REGULATIONS AS EFFECTIVE ON 

DECEMBER 7, 2012 
401 KAR 51:001. Defmitions for 401 KAR Chapter 51. Page 1 of 13 

401 KAR 51:001. Definitions for 401 KAR Chapter 51. 

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 

STATUTORY AUTHORITY: 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 more stringent than the corresponding federal 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 of emissions of a regulated NSR pollutant from an emissions unit as determined according to the followmg: 

1. Actual emissions as of a particular date 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 dale 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 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 

equivalency determination pursuant to 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 of the unit on that date; 

'"' (d) Does not mean: 

1. Calculating if a significant emissions increase has occurred; or 

2. Establishing a PAL under 401 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 of all emissions units at the source that emit or have the potential to emil the 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 of entities that emits or may emit an air 

contaminant into the outdoor atmosphere. 

(6) "Air contaminant" is defined by KRS 224.01-01 0(1). 

(7) "Air pollutant" means air contaminant. 

(8) "Air pollution" is defined by KRS 224.01-01 0(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 of the normal product of the source or to its normal operation. 

(1 0) "Allocate" or "allocation" means the number of NOx allowances to be credited to 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 of the following: 

1. The applicable standards codified in 40 C.F.R. Parts 60 and 61; 

2. The applicable SIP emissions limitations, including those with a future compliance date; or 

3. The emissions rates specffied as a federally enforceable permit condition, induding those with a future compliance date; or 

(b) For an actuals 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 to emit, and the most stringent provision of paragraph (a)1. through 3. of this subsection. 

(13) "Alteration" means: 

(a) The installation or replacement of air pollution control equipment at a 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 previously emitted. 

(14) "Alternative method" is defined by 40 C.F.R. 60.2. For purposes of this definition, "administrator" means both the U.S. EPA and the 

cabinet. 

(15) "Ambient air'' means that portion of the atmosphere, external to buildings, to which the general public has 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 over which that concentration level is measured and is a goal to be achieved in a stated time through the application of 

appropriate preventive or control measures. 

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

(18) "AOAC" means Association of Offidal Analytical Chemists. 

(19) "ASTM" means American Society for Testing and Materials. 

(20) "Baseline actual emissions" means the rate of emissions, in tons per year, of a 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 of the 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 assodated with startups, shutdowns, and malfunctions; 

b. !s adjusted downward to exclude any noncompliant emissions that occurred while the source was operating above an emission 

limitation that was legally enforceable during the consecutive 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 necessary according to clause b. of this subparagraph; and 

2. If a project involves multiple emissions units, only one (1} consecutive twenty-four (24) month period is used to determine the baseline 

actual emissions for the 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 KAR 51:001. Definitions for 401 KAR Chapter 51. Page 2 of 13 

selected by the owner or operator within the ten (1 0) year period beginning on or after November 15, 1990, and immediately preceding the 

earlier of the date the owner or operator begins actual construction of the project or the date a complete permit application is received by the 

cabinet for a permit required under 401 KAR 51:017 or 51:052. 

1. The rate is an average that: 

a. Includes fugitive emissions, to the extent quantifiable, 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 that would have exceeded an emission limitation with which the major stationary source is required currently 

to comply, if the source had been required to comply with the lim;tations 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 information for determining annual emissions, in 

tons per year, and for adjusting this amount as necessary according to clause b. of this subparagraph. 

2. If a project involves multiple emissions unrts, only one (1) consecutive twenty-four (24} month period is used for each regulated NSR 

pollutant to determine the baseline actual emissions for the emissions un;ts being changed with a different consecutive twenty-four (24) month 

period; 

(c) For a new emissions unit, equals zero for determining the emissions increase that will result from the initial construction and operation 

of the new unit and thereafter, for all other purposes, equals the unit's potential to em;t; or 

(d) For a PAL for a stationary source, is determined as follows: 

1. For an existing EUSGU, in accordance w;th the procedures contained in paragraph (a) of this subsection; 

2. For other existing emissions units, in accordance w;th the procedures contained in paragraph (b) of this subsection; and 

3. For a new emissions unit, in accordance with the procedures contained in paragraph {c) of this subsection. 

(21} "Baseline area" means an intrastate area and every part of that 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) ~g/m3 annual average of the pollutant for which the minor source baseline date is 

established for 502, N02, or PM10 or equal to or greater than 0.3 ~g/m 3 annual average for 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 

stationary source or major modification that: 

1 Establishes a minor source baseline date; or 

2. Is subject to 401 KAR 51:017 and would be constructed in the Commonwealth of Kentucky. 

(b) A baseline area established originally for total suspended partiCIJiate (TSP) increments remains in effect to determine the amount of 

available PM10 increments, unless the cabinet rescinds the corresponding minor source baseline date. 

(22) "Baseline concentration" means the ambient concentration level that exists in the baseline area on the date the applicable minor 

source baseline date is established. 

(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 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 of the source's complete 

application; and 

{a) For a major stationary source, the pollutant would be emitted in significant amounts; or . 

{b) For a major modification, there would be a significant net emissions increase of the 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 supports and foundations, laying underground pipe work, and construction of permanent 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 or treatment or innovative fuel combustion techniques for control of that 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 60 and 61; and 

(c) Is satisfied by a design, equipment, work practice, or operational standard or combination of standards approved by the 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 

measurement methodology to a particular emissions unit would make the impos;tion of an emissions standard infeasible; 

2. The standard establishes the emissions reduction achievable by implementation of the design, equipment, work practice, or operation; 

ood 

3. The standard provides for compliance by means that achieve equivalent results. 

(26) "BOD" means biochemical oxidant demand. 

(27) "Boiler" means an enciosed fossil or other fuel-fired combustion device used to produce heat and to transfer heat to recirculating 

water, steam, or other medium. 

(28) "BTU" means British thermal unit. 

(29) "Building, structure, facility, or installation" means all of the pollutant emitting activities that: 

(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 under the control of the same person or persons under common control; and 

(d) [fo not include the activtties of a vessel. 

(30) "°C" means degree Celsius (centigrade). 

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

(32) "Cal" means calorie. 

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40 I KAR 51 :00 I. Definitions for 40 I KAR Chapter 51. Page 3 of 13 

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

(34) "cfm" means cubic feet 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 by 40 C.F.R. 51. 166{b)(34). 

(38) "Clinker" means the product of a portland 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 efficiency of electricity generation or steam 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 of fuel in the combustor passes through the turbine, rotating the turbine. 

(44) "Commence" means that an owner or 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 or permits, and: 

1. Has begun, or caused to begin, a continuous program of actual on-site construction of the source, to be completed within a reasonable 

time; or 

2. Has entered into binding agreements or contractual obligations, that cannot be cancelled or modifted without substantial loss to the 

owner or operator, to undertake a program of actual construction of the source to be completed within a reasonable time. 

(45} "Commence commercial operation" means to 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 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 date remains the 

unit's date of commencement of commercial operation even if the 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 CFR. 96.4 is the unit's date of commencement of commercial operation. 

(46) "Commence operation" means, for a NOx budget unit, to have begun a mechanical, chemical, or electronic process, including start-up 

of a unit's combustion cllamber. Except as provided in 401 KAR 51:195 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 of commencement of operation, the date remains the unit's date 

of commencement of operation even if the 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 of commencement of operation, the date the unit becomes a 

NOx budget unit under40 C.F.R. 96.4 is the unit's date of commencement of operation. 

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

(48) "Compliance schedule" means a time schedule of remedial measures including an enforceable sequence of actions or operations 

leading to compliance with a limitation or standard. 

(49} "Compliance supplement pool" means the quantity of NOx allowances provided to Kentucky by the U.S. EPA to be: 

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

(b) Used to assist NOx budget sources that are unable to meet the compliance deadline as provided in 401 KAR 51:180, Section 5. 

(50) "Construction" means: 

(a) Fabrication, erection, installation, or modification of an air contaminant source; or 

(b) For the NSR program, any physical change or change in the method of operation, including fabrication, erection, installation, 

demolition, or modification of an emissions unit that would result in a change in the emissions at an air contaminant source. 

{51) «Continuous emissions monitoring system" or "CEMS" means all of the equipment necessary to meet the data acquisition and 

availability requirements of 401 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 of the 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 (02 or C02); 

{d) Continuous moisture monitor; and 

{e) Automated data acquisition and handling system. 

(53) "Continuous emissions rate monitoring system" or "GERMS" is defined by 40 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 1 of a year and ending on September 30 of the same year, inclusive. 

{57) "Director" means Director of the Division for Air Quality of the Energy and Environment Cabinet. 

(58) "District" is defined by KRS 224.01-010(11). 

{59) "dscf' means dry cubic feet at standard conditions. 

(60) "dscm" means dry cubic meter at 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 generate twenty-five (25) megawatts or more of electricity, some of which is offered for sale. 

(62) "Electric utility steam generating unit" or "EUSGU" is defined by 40 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 an affected facility. 

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40 I KAR 51 :00 I. Definitions tor 40 I KAR Chapter 51. Page 4 of 13 

(64) "Emissions unit" means any part of a stationary source, including an EUSGU, that emits or has the potential to emit a regulated NSR 

pollutant For 401 KAR 51:017 and 51:052, there are two (2} types of emissions units: 

(a) A new emissions unit, which is any emissions unit that is or will be newly constructed and that has existed for less than two (2) years 

from the date the unit first operated: and 

(b) An existing emissions unit. which is any emissions unit that does not meet the requirements in paragraph (a} of this subsection or is 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 of the source that are subject to the standards; 

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

(c) The method the source 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, under specified 

conditions. 

(67) "Excess NOx emissions" means any tonnage of nitrogen oxides emitted by a NOx budget unit during a control period that exceeds the 

NOx budget emissions limitation for the unit. 

(68) "Exempt compound" or "exempt solvent" means an organic compound listed in the definition of volatile organic compound as not 

participating in atmospheric photochemical reactions. 

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

(70} "Extreme nonattainment county" or "extreme nonattainment area" means a county or portion of a county designated extreme 

nonattainment for the national ambient air quality standard for ozone. 

(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 that are enforceable by the U.S. EPA, including: 

(a) Requirements developed under 40 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 

adherence to a permit issued under the program. 

(74) "Federally enforceable permif' means a permit issued under 401 KAR 52:020 or 52:030, as appropriate. 

(75) "Fixed capital cost" means the capital needed to provide all the depreciable components. 

(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 of the annual heat input on a BTU basis during a year starting in 1995 or, if a unit had no heat input starting in 1995, during the last 

year of operation of the unit prior to 1995; or 

(b) The combustion of fossil fuel, alone or in combination with another fuel, if the 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 or foot. 

(79) "Fuel" means natural gas; petroleum; coal; wood; or a form of solid, liquid, or gaseous fuel derived from these materials for the 

purpose of creating useful heal. 

(80) "Fugitive emissions" means those emissions that could not reasonably pass through a stack, chimney, vent, or other functionally 

equivalent opening. 

(81) "g" means gram. 

(82) "gal" means gallon. 

(83) "General fund" is defined by KRS 48.01 0{15)(a). 

(84) "Generator" means a device that produces electricity. 

(85) "gr" means grain. 

(86) "HCI" means hydrochloric acid. 

{87) "Heat inpuf' means the product, in MMBTU per unit of time, of the gross calorific value of the fuel, in BTU per lb, and the fuel feed rate 

into a combustion device, in mass of fuel per unit of time, that 

(a) Does not include the heat derived from preheated combustion air, recirculated flue gases, or exhaust from other sources; 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 organic compound consisting predominantly of carbon 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 uses of flares during startup, shutdown, or malfunction permitted under the standard; or 

(b) A flare that serves to control emissions of waste streams comprised predominately of hydrocarbons and containing no more than 230 

J.Jgfdscm hydrogen sulfide. 

(94) "H20" means water. 

(95) "H2S" means hydrogen sulfide. 

(96) "H2S04., means sulfuric acid. 

(97) "in" means inch. 

(98) "Incineration" means the process of igniting and burning solid, semisolid, liquid, or gaseous combustible wastes. 

(99) "Industrial boiler or turbine" means a fossil fuel-fired boiler, combustion turbine, or a combined cycle system having a maximum 

design heat input of 250 MMBTU per hour or more that is not an electric generating unit. 

(1 00) "Innovative control technology" is defined by 40 C.F.R. 51.166(b)(19). 

(1 01) "Intermittent emissions" means emissions of particulate matter into the open air from a process that operates for less than any six (6) 

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401 KAR 51:001. Definitions for 401 KAR Chapter 51. 

consecutive minutes. 

(1 02) "J" means joule. 

{1 03) "Kg" means kilogram. 

{104) "I" means liter. 

(105) "lb" means pound. 

(1 06) "Legally eilforceable" means the cabinet or the U.S. EPA has the authority to enforce a certain restriction. 

(1 07) "Long dry kiln" means a kiln that employs no preheating of the feed and has a dry inlet feed. 

(1 08) "Long wet kiln" means a kiln that employs no preheating of the feed and the inlet feed to the kiln is a slurry. 

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

(11 0) "Lowest achievable emissions rate" or "LAER" means, for any source: 

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(a)1. The most stringent emissions limitation that is contained in the Kentucky SIP for the class or category of stationary source, unless the 

owner or operator of the proposed stationary source demonstrates that the limitation is not achievable; or 

2. The most stringent emissions limitation achieved in practice by the ciass or category of stationary source; 

(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) "mJ" means cubic meter. 

(113) "Major emissions unif' means: 

(a) Any emissions unit that emits or has the potential to emit 100 tons per year or more of a PAL pollutant in an attainment area; or 

(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 Air Act, 42 U.S. C. 7401 - 7671q for nonattainment areas. 

(114) "Major modification" means a physical change in or a change in the method of operation of a major stationary source that results in a 

.significant emissions increase and a significant net emissions increase of a 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 significant for ozone. 

(b) A physical change or change in the method of operation does not include: 

1. Routine maintenance, repair, and replacement; 

2. Use of alternative fuel or raw material by reason of an order or a natural gas curtailment plan in effect under a federal act; 

3. Use of an alternative fuel at a steam generating unit to the extent that the fuel is generated from municipal solid waste; 

4. Use of an alternative fuel or raw material by a stationary source that: 

a. The source was capable of accommodating before January 6, 1975, for 401 KAR 51 :017, or December 21, 1976, for 401 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, pursuant to 40 C.F.R 51.165 or 51.166; or 

b. The source is approved to use by a permit issued pursuant to 401 KAR 51 :017 or 51 :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 June 6, 1979, pursuant to 401 KAR 51 :015; after September 22, 1982, pursuant to 401 KAR 51 :017; or pursuant to 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 is terminated; 

8. The installation or operation of a 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 of this definition, the definition for "PAL major modification", in subsection {175) of this section, is used for a particular regulated 

NSR pollutant, if the major stationary source is complying with the requirements of 401 KAR 51:017, Section 20, and 401 KAR 51 :052, Section 

11, for a PAL for that pollutant. 

{1 15)"Major NSR permit" means a permit issued under Kentucky's PSD or NSR 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 organic compounds, carbon monoxide, or ODS. 

(117) "Major source baseline date" means: 

{a) For PM 10 and sulfur dioxide, January 6, 1975; 

(b) For nitrogen dioxide, February 8, 1988; and 

{c) For PM2_

5, October 20, 2010. 

(118) "Major stationary source" means: 

(a)1. A stationary source of air pollutants that emits, or has the potential to emit, 100 tons per year or more of a regulated NSR pollutant, 

except that: 

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; fifty (50) tons per year or more of volatile organic compounds or nitrogen oxides in a serious ozone nonattainment 

area; twenty-five (25) tons per year or more of volatile organic compounds or nitrogen oxides in a severe ozone nonattainment area; or ten 

(1 0) 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 significantly to carbon monoxide levels; and 

c. Seventy (70) tons per year or more of particulate matter (PM10) in a serious PM10 nonattainment area; or 

2.a. For the PSD program, any of the following stationary sources of air pollutants that emits, or has the potential to emit, 100 tons per year 

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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401 KAR 51 :001. Definitions for 401 KAR Chapter 51. Page 6 of 13 

Classification System (NAICS) codes 325193 or 312140, fossil fuel boilers, or combination of fossil fuel boilers, totaling more than 250 million 

BTU per hour heat 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 of the stationary source size specified in clause a. of this subparagraph, a stationary source that emitS, or has the potential 

to emit, 250 tons per year or more of a regulated NSR pollutant; or 

3. Any physical change that will occur at a stationary source not othetwise qualifying under this subsection as a major stationary source, if 

the change will constitute a major stationary source by itself; 

(b) A source that is major for volatile organic compounds or nitrogen oxides is considered major for ozone; and 

(c) Fugitive emissions are included only if the source belongs to one (1) of the following categories of stationary sources: 

1. Coal cleaning plants with thermal dryers; 

2. Kraft pulp mills: 

3. Portland cement plants; 

4. Prrmary zinc smelters; 

5. Iron and steel mills; 

6. Primary aluminum ore reduction plants; 

7. Primary copper smelters; 

8. MunicJpal incinerators capable of charging more than 250 tons of refuse per day; 

9. Hydrofluoric, sulfuric, or nitric acid 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. Secondary metal production plants; 

20. Chemical process plants, except ethanol production facilities producing ethanol by natural fermentation under NAICS codes 325193 or 

312140; 

21. Fossil-fuel boilers, or combination of fossil-fuel boilers, totaling more than 250 million BTUs per hour heat input; 

22. Petroleum storage and transfer units with a total storage capacity exceeding 300,000 barrels; 

23. Taconite ore processing plants; 

24. Glass fiber processing 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 under 42 U.S.C. 7411 or 7412. 

(119) "Malfunction" means a sudden and infrequent failure of air 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 breakdown that 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 

consultation with the Secretary of the U.S. Department of Interior, has determined visibility to be an important value. 

(121) "Marginal nonattainment county" or "marginal nonattainment area" means a county or portion of a county designated marginal 

nonattainment for the national ambient air quality standard for ozone. 

(122) "Maximum design heat inpuf' means the ability of a unit to combust a stated maximum amount of fuel per hour on a steady state 

basis, as determined by the physical design and physical characteristics of the 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, if the unit 

intends to use 40 C.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 percent C02) or the minimum percent 0 2, if the unit intends to use a flow 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 input or the 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 for the purpose of decreasing NOx emissions through: 

{a) Burning part of the fuel at a lower temperature; and 

{b) Reducing-conditions at the solid waste injection point that may destroy some of the NOx formed upstream in the kiln burning zone. 

{129) "min" means minute. 

(130) "Minor source 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 pursuant to 40 C.F.R. 52.21 or the Kentucky SIP submits a complete application. The trigger date is: 

1. August?, 1977, forPM10 and 502, 

2. February 8, 1988, for N02; and 

3. October 20, 2011, for PM2_

5

; 

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401 KAR 51:001. Definitions for 401 KAR Chapter 51. Page 7 of 13 

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

unless the cabinet rescinds the minor source baseline date pursuant to 40 C.F.R. 51.166(b)(14)(iv); and 

(c) A date established for each pollutant for which increments or other equivalent 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) for the pollutant on the date of its complete application pursuant to 401 KAR Chapter 52; and 

2. For a major stationary source, the pollutant will be emitted in significant amounts or a significant net emissions increase of the pollutant 

will occur for 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 

nonattainment for the national ambient air quality standard for ozone. 

{136) "Modification" means any physical change in, or a change in the method of operation of, an affected facility that: 

{a) Increases the amount of any air pollutant {to which a standard applies) emitted into the atmosphere by that facility or that results in the 

emission of any air pollutant {to which a standard applies) into the atmosphere not previously emitted; and 

{b) Is not solely: 

1. Maintenance, repair, and replacement that the cabinet detennines to be routine for a source category considering available infonnation: 

2. An increase in production rate of an affected facility, if that increase can be accomplished without a capital expenditure on that facility; 

3. An increase in the hours of operation; 

4. Use of an alternative fuel or raw material if, prior to the date a standard becomes applicable to that source type, 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 under the facility's construction specification as amended prior to 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 that the cabinet determines to be less environmentally beneficial; or 

7. The relocation or change in ownership of a source. 

(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, if applicable, process parameters. 

(138) "Monitoring system" means a monitoring system that meets the requirements of any applicable administrative regulation in 401 KAR 

Chapters 50 to 65. 

{139} "MWe" means megawatt electrical. 

{140} "N2., 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 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) "Net emissions 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 of this 

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 

pursuant 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 under this paragraph are determined 

as defined in this section. 

(b) An increase or decrease in actual emissions is contemporaneous with the increase from the particular change 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 date that the 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 increase from the change occurs. 

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

1. The cabinet or the U.S. EPA has not relied on the change in issuing a penni! for the source pursuant to 401 KAR 51:017, 51:052, or 40 

C.F.R. 52.21; and 

2. The permit is in effect at the time the increase or decrease in actual emissions from the particular change occurs. 

(d) An increase or decrease in actual emissions of sulfur dioxide, particulate matter, or nitrogen oxides that occurs before the applicable 

minor source baseline date is creditable only if it is required to be considered in calculating the amount of maximum allowable increases 

remaining available. For particulate matter, only PM10 emissions are used to evaluate the net emissions increase for PM10. 

(e) An increase in actual emissions is creditable only to the extent that the new level of actual emissions exceeds the old level. 

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

1. The old level of actual emissions or the old level of allowable 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 cl1ange begins; and 

3. The decrease has approximately the same qualitative significance for public health and welfare as that attributed to the increase from 

the particular cl1ange. 

(g) An increase that 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 after a reasonable 

shakedown period, not to exceed 180 days. 

{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 of which commenced on or after the classification 

date as defined in the applicable administrative regulation, irrespective of a change in emission rate. 

(146) "Nitrogen oxides" means all oxides of nitrogen except nitrous oxide, as measured by test methods specified in the Kentucky SIP. 

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401 KAR 51:001. Defmitions for 401 KAR Chapter 51. 

(147) "ng" means nanograms. 

(148) "NO" means nitric oxide. 

(149) "N02" means nitrogen dioxide. 

Page 8 of 13 

(150) "Nonattainment major new source review program" or "NSR program" is defined by 40 C.F.R. 51.165{a)(1 }(xxx). For purposes of this 

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

(151) "NOx" means nitrogen oxides. 

(152) "NOx allowance" 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) "NOx authorized account representative" is defined 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 

account for: 

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

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

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

(d) A change in regulatory status for a NOx budget opt-in source under 40 C.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 Budget Trading 

Program and whose NOx budget opt-in permit has been issued and is in effect. 

(157) "NOx budget source" is defined by 40 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 under 401 KAR 51:160 or 40 

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

holding company, utility system, or plant manager of a NOx budget unit or source. 

(161) "NOx budget unit owner" means: 

(a) A holder of a portion of the legal or equitable title in a NOx budget unit or in a unit for which an application for a NOx budget opt-in 

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

(b) A holder of a leasehold interest in a NOx budget unit or in a unit for which an application for a NOx budget opt-in permit under 401 KAR 

51:195 is submitted and not denied or withdrawn; 

(c) A purchaser of power from a NOx budget unit or from a unit for which an application for a NOx budget opt-in permit under 401 KAR 

51:195 is submitted and not denied or withdrawn under a life-of-the-unit, firm power contractual arrangement and unless 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 

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

(d) For any general account, a person who has an ownership interest with respect to the NOx allowances held in the general account and 

who is subject to the binding agreement for the NOx authorized account representative to represent that 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, for a NOx budget unit, having documented heat input for more than 876 hours in the six (6) months immediately 

preceding the submission of an application for an 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 plant manager of the unit or 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 optin permit. 

{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 pursuant to 40 C.F.R. Part 82, Subpart A, Appendices A and B, the ratio of the 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 of CFC-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, after 

the photolysis of the ODS by short-wave ultraviolet light, that are able to catalyze the destruction of stratospheric ozone. 

(173) "PAL effective date" means: 

(a) The date of issuance of the PAL permit; or 

(b) For an increased PAL, the date any emissions unit that is part of the PAL major modification becomes operational and begins to emit 

the PAL pollutant. 

(174) "PAL effective period" means the period beginning with the PAL effective date and ending ten (1 0) 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 permit" means the permit issued by the cabinet that establishes a PAL for a major stationary source. 

(1 77} "PAL pollutant" means the pollutant for which a PAL is established at a major stationary source. 

(178) "Particulate matter" means a material, except uncombined water that exists in a finely divided form as a liqui(! 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 ambient air as measured by applicable reference methods, or an equivalent or alternative method specified 

in 40 C.F.R. Chapter I, or by a test method specified in the Kentucky SIP. 

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

{181) "Permitted capacity factor" means the annual permitted fuel use divided by the manufacturers specified maximum fuel consumption 

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401 KAR 51:001. Definitions for 401 KAR Chapter 51. Page 9 of 13 

multiplied by 8, 760 hours per year. 

(182) "Person" is defined by KRS 224.01-01 0(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 or 51:052. 

(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 accordance with 40 C.F.R. Part 53. 

(185) "PM10" means particulate matter with 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 accordance with 40 C.F.R. Part 53. 

(186) "PM10 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 alternative method specified in 40 

C.F.R. Chapter I, or by a 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 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) "Potential to emit" or "PTE" means: 

(a) The maximum capacity of a stationary source to 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 if the 

limitation is enforceable as a practical matter; and 

2_ This definition does not alter or affect the use of this term for other purposes of the Clean Air Act, 42 U.S. C. 7401 - 7671q, or the term 

"capacity factor" 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 if the 

limitation or the effect it would have on emissions: 

a. Is federally enforceable; or 

b. For an actual PAL, is· federally enforceable or enforceable as a practical matter; and 

2. Secondary emissions are not counted. 

(191) "ppb" means parts per billion. 

(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 burner to 

calcine material in a separate vessel attached to the preheater prior to the final fusion in a kiln that forms clinker. 

(195) "Predictive emissions monitoring system" or "PEMS" is defined by 40 C.F.R. 51. 166(b)(44). 

(196) "Preheater kiln" means a kiln in which the feed to the kiln system is preheated in cyclone chambers prior to the final fusion in a kiln 

that forms 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 or 52.21. 

(198) "Project" means a physical change in or change in method of operation of an existing major stationary source. 

(199) "Projected actual emissions" means: 

(a) The maximum annual rate, in tons per year, at which an existing emissions unit is projected to emit a regulated NSR pollutant 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 (1 0) years following that date, if: 

1. The project involves increasing the emrssions unit's design capacity or its potential to emil the regulated NSR pollutant; and 

2. Full utilization of the 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, if the 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 unit 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 per square inch absolute. 

(201) "psig" means pounds per square 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 of a very clean coal-fired EUSGU" is defined by 40 C.F.R. 51. 166(b)(37). 

(204) "Reasonable further progress" is defined by 42 U.S.C. 7501 (1 ). For purposes of this definition, "administrator'' means the U.S. EPA. 

