manager, upon request. Section 14. Sources Impacting Class I Areas; Additional Requirements. (1) Notice to U.S. EPA and federal land managers. The cabinet shall provide; (a) Written notice to the U.S. EPA, the federal land manager, and the federal official charged with direct responsibility for management oflands within a Class I area ofa permit application for a proposed major stationary source or major modification that may affectthe Class Iarea. (b) Notice promptly after receiving the permit application. The noticeshall: 1. Include a copy ofall information relevant to the permit application; 2. Be given within thirty (30) days of receipt and at least sixty (60) days priorto the public hearing on the application fora permit to construct; and 3. Include an analysis of the proposed source's anticipated impacts on visibility inthe Class Iarea. (c) The cabinet shall also provide the federal land manager and otherfederal officialswith a copy ofthe preliminary determination and shall make availabletothem the materials used in making thatdetermination, promptly afterthe cabinet makes it. The cabinet shall also notify all affected federal land managers within thirty (30) days of receipt of an advanced notification of the permit application.(2) Federal land manager. The federal land manager and the federal official charged with direct responsibilityfor management of lands located in a Class I area shall have an affirmative responsibility to protect visibility and other air quality related values of the lands and to consider, in consultation with the cabinet, 

### if a proposed source or modification will have an adverse impact on those values. (3) Visibility analysis. (a) The cabinet shall consider an analysis performed by the federal land manager, which is provided within thirty (30) days of the notice and analysis required by subsection {1) 

### ofthis section, which showsthata proposed newmajorstationarysourceormajor modification may have an adverse impact on visibility in a Class I area. {b) Ifthecabinetfinds the analysis does not demonstrateto the cabinet's satisfaction that an adverse impact on visibility will result in the Class I area, the cabinet shall, in the public nofice required in 401 KAR 52:100, either explain that decision or give notice as to where theexplanation may be obtained. (4) Denial; impact on airquality related values. (a)Thefederal land manager oflands located in a Class I area may demonstrate to the cabinet that the emissions from a proposed source 

### or modification will have an adverse impact on the visibility and other air quality related values of those lands, even though the change in air quality resulting from emissions from the proposed source or modification will not cause or contribute to concentrations that will exceed the maximum allowable increases fora Class I area. (b) If the cabinet concurs with the demonstration specified in paragraph (a) of this subsection, the cabinet shall not issue the permitorpermit revision. (5) Class Ivariances.



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## VOLUME 39, NUMBER 1-JULY 1, 2012 (a)The owneroroperatorofa proposed source or modification may demonstrate to the federal land manager that the emissions from the source ormodification will not have adverse impacton the 

### visibility or other air quality related values of lands located in a Class I area, even though the change in air quality resulting from emissions from the source or modification will cause or contribute to concentrations that will exceed the maximUm allowable increasesfor a Class I area as specified in Section 2(1) ofthis administra

### tive regulation. {b) If limitations are necessary, the cabinet may issue the permit or permit revision with emissions limitations necessary to assure that emissions of sulfur dioxide, EM,;5, PM 10[paFlisldlate R'!at 

### tel=], and nitrogen oxides will not exceed the maximum allowable increases over minor source baseline concentration for the pollutants as specified in 40 C.F.R 51.1661pl/4)[Sestlen 2(1) 

### ef this aEiministl'8ti¥e Fegl.llatien) if: 1. The federal land manager concurs with the demonstration specified in paragraph (a) ofthis subsection and certifies accordingly; and 2. The other applicable requirements of this administrative regulation are met. (6) SUfur dioxide var"1ance by governorwith federal land manager's concurrence. (a} The owner or operator of a proposed source 

### or modification, which cannot be approved undersubsection (5} ofthissection because the source cannot be constructed without exceeding a maximum allowable increase in sulfurdioxide applicableto a Class I area for a period of twenty-four (24) hours or less, may demonstrate to the Governor of the Commonwealth of Kentucky that a variance will not adversely affect the visibiltty or other air quality related values ofthe area. (b) The governor, after consideration of the federal land manager's recommendation, if applicable, and subject to the federal land manager's concurrence, may, after notice and public hearing, granta variancefrom the maximum allowable increase. (c) Ifa variance is granted, the cabinet shall issue a permit or permit revision to the source or modification under the requirements of401 KAR Chapter 52 ifthe other applicable requirements ofthis administrative regulation are met. (7} Variance bythe governorwith the Presidenrs concurrence. (a} Ifthe Governor of the Commonwealth of Kentucky recommends a variance in which the federal land manager does not concur, the recommendations ofthe governor and the federal land managershall 

### betransmitted to the President ofthe United States ofAmerica. (b) If the variance is approved by the President, the cabinet shall issue a permit or permit revision in accordance with the requirements of 401 KAR Chapter 52, if the other applicable requirements ofthis administrative regulation are met. (8) Emissions limitations for presidential or gubernatorial variance. For a permit or permit revision issued pursuant to subsections (6) or (7) ofthis section, the source or modification shall complywith the emissions limitations necessary

### to assurethat: (a) Emissions of sulfur dioxide from the source or modification shall not, during a day on which the other applicable maximum allowable increases are exceeded, cause or contribute 

### to concentrationsthatwill exceed the maximum allowable increases overthe baseline concentration as specified inthefollowina table; and

Maximum Allowable Increase (Micrograms per cubic meter) Terrain areas Period ofE osure Low Hi h 24-hour maximum 36 62 3-hour maximum 130 221

(b) Em1ss1ons shall not cause or contnbute to concentrations that exceed other applicable maximum allowable increases for periods ofexposure oftwenty-four (24) hours or lessformore than a total of eighteen (18} days that are not necessarily consecutive during an annual period. Section 15. Public Participation. The cabinet shall follow the applicable procedures of 401 KAR 52:100, 40 C.F.R. 51.166(q), and this administrative regulation in processing applications under 

### this administrative regulation. Section 16. Source Obligation. (1) An owner or operator of a source or modification subject to this administrative regulation who begins actual construction after September 22, 1982, shall construct and operate the source or modification in accordance with the application submitted to the cabinet under this administrative regulation and 401 KAR 52:020 or underthe terms of an approval toconstruct. (2)(a) Approval to construct shall become invalid if construction:1. ls not commenced within eighteen (18) months after receipt ofthe approval: 2. Isdiscontinuedfor a period ofeighteen (18) monthsormore; 

## oc 3. Is notcompleted within a reasonable time. (b) The cabinet may extend the eighteen (18) month period upon a satisfactorydemonstration that an extension isjustified. 1. An extension shall not apply to the time period between construction of the approved phases of a phased construction project; and 2. Each phase shall commence**constructio~** within eighteen (18) months ofthe projected and approved commencementdate. (3) Approval to construct shall not relieve an owner oroperator ofthe responsibilitytocomplyfullywith 401 KAR Chapters 50 to 68 and other requirements oflocal, staie, orfederal law. (4) If a particular source or modification becomes a major stationary source or major modification solely byvirtue of a relaxation in an enforceable limitation that was established after August 7, 1980, on the capacity ofthe source or modifiCation to emit a pollutant, Sections 8 to 16 ofthis administrative regulation shall apply

### to the source or modification as though construction had not yet commenced on the source or modification. (5)(a) The provisions ofthis subsection shall apply 

### to projects at existing emissions units at a major stationarysource other than projects ata sourcewith a PAL, if: 1. There is a reasonable possibility that a project that is not part of a major modification may result in a significant emissions increase; and 2. The owneror operator elects to usethe method specified in 401 KAR 51:001, Section 1(199)(b) to calculate projected actual emissions. (b) Before beginning actual construction of a project specified in paragraph (a) of this subsection, the owner or operator shall documentand maintain a record ofthefollowing information: 1. A description ofthe project; 2. Identification ofthe emissions units forwhich emissions ofa regulated NSR pollutant could be affected bythe project; and 3. A description ofthe applicability test used to determine that the project is not a major modification for any regulated NSR pollutant, including: a. Baselineactual emissions; b. Projected actual emissions; c. Amount 

### of emissions excluded in calculating projected actual emissions and an explanation for why that amount was excluded;and d. Any applicable netting calculations. (c) For a project specified in paragraph (a) ofthis subsection, the owneroroperatorshall: 1. Monitor the emissions of any regulated NSR pollutant that could increase as a result of the project and that are emitted by any emissions unit identified in paragraph (b)2 of this subsection; 

# '"'2. Calculate and maintain a record of the annual emissions, in tons peryear on a calendaryear basis for: a. Five (5) years following resumption of regular operations afterthe change; or b. Ten (10) years following resumption of regular operations after the change if the project increases the design capacity or potential to emit 

### of the regulated NSR-pollutant at the emissions unit.(d) Ifthe emissions unit is an existing EUSGU, before beginning actual construction, the owner or operator: 1. Shall provide a copy of the information in paragraph (b) of



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## VOLUME 39, NUMBER 1-JULY 1, 2012 this subsection tothe cabinet, but shall not be required to obtain a determination from the cabinet before beginning actual construction; and 2. Shall submit a report to the cabinet within sixty (60) days afterthe end ofeach yearduring which records are required to be generated under paragraph (b) of this subsection that reports the unit's annual emissions during the calendar year that preceded submission ofthe report. (e)1. For an existing unit other than· an EUSGU, the owner or operatorshall submita report to the cabinet if: a. The annual emissions, in tons peryear, from a project identified in paragraph (a) ofthis subsection exceedsthe baseline actual emissions, as documented and maintained pursuant

### to paragraph (b)3 of this subsection, by a significant amount for that regulated NSR pollutant; and b. The emissions differ from the preconstruction projection as documented and maintained pursuant to paragraph (b)3 of this subsection. 2. The report shall be submitted within sixty (60) days afterthe end ofthe year during which records are required to be generated underparagraph (b) ofthis subsection and shall contain the following: a. The name, address, and telephone number of the major stationarysource; b. The annual emissions as calculated pursuant to paragraph (c)ofthissubsection; and c. Any other information that the owner or operator wishes to include in the report. (f) The owner or operator of the source shall make the information required to be documented and maintained under to this subsection available for review upon request for inspection by the cabinetorthe general public pursuantto401 KAR 52:100. Section 17. Environmental Impact Statements. If a proposed source or modification is subjectto action by a federal agencythat may necessitate preparation ofan environmental impact statement under42 U.S.C. 4321 to 4370d (the National Environmental Policy Act), review by the cabinet conducted in accordance with this administrative regulation shall be coordinated with the broad environmental reviews underthatAct and under42 U.S.C. 7609 to the maximum extentfeasible and reasonable. Section 18. Innovative Control Technology. (1) An owner or operator of a proposed major stationary source or major modification may make a written requestthatthe cabinetapprove a system ofinnovativecontrol technology. (2)Thecabinet may, with the consentofthe governors ofother affected states, determine that the source or modification may employasystem ofinnovativecontrol technology if: (a)The proposed control system will not cause orcontribute to an unreasonable risk to public health, welfare, orsafety in 

### its operation orfunction; (b)The owneror operatoragrees to achieve a level ofcontinuous emissions reduction equivalenttothatwhich would have been required under Section 8(2) of this administrative regulation by a date, specified by the cabinet that is not later than four (4) years from thetime ofstart-uporseven (7) yearsfrom permit issuance; (c) The source or modification shall meet requirements equivalent 

### to those in Sections 8 and 9 of this administrative regulation based on the emissions rate that the stationary source employing the system 

### of innovative control technology shall be required to meeton the date specified bythecabinet; (d) The source or modification shall not before the date specified by the cabinet: 1. Cause or contribute to a violation of an applicable national ambient airqualitystandard; or 2. Impact an area in which an applicable increment is known to beviolated; (e) Section 14ofthis administrative regulation relating to Class I areas has been satisfied for all periods during the life of the source ormodification; and (f) All other applicable requirements including those for public participation have been met. (3) The cabinet shall withdraw approval to employa system of innovativecontroltechnology 

### it {a) The proposed system fails by the specified date to achieve the required continuous emissions reduction rate; (b) The proposed system falls before the specified date and contributes to an unreasonable risk to public health, welfare, or safety; or (c) The cabinet decidesthatthe proposed system is unlikelyto achieve the required level of control orto protectthe public health, welfare, orsafety. (4) Ifa source or modification fails

### to meetthe required level of continuous emissions reduction wrthin the specified time period or the approval is withdrawn in accordance wtth subsection (3) ofthis section, the cabinet may allow the source or modification up to an additional three (3) years to meet the requirement for the application ofBACTthrough useofa demonstratedsystem 

### ofcontrol. Section 19. Permit Condition Rescission. (1){a) An owner or operator holding a permit for a stationary source 

## or modification that contains conditions pursuant to 401 KAR 51:015 or 51:016E mayrequestthatthe cabinet rescind the applicableconditions. (b) An owner or operator ofa stationary source or modification who holds a permit for the source or modification that was issued underthis administrative regulation as in effecton July 30, 1987, or an earlierversion ofthis administrative regulation, may request that thecabinet rescind the permitora particular portion ofthe permit. (2) The cabinet shall rescind a permit condition if requested and ifthe applicantcan demonstrate

### to the satisfaction ofthe cabinet thatthis administrative regulation does not apply tothe source ormodification orto a portion ofthe source or modification. Section 20. Plant-wide Applicability Limit Provisions. The cabinetshall only approvethe useofan actuals PAL (PAL)foran existing major stationary source if the PAL meets the requirements of this section. (1) General provisions. {a) An owneror operator mayexecute a projectwithouttriggering major NSR, ifthe source maintains its total source-wide emissions belowthe PAL level, meets the requirements in this section, and complies with the PAL permit. Ifthese conditions are met, a project: 1. Shall not be considered a major modification for the PAL pollutant; 2. Shall not have to be approved through Kentucky's major NSR program: and 3. Shall not be subjectto the provisions ofSection 16(4) ofthis administrative regulation concerning restrictions on relaxing enforceable emission limitations that a major stationary source used 

### to avoid applicabilityofthe major NSR program. (b) Except as provided under subparagraph (1)(a)3 of this section, a majorstationary source shall continue to comply with all applicable federal orstate requirements, emissions limitations, and work practice requirementsthatwere established priorto the effective date 

### ofthe PAL. (2) Permit application requirements.Theowneroroperatorofa major stationary source shall submit the following information to the cabinet for approval as part of an application for a permit or permit revision requesting a PAL: {a) A list of all emissions units at the source designated as small, significant, ormajor, based on their potentialto emit; (b) Identification 

### of the federal and state applicable requirements, emissions limitations, and work practice requirements that applyto each emissions unit; (c) calculations of the baseline actual emissions for the emissions units with supporting documentation, including emissions associated with startup, shutdown, and malfunction; and (d) The calculation proceduresthe owner oroperator proposes to use to convert the monitoring system data to monthly emissions and annual emissions based on a twelve (12) month rolling total for each month as required by subsection (12)(a)ofthis section. (3) Establishing a PAL. The cabinet shall establish a PAL at a major stationary source in a federally enforceable permit pursuant to the requirements ofthis section. (a) The PAL shall impose an annual emissions limitation in tons peryearthat is enforceable as a practical matterforthe entire majorstationarysource.