(205) "Reconstruction" means the replacement of components of an existing affected facility to the extent that: 

(a) The fixed capital cost of the new components exceeds fifty (50) percent of the frxed capital cost that would be required to construct a 

comparable entirely new affected facility; and 

(b) It is technologically and economically feasible to meet the applicable requirements of 401 KAR Chapters 50 to 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, Appendices A to D. 

(207) "Regulated NSR pollutant" means: 

(a) For401 KAR51:017: 

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401 KAR 51:001. Definitions for 401 KAR Chapter 51. Page 10 of 13 

1. A pollutant for 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. Sulfur dioxide is a precursor to PM2 5 in all attainment and unclassifiable areas; 

c. Nitrogen oxides are presumed to be precursors to PM2_5 in 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 contributor to that area's ambient PM2_

5 concentrations; 

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 of volatile organic compounds from sources in a 

specific area are a significant contributor to that area's ambient PMz.s concentrations; and 

e. PM2.

5 emissions and PM 10 emissions indude gaseous emissions from a source or activity that condense to form particulate matter at 

ambient temperatures; 

(i) On or after January 1, 2011, condensable particulate matter is included in applicability determinations and in establishing emissions 

limitations for PM2_5 and PM10 in permits issued pursuant to 401 KAR 51 :017; 

(ii} Compliance with emissions limitations for PM2_

5 and PM10 issued prior to January 1, 2011, is not based on condensable particulate 

matter unless required by the terms and conditions of a permit; and 

(iii) Applicability determinations made prior to January 1, 2011, without accounting for condensable particulate matter are not considered in 

violation of this section; 

2. A pollutant subject to a standard promulgated under 42 U.S.C. 7411; 

3. A pollutant subject to a standard promulgated under or established by 42 U.S. C. 7671 to 7671 q; or 

4. A pollutant that otherwise is subject to regulation, as defined in subsection (231) of this section, under 42 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 

precursor of a general pollutant listed under 42 U.S.C. 7408; or 

(b) For401 KAR51:052: 

1 Nitrogen oxides or volatile organic compounds; or 

2. A pollutant for 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 ozone nonattainment areas; 

b. Sulfur dioxide is a precursor to PM2_

5 in all PM2_

5 nonattainment areas; 

c. Nitrogen oxides are presumed to be precursors to PMz.s in all PMz.s nonattainment 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 

contributor to that area's ambient PM2_

5 concentrations; 

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 EPA Administrator's satisfaction or EPA demonstrates that emissions of volatile organic compounds or ammonia 

from sources in a specific area are a significant contributor to that area's ambient PM2_

5 concentrations; and 

e. PM2_5 emissions and PM10 emissions include gaseous emissions from a source or activity that condense to form particulate matter at 

ambient temperatures; 

(i) On or after January 1, 2011, condensable particulate matter is included in applicability determinations and in establishing emissions 

limitations for PM2_5 and PM10 in permits issued pursuant to 401 KAR 51:052; 

(ii) Compliance with emissions limitations for PM2_

5 and PM10 issued prior to January 1, 2011, is not based on condensable particulate 

matter unless required by the terms and conditions of a permit; and 

(iii) Applicability determinations made prior to January 1, 2011, without accounting for condensable particulate matter are not considered in 

violation of this section. 

(208} "Replacement unit" means an emissions unit that does not generate creditable emissions reductions by shutting down the existing 

emissions unit that is replaced, and that: 

(a)1 Is a reconstructed unit within the meaning of 40 C.F.R. 60.15(b){1) or that completely takes the place of an 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 unit that: 

1. Is permanently removed from the major stationary source, is otherwise permanently disabled, or is prohibited from operating by a permit 

that is enforceable as 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) "Responsible official" 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 for the corporation, or a duly authorized representative of that person if 

the representative is responsible for the overall operation of one (1) or more manufacturing, production, or operating facilities applying for or 

subject to 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 of authority to the representative is approved in advance by the cabinet pursuant to this subsection; 

(b) For a partnership or sole proprietorship, a general partner or the proprietor, respectively; 

(c) For a municipality, state, federal, or other public agency. a principal executive officer or ranking elected official. The principal executive 

officer of a federal agency includes the cl1ief executive officer having responsibility for the overall operation of a principal geographic unit of the 

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401 KAR 51:001. Defmitions for 401 KAR Chapter 51. Pagellof13 

agency: or 

(d) For the acid rain portion of a permit for an affected source, the designated representative. 

(211) "Run" means the net period of time, either intermittent or continuous within the limits of good engineering practice, when an emission 

sample is collected. 

(212) "S" means at standard conditions. 

(213) "sec" means second. 

(214) "Secondary emissions" means emissions that: 

(a) Occur as a result of the construction or operation of a major stationary source or major modification, and do not come from the major 

stationary source or major modification 1tself; 

(b) Are specific, well defined, quantifiable, and impact the same general area as the stationary source modification that causes the 

secondary emissions: 

(c) Include emissions from an offsite support facility that 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, or 

vessel. 

(215) "Serious nonattainment county" or "serious nonattainment area" means a county or portion of a county designated serious 

nonattainment for the national ambient air quality standard for ozone. 

(216) "Severe nonattainment county" or "severe nonattainment area" means a county or portion of a county designated severe 

nonattainment for the national ambient air quality standard for ozone. 

(217) "Shutdown" means the cessation of an 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 of the 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) For 401 KAR 51:017, in reference to a net emissions increase or the potential of a source to emit a regulated NSR pollutant that is not 

listed in the table in paragraph (a) of this subsection, any emissions rate; 

(c) For 401 KAR 51:017, in reference to an emissions rate or a net emissions increase associated with a major stationary source or major 

modification, that is to be constructed within ten (10) kilometers of a Class 1 area, an impact on that area equal to or greater than one (1) 

)J.g/m3 over a twenty-four (24) hour average; 

(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 of emissions that would equal or exceed a correspondinq rate listed in the table: I I 

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401 KAR 51:001. Definitions for 401 KAR Chapter 51. Page 12 of 13 

"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) For 401 KAR 51:052, with the exception of the significant emissions rate for ozone in this subsection, significant means, in reference to 

an emissions increase or net emissions increase, a rate of emissions that exceeds the following: 

1. Twenty-five (25) tons per year of volatile organic compounds or nitrogen oxides in a serious or severe ozone nonattainment area; or 

2. An 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 exceeds fifty (50) tons 

per year in a serious nonattainment area for carbon monoxide in which a stationary source contribute significantly to carbon monoxide levels. 

(219) "Significant emissions increase" means, for a regulated NSR pollutant, an increase in emissions that is equal to or greater than the 

emission level that is significant for that pollutant. 

(220) "Significant emissions unit" means an emissions unit that emits or has the potential to emit a PAL pollutant in an amount equal to or 

greater than the applicable significant level as defined in subsection (218) of this section or in 42 U.S.C. 7401 to 7671q, whichever is lower for 

that PAL pollutant, but less than the amount that would qualify the unit as a major emissions unit. 

(221) "Small emissions unit" means an emissions unit that emits 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) of this section; or in 42 U.S.C. 7401 to 7671q, whichever is lower. 

(222) "S02" means sulfur dioxide. 

(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 of way. 

(224) "sq" means square. 

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

(226) "Standard" means an emission standard, a standard of performance, or an amb1ent air quality standard as promulgated in 401 KAR 

Chapters 50 to 65 or the emission control requirements necessary to comply with 401 KAR Chapter 51. 

(227) "Standard conditions" means: 

(a) For source measurements, twenty (20) degrees Celsius (sixty-eight (68) degrees Fahrenheit) and a pressure of 760 mm Hg (29.92 in. 

of Hg); 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" means the setting in operation of an affected facility. 

(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) "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) ''TAP PI" means Technical Association of the Pulp and Paper Industry. 

(234) ''Temporary dean coal technology demonstration project" is defined by 40 C.F.R 51.166(b)(35). 

(235) "Ton" or "tonnage", for a NOx budget source, means a short ton or 2,000 pounds. For determining compliance with the NOx budget 

emissions limitation, total tons for a control 'period is calculated as the sum of all recorded hourly emissions, or the tonnage equivalent of the 

recorded hourly emissions 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 any fraction of a ton less than 0.50 ton 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" means tons per year. 

(238) "TSS" means total 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 molecular forces. 

(240) "Unif' means a fossil fuel-fired stationary boiler, combustion turbine, or combined 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. If a 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. Department of Commerce, Bureau of Census. 

(243) "U.S. EPA" means the 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 organic compound" or "VOC" is defined by 40 C.F.R 51.1 OO(s). 

(247) "yd" means yard. 

Section 2. Incorporation by Reference. (1) The following material is incorporated by reference: 

(a) "North American Industry Classification System", 2007, as published by the Office of Management and Budget: and 

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401 KAR 51:001. Definitions for 401 KAR Chapter 51. Page 13 of 13 

(b) "Standard Industrial Classification Manual", 1987, as published by the Office of Management and Budget. 

(2) This material may be inspected, copied or obtained, subject to applicable copyright law, at the following main and regional offices of the 

Kentucky Division for Air Quality during the normal working hours of 8 a.m. to 4:30 p.m., local lime: 

{a) Kentucky Division for Air Quality, 200 Fair Oaks Lane, 1 sl floor, Frankfort, Kentucky 40601-1403, (502) 564-3999; 

{b) Ashland Regional Office, 1550 Wolohan Drive, Suite 1, Ashland, Kentucky 41102, (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, Kentucky 41042, (859) 525-4923; 

(e) Frankfort Regional Office, 200 Fair Oaks 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, 3032 Alvey Park Drive, W., Suite 700, Owensboro, Kentucky 42303, {270) 687-7304; and 

(i) Paducah Regional Office, 130 Eagle Nest Drive, Paducah, Kentucky 42003, (270) 898-8468. 

(3) The Standard Industrial Classification Manual is also available under Order No. PB 87-100012 from the National Technical Information 

Service, 5285 Port Royal Road, Springfield, Virginia 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 KAR 51 :017. Prevention of significant deterioration of air quality. Page 1 of11 

401 KAR 51:017. Prevention of significant deterioration of air quality. 

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 Appendix 

A, 60, 61, 63, 70.6, 81.318,81 SubpartO, 42 U.S. C. 7401-7671q 

STATUTORY AUTHORITY: 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 

ambient air quality. The provisions of this administrative regulation are not more stringent than the corresponding federal requirements. 

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 otheiWise provided in this administrative regulation, the provisions of Sections 8 to 16 of this administrative regulation 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 major modification, which is subject to the requirements of Sections 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 that the major stationary source or major modification shall meet those 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) of this subsection. 

(a) Prior to beginning actual construction, the owner or operator shall first determine if a significant emissions increase will occur for the 

applicable type of unit being constructed according to subparagraphs 1 to 3 of this 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 or exceeds the significant amount for that pollutant. 

2. Actual-to-potential test for projects that involve only construction of new emissions units. A significant emissions increase of a regulated 

NSR pollutant shall be projected to occur if the sum of the potential to emit from each new emissions unit following completion of the project 

equals or exceeds the significant amount for that 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 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 operator of the major 

stationary source shall comply with the applicable requirements of Section 20 of this administrative regulation. 

designated as Class I or II, increases in pollutant concentration over the baseline 

, 24-hour maximum 

, annual arithmetic mean 

, 24-hour maximum 

(2) For any period other than an II I I may exceeded during one (1) sucll period 

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401 KAR 51 :017. Prevention of significant deterioration of air quality. Page 2 ofl1 

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 pollutant for a period 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) National wilderness areas and national memorial parks that exceed 5,000 acres in size; and 

{c) National parks that 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 of this administrative regulation shall apply only to sources that may impact a mandatory Class I 

federal area. 

(4) The following areas may be redesignated only as Class I or II: 

{a) An area that 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 lakeshore or seashore; and 

(b) A national park or national wilderness area established after August 7, 1977, which exceeds 10,000 acres 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 

before the effective date of the order; 

{b) Concentrations attributable to the increase in emissions from sources that 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 of the plan; 

{c) Concentrations of particulate matter attributable to the increase in emissions from construction or other temporary emission-related 

activities of new 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 of the U.S. EPA as meeting the criteria established in subsection 

(3) ofthis section. 

{2){a) Exclusion of concentrations shall not apply more than five {5) years after the effective date of the order to which subsection (1 )(a) of 

this section refers or the curtailment plan to which subsection (1)(b) of this 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) 

effective dates. 

(3) For exduding concentrations pursuant to subsection {1 )(d) of this section: 

(a) The lime 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 unless a longer time is approved by the U.S. EPA; 

(b) The time period for excluding certain contributions in accordance with paragraph (a) of this subsection shall not be renewable; 

(c) An emissions increase from a stationary source shall not occur that will: 

1. Impact a Class I area or an area in which an applicable Increment is known to be violated; or 

2. Cause or contribute to the violation of a national ambient air quality 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 of emissions limitation required for control of an air pollutant under this 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 dispersion 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 of this administrative regulation shall not apply to a particular major stationary source or major 

modification, if: 

(a) The owner or operator: 

1. Obtained the necessary federal, state, and local preconstruction approval effect1ve before September 22, 1982: 

2. Commenced construction before September 22, 1982; and 

3. Did not discontinue construction for a period of eighteen (18) months or more. 

(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 Governor of the Commonwealth of Kentucky requests that it be exempt from those requirements. 

(c) The source or modification is a major stationary source or major modification only if fugitive 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 any of the following 

categories: 

1. Coal cleaning plants with thermal dryers; 

2. Kraft pulp mills; 

3. Portland cement plants; 

4. Primary zinc smelters; 

5. Iron and steel mills; 

6. Primary aluminum ore reduction plants; 

7. Primary copper smellers; 

8. Municipal incinerators capable of charging more than 250 tons of refuse per day: 

9. Hydrofluoric, sulfuric, or nitric acid plants: 

10. Petroleum refineries; 

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401 KAR 51 :017. Prevention of significant deterioration of air quality. Page 3 of 11 

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 

Industry Classification 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 units with a total storage capacity exceeding 300,000 barrels; 

23. Taconite Ore processing plants; 

24. Glass fiber processing 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 under 42 U.S.C. 7411 or 7412. 

(d) The source or modification is a portable stationary source that has previously received a permit under this administrative regulation; 

'"' 1. The owner or operator proposes to relocate the source, and the emissions of the source at the new location will be temporary; 

2. The emiss·lons from the source wHI not exceed 1ts allowable emissions·, 

3. The emissions from the source will not impact a Class I area or an area where an applicable increment is known to be violated; 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 at the new location. 

b. Notice shall be given to the cabinet not less than ten (1 0) days in advance of the proposed relocation unless a different time duration is 

previously approved by the cabinet pursuant to 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 owner or operator: 

1. Obtained all final federal, state, and local preconstruction approvals or permits necessary under the applicable SIP before July 31, 1987; 

2. Commenced construction within eighteen (18) months after July 31, 1987; and 

3. Did not discontinue construction for a period of eighteen (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 owner or operator submitted an application for a permit under·the applicable permit program before that date; and 

2. The cabinet subsequently detennined that the application as submitted was complete with respect to 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 pursuant to 42 U.S.C. 7407(d)(1)(A)(i). 

(3) Sections 9,11, and 13 of this administrative regulation shall not apply to 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 a Class I area or an area where an applicable increment is known to be violated; and 

(b) Will be temporary. 

(4) Sections 9, 11, and 13 of this administrative regulation, as applicable to a maximum allowable increase for a Class II area, shall not 

apply to a major modification at a i source that was in existence on March 1, 1978, if the net increase in allowable emissions of each 

regulated NSR pollutant from the the application of BACT will be less than fifty (50) tons per year. 

(5) The cabinet exempt a stationary source or major modification from the monitoring requirements of Section 11 of 

thill''~m~i"!'"~'~'iti!v'~~~~!''l'!'~~~~~~!'! if~~~~~~~~ (a) The :i~i~~~f~~~:': :': ~"; increase of the pollutant from the modification will ~ II table; or 

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401 KAR 51:017. Prevention of significant deterioration of air quality. Page 4 of 11 

Total reduced sulfur 10 j.Jglm3 1-hour average 

Reduced sulfur 10 j.Jg/m3 1-hour average 

comcounds 

(b) The concentrations of the pollutant m the area that the source or modification will affect are less than the concentrations listed in the 

table in paragraph {a) of this subsection, or the pollutant is not listed in the table. 

(6) Permitting requirements equivalent to Section 9(2) of this administrative regulation shall not apply to a stationary source or modification 

for a maximum allowable increase for nitrogen oxides, if: 

(a) The owner or operator of the source or modification submitted an application for a permit or permit revision under the applicable permit 

program before the date on which the provisions embodying the maximum allowable increase look effect in the Kentucky SIP; and 

(b) The cabinet subsequently detennined that the 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 

modification for a maximum allowable increase for PM 10, if: 

{a) The owner or operator of the source or modification submitted an application for a penni! under the applicable permit program before 

the provisions embodying the maximum allowable increases for PM10 took effect as part of Kentucky's SIP; and 

(b) The cabinet subsequently detennined that the 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 of this administrative regulation 

shall not apply to a particular source or modification, if: 

1. The owner or operator of the source or modification submitted an application for a penni! under this 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 matter specified in Section 11 of this administrative regulation. 

(b) The requirements for air quality monitoring of PM10 in 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 later than 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 

accordance with Section 11 of this administrative regulation; and 

2. If the cabinet determines that a complete and adequate analysis can be accomplished with monitoring data over a shorter period, which 

may not to be less than four (4) months, the data that Section 11 of this administrative regulation requires shall have been gathered over that 

shorter period. 

(9) 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 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 of Section 9(2) of this administrative regulation 

shall: 

{a) Not apply to a stationary source or modification for a maximum allowable increase for PM10; and 

(b) Apply for the maximum allowable increases for TSP as in effect on the day the application was 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 pursuant to 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 NSR pollutant that results in a significant net emissions increase at the source; and 

(b) For each proposed emissions unit at which a net emissions increase in the pollutant occurs as a result of a physical change or change 

in the method of operation 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 prior to commencement of construction of each independent phase of the project; and 

(b) If requested by the cabinet, the owner or operator of the applicable stationary source shall demonstrate the adequacy of a previous 

BACT determination 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 contribute to air pollution in violation of: 

(a) A national ambient air quality standard in an air quality control region; or 

(b) An applicable maximum allowable increase over the 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 I area 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. Part 51, Appendix W, "Guideline on Air Quality Models" Appendix A. 

{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 of a modified or substitute model shall be: 

1. Subject to notice and opportunity for public comment under 401 KAR 52:1 00; and 

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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 for the 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 Quality Anarysis. (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 

ambient air quality in the area that the major stationary source or major modification will affect for each of the following: 

1 For a source, each pollutant that the source will have the potential to emit in a significant amount; 

2. For a modification, each pollutant that the modification will result in a significant net emissions 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 necessary to assess ambient air quality for that pollutant in an area that the emissions of that pollutant will 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 least the year preceding receipt of the 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 less than 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 of 40 C.F.R. Part 51, Appendix S, section fV may provide postapproval monitoring data for ozone instead of providing 

preconstruction data as required in this section. 

(f) For air quality monitoring of PM10 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 ambient 

concentrations of PM10 using the data collected by that approved monitoring method in accordance with estimating procedures approved by 

the cabinet pursuant to 40 C.F.R. Part 58, Appendix A. 

(2) Postconstruction monitoring. After construction of a major stationary source or major modification, the owner or operator shall conduct 

ambient monitoring that the cabinet determines is necessary to determine the effect emissions from the stationary source or modification may 

have, or are having, on air quality 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 of 40 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 

necessary to perform an analysis or make 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 of the source or modification, including 

specifications and drawings showing its design and plant layout; 

(b) A detailed schedule for construction of the 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 infonnation 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 1m pact of the 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 

since August 7, 1g77, in the area the source or modification will affect. 

Section 13. Additional Impact Analysis. (1) The owner or operator shall provide an analysis of the impairment to visibility, soils, and 

vegetation that will occur as a result of: 

(a) The source or modification; 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 of the impact on vegetation not having significant commercial or 

recreational 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 associated with the 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-by-case basis by the 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 the federal 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 promptly after receiving the permit application. The notice shall: 

1. lndude a copy of all information relevant to the permit application; 

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 of the proposed source'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 available to them the materials used in making that determination, promptly after the 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 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, 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) of this 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) If the cabinet finds the analysis does not demonstrate to the cabinefs satisfaction that an adverse impact on visibility will 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 manager of lands 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 for a Class I area. 

(b) If the cabinet concurs with the demonstration specified in paragraph (a) of this subsection, the cabinet shall not issue the permit or 

permit revision. 

(5) Class I variances. 

{a) The owner or operator of a proposed source or modification may demonstrate to the federal land manager that the 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 increases for a Class 1 area as specified in Section 2(1) of this 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, PM 10, 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. 51.166(p){4), as published on July 1, 2012, if: 

1. The federal land manager concurs with the demonstration specified in paragraph (a) of this subsection and certifies accordingly: and 

2. The other applicable requirements of this administrative regulation are met. 

{6) Sulfur dioxide variance by governor with federal land manager's concurrence. 

(a) The owner or operator of a proposed source or modification, which cannot be approved under subsection (5) of this 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 

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 visibility or other air quality related values of the 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 a variance from the maximum allowable increase. 

(c) If a variance is granted, the cabinet shall issue a permit or permit revision to the source or modification under the requirements of 401 

KAR Chapter 52 if the other applicable requirements of this administrative regulation are met. 

(7) Variance by the governor with the Presidenfs concurrence. 

(a) If the Governor of the Commonwealth of Kentucky recommends a variance in which the federal land manager does not concur, the 

recommendations of the governor and the federal land manager shall be transmitted to the President of the United States Of America. 

(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 of this 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) 

of this section, the source or modification shall comply with the emissions limitations necessary to assure that: 

(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 of twenty-four 

period. 

other applicable maximum allowable increases for periods of 

a total of eighteen (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 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 under the terms of an approval to construct. 

(2){a) Approval to construct shall become invalid if construction: 

1 Is not commenced within eighteen {18) months after receipt of the approval; 

2. Is discontinued for a period of eighteen (18) months or more; or 

3. Is not completed within a reasonable time. 

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

1. An extension shall not apply to the lime period between construction of the approved phases of a phased construction project; and 

2. Each phase shall commence construction within eighteen (18) months of the projected and approved commencement date. 

{3) Approval to construct shall not relieve an owner or operator of the responsibility to comptj fulty with 401 KAR Chapters 50 to 68 and 

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other requirements of local, slate, or federal 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 that was established after August 7, 1980, on the capacity of the source or modification to emit a pollutant, Sections 81o 

16 of this administrative regulation shall apply to the source or modification as though construction had not yet commenced on the source or 

modification. 

(S)(a) The provisions of this subsection shall apply to projects at existing emissions units at a maJor stationary source other than projects at 

a source with 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 elects to 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 of the following information: 

1. A description of the project; 

2. Identification of the emissions units for which emissions of a regulated NSR pollutant could be affected by the 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 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) of this subsection, the owner or operator shall: 

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 of this subsection; and 

2. Calculate and maintain a record of the annual emissions, in tons per year on a calendar year basis for: 

a. Five (5) years following resumption of regular operations after the 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) If the 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 actual construction; and 

2_ Shall submit a report to the cabinet within sixty (60) days after the end of each 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 For an existing unit other than an EUSGU, the owner or operator shall submit a 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 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 after the end of the year during which records are required to be generated under 

paragraph (b) of this subsection and shall contain the following: 

a. The name. address, and telephone number of the major stationary source; 

b. The annual emissions as calculated pursuant to paragraph (c) of this subsection; 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 cabinet or the general public pursuant to 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 of an environmental impact statement under 42 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 under 

that Act and under 42 U.S.C. 7609 to the maximum extent feasible 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 request that the cabinet approve a system of innovative control technology. 

(2} The cabinet may, with the consent of the governors of other affected states, determine that the source or modification may employ a 

system of innovative control technology if: 

(a) The proposed control system will not cause or contribute to an unreasonable risk to public health, welfare, or safety in its operation or 

function; 

(b) The owner or operator agrees to achieve a level of continuous emissions reduction equivalent to that which 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 the time of startup or seven (7) years from 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 meet on the date 

specified by the cabinet; 

(d) The source or modification shall not before the date spec'1fied by the cabinet: 

1. Cause or contribute to a violation of an applicable national ambient air quality standard; or 

2. Impact an area in which an applicable increment is known to be violated; 

(e) Section 14 of this administrative regulation relating to Class I areas has been satisfied for all periods during the life of the source or 

modification; and 

(f) All other applicable requirements including those for public participation have been met. 

(3) The cabinet shall withdraw approval to employ a system of innovative control technology if: 

(a} The proposed system fails by the specified dale to achieve the required continuous emissions reduction rate; 

(b) The proposed system fails before the specified date and contributes to an unreasonable risk to public health, welfare, or safety; or 

(c) The cabinet decides that the proposed system is unlikely to achieve the required level of control or to 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) of this section, the cabinet may allow the source or modification up to an additional 

three (3) years to meet the requirement for the application of BACT through use of a demonstrated system of control. 

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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 may request that the cabinet rescind the applicable conditions. 

(b) An owner or operator of a stationary source or modification who holds a permit for the source or modification that was issued under this 

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 of the permit. 

(2) The cabinet shall rescind a permit condition if requested and if the applicant can demonstrate to the satisfaction of the cabinet that this 

administrative regulation does not apply to the source or modification or to a portion of the source or modification. 

Section 20. Plant-wide Applicability Limit Provisions. The cabinet shall only approve the use of an actuals PAL (PAL) for an existing major 

stationary source if the PAL meets the requirements of this section. 

(1) General provisions. 

(a) An owner or operator may execute a project without triggering major NSR, if the 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 of Section 16(4) of this administrative regulation concerning restrictions on relaxing enforceable 

emission limitatiqns that a major stationary source used to avoid applicability of the major NSR program. 

(b) Except as provided under subparagraph (1)(a)3 of this 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 

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 their potential to emit; 

(b) Identification of the federal and state applicable requirenients, emissions limitations, and work practice requirements that apply to 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 procedures the owner or operator 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} of this 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 of this 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 

stationary source. 

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 of the monthly emissions from each emissions unit under the PAL for the previous twelve (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 of 

the preceding monthly emissions from the PAL effective date for each emissions unit under the PAL is less than the PAL. 

(b) The PAL shall be established in a PAL permit that: 

1. Meets the public participation requirements in subsection (4) of this section; and 

2. Contains all the requirements of subsection {6) of this section. 

{c) A PAL shall include fugitive emissions, to the extent quantifiable, from all emissions units that emit or have the potential to emit the PAL 

pollutant at the major stationary source. 

(d) Each PAL shall regulate emissions of only one {1) pollutant. 

(e) Each PAL shall have a PAL effective period of ten {1 0) years. 

(f) The owner or operator of a major stationary source with a PAL shall comply with 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. 

(g) Emissions reductions of a PAL pollutant that occur during the PAL effective period shall not be creditable as decreases for offsets 

under 40 C.F.R 51.165(a)(3)(ii), unless: 

1. The level of the PAL is reduced by the amount of the emissions reductions; and 

2. The reductions will be creditable in the absence of the 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 before taking final action on a PAL permit or permit revision. 

(5) Setting the ten (10) year PAL leveL 

(a) The PAL level for a major stationary source shall be the sum of the baseline actual emissions of the 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 KAR 51:001, Section 1 or under 42 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 emissions for all existing emissions units. 

(c) A different consecutive twenty-four (24) month period may be used for each 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 units for which actual construction began after the twenty-four {24) month period shall be added to the PAL level in an 

amount equal to the potential to emit of the 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 of prior to issuance of the PAL permit. 

{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 per year; 

(b) The PAL permit effective date and the expiration date of the PAL or PAL effective period; 

(c) Specification in the PAL permit that if a major stationary source owner or operator applies 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 the cabinet; 

(d) A requirement that emissions calculations for compliance pui)Joses include emissions from 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) of this 

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) of this 

section; 

(g) A requirement that the major stationary source owner or operator shall monitor all emissions units in accordance with the provisions in 

subsection {12) of this section; 

(h) A requirement that the owner or operator shall retain the records required under subsection (12) of this section on site. Records may be 

retained in an electronic format; 

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

'"' OJ Any requirements necessary to implement and enforce the PAL. 

(7) PAl effective period and reopening of a PAl permit. 

(a) A PAl effective period shall be len (1 0) years. 

(b) The cabinet shall reopen a PAl permit to: 

1. Correct typographical or calculation errors made in setting the PAL; 

2. Reflect a more accurate determination of emissions used to establish the PAL; 

3. Reduce the PAL if the owner or operator of the major stationary source creates creditable emissions reductions for use as offsets under 

40 C.F.R. 51.165(a}(3)(ii); or 

4. Revise the PAL to reflect an increase in the PAL according to subsection (1 0) of this section. 

(c) The cabinet may reopen the PAL permit, during the PAL effective period, to: 

1. Reduce the PAL to reflect newly applicable federal requirements with compliance dates after the PAL effective date; 

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. Reduce the PAL if the cabinet determines that a reduction is necessary to avoid causing or contributing to: 

a. A National Ambient Air Quality Standard (NAAQS) or PSD increment violation; 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 

manager and for which information is available to the general public. 

(d) All permit reopenings shall be carried out under the public participation requirements of subsection (4) of this section except for permit 

reopenings to correct typographical or calculation of errors that do 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 of emissions units. that existed under the PAL shall comply with an allowable emissions limitations 

under a 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 of emissions units, by distributing the PAL allowable emissions for the major stationary source among each of 

the emissions units that existed under the 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 if the PAL has been adjusted. 

2. The cabinet shall decide the date and procedure the owner or operator shall 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 of emissions units, as the 

cabinet determines is appropriate. 

(b) E8c11 emissions unit shall comply with the allowable emissions limitation on a twelve (12) month rolling basis. The cabinet may approve 

the use of monitoring systems other than CEMS, CERMS, 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 revise!j permit incorporating allowable limits for each emissions unit or each group of emissions units. 

(d) A major modification at the major stationary source shall be subject to major NSR requirements. 

(e) The major stationary source owner or operator shall continue to comply with any state or federal 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 of a PAL. 

(a) Public participation requirements. 

1. The cabinet shall follow the public participation procedures specified in subsection (4) of this section in approving a request to renew a 

PAL for a major stationary source. 

2. The cabinet shall provide a written rationale for the proposed PAL level for public review and comment. 

3. Any person may propose a PAL level for the 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 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 permit shall not expire before the permit is renewed. 

3. If a 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 permit shall contain: 

1. The information required in subsection (2) of this section; 

2. A proposed PAL level; 

3. The sum of the potential to emit of all emissions units under the PAL with supporting documentation; and 

4. Any other information the owner or operator wishes the 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 emit. The cabinet shall adjust the PAL downward if a source's potential to emit has 

declined below the 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 potential to emit. 

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401 KAR 51 :017. Prevention of significant deterioration of air quality. Page 10of11 

3. If the sum of the 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 may set the PAL at a different level if the level is determined to be: 

a. More representative of the source's baseline actual emissions; or 

b. Appropriate considering the following factors: 

(i) Air quality needs; 

(ii) Advances in control technology; 

(iii) Anticipated economic growth in the area of the source; 

(iv) The cabinet's goal of promoting voluntary emissions reductions; 

(v) Cost effective emissions control alternatives; and 

(vi) Other factors 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 of subsection (1 0) of this section. 

(e) The PAL shall be adjusted in conjunction with PAL permit renewal or Title V permit renewal, whichever comes first, if: 

1. The compliance date for a state or federal applicable requirement that applies to the PAL source 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 if the maJor stationary source complies with the provisions of this 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 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 in paragraph (c) of this subsection, 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 that was established within the preceding ten (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 of BACT or LAER for 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 begins to emit the 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 significant level shall not apply in deciding for which 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 subject to the PAL or shall continue to be subject to the PAL. 

(c) Calculation of increased PAL. The cabinet shall calculate the new PAL as the sum of the allowable emissions for each modified or new 

emissions unit, plus the sum of the baseline actual emissions of the significant and major emissions units assuming application of BACT 

equivalent controls, plus the sum of the baseline actual emissions of the small emissions units. 

(d) Public notice requirement. The public notice requirements of subsection (4) of this 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 of the PAL pollutant in terms of mass per un1t of time; 

2. A monitoring system authorized fOr use in the PAL permit shall be: 

a. Approved by the cabinet pursuant to this subsection; and 

b. Based on sound science and meet generally acceptable scientific procedures for data quality and manipulation; 

3. The data generated by a monitoring system shall meet minimum legal requirements for admissibility in a judicial 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) of this subsection; 

5. The cabinet may approve an alternative monitoring approach that meets the requirements of subparagraphs 1 to 3 of this paragraph; 

'"' 6. Failure to use a monitoring system that meets the requirements of this section shall render the PAL invalid. 

(b) Minimum periormance requirements for approved monitoring approaches. If conducted in accordance with the minimum requirements 

in paragraphs (c) to (i) of this subsection, the ·following shall be acceptable monitoring approaches: 

1. Mass balance calculations for activities using coatings or solvents; 

2. CEMS; 

3. CPMS or PEMS; and 

4. Emission factors. 

(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 of validating the published content of the PAL pollutant contained in or created by all materials used in 

or at the emissions unit; 

2. If the PAL pollutant cannot be accounted for in the process, assume that the 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. If the vendor of the material or fuel from which the pollutant originates publishes a range, use the highest value of the published range of 

pollutant content to calculate the PAL poUutant emissions, unless the cabinet determines there is site-specific data or a site-specific monitoring 

program to support another pollutant content within the range. 

(d) CEMS. An owner or operator using CEMS to monitor PAL pollutant emissions shall meet the following requirements: 

1. CEMS shall comply with applicable performance specifications found in 40 C.F.R. Part 60, Appendix B; and 

2. CEMS shall sample, analyze, and record data at least every fifteen {15) minutes while 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 or the PEMS shall be based on current site-specific data demonstrating a correlation between the monitored parameter and 

the PAL pollutant emissions across the range of operation of the emissions unit; and 

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401 KAR 51:017. Prevention of significant deterioration of air quality. Page 11 of 11 

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 if approved 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, if appropriate, to account for the degree of uncertainty or limitations in the factors' development; 

2. The emissions unit shall operate within the designated range of use for the emission factor, if applicable; 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 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 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) If an owner or operator of an 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 default values for determining compliance with the PAL based on the highest potential emissions reasonably estimated at 

operating points; or 

2. Determine that operation of the emissions unit during operatmg 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 

means if approved by the cabinet. Validation testing shall occur at least once every five (5) years alter issuance of the 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 of this section and of the PAL, including a determination of each emissions unit's twelve (12) month rolling total emissions for five 

(5) years from the date of the determination. 

{b) The PAL permit shall require an owner or operator to retain a copy of the following records for the duration of the PAL effective period 

plus five (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 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 accordance with 401 KAR 52:020, 52:030, and 52:040 that meet the following requirements: 

(a) Semiannual report. The semiannual report shall be submitted to the cabinet within thirty (30) days of the 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 pursuant to 

subsection (12)(a) of this 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 to the major stationary 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 of permanent or temporary shutdown of any monitoring system inciuding: 

a. The reason for the shutdown; 

b. The anticipated date that the 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 of the 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 pursuant to 40 C.F.R. 70.6(a)(3)(iii)(B) shall satisfy the 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 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; 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 of the 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 of the test or method. 

{14) Transition requirements. 

(a) After the 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 PAL that complies with the requirements of this section. 

(b) The cabinet may supersede a PAL that was established before August 10, 2006, with a different PAL if the 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. Review of new sources in or impacting upon nonattainment areas. Page 1 of9 

401 KAR 51:052. Review of new sources in or Impacting upon nonattainment areas. 

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 

STATUTORY AUTHORilY: KRS 224.10-100(5), 42 U.S.C. 7401-7671q 

NECESSilY, FUNCTION, AND CONFORMilY: KRS 224.10-1 00(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 or modification 

of stationary sources within, or impacting upon, areas where the national ambient air quality standards have not been attained. The provisions 

of this administrative regulation are not more stringent than the corresponding federal requirements. 

Section 1 Applicability. This administrative regulation shall apply to the construction of a new major stationary source or a project that is a 

major modificaUon at an existing major stationary source, which commences construction after September 22, 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 apply to 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) 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) of this subsection. 

(a) Pnor to beginning actual construction, the owner or operator shall first determine if a significant emissions increase will occur for the 

applicable type of unit being constructed or modified according to subparagra'phs 1 to 3 of this 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 basefme actual 

emissions for each existing emissions unit equals or exceeds the significant amount for that pollutant. 

2. Actual-to-potential test for projects that involve only construction of new emissions units. A significant emissions increase of a regulated 

NSR pollutant shall be projected to occur if the sum of the potential to emit from each rlew emissions unit following completion of the project 

equals or exceeds the significant amount for that 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 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 applicable test in paragraph (a) of this 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). 

(3) 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 of Section 11 of this 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 major new source and proposed major modification to determine if the source or modification 

will meet all applicable emissions requirements in the Kentucky State Implementation Plan (SIP) and 40 C.F.R. Parts 60 and 61. 

(b) If the cabinet determines from the application and all other available information that the proposed source or modification w1ll not meet 

the applicable emissions requirements, the permit to construct shall be denied. 

(2) Review of specified sources of air quality impact. 

(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 attainment area as part of an approved control strategy by the new source 

start-up date, offsets shall not be required if the new source will not cause a new violation. 

(3) Fugitive emissions sources. Sections 4 and 10 of this administrative regulation shall rlot apply to a source or modification that will be a 

major stationary source or major modification only if fugitive emissions, to the extent quarltifiable, 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 plants with thermal dryers; 

(b) Kraft pulp mills; 

(c) Portland cement plants; 

(d) Primary zinc smelters; 

(e) Iron and steel m1lls; 

(f) Primary aluminum ore reduction plants; 

(g) Primary copper smelters; 

{h) Municipal incinerators capable of charging more than 250 tons of refuse per day; 

(i) Hydrofluoric, sulfuric, or nitric acid 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) Secondary metal production plants; 

(t) Chemical process plants, except ethanol production facilities producing ethanol by natural fermentation under the North American 

Industry Classification System {NAJCS) codes 325193 or 312140; 

(u) Fossil-fuel boilers, or combination of fossil-fuel boilers, totaling more than 250 million BTUs per hour heat input; 

(v) Petroleum storage and transfer units with a total storage capacity exceeding 300,000 barrels; 

{w) Taconite ore processing plants; 

{x) Glass fiber processing plants; · 

(y) Charcoal production plants; 

(z) Fossil fuel-fired steam electric plants of more than 250 million BTUs per hour heat input; or 

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401 KAR 51:052. Review of new sources in or impacting upon nonattainment areas. Page 2 of9 

(aa) Another stationary source category that, as of August 7, 1980, is being regulated under 42 U.S. C. 7411 or 7412. 

Section 3. Sources Locating in Designated Attainment or Unclassifiable Areas that Will Cause or Contribute to a Violation of a National 

Ambient Air 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), if the 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 

(3) For sources of sulfur dioxide {S02), particulate matter, and carbon monoxide {CO), the determination that a new major source or major 

modification will cause or contribute to a violation of a 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, Appendix W, "Guideline on Air Quality 

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 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 available to account for 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 pursuant to 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 air quality 

standard shall be made as of the start-up date. 

(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 a design, operational, or equipment standard; or 

3. Control existing sources so that the new source will not cause a violation of a national ambient air quality standard. 

(b) The new emissions limitations for the new and existing sources affected shall be state and federally enforceable in accordance with 

Section 6 of this administrative regulation. 

Section 4. Sources Locating in a Designated Nonattainment Area. This section shall apply to a new major stationary source or major 

modification that 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. 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 acl1ievable emissions rate 

(LAER) for the source. 

(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 compliance with an 

expeditious state and federally enforceable compliance scl1edule or a court decree establishing 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 of total emissions reductions of VOCs or NOx to total increased emissions of the same air pollutant shall be at least the ratio 

indicated for the following ozone nonattainment area classifications: 

1. For marginal nonattainment areas, at least 1.1 to 1; 

2. For moderate nonattainment are.as, at least 1.15 to 1; 

3. For serious nonattainment areas, at least 1.2to 1; 

4. For severe nonattainment areas, at least 1.3 to 1; and 

5. For extreme nonattainment areas, at least 1.5 to 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) of this section and Section 5(3)(e) 

of this administrative regulation shall be adequate to meet this condition. 

(5) The proposed major stationary source or major modification shall include in the application for a construction permit an analysis of the 

alternative sites, sizes, production processes, and environmental control techniques for the proposed source, which demonstrates that 

benefits of the proposed source significantly outweigh the environmental and social costs imposed as a result of its location, construction, or 

modification. 

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401 KAR 51:052. Review of new sources in or impacting upon nonattainment areas. Page 3 of9 

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 effect when the application to construct or modify a source is filed; or 

(b) The actual emissions of the source from 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 that source or source category. 

(2) Credit for emissions offsets. Credit for emissions offset purposes may be allowed for existing control if the existing control goes beyond 

the control required under 401 KAR Chapters 50 to 65 and applicable federal regulations. 

(3) General provisions for calculating offset values. 

(a) Offset calculations shall be made on a pound-per-hour basis if all facilities involved in the emissions offset calculations are operating at 

their maximum or allowed production rate. 

(b) Offsets may be calculated on a Ions-per-year basis if baseline emissions for existing sources providing the offsets are calculated using 

the actual annual operating hours for the previous two (2) year period. 

{c) If the 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 below the 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 of an air pollutant by obtaining emissions reductions of the air pollutant from·. 

1. The same source or other sources in the same nonattainment area; or 

2. A source in another nonattainment area if: 

a. The other area has an equal or higher nonattainment classification than the area in which the source is located; and 

b. Emissions from the other area contribute to a violation of the national ambient air quality standard in the nonattainment area in which the 

source is located. 

(4) Calculating offsets if an applicable emissions limitation does not exist. If the 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 existing fuel 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 of the cabinet for the type of fuel being burned when the new major source or major modification 

application is filed. 

(b) If the 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 emissions offset credit. 

(c) If the existing source commits to switch to a cleaner fuel 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 alternative control measure that will 

achieve the same degree of emissions reduction if the source switches back to a dirtier fuel 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 or curtailment. 

{b) Emissions reductions achieved by shutting down an existing emissions unit or curtailing production or operating 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 base year for the SIP planning process. 

(i) The cabinet may consider a prior shutdown or curtailment to 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 before August 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{a)(3) 

(ii)(C)(2) if: 

a. The shutdown or curtailment occurred on or after the date the construction permit application is filed; or 

b. The applicant establishes that the proposed new emissions unit is a replacement for the shutdown or curtailed emissions unit, and the 

emissions reductions achieved by the shutdown or curtailment 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, or 

trichlorofluoroethane. 

(8) Banking of emissions offset credit. 

(a) New sources obtaining permits by applying offsets after the effective date of this administrative regulation may bank offsets that exceed 

the requirements of Section 5(3) of this 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 administraf1ve regulation, even if the offsets are appned "1m mediately to a new source permit. 

(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 identifted and accounted for in Kentucky's control strategy. 

{9) Offset credit for 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 Hazardous Air Pollutants (NESHAPS) and a different emissions limitation is required by the cabinet, the more stringent limitation 

shall be used as the baseline for determining credit for emissions offsets. 

(b) The difference in emissions between NSPS or NESHAPS and other emissions limitations shall not be used as offset credit. 

Section 6. Administrative Procedures for 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 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 necessary emissions offsets may be proposed by the owner of the proposed source or by the cabinet. 

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{2) Source initiated emissions offsets. 

{a) The owner or operator of a source may propose: 

1. Internal emissions offsets, which involve reductions from sources controlled 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 Section 4(3) of this administrative regulation. 

(b) An internal emissions offset shall be included and made enforceable as a condition of the source's permit. 

(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 enforceable 

by the cabinet and the U.S. EPA 

(3) Cab1net initiated emissions offsets. 

(a) The cabinet may commit to reducing emissions from mobile sources and other existing sources to provide a net air quality benefit in the 

impact area of a proposed new source to accommodate the proposed new source. 

(b) This emissions reduction commitment shall be reflected in the emissions limitation requirements for the new and existing sources as 

required by this section. 

Section 7. Source Obligation. {1) An owner or operator of a source or modification subject to this administrative regulation 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 under the terms of an approval to construct. 

(2)(a) Approval to construct shall become invalid if construction: 

1. Is not commenced within eighteen (18) months after receipt of the approval; 

2. Is discontinued for a period of eighteen (18) months or more; or 

3. Is not completed within a reasonable time. 

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

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) months of the projected and approved commencement date. 

(3) Approval to construct shall not relieve an owner or operator of the responsibility to comply fully with applicable provisions of 401 KAR 

Chapters 50 to 65 and other applicable requirements under local, state, or federal 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 after August 7, 1980, on the capacity of the source or modification otherwise to emit a pollutant, 

the requirements of this 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 of this subsection shall apply to projects at existing emissions unrts at a major stationary source other than projects at 

a source with 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 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 of the following information: 

1. A description of the project; 

2. Identification of the emissions units for which emissions of a regulated NSR pollutant may be affected by the 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. 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) of this subsection, the owner or operator shall: 

1. Monitor the emissions of any regulated NSR pollutant that could increase as a result of the project and that are emitted by an emissions 

unit identified in paragraph (a)2 of this subsection; and 

2. Calculate and maintain a record of the annual emissions, in tons per year on a calendar year basis, for: 

a. Five (5) years following resumption of regular operations after the change; or 

b. Ten (10) years if the project increases the design capacity of or potential to emit for that regulated NSR pollutant at the emissions unit. 

(d) If the 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; and 

2. Shall not be required to obtain a determination from the cabinet before beginning actual construction; and 

3. Shall submit a report to the cabinet within sixty (60) days after the end of each year during which records are required to be generated 

under paragraph (b) of this 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 operator shall submit a report to the cabinet 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 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 cabinet within sixty (60) days after the end of the year during which records are required to be 

generated under paragraph (b) of this subsection and shall contain the following: 

a. The name, address, and telephone number of the major stationary source; 

b. The annual emissions as calculated pursuant to paragraph (c) of this subsection; 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 this subsection 

available for review upon request for inspection by the cabinet or the general public pursuant to 401 KAR 52:100.\ 

Section 8. Permit Condition Rescission. (1} An owner or operator holding a permit for a stationary source or modification that was issued 

pursuant to 401 KAR 51 :050 or 51 :051 E may request that the cabinet rescind the applicable conditions. 

(2) The cabinet shall rescind a permit condition if the owner or operator: 

(a) Requests and demonstrates to the satisfaction of the cabinet that this administrative regulation does not apply to the source or 

modification or to a portion of the source or modification if construction will have commenced after September 22, 1982; and 

(b) Demonstrates that the rescission will not violate the requirements of Sections 4(3) and 7 of this 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) National wilderness areas and national memorial parks which exceed 5,000 acres in size; and 

(c) National parks that exceed 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 of this administrative regulation shall apply only to sources that may impact a mandatory Class I 

federal area. 

(4) The following 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 lakeshore or seashore; and 

(b) A national park or national wilderness area established after August 7, 1977, which exceeds 10,000 acres in size. 

Section 10. Protection of Visibility. (1) New source 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 

stationary source or modification shall meet the requirements of this 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 non attainment under 42 U.S.C. 7407(d)(1 )(A)(i) and potentially have an impact on visibility in a Class I area. 

(c) This section shall apply to a major stationary source or major modification for each pollutant subject to regulation under 42 U.S. C. 7401 

to 7626that it will emil, except as provided in paragraphs (d) and (e) of this subsection. 

(d) This sed1on shall not apply to a particular major stationary source 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 Governor of the Commonwealth requests that it be exempt from the requirements of this section; and 

2. The source is a portable stationary source that has previously received a permit under this section and will be temporarily relocated~ and 

(a} The emissions from the source will not exceed the allowable emissions; 

b. The emissions from the source will not impact a Class I area or an area where an applicable increment is known to 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 at the new location. The notice shall be given to the cabinet not less than ten (10) days in advance of the proposed relocation unless 

a different time duration is previously approved by the cabinet pursuant to this section. 

(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 of that pollutant from 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 of a source shall provide an analysis of the impairment to visibility that will occur in a 

Class I area as a result of the 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 protect the visibility and other air quality related values of the Class l 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 

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 major stationary source or major modification that may affect visibility in a Class I area. The notification shall: 

1. Include a copy of all information relevant to the permit application; 

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 least sixty (60} days prior to a public hearing on the application for a permit to construct; and 

3. Include an analysis of the proposed source's anticipated impacts on visibility in a Class I area. 

(c}1. The cabinet shall consider an analysis by the federal land manager, provided within thirty (30) days of the 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 I area. 

2. If the 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 

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 

account the geographic extent, intensity, duration, frequency, and time of visibility impairments, and how these factors correlate with the limes 

of visitor use of the Class I area, and the frequency and time of natural conditions that 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 follow the procedures at 40 C.F.R 52.21(r), effective July 1, 2009, to the extent that the procedures of 401 KAR 52:100 do not apply. 

(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 of preventing future, and remedying ex·lsting, impairment of vis'lbility in Class I areas which impairment results from manmade 

air pollution. 

(b) In making the decision to issue a permit, the cabinet shall consider: 

1 The costs of compliance; 

2. The time necessary for compliance; 

3. The energy and non-air quality environmental impacts of compliance; and 

4. The useful life of the source. 

(6) Monitoring. 

(a} The cabinet may require monitoring of visibility 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 by the U.S. EPA. 

(b) The mon1toring method selected shall be determined on a case-by-case basis by the cabinet. 

(c) The cabinet shall not undertake visibility monitoring in a Class I area without the approval of the 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 if the PAL meets the requirements of this section. (1} General provisions. 

(a} Ari owner or operator may execute a project without triggering major NSR, if the 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 of Section 7(4} of this administrative regulation concerning restrictions on relaxing enforceable 

emissions limitations that the major stationary source used to avoid applicability of the major NSR 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 state requirements, emissions limitations, and work. practice requirements that were established prior to the effective date of the 

PAL. 

(c) The cabinet shall not allow a PAL for VOC or NOx for any major stationary source located in an extreme ozone nonattainment area. 

(2} Permit application requirements. The owner or operator of a 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 their potential to emit; 

(b) Identification of the federal and state applicable requirements, emissions limitations, and work practice requirements that apply to each 

emissions untt; 

(c) Calculations of the baseline actual emissions for the emissions untts with 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 a twelve {12} month rolling total for each month as required by subsection (12)(a) of this 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 of this 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 

stationary source, 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 that the sum of the monthly emissions from each emissions unit under the PAL for the previous twelve {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 of 

the preceding monthly emissions from the PAL effective date for each emissions unit under the PAL is less than the PAL; 

(b) The PAL shall be established in a PAL permit that: 

1. Meets the public participation requirements in subsection (4) of this section; and 

2. Contains all the requirements of subsection (6) of this section; 

(c) A PAL shall include fugitive emissions, to the extent quantifiable, from all emissions units that emit or have the potential to emit the PAL 

pollutant at the major stationary source; 

(d) Each PAL shall regulate emissions of only one (1) pollutant; 

(e) Each PAL shall have a 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 of subsections (11} to (13) of this section for each emissions unit under the PAL through the PAL effective period; and 

{g) Emissions reductions of a PAL pollutant that occur during the PAL effective period shall not be creditable as decreases for offsets 

under 40 C.F.R. 51. 165{a)(3)(ii), unless: 

1. The level of the PAL is reduced by the amount of the emissions reductions; and 

2. The reductions would be creditable in the absence of the 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) 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 before taking final action on a PAL permll or permit revision. 

(5) Setting the ten (10) year PAL level. 

(a) The PAL level for a major stationary source shall be the sum of the baseline actual emissions of the 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 KAR 51:001, Section 1 or under 42 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 emissions for all existing emissions units. 

(c) A different consecutive twenty-four (24) month period may be used for each 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 units for which actual construction began after the twenty-four (24) month period shall be added to the PAL level in an 

amount equal to the potential to emit of the 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 of prior to issuance of the PAL permit. 

(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 per year; 

(b) The PAL permit effective date and the expiration date of the PAL or PAL effective period; 

(c) Specification in the PAL permit that if a major stationary source owner or operator applies 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 the cabinet; 

(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) of this 

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 requirement that the major stationary source owner or operator shall monttor all emissions units in accordance with the provisions in 

subsection (12) of this section; 

(h) A requirement that the owner or operator shall retain the records required under subsection (12) of this section on site. Records may be 

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retained in an electronic format; 

(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 PAL 

(7) PAL effective period and reopening of a PAL permit 

(a) A PAL effective period shall be ten (1 0) years. 

(b) The cabinet shall reopen a PAL permit to: 

1 Correct typographical or calculation errors made in setting the PAL; 

2. Reflect a more accurate determination of emissions used to establish the PAL; 

3. Reduce the PAL if the owner or operator of the major stationary source creates creditable emissions reductions for use as offsets under 

40 C.F.R 51.165(a)(3}(ii); or 

4. Revise the PAL to reflect an increase in the PAL according to subsection (1 0) of this section. 

(c) The cabinet may reopen the PAL permit, during the PAL effective period, to: 

1. Reduce the PAL to reflect newly applicable federal requirements with compliance dates after the PAL effective date; 

2. Reduce the PAL consistent with any other 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 if the cabinet determines that a reduction is necessary to avoid causing or contributing to: 

a. A National Ambient Air Quality Standard (NAAQS) or PSD increment violation; 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 

manager and for which information is available to the general public. 