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## VOLUME 39, NUMBER 1-JULY 1, 2012 1. Foreach month duringthe PAL effective period afterthe first twelve (12) months of establishing a PAL, the owner or operator 

### shall demonstrate that the sum of

### the monthlyemissionsfrom each emissions unit underthe PALforthe previoustwelve (12) consecutive months is less than the PAL as a twelve (12) month average, 

### rolled monthly; and 2. For each month during the first eleven (11) months from the PAL effective date, the owner or operator shall demonstrate that the sum ofthe preceding monthlyemissionsfrom the PAL effective 

### datefor each emissions unit underthe PAL is lessthan the PAL. (b) The PAL shall be established in a PAL penni!that: 

### 1. Meets the public participation requirements in subsection (4) ofthis section; and 2. Contains all the requirements of subsection (6) ofthis seclion. (c) A PAL shall include fugitive emissions, to the extent quantifiable, from all emissions units that emit or have the potential to emitthe PAL pollutantatthe majorstationarysource. (d) Each PALshall regulate emissions ofonlyone (1) pollutant (e) Each PAL shall have a PAL effective period of ten (10) years. (f) The owner or operator of a major stationary source with a PALshall complywith the monitoring, recordkeeping, and reporting requirements of subsections (11) to (13) of this section for each emissions unit underthe PALthrough the PAL effective period. (g) Emissions reductions of a PAL pollutant that occur during the PAL effective period shall not be creditable as decreases for offsets under40 C.F.R 51.165(a)(3){ii), unless: 1. The level ofthe PAL is reduced by the amount ofthe emissions reductions; and 2. The reductionswill be creditable in theabsence ofthe PAL (4) Public participation requirements. PAls for existing major stationary sources shall be established, renewed, or increased pursuant to this subsection and the applicable procedures of 401 KAR 52:100. The cabinetshall: {a) Provide the publicwith noticeofthe proposed approval ofa PAL permit with at least a thirty (30) day period for submittal of publiccomment; and {b) Address all material comments before taking final action on a PAL penni! orpenni! revision. {5) Setting the ten (1 D) year PALlevel. (a) The PAL level for a major stationary source shall be the sum ofthe baseline actual emissions ofthe PAL pollutant for each emissions unit at the source during the chosen twenty-four (24) month period plus the applicable significant level forthe PAL pollutant under the definition for 'significant" in 401 KAR 51:001, Section 1 or under42 U.S.C. 7401-7671q, whichever is lower. {b) In establishing a PAL level for a PAL pollutant, only one {1) consecutive twenty-four (24) month period shall be used to determine the baseline actual emissionsforall existing emissions units. (c) A different consecutive twenty-four (24) month period may be usedforeach different PALpollutant. (d) Emissions associated with unitsthat were permanentlyshut down afterthe chosen twenty-four (24) month period shall be subtracted from the PAL leveL {e) Emissions from units for which actual construction began afterthe twenty-four (24) month period shall be added to the PAL level in an amount equaltothe potentialtoemit ofthe units. 

### {f) The cabinet shall specify a reduced PAL level in the PAL permit 

### to become effective on the future compliance date of any applicable federal or state regulatory requirement that the cabinet is aware ofpriorto issuanceoHhe PAL pennit. {6) Contents of the PAL permit. The PAL permit shall contain the following information: {a) The PAL pollutant and the applicable source-wide emissions limitation in tons peryear, {b) The PAL permiteffectivedateand the expiration dateofthe PALor PAL effective period; (c) Specification in the PAL pell11il that if a major stationary source owner or operatorapplies

### to renew a PAL undersubsection (9) of this section before the end of the PAL effective period, the PAL shall remain in effect until a revised PAL penni! is issued by the cabinet; (d) A requirement that emissions calculations for compliance



## - 131 purposes include emissions from startups, shutdowns, and malfunctions; (e) A requirement that. once the PAL expires, the major stationary source shall 

### be subject to the requirements of subsection 

### (8) ofthis section; 

### (f) The calculation procedures that the major stationary source owner or operator shall use to convert the monitoring system data to monthlyemissions and annual emissions based on atwelve (12) month rolling total for each month as required by subsection (12)(a)ofthis section; (g) A requirement that the major stationary source owner or operator shall monitorall emissions units in accordance with the provis'lons 

### ·m subsection (12)ofthis section·, (h) A requirement that the owner or operator shall retain the records required undersubsection (12) ofthis section on site. Records may be retained inan electronicfoll11at; (i) A requirement for the owner or operator to submit the reports required under subsection (13) ofthis section by the required deadlines; and (j) Any requirements necessary

## to implement and enforce the PAL. (7) PAL effective period and reopening ofa PALpell11il. (a) A PAL effective period shall be ten (10)years. (b)The cabinetshall reopen a PAL pell11itto: 1. Correct typographical or calculation errors made in setting the PAL; 2. Reflect a more accurate detennination of emissions used to establish the PAL; 3. Reduce the PAL 

### ifthe owner or operator of the major stationary source creates creditable emissions reductions for use as offsets under40 C.F.R 51.165(a)(3)(ii); or 4. Revise the PAL to reflect an increase in the PAL according 

## to subsection (10) ofthis section. (c) The cabinet may reopen the PAL pe!Tl1it, during the PAL effective period, to: 1. Reduce the PAL to reflect newly applicable federal requirementswith compliance datesafterthe PALeffective date; 2. Reduce the PAL consistent with any requirement enforceable as a practical matter and imposed on the major stationary source underthe SIP; and 3. Reduce the PAL 

### ifthe cabinet detell11ines that a reduction is necessaryto avoid causing or contributingto: a. A National Ambient Air Quality Standard (NAAQS) or PSD incrementviolation; or b. An adverse impact on visibility or another air quality related valuethat has been identifiedforafederal Class I area byafederal land manager and forwhich infoll11alion is available to the general public. (d) All permit reopenings shall 

### be canied out under the public participation requirements of subsection (4) of this section except for permit reopenings to correct typographical or calculation of errorsthatdo not increasethe PAL level. (8) Expiration ofa PAL A PALthat is not renewed shall expire at the end ofthe PAL effective period, and the requirements ofthis subsection shall then apply. (a) Each emissions unit, oreach group ofemissions units, that existed under the PAL shall comply with an allowable emiss'1ons limitations undera revised pell11it established asfollows: 1. An owner or operator of a major stationary source using a PAL shall submit a proposed allowable emissions limitation for each emissions unit, or each group of emissions units, by distributing the PAL allowable emissions forthe major stationary source among each oftheemissions unitsthat existed underthe PAL. a. This proposal shall be submitted to the cabinet at least six (6) months- before the expiration of the PAL permit but not sooner than eighteen (18) months before permit expiration. b. If the PAL has not yet been adjusted for an applicable requirement that became effective during the PAL effective period, as required under subsection (9)(e) of this section, distribution of allowable emissions shall be made as ifthe PAL has been adjusted. 2. The cabinet shall decide the date and procedure the owner oroperatorshall use to distributethe PAL allowable emissions. 3. The cabinetshall issue a revised pell11it incorporating allow-

## VOLUME 39, NUMBER 1-JULY 1, 2012 able limits for each emissions unit, or each group of emissions units, asthe cabinet determines is appropriate. (b) Each emissions unit shall comply with the allowable emissions limitation on a twelve {12) month rolling bas·ls. The cab'1net may approve the use of monitoring systems other than GEMS, GERMS, PEMS, or CPMS 

### _If the alternate monitoring system demonstrates compliance with the allowable emissions limitation. (c) The source shall continue 

### to comply with a source-wide, multiunit emissions cap equivalent to the level of the PAL emissions limitation until the cabinet issues the revised permit incorporating allowable limits for each emissions unit or each group of emissions units. (d) A major mocf1fication atthe majorstationarysource shall be subjectto major NSR requirements. (e) The majorstationarysource owner or operatorshall continue to comply with any slate or federal applicable requirements eliminated bythe PAL that applied during or before the PAL effective period, except for those emissions limitations established pursuantto Section 16(4)ofthis administrative regulation. 

### (9) Renewal ofa PAL (a) Public participation requirements. 

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

### (4) ofthis section in approving a request to renew a PALfor amajorstationarysource. 

### 2. The cabinetshall provide a written rationale forthe proposed PAL level for public review and comment. 

### 3. Any person may propose a PAL level forthesourceforconsideration bythe cabinet during the public review period. (b) Application deadline. 

### 1. A majorstationary source owneroroperator shall submit an application for renewal of a PAL at least six 

### (6) months before the date of permit expiration but not earlier than eighteen 

### (18) months before permit expiration. 

### 2. The deadline for application submittal shall ensure that the permitshall notexpire beforethe permit is renewed. 

### 3. Ifa complete' application for renewal is submitted within the timeframe specified in subparagraph 

### 1 of this paragraph, the PAL shall continue 

### to be effective until the revised permit with the renewed PAL is issued. (c) Application requirements. The application to renew a PAL permitshall contain:



### - 1. The information required in subsection 

### (2) ofthis section;



### 2. A proposed PAL level; 

### 3. The sum ofthe potential to emil ofail emissions units under the PALwith supporting documentation; and 

### 4. Anyother information the owneroroperatorwishesthe cabinet to consider in determining the appropriate level to renew the PAL. (d) PAL adjustment. 1. A PAL shall not exceed the source's potential to emil. The cabinet shall adjust the PAL downward if a source's potential to emit has declined belowthe PAL level. 2. The cabinet may renew the PAL at the same level as the current PAL if the sum of the baseline actual emissions for all emissions units at the source plus an amount equal 

### to the significant level is equal to or greater than eighty (80) percent of the current PAL level, unless the sum is greater than the source's potentialtoemit. 3. Ifthe sum ofthe baseline actual emissions for all emissions units 

### at the source plus an amount equal to the significant level is less than eighty (80) percent of the current PAL level, the cabinet maysetthe PAL

### at a different level ifthe level is determinedto be: a. More representative of the source's baseline actual emissions: or b. Appropriate considering thefollowing factors: (i) A1r quality needs; (ii) Advances in control technology; (iii) Anticipated economic growth in the area ofthe source; (iv) The cabinet's goal ofpromoting voluntary emissions reductions; (v) Costeffective emissions control alternatives; and {vi) Other factors as specifically identified by the cabinet in its written rationale forsettingthe PAL level. 4. The cabinet shall not approve a renewed PAL level higher than the current PAL, unless the major stationarysource has complied with the provisionsofsubsection (10)ofthis section. (e) The PAL shall be adjusted in conjunction with PAL permit renewal orTrtle 

### V permit renewal, whichever comesfirst, 

### if: 1. The compliance date for a state or federal applicable requirement that applies to the PAL source occurs during the PAL effective period; and 

### 2. Thecabinet has not alreadyadjustedforthe requirement. (10) Increasing a PAL during the PAL effective period. The cabinet may increase a PAL emissions limitation during the PAL effective period if the major stationary source complies with the provisions ofthissubsection. (a) Application procedures. To request an increase in the PAL limit for a PAL major modification, the owner or operator of the major stationarysource shall submit a complete application, which shall include: 

### 1. Identification of the emissions units contributing to the increase in emissions that cause the source's emissions

### to equal or exceed its PAL; 

### 2. Demonstration that the increased PAL, as calculated ill paragraph (c)ofthissubsection, exceeds the PAL; and a. The level of control that results from BACT equivalent controls on each significant or major emissions unit shall be determined by conducting a new BACT analysis with the application submittal, unless the emissions unit is currently required 

### to comply with a BACT or LAER requirement thatwas established within the preceding len 

### (10) years; b. If an emissions unit currently complies with BACT or LAER, the assumed control level for that emissions unit shall be equal to the current level ofBACTor LAERforthatemissions unit; and 

### 3. A statement that the increased PAL level shall be effective on the day any emissions unitthat is part ofthe PAL major modification becomes operational and beginsto emitthe PAL pollutant. (b) NSR permit and compliance requirement. The owner or operator shall obtain a major NSR permit for all emissions units contributing to the increase in emissions for the PAL major modification. 

### 1. A signtficanllevel shall not apply in deciding for which emissions units amajorNSR permit shall be obtained', and 

### 2. Emissions units thatobtain a major NSR permitshall comply with any emissions requirements resulting from the major NSR process, even though the units shall also become subject to the PAL orshall continueto be subjecttothe PAL (c) Calculation of increased PAL The cabinet shall calculate the new PAL as thesum ofthe 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 appf1cation ofBACT equivalent controls, plus the sum ofthe baseline actual emissions ofthesmall emissions units. {d) Public notice requirement. The public notice requirements ofsubsection (4) ofthis section shall be followed during PAL permit revision for an increased PAL level. (11) Monitoring requirements for PALs. (a) General requirements. 1. Each PAL permit shall contain enforceable requirements for the chosen monitoring system that accurately determines plantwide emissions of the PAL pollutant in terms of mass per unit of time; 2. A monitoring system authorized for use in the PAL permit shall be: a. Approved bythe cabinet pursuantto this subsection; and b. Based on sound science and meet generally acceptable scientific procedures fordata qualityand manipulation; 3. The data generated bya monitoring system shall meet minimum legal requirements for admissibility in ajudicial proceeding to enforcethe PAL permit; 4. The PAL monitoring system shall employone (1) or more of the four (4) general monitoring approaches meeting the minimum requirements setforth in paragraph (b) ofthis subsection; 5. The cabinet may approve an alternative monitoring approachthat meetsthe requirements ofsubparagraphs 1to 3 ofthis paragraph; and 6. Failure to use a monitoring system that meets the requirements ofthis section shall renderthe PAL invalid.



## - 132

-

## VOLUME 

## 39, NUMBER 1-JULY 1, 2012 {b) Minimum performance requirements for approved monitor

### ing approaches. If conducted in accordance with the minimum requirements in paragraphs (c) to 

### (i) ofthis subsection, the following shall be acceptable monitoring approaches: 

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

### 2. GEMS; 3. CPMS

### or PEMS; and 

### 4. Emission factors. (c) Mass balance calculations. An owner or operator using mass balancecalculationsto monitor PAL pollutantemissionsfrom 

### activities using coatings orsolvents shall: 1. Provide a demonstrated means of validating.the published 

### content ofthe PAL pollutant contained in orcreated byall materials used in oratthe emissions unit; 2. Ifthe PAL pollutant cannot be accounted for in 

### the process, assume thatthe emissions unit emits all 

### of the PAL pollutant contained in or created by any raw material or fuel used in or at the emissions unit; and 

### 3. Ifthe vendor ofthe material orfuel from which the pollutant originates publishes a range, use the highest value of the published range 

### d pollutant content to calculate the PAL pollutant emissions, unless the cabinet determines there is site-specific data or a site-specific monitoring program to support another pollutant contentwithinthe range. {d) GEMS. An owner or operator using GEMS to monitor PAL pollutant emissions shall meetthefollowing requirements: 1. GEMS shall comply with applicable performance specificationsfound in 40 G.F.R. Part60, Appendix 

### B; and 2. GEMS shall sample, analyze, and record data at least every fifteen (15) minuteswhile the emissions unit is operating. (e) GPMS or PEMS. An owner or operator using GPMS or PEMS 

### to monitor PAL pollutant emissions shall meetthe following requirements: 1. The GPMS or the PEMS shall be based on current sitespecific data demonstrating a correlation between the monitored parameter and the PAL pollutant emissions across the range of operation ofthe emissions unit; and 2. Whilethe unit is operating, each GPMS or PEMS shall sample, analyze, and record data at least everyfifteen (15) minutes, or atanother lessfrequent interval ifapproved bythe cabinet. (f) Emission factors. An owner or operator using emission factors to monitor PAL pollutant emissions shall meet the following requirements: 1. All emission factors shall be adjusted, if

### appropriate, to account for the degree of uncertainty or limitations in the factors' development; 2. The emissions unitshall operatewithinthe designated range ofuseforthe emission factor, ifapplicable; and 3. 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 six (6) months of PAL permit issuance ifthe cabinet determinesthatthe testing is required and technically practicable. (g) A source owner or operator shall record and report maximum potential emissions without considering enforceable emissions limitations or operational restrictions for an emissions unit during any period of time there is no monitoring data, unless another method for determining emissions during such periods is specified in the PAL permit. (h) Ifan owner oroperatorofan emissions unit cannot demonstrate a correlation between the monitored parameters and the PAL pollutant emissions rate at all operating points of the emissions unit, as an alternative to the requirements of 

### paragraphs (c) to (g) of this subsection, in conjunction with permit issuance the cabinet shall: 

### 1. Establish defaultvalues for determining compliance with the PAL based on the highest potential emissions reasonably estimated atoperating points: or 2. Determine that operation of the emissions unit during operating conditions 

### if there is not a correlation between monitored parameters and the PAL pollutant emissions is 

## a violation of 

### the PAL (i) Revalidation. All data used to establish the PAL pollutant shall be revalidated through performance testing or other scientifically valid meians if approved by the cabinet Validation testing shall occur at least once every five (5) years after issuance of the PAL {12) Recordkeeping requirements. {a) The PAL permit shall require an owner oroperatorto retain a copy of all records necessary to determine compliance with any requirement ofthis section and of

### the PAL, including a determination of each emissions unit's twelve (12) month rolling total emissionsforfive (5) years from the date ofthe determination. (b) The PAL permit shall require an owner oroperatorto retain a copy ofthe following records forthe duration ofthe PAL effective period plusfive (5) years: 

### 1. A copy of

### the PAL permit application and any applications for revisions tothe PAL; and 2. Each annual certification of 

### compliance pursuant to Title V andthe data usedtocertify compliance. (13) Reporting and notification requirements. The owner or operator shall submit semiannual monitoring reports and prompt deviation reports to the cabinet in accordance with 401 KAR 52:020, 52:030, and 52:040 that meetthefollowing requirements: (a) Semiannual report. The semiannual report shall be submitted to the cabinetwithin thirty (30) days ofthe end of each reporting period and shall contain: 1. The identification of owner and operator and the permit number; 2. Total annual emissions, in tpy, based on a twelve {12) month rolling total for each month in the reporting period recorded pursuanttosubsection {12)(a) ofthis section; 3. All data used in calculating the monthly and annual PAL pollutant emissions, including any quality assurance or quality control data; 4. A list 

### of any emissions units modified or added tothe major stationarysource duringthe preceding six (6) month period; 5. The number, duration, and cause ofany deviations or monitoring malfunctions, other than the time associated with zero and span calibration checks, and any corrective action following a deviation; 6. A notification of permanent or temporary shutdown of any monitoring system including: a. The reason forthe shutdown; b. The anticipated datethat the monitoring system shall be fully operational orshall be replaced with another monitoring system; c. If applicable, a statement that the emissions unit monitored bythe monitoring system continued to operate withoutthe monitoring system; and d. The calculation of

### the emissions ofthe pollutant orthe numberdetermined according to subsection (11)(g) ofthis section that is included in the permit: and 7. A signed statement bythe responsible official, as defined by 401 KAR 51:001, Section 1(210), certifying thetruth, accuracy, and completeness ofthe information provided inthe semiannual report. (b) Deviation report. The major stationary source owner or operatorshall submit reports ofany deviation orexceedance ofthe PAL requirements, including periods monitoring is unavailable. 1. A report submitted pursuant to 40 G.F.R. 70.6(a)(3)(iii)(B) shall satisfythe deviation reporting requirement; 2. The deviation report shall be submitted within the lime limits prescribed by40 G.F.R. 70.6(a)(3)(iii)(B): 3. The deviation report shall contain thefollowing information: a. The identification of

### the owner, the 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; 

# '"'

. -d. A 

### signed statement bythe responsible official, as defined by 401 KAR 51:001, Section 1(210), certifyingthetruth, accuracy, and completeness ofthe information provided in the report. {c) Revalidation results. The owner or operator shall submit to the cabinet the results of any revalidation test or method within three (3) months after completion ofthetest ormethod. (14) Transition requirements. 

## -133-

## VOlUME39, NUMBER 1-JUlY 1, 2012 (a)Afterthe U.S. EPA approves the Kentucky SIP revisions for the PAL provisions published in 67 Fed. Reg. 80186, December 31, 2002, the cabinet shall only issue a PALthatcomplies with the requirements ofthis section. 

### (b) The cabinet may supersede a PAL that was established before August 10, 2006, with a different PAL ifthe new PAL complies with the requirements ofthis administrative regulation. LEONARD K. PETERS, Secretary APPROVED BYAGENCY: June 13,2012 FILEDWITH LRC: June 14, 2012at2 p.m. 

### PUBLIC HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this administrative regulation shall be held on July24, 2012, at 10:00 a.m. (localtime) in Conference Room 2018 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 oftheir intent to attend. If no notification of intentto 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 commentsshall be accepted until close of business on July 31, 2012. Send written notification of intentto be heard atthe public hearing orwritten comments on the proposed administrative regulation to the contact person listed below. The hearingfacility is accessibleto persons with disabilities. Requests for reasonable accommodations, including auxiliary aids and services necessaryto participate in the hearing, may be made tothecontact person at leastfive (5) workdays priortothe hearing. CONTACT PERSON: Laura Lund, Environmental Technologist Ill, Division for Air Quality, 1st Floor, 200 Fair Oaks Lane, Frankfort, Kentucky 40601, telephone (502) 564-3999, ext. 4428, fax (502) 564-4666, and email Laura.Lund@ky.gov. REGULATORY IMPACTANALYSIS AND TIERING STATEMENT Contact person: Laura Lund (1) Provide a briefsummary

### of: (a) What this administrative regulation does: This administrative regulation provides for the prevention of significant deterioration (PSD) of ambient air quality, and applies 

## to major stationary sources and major modifications constructing in areas that are maintainingthe NationalAmbientAirQuality Standards (NAAQS). (b) The necessity ofthis administrative regulation: This administrative regulation is necessaryto continue to receive full approval of the PSD program into the Kentucky State Implementation Plan (SIP) and remain the PSD permitting authority. (c) How this administrative regulation conforms to the content ofthe authorizing statutes: KRS 224.10-100(5) requires the cabinet to promulgate administrative regulations for the prevention, abatement, and control of air pollution. This administrative regulation conforms to 42 U.S.C. 7470, which authorizes the federal PSD program. (d) How this administrative regulation currently assists or will assist in the effective administration of the statutes: This administrative regulation establishes the requirements for issuing permits to stationary sources in areas where the NAAQS have been attained. (2) Ifthis is an amendmentto an existing administrative regulation, provide a brief summaryof: (a) Howthe amendmentwill changethis existing administrative regulation: This amendment reflects revisions to the PSD program at the federal level to address the PM2

.5 NAAQS. This amendment includes maximum allowable increases for PM2

.5 in Class I and 11 areas at annual and 24-hour levels. This amendment also includes de minimis levels to preclude further evaluation for sources emitting or increasing their emissions by an amount less than the air quality impact levelsfor PM2.5• (b) The necessity of the amendment to this administrative regulation: These amendments are necessary to ensure consistency between state and federal programs. (c) How the amendment conforms to the content of the authorizing statutes: 42 U.S.C. 7410(a)(1) requires each state to adopt and submit a plan providing for the implementation, maintenance, and enforcement of a NAAQS. This amendment contains implementation tools for the maintenance and attainment ofthe NAAQS. KRS 224.10-100(5) requires the Cabinet to provideforthe prevention, abatement, and control ofair pollution. This amendment maintains consistency with corresponding federal requirements. (d) Howthe amendmentwill assist in the effective administration of statutes: This amendment incorporates implementation elements relating to PM2

.5, as required by 40 C.F.R. 51.166, and eliminates regulatory uncertainty between the. state and federal programs. (3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation: Any new major stationary source or any project at an existing major stationary source that commences construction after September 22, 1982, and locates in an area designated attainment or unclassifiable is affected bythis administrative regulation. (4) Provide an assessment of how the entities identified in question (3) will be impacted by eitherthe implementation ofthis administrative regulation, if new, or by the change 

### if it is an amendment: Amendments to the current regulation include the permitting elements relating to PM2.s emissions. Entities subject to this regulation are to provide PM2.5 emissions data and demonstrate that the project emissions do not cause or contribute to a violation ofthe NAAQS. In the past, DAQ has used PM1o as a surrogate for PM2.5 due to inadequate test methods and the lack of implementation elements. However, the U.S. EPA has determined that the appropriate data and technology are now available and the use of the PM1o surrogacy policy is no longer allowed. (a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment: Affected facilities' permit applications will be required to provide emissions data for PM2.s and demonstrate thatthe project's emissions do not cause or contributeto a violation ofthe PM2.s NAAQS. {b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3): Affected facilities will incur the cost necessary to obtain a permitthat includes an evaluation 

### of PM2.s emissions. (c) As a result ofcompliance, what benefits will accrue to the entities identified in question (3): When operating in compliance, the affected facilities will not be subject to enforcement actions and penalties. Furthermore, compliance with the Clean Air Act requirements preserves and improves air quality tllroughout the Commonwealth. (5) Provide an estimate of how much it will cost the administrative bodyto implementthis administrative regulation: (a) Initially: The Cabinet will not incurany additional costs for the implementation ofthis administrative regulation. (b) On a continuing basis: There will not be any additional continuing costs for the implementation of this administrative regulation. (6) What is the source of the funding to be used for the im· plementation and enforcement of this administrative regulation: The Cabinet's current operating budget will be used for the implementation and enforcement ofthis administrative regulation. (7) Provide an assessment ofwhether an increase in fees or funding will be necessary to implementthis administrative regulation, if new, or by the change if it is an amendment. No increase in fees or funding is necessary to implement this administrative regulation amendment. (8) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees. This administrative regulation does not establish, nor directly or indirectly increase, anyfees. (9) TIERING: Is tiering applied? Yes. This administrative regulation only applies to new major stationary sources, or an existing major stationary source with a project, that commences construction after September 22, 1982, and is located in an area designated attainment or unclassiflable. 