(d) All permit reopenings shall be carried out under the public participation requirements of subsection (4) of this section except for permit 

reopenings to correct typographical or calculation of errors that do 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 of emissions units, that existed under the PAL shall comply with an allowable emissions limitation 

under a 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 of emissions units, by distributing the PAL allowable emissions for the major stationary source among each of 

the emissions units that existed under the 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 if the PAL has been adjusted. 

2. The cabinet shall provide the date and procedure the owner or operator shall use to distribute the PAL allowable emissions. 

3. The cabinet shall issue a revised permn: incor;::Jorating allowable limits for each emissions unit, or each group of emissions units, as the 

cabinet determines is appropriate. 

(b) Each emissions unit shall comply with the allowable emissions limitation on a twelve (12) month rolling basis. The cabinet may approve 

the use of monrtoring systems other than CEMS, CERMS, PEMS, or CPMS if the alternate monrtoring 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 modification at the major stationary source shall be subject to major NSR requirements. · 

(e) The major stationary source owner or operator shall continue to comply with any state or federal applicable requirements eliminated by 

the PAL that applied during or before the PAL effective period, except for those emissions limrtations established pursuant to Section 7(4) of 

this administrative regulation. 

(9) Renewal of a PAL 

(a} Public participation requirements. 

1. The cabinet shall follow the public participation procedures specified in subsection (4) of this section in approving a request to renew a 

PAL for a major stationary source. 

2. The cabinet shall provide a written rationale for the proposed PAL level for public review and comment 

3. Any person may propose a PAL level for the 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 of a PAL at least six (6) months before the date of 

permit expiration but not earHer than eighteen (18) months before permit expiration. 

2. The deadline for application submittal shall ensure that the permit shall not expire 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 until the revised permit with the renewed PAl is issued. 

(c) Application requirements. The application to renew a PAL permit shall contain: 

1. The information required in subsection (2) of this section; 

2. A proposed PAl level; 

3. The sum of the potential to emit of all emissions units under the PAL with supporting documentation; and 

4. Any other information the owner or operator wishes the 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 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 below the 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, if the emissions level calculated according to subsection (5) of this section is equal to or greater than eighty (80) percent of the PAL 

level; or 

3. The cabinet may set the PAL at a level that is determined to be: 

a. More representative of the source's baseline actual emissions; or 

b. Appropriate considering the following factors: 

(i) Air quality needs; 

(ii} Advances in control technology; 

(iii) Anticipated economic growth in the area of the source; 

(iv) The cabinet's goal of promoting voluntary emissions reductions; or 

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(v) Other factors 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 of subsection {1 O) of this section. 

{e) The PAL shall be adjusted in conjunction with the PAL permit renewal or Title V permit renewal, whichever comes first, if: 

1. The compliance date for a state or federal applicable requirement that applies to the PAL source 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 limitation during the PAL effective 

period if the major stationary source complies with the provisions of this 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 a complete application, which shall include: 

1. Identification of the emissions units contributing to the increase in emissions for the PAL major modification; 

2. Demonstration that increased PAL, as calculated in paragraph {c) of this subsection 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 when the application is submitted, unless the emissions unit is currently required to comply with a BACT or 

LAER requirement that was established within the preceding ten (1 0} 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 of BACT or LAER for 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 begins to emit the 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 significant level shall not apply in deciding for which 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 subject to the PAL or shall continue to be subject to the PAL 

(c) Calculation of increased PAL The cabinet shall calculate the new PAL as the sum of the allowable emissions for each modified or new 

emissions unit, plus the sum of the baseline actual emissions of the significant and major emissions units assuming application of BACT 

equivalent controls, plus the sum of the baseline actual emissions of the small emissions units. 

(d) Public notice requirement The public notice requirements of subsection (4} of this 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 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 by the cabinet pursuant to this subsection; and 

b. Based on sound science and meet generally-acceptable scientific procedures for data quality and manipulation; 

3. The data generated by a monitoring system shall meet minimum legal requirements for admissibility in a judicial 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) of this subsection; 

5. The cabinet may approve an alternative monitoring approach that meets the requirements of subparagraphs 1 to 3 of this paragraph; 

'"' 6. Failure to use a monitoring system that meets the requirements of this section shall render the PAL invalid. 

(b) Minimum performance requirements for approved monitoring approaches. If conducted in accordance with the minimum requirements 

in paragraphs (c) to (i) of this subsection, the following shall be acceptable monitoring approaches: 

1. Mass balance calculations for activities using coatings or solvents; 

2. CEMS; 

3. CPMS or PEMS; and 

4. Emissions factors. 

(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 of validating the published content of the PAL pollutant contained in or created by all materials used in 

or at the emissions unit; 

2. If it cannot be accounted for in the process, assume that the 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. If the vendor of the material or fuel 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 determines there is site-specific data or a site-specifiC monitoring 

program to support another pollutant content within the range. 

(d) CEMS. An owner or operator using CEMS to monitor PAL pollutant emissions shall meet the following requirements: 

1. CEMS shall comply with applicable Performance Specifications found in 40 C.F.R. Part 60, Appendix A; and 

2. CEMS shall sample, analyze, and record data at least every fifteen (15) minutes while 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 or the PEMS shall be based on current site-specific data demonstrating a correlation between the monitored parameter and 

the PAL pollutant emissions across the range of operation of the emissions 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 less frequent interval approved by the cabinet. 

(f) Emissions factors. An owner or operator using emissions factors to 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 unit shall operate within the designated range of use for the emissions factor, if applicable; 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 factor within six (6) months of PAL permit issuance if the cabinet determines 

that the testing is required and technically practicable. 

(g) A source owner or operator shall record and report maximum potential emissions without considering enforceable emissions limitations 

http://www.lrc.ky.gov/kar/401/051/052.htm 1114/2013 
401 KAR 51 :052. Review of new sources in or impacting upon nonattainrnent areas. Page 9 of9 

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) If an owner or operator of an 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 in paragraphs (c) to (g) of this 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 if a correlation cannot be demonstrated; or 

2. If there is not a correlation between monitored parameters and the PAL pollutant emissions, determine that operation of the emissions 

unit during operating conditions is a violation of the PAL. 

(i) Revalidation. All data used to establish the PAL pollutant shall be revalidated through performance testing or other scientifica!ly valid 

means 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 or operator to retain a copy of all records necessary to determine compliance with any 

requirement of this section and of the PAL, including a determination of each emissions unit's twelve {12) month rolling total emissions for five 

(5) years from the date of the determination. 

(b) The PAL permit shall require an owner or operator to retain a copy of the following records for the duration of the PAL effective period 

plus five (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 and the data used to certify the compliance. 

(13) Reporting and notification requirements. The owner or operator shall submit semi-annual monitoring reports and prompt deviation 

reports to the cabinet in accordance with 401 KAR Chapter 52 that meet the following requirements: 

(a) Semiannual report. The semiannual report shall be submitted to the cabinet within thirty (30) days of the 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 pursuant to 

subsection {12)(a) of this 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 to the major stationary 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 of permanent or temporary shutdown of any monitoring system induding: 

a. The reason for the shutdown; 

b. The anticipated date that the 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 of the 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 pursuant to 40 C.F.R. 70.6(a)(3)(iii)(B) shall satisfy this 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 the following 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; 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 of the 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 of the test or method. 

(14) Transition requirements. 

(a) After the U.S. EPA approves the Kentucky SIP revisions for the PAL provisions published at67 Fed. Reg. 80186, December 31, 2002, 

the cabinet shall only issue a PAL that complies with the requirements of this section. 

(b) The cabinet may supersede a PAL that was established before August 10, 2006, with a PAL that complies with the requirements of this 

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/40 110511052.htm 1/14/2013 
PROPOSED 

REGULATIONS 
ENERGY AND ENVIRONMENT CABINET 

Steven L Beshear 

Governor 

Ms. Donna Little 

Regulations Compiler 

Legislative Research Commission 

Capitol Annex Room 029 

Frankfort, Kentucky 40601 

Dear Ms. Little: 

capital Plaza Tower 

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 

enclosed administrative regulations for publication in the July 1, 2012, Administrative Register of 

Kentucky. 'This submittal includes the original and five copies of the following regulations: 

401 KAR 51:001. Definitions for 401 KAR Chapter 51. (Amendment) 

401 KAR51:017. Prevention of significant deterioration of air quality. (Amendment) 

401 KAR 51 :052. Review of new sources in or impacting upon nonattainment areas. (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, or LauraLund@ky.gov, if 

you have any questions regarding this submittal or the public hearing. 

LKP/ll 

Enclosures 

KentuckyUnbridledSpirit.com 

Sinc:r:l~ V t% ffat;'-".;;..,-· 

Leonard K. Peters, 

Secretary 

An Equal Opportunity EmplOyer MIF/0 
SENATE MEMBERS 

David L. Williams 

President. LRC Co-Chair 

Katie Kratz Stine 

President Pro Tern 

Robert Stivers 

Majority Floor Leader 

R. J. Palmer II 

Minority Floor Leader 

LEGISLATIVE RESEARCH COMMISSION 

Dan Seum 

Majority Caucus Chair 

Johnny Ray Turner 

Minority Caucus Chair 

Carroll Gibson 

Majority Whip 

Jerry P. Rhoads 

Minority Whip 

TO: 

FROM: 

State Capitol 700 Capitol Avenue Frankfort KY 40601 

502-564-8100 

Capitol FAX 502-223-5094 

Annex FAX 502-564-6543 

lrc.ky.gov 

Robert Sherman 

Director 

MEMORANDUM 

Laura Lund, Environmental Technologist III 

Division for Air Quality 

Donna Little 

Regulations Compiler 

HOUSE MEMBERS 

Gregory 0. Stumbo 

Speaker, LRC Co-Chair 

Larry Clark 

Speaker Pro Tam 

Rocky Adkins 

Majority Floor Leader 

Jeff Hoover 

Minority Floor Leader 

Robert R. Damron 

Majority Caucus Chair 

Bob DeWeese 

Minority Caucus Chair 

Tommy Thompson 

Majority Whip 

Danny R. Ford 

Minority Whip 

RE: Acknowledgement of Proposed Administrative Regulations and/or Amendment401 KAR51:001,401 KAR51:017, and401 KAR51:052 

DATE: June 14, 2012 

A copy of each administrative regulation listed above is enclosed for your files. These administrative 

regulations are tentatively scheduled for review by the Administrative Regulation Review Subcommittee 

at its August 2012 meeting. We will notify you of the date and time of this meeting when it has been 

scheduled. 

Pursuant to KRS 13A.280, if a public hearing is held or you receive written comments during the public 

comment period, the Statement of Consideration for these administrative regulations is due by noon on 

August 15,2012. Please reference KRS 13A.270 and 13A.280 for other requirements relating to public 

hearings and the Statement of Consideration. 

If you have any questions, please do not hesitate to contact me at (502) 564-8100. 

Enclosures 
Steven L. Beshear 

Govemor 

Scott Davis, Chief 

Air Planning Branch 

U.S. EPA, Region 4 

61 Forsyth Street, SW 

Atlanta, Georgia 30303 

Dear Mr. Davis: 

Energy and Cabinet 

Department for Environmental Protection 

Division for Air Quality 

200 Fair Oaks Lane, 1st Floor 

Frankfort, Kentucky 40601-1403 

air,ky.gov 

June 18, 2012 

Leonard K. Peters 

Secretary 

The Kentucky Division for Air Quality encloses for your review and comment a proposal to 

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 KAR 51:001. Definitions for 401 KAR Chapter 51. (Amendment) 

401 KAR 51:017. Prevention of significant deterioration of air quality. (Amendment) 

401 KAR 51:052. Review of new sources in or impacting upon nonattainment areas. (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 

be published in the July 1, 2012, Administrative Register of Kentucky. A public hearing will be 

conducted on July 24,2012, at 10:00 a.m., in Conference Room 201B of the Division for Air 

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

amendments will be accepted until close of business on July 31, 2012. 

If you have any comments or questions regarding this submittal, please contact Laura Lund 

at (502) 564-3999, ext. 4428, or Laura.Lund@ky.gov. 

Cc: Lynorae Benjamin 

JSU!l 

Enclosures 

KentuckyUnbridledSpirit.com 

):aJtW 

JohnS. Lyons ~ Director 

An Equal Opportunity Employer MIF/D 
Steven L. Beshear 

Governor 

Ms. Gwen Keyes Fleming 

Regional Administrator 

U.S. EPA, Region 4 

Energy and Environment Cabinet 

Department for Environmental Protection 

Division for Air Quality 

200 Fair Oaks Lane, 1st Floor 

Frankfort, Kentucky 40601-1403 

air.ky.gov 

June 27,2012 

Sam Nunn Atlanta Federal Center 

61 Forsyth Street, SW 

Atlanta, GA 30303-8960 

Dear Ms. Fleming, 

Leonard K. Peters 

Secretary 

The Kentucky Division for Air Quality is requesting that the EPA propose approval of the following 

proposed administrative regulations by parallel processing for the purpose of expediting the adoption of these 

regulations into the Kentucky SIP. The amendments to these administrative regulations revise defmitions to 

reflect the New Source Review (NSR) program at the federal level. This regulatory action establishes 

significant impact levels, significant monitoring concentrations, and baseline dates for the implementation of 

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 

Commission on June 14,2012, and copies were submitted to the EPA on June 19,2012. 

401 KAR 51:001. Definitions for 401 KAR Chapter 51. 

401 KAR 51:017. Prevention of significant deterioration of air quality. 

401 KAR 51:052. Review Of new sources in or impacting upon nonattainment areas. 

A schedule for fmal adoption of the administrative regulations into the Kentucky SIP is as follows: 

End of public comment period, in which a public hearing is July 31,2012 conducted 

Submit Statement of Consideration of comments received August 15,2012 during nublic comment neriod 

First legislative subcommittee (Administrative Regulation September 2012 Review Subcommittee) reviews re!!ulation 

Second legislative subcommittee (Natural Resources and October 2012 Environment Subcommittee) reviews regulation 

If reviewed by 2nd subcommittee, 

the effective date is at adjournment 

Announce effective date of regulation of meeting, else 30 days after the 

regulation referral by 1 •t 

subcommittee 

Submit amendments to EPA as an amendment to Kentucky's SIP Early November 2012 

KentuckyUnbridledSpirit. com An Equal Opportunity Employer M/F/D 
Ms. Gwen Keyes Fleming 

June 27,2012 

Page 2 

If you have any comments or questions regarding this request, please contact Laura Lund at (502) 

564~3999 orLaura.Lund@ky.gov. 

Cc: Lynorae Benjamin 

Scott Davis 

JSWI 
Steven L. Beshear 

Governor 

Ms. Gwen Keyes Fleming 

Regional Administrator 

U.S. EPA, Region 4 

Energy and Environment Cabinet 

Department for Environmental Protection 

Division for Air Quality 

200 Fair Oaks Lane, 1st Floor 

Frankfort, Kentucky 40601-1403 

air.ky.gov ., 

July 3, 2012 

Sam Nunn Atlanta Federal Center 

61 Forsyth Street, SW 

Atlanta, GA 30303-8960 

Dear Ms. Fleming, 

Leonard K. Peters 

Secretary 

The Kentucky Division for Air Quality (KyDAQ) requests that the U.S. EPA grant conditional 

approval of elements 110(a)(2)(C) and 110(a)(2)(J) of the Clean Air Act (CAA) related to prevention of 

significant deterioration (PSD) requirements for the 1997 and 2006 fine particulate matter (PM2.5) 

National Ambient Air Quality Standards (NAAQS). KyDAQ is in the process of revising the Kentucky 

PSD regulations to meet current requirements for the PM2.s standards. Specifically, the following 

administrative regulations into the Kentucky State Implementation Plan (SIP) are being amended: 

401 KAR 51:001. Definitions for 401 KAR Chapter 51o 

401 KAR 51:017. Prevention of significant deterioration of air quality. 

401 KAR 51:052. Review of new sources in or impacting upon nonattainment areas. 

KyDAQ submitted the aforementioned proposed regulation amendments to EPA for review and 

comment on June 19, 2012, and requested parallel processing of these amendments on June 27, 2012. 

Until these proposed amendments become effective, Kentucky's SIP will not provide for the most current 

requirements related to the PM2.

5 standards. However, Kentucky will have a complete SIP meeting all 

permitting program requirements in accordance with the CAA once these amendments are effective. 

Kentucky will strive to provide a SIP revision to address the current PSD requirements for the PM2.s 

standards and in accordance with section 110(k)(4) of the CAA, and in accordance with the following 

schedule for the SIP revision: 

End of public comment period, in which a public hearing is July31,2012 conducted 

Submit Statement of Consideration of comments received August 15, 20~2 during vublic comment period 

Kentuck:yUnbridledSpirit. com An Equal Opportunity Employer MIF/D 
Ms. Gwen Keyes Fleming 

July 3, 2012 

Page2 

First legiSlative subcommittee (Administrative Regulation 

Review Subcommittee) reviews regulation 

Second legislative subcommittee (Natural Resources and 

Environment Subcommittee) reviews regulation 

Announce effective date of regulation 

Submit amendments to EPA as an amendment to Kentucky's SIP 

September 2012 

October 2012 

If reviewed by 2nd subcommittee, 

the effective date is at adjournment 

of meeting, else 30 days after the 

regulation referral by 1st 

subcommittee 

Early November 2012 

If you have any comments or questions regarding this request, please contact Ms. Andrea Smith at 

(502) 564-3999 or Andrea.Smith@ky.gov. 

Cc: Lynorae Benjamin 

Scott Davis 

JSL/11 
1 ENERGY AND ENVIRONMENT CABINET 

2 Department for Environmental Protection 

3 Division for Air Quality 

4 (Amendment) 

5 401 KAR 51:001. Definitions for 401 KAR Chapter 51. 

JUN 1 4 2012 

~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 Appendices A, B, 61, 61 Appendix B, 63 Appendices A9 D, 70.2, 75, 82, 96, 42 U.S.C. 7401-7671q 

10 STATUTORY AUTHORITY: 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 of air 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 [nor otherwise 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 by the Acid Rain Program under 42 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 unit as determined according to the following: 

3 1. Actual emissions as of a particular date equals the average rate, in tons per year, 

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 a different time 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 of the 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 particular date, the potential to emit of the unit on that date; and 

15 (d) Does not mean: 

16 1. Calculating if a significant emissions 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 emit the PAL pollutant. 

21 (4) "Adverse impact on visibility" is defined by 40 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) "Air contaminant" is defined by KRS 224.01-01 0(1). 

3 (7) "Air pollutant" means air contaminant. 

4 (8) "Air pollution" is defined by KRS 224.01-01 0(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 of the normal product of the source or 

8 to its normal operation. 

9 (10) "Allocate" or "allocation" means the number of NOx allowances to be credited 

1 0 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 those with a future compliance 

19 date; or 

20 3. The emissions rates specified as a federally enforceable permit condition, 

21 including those with a future 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. of this subsection. 

3 (13) "Alteration" means: 

4 (a) The installation or replacement of air pollution control equipment at a source; 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 or that results in the emission of an air pollutant, to which a standard 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 of appropriate preventive or control measures. 

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

18 (18) "AOAC" means Association of Official Analytical Chemists. 

19 (19) "ASTM" means American Society for Testing 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 average that: 

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. of this subparagraph; and 

13 2. If a 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 by the owner or operator 

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 of the project or the date a complete permit application is received by the 

22 cabinet for a permit required under 401 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 consecutive twenty-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, if the 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. of this subparagraph. 

19 2. If a project involves multiple emissions units, only one (1) consecutive twenty-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 that will result from the initial construction and operation of the new unit and thereafter, 

2 for all other purposes, equals the unit's potential to emit; or 

3 (d) For a PAL for a stationary source, is determined as follows: 

4 1. For an existing EUSGU, in accordance with the procedures contained in 

5 paragraph (a) of this subsection; 

6 2. For other existing emissions units, in accordance with the procedures contained 

7 in paragraph (b) of this subsection; and 

8 3. For a new emissions unit, in accordance with the procedures contained in 

9 paragraph (c) of this subsection. 

10 (21) "Baseline area11 means an intrastate area and every part of that area 

11 designated as attainment or unclassifiable pursuant to 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 date would construct or would have an air quality impact equal to or greater than one (1) 

14 ~g/m3 annual average of the pollutant for which the minor source baseline date is 

15 established for SO<, N02, or PM10 or 0.3 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 unless the cabinet rescinds the corresponding minor source 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 mark the initiation of the 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 by the cabinet pursuant to 401 KAR 51:017, Section 8, after taking 

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 innovative fuel combustion techniques for control of that 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 of standards approved by the cabinet, if: 

10 1. The cabinet determines pursuant to 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 unit would make the imposition ·of an emissions standard infeasible; 

13 2. The standard establishes the emissions reduction achievable by implementation 

14 of the design, equipment, work practice, or operation; and 

15 3. The standard provides for compliance by means that achieve equivalent results. 

16 (26) "BOD" means biochemical oxidant demand. 

17 (27) "Boiler" means an enclosed fossil or other fuel-fired combustion device used to 

18 produce heat and to transfer heat to recirculating water, steam, or other 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 under the control of the same person or persons under common control; and 

3 (d) Do not include the activities of a vessel. 

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 by 40 C.F.R. 60.2. 

8 (34) "elm" means cubic feet per minute. 

9 (35) "CH4' means methane. 

10 (36) "Clean coal technology" is defined by 40 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 oxidant demand. 

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 of electricity generation or steam production. 

21 (43) "Combustion turbine" means an enclosed fossil or other fuel-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 owner or 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 or permits, and: 

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

11 construction of the source, to be completed within a reasonable time; 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 of actual construction of the source to be completed within a reasonable time. 

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 rep owe red; 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 under 40 C.F.R. 96.4 is the unit's date of commencement of commercial 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 or 40 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 if the 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 of commencement of operation. 

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

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

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

14 or standard. 

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

16 to Kentucky by the U.S. EPA to 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 of an 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 of emissions 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 under the 

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 September 30 of the 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 224.01-01 0(11). 

9 (59) "dscf' means dry cubic feet at standard conditions. 

10 (60) "dscm" means dry cubic meter at 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 twenty13 five (25) megawatts or more of electricity, some of which 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 or from 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 of emissions 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) of this subsection or is a replacement unit 

4 (65) "Enforceatile as a practical matter" means that the emission or other standards 

5 contained in a permit or compliance schedule include: 

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

7 subject to 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 a consistent and quantitatively known relationship to the reference 

15 method, under specified 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 for the 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 a source that is not a new source. 

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 air quality standard for ozone. 

3 (71) "oF" means degree Fahrenheit. 

4 (72) "Federal land manager" is defined by 40 C.F.R. 51.166(b)(24). 

5 (73) "Federally enforceable" means all limitations and conditions that are 

6 enforceable by the U.S. EPA, including: 

7 (a) Requirements developed under 40 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 adherence to a permit issued under the program. 

14 (74) "Federally enforceable permit" means a penmit issued under 401 KAR 52:020 

15 or 52:030, 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 of the 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 last year of operation of the unit prior to 1995; or 

2 (b) The combustion of fossil fuel, alone or in combination with another fuel, if the 

3 fossil fuel is projected to comprise 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 of the date during 

5 the year the unit begins combusting fossil fueL 

6 (78) "ft" means feet or foot 

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

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

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

10 through a stack, chimney, vent, or other functionally 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 a device 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 of the fuel, in BTU per lb, and the fuel feed rate into a combustion device, 

19 in mass of fuel per unit of time, 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 by 40 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 of flares during startup, shutdown, or malfunction permitted under the 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) "H20" means water. 

14 (95) "H,S" means hydrogen sulfide. 

15 (96) "H2S04" 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 or turbine" means a fossil fuel-fired boiler, combustion turbine, 

20 or a combined cycle system having a maximum design heat input of 250 MMBTU per 

21 hour or more that is not an electric generating unit. 

22 (100) "Innovative control technology" is defined by 40 C.F.R. 51.166(b)(19). 

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

18 
1 air from a process that operates for less than any six (6) consecutive minutes. 

2 (102) "J" means joule. 

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 a certain restriction. 

8 (107) "Long dry kiln" means a kiln that employs no preheating of the feed and has a 

9 dry inlet feed. 

10 (1 08) "Long wet kiln" means a kiln that employs no preheating of the feed and the 

11 inlet feed to the kiln is a slurry. 

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

13 (11 0) "Lowest achievable 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 demonstrates that the limitation is not achievable; or 

17 2. The most stringent emissions limitation achieved in practice by the class or 

18 category of stationary source; 

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 pursuant to 40 C.F.R. Parts 60, 61, or 63. 

23 (111) "m" means meter. 

19 
1 (112) "m3

" means cubic meter. 

2 (113) "Major emissions unit" means: 

3 (a) Any emissions unit that emits or has the potential to emit 100 tons per year or 

4 more of a 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 amount that is equal to or greater than the major source threshold for the PAL pollutant 

7 as defined by the Clean Air Act, 42 U.S.C. 7401- 7671q for nonattainment areas. 

8 (114) "Major modification" means a physical change in or a change in the method of 

9 operation of a major stationary source that results in a significant emissions increase 

10 and a significant net emissions 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 significant for ozone. 

14 (b) A physical change or change in the method of operation 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 under a federal 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 of an alternative fuel or raw material by a stationary source that: 

21 a. The source was capable of accommodating before January 6, 1975, for 401 KAR 

22 51:017, or December 21, 1976, for 401 KAR 51:052; unless the change would be 

23 prohibited by a federally enforceable permit condition that was 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 pursuant to 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, pursuant to 401 KAR 51 :017; or pursuant to 401 KAR 52:020 and 51 :016E; 

10 6. A change in ownership at a stationary 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 is terminated; 

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 of a regulated pollutant emitted by the unit, on a pollutant-by-pollutant 

18 basis; or 

19 9. The reactivation of a very clean coal-fired electric utility steam generating unit 

20 (c) Instead of this 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 PAL for that 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, January 6, 1975; [aA€1] 

9 (b) For nitrogen dioxide, February 8, 1988· and 

10 (c) For PM2.5, October 20, 2010. 

11 (118) "Major stationary source" means: 

12 (a)1. A stationary source of air pollutants that emits, or has the potential to emit, 100 

13 tons per year or more of a regulated NSR pollutant, except that: 

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 per year or more of carbon monoxide in a serious carbon monoxide 

22 nonattainment area where stationary sources contribute significantly to carbon 

23 monoxide levels; and 

22 
1 c. Seventy (70) tons per year 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, 1 00 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 

1 0 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 of fossil 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, 

21 250 tons per year or more of a regulated NSR pollutant; or 

22 3. Any physical change that will occur at a stationary source not otherwise qualifying 

23 under this subsection as a major stationary source, if the 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 major for ozone; and 

4 (c) Fugitive emissions are included only if the source belongs to one (1) of the 

5 following categories of stationary sources: 

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 copper smelters; 

13 8. Municipal incinerators capable of charging more than 250 tons of refuse per day; 

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 or 312140; 

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. Another stationary source category that, as of August 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 or equipment 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, if the administrator of the U.S. EPA, in consultation with the Secretary of the 

21 U.S. Department of Interior, has determined visibility to be an important value. 

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 of the unit. 