## ·134.

## VOLUME 39, NUMBER 1-JULY 1, 2012

FEDERAL MANDATEANALYSIS COMPARISON 1. Federal statute or regulation constituting the federal mandate. As 

### a SIP-approved state for the PSD program under 40 

### C.F.R 51.166, recent changes in the federal PSD program make it necessary to revise this regulation to maintain federal approvabll

### ity. 42 U.S.C. 7410(a){1) requires Kentuckyto adopt and submit a J)an providing for the implementation, ma'mtenance, and enforcementofa NAAQS. 2. State compliance standards. The stale compliance stand

### ards are found in KRS 224.10-100(5). 3. Minimum or untfonn standards contained in the federal mandate. The Clean Air Act requires applicable sources demonstrate that any major construction or major modification will not cause emissions to cause or contribute to a violation of the NAAQS. 40 C.F.R. 51.166 is the federal rule that provides the framework to establish a plan and requirements necessary to receive full approval intothe Kentucky SIP. 4. Will this administrative regulation impose stricter requirements, or additional or different responsibilities or requirements, than those required by the federal mandate? No. This regulation is no more stringent than the federal rule, codffied in 40 C.F.R. 51.166, and no more stringent than the federal mandate established by 42 U.S.C. 7401-7626. 5. Justification for the imposition of the stricter standard, or additional or different responsibilities or requirements. Stricter standards and requirements are not imposed. FISCAL NOTE ON STATE OR LOCAL GOVERNMENT 1. Does this administrative regulation relate to any program, service, or requirements of a state or local government (including cities, counties,fire departments, orschool districts)?Yes. 2. What units, parts or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation? The Division for Air Quality will continue to implement and enforce the PSD program. Also, state and local governments constructing or modifying a major stationary source in an area classified as attainment or unclassified will 

### be impacted bythis administrative regulation. 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); 40 C.F.R. 51.166; and 42 U.S.C. 7401-7671q. 4. Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for thefirst full yeartheadministrative 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, orschool districts) for the first year? This administrative regulation generates no revenue. (b) How much revenue will this administrative regulation generate for the state or local government {including cities, counties, fire departments, or school districts) for subsequent years? This administrative regulation generates no revenue. (c) How much will it costto administerthis program forthe first year? The Cabinet's existing operating budget is the source of fundingforthe implementation ofthis program. (d) How much will it cost to administerthis program forsubsequent years? There will be no additional costs for administering this program in subsequentyears. Note: Ifspecific dollarestimates cannot 

### be determined, provide a brief narrative to explain the fiscal impacts of the administrative regulation. Revenues{+/-): There is no known effect on current revenues. Expenditures (+/-): There is no known effect on current expenditures. otherExplanation: There is nofurther explanation. ENERGYAND ENVIRONMENTCABINET 

### Departmentfor Environmental Protection DivisionforAirQuality 

### (Amendment) 401 KAR 51:052. Review of new sources in or impacting upon nonattainmentareas. RELATES TO: KRS 224.20-100[fat], 224.20-110, 224.20-120, 40 C.F.R. Part 51 Appendix S, Part 51 Subpart I, 51.165, 51.166, 51.300, 51.307, 52.21, 60, 61, 70.6, Part 81 Subpart D, 81.318,42 U.S.C. 7401-7671q STATUTORY AUTHORITY: KRS 224.10-100{5), 42 U.S.C. 7401-7671q NECESSITY, FUNCTION, AND CONFORMITY: KRS 224.10- 100(5) requires the cabinet to promulgate administrative regulations for the prevention, abatement, and control of air pollution. This administrative regulation establishes requirements for the construction ormodification ofstationarysources within, orimpacting upon, areas where the national ambient air quality standards have not been attained. The provisions ofthis administrative regulation are not more stringent tha1 the corresponding federal requirements [Fe!JbllatieR, 

### 4Q C.f.R. €i1.1€i5]. Section 1. Applicability. This administrative regulation shall apply to the construction of a new major stationary source or a project that is a major rnodrtication at an existing major stationary source, which commences construction after September 22, 1982, and locates in or impacts upon an area designated nonattainment under42 U.S.C. 7407(d)(1)(A)(i). {1) The provisions ofthis administrative regulation relating to visibility protection shall also applyto major sources or major modifications in nonattainment areas that potentially have an impact on visibility in a mandatory Class I federal area. (2) Applicability tests for projects. Except as provided in subsection (3) ofthis section, a project shall 

### be a major modification fora regulated NSR pollutantonlyifthe project causes a significant emissions increase and a significant net emissions increase, as provided in paragraphs (a) and (b) ofthis subsection. (a) Prior

### to beginning actual construction, the owner or operatorshall first determine 

### ifa significant emissions Increasewill occur for the applicable type of unit being constructed or modified according to subparagraphs 1to 3 ofthis paragraph. 1. Actual-to-projected actual applicability test for projects that only involve existing emissions units. A significant emissions increase of a regulated NSR pollutant shall be projected to occur if the sum of the difference between the projected actual emissions and the baseline actual emissions for each existing emissions unit equals orexceedsthesignificantamountforthat pollutant. 2. Actual-to-potential test for projects that involve only construction of new emissions units. A signrticant emissions increase of a regulated NSR pollutant shall be projected to occur ifthe sum of the potential to emit from each new emissions unit following completion ofthe project equals or exceeds the significant amount forthat pollutant 3. Hybrid test for projects that involve multiple types of emissions units. A significant emissions increase of a regulated NSR pollutant shall be projected to occur ifthe sum of the emissions increases for each emissions unit, using the methods specified in subparagraphs 1 and 2 of this paragraph as applicable for each emissions unit, equals or exceeds the significant amount for that pollutant. (b) Prior to beginning actual construction and after completing the applicabletest in paragraph (a)ofthis subsection, the owneror operator shall determine for each regulated NSR pollutant if a significant net emissions increase will occur pursuant to 401 KAR 51:001, Section 1(144) and (218). (3) For a plant-wide applicability lill'lit (PAL) for a regulated NSR pollutant at a major stationary source, the owner or operator of the major stationary source shall comply with the applicable requirements ofSection 11 ofthis administrative regulation. Section 2. Initial Screening Analyses and Determination of Applicable Requirements. {1) Reyiew of all sources for emissions 

## -135-

## VOLUME 39, NUMBER 1-JULY 1, 2012 limitation compliance. (a) The cabinet shall examine each proposed major new source and proposed major modification to determine ifthe source or modification will meet all applicable emissions requirements in the Kentucky State Implementation Plan (SIP) and 40 C.F.R. Parts 60and61. (b) ff the cabinet determines from the application and all other available information that the proposed source or modification will not meet the applicable emissions requirements, the permit to constructshall bedenied. (2) Reviewofspecified sources ofairqualityimpact. (a) The cabinet shall determine if a proposed major stationary source or major modification will be constructed in an area designated as nonattainment pursuant to 42 U.S.C. 7407(d)(1)(A)(i) for a pollutant for which the stationary source or modification is major. (b) If a designated nonattainment area is projected to be an attainmentarea as partofan approved control strategybythe new sourcestart-up date, offsets shall not

### be required ifthe new source will notcause a newviolation. (3) Fugitive emissions sources. Sections 4 and 10 of this administrative regulation shall not apply to a source or modification**tha~**_will be_a ':"ajar stationary source or major modification only if fugitive em1ss1ons, to the extent quantifiable, are considered in calculating the potential to emit of the stationary source or modification and the source does not belong to one (1) of the following categories: (a) Coal cleaning plantswith thermal dryers; (b) Kraft pulp mills; (c) Portland cement plants; (d) Primaryzinc smelters; (e) Iron and steel mills; (f) Primaryaluminum ore reduction plants; (g) Primarycoppersmelters; (h) Municipal incinerators capable of charging more than 250 tonsof refuse perday; (i) Hydrofluoric, sulfuric, or nitric acid plants; 

### (i) Petroleum refineries; (k) Lime plants; (I) Phosphate rock processing plants; (m) Coke oven batteries; (n) Sulfur recovery plants; (o) Carbon blackplants, furnace process; (p) Primary lead smelters; (q) Fuel conversion plants; (r) Sintering plants; (s) Secondarymetal production plants; (I) Chemical process plants, except ethanol productionfacilities producing ethanol by natural fermentation under the North American Industry Classification System (NAICS) codes 325193 or 312140; (u) Fossil-fuel boilers, or combination of fossil-fuel boilers, totaling morethan 250 million BTUs perhour heat input; (v) Petroleum storage and transfer units with a total storage capacity exceeding 300,000 barrels; (w)Taconite ore processing plants; (x) Glassfiber processing plants; (y) Charcoal production plants: (z) Fossil fuel-fired steam electric plants ofmore than 250 million BTUs per hourheat input; or (aa) Another stationary source category that, as of August 7 1980, is being regulated under42 U.S.C. 7411 or7412. ' Section 3. Sources Locating in Designated Attainment or Unclassifiable Areas that Will Cause or Contribute to a Violation ofa National Ambient Air Quality Standard. (1) This section shall**ap~ly** only to**~ew** major stationary sources or new major modifications that Will locate in designated attainment or unclassifiable areas, pursuant to42 U.S.C. 7407{d)(1)(A)(ii) or(iii), ifthe source or modification will cause impacts that exceed the significance levels, as listed in the table in this subsection, at a locality that does not or will not meet the national ambient air quality standards. Pollutant Annual Avera 

### ;, Time Average 

### 24- 8-Hour 

### 3- 

### 1- Hour Hour Hour Sulfur 1.0J.I.Q/m 

### 5 25 "" 

# - Dioxide ua/m3 

### lm' PM2s 0.3 uq/m 

### 1.2 

## I ;;;;fm3 

# - PM10 1.0 1J.g/m3 

### 5 

# - I

## ~/m**3** Nitrogen 1.0 IJ.g/m3 Dioxide Carbon 

# --

# ~~" 2 Monoxide 

### m m'

### ~o/ms 2 Sourc ( ) es to which thiS sect1on applies shall meet the requirements in Section 4(1), (2) and (4) ofthis administrative regulation and may be exempt from Section 4(3) of this administrative regulation. (3) For sources of sulfur dioxide (S02), particulate matter, and carbon monoxide (CO), the determination that a newmajor source or major modification will cause or contribute to a violation of a national ambient air quality standard shall be made on a case-bycase basis using the source's allowable emissions in an approved atmospheric simulation model listed in 40 C.F.R. Part51, Appendix W, 'Guideline on AirQuality Models". (4) For sources of NOx, the initial determination that a new major source or major modification will cause or contribute to a violation of the national ambient air quality standard for nitrogen dioxide (N02)shall be made using an approved atmosphericsimulation model assuming all the nitricoxide emitted is oxidized to N02 by the time the plume reaches ground level. The initial concentration estimates may be adjusted 

### if adequate data are available to accountforthe expected oxidation rate. (5) For ozone, sources of VOCs or NOx locating outside a designated ozone nonattainment area shall be presumed to not have a significant impact on the designated nonattainment area. If ambient monitoring indicates that the area of source location is in fact nonattainment, the source shall be permitted pursuant to this administrative regulation and 401 KAR 52:020 until the area is designated nonattainmentpursuantto42 U.S.C. 7407(d)(1)(A)(i). (6)Thedeterminationthata new majorsourceormajormodification will cause or contribute to a violation of a national ambient airqualitystandard shall be made as ofthestart-update. (7)Applications for major newsources and majormodifications locating in attainment or unclassifiable areas, the operation of which will cause a new violation of a national ambient air quality standard but will not contribute 

### to an existing violation, may be approved only

### ifthefollowing conditions are met: (a)The newsourceshall: 1. Meet an emissions limitation; 2. Meet adesign, operational, orequipmentstandard; or 3. Control existing sources so that the new source will not cause aviolation ofa national ambientairqualitystandard. (b) The new emissions limitations for the new and existing sources affected shall be state and federally enforceable in accordancewith Section 6 ofthis administrative regulation. Section 4. Sources Locating in a Designated Nonattainmenl Area. This section shall apply to a new major stationary source or major modification that will 

### be constructed in an area designated as nonattainment pursuantto42 U.S.C. 7407(d)(1)(A)(i)fora pollutant for which the stationary source or modification is major. Approval to construct may 

### be granted only 

### if the conditions of this section are met. (1) The new major source or major modification shall 

### be required to meet an emissions limitation that specifies the lowest achievable emissions rate (LAER)forthe source. (2) The applicant shall demonstrate that an existing major sources owned or operated by the applicant, or an entity**control~** ling, controlled by, or under common control with the applicant, in the Commonwealth of Kentucky are in compliance with all applicable emissions limitations and standards specified in Title 401, Chapters 50 

### to 65, and 40 C.F.R. Parts 60 and 61 and 42 U.S.C. 7401-7626, or are in compliance with an expeditious state and federally enforceable compliance schedule or a court decree es- 

## ·136.

## VOLUME 39, NUMBER 1-JULY 1, 2012 tablishing a complianceschedule. 

### {3)(a) Except 

### tor VOCs or NOx emissions, emissions from existing sources in the affected area of the proposed new major 

### source or modification, whether or not under the same ownership, shall be reduced or offsetat a ratio ofat least 1:1, sothat there 

### will be reasonable further progresstoward attainment ofthe applicable national ambient airqualitystandard (NAAQS). Onlythose transactions in which the emissions being offset

### arefrom the same criteria pollutant category shall be accepted. (b) The ratio 

### of total emissions reductions ofVOCs or NOx to 

### total increased emissions ofthe same air pollutant shall be at least the ratio indicated forthe following ozone nonattainment area classifications: 1. For marginal nonattainmentareas, at least 1.1 to 1; 2. For moderate nonattainment areas, at least 1.15to 1; 3. Forserious nonattainmentareas, at least 1.2 to 1; 4. Forsevere nonattainmentareas, at least 1.3to 1; and 5. Forextremenonattainmentareas, at least 1.5to 1. (4) The emissions reductions shall provide a positive net air quality benefit in the affected area. (a) Atmospheric simulation modeling shall not be required for VOCs and NOx. (b) Except as provided in Section 3(5) of this administrative regulation, compliance with subsection (3) ofthis section and Section 5(3)(e) of this administrative regulation shall be adequate to meetthis condition. (5)The proposed majorstationarysource ormajormodification shall include in the applicationfora construction permit an analysis of the alternative sites, sizes, production processes, and environmental control techniques for the proposed source, which demonstrates that benefits ofthe proposed source significantly outweigh the environmental and social costs imposed as a result of its location, construction, or modtfication. Section 5. Determining Credit for Em"tssions Offsets. (1) The baseline for determining credit for emissions reductions or offsets shall be, considering that baseline actual emissions as defined in 401 KAR 51:001, Section 1(20), shall not be used for determining the baselineforemissions offsets: (a) The emissions limitations in effect when the application to construct or modifya source is filed; or (b) The actual emissions ofthe source from which offsetcredit is attained if: 1. The demonstration 

### of reasonable further progress and attainmentofambient air qualitystandards forthe SIP was based on actual emissions; or 2. The SIP does not contain an emissions limitation for that source orsource category. (2) Credit for emissions offsets. Credit for emissions offset purposes may be allowed for existing control ifthe existing control goes beyond the control required under 401 KAR Chapters 50 

### to 65 and applicable federal regulations. (3) General provisionsforcalculating offsetvalues. (a) Offset calculations shall be made on a pound-per-hour basis ifall facilities involved in the emissions offsetcalculations are operating attheir maximum orallowed production rate. (b) Offsets may be calculated on a tons-per-year basis if baseline emissions for existing sources providing the offsets are calculated using the actual annual operating hours forthe previous two (2) year period. (c) Ifthe cabinet requires certain hardware controls instead of an emissions limitation, baseline allowable emissions shall be based on actual operating conditions for the previous 

### two (2) year period in conjunction with the required hardware controls. (d) If the emissions limitations required by the cabinet allow greater emissions than the uncontrolled emissions rate of the source, emissions offset credit shall be allowed only for control belowthe uncontrolled emissions rate. {e) The owner or operator 

### of a new or modified major stationary source shall complywith any offset·requirement in effect under this administrative regulation to increase emissions of an air pollutant by obtaining emissions reductions ofthe air pollutantfrom: 1. The same source or other sources in the same nonattainment area; or 2. A source in another nonattainment area 

### if: a. The otherarea has an equal or highernonattainmentclassification thim thearea in whichthesource is located; and b. Emissions from the otherarea contribute

### to a violation ofthe national ambient air quality standard in the nonattainment area in whichthe source is located. (4) Calculating offsets if an applicable emissions limitation does not exist. Ifthe Kentucky SIP does not contain an emissions limitation for a source or source category, the emissions offset baseline involving the source shall be actual emissions determined under actual operating conditions for the previous 

### two (2) year period. (5) Calculating offsets for existingfuel combustion sources. (a) The emissions for determining emissions offset credit involving an existing fuel combustion source shall be the allowable emissions under the emissions limitation requirements ofthe cabinet for thetype offuel being burned when the new major source or majormodification application isfiled. (b) Iftheexisting source has switched toa differenttype offuel at some earlier date, a resulting emissions reduction, either actual orallowable, shall not be used for emissionsoffsetcredit. (c) Ifthe existing source commits to switch to a cleanerfuel at some future date, emissions offset credit based on the allowable emissions for the fuels involved shall not be allowed unless the permit is conditioned to require the use of a specified a!lernative control measure that will achieve the same degree of emissions reduction ifthe source switches back to a dirtierfuel at some later date. (6) Calculating offsets for operating hours and source shutdowns. (a) A source may be credited with emissions reductions achieved by shutting down an existing source or permanently curtailing production or operating hours below baseline levels if the 

### work force to be affected has been notified in writing of the proposed shutdown orcurta1ment. (b) Emissions reductions achieved by shutting down an existing emissions unit orcurtailing production oroperating hours: 1. May be generally credited for offsets pursuant to 40 C.F.R. 51.165(a)(3)(ii)(C)(1) 

### if: a. The reductions are surplus, permanent, quantifiable, and federally enforceable; and b. The shutdown or curtailment occurred after the last day of the baseyearforthe SIP planning process. (i)The cabinet may consider a priorshutdown or curtailmentto have occurred after the last day 

### of the base year if the projected emissions inventory used to develop an attainment demonstration explicitly includes the emissions from the previously shutdown or curtailed emission unit, pursuant 

### to 40 C.F.R. 51.165(a)(3)(ii)(C){1)(ii). (ii) Credit shall not be given for a shutdown that occurred 

### beforeAugust 7, 1977; 2. That do not meet the requirements of subparagraph 1.b. 

### of this paragraph may be generally credited pursuant 

## to 40 C.F.R. 51.165(aX3)(ii)(C)(2) if: a. The shutdown or curtailment occurred on or after the date the construction permitapplication isfiled; or b. The applicant establishes that the proposed new emissions unit is a replacement forthe shutdown or curtailed emissions unit, and the emissions reductions achieved by the shutdown orcurtailment meet the requirements of subparagraph 1.a. of this paragraph. (7) Calculating offsets for hydrocarbon substitution. An emissions offset credit shall not be allowed for replacing one volatile organic compound with another of lesser photochemical reactivity, unless the replacement compound is methane, ethane, 1,1,1- trichloroethane, ortrichlorofluoroethane. (8) Banking ofemissionsoffsetcredit. (a) New sources obtaining permits by applying offsets afterthe effective date of this administrative regulation may bank offsets that exceed the requirements of Section 5(3) ofthis administrative regulation. (b) An owner or operator 

### of an existing source that reduces its own emissions may bank a resulting reduction beyond those required by regulation for use under this administrative regulation,



## - 137

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## VOLUME 39, NUMBER 1-JULY 1, 2012

even ifthe offsetsare applied immediatelyto a newsource penn

### it. (c) Banked emissions offsets may be used under the preconstruction review program required in 42 U.S.C. 7401 to 7626, as long as these banked emissions are identified and accounted for in Kentucky's control strategy. (9) Offsetcreditfor meeting NSPS orNESHAPS. (a) 

### Ifa source is subject to an emissions limitation established 

### in a New Source Perfonnance Standard (NSPS} or a National Emissions Standard for Hazardous Air Pollutants (NESHAPS) and a different emissions limitation is required bythe cabinet, the more 

### stringent limitation shall be used as the baseline for detennining creditforemissions offsets. 

### {b) The difference in emissions between NSPS or NESHAPS and otheremissions limitations shall not be used asoffsetcredit. Section 6. Administrative Proceduresfor Emissions Offsets. (1) Emission reductions shall be enforceable by the cabinet and the U.S. EPA, and shall be accomplished by the start-up date of the newsource. (a) If emissions reductions are to be obtained in a state that neighborsthe Commonwealth fora newsourceto be located in the Commonwealth, the emissions reductions shall be enforceable by the neighboring state orlocal agencies and the U.S. EPA. (b) The necessary emissions offsets may be proposed by the ownerofthe proposed source orbythecabinet. (2) Source initiated emissionsoffsets. (a)The owneroroperatorofa source may propose: 1. Internal emissions offsets, which involve reductions from sourcescontrolled by the owner; or 2. External emissions offsets, which involve reductions from other sources, if the emissions offsets meet the requirements of this section and Section4(3) ofthis administrative regulation. (b) An internal emissions offset shall be included and made enforceable as a condition ofthesource's penni!. (c) An external emissions offset shall only be accepted if the cabinet requires the affected source to comply with a new emissions limitation to ensure that its emissions shall be reduced by a specified amount in a specified time; and the new emissions limitation shall be enforceablebythe cabinet and the U.S. EPA. (3) Cabinet initiated emissions

## offsets. (a) The cabinet maycommitto reducing emissions from mobile sources and otherexisting sourcesto provide a net airquality benefit in the impact area of a proposed newsource to accommodate the proposed newsource. (b) This emissions reduction commitment shall be reflected in the emissions limitation requirements for the new and existing sources as required bythis section. Section 7. Source Obligation. (1) An owner or operator of a source or modification subjectto this administrative regulation shall construct and operate the source or modffication in accordance with the application submitted to the cabinet underthis administrative regulation and 401 KAR 52:020 or under the terms of an approval toconstruct. (2)(a) Approval to construct shall become invalid if construction:1. Is not commenced within eighteen (18) months after receipt ofthe approval; 2. Is discontinuedfora period ofeighteen (18) months ormore; 

### oc 3. Is notcompletedwithin a reasonabletime. (b) The cabinet may extend the eighteen (18) month period upon a satisfactorydemonstration thatan extension isjustified. 1. An extension shall not apply to the time period between construction of the approved phases of a phased construction project; and 2. Each phase shall commence construction within eighteen (18) monthsofthe projected and approved commencementdate. {3)Approval toconstructshall not relieve an owneroroperator of the responsibility to comply fully with applicable provisions of 401 KAR Chapters 50 to 65 and other applicable requirements underlocal, state, orfederal law. (4) Ifa particular source or modification becomes a major

### stationarysource or majormodification solely by virtue of a relaxation in an enforceable limitation which was established afterAugust 7, 1980, on the capacity of the source or modification otherwise to emit a pollutant, the requirements of this administrative regulation shall apply to the source or modification as though construction had notyetcommenced on the source ormodification. (5)(a) The provisions of this subsection shall apply to projects at existing emissions units at a major stationary source other than projects ata sourcewith a PAL, if: 1. There is a reasonable possibility that a project that is not part of a major modification may result in a significant emissions increase; and 2. The owner or operator uses the method specified in 401 KAR 5.1:001, Section 1(199)(b)to calculate projected actual emissions. (b) Before beginning actual construction of a project specified in paragraph (a) of this subsection, the owner or operator shall documentand maintain 

## a record ofthefollowing infonnation: 1. A description ofthe project; 2. Identification ofthe emissions units forwhich emissions ofa regulated NSR pollutant maybe 

### affectedbythe project; and 3. A description ofthe applicability test used to detennine that the project is not a major modification forany regulated NSR pollutant, including: a. Baseline actual emissions; b. Projected actual emissions; c. Amount ofemissions excluded in calculating projected actual emissions and an explanation for why that amount was excluded; and 

### d. Anyapplicable nettingcalculations. (c) For a project specified in paragraph (a) of this subsection, the owneroroperatorshall: 1. Monitor the emissions of any regulated NSR pollutant that could increase as a result ofthe project and that are emitted by an emissions unit identified in paragraph (a)2 ofthis subsection; and 2. Calculate and maintain a record ofthe annual emissions, in tons peryearon a calendaryear basis, for. e. Five (5) years following resumption of regular operations afterthe change; or b. Ten (10)years ifthe project increasesthe design capacityof or potential to emit for that regulated NSR pollutant at the emissions unit. (d) Ifthe unit is an existing EUSGU, before beginning actual construction,the owneroroperator: 1. Shall provide a copy of the information in paragraph (b) of this subsectionto thecabinet; and 2. Shall not be required to obtain a detennination from the cabinet before beginning actual construction; and 3. Shall submit a report to the cabinet within sixty (60) days afterthe end ofeach year during which records are required to be generated under paragraph (b) ofthis subsection that contains the unit's annual emissions during the calendar year preceding report submittal. (e)1. For an existing unit other than an EUSGU, the owner or operatorshall submita reporttothecabinet if: a. Theannual emissions, in tons peryear, from a project identified in paragraph (a) ofthis subsection exceed the baseline actual emissions, as documented and maintained pursuant to paragraph (b)3 of this subsection, by a significant amount for that regulated NSR pollutant; and b. The emissions differ from the preconstruction projection as documented and maintained pursuant to paragraph (b)3 of this subsection. 2. The report shall be submitted

### to the cabinetwithin sixty {60) days afterthe end ofthe year during which records are required to be generated under paragraph (b) of this subsection and shall containthefollowing: a. The name, address, and telephone number of the major stationarysource; b. The annual emissions as calculated pursuant to paragraph (c) ofthis subsection; and c. Any other infonnation that the owner or operator wishes to include inthe report. 