5 (123) "Maximum potential hourly heat input" means an hourly heat input used for 

6 reporting purposes if a 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, if the 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" means the 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 of the unit except for 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 higher of the manufacturer's maximum rated hourly heat 

21 input or the highest observed 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 of decreasing NOx emissions through: 

4 (a) Burning part of the fuel at a lower temperature; and 

5 (b) Reducing-conditions at the solid waste injection point that rnay destroy some of 

6 the NOx formed upstream in the kiln burning zone. 

7 (129) "min" means minute. 

8 (130) "Minor source 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 or the Kentucky SIP submits a complete application. The trigger date 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 trigger date 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 pursuant to 40 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 pursuant to 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 

1 0 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 a standard 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 a source category considering available information; 

20 2. An increase in production rate of an affected facility, if that increase can be 

21 accomplished without a capital expenditure on that facility; 

22 3. An increase in the hours of operation; 

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 prior to 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 determines to be less environmentally beneficial; or 

10 7. The relocation or change in ownership of a source. 

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 of any applicable 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 of visual range, contrast, or coloration. 

29 
1 (143) 11Necessary 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 pursuant to 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 by which the sum of subparagraphs 1 and 2 of this 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 under this 

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 particular change 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 that the increase from 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 date that the increase from the change occurs. 

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

30 
1 1. The cabinet or the U.S. EPA has not relied on the change in issuing a permit for 

2 the source pursuant to 401 KAR 51:017, 51:052, or 40 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 evaluate the net emissions increase for PM10 . 

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

11 of actual emissions exceeds the old level. 

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

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

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

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

16 construction on the particular change begins; and 

17 3. The decrease has approximately the same qualitative significance for public 

18 health and welfare as that attributed to the increase from the particular change. 

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, not to exceed 180 days. 

23 (h) The term, actual emissions, as defined in subsection (2) of this 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 by test 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 means the U.S. EPA. 

13 (151) "NOx" means nitrogen oxides. 

14 (152) "NOx allowance" is defined by 40 C.F.R. 96.2. 

15 (153) "NOx Allowance Tracking System" or "NATS" is defined by 40 C.F.R. 96.2 For 

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

17 (154) "NOx authorized account representative" is defined by 40 C.F.R. 96.2. 

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

19 equivalent of the NOx allowances available for compliance deduction for the unit and 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 under 40 C.F.R. 96.42(e) for the control period; 

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

32 
1 (c) Withdrawal from the NOx budget program under 40 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 by 40 C.F.R. 96.2. 

8 (158) "NOx Budget Trading Program" is defined by 40 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 under 401 KAR 51:160 or 40 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 permit under 401 KAR 51:195 is 

19 submitted and not denied or withdrawn; 

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 or withdrawn; 

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 not denied or withdrawn; or 

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

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 light and obscure the view of an 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 unit for which an application 

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

22 any holding company, utility system, or plant manager of the unit or source. 

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

34 
1 Budget Trading Program through a final NOx budget opt-in penmit. 

2 (168) "Owner'', for a NOx budget unit, is defined by 40 C.F.R. 96.2. 

3 (169) "Owner or operator" means a person who owns, leases, operates, controls, or 

4 supervises an affected facility or a source of which 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 of trichloroftuoromethane (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 under 40 C.F.R. Part 82 with decay products, after the photolysis of the 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 of the PAL permit; or 

17 (b) For an increased PAL, the date any emissions unit that is part of the PAL major 

18 modification becomes operational and begins to emit the PAL pollutant. 

19 (174) "PAL effective period" means the period beginning with the PAL effective date 

20 and ending ten (1 0) years later. 

21 (175) "PAL major modification" means any physical change in or a change in the 

22 method of operation of the PAL source that causes it to emit the PAL pollutant at a level 

23 equal to or greater than the PAL. 

35 
1 (176) "PAL permit" means the permit issued by the cabinet that establishes a PAL 

2 for a major stationary 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 water that exists in 

6 a finely divided form as a liquid or solid measured by a U.S. EPA-approved test method 

7 or a test 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 a test method specified in the 

12 Kentucky SIP. 

13 (180) "Peak load" means the maximum instantaneous operating load. 

14 (181) "Permitted capacity factor'' means the annual permitted fuel use divided by the 

15 manufacturer's specified maximum fuel consumption multiplied by 8, 760 hours per year. 

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 accordance with 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 accordance with 40 C.F.R. Part 53, or by 

5 an equivalent method designated in accordance with 40 C.F.R. Part 53. 

6 (186) "PM10 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 a test method specified in the 

1 0 Kentucky SIP. 

11 (187) "Pollution prevention" is defined by 40 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 a system, 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 or on the type or amount of material combusted, stored, or processed, is treated as part 

23 of its design if the 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 Air Act, 42 U.S.C. 7401 - 7671q, or the term "capacity factor" as used in the 

3 Acid Rain Program. 

4 (b) For the PSD and NSR programs, the maximum capacity of a stationary 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 if the limitation or the effect it would 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 by weight). 

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 prior to the final fusion in a kiln that forms 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 or 52.21. 

6 (198) "Project" means a physical change in or change in method of operation of an 

7 existing major stationary 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 after the 

12 project, or in any one (1) of the ten (1 0) years following that date, if: 

13 1. The project involves increasing the emissions unit's design capacity or its 

14 potential to emit the regulated NSR pollutant; and 

15 2. Full utilization of the unit would result in a significant emissions increase or a 

16 significant net emissions increase at the major stationary 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 unit1s potential to emit, in tons per year, instead of 

9 using subparagraph 1. of this paragraph to determine projected actual emissions. 

1 0 (200) "psia" means pounds per square inch absolute. 

11 (201) "psig" means pounds per square inch gage. 

12 (202) "RACT/BACT/LAER Clearinghouse" or "RBLC" means the U.S. EPA's online 

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

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

19 affected facility to the extent that: 

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

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

22 facility; and 

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

40 
1 requirements of 401 KAR Chapters 50 to 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" means the 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 ambient temperatures [for suoh pollulanls ieenliliee by lhe U.S. EPA] ; 

23 (b) A pollutant subject to any standard promulgated under 42 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 of this 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 unit that 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 of an 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 of the process unit 

16 (b) Replaces a unit that: 

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 by 40 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 of that person if the representative is responsible for the overall operation 

4 of one (1) or more manufacturing, production, or operating facilities applying for or 

5 subject to 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 of the 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 of time, either intermittent or continuous within the 

19 limits of good 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 of the 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 impact the 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 of the 

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, a train, 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 air quality 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 of an operation. 

17 (218) "Significant" means: 

18 (a) For 401 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 1 00 tons per year 

(tpy) 

Ozone depleting 100 tpy 

substance 

Nitrogen oxides 40 tpy 

Sulfur dioxide 40 tpy 

~ 

PM2s 10 tpy direct, 40 

tpy of sulfur 

dioxide or 

nitrogen oxides 

for grecursors* 

.EMJg 15 tpy 

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 3 tpy 

45 
Sulfuric acid mist 7 tpy 

Hydrogen sulfide (H2S) 10 tpy 

Total reduced sulfur 10 tpy 

(including H2S) 

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-pdioxins 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 

non methane organic 

compounds) . 

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

2 precursor pursuant to subsection (207)(a)(3) of this 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 pollutant that is not listed in the table in paragraph (a) 

5 of this subsection, any emissions 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 (1 0) kilometers of a Class I area, an impact on that area equal to 

9 or greater than one (1) ~g/m3 over a twenty-four (24) hour average; 

10 (d) For 401 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 that would equal or exceed a corresponding rate listed in the table: 

POLLUTANT EMISSIONS RATE 

Carbon monoxide 100 tons per year 

(tpy) 

Ozone depleting 100 tpy I 

substance 

Nitrogen oxides 40 tpy 

47 
Sulfur dioxide 40 tpy 

~ 

PM25 1 0 tpy direct, 40 tpy of 

sulfur dioxide or 

nitrogen oxides for 

!;!fSCUfSQrS* 

~ 15 tpy 

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 pursuant to subsection (207)(a)(3} of this 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 reference to an emissions increase or net 

5 emissions increase, a rate of emissions that exceeds the following: 

6 1. Twenty-five (25) tons per year of volatile organic compounds or nitrogen oxides in 

7 a serious or severe 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 a stationary source contribute significantly to carbon 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 significant for that 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) of this 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 qualify the unit as a major emissions 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, or other right of way. 

18 (224) "sq" means square. 

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

20 emissions to 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 comply with 401 KAR Chapter 51. 

49 
1 (227) "Standard conditions" means: 

2 (a) For source measurements, twenty (20) degrees Celsius (sixty-eight (68) degrees 

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

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

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

8 or revision required by 42 U.S.C. 7410 that has been approved by the U.S. EPA. 

9 (230) "Stationary source" means a building, structure, facility, or installation that 

1 0 emits or has the potential to emit a regulated NSR pollutant. 

11 (231) "Subject to regulation" is defined by 40 C.F.R. 51.166(b)(48). 

12 (232) "Submit" means to send or transmit a document, informa'tion, or 

13 correspondence in accordance with an applicable requirement. 

14 (233) "TAPPI" means Technical Association of the 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 a control period is calculated as the sum of all recorded hourly emissions, or the 

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" means tons per year. 

4 (238) "TSS" means total suspended solids. 

5 (239) "Uncombined water" means water that 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 greater than 200,000 based upon the 1980 census. If a portion of a county 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 by 40 C.F.R. 51.301. 

19 (246) "Volatile organic compound" or "VOC" is defined by 40 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 Management and Budget; and 

2 (b) "Standard Industrial Classification Manual", 1987, as published by the Office of 

3 Management and 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 of the Kentucky Division for Air 

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

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 Environment Cabinet 

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 first floor of the Division for Air Quality at 200 Fair Oaks 

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

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

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

canceled. 

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

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

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

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

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 IMPACT ANALYSIS 

AND TIERING STATEMENT 

Administrative Regulation#: 401 KAR 51:001 

Contact person: Laura Lund, Environmental Technologist Ill 

(1) Provide a brief summary of: 

(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 

authorizing statutes: KRS 224.1 0-1 00(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 of federal 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 of the statutes: 

This administrative regulation assists the public and the regulated 

community by providing clear and consistent definitions for terms used in 

401 KAR Chapter 51. 

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

brief summary of: 

(a) How the amendment will change this existing administrative 

regulation: This amendment 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 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 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 of terms used in 401 KAR 

56 
Chapter 51 to prevent and control air pollution that are consistent with 

those at the federal level. 

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

and local governments affected by this administrative regulation: 

Individuals, businesses, organizations, or governments will be affected by this 

regulation if they are subject to any of the requirements contained in this chapter. 

(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 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 use the terms as defined 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 

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 air quality throughout the Commonwealth. 

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

implement this administrative regulation: 

(a) Initially: The Cabinet will not incur any additional costs for the 

implementation of this 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 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 

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 

57 
not establish, nor directly or indirectly increase, any leas. 

(9) TIERING: Is tiering applied? Yes. This administrative regulation contains 

thresholds over which facilities may be subject to 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 of a NAAQS. 

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

224.10-1 00(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 air quality. 

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

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

mandate? No. 

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

different responsibilities or requirements. The definitions contained in this 

administrative regulation are not more stringent than the corresponding federal 

definitions. 

59 
FISCAL NOTE ON STATE OR LOCAL GOVERNMENT 

Administrative Regulation#: 401 KAR 51:001 

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, or school districts)? Yes. 

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

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

administrative regulation? State and local governments will be required to use 

definitions contained in this administrative regulation if subject to the requirements of 

401 KAR Chapter 51. 

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

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

regulation is to be in effect. 

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

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

districts) for the first year? This administrative regulation 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 cost to administer this program for the first year? The 

Cabinet's existing operating budget is the source of funding for the implementatioh 

of this program. 

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

will be no additional costs for administering this program in subsequent years. 

Note: If specific dollar estimates 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. 

Other Explanation: There is no further explanation. 

60 
1 ENERGY AND ENVIRONMENT CABINET 

2 Department for Environmental Protection 

3 Division for Air Quality 

4 (Amendment) 

JUN I 4 2012 

REGULATIONS 

~L~ COMPILER 

5 401 KAR 51:017. Prevention of significant deterioration of air 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, 53,58 Appendix A, 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 of air 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 major stationary 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 under 42 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 8 to 16 of this administrative regulation shall apply to the construction of a new 

3 major stationary source or a major modification of an existing major stationary source. 

4 (3) The owner or operator of a new major stationary source or major modification, 

5 which is subject to the requirements of Sections 8 to 16 of this administrative regulation, 

6 shall not begin actual construction without a proposed permit or proposeid permit 

7 revision issued under 401 KAR 52:020 stating that the major stationary source or major 

8 modification shall meet those 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 if the 

11 project causes a significant emissions increase and a significant net emissions increase 

12 as provided in paragraphs (a) and (b) of this subsection. 

13 (a) Prior to 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 1 to 3 of this 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 amount for that 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 of emissions units. A significant 

4 emissions increase of a regulated NSR pollutant shall be projected to occur if the sum 

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

6 subparagraphs 1 and 2 of this paragraph as applicable for each emissions unit, equals 

7 or exceeds the significant amount for that 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 of Section 20 of this 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 the following 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 per year at any one (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 lower for the pollutant for a period of exposure. 

7 Section 4. Restrictions on Area Classifications. (1) The following areas, which were 

8 in existence on August 7, 1977, shall be Class I areas 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 I federal area. 

7 (4) The following areas may be redesignated only as Class I or 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 a federal statute or regulation over the emissions from the~e 

21 sources before the effective date of the 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 a federal statute over the emissions from those sources before the effective 

2 date of the 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) of this 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) If both an order and curtailment plan are applicable, an exclusion shall not apply 

15 more than five (5) years after the later of the two (2) effective dates. 

16 (3) For excluding concentrations pursuant to subsection (1)(d) of this 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 longer time is approved by the U.S. EPA; 

20 (b) The time period for excluding certain contributions in accordance with paragraph 

21 (a) of this subsection shall not be renewable; 

22 (c) An emissions increase from a stationary source shall not occur that will: 

7 
1 1. Impact a Class I area or an area in which an applicable increment is known to be 

2 violated; or 

3 2. Cause or contribute to the violation of a 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 of emissions limitation required for control 

9 of an air pollutant under this administrative regulation shall not be affected by: 

1 0 (a) So much of the stack height of a source as exceeds good engineering practice; 

11 or 

12 (b) Another dispersion technique. 

13 (2) Subsection (1) of this section shall not apply to stack heights in existence before 

14 December 31, 1970, or to dispersion techniques implemented before then. 

15 Section 7. Exemptions. (1) Sections 8 to16 of this administrative regulation shall not 

16 apply to a particular major stationary source or major modification, if: 

17 (a) The owner or operator: 

18 1. Obtained the necessary federal, state, and local preconstruction approval 

19 effective before September 22, 1982; 

20 2. Commenced construction before September 22, 1982; and 

21 3. Did not discontinue construction for a period of eighteen (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 of the Commonwealth of Kentucky requests that it be exempt from 

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 of the stationary source or modification and the source does not belong 

6 to any of the following categories: 

7 1. Coal cleaning plants with thermal dryers; 

8 2. Kraft pulp mills; 

9 3. Portland cement plants; 

1 0 4. Primary zinc smelters; 

11 5. Iron and steel mills; 

12 6. Primary aluminum ore reduction plants; 

13 7. Primary copper smelters; 

14 8. Municipal incinerators capable of charging more than 250 tons 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 or 312140; 

6 21. Fossil-fuel boilers, or combination of fossil-fuel boilers, totaling more than 250 

7 million BTUs per hour heat 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. Glass fiber 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. Another stationary source category that, as of August 7, 1980, is being regulated 

16 under 42 U.S.C. 7411 or 7412. 

17 (d) The source or modification is a portable stationary source that has previously 

18 received a permit under this administrative regulation; and 

1 9 1. The owner or operator proposes to relocate the source, and the emissions of the 

20 source at the 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 of operation at the new location. 

3 b. Notice shall be given to the cabinet not less than ten (10) days in advance of the 

4 proposed relocation unless a different time duration is previously approved by the 

5 cabinet pursuant to this subsection. 

6 (e) The source or modification was not subject to this administrative regulation with 

7 respect to particulate 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 under the applicable SIP before July 31, 1987; 

11 2. Commenced construction within eighteen (18) months after July 31, 1987; and 

12 3. Did not discontinue construction for a period of eighteen (18) months or more and 

13 completed construction within a reasonable period of time. 

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 complete with respect to 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 if the owner or operator 

22 demonstrates that, for that pollutant, the source or modification is located in an area 

23 designated as nonattainment pursuant to 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 pollutant from a modification: 

5 (a) Will not impact a Class I area or an area where 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 BACT will be less than fifty (50) tons per year. 

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 of the pollutant from the modification will cause air quality impacts in 

18 an area, which are less than the amounts listed in the following 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 

ambient air quality data. 

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 of the pollutant 1n the area that the source or modification will 

2 affect are less than the concentrations listed in the table in paragraph (a) of this 

3 subsection, or the pollutant is not listed in the table. 

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 of the 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 increase for PM10, if: 

6 (a) The owner or operator of the source or modification submitted an application for 

7 a permit under the applicable permit program before the provisions embodying the 

8 maximum allowable increases for PM10 took effect as part of Kentucky1S SIP; and 

9 (b) The cabinet subsequently determined that the application as submitted before 

10 that date was complete. 

11 (8)(a) The cabinet may determine that the requirements for air quality monitoring of 

12 PM1o in Section 11 of this administrative regulation shall not apply to a particular source 

13 or modification, if: 

14 1. The owner or operator of the source or modification submitted an application for a 

15 permit under this 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 of this administrative regulation. 

19 (b) The requirements for air quality monitoring of PM,, in Section 11 of this 

20 administrative regulation shall apply to a particular source or modification if the owner or 

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 of this administrative regulation requires shall 

7 have been gathered over that shorter period. 

8 (9) If the owner or operator of the 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) of this 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 pollutant for which 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 of the 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 Ot construction of each independent phase of the 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 ambient air quality standard in an air quality control 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 if the emissions increase from the new stationary 

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 the following table. 

Pollutant Averaging Time Class I area 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 air quality models, databases, and other requirements specified 

5 in 40 C.F.R. Part 51, Appendix W, "Guideline on Air Quality Models" Appendix A. 

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 of a modified or substitute model shall be: 

9 1. Subject to notice and opportunity for public comment under 401 KAR 52:1 00; and 

10 2. Approved in writing by the U.S. EPA pursuant to 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 of air quality models. 

14 Section 11. Air Quality Analysis. (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 major stationary source or major modification will affect for each of the following: 

18 1. For a source, each pollutant that the source will have the potential to emit in a 

19 significant amount; 

18 
1 2. For a modification, each pollutant that the modification will result in a significant 

2 net emissions 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 pollutant will 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 or a 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 of the 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 less than four (4) months. 

17 (e) For analysis of volatile organic compounds, the owner or operator of a 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 PM10 under Section 7(8)(a) and (b) of this 

22 administrative regulation, the owner or operator of the 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 PM10 using the data collected by that 

2 approved monitoring method in accordance with estimating procedures approved by the 

3 cabinet pursuant to 40 C.F.R. Part 58, Appendix A. 

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 submit to the cabinet all information necessary to perform an analysis 

14 or make a determination required under this 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 schedule for construction of the 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 BACT will be applied. 

20 
1 (2) Upon request of the cabinet, the owner or operator shall also provide information 

2 on: 

3 (a) The air quality impact of the source or modification, including meteorological and 

4 topographical data necessary to estimate the 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 of the impairment to 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 other growth associated with the 

12 source or modification. 

13 (2) The owner or operator shall not be required to provide an analysis of the 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 for the area as a result of general commercial, residential, industrial, and other 

17 growth associated with the source or modification. 

18 (4) Visibility monitoring. 

19 (a) If the 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 pursuant to 40 C.F.R. 51.166. 

7 (c) Visibility monitoring required by the cabinet in a Class I area shall be approved 

8 by the federal land manager. 

9 (d) Data obtained from visibility monitoring shall be made available to the cabinet, 

10 the U.S. EPA, and the federal land manager, upon request. 

11 Section 14. Sources Impacting Class I Areas; 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 major stationary source or major modification that may 

16 affect the Class I area. 

17 (b) Notice promptly after receiving the penmit application. The notice shall: 

18 1. Include a copy of all information relevant to the permit application; 

19 2. Be given within thirty (30) days of receipt and at least sixty (60) days prior to the 

20 public hearing on the application for a permit to construct; and 

21 3. Include an analysis of the proposed source's anticipated impacts on visibility in 

22 the Class I area. 

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 of an advanced notification of the permit application. 

6 (2) Federal land manager. The federal land manager and the federal official charged 

7 with direct responsibility for management of lands located in a Class I area shall have 

8 an affirmative responsibility to protect visibility and other air quality related values of the 

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) of this section, which shows that a proposed new major stationary source 

15 or major modification may have an adverse impact on visibility in a Class I area. 

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 I area, 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; impact on air quality 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 of those lands, even 

23 
1 though the change in air quality resulting from emissions from the proposed source or 

2 modification will not cause or contribute to concentrations that will exceed the maximum 

3 allowable increases for a Class I area. 

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 I variances. 

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) of this administrative regulation] if: 

19 1. The federal land manager concurs with the demonstration specified in paragraph 

20 (a) of this subsection and certifies accordingly; and 

I 

21 2. The other applicable requirements of this administrative regulation are met. ' 

22 (6) Sulfur dioxide variance by governor with 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 of the Commonwealth of Kentucky that a variance will not 

6 adversely affect the visibility or other air quality related values of the 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 

1 0 increase. 

11 (c) If a variance 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 of this administrative regulation are met. 

14 (7) Variance by the governor with 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 of the governor 

17 and the federal land manager shall be transmitted to the President of the United States 

18 of America. 

19 (b) If the variance is approved by the President, the cabinet shall issue a permit or 

20 permit revision in accordance with the requirements of 401 KAR Chapter 52, if the other 

21 applicable requirements of this 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 comply with the emissions limitations necessary to 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 per cubic 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 under this administrative regulation. 

15 Section 16. Source Obligation. (1) An owner or operator of a 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 under the terms of an approval to construct. 

4 (2)(a) Approval to construct shall become invalid if construction: 

5 1. Is not commenced within eighteen (18) months after receipt of the approval; 

6 2. Is discontinued for a period of eighteen (18) months or more; 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 of a phased 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 or federal law. 

17 (4) If a particular source or modification becomes a major stationary source or major 

18' modification solely by virtue of a relaxation in an enforceable limitation that was 

19 established after August 7, 1980, on the capacity of the 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 of this subsection shall apply to projects at existing emissions 

2 units at a major stationary source other than projects_at a source with 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 a significant emissions 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 of the project; 

11 2. Identification of the emissions units for which emissions of a regulated NSR 

12 pollutant could be affected by the 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 for why that amount was excluded; and 

19 d. Any applicable netting calculations. 

20 (c) For a project specified in paragraph (a) of this 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 of this subsection; and 

4 2. Calculate and maintain a record of the annual emissions, in tons per year on a 

5 calendar year basis for: 

6 a. Five (5) years following resumption of regular operations after the change; or 

7 b. Ten (10) years following resumption of regular operations after the change if the 

8 project increases the design capacity or potential to emit of the regulated NSR pollutant 

9 at the emissions unit. 

10 (d) lithe emissions unit is an existing EUSGU, before beginning actual construction, 

11 the owner or operator: 

12 1. Shall provide a copy of the information in paragraph (b) of this 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 of the report. 

19 (e)1. For an existing unit other than an EUSGU, the owner or operator shall submit a 

20 report to 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 pursuant to paragraph (b)3 of this 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 the following: 

8 a. The name, address, and telephone number of the major stationary source; 

9 b. The annual emissions as calculated pursuant to paragraph (c) of this subsection; 

10 and 

11 c. Any other information that the owner or operator wishes to include in the report. 

12 (f) The owner or operator of the source shall make the information required to be 

13 documented and maintained under to this subsection available for review upon request 

14 for inspection by the cabinet or the general public pursuant to 401 KAR 52:1 00. 

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 a system 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 contribute to an unreasonable risk 

8 to public health, welfare, or safety in its operation or function; 

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) of this 

11 administrative regulation by a date, specified by the cabinet that is not later than four (4) 

12 years from the time of start-up or seven (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 meet on the date specified by the cabinet; 

17 (d) The source or modification shall not before the date specified by the 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 of the 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, or safety; or 

9 (c) The cabinet decides that the proposed system is unlikely to achieve the required 

1 0 level of control or to protect the public health, welfare, or safety. 

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 BACT through use of a demonstrated system of control. 

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 or 51 :016E may request that the 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 request that the cabinet rescind the penmit or a particular portion of the permit. 

32 
1 (2) The cabinet shall rescind a permit condition if requested and if the applicant can 

2 demonstrate to the satisfaction of the cabinet that this administrative regulation does not 

3 apply to the source or modification or to a portion of the 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 of this section. 

7 (1) General provisions. 

8 (a) An owner or operator may execute a project without triggering major NSR, if the 

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. If these conditions are 

11 met, a project: 

12 1. Shall not be considered a major modification for the PAL pollutant; 

13 2. Shall not have to 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 of the 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 prior to the effective date of the 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 owner or operator proposes to use to convert the 

9 monitoring system data to monthly emissions and annual emissions based on a twelve 

10 (12) month rolling total for each month as required by subsection (12)(a) of this section. 

11 (3) Establishing a PAL. The cabinet shall establish a PAL at a major stationary 

12 source in a federally enforceable permit pursuant to the requirements of this section. 

13 (a) The PAL shall impose an annual emissions limitation in tons per year that is 

14 enforceable as a practical matter for the entire major stationary source. 

15 1. For each month during the PAL effective period after the first twelve (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 under the PAL for the 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 permit that: 

2 1. Meets the public participation requirements in subsection (4) of this section; and 

3 2. Contains all the requirements of subsection (6) of this 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 of only one (1) pollutant. 

8 (e) Each PAL shall have a PAL effective period often (10) years. 