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

### be documented and maintained underthis sub-



## - 138

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## VOLUME 39, NUMBER 

## 1- JULY

## 1, 2012 section available for review upon request for inspection by the cabinetorthe general public pursuant

## to401 KAR 52:100. Section 8. Penn

### it Condition Rescission. (1) An owneror operalorholding a permitfor a stationary source or modification that was issued pursuant to 401 KAR 51:050 or 51:051E may request that the cabinet rescind theapplicable conditions. (2) The cabinet shall rescind a permit condition ifthe owneror 

### operator: (a) Requests and demonstrates to the satisfaction ofthe cabinet that this administrative regulation does not apply

### to the source or modification orto a portion ofthe source or modification if construction 

### will have commenced afterSeptember22, 1982; and 

### (b) Demonstrates that the rescission will not violate the requirementsofSections4(3) and 7

### ofthisadministrative regulation. Section 9. Class I Areas. (1) The following areas, which were in existence on August7, 1977, shall be Class I areas and shall not be redesignated: (a) International parks; (b) National wilderness areas and national memorial parks which exceed 5,000 acres in size; and (c) National parksthatexceed 6,000 acres in size. (2) Anyotherarea, unless otherwisespecified inthe legislation creating the area, is designated Class II but may be redesignated as provided in 40 C.F.R. 51.166(g}. (3} The visibility protection requirements of this administrative regulation shall applyonlytosources that may impact a mandatory Class Ifederal area. (4) Thefollowing areas may be redesignated only as Class I or 

### II: (a) An area which as of August 7, 1977, exceeded 10,000 acres in size and was a national monument, a national primitive area, a national preserve, a national recreational area, a national wild and scenic river, a national wildlife refuge, a national lakeshoreorseashore; and (b) A national 

### park or national wilderness area established afterAugust7, 1977, which exceeds 10,000acres insize. Section 10. Protection of Visibility. (1} New source review; applicabilityand exemptions. (a) A stationary source or modification to which this section applies shall not begin actual construction without a permit that states the stationary source or modification shall meet the requirements ofthis section. (b) This sectiOn shall apply

### to construction of a new major stationary source or major modification that will be constructed in an areadesignated as nonattainment under42 U.S.C. 7407(d)(1}(A)(i) and potentially have an impact on visibility in a Class 1area. (c) This section shall apply to a major stationary source or majormodification for each pollutant subject to regulation under42 U.S.C. 7401 to 7626 that it will emit, except as provided in paragraphs (d) and (e) ofthis subsection. (d) This section shall not apply to a particular major stationary source or majormodification 

### if: 1. The source or modification is a nonprofit health or nonprofit educational institution ora major modification will occuratthe institution, and the Governor ofthe Commonwealth requests that it be exemptfrom the requirements ofthis section; and 2. The source iS a portable stationarysource that has previously received a permit underthis section and will be temporarily relocated; and (a) The emissions from the source will not exceed the allowable emissions; b. The emissionsfrom the source will not impacta Class I area or an area where an applicable increment is known to be violated; 

# '"'c. Reasonable notice is given

### to the cabinet prior

### to the relocation, identifying the proposed new location and the probable duration of operation at the new location. The notice shall be given to the cabinet not lessthan ten (10) days in advance ofthe proposed relocation unless a different time duration is previously approved bythe cabinet pursuanttothissection. (e) This section shall not apply to a major stationary source or major modification with respect to a particular pollutant, if the allowable emissions of that pollutant from the source, or the net emissions increase ofthat pollutantfromthe modification: 1.Will not impacta Class I area; 2. Will not impact an area where an applicable increment is known to beviolated; and 3.Will be temporary. {2) Visibility impact analyses. The owner or operator of a source shall provide an analysis ofthe impairment to visibility that will occur in a Class I area as a result ofthe source or modification and general commercial, residential, industrial, and other growth associated with the sourceormodification. (3) Federal land managernotification. (a} The federal land manager and the federal official charged with direct responsibility for management of Class I areas shall have an affirmative responsibility to protect the visibility and other air quality related values of the Class I lands and to consider, in consultation with the cabinet, if a proposed source or modification will have an adverse impact

## on these values. (b) The cabinet shall provide written notification to all affected federal land managers and to the federal official charged with direct responsibilityfor management of lands within the Class I area of a permit application or an advanced notice of a permit application for a proposed new major stationary source or majormodification that 

### mayaffectvisibility in a Class Iarea. The notificationshall: 1. Include a copy ofall information relevantto the permit application; 2. Be submitted pursuant to this paragraph within thirty (30) days of receipt of the permit application or advanced notice of permitapplication and 

### at least sixty {60) days priorto a public hearing on theapplicationfora permitto construct; and 3. Include an analysis of the proposed source's anticipated impacts on visibility ina Class Iarea. (c)1. The cabinetshall consider an analysis bythefederal land manager, provided within thirty (30) days of the notification and analysis required 

### by paragraph (b) ofthis subsection, that the 17Qposed newmajorstationarysource ormajormodification may have an adverse impact on visibility in a Class I area. 2. Ifthe cabinet finds that the analysis does not demonstrate, to the satisfaction ofthe cabinet, that an adverse impact on visibility will result in the Class I area, the cabinet shall, in the public hearing notice required in 401 KAR 52:100, either explain that decision or give notice as to where the explanation may be obtained. (d) Adverse impact on visibility as it applies to paragraph (c) of this subsection shall be determined on a case-by-case basis, taking into accountthe geographic extent, intensity, duration, frequency, and time ofvisibility impairments, and howthese factors correlate with the times of visitor use of the Class I area, and the frequencyand time ofnatural conditionsthat reduce visibility. {4) Public participation. The cabinet shall follow the applicable procedures of 401 KAR 52:100 in processing applications under this section and shall followthe procedures at 40 C.F.R. 52.21(r), effective July 1, 2009, tothe extentthatthe procedures

### of401 KAR 52:100 do notapply. (5) National visibility goal. (a) The cabinet shall only issue permits to those sources for which emissions will be consistent with making reasonable progress toward the national goal of preventing future, and remedying existing, impairment of visibility in Class I areas which impairment results from manmadeairpollution. (b) In making the decision to issue a permit, the cabinet shall consider: 1. The costs ofcompliance; 2. Thetime necessaryforcompliance; 3. The energy and non-air quality environmental impacts of compliance; and 4. The useful life ofthe source. (6} Monitoring. (a) The cabinet

### may require monitoring ofvisibility in a Class I area near the proposed new stationary source or major modification using human observations, teleradiometers, photographic cameras, nephelometers, fine particulate monitors, or other appropriate methods asspecified by the U.S. EPA. (b) The monitoring method selected shall be determined on a



## - 139-

## VOLUME 39, NUMBER 1-JULY 1, 2012 case-by-case basis bythecabinet. 

### (c) The cabinet shall not undertake visibility monitoring in a Class I area withoutthe approval ofthefederal land manager. 

### (d) Data obtained from visibility monitoring shall be made available to the cabinet, the federal land manager, and the U.S. EPA, upon request. Section 11. Plant-wide Applicability Limit Provisions. The cabi

### net may approve the use of an actuels PAL (PAL) for an existing major stationary source if

### the PAL meets the requirements of

### this section. 

### (1) General provisions. (a) An owneroroperator mayexecutea projectwithouttriggering major NSR, ifthe source maintains its total source-wide emissions below the PAL level, meets the requirements in this section, and complies with the PAL permit. If these conditions are met, a project: 1. Shall not be considered a major modification for the PAL pollutant; 2. Shall not have to be approved through Kentucky's major NSR program; and 3. Shall not be subject to the provisions ofSection 7(4) of this administrative regulation concerning restrictions on relaxing enforceable emissions limitations that the major stationary source used toavoid applicabilityofthe majorNSR program. (b) Except as provided under subparagraph (1)(a)3 of this section, the major stationary source shall continue to comply with all applicable federal or slate requirements, emissions limitations, and work practice requirements that were established prior to the effectivedate ofthe PAL. (c) The cabinet shall not allow a PAL for VOC or NOxfor any major stationary source located in an extreme ozone nonattainmentarea. (2) Permit application requirements. The owneroroperator ofa major stationary source shall submit the following information to the cabinet for approval as part of an application for a permit or permit revision requesting a PAL: (a) A list of all emissions units at the source designated as small, significant or major, based on theirpotential to emit; (b) Identification of the federal and state applicable requirements, emissions limitations, and work practice requirements that applyto each emissions unit; (c) Calculations of the baseline actual emissions for the emissions units withsupporting documentation; and (d) The calculation procedures the owner oroperatorproposes to use to convertthe monitoring system data to monthly emissions and annual emissions based on a twelve (12) month rolling total for each month as required by subsection (12)(a) ofthis section. (3) Establishing a PAL. The cabinet shall establish a PAL at a major stationary source in a federally enforceable permit pursuant tothe requirements ofthis section. (a) The PAL shall impose an annual emissions limitation in tons peryearthat is enforceable as a practical matterforthe entire majorstationarysource, in which: 1. Foreach month duringthe PALeffective period afterthefirst twelve (12) months of establishing a PAL, the owner or operator shall demonstrate thatthesum ofthe monthly emissions from each emissions unit underthe PALforthe previoustwelve (12) consecutive months is less than the PAL as a twelve (12) month average, rolled monthly; and 2. For each month during thefirst eleven (11) months from the PAL effective date, the owner or operator shall demonstrate that the sum ofthe preceding monthly emissionsfrom the PALeffective date foreach emissions unit underthe PAL is less than the PAL; (b) The PAL shall be established in a PAL permitthat: 1. Meets the public participation requirements in subsection (4) ofthis section; and 2. Contains all the requirements ofsubsection (6) ofthis section; (c) A PAL shall include fugitive emissions, to the extent quantifiable, from all emissions units that emil or have the potential to emitthe PAL pollutant atthe majorstationarysource; (d) Each PALshall regulate emissionsofonly one (1) pollutant; (e) Each PAL shall have a PAL effective period of ten (10) years; (f) The owner or operator of a major stationary source with a PAL shall complywith the monitoring, recordkeeping, and reporting requirements of subsections (11) to (13) of this section for each emissions unit under the PAL through the PAL effective period; ood(g) Emissions reductions of a PAL pollutant_that occur during the PAL effective period shall not be credttable as decreases for offsets under40 C.F.R 51.165(a)(3)(ii), unless: 1. The level ofthe PAL is reduced bythe amount ofthe emissions reductions; and 2.The reductions would be creditable in the absenceofthe PAL. (4) Public participation requirements. PALs for existing major stationary sources shall be established, renewed, or increased pursuant to this subsection and the applicable procedures of 401 KAR 52:100 for issuing permits or permit revisions. The cabinet shall: (a) Providethe public with noticeofthe proposed approval ofa PAL permit with at least a thirty {30) day period for submittal of public comment; and {b)Address all material comments beforetaking final action on a PAL permitorpermit revision. {5)Setting the ten (10)year PAL level. (a) The PAL level for a major statlonary source shall be the sum ofthe baseline actual emissions ofthe PAL pollutant for each emissions unit at the source during the chosen twenty-four (24) month period plusthe applicable significant level for the PAL pollutant under the definition for "significant" in 401 KAR 51:001, Section 1 or under42 U.S.C. 7401-7671q, whichever is lower. (b) In establishing a PAL level fora PAL pollutant, onlyone (1) consecutive twenty-four (24) month period shall be used to determinethe baselineactual emissionsfor all existing emissions units. (c) A different consecutive twenty-four (24) month period may be usedforeach different PAL pollutant. (d) Emissions associated with unitsthatwere permanently shut down afterthe chosen twenty-four (24) month period shall be subtractedfrom the PAL level. (e) Emissions from units for which actual construction began after the twenty-four (24) month period shall be added to the PAL level in an amountequal tothe potentialtoemitofthe units. (f) The cabinet shall specify a reduced PAL level in the PAL permit to become effective on the future compliance date of any applicable federal or stale regulatory requirement that the cabinet is aware ofpriorto issuance ofthe PALpermit. (6) Contents of the PAL permit. The PAL permit shall contain thefollowing information: (a) The PAL pollutant and the applicable source-wide emissions limitation in tons peryear; (b)The PALpermit effectivedate andthe expiration date ofthe PAL or PALeffective period; (c) Specification in the PAL permit that if a major stationary source owneroroperatorapplies to renew a PAL under subsection {9) of this section before the end of the PAL effective period, the PAL shall remain in effect until a revised PAL permit is issued by thecabinet; (d) A requirement that emissions calculations for compliance purposes include emissions from startups, shutdowns, and malfunctions; (e) A requirement that, once the PAL expires, the major stationary source shall be subject to the requirements of subsection (8) ofthis section; 

### (f) The calculation procedures that the major stationary source owner or operator shall use to convert the monitoring system data to monthlyemissions and annual emissions based on a twelve (12) month rolling total for each month as required by subsection (12)(a) ofthis section; (g) A requirement that the major stationary source owner or operator shan monitor all emissions units in accordance with the provisions in subsection (12) ofthis section; (h) A requirement that the owner or operator shall retain the records required undersubsection (12) ofthis section on site. Records may be retained in an electronicformat; 

### (i) A requirement for the owner or operator to submit, by the reports required under subsection (13) of this section by the required deadlines; and 

### 0) Any requirements necessary to implement and enforce the



## - 140

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## VOLUME 39, NUMBER 1-JULY 1, 2012 PAL. (7) PAL effective period and reopening ofa PAL permit. {a)A PAL effective period shall beten (10)years. {b) The cabinetshall reopen a PAL permitto: 1. Correct typographical or calculation errors made in setting the PAL; 

### 2. Reflect a more accurate determination ofemissions used to establishthe PAL; 3. Reduce the PAL if the owner or operator of the major stationary source creates creditable emissions reductions for use as offsets under40 C.F.R. 51.165(a)(3)(ii); or 4. Revise the PAL to reflect an increase in the PAL according tosubsection (10) ofthis section. (c) The cabinet may reopen the PAL permit, during the PAL effective period, to: 1. Reduce the PAL to reflect newly applicable federal requirementswith compliance dates afterthe PAL effectivedate; 

### 2. Reducethe PALconsistentwith anyother requirement: a. That is enforceable as a practical matter; and b. That may be imposed on the major stationary source under the SIP; and 3. Reduce the PAL ifthe cabinet determines thata reduction is necessaryto avoidcausing orcontributingto: a. A National Ambient Air Quality Standard {NAAQS) or PSD incrementviolation; or b. An adverse impact on visibility or another air quality related valuethat has been identified forafederal Class 1area by afederal land manager and forwhich information is available to the general public. (d) All permit reopenings shall be carried out underthe public participation requirements of subsection {4) of this section except for permit reopenings to correct typographical or calculation of errorsthatdo not increasethe PAL level. (8) Expiration of a PAL A PALthat is not renewed shall expire atthe end ofthe PAL effective period and the requirements ofthis subsection shallthen apply. (a) Each emissions unit, or each group ofemissions units, that existed under the PAL shall comply with an allowable emissions limitation undera revised permitestablished asfollows: 1. An owner or operator of a major stationary source using a PAL shall submit a proposed allowable emissions limitation for each emissions unit, or each group of emissions units, by distributing the PAL allowable emissions for the major stationary source among each oftheemissions units thatexisted underthe PAL a. This proposal shall be submitted to the cabinet at least six (6) months before the expiration ofthe PAL permit but not sooner than eighteen {18) months before permitexpiration. b. Ifthe PAL has not yet been adjusted for an applicable requirement that became effective during the PAL effective period, as required under subsection (9)(e) of this section, distribution of allowable emissions shall be made as ifthe PAL has been adjusted. 2. The cabinet shall provide the date and procedure the owner oroperatorshall useto distributethe PALallowableemissions. 3. The cabinetshall issue a revised permit incorporating allowable limits for each emissions unit, or each group of emissions units, asthecabinet determines isappropriate. (b) Each emissions unit shan comply with the allowable emissions limitation on a twelve (12) month rolling basis. The cabinet may approve the use of monitoring systems other than GEMS, GERMS, PEMS, or CPMS if the alternate monitoring system demonstratescompliancewith the allowable emissions limitation. (c) The source shall continue to comply with a source-wide, multiunit emissions cap equivalent to the level of the PAL emissions limitation until the cabinet issues the revised permit incorporating allowable limits for each emissions unit or each group of emissions units. (d) A major modification atthe majorstationarysource shall be subjectto majorNSRrequirements. (e) The major stationarysource owneroroperatorshall continue to comply with any state or federal applicable requirements eliminated bythe PAL that applied during or beforethe PAL effective period, exceptfor those emissions limitations established pursuantto Section 7{4)ofthis administrative regulation.



## - 141 (9) Renewal ofa PAL (a) Public participation requirements. 1. The cabinet shall follow the public participation procedures specified in subsection (4) ofthis section in approving a requestto renewa 

### PAL fora majorstationarysource. 

### 2. The cabinet shall provide awritten rationale forthe proposed PAL level for public review and comment. 

### 3. Any person may propose a'PAL level forthe sourcefor consideration bythe cabinet during the public review period. (b)Application deadline. 

### 1. A major stationary source owneror operatorshall submit an application for renewal ofa PAL at least six (6) months before the 

### dale of 

### permit expiration but not earlier than eighteen {18) months before permit expiration. 2. The deadline for application submittal shall ensure that the permit shall not expire beforethepermit is renewed. 

### 3. If a complete application for renewal is submitted within the timeframe specified in subparagraph 1 ofthis paragraph, the PAL shall continue to 

### be effective until the revised permit with the renewed PAL is issued. (c) Application requirements. The application to renew a PAL permitshall contain: 1.The information required in subsection 

### (2) ofthissection; 

### 2.A proposed PALlevel; 

### 3. The sum ofthe potential to emit ofall emissions units under the PALwith supporting documentation; and 

### 4. Any other information the owner oroperatorwishes the cabinet to consider in determining the appropriate level to renew the PAL (d) PALadjustment. 1. A PAL shall not exceed the source's potential to emit. The cabinet shall adjust the PAL downward to a level not greater than the potential to emit if a source's potential to emit has declined belowthe PAL level. 

### 2. The cabinet may renew the PAL at the same level as the current PAL without considering the factors specified in subparagraph 

### 3 of this section, 

### ifthe emissions level calculated according to subsection (5) ofthis section is equal to or greater than eighty (80) percentofthe PAL level; or 3. The cabinet maysetthe PAL at a level that is determined to be: a. More representative of the source's baseline actual emissions; or b. Appropriate consideringthefollowing factors: (i)Airquality needs; (ii) Advances in controltechnology; (iii) Anticipated economic growth in the area ofthe source; (iv)The cabinet's goal ofpromoting voluntary emissions reductions; or (v) Other factors as specifically identified by the cabinet in its written rationaleforsettingthe PAL level. 4. The cabinet shall not approve a renewed PAL level higher than the current PAL, unlessthe major stationarysource has complied with the provisionsofsubsection (10) ofthis section. {e) The PAL shall be adjusted in conjunction with the PAL permit renewal orTitle V permit renewal, whichever comesfirst, if: 1. The compliance date for a state or federal applicable requirement that applies to the PAL source occurs during the PAL effective period; and 2. The cabinet has notalreadyadjustedforthe requirement. (10) Increasing a PAL during the PAL effective period. The cabinet may increase a PAL emissions limitation during the PAL effective period if the major stationary source complies with the provisions ofthissubsection. (a) Application procedures. To request an increase in the PAL limit for a PAL major modification, the owner or operator of the major stationary source shall submit a complete application, which shall include: 1. Identification of the emissions units contributing to the increase in emissions forthe PAL major modification; 2. Demonstration that increased PAL, as calculated in paragraph (c)ofthis subsection exceedsthe PAL, and: a. The level of control that results from BACT equivalent controls on each significant or major emissions unit shall be deter-

## VOLUME 39, NUMBER 1-JULY 1, 2012 mined byconducting a new BACT analysis when the application is submitted, unlessthe emissions unit is currently required tocomply with a BACT or lAER requirement that was established within the preceding ten 

### (10) years. b. Ifan emissions unit currently complies with BACT or LAER, the assumed control level for that emissions unit shall be equal to 

### the current level of BACTor LAERforthat emissions unit; and 3. A statement that the increased PAL level shall 

### be effective on the day any emissions unit that is part ofthe PAL major modification becomes operational and begins to emitthe PALpollutant. (b) NSR permit and compliance requirement. The owner or operator shall obtain a major NSR permit for all emissions units contributing to the increase in emissions for the PAL major modification. 1. A significant level shall not apply in deciding forwhich emissions units a major NSR permitshall be obtained; and 2. Emissions units thatobtain a major NSR permitshall comply with any emissions requirements resulting from the major NSR process, even though the units shall also become subject to the PALorshall continueto 

### besubjectto the PAL. (c) Calculation of increased PAL. The cabinet shall calculate the new PAL as the sum ofthe allowable emissions foreach modified or new emissions unit, plus the sum df the baseline actual emissions of the significant and major emissions units assuming application of BACT equivalent controls, plus the sum ofthe baseline actual emissions ofthe small emissions units. (d) Public notice requirement. The public notice requirements ofsubsection (4) ofthissection shall befollowed during PAL permit revision foran increased PAL level. (11) Monitoring requirementsfor PALs. (a) General requirements. 1. Each PAL permit shall contain enforceable requirements for the chosen monitoring system that accurately determines plantwide emissions ofthe PAL pollutant in terms of mass per unit of time; 2. A monitoring system authorized for use in the PAL permit shall be: a. Approved by thecabinet pursuanttothissubsection: and b. Based on sound science and meet generally-acceptable scientific proceduresfordataqualityand manipulation; 3. The data generated by a monitoring system shall meet minimum legal requirementsforadmissibllity in ajudicial proceeding to enforcethe PAL permit; 4. The PAL monitoring system shall employ one (1) or more of the four (4) general monitoring approaches meeting the minimum requirements setforth in paragraph (b) ofthis subsection; 5. The cabinet may approve an alternative monitoring approach that meetsthe requirements ofsubparagraphs 1 to 3 ofthis paragraph; and 6. Failure to use a monitoring system that meets the requirements ofthissection shall renderthe PAL invalid. (b) Minimum performance requirements for approved monitoring approaches. If conducted in accordance with the minimum requirements in paragraphs (c) to (i) ofthis subsection, the following shall 

### beacceptable monitoring approaches: 1. Mass balance calculations for activities using coatings or solvents: 2. GEMS; 3. CPMS or PEMS; and 4. Emissions factors. (c) Mass balance calculations. An owner or operator using mass balance calculations to monitor PAL pollutantemissionsfrom activities using coatings orsolvents shall: 1. Provide a demonstrated means of validating the published content ofthe PAL pollutantcontained in orcreated byall materials used in oratthe emissions unit; 2. Ifit cannot 

### be accounted for in the process, assumethatthe emissions unitemits all ofthe PAL pollutantcontained in orcreated byany raw material orfuel used in oratthe emissions unit; and 3. Ifthe vendor ofthe material orfuel from which the pollutant originates publishes a range, use the highest value of the published range of pollutant content 

## to calculate the PAL pollutant emissions, unless the cabinet determinesthere is site-specific data or a site-specifiC monitoring program to support another pollutant contentwithinthe range. (d) GEMS. An owner or operator using GEMS to monitor PAL pollutantemissions shall meetthe following requirements: 1. GEMS shall comply with applicable Performance Specificationsfound in 40 C.F.R. Part60, AppendixA; and 2. GEMS shall sample, analyze, and record data at least every fifteen (15) minuteswhilethe emissions unit is operating. (e) CPMS or PEMS. An owner or operator using CPMS or PEMS to monitor PAL pollutant emissions shall meet the following requirements: 1. The CPMS or the PEMS shall be based on current sitespecific data demonstrating a correlation between the monitored parameter and the PAL pollutant emissions across the range of operation ofthe emissions unit; and 2. While the unit is operating, each CPMS or PEMS shall sample, analyze, and record data 

### at least everyfifteen (15) minutes, or atanother less frequent interval approved bythecabinet. 

### (f) Emissions factors. An owner or operator using emissions factorsto monitor PAL pollutant emissions shall meet the following requirements: 1. All emissions factors shall be adjusted, if appropriate, to account for the degree of uncertainty or limitations in the factors' development; 2. The emissions unitshall operatewithinthe designated range ofuseforthe emissionsfactor, ifapplicable; and 3. The owner or operator of a significant emissions unit that relies on an emissions factorto calculate PAL pollutant emissions shall conduct validation testing to determine a site-specific emissions factor within six (6) months of PAL permit issuance if the cabinetdetermines thatthetesting is required and technically practicable. (g) A source owner or operator shall record and report maximum potential emissions without considering enforceable emissions limitations or operational restrictions for an emissions unit during any period of time there is no monitoring data, unless another method for determining emissions during the periods is specified in the PAL permit. (h) Ifan owner oroperatorofan emissions unitcannot demonstrate a correlation between the monitored parameters and the PAL pollutant emissions rate at all operating points of the emissions unit, as an alternative to the requirements in paragraphs (c) to (g) of this subsection, in conjunction with permit issuance the cabinetshall: 1. Establish default values fordetermining compliance with the PAL based on the highest potential emissions reasonably estimated atoperating points ifa correlation cannot be demonstrated; or 2. Ifthere is not a correlation between monitored parameters and the PAL pollutant emissions, determine that operation of the emissions unitduring operating conditions is a violation ofthe PAL. (i) Revalidation. All data used to establish the PAL pollutant shall be revalidated through performance testing or other scientifically valid means approved by the cabinet. Validation testing shall occurat leastonceeveryfive (5) years after issuance 

### ofthe PAL (12) Recordkeeping requirements. (a) The PAL permitshall require an owneroroperatorto retain a copy of all records necessary

## to determine compliance with any requirement ofthis section and ofthe PAL, including a determination of each emissions unit's twelve (12) month rolling total emissionsforfrve (5)years from the daleofthedetermination. (b) The PAL permitshall require an owner or operatorto retain a copyofthe following records forthe duration ofthe PALeffective period plusfive (5) years: 1. A copy of the PAL permit application and any applications for revisions to the PAL; and 2. Each annual certification of compliance pursuant