9 (f) The owner or operator of a major stationary source with a PAL shall comply with 

10 the monitoring, recordkeeping, and reporting requirements of subsections (11) to (13) of 

11 this section for each emissions unit under the PAL through 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 of the PAL is reduced by the amount of the emissions reductions; and 

16 2. The reductions will be creditable in the absence of the 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 of 401 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 a thirty (30) day period for submittal of public 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 twentya 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 emit of the 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 requirement that the cabinet is aware of prior to issuance of the 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 per year; 

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) of this section before the end of 

5 the PAL effective period, the PAL shall remain in effect until a revised PAL permit is 

6 issued by the 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 subject to the requirements of subsection (8) of this 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) of this 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) of this section; 

17 (h) A requirement that the owner or operator shall retain the records required under 

18 subsection (12) of this section on site. Records may be retained in an electronic fonmat; 

19 (i) A requirement for the owner or operator to submit the reports required under 

20 subsection (13) ofthis section by the required deadlines; and 

21 0) Any requirements necessary to implement and enforce the 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 permit to: 

2 1. Correct typographical or calculation errors made in setting the PAL; 

3 2. Reflect a more accurate determination of emissions 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 after the PAL effective date; 

11 2. Reduce the PAL consistent with any requirement enforceable as a practical 

12 matter and imposed on the major stationary source under the 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 Ambient Air Quality Standard (NMOS) or PSD increment violation; or 

16 b. An adverse impact on visibility or another air quality related value that has been 

17 identified for a federal Class I area by a federal land manager and for which 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 of errors that do not increase the PAL level. 

22 (8) Expiration of a PAL. A PAL that is not renewed shall expire at the end of the PAL 

23 effective period, and the requirements of this 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 of the emissions units that existed under the 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. If the 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 approve the use of monitoring systems 

22 other than CEMS, CERMS, PEMS, or CPMS if the alternate monitoring system 

23 demonstrates compliance with the allowable emissions limitation. 

39 
1 (c) The source shall continue to comply with 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 operator shall continue to 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 pursuant to Section 16(4) of this administrative regulation. 

11 (9) Renewal of a 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 a written rationale for the 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 earlier than eighteen (18) months before permit expiration. 

40 
1 2. The deadline for application submittal shall ensure that the permit shall not expire 

2 before the permit is renewed. 

3 3. If a complete application for renewal is submitted within the timeframe specified in 

4 subparagraph 1 of this paragraph, the PAL shall continue to be effective until the 

5 revised permit with 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) of this 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 renew the PAL. 

13 (d) PAL adjustment. 

14 1. A PAL shall not exceed the source's potential to emit. The cabinet shall adjust the 

15 PAL downward if a source's potential to emit has declined below the 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 greater than eighty (80) percent of the current 

19 PAL level, unless the sum is greater than 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 of the source's baseline actual emissions; or 

2 b. Appropriate considering the following factors: 

3 (i) Air quality needs; 

4 (ii) Advances in control technology; 

5 (iii) Anticipated economic growth in the area of the source; 

6 (iv) The cabinet's goal of promoting 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 of this 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 or federal applicable requirement that applies to 

16 the PAL source occurs during the PAL effective period; and 

17 2. The cabinet has not already adjusted for the 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 of this 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, exceeds the PAL; and 

5 a. The level of control 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 for that emissions unit shall be equal to the current level of BACT or LAER for that 

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 emit the PAL pollutant. 

15 (b) NSR permit and compliance requirement. The owner or operator shall obtain a 

16 major NSR permit for all emissions units contributing to the increase in emissions for the 

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 subject to the PAL or shall continue to be subject to 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 of the 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 of the 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 for an 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 of the PAL pollutant 

12 in terms of mass per unit of time; 

13 2. A monitoring system authorized for use in the PAL permit shall be: 

14 a. Approved by the cabinet pursuant to 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 a judicial proceeding to enforce the 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 of subparagraphs 1 to 3 of this paragraph; and 

44 
1 6. Failure to use a monitoring system that meets the requirements of this section 

2 shall render the 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) of this 

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 or created by all materials used in or at the emissions unit; 

15 2. If the PAL pollutant cannot be accounted for in the process, assume that the 

16 emissions unit emits all of the PAL pollutant contained in or created by any raw material 

17 or fuel used in or at the emissions unit; and 

18 3. lithe vendor of the material or fuel from which the pollutant originates publishes a 

19 range, use the highest value of the published range of pollutant content to calculate the 

20 PAL pollutant emissions, unless the cabinet determines there is site-specific data or a 

21 site-specific monitoring program to support another pollutant content within the range. 

22 (d) GEMS. An owner or operator using GEMS to monitor PAL pollutant emissions 

23 shall meet the following requirements: 

45 
1 1. GEMS shall comply with applicable performance specifications found 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 pollutant emissions shall" meet the 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 of the 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 by the cabinet. 

13 (f) Emission factors. An owner or operator using emission factors to monitor PAL 

14 pollutant emissions shall meet the following requirements: 

15 1. All emission factors shall be adjusted, if appropriate, to account for the 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 emission factor, if applicable; 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 a site-specific emission factor within six (6) months of PAL permit issuance if the cabinet 

22 determines that the testing is required and technically practicable. 

46 
1 (g) A source owner or operator shall 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 pollutant emissions rate at all operating 

7 points of the emissions unit, as an alternative to the requirements of paragraphs (c) to 

8 (g) of this subsection, in conjunction with permit issuance the cabinet shall: 

9 1. Establish defau~ values for determining compliance with the PAL based on the 

1 0 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 of the 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 occur at least once every five (5) years after issuance of 

17 the PAL 

18 (12) Recordkeeping requirements. 

19 (a) The PAL permit shall require an owner or operator to retain a copy of all records 

20 necessary to determine compliance with any requirement of this section and of the PAL, 

21 including a determination of each emissions unit's twelve (12) month rolling total 

22 emissions for five (5) years from the date of the determination. 

47 
1 (b) The PAL permit shall require an owner or operator to retain a copy of the 

2 following records for the duration of the 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 of the end of each reporting period and shall contain: 

13 1. The identification of owner and operator and the permit number; 

14 2. Total annual emissions, in tpy, based on a twelve (12) month rolling total for each 

15 month in the reporting period recorded pursuant to subsection (12)(a) of this section; 

16 3. All data used in calculating the monthly and annual PAL pollutant emissions, 

17 including any quality assurance or quality control 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 a deviation; 

48 
1 6. A notification of permanent or temporary shutdown of any monitoring system 

2 including: 

3 a. The reason for the 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 operate without the monitoring system; and 

8 d. The calculation of the emissions of the pollutant or the number determined 

9 according to subsection (11)(g) of this 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 the following information: 

21 a. The identification of the owner, the operator, and the permit number; 

22 b. The PAL requirement that experienced the deviation or that was exceeded; 

23 c. Emissions resulting from the deviation or the 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 of any revalidation test or method within three (3) months after completion of the 

6 test or method. 

7 (14) Transition requirements. 

8 (a) After the 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 of this section. 

11 (b) The cabinet may supersede a PAL that was established before August 10, 2006, 

12 with a different PAL if the new PAL complies with the requirements of this administrative 

13 regulation. 

50 
Leonard K. Peters, Secretary 

Energy and Environment Cabinet 

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 first floor of the Division for Air Quality at 200 Fair Oaks 

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

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

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

canceled. 

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

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

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

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

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 IMPACT ANALYSIS 

AND TIERING STATEMENT 

Administrative Regulation#: 401 KAR 51:017 

Contact person: Laura Lund, Environmental Technologist Ill 

(1) Provide a brief summary 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 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 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) If this is an amendment to an existing administrative regulation, provide a 

brief summary of: 

(a) How the amendment will change this existing administrative 

regulation: This amendment 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 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 air quality impact levels for PMz.s. 

(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 of the 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) 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 by this administrative 

regulation. 

(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: 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 

that the project emissions do not cause or contribute to a violation of the 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 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 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 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 air quality throughout the Commonwealth. 

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

implement this administrative regulation: 

(a) Initially: The Cabinet will not incur any additional costs for the 

implementation of this 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 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 

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, 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 in 

an area designated attainment or unclassifiable. 

55 
FEDERAL MANDATE ANALYSIS COMPARISON 

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

federal 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 for the implementation, maintenance, and enforcement of a 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 

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 into the 

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, codified 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. 

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, or school districts)? Yes. 

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

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

administrative regulation? 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 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), (26); 40 CFR 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 year the administrative 

regulation is to be in effect. 

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

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

districts) for the first year? This administrative regulation 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 cost to administer this program for the first year? The 

Cabinet's existing operating budget is the source of funding for the implementation 

of this program. 

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

will be no additional costs for administering this program in subsequent years. 

Note: If specific· dollar estimates 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. 

Other Explanation: There is no further explanation. 

57 
1 ENERGY AND ENVIRONMENT CABINET 

2 Department for Environmental Protection 

3 Division for Air Quality 

4 (Amendment) 

JUN 1 4 2012 

D-.......l'~ 

REGULATIONS COMPILER 

5 401 KAR 51:052. Review of new sources in or impacting upon nonattainment areas. 

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 STATUTORY AUTHORITY: 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 ambient air quality 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 of this 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 I federal 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) of this subsection. 

8 (a} Prior to 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 1 to 3 of this 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 if the 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 amount for that 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 of emissions 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 of this paragraph as applicable for each emissions unit, equals 

2 or exceeds the significant amount for that pollutant. 

3 (b) Prior to 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 of Section 11 of this administrative regulation. 

1 0 Section 2. Initial Screening Analyses and Determination of Applicable 

11 Requirements. (1) Review of all 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) If the 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 of specified sources of air 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 a designated 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 if the new source will not cause a new violation. 

4 (3) Fugitive emissions sources. Sections 4 and 10 of this administrative regulation 

5 shall not apply to a source or modification that will be a major stationary source or major 

6 modification only if fugitive emissions, to the extent quantifiable, are considered in 

7 calculating the potential to emit of the stationary source or modification and the source 

8 does not belong to one (1) of the following 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 copper smelters; 

16 (h) Municipal incinerators capable of charging more than 250 tons of refuse per day; 

17 (i) Hydrofluoric, sulfuric, or nitric acid 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 under 42 U.S.C. 7411 or 7412. 

19 Section 3. Sources Locating in Designated Attainment or Unclassifiable Areas that 

20 Will Cause or Contribute to a Violation 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), if the 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 or will not meet the national ambient air quality standards. 

Pollutant Annual Averaging Time 

Average 24- 8- 3- 1-

Hour Hour Hour Hour 

Sulfur 1.0 5 -- 25 --

Dioxide ~g/m 3 ~g/m3 

~g 

/m3 

PM25 0.3 .11 -- -- --

- - -

ug/m3 ug/m3 

PM10 1.0 5 - -- --

~g/m3 ~g/m3 

Nitrogen 1.0 -- - - --

Dioxide ~g/m3 

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) of this administrative regulation and may be exempt from Section 4(3) 

5 of this 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 account for the expected oxidation rate. 

9 (5) For ozone, sources of VOCs or NOx locating outside a designated ozone 

1 0 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 pursuant to 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 of which will cause a new violation of a 

20 national ambient air quality standard but will not contribute to an existing violation, may 

21 be approved only if the following conditions are met: 

22 (a) The new source shall: 

23 1. Meet an emissions limitation; 

7 
1 2. Meet a design, 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 air quality standard. 

4 (b) The new emissions limitations for the 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 if the conditions of this 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 a compliance 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 or offset at a ratio of at least 1:1, so that there will 

2 be reasonable further progress toward attainment of the 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 of the 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 nonattainment areas, at least 1.15 to 1; 

10 3. For serious nonattainment areas, at least 1.2 to 1; 

11 4. For severe nonattainment areas, at least 1.3 to 1; and 

12 5. For extreme nonattainment areas, at least 1.5 to 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) of this section and Section 5(3)(e) of this administrative regulation 

18 shall be adequate to meet this 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 of the source from which offset credit is attained if: 

9 1. The demonstration of reasonable further progress and attainment of ambient air 

10 quality standards for the Sl P was 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. Credit for 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 applicable federal regulations. 

16 (3) General provisions for calculating offset values. 

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 hours for the 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 for the previous two (2) year period in conjunction with the required hardware controls. 

3 (d) If the 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 only for control below the uncontrolled emissions rate. 

6 (e) The owner or 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 of an air pollutant by obtaining emissions reductions of the air pollutant frOm: 

9 1. The same source or other sources in the same nonattainmen.t area; 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 which the source is located; and 

13 b. Emissions from the other area contribute to a violation of the 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 under actual operating conditions for the 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) If the existing source has switched to a different type of fuel 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 if the source 

8 switches back to a dirtier fuel at some later date. 

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 or curtailment. 

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 demonstration explicitly includes the emissions from the previously shutdown 

2 or curtailed emission unit, pursuant to 40 C.F.R. 51. 165(a)(3)(ii)(C)(1 )(ii). 

3 (ii) Credit shall not be given for a shutdown that occurred before August 7, 1977; 

4 2. That do not meet the requirements of subparagraph 1 .b. of this paragraph may be 

5 generally credited pursuant to 40 C.F.R. 51. 165(a)(3)(ii)(C)(2) if: 

6 a. The shutdown or curtailment occurred on or after the 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, or trichlorofiuoroethane. 

16 (8) Banking of emissions offset credit 

17 (a) New sources obtaining permits by applying offsets after the effective date of this 

18 administrative regulation may bank offsets that exceed the requirements of Section 5(3) 

19 of this 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 credit for 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 by the start-up date of the 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 necessary emissions offsets may be proposed by the owner of the proposed 

20 source or by the cabinet. 

21 (2) Source initiated emissions offsets. 

22 (a) The owner or operator of a source 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 of the 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 by the 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 by this 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 if construction: 

23 1. Is not commenced within eighteen (18) months after receipt of the approval; 

15 
1 2. Is discontinued for a period of eighteen (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, or federal 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 of this subsection shall apply to projects at existing emissions 

19 units at a major stationary source other than projects at a source with 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 a significant·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 of the projeci; 

5 2. Identification of the emissions units for which emissions of a regulated NSR 

6 pollutant may be affected by the 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; 

1 0 b. Projected actual emissions; 

11 c. Amount of emissions excluded in calculating projected actual emissions and an 

12 explanation for why that amount was excluded; and 

13 d. Any applicable netting calculations. 

14 (c) For a project specified in paragraph (a) of this 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 of this subsection; and 

19 2. Calculate and maintain a record of the annual emissions, in tons per year on a 

20 calendar year basis, for: 

21 a. Five (5) years following resumption of regular operations after the change; or 

22 b. Ten (10) years if the project increases the design capacity of or potential to emit 

23 for that regulated NSR pollutant at the emissions unit. 

17 

I 

I 
1 (d) If the unit is an existing EUSGU, before beginning actual construction, the owner 

2 or operator: 

3 1. Shall provide a copy of the information in paragraph (b) of this subsection to the 

4 cabinet; and 

5 2. Shall not be required to obtain a determination 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 calendar year preceding 

1 0 report submittal. 

11 (e)1. For an existing unit other than 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 pursuant to paragraph (b)3 of this 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) of this 

21 subsection and shall contain the following: 

22 a. The name, address, and telephone number of the major stationary source; 

23 b. The annual emissions as calculated pursuant to paragraph (c) of this subsection; 

18 
1 and 

2 c. Any other information that the owner or operator wishes 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 under this subsection available for review upon request for 

5 inspection by the cabinet or the general public pursuant to 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 that the cabinet rescind the applicable conditions. 

9 (2) The cabinet shall rescind a permit condition if the owner or operator: 

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 7 of this administrative regulation. 

16 Section 9. Class I Areas. (1) The following areas, which were in existence on 

17 August 7, 1977, shall be Class I areas and shall not be 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 of this administrative regulation shall apply 

2 only to sources that may impact a mandatory Class I federal area. 

3 (4) The following areas may be redesignated only as Class I or II: 

4 (a) An area which as of August 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 10,000 acres 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 meet the requirements of this section. 

15 (b) This section shall apply to construction of a 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 impact on visibility in a Class I area. 

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) of this 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 exempt from the requirements of this section; and 

3 2. The source is a portable stationary source that has previously received a permit 

4 under this 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 I area 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 (1 0) days in advance of the 

11 proposed relocation unless a different time duration is previously approved by the 

12 cabinet pursuant to this section. 

13 (e) This section shall not apply to a major stationary source or major modification 

14 with respect to a particular pollutant, if the allowable emissions of that pollutant from the 

15 source, or the net emissions increase of that pollutant from the modification: 

16 1. Will not impact a Class I area; 

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 of the 

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 responsibility for management of Class I areas shall have an affirmative responsibility to 

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 impact on 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 I area of a permit application or an advanced notice of a permit 

1 0 application for a proposed new major stationary source or major modification that may 

11 affect visibility in a Class I area. The notification shall: 

12 1. Include a copy of all 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 prior to a public hearing on the application for a penmit to construct; and 

16 3. Include an analysis of the proposed source's anticipated impacts on visibility in a 

17 Class I area. 

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 I area. 

22 2. If the cabinet finds that the analysis does not demonstrate, to the satisfaction of 

23 the cabinet, that an adverse impact on visibility will result in the Class I area, 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) of this 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 of visitor use of the Class I area, 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 of 401 KAR 52:100 do not apply. 

12 (5) National visibillly goal. 

13 (a) The cabinet shall only issue permits to those sources for which emissions will be 

14 consistent with making reasonable progress toward the national goal of preventing 

15 future, and remedying existing, impairment of visibility.in Class I areas 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 of compliance; 

19 2. The time necessary for compliance; 

20 3. The energ'y and non-air quality environmental impacts of compliance; and 

21 4. The useful life of the 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 other appropriate methods as specified by the U.S. EPA 

4 (b) The monitoring method selected shall be determined on a case-by-case basis by 

5 the cabinet 

6 (c) The cabinet shall not undertake visibility monitoring in a Class I area without the 

7 approval of the federal land manager. 

8 (d) Data obtained from visibility monitoring shall be made available to the cabinet, 

9 the fe.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 of this section. 

13 (1) General provisions. 

14 (a) An owner or operator may execute a project without triggering major NSR, if the 

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 major stationary source used to avoid applicability of the 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 prior to the effective date of the 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 apply to 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 owner or 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 total for each month as required by subsection (12)(a) of this section. 

18 (3) Establishing a PAL. The cabinet shall establish a PAL at a major stationary 

19 source in a federally enforceable permit pursuant to the requirements of this section. 

20 (a) The PAL shall impose an annual emissions limitation in tons per year that is 

21 enforceable as a practical matter for the entire major stationary source, 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 under the PAL for the 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 permit that: 

9 1. Meets the public participation requirements in subsection (4) of this section; and 

10 2. Contains all the requirements of subsection (6) of this 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 of only 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 of subsections (11) to (13) of 

18 this section for each emissions unit under the PAL through 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 of the PAL is reduced by the amount of the emissions reductions; and 

23 2. The reductions would be creditable in the absence of the 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 of the proposed approval of a PAL permit with at 

6 least a thirty (30) day period for submittal of public 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 to the PAL level in an amount equal to the potential to 

27 
1 emit of the 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 requirement that the cabinet is aware of prior to issuance of the 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 per year; 

9 (b) The PAL permit effective date and the expiration date of the PAL or PAL 

1 0 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) of this section before the end of 

13 the PAL effective period, the PAL shall remain in effect until a revised PAL permit is 

14 issued by the 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 subject to the requirements of subsection (8) of this 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) of this section; 

23 (g) A requirement that the major stationary source owner or operator shall monitor 

28 
1 all emissions units in accordance with the provisions in subsection (12) of this section; 

2 (h) A requirement that the owner or operator shall retain the records required under 

3 subsection (12) of this section on site. Records may be retained in an electronic format; 

4 (i) A requirement for the owner or operator to submit, by the reports required under 

5 subsection (13) of this section by the required deadlines; and 

6 U) Any requirements necessary to implement and enforce the PAL. 

7 (7) PAL effective period and reopening of a PAL permit. 

8 (a) A PAL effective period shall be ten (10) years. 

9 (b) The cabinet shall reopen a PAL permit to: 

1 0 1. Correct typographical or calculation 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 if the owner or operator of the major stationary source creates 

13 creditable emissions reductions for use as offsets under 40 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 after the PAL effective date; 

19 2. Reduce the PAL consistent with any other requirement: 

20 a. That is enforceable as a practical matter; and 

21 b. That may be imposed on the major stationary source under the 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 Ambient Air Quality Standard (NAAQS) or PSD increment violation; or 

2 b. An adverse impact on visibility or another air quality related value that has been 

3 identified for a federal Class I area by a federal land manager and for which information 

4 is available to 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 or calculation of errors that dn not increase the PAL leveL 

8 (8) Expiration of a PAL A PAL that is not renewed shall expire at the end of the PAL 

9 effective period and the requirements of this 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 of the emissions units that existed under the 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 may approve the use of monitoring systems 

8 other than GEMS, GERMS, PEMS, or GPMS if the a~ernate monitoring system 

9 demonstrates compliance with the allowable emissions limitation. 

10 (c) The source shall continue to comply with a source-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 operator shall 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 pursuant to Section 7(4) of this administrative regulation. 

20 (9) Renewal of a 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 a written 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 earlier than eighteen (18) months before permit expiration. 

1 0 2. The deadline for application submittal shall ensure that the permit shall not expire 

11 before the 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 permit with 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) of this 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 renew the PAL. 

22 (d) PAL adjustment. 

23 1. A PAL shall not exceed the source's potential to emit. The cabinet shall adjust the 

32 
1 PAL downward to a level not greater than the potential to emit if a source's potential to 

2 emit has declined below the PAL level. 

3 2. The cabinet may renew the PAL at the same level as the current PAL without 

4 considering the factors specified in subparagraph 3 of this section, if the emissions level 

5 calculated according to subsection (5) of this section is equal to or greater than eighty 

6 (80) percent of the PAL level; or 

7 3. The cabinet may set the PAL at a level that is determined to be: 

8 a. More representative of the source's baseline actual emissions; or 

9 b. Appropriate considering the following factors: 

1 0 (i) Air quality needs; 

11 (ii) Advances in control technology; 

12 (iii) Anticipated economic growth in the area of the source; 

13 (iv) The cabinet's goal of promoting 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 higher than the current PAL, 

17 unless the major stationary source has complied with the provisions of subsection (10) 

18 of this section. 

19 (e) The PAL shall be adjusted in conjunction with the PAL permit renewal or Title V 

20 permit renewal, whichever comes first, if: 

21 1. The compliance date for a state or federal applicable requirement that applies to 

22 the PAL source occurs during the PAL effective period; and 

23 2. The cabinet has not already adjusted for the 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 of this 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 exceeds the PAL, and: 

11 a. The level of control that results from BACT equivalent 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 for that emissions unit shall be equal to the current level of BACT or LAER for that 

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 emit the PAL pollutant. 

22 (b) NSR permit and compliance requirement. The owner or operator shall obtain a 

23 major NSR permit for 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 subject to the PAL or shall continue to be subject to 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 of the baseline actual emissions 

11 of the 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 of the PAL pollutant 

18 in terms of mass per unit of time; 

19 2. A monitoring system authorized for use in the PAL permit shall be: 

20 a. Approved by the cabinet pursuant to 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 a judicial proceeding to enforce the PAL permit; 

2 4. The PAL monitoring system shall employ one (1) or more of the 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 of subparagraphs 1 to 3 of this paragraph; and 

7 6. Failure to use a monitoring system that meets the requirements of this section 

8 shall render the 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) of this 

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. Emissions factors. 

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 that the emissions .unit emits 

22 all of the PAL pollutant contained in or created by any raw material or fuel used in or at 

23 the emissions unit; and 

36 
1 3. If the vendor of the material or fuel from which the pollutant originates publishes a 

2 range, use the highest value of the published range of pollutant 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 content within the range. 

5 (d) CEMS. An owner or operator using CEMS to monitor PAL pollutant emissions 

6 shall meet the following requirements: 

7 1. CEMS shall comply with applicable Performance Specifications found in 40 

8 C.F.R. Part 60, Appendix A; 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 meet the 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 of operation of the 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 by the cabinet. 

19 (f) Emissions factors. An owner or operator using emissions factors to monitor PAL 

20 pollutant emissions shall meet the following requirements: 

21 1. All emissions factors shall be adjusted, if appropriate, to account for the degree of 

22 uncertainty or limitations in the factors' development; 

23 2. The emissions unit shall operate within the designated range of use for the 

37 
1 emissions factor, if applicable; and 

2 3. The owner or operator of a significant emissions unit that relies on an emissions 

3 factor to 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 that the 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) of this 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. If there is not a correlation between monitored parameters and the PAL pollutant 

18 emissions, determine that operation of the emissions unit during operating conditions is 

19 a violation of the 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 operator to retain a copy of all records 

3 necessary to determine compliance with any requirement of this section and of the PAL, 

4 including a determination of each emissions unit's twelve (12) month rolling total 

5 emissions for five (5) years from the date of the determination. 

6 (b) The PAL permit shall require an owner or operator to retain a copy of the 

7 following records for the duration of the 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 

1 0 2. Each annual certification of compliance pursuant to Title V and 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 meet the following requirements: 

15 (a) Semiannual report. The semiannual report shall be submitted to the cabinet 

16 within thirty (30) days of the end of each reporting period and shall contain: 

17 1. The identification of owner and operator and the permit number; 

18 2. Total annual emissions, in tpy, based on a twelve (12) month rolling total for each 

19 month in the reporting period recorded pursuant to subsection (12)(a) of this section; 

20 3. All data used in calculating the monthly and annual PAL pollutant emissions, 

21 including any quality assurance or quality 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 

1 0 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 to subsection (11 )(g) of this 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 the following information: 

40 
1 a. The identification of the owner, the operator, and the permit number; 

2 b. The PAL requirement that experienced the deviation or that was exceeded; 

3 c. Emissions resulting from the deviation or the 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 of any revalidation test or method within three (3) months after completion of the 

9 test or method. 

10 (14) Transition requirements. 

11 (a) After the U.S. EPA approves the Kentucky SIP revisions for the PAL provisions 

12 published at 67 Fed. Reg. 80186, December 31, 2002, the cabinet shall only issue a 

13 PAL that complies with the requirements of this section. 

14 (b) The cabinet may supersede a PAL that was established before August 10, 2006, 

15 with a PAL that complies with the requirements of this 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 Bon the first fioor of the Division for Air Quality at 200 Fair Oaks 

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

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

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

canceled. 

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

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

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

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

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 brief summary of: 

(a) What this 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 air quality standards (NAAQS). 

(c) How this administrative regulation conforms to the content of the 

authorizing statutes: KRS 224.1 0-1 00(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 provisions for 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. This 

regulation conforms to the statutes because it is no more stringent than 

the federal 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 

brief summary of: 

(a) How the amendment will change this existing administrative 

regulation: This amendment incorporates significant impact levels (SILs) 

for PM2.s· 

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

The PM2.5 Sl Ls 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) 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 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 not or will 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 PM2.5 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 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 PM2.5 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 air quality throughout the Commonwealth. 

45 
(5) Provide an estimate of how much it will cost the administrative body to 

implement this administrative regulation: 

(a) Initially: The Cabinet will not incur any additional costs for the 

implementation of this 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 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 

implement this 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, nor directly or 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 for the implementation, maintenance, and enforcement of a standard. 

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 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 air quality. 40 C.F.R. 51.165 is the federal rule that provides 

authority for the 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 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 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. 

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, or school districts)? Yes. 

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

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

administrative regulation? 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-

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 will this administrative regulation generate for the state 

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

districts) for the first year? This administrative regulation 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 cost to administer this program for the first year? The 

Cabinet's existing operating budget continues as the source of funding for the 

implementation of this 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: If specific dollar estimates cannot be determined, provide a brief narrative 

to explain the fiscal impacts of the administrative regulation. 

Revenues (+/w): There is no known effect on current revenues. 

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

Other Explanation: There is no further explanation. 

48 
VOLUME 39, NUMBER 1 -JULY 1, 2012 

lion of the statuies: This administrative regulation amendment will 

make the requirements for a pesticide sales agent and public 

health pest control easier to locale and follow. 

(3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this 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 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, 

including: 

(a) List the actions that each of the 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 

by the 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 makes the requirements easier 

to understand. 

(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation: 

(a) Initially: No new additional costs. 

(b) On a continuing basis: No additional costs. 

(6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation: Federal EPA funds 51% of the program, and pesticide product registration fees fund 49%. 

(7) Provide an assessment of whether an increase in fees or 

funding will be necessary to implement this administrative regulalion, if new, or by the change if it is an amendment: No increase in 

fees or funding will be required for this 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 directly or indirectly through this 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, fire departments, or school districts)? Yes. 

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

(including cities, counties, fire departments, or school districts) will 

be impacted by this administrative regulation? The Kentucky Department of AgricuHure, 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 year the administrative regulation is to be in effect. No 

fiscal changes will 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 changes will occur. 

(c) How much will it cost to administer this program for the first 

year? No changes in spending will occur. 

(d) How much will it cost to administer this program for subsequent years? No changes in spending will occur. 

Note: If specific dollar estimates cannot be determined, provide 

a brief narrative to explain the fiscal impact of the administrative 

regulation. 

Revenues(+/-): 

Expenditures(+/-): 

Other Explanation: 

ENERGY AND ENVIRONMENT CABINET 

Department for Environmental Protection 

Division for Air Quality 

(Amendment) 

401 KAR 51:001. Definitions for 401 KAR Chapter 51. 

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, 63 Appendices A-D, 70.2, 75, 

82, 96, 42 u.s.c. 7401-7671q 

STATUTORY AUTHORITY: KRS 224.10-100(5) 

NECESSITY, FUNCTION, AND CONFORMITY: KRS 224.10-

1 00(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 corresponding federal 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[, effective July 1, 2010]. (1) "Acid rain emissions limitation" means a limitation on emissions of SO, or NOx imposed by 

the Acid Rain Program under 42 U.S.C. 7651 to 7651 o. 

(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 particular date 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 

selected time 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 equivalency determination pursuant to 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 of the unit on 

that date; and 

(d) Does not mean: 

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 of all emissions units at the source that emit 

or have the potential to emil the 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 of entities that emits or may emil an 

air contaminant into the outdoor atmosphere. 

(6) "Air contaminant" is defined by KRS 224.01-01 0(1). 

(7) "Air pollutant" means air contaminant. 

(8) "Air pollution· 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 of the normal product of the source or to 

- 113 -
VOLUME 39, NUMBER 1 -JULY 1, 2012 

its normal operation. 

(10) 'Allocate" or "allocation" means the number of NOx allowances to be credited to 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 of the 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 compliance date; or 

3. The emissions rates specified as a federally enforceable 

permit condition, including those with a future compliance date; 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 

to emit, and the most stringent provision of paragraph (a)1. through 

3. of this subsection. 

(13) "Alteration" means: 

(a) The installation or replacement of air pollution control 

equipment at a 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 previously emitted. 

(14) "Alternative method" is defined by 40 C.F.R. 60.2. For 

purposes of this definition, "administrator'' means both the U.S. 

EPA and the cabinel 

(15) "Ambient air'' means that portion of the atmosphere, external to buildings, to which the general public has 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 over which that concentration 

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

through the application of appropriate preventive or control 

measures. 

(17) "ANSI" means American 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 of emissions, 

in tons per year, of a regulated NSR pollutant, that: 

(a) For an existing electric utility steam generating unit 

(EUSGU), the unit actually emitted during any consecutive twentyfour (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 of the 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 associated with startups, shutdowns, and malfunctions; 

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

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 necessary according to clause b. of this subparagraph; and 

2. If a project involves multiple emissions units, only one (1) 

consecutive twenty-four (24) month period is used to determine the 

baseline actual emissions for the 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 selected by the owner or operator within the ten (10) year 

period beginning on or after November 15, 1990, and immediately 

preceding the earlier of the dale the owner or operator begins actual construction of the project or the date a complete permit application is received by the cabinet for a permit required under 401 

KAR 51:017 or 51:052. 

1. The rate iS an average that: 

a. Includes fugitive emissions, to the extent quantifiable, 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; 

(li) To exclude any emissions that would have exceeded an 

emission limitation with which the major stationary source is required currently to comply, if the 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 according to clause b. of this 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) For a PAL for a stationary source, is determined as follows: 

1. For an existing EUSGU, in accordance with the procedures 

contained in paragraph (a) of this subsection; 

2. For other existing emissions units, in accordance with the 

procedures contained in paragraph (b) of this subsection; and 

3. For a new emissions unit, in accordance with the procedures 

contained in paragraph (c) of this subsection. 

(21) "Baseline area" means an intrastate area and every part 

of that 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 or 0.3 ugfm3 annual average for PM, 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 stationary source or major modification that: 

1. Establishes a minor source baseline date; or 

2. Is subject to 401 KAR 51:017 and would be constructed in 

the Commonwealth of Kentucky. 

(b) A baseline area established originally for total suspended 

particulate (TSP} increments remains in effect to determine the 

amount of available PM,0 increments, unless the cabinet rescinds 

the corresponding minor source baseline date. 

(22) "Baseline concentration" means the ambient concentration 

level that exists in the baseline area on the date the applicable 

minor source baseline date is established. 

{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 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 of the source's complete application; and 

(a} For a major stationary source, the pollutant would be emit-

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VOLUME 39, NUMBER 1- JULY 1, 2012 

ted in significant amounts; or 

{b) For a major modification, there would be a significant net 

emissions increase of the 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 supports and foundations, laying underground pipe 

work, and construction of permanent storage structures; and 

(b) For a change in method of operations, those on-site acflv·lties, other than the preparatory activities, that mark the initiation of 

the change. 

(25) "Best available control technology'' or "BACr means an 

emissions limitation, 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 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 of that 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 60 and 61; and 

(c) Is satisfied by a design, equipment, work practice, or operational standard or combination of standards approved by the 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 

measurement methodology to a particular emissions unit would 

make the imposition of an 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 oxidant demand. 

(27) "Boiler'' means an enclosed fossil or other fuel-fired combustion device used to produce heat and to transfer heat to recirculating water, steam, or other medium. 

(28) "BTU" means British thermal unit. 

(29) "Building, structure, facility, or installation" means all of the 

pollutant emitting activities that: 

(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 under the control of the same person or persons under 

common control; and 

{d) Do not include the activities of a vessel. 

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

(31) "Cabinet" is defined by KRS 224.01-01 0(9). 

(32) "Cal" means calorie. 

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

(34) "cfm" means cubic feet 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 

by 40 C.F.R. 51.166(b)(34). 

(38) "Clinker" means the product of a portland 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 efficiency of 

electricity generation or steam 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 the flue gas resulting from the combustion of fuel in the combustor passes through the turbine, rotating 

the turbine. 

(44) "Commence" means that an owner or 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 or permits, and: 

1. Has begun, or caused to begin, a continuous program of 

actual on-site construction of the source, to be completed within a 

reasonable time: or 

2. Has entered into binding agreements or contractual obligations, that cannot be cancelled or modified without substantial loss 

to the owner or operator, to undertake a program of actual construction of the source to be completed within a reasonable time. 

(45) "Commence commercial operation" means to 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 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 of commencement of commercial operation 

even if the 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 unifs date of commencement of commercial operation. 

(46) "Commence operation" means, for a NOx budget unit, to 

have begun a mechanical, chemical, or electronic process, including start-up of a 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, or repowered; or 

(b) For a unit that is not a NOx budget unit under 40 C.F.R. 

96.4 on the date of commencement of operation, the date the unit 

becomes a NOx budget unit under 40 C.F.R. 96.4 is the unit's date 

of commencement of operation. 

(47) "Complete" is defined by 40 C.F.R. 51 .166(b){22). 

(48) "Compliance schedule" means a time schedule of remedial measures including an enforceable sequence of actions or operations leading to compliance with a limitation or standard. 

(49) "Compliance supplement pool" means the quantity of NOx 

allowances provided to Kentucky by the U.S. EPA to be: 

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

oc 

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

the compliance deadline as provided in 401 KAR 51:180, Section 

5. 

(50) "Construction" means: 

{a) Fabrication, erection, installation, or modification of an air 

contaminant source; or 

(b) For the NSR program, any physical change or change in 

the method of operation, including fabrication, erection, installation, 

demol'llion, or modification of an emissions un·rt that would result 'm 

a change in the emissions at an air contaminant source. 

(51) "Continuous emissions monitoring system" or "GEMS" 

means all of the equipment necessary to meet the data acquisition 

and availability requirements of 401 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 

"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 of NOx emissions, expressed in tons per hour for NOx. The 

following systems are necessary component parts, as required by 

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VOLUME 39, NUMBER 1- JULY 1, 2012 

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 (02 or C02); 

(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 pennanent 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) for 401 KAR 51:052. 

(56) "Control period" means the period beginning May 1 of a 

year and ending on September 30 of the same year, inclusive. 

(57) "Director'' means Director of the Division for Air Quality of 

the Energy and Environment Cabinet. 

(58) "District" is defined by KRS 224.01-01 0(11 ). 

(59) "dscf" means dry cubic feet at standard condftions. 

(60) "dscm" means dry cubic meter at 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 generate twenty-frve (25) megawatts or more 

of electricity, some of which 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 into the atmosphere from an affected facility or from air 

pollution control equipment installed in an affected facility. 

(64) "Emissions unit" means any part of a stationary source, 

including an EUSGU, that emits or has the potential to emil a regulated NSR pollutant. For 401 KAR 51:017 and 51:052, there are 

two (2) types of emissions units: 

(a) A new emissions unit, which is any emissions unft that is or 

will be newly constructed and that has existed for less than two (2) 

years from the date the unit first operated; and 

(b) An existing emissions unit, which is any emissions unit that 

does not meet the requirements in paragraph (a) of this subsection 

or is 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 

of the source that are subject to the standards; 

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

standards; and 

(c) The method the source 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, under specified conditions. 

(67) "Excess NOx emissions" means any tonnage of nitrogen 

oxides emitted by a NOx budget unit during a control period that 

exceeds the NOx budget emissions limitation for the unit. 

(68) "Exempt compound" or "exempt solvent" means an organic compound listed in the definition of volatile organic compound as 

not participating 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 

for ozone. 

(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 that are enforceable by the U.S. EPA, including: 

(a) Requirements developed under 40 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. EPAapproved program incorporated into the SIP, that expressly requires adherence to a permit issued under the program. 

(74) "Federally enforceable permir means a permit issued 

under 401 KAR 52:020 or 52:030, as appropriate. 

(75) "Fixed capital cost" means the capital needed to provide 

all the depreciable components. 

(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 combusled comprises more than frfty 

(50) percent of the annual heat input on a BTU basis during a year 

starting in 1995 or, if a unit had no heat input starting in 1995, during the last year of operation of the unit prior to 1995; or 

(b) The combustion of fossil fuel, alone or in combination with 

another fuel, if the fossil fuel is projected to comprise more than 

fifty (50) percent of the annual heal 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 or foot. 

(79) "Fuel" means natural gas; petroleum; coal; wood; or a 

form of solid, liquid, or gaseous fuel derived from these materials 

for the purpose of creating useful heat. 

(80) "Fugitive emissions" means those emissions that could 

not reasonably pass through a stack, chimney, vent, or other functionally equivalent opening. 

(81) "g" means gram. 

(82) "gal" means gallon. 

(83) "General fund" is defined by KRS 48.010(15)(a). 

(84) "Generator" means a device that produces electricity. 

(85) "gr" means grain. 

(86) "HCI" means hydrochloric acid. 

(87) "Heat inpur means the product, in MMBTU per unit of 

time, of the gross calorifrc value of the fuel, in BTU per lb, and the 

fuel feed rate into a combustion device, in mass of fuel per unit of 

time, that: 

(a) Does not include the heat derived from preheated combustion air, recirculated flue gases, or exhaust from other sources; 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 organic compound consisting 

predominantly of carbon 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 uses of flares during startup, 

shutdown, or malfunction permitted under the standard; or 

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

comprised predominately of hydrocarbons and containing no more 

than 230 j.Jg/dscm hydrogen sulfide. 

(94) "HzO" means water. 

(95) "H2S' means hydrogen sulfide. 

(96) "H2SQ •. means sulfuric acid. 

(97) "in" means inch. 

(98) "Incineration" means the process of igniting and burning 

solid, semisolid, liquid, or gaseous combustible wastes. 

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

combustion turbine, or a combined cycle system having a maximum design heat input of 250 MMBTU per hour or more that is not 

an electric generating unit. 

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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 air from a process that operates for less than 

any six (6) consecutive minutes. 

(1 02) "J" means joule. 

(1 03) "Kg" means kilogram. 

(104) "I" means liter. 

(105) "lb" means pound. 

(106) "Legally enforceable" means the cabinet or the U.S. EPA 

has the authority to enforce a certain restriction. 

(107) "Long dry kiln" means a kiln that employs no preheating 

of the feed and has a dry inlet feed. 

(108) "Long wet kiln" means a kiln that employs no preheating 

of the feed and the inlet feed to the kiln is a slurry. 

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

(110) "Lowest achievable emissions rate" or "LAER" means, 

for any source: 

(a)1. The most stringent emissions limitation that is contained 

in the Kentucky SIP for the class or category of stationary source, 

unless the owner or operator of the proposed stationary source 

demonstrates that the limitation is not achievable; or 

2. The most stringent emissions limitation achieved in practice 

by the class or category of stationary source; 

(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) "Major emissions unit" means: 

(a) Any emissions unit that emits or has the potential to emit 

100 Ions per year or more cl a 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 Air Act, 42 U.S.C. 7401 - 7671q for nonattainment areas. 

(114) "Major modification" means a physical change in or a 

change in the method of operation of a major stationary source that 

results in a significant emissions increase and a significant net 

emissions increase of a 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 significant for ozone. 

(b) A physical change or change in the method of operation 

does not include: 

1. Routine maintenance, repair, and replacement; 

2. Use of alternative fuel or raw material by reason of an order 

or a natural gas curtailment plan in effect under a federal act: 

3. Use of an alternative fuel at a steam generating unit to the 

extent that the fuel is generated from municipal solid waste: 

4. Use of an alternative fuel or raw material by a stationary 

source that: 

a. The source was capable of accommodating before January 

6, 1975, for 401 KAR 51:017, or December 21, 1976, for 401 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, pursuanlto 40 C.F.R. 51.165 or 51.166; 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, for 401 KAR 51:052 pUrsuant to 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 pursuant to 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 is terminated; 

8. The installation or operation of a 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 of this definition, the definition for "PAL major modification", in subsection (175) of this section, is used for a particular 

regulated NSR pollutant, if the major stationary source is complying with the requirements of 401 KAR 51:017, Section 20, and 401 

KAR 51 ;052, Section 11, for a PAL for that pollutant. 

(115)"Major NSR permit" means a permit issued under Kentucky's PSD or NSR 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 organic compounds, carbon monoxide, or ODS. 

(117) "Major source baseline date" means: 

(a) For PM10[1:mrtiGr.tlate mat=ter] and sulfur dioxide, January 6, 

1975;[aR9] 

(b) For nitrogen dioxide, February 8, 1988· and 

(c) For PMn, October 20. 2010. 

(118) "Major stationary source" 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, except that: 

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 of volatile organic compounds or nitrogen oxides in a ser'lous 

ozone nonattainmenl area; twenty-five (25) tons per year or more 

of volatile 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 significantly to carbon monoxide levels; and 

c. Seventy (70) tons per year or more of particulate matter 

(PM10) in a serious PM,o nonattainment area; or 

2.a. For the PSD program, any of the following stationary 

sources of air pollutants that emits, or has the potential to emit, 100 

tons per year or more of a 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 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 

Classifrcation System (NAICS) codes 325193 or 312140, fossil fuel 

boilers, or combination of fossil 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 of the stationary source size specified in clause 

li. [sr.~bola~o~se (i)] of this subparagraph [GiaYse], a stationary source 

that emits, or has the potential to emit, 250 tons per year or more 

of a regulated NSR pollutant; or 

3. Any physical change that will occur at a stationary source 

not otherwise qualifying under this subsection as a major stationary 

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 is considered major for ozone; and 

(c) Fugitive emissions are included only if the source belongs 

to one (1) ct the following categor"1es of stationary sources: 

1. Coal cleaning plants with thermal dryers; 

2. Kraft pulp mills; 

3. Portland cement plants; 

4. Primary zinc smelters; 

5. Iron and steel mills; 

6. Primary aluminum ore reduction plants; 

7. Primary copper smelters; 

8. Municipal incinerators capable of charging more than 250 

tons of refuse per day; 

9. Hydrofluoric, sulfuric, or nitric acid 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. Secondary metal production plants; 

20. Chemical process plants, except ethanol production facilities producing ethanol by na.tural fermentation under NAICS codes 

325193 or 312140; 

21. Fossil-fuel boilers, or combination of fossil-fuel boilers, 

totaling more than 250 million BTUs per hour heat input; 

22. Petroleum storage and transfer units with a total storage 

capacity exceeding 300,000 barrels; 

23. Taconite ore processing plants; 

24. Glass fiber processing 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 under 42 U.S.C. 7411 or 7412. 

(119) "Malfunction" means a sudden and infrequent failure of 

air 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 breakdown that 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 

consultation with the Secretary of the U.S. Department of Interior, 

has determined visibility to be an important value. 

(121) "Marginal nonattainment county" or "marginal nonattainment area" means a county or portion of a county designated marginal nonattainment for the national ambient air quality standard for 

ozone. 

(122) "Maximum design heat input" means the ability of a unit 

to combust a stated maximum amount of fuel per hour on a steady 

state basis, as determined by the physical design and physical 

characteristics of the unit. 

(123) •Maximum potential hourly heal input" means an hourly 

heat input used for repo1t'1ng 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 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 either the maximum percent CO, 

concentration (in percent CO,) or the minimum percent 02, if the 

unit intends to use a flow 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 02 or the 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 heat input. 

(126) "!J-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 for the purpose of decreasing NOx emissions through: 

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

{b) Reducing-conditions at the solid waste injection point that 

may destroy some of the NOx formed upstream in the kiln burning 

zone. 

(129) "min" means minute. 

(130) "Minor source baseline date" 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 Kentucky SIP submits a complete application The trigger date is: 

1.[j;er fJartisbllate matter anG Slllfur GiexiGe, the trigger <late is] 

August 7, 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. October 20, 2011, for PM,.s: 

{b) For TSP increments, that the originally established date 

remains in effect to determine the amount of available PM1o increments, unless the cabinet rescinds the minor source baseline dale 

pursuant to 40 C.F .R. 51.166{b)(14)(iv); and 

(c) A date established for each pollutant for which increments 

or other equivalent 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) for the pollutant on the date of its 

complete application pursuant to 401 KAR Chapter 52; and 

2. For a major stationary source, the pollutant will be emitted in 

significant amounts or a significant net emissions increase of the 

pollutant will occur for a major modification. 

(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 for the national ambient air quality standard for ozone. 

(136) "Modification" means any physical change in, or a 

change in the method of operation of, an affected facility that: 

(a) Increases the amount of any air pollutant (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) into the atmosphere not previously emitted; and 

(b) Is not solely: 

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, if that 

increase can be accomp1'1shed without a capital expenditure on that 

facility; 

3. An increase in the hours of operation: 

4. Use of an alternative fuel or raw material if, prior to the date 

a standard becomes applicable to that source type, 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 under the facility's construction specification as amended prior to the change; 

5. Conversion to coal required for energy considerations, as 

specified in 42 U.S.C. 7411(a)(8); 

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 that the cabinet 

determines to be less environmentally beneficial; or 

7. The relocation or change in ownership of a source. 

{137) "Monitoring device' means the total equipment, required 

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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, if applicable, process parameters. 

{138) "Monitoring system" means a monitoring system that 

meets the requirements of any applicable administrative regulation 

in 401 KAR Chapters 50 to 65. 

(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, or coloration. 

(143) "Necessary preconstruction approvals or permits" means 

those permits 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) "Net emissions 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 of this 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 under this par~ 

agraph are determined as defined in this section. 

{b) An increase or decrease in actual emissions is contemporaneous with the increase from the particular change 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 date that the 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 increase from the change occurs. 

(c) An increase or decrease in actual emissions is creditable 

only if: 

1. The cabinet or the 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 40 C.F.R. 52.21; and 

2. The pem1it is in effect at the time the increase or decrease in 

actual emissions from the particular change occurs. 

(d) An increase or decrease in actual emissions of sulfur dioxide, particulate matter, or nitrogen oxides that occurs before the 

applicable minor source baseline date is creditable only if it is required to be considered in calculating the amount of maximum 

allowable increases remaining available. For particulate matter, 

only PMw emissions are used to evaluate the net emissions increase for PM, 0. 

(e) An increase in actual emissions is creditable only to the 

extent that the new level of actual emissions exceeds the old level. 

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

extent that: 

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

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 increase from the particular change. 

(g) An increase that 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 

after a reasonable shakedown period, not to 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 of which commenced on or after the classification date as defined in the applicable administrative regulalion, irrespective of a change in emission rate. 

(146) "Nitrogen oxides" means all oxides of nitrogen except 

nitrous oxide, as measured by test methods spectfied in the Kentucky SIP. 

{147) "ng" means nanograms. 

(148) "NO" means nitric oxide. 

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

(151) "NOx" means nitrogen oxides. 

(152) "NOx allowance" 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) "NOx authorized account representative" is defined 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 account for: 

(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 under 40 C.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 

.. Budget Trading Program and whose NOx budget opt-in pem11t has 

been issued and is in effect. 

(157) "NOx budget source" is defined by 40 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 under 401 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 under 401 KAR 51:195 is submitted and not denied or withdrawn and includes a holding company, utility system, or plant 

manager of a NOx budget unit or source. 

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

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

budget unit or in a unit for which an application for a NOx budget 

opt-in permit under 401 KAR 51:195 is submitted and not denied or 

withdrawn; 

(b) A holder of a leasehold Interest in a NOx budget unit or in a 

unit for which an application for a NOx budget opt-in pem1it under 

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

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

for which an application for a NOx budget opt-in permit under 401 

KAR 51:195 is submitted and not denied or withdrawn under a 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, either directly or 

indirectly, upon the revenues or income from the NOx budget unit 

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

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

(d) For any general account, a person who has an ownership 

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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 agreement for 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 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 pennit is submitted and not denied or withdrawn, and includes any holding company, utility system, or plant manager of 

the unit or source. 

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

unit under the NOx Budget 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 pursuant to 

40 C.F.R. Part 82, Subpart A, Appendices A and B, the ratio of the 

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 of CFC-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, after the photolysis of the ODS by short-wave uttraviolet 

light, that are able to catalyze the destruction of stratospheric 

ozone. 

(173) "PAL effective date" means: 

(a) The date of issuance of the PAL permit; or 

(b) For an increased PAL, the date any emissions unit that is 

part of the PAL major modification becomes operational and begins to emit the PAL pollutant. 

(174) "PAL effective period" means the period beginning with 

the PAL effective date and ending ten (1 0) 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!" means the penn it issued by the cabinet that 

establishes a PAL for a major stationary source. 

(177) "PAL pollutanf' means the pollutant for which a PAL is 

established at a major stationary 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 ambient air as measured by 

applicable reference methods, or an equivalent or artemalive 

method specified in 40 C.F.R. Chapter I, or by a test 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 per year. 

(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 or 51:052. 

(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 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 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 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 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 in 40 C.F.R. Chapter I, or by a test 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) "Potential to emit" or "PTE" means: 

(a) The maximum capacity of a stationary source to 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 oombusted, stored, or processed, is treated as 

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

2. This definition does not alter or affect the use of this tenn for 

other purposes of the Clean Air Act, 42 U.S.C. 7401 - 7671q, or the 

tenn "capacity factor'' 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 if the limitation or the effect it would have on emissions: 

a. Is federally enforceable; or 

b. For an actual PAL, is federally enforceable or enforceable as 

a practical matter; and 

2. Secondary emtssions are not counted. 

(191) "ppb" means parts per billion. 

(192) "ppm" means parts per million. 

(193) "ppm(wlw)" 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 

burner to calcine material in a separate vessel attached to the 

pre heater prior to the final fusion in a kiln that fonns 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 prior to the final fusion in 

a kiln that fonns 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 

or 52.21. 

(198) "Project" means a physical change in or change in method of operation of an existing major stationary source. 

(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-

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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 or Its potential to emit the regulated NSR pollutant; and 

2. Full utilization of the unit would result in a significant emissions increase or a significant net emissions increase at the major 

stationary source; 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, if the 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 per square inch absolute. 

(201) "psig" means pounds per square 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 of this definition, "administrator'' means the 

U.S. EPA. 

(205) "Reconstruction" means the replacement of components 

of an existing affected facility to the extent that: 

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

(50) percent of the fixed capital cost that would be required to construct a comparable entirely new affected facility; and 

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

applicable requirements of 401 KAR Chapters 50 to 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, Appendices A to D. 

(207) "Regulated NSR pollutant" means the following: 

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

has been promulgated and the followinqfarw] constituents or precursors~ 

1. Volatile oraaniC compounds and nitrogen oxides are precursors to ozone in all attainment and 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 significant contributor to that area's 

ambient PM,s concentrations· and 

5. Particulate matter emissions, PMn emissioris and PM12 

emissions shall include gaseous 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 by 42 U.S.C. 7671to 7671q; or 

(d) A pollutant that otherwise is subject to regulation, as defined in subsection (231) of this section, under 42 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 precursor of a 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 unit that is replaced, and that: 

(a)1. Is a reconstructed unit wfthin the meaning of 40 C.F.R. 