## to Title V andthe data used to certifythe compliance. (13) Reporting and notification requirements. The owner or operator shall submit semi-annual monitoring reports and prompt deviation reports tothe cabinet in accordarice with401 KAR Chapter52 that meetthe following requirements: (a) Semiannual report. The semiannual report shall be submitted to the cabinet within thirty (30) days ofthe end of each reporting period and shall contain: 1. The identification of owner and operator and the permit



## - 142-

## VOLUME 39, NUMBER 1-JULY 1, 2012 number; 

### 2. Total annual emissions, in tpy, based on a twelve (12) month rolling total for each month in the reporting period recorded pursuanttosubsection {12)(a) ofthis section; 

### 3. All data used in calculating the monthly and annual PAL 

### pollutant emissions, including any quality assurance or quality control data; 4. A list of any emissions units modtfied or added to the major stationarysource during the preceding six (6} month period; 5. The number, duration, and cause 

### ofanydeviations or monitoring malfunctions, other than the time associated with zero and span calibration checKs, and anycorrective actionfollowing a deviation; 6. A notification of permanent or temporary shutdown of any monitoring system including: a. The reasonforthe shutdown; b. The anticipated datethatthe monitoring system shall be fully operational orshall be replaced with anothermonitoringsystem; c. If applicable, a statement that the emissions unit monitored bythe monitoring system continued to operate without the monitoring system; and d. The calculation ofthe emissions ofthe pollutant orthe number determined according to subsection (11}(g} ofthis section that is included inthe penni!; and 7. A signed statement bythe responsible official, as defined by 401 KAR51:001, Section 1(210), certifying thetruth, accuracy, and completeness ofthe infonnation provided in the semiannual report. (b) Deviation report. The major stationary source owner or operatorshall submit reports ofanydeviation orexceedance ofthe PAL requirements, including periods monitoring is unavailable. 1. A report submitted pursuant 

### to 40 C.F.R. 70.6(a)(3)(1ii)(B) shall satisfythis deviation reporting requirement; 2. The deviation report shall be submitted within the time limits prescribed by the applicable program implementing 40 C.F.R. 70.6(a)(3){iii)(B); 3. The deviation report shall contain thefollowing information: a. The identification ofthe owner, the operator, and the penni! number;

. b. The PAL requirement that experienced the deviation orthat was exceeded; c. Emissions resulting from the deviation or the exceedance; 

### .od d. A signed statement by the responsible official, as defined by 401 KAR 51:001, Section 1{210), certifying the truth, accuracy, and completeness ofthe lnfonnation provided in the report. {c) Revalidation results. The owner or operator shall submit to the cabinet the results of any revalidation test or method within three (3) months aftercompletion ofthetestormethod. (14)Transition requ·lrements. (a)Afterthe U.S. EPAapproves the Kentucky SIP revisions for the PAL provisions published at 67 Fed. Reg. 80186, December 31, 2002, the cabinetshall only issue a PAL that complies with the requirements ofthis section. (b) The cabinet may supersede a PAL that was established before August 10, 2006, with a PAL that complies with the requirementsofthis administrative regulation. LEONARD K. PETERS, Secretary APPROVED BYAGENCY: June 13, 2012 FILEDWITH LRC: June 14, 2012 at2 p.m. PUBLIC HEARING AND PUBLIC COMMENT PERIOD: A public hearing on this administrative regulation shall be held on July 24, 2012, at 10:00 a.m. {local time) in Conference Room 201 ·B on the first floor of the Division for Air Quality at 200 Fair Oaks Lane, Frankfort, Kentucky. Individuals interested in being heard at this hearing shall notify !his agency five (5) workdays prior to the hearing oftheir intentto attend. If no notification of intentto attend the hearing is received bythat date, the hearing may be canceled. This hearing is open to the public. Any person who wishes to be heard shall be given an opportunity to comment on the proposed administrative regulation. If you 

### do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted until close of business on July 31, 2012. Send written notfficalion of intentto be heard at the public hearing orwritten comments on the proposed administrative regulation to the contact person listed below. The hearingfacilitY is accessible to personswith disabilities. Requests for reasonable accommodations, including auxiliary aids and services necessaryto participate in the hearing, may be made tothecontact personatleastfive {5) workdays priortothe hearing. CONTACT PERSON: laura Lund, Environmental Technologist Ill, Division for Air Quality, 1st Floor, 200 Fair Oaks Lane, Frankfort, Kentucky 40601, phone (502) 564-3999, ext. 4428, fax (502) 5644666, and email Laura.Lund@ky.gov. REGULATORY IMPACTANALYSISANDTIERING STATEMENT contactperson: laura Lund (1) Provide a briefsummaryof: (a) What this administrative regulation does: This administrative regulation establishes air quality permitting requirements for the construction ormodification ofmajorstationarysources located within, or impacting upon, areas where the national ambient air qualitystandards have not been demonstratedto be attained. (b) The necessity ofthis administrative regulation: This administrative regulation is necessary to ensure that the addition 

### of stationary source emissions will not contribute significantly to Kentucky's achievement of reasonable further progress of e national ambient air quality standard for an area currently not attaining that standard. ·This administrative regulation provides for economic growth in a nonattainmenl area without impeding Kentucky's progresstowards cleaner air and attainment ofthe applicable national ambientairqualitystandards (NAAQS). (c) Howthis administrative regulation confonns 

### to the content of the authorizing statutes: KRS 224.10-100(5) requires the Cabinet to provide for the prevention, abatement, and control 

### of air pollution. 42 U.S.C 7503 requires air quality permits issued to sources located or impacting a nonattainment area to include provisionsforthe attainment ofthe national primaryambient airquality standards and reasonablefurther progress ofthe air quality, which are contained ln this administrative regulation. This regulation confonns to the statutes because it is no more stringent than the federal mandate. {d) Howth.ls adm·lnistrative regulation currently assists or will assist in the effective administration of the statutes: This administrative regulation provides the requirements for issuing pennits to stationary sources in areas where the NAAQS have not been attained. (2) Ifthis is an amendmentto an existing administrative regulation, providea briefsummaryof; (a) Howthe amendmentwill changethis existing administrative regulation: This amendment incorporates significant impact levels (SILs)for PMo.5· (b) The necessity of the amendment to this administrative regulation: The PM2.5 SILs included in this amendment are necessary to ensure consistency between state and federal New Source Review (NSR) permitting programs. {c) Howthe amendmentconforms to the content ofthe authorizing statutes: KRS 224.10-100(5) requires the Cabinet to provide forthe prevention, abatement, and control ofair pollution. 42 U.S.C 7503 requires that permits issued in a nonattainment area contain provisions for the attainment of the national primary ambient air qualitystandards and reasonablefurther progressofthe airquality, which are contained in this administrative regulation. {d) Howthe amendment will assist in the effective administration 

### of statutes: This amendment incorporates SILs for**PM2.~.** as required by40 C.F.R. 51.165. (3) Listthetype and numberofindividuals, businesses, organizations, orstate and local governments affected bythis administrative regulation. Any new major stationary source or any project at an existing major stationary source that commences construction afterSeptember22, 1982, and locales in an area designated nonattainment is affected bythis administrative regulation. This regulation does not affect sources in Jefferson County, which are regulated underthe Louisville MetroAir Pollution Control District. There are currently6 counties in Kentucky (not including Jefferson County) classified as nonatlainmentforthe 1997 annual particulate matter NAAQS {Boone, Boyd, Bullitt, Campbell, Kenton, and a portion 

## ·143.

## VOLUME39, NUMBER 1-JULY1,2012 of Lawrence). This amendment affects new major stationary sources or new major modifications locating in areas that have attained the NAAQS, but cause impacts that will exceed the amounts of PM2.s listed in an area that does not orwill not attain the NAAQS. (4) Provide an assessment of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if 

### new, or by the change if 

### it is an amendment: Changes to the current regulation will include the permitting of 

### PM2.s and require affectedfacilities to provide data on their PM20 emissions. In the past, DAQ has used PM10 as a surrogate for PM2.s due to 

### inadequate test methods and the lack of implementation elements. However, the U.S. EPA has determined thatthe appropriate data andtechnology are now available and the use ofthe PM1osurrogacy policy is no longerallowed. (a) Listthe actionsthat each ofthe regulated entities identified in question (3) will have to take to comply with this administrative regulation oramendment: Affected facilities' permit applications will be required to provide emissions data for PMu and demonstrate that the project's emissions do not cause or contribute to a violation ofthe PM2.sNAAOS. (b) In complying with this administrative regulation or amendment, how much will 

### it cost each of the entities identified in question (3): Affected facilities will incur the cost necessary

## to obtain a permitthat includes an evaluation of PM2

.5

### emissions. (c) 

### As a result of compliance, what benefits will accrue to the entities identified in question (3): When operating in compliance, the affected facilities will not be subjectto enforcement actions and penalties. Furthermore, compliance with the Clean AirAct requirements preserves and improves air quality throughout the Commonwealth. (5) Provide an estimate ofhow much it will costthe administrative bodyto implementthis administrative regulation: (a) Initially: The Cabinet will not incur any additional costs for the implementation ofthis administrative regulation. (b) On a continuing basis: Therewill not be anyadditional continuing costs for the implementation of this administrative regulation.(6) What is the source ofthe funding to be used forthe implementation and enforcement of 

### this administrative regulation: The Cabinet's current operating budgetwill be usedforthe implementation and enforcementofthis administrative regulation. (7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if

### new, or by the change if it is an amendment. No increase in fees orfunding is necessary to implementthis administrative regulation amendment. (8) State whether or not this administrative regulation established any fees or directly or indirectly increased any fees. This administrative regulation does not establish, nordirectlyor indirectly increase, anyfees. (9) TIERING: Is tiering applied? Yes. This administrative regulation only applies to new major stationary sources, or an existing major stationary source with a project, that commences construction after September22, 1982, and is located or impacting upon an area designated nonattainment. FEDERAL MANDATE ANALYSIS COMPARISON 1. Federal statute or regulation constituting the federal mandate. 

### As a SIP-approved state for the NSR program under 40 C.F.R. 51.165, recent changes in thefederal NSR program make it necessary to revise this regulation to maintain federal approvability. 42 U.S.C. 7410(a)(1) requires Kentucky to adopt and submit a plan providing for the implementation, maintenance, and enforcement

### of a standard. 2. State compliance standards. The state compliance standards are found in KRS 224.1'0-100(5). 3. Minimum or uniform standards contained in the federal mandate. The federal mandate governing nonattainment NSR requires sources subject tothis regulation to demonstrate that any construction or modification of a major stationary source will not cause a net increase in air pollution, that emissions resulting from the projectwill not create a delay in attainmentofthe NMOS, and that the source will install and use control technologythat achieves the lowest achievable emissions rate (lAER). The Clean AirAct is the federal mandate that requires states to have a plan for the attainment of 

### the national primary ambient air quality standards and reasonable further progress ofthe air quality. 40 C.F.R. 51.165 is the federal rule that provides authority forthe Cabinet to establish a plan and promulgate administrative regulation requirements to ensure compliance. 4. Will this administrative regulation impose stricter requirements, or additional or different responsibilities or requirements, than those required bythe federal mandate? No. This regulation is no more stringent than the federal rule, codified in 40 C.F.R. 51.165, and no more stringent than the federal mandate established by 42 u.s.c.7401-7626. 5. Justification for the imposition of 

### the stricter standard, or additional or different responsibilities or requirements. Stricter standards and requirements are not imposed. FISCAL NOTE ON STATE OR LOCAL GOVERNMENT 1. Does this administrative regulation relate to any program, service, or requirements of a state or local government (including cities, counties, fire departments, orschool districts)?Yes. 2. What units, parts or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation? The Division for Air Quality will continue to implement and enforce the New Source Review (NSR) program. Also, state and local governments constructing or modifying a major stationary source in, or impacting upon, an area where the national ambient air quality standards have not been attained will be 

### impacted by this administrative regulation. 3. Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation. KRS 224.10-100(5), 40 C.F.R. 51.165, and 42 U.S.C. 7401-7671q. 4. Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for thefirstfull yearthe 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, orschool districts) forthe first year? This administrative regulation generates no revenue. (b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years? This administrative regulation generates no revenue. (c) How much will it costto administerthis program forthe first year? The Cabinet's existing operating budget continues as the source offunding forthe implementation ofthis program. (d) How much will it cost to administerthis program for subsequentyears? Therewill be no additional costs for administering the program in subsequentyears. Note: Ifspecific dollarestimates cannot be dermined, provide a brief narrative 

### to explain the fiscal impacts of the administrative regulation. Revenues(+/-): There is no known effecton current revenues. Expenditures (+/-): There is no known effect on current expenditures. Other Explanation: There is 

### no further explanation.

JUSTICE AND PUBLIC SAFETYCABINET DepartmentofCorrections (Amendment) 501 KAR 6:130.Western Kentucky Correctional Complex. 

### RElATES TO: KRS Chapters 196, 1g7, 439 STATUTORY AUTHORITY: KRS 196.035, 1g1.020, 439.470, 439.590, 439.640 NECESSITY, FUNCTION, AND CONFORMITY: KRS 196.035, 197.020,[43g_470,] 439.590 and 439.640 authorize the Justice and 

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