60.15(b)(1) or that completely takes the place of an 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 unit that: 

1. Is permanently removed from the major stationary source, is 

otherwise permanently disabled, or is prohibited from operating by. 

a permit that 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, or vicepresident of the corporation in charge of a principal business function, or other person who performs similar policy or decisionmaking functions for the corporation, or a duly authorized representative of that person if the representative is responsible for the 

overall operation of one (1) or more manufacturing, production, or 

operating facilities applying for or subject to 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 of authority to the representative is approved 

in advance by the cabinet pursuant to this subsection; 

(b) For a partnership or sole proprietorship, a general partner 

or the 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 unit of the agency; or 

(d) For the acid rain portion of a permit for an affected source, 

the designated representative. 

(211) "Run" means the net period of time, either intermittent or 

continuous within the limits of good engineering practice, when an 

emission sample is collected. 

(212) "S" means at standard conditions. 

(213) "sec" means second. 

(214) "Secondary emissions" means emissions that 

(a) Occur as a result of the construction or operation of a major 

stationary source or major modification, and do not come from the 

major stationary source or major modification itself; 

(b) Are specific, well defined, quantifiable, and impact the 

same general area as the stationary source modification that causes the secondary emissions; 

(c) Include emissions from an offsite support facility that 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, or vessel. 

(215) "Serious nonattainment county" or "serious nonattainment area" means a county or portion of a county designated serious nonattainment for the 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" means the cessation of an 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 that would 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 the table in paragraph (a) of this subsection, 

any emissions rate; 

(c) For 401 KAR 51:017, in reference to an emissions rate or a 

net emissions increase associated with a major stationary source 

or major modification, that is to be constructed within ten (10) kilometers of a Class I area, an impact on that area equal to or greater 

than one (1) !!g/m3 over a twenty-four (24) hour average; 

(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 of emissions 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 of emissions that exceeds the following: 

1. Twenty-five (25) tons per year of volatile organic compounds 

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 

exceeds fifty (50) tons per year in a serious nonattainment area for 

carbon monoxide in which a stationary source contribute significantly to carbon monoxide levels. 

(219) "Significant emissions increase' means, for a regulated 

NSR pollutant, an increase in emissions that is equal to or greater 

than the emission level that is significant for that pollutant. 

(220) "Significant emissions unit" means an emissions unit that 

emits or has the potential to emil a PAL pollutant in an amount 

equal to or greater than the applicable significant level as defined 

in subsection (218) of this section or in 42 U.S.C. 7401 to 7671q, 

whichever is lower for that PAL pollutant, but less than the amount 

that would qualify the unit as a major emissions 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) of this section; or in 42 U.S.C. 7401 to 7671q, 

whichever is lower. 

(222) "SO/ means sulfur dioxide. 

(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 of way. 

(224) "sq" means square. 

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

necessary to comply with 401 KAR Chapter 51. 

(227) "Standard conditions" means: 

(a) For source measurements, twenty (20) degrees Celsius 

(sixty-eight (68) degrees Fahrenheit) and a pressure of 76(} mm Hg 

(29.92 in. of Hg}; or 

(b) For air quality detenninations, 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" means the setting in operation of 

an affected facility. 

(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 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. 

- 122 -
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 technology demonstration project" 

·1s defined by 40 C.F.R. 51.166(b)(35). 

(235) "Ton" or "tonnage", for a NOx budget source, means a 

short ton or 2,000 pounds. For determining compliance with the NOx 

budget emissions limitation, total tons for a control period is calculated as the sum of all recorded hourly emissions, or the tonnage 

equivalent of the recorded hourly emissions 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 

any fraction of a ton less than 0.50 ton 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" means tons per year. 

(238) "TSS" means total susperded 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 molecular forces. 

(240) "Unit" means a fossil fuel-fired stationary boiler, combustion turbine, or combined 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. If a 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. 

Department of Commerce, Bureau of Census. 

(243) "U.S. EPA" means the United Stales Environmental Protection Agency. 

(244) "UTM" means Universal Transverse Mercator. 

(245) ''Visibility impairment" is defined by 40 C.F.R 51.301. 

(246) "Volatile organic compound" or "VOC" is defined by 40 

C.F.R. S1.100(s). 

{247) "yd" means yard. 

Section 2. Incorporation by Reference. (1) The following material is incorporated by reference: 

{a) "North American Industry Classification System", 2007, as 

published by the Office of Management and Budget; and 

(b) "Standard Industrial Classification Manual", 1987, as published by the Office of Management and 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 of 8 a.m. to 4:30p.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, Kentucky 41102, (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, Kentucky 41042, (859) 525-4923; 

(e) Frankfort Regional Office, 200 Fair Oaks 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, Kentucky 40741, (606) 330-2080; 

(h) Owensboro Regional Office, 3032 Alvey Park Drive, W., 

Suite 700, Owensboro, Kentucky 42303, (270) 687-7304; and 

(i) Paducah Regional Office, 130 Eagle Nest Drive, Paducah, 

Kentucky 42003, (270) 898-8468. 

(3) The Standard Industrial Classification Manual is also available under Order No. PB 87-100012 from the National Technical 

Information Service, 5285 Port Royal Road, Springfield, Virginia 

22161, phone(703)487-4650. 

LEONARD K. PETERS, Secretary 

APPROVED BY AGENCY: June 13, 2012 

FILED WITH 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 

July 24, 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 of their intent to attend. If no notification of intent to attend 

the hearing is received by that date, the hearing may be canceled. 

This hearing is open to the public. Any person who wishes to be 

heard shall be given an opportunity to comment on the proposed 

administrative regulation. If you do not wish to be heard at the 

public hearing, you may submit 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 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, 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 IMPACT ANALYSIS AND TIERING STATEMENT 

Contact person: Laura Lund 

(1) Provide a brief summary of: 

(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 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 of federal 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 of the statutes: This administrative regulation assists the public and the regulated community 

by providing clear and consistent definitions for terms used in 401 

KARChapter51. 

(2) If this is an amendment to an existing administrative regulalion, provide a brief summary ot 

{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 

PM2.

5 National Ambient Air Quality Standards (NMOS). Specifically, the definition of "Regulated NSR pollutanf' has been amended 

for consistency with the federal program. 

(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 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 of terms used 

in 401 KAR Chapter 51 to prevent and control air pollution that are 

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VOLUME 39, NUMBER 1- JULY·1, 2012 

consistent with those at the federal level. 

(3) List the type and number of individuals, businesses, organizations, or stale and local governments affected by this administrative regulation: Individuals, businesses, organizations, or governments will be affected by this regulation if they are subject to any of 

the requirements contained in this chapter. 

(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 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 will be required to 

apply and use the terms as defined 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 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 air quality throughout the Commonwealth. 

(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation: 

(a) Initially: The Cabinet will not incur any additional costs for 

the implementation of this 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 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 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, any fees. 

(9) TIERING: Is tiering applied? Yes. This administrative regulation contains thresholds over which facilities may be subject to 

permitting requirements. 

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 of a 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 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 air quality. 

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

than those required by the federal mandate? No. 

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

additional or different responsibilities or requirements. The definitions contained in this administrative regulation are not more stringent than the corresponding federal 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, or school districts)? Yes. 

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

(including cities, counties, fire departments, or school districts) will 

be impacted by this administrative regulation? State and local governments will be required to use definitions contained in this administrative regulation if subject to the requirements of 401 KAR 

Chapter 51. 

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 year the 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) 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 cost to administer this program for the first 

year? The Cabinet's existing operating budget is the source of 

funding for the implementation of this program. 

(d) How much will it cost to administer this program for subse· 

quent years? There will be no additional costs for administering 

this program in subsequent years. 

Note: If specific dollar estimates 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 ex· 

penditures. 

Other Explanation: There is no further explanation. 

ENERGY AND ENVIRONMENT CABINET 

Department for Environmental Protection 

Division for Air Quality 

(Amendment) 

401 KAR 51:017. Prevention of significant deterioration of 

air quality. 

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 Appendix A, 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[, EO 2009 §38] 

NECESSITY, FUNCTION, AND CONFORMITY: KRS 224.10-

1 00@ requires the cabinet to promulgate administrative regulations for the prevention, abatement, and control of air pollution.[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 of Sections 8 to 16 of this 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 

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VOLUME 39, NUMBER 1- JULY 1, 2012 

major modification, which is subject to the requirements of Seclions 8 to 16 of this administrative regulation, shall not begin actual 

construction without a proposed pennit or proposed permit revision 

issued under 401 KAR 52:020 stating that the major stationary 

source or major modification shall meet those 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 

em"1ss'1ons increase and a significant net emissions increase as 

provided in paragraphs (a) and (b) of this subsection. 

(a) Prior to beginning actual construction, the owner or operator shall first determine if a significant emissions increase will occur 

for the applicable type of unit being constructed according to subparagraphs 1 to 3 of this 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 or exceeds the significant amount for that pollutant 

2. Actual-to-potential test for projects that involve only construction of new emiss·lons units. A significant emissions '1ncrease 

of a regulated NSR pollutant shall be projected to occur if the sum 

of the potential to emit from each new emissions unit following 

completion of the project equals or exceeds the significant amount 

for that 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 

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 operator 

of the major stationary source shall comply with the applicable 

requirements of Secllon 20 of this administrative regulation. 

(2) For any period other than an annual period, the applicable 

maximum allowable increase may be exceeded during one (1) 

such period per year at any one (1) location. 

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 air quality standard, whichever concentration is lower for the pollutant for a pariod 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) National wilderness areas and national memorial parks that 

exceed 5,000 acres in size; and 

(c) National parks that exceed 6,000 acres in size. 

(2) Any other area, unless otherwise specified in the legislation 

creating the area, shall be designated Class U but may be redesignated as provided in 40 C.F.R. 51.166(g). 

(3) The visibility protection requirements of this administrative 

regulaf1on shall apply only to sources that may impact a mandatory 

Class I federal area. 

(4) The following areas may be redesignated only as Class I or 

II: 

(a) An area that as of August 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 or seashore; and 

(b) A national park or national wilderness area established 

after August 7, 1 g77, which exceeds 10,000 acres 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 exclude 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 before the effective dale of the order; 

(b) Concentrations attributable to the increase in emissions 

from sources that 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 of the plan; 

(c) Concentrations of particulate matter attributable to the increase in emissions from construction or other temporary emission-related activities of new 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 of the U.S. EPA as meeting the criteria established in 

subsection (3) of this section. 

(2)(a) Exclusion of concentrations shall not apply more than 

five (5) years after the effective date of the order to which subsection (1)(a) of this section refers or the curtailment plan to which 

subsection (1 )(b) of this 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) effective dates. 

(3) For excluding concentrations pursuant to subsection {1)(d) 

of this section: 

{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 unless a longer time is approved by the U.S. EPA; 

(b) The time period for excluding certain contributions in accordance with paragraph (a) of this subsection shall not be renewable; 

(c) An emissions increase .from a stationary source shall not 

occur that will: 

·125. 
VOlUME 39, NUMBER 1 -JUlY 1, 2012 

1. Impact a Class t area or an area in which an applicable increment is known to be violated; or 

2. Cause or contribute to the violation of a national ambient air 

quality 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 of emissions limitation required for control of an air pollutant under this 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 dispersion 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 of this administrative regulation shall not apply to a particular major stationary 

source or major modification, if: 

(a) The owner or operator: 

1. Obtained the necessary federal, state, and local preconstruction approval effective before September 22, 1982; 

2. Commenced construction before September 22, 1982; and 

3. Did not discontinue construction for a period of eighteen (18) 

months or more. 

(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 of the Commonwealth of Kentucky requests 

that it be exempt from those requirements. 

(c) The source or modification is a major stationary source or 

major modification only if fugitive 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 

any of the following categories: 

1. Coal cleaning plants with thennal dryers; 

2. Kraft pulp mills; 

3. Portland cement plants; 

4. Primary zinc smelters; 

5. Iron and steel mills; 

6. Primary aluminum ore reduction plants; 

7. Primary copper smelters; 

8. Municipal incinerators capable of charging more than 250 

tons of refuse per day; 

9. Hydrofluoric, sulfuric, or nitric acid 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. Secondary metal 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 more than 250 million BTUs per hour heat input; 

22. Petroleum storage and transfer units with a total storage 

capacity exceeding 300,000 barrels; 

23. Taconite ore processing plants; 

24. Glass fiber processing 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 under 42 U.S.C. 7411 or 7412. 

(d) The source or modiftcation is a portable stationary source 

that has previously received a permit under this administrative 

regulation; and 

1. The owner or operator proposes to relocate the source, and 

the emissions of the source at the new location will be temporary; 

2. The emissions from the source will not exceed its allowable 

emissions; 

3. The emissions from the source will 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 prior to the relocation identifying the proposed new location and the probable duration of operation at the new location. 

b. Notice shall be given to the cabinet not less than ten (10) 

days in advance of the proposed relocation unless a different time 

duration is previously approved by the cabinet pursuant to 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 owner or operator: 

1. Obtained all final federal, state, and local preconstruction 

approvals or permits necessary under the applicable SIP before 

July 31, 1987; 

2. Commenced construction wfthin eighteen (18) months after 

July 31, 1987; and 

3. Did not discontinue construction for a period of eighteen (18) 

months 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 owner or operator submitted an application 

for a permit under the applicable permit program before that date; 

"' 2. The cabinet subsequently determined that the application as 

submitted was complete with respect to 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 non attainment pursuant to 42 u.s.c. 7407(d){1 )(A){i). 

(3) Sections 9, 11, and 13 of this administrative regulation shall 

not apply to 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 a Class I area or an area where an applicable increment is known to be violated; and 

(b) Will be temporary. 

(4) Sections 9, 11, and 13 of this 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, if the 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 ·or the net emissions increase of the pollutant from 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) of this subsection, or the pollutant is not listed in the table. 

(6) Permitting requirements equivalent to Section 9(2) of this 

administrative regulation shall not apply to a stationary source or 

modification for a maximum allowable increase for nitrogen oxldes, 

if: 

(a) The owner or operator of the source or modification submitted an application for a permit or permit revision under the applicable permit program before the date on which the provisions embodying the maximum allowable increase took effect in the Kentucky SIP; and 

(b) The cabinet subsequently determined that the application 

as submitted before that date was complete. 

(7) Permitting requirements equivalent to Section 10(2) of this 

administrative regulation shall not apply to a stationary source or 

modification for a maximum allowable increase for PM1o, if: 

{a) The owner or operator of the source or modification submttted an application for a penni! under the applicable permit program 

before the provisions embodying the maximum allowable increases 

for PM,o took effect as part of Kentucky's SIP; and 

{b) The cabinet subsequently determined that the application 

as submitted before that date was complete. 

{8){a) The cabinet may detennine that the requirements for air 

quality monitoring of PM10 in Section 11 of this administrative regulation shall not apply to a particular source or modification, it 

1. The owner or operator of the source or modification submitted an application for a permit under this section on or before June 

1, 1988; and 

2. The cabinet subsequently determines that the 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,0 in 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 

later than 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 may not to be less than four (4) months, the data that 

Section 11 of this administrative regulation requires shall have 

been gathered over that shorter period. 

(9) If the 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 PM10 took effect and the 

cabinet subsequently determined that the application as submitted 

before that date was complete, the requirements of Section 9(2) of 

this administrative regulation shall: 

(a) Not apply to a stationary source or modification for a maximum allowable increase for PM10; and 

(b) Apply for the maximum allowable increases for TSP as in 

effect on the day the application was 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 pursuant to 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 major modification shall apply BACT: 

(a) For each regulated NSR pollutant that results in a significant net emissions increase at the source; and 

(b) For each proposed emissions unit at which a net emissions 

increase in the pollutant occurs as a result of a physical change or 

change in the method of operation 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 prior to commencement of construction of each independent phase of the project; and 

(b) If requested by the cabinet, the owner or operator of the 

applicable stationary source shall demonstrate the adequacy of a 

previous BACT detennination for the source. 

Section 9. Source Impact Analysis. ill The 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 

contribute to air pollution 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 any area 

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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, 

Appendix W, "Guideline on Air Quality Models" Appendix A. 

(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 of a modified or substitute 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 for the 

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 Quality Analysis. (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 ambient air quality in the area that the major stationary 

source or major modification will affect for each of the following: 

1. For a source, each pollutant that the source will have the 

potential to emil in a significant amount; 

2. For a modification, each pollutant that the modification will 

result in a significant net emissions 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 necessary to assess ambient air quality 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 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 least the year preceding receipt of the 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 

than 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 of 40 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) For air quality monitoring of PM10 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 ambient concentrations of PM10 using the data collected 

by that approved monitoring method in accordance with estimating 

procedures approved by the cabinet pursuant to 40 C.F.R Part 58, 

Appendix A. 

(2) Postconstruction monitoring. After construction of a major 

stationary source or major modification, the owner or operator shall 

conduct ambient monitoring that the cabinet determines is necessary to determine the effect emissions from the stationary source 

or modification may have, or are having, on air quality 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 of 

40 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 necessary to perform an analysis or make 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 of the source or modification, including 

specifications and drawings showing its design and plant layout; 

(b) A detailed schedule for construction of the 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 air quality impacts and the nature and extent of general 

commercial, residential, industrial, and other growth that has occurred since August?, 1977, in the area the source or modification 

will affect. 

Section 13. Additional Impact Analysis. (1) The owner or operator shall provide an analysis of the impairment to visibility, soils, 

and vegetation that will occur as a result of: 

(a) The source or modification; 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 of the impact on vegetation not having significant commercial or recreational 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 associated with the 

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 pursuant to 40 C.F.R. 51.166. 

(c) Visibility monitoring required by the cabinet in a Class I area 

shall be approved by the federal 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 promptly after receiving the permit application. The 

notice shall: 

1. Include a copy of all information relevant to the permit application; 

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 construct; and 

3. Include an analysis of the proposed source'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 available to them the materials used in making 

that determination, promptly after the 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 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, 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) of this 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) If the cabinet finds the analysis does not demonstrate to 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 the explanation may be obtained. 

(4) Denial; impact on air quality related values. 

(a) The federal land manager of lands 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 

for a Class I area. 

(b) If the cabinet concurs with the demonstration specified in 

paragraph (a) of this subsection, the cabinet shall not issue the 

permit or permit revision. 

(5) Class I variances. 

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VOLUME 39, NUMBER 1- JULY 1, 2012 

(a) The owner or operator of a proposed source or modification 

may demonstrate to the federal land manager that the 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 change in air quality resulting from 

emissions from the source or modification will cause or contribute 

to concentrations that will exceed the maximUm allowable increases for a Class I area as specified in Section 2(1) of this administrative 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, PM10[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) of this subsection and certifies accordingly; and 

2. The other applicable requirements of this administrative 

regulation are met. 

(6) SUfur dioxide var"1ance by governor with federal land manager's concurrence. 

(a} The owner or operator of a proposed source or modification, which cannot be approved under subsection (5} of this 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 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 of the 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, 

grant a variance from the maximum allowable increase. 

(c) If a variance is granted, the cabinet shall issue a permit or 

permit revision to the source or modification under the requirements of 401 KAR Chapter 52 if the other applicable requirements 

of this administrative regulation are met. 

(7} Variance by the governor with the Presidenrs concurrence. 

(a} If the Governor of the Commonwealth of Kentucky recommends a variance in which the federal land manager does not 

concur, the recommendations of the governor and the federal land 

manager shall be transmitted to the President of the United States 

of America. 

(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 of this 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) of this section, the source or modification shall comply with the emissions limitations necessary to assure that: 

(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 concentrations that will exceed the maximum allowable increases over the 

baseline concentration as specified in the followina table; and 

Maximum Allowable Increase 

(Micrograms per cubic meter) 

Terrain areas 

Period of E 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 of exposure of twenty-four (24) hours or less for more 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 under the terms of an approval 

to construct. 

(2)(a) Approval to construct shall become invalid if construction: 

1. ls not commenced within eighteen (18) months after receipt 

of the approval: 

2. Is discontinued for a period of eighteen (18) months or more; 

oc 

3. Is not completed within a reasonable time. 

(b) The cabinet may extend the eighteen (18) month period 

upon a satisfactory demonstration that an extension is justified. 

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 of the projected and approved commencement date. 

(3) Approval to construct shall not relieve an owner or operator 

of the responsibility to comply fully with 401 KAR Chapters 50 to 68 

and other requirements of local, staie, or federal 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 that was established after August 7, 

1980, on the capacity of the source or modifiCation to emit a pollutant, Sections 8 to 16 of this 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 of this subsection shall apply to projects 

at existing emissions units at a major stationary source other than 

projects at a source with 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 elects to use the 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 

document and maintain a record of the following information: 

1. A description of the project; 

2. Identification of the emissions units for which emissions of a 

regulated NSR pollutant could be affected by the 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. 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) of this subsection, 

the owner or operator shall: 

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 per year on a calendar year basis for: 

a. Five (5) years following resumption of regular operations 

after the 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) If the 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 to the 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 

after the end of each 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. For an existing unit other than· an EUSGU, the owner or 

operator shall submit a 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 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 after the 

end of the year during which records are required to be generated 

under paragraph (b) of this subsection and shall contain the following: 

a. The name, address, and telephone number of the major 

stationary source; 

b. The annual emissions as calculated pursuant to paragraph 

(c) of this subsection; 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 

cabinet or the general public pursuant to 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 of an environmental impact statement 

under 42 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 under that Act and under 42 U.S.C. 7609 to the 

maximum extent feasible 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 request that the cabinet approve a system 

of innovative control technology. 

(2) The cabinet may, with the consent of the governors of other 

affected states, determine that the source or modification may 

employ a system of innovative control technology if: 

(a) The proposed control system will not cause or contribute to 

an unreasonable risk to public health, welfare, or safety in its operation or function; 

(b) The owner or operator agrees to achieve a level of continuous emissions reduction equivalent to that which 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 the time of start-up or seven (7) years from 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 

meet on the date specified by the cabinet; 

(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 air quality standard; or 

2. Impact an area in which an applicable increment is known to 

be violated; 

(e) Section 14 of this administrative regulation relating to Class 

I areas has been satisfied for all periods during the life of the 

source or modification; and 

(f) All other applicable requirements including those for public 

participation have been met. 

(3) The cabinet shall withdraw approval to employ a system of 

innovative control technology 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 decides that the proposed system is unlikely to 

achieve the required level of control or to protect the public health, 

welfare, or safety. 

(4) If a source or modification fails to meet the required level of 

continuous emissions reduction wrthin the specified time period or 

the approval is withdrawn in accordance wtth subsection (3) of this 

section, the cabinet may allow the source or modification up to an 

additional three (3) years to meet the requirement for the application of BACT through use of a demonstrated system of control. 

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 

may request that the cabinet rescind the applicable conditions. 

(b) An owner or operator of a stationary source or modification 

who holds a permit for the source or modification that was issued 

under this 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 of the permit. 

(2) The cabinet shall rescind a permit condition if requested 

and if the applicant can demonstrate to the satisfaction of the cabinet that this administrative regulation does not apply to the source 

or modification or to a portion of the source or modification. 

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

this section. (1) General provisions. 

{a) An owner or operator may execute a project without triggering major NSR, if the 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 of Section 16(4) of this 

administrative regulation concerning restrictions on relaxing enforceable emission limitations that a major stationary source used 

to avoid applicability of the major NSR program. 

(b) Except as provided under subparagraph (1)(a)3 of this 

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 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 their potential to emit; 

(b) Identification of the federal and state applicable requirements, emissions limitations, and work practice requirements that 

apply to 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 procedures the owner or operator 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) of this 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 of this 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 stationary source. 

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VOLUME 39, NUMBER 1- JULY 1, 2012 

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 of the monthly emissions from each 

emissions unit under the PAL for the previous twelve (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 of the preceding monthly emissions from the PAL effective 

date for each emissions unit under the PAL is less than the PAL. 

(b) The PAL shall be established in a PAL penni! that: 

1. Meets the public participation requirements in subsection (4) 

of this section; and 

2. Contains all the requirements of subsection (6) of this seclion. 

(c) A PAL shall include fugitive emissions, to the extent quantifiable, from all emissions units that emit or have the potential to 

emit the PAL pollutant at the major stationary source. 

(d) Each PAL shall regulate emissions of only 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 comply with 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. 

(g) Emissions reductions of a PAL pollutant that occur during 

the PAL effective period shall not be creditable as decreases for 

offsets under 40 C.F.R 51.165(a)(3){ii), unless: 

1. The level of the PAL is reduced by the amount of the emissions reductions; and 

2. The reductions will be creditable in the absence of the 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 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 before taking final action on 

a PAL penni! or penni! revision. 

{5) Setting the ten (1 D) year PAL level. 

(a) The PAL level for a major stationary source shall be the 

sum of the baseline actual emissions of the 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 KAR 51:001, Section 1 or under 42 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 emissions for all existing emissions units. 

(c) A different consecutive twenty-four (24) month period may 

be used for each 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 units for which actual construction began 

after the twenty-four (24) month period shall be added to the PAL 

level in an amount equal to the potential to emit of the 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 of prior to issuance oHhe PAL penn it. 

{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 per year, 

{b) The PAL permit effective date and the expiration date of the 

PAL or PAL effective period; 

(c) Specification in the PAL pell11il that if a major stationary 

source owner or operator applies 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 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) of this 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) of this section; 

(g) A requirement that the major stationary source owner or 

operator shall monitor all emissions units in accordance with the 

provis'lons ·m subsection (12) of this section·, 

(h) A requirement that the owner or operator shall retain the 

records required under subsection (12) of this section on site. Records may be retained in an electronic foll11at; 

(i) A requirement for the owner or operator to submit the reports required under subsection (13) of this section by the required 

deadlines; and 

(j) Any requirements necessary to implement and enforce the 

PAL. 

(7) PAL effective period and reopening of a PAL pell11il. 

(a) A PAL effective period shall be ten (10) years. 

(b) The cabinet shall reopen a PAL pell11it to: 

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 if the owner or operator of the major stationary source creates creditable emissions reductions for use as 

offsets under 40 C.F.R 51.165(a)(3)(ii); or 

4. Revise the PAL to reflect an increase in the PAL according 

to subsection (10) of this 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 requirements with compliance dates after the PAL effective date; 

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. Reduce the PAL if the cabinet detell11ines that a reduction is 

necessary to avoid causing or contributing to: 

a. A National Ambient Air Quality Standard (NAAQS) or PSD 

increment violation; 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 manager and for which 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 

errors that do 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 of emissions units, that 

existed under the PAL shall comply with an allowable emiss'1ons 

limitations under a revised pell11it 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 of emissions units, by distributing the PAL allowable emissions for the major stationary source 

among each of the emissions units that existed under the 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 if the PAL has been adjusted. 

2. The cabinet shall decide the date and procedure the owner 

or operator shall use to distribute the PAL allowable emissions. 

3. The cabinet shall 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, as the 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 at the major stationary source shall be 

subject to major NSR requirements. 

(e) The major stationary source owner or operator shall continue to comply with any slate or federal 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 of a PAL 

(a) Public participation requirements. 

1. The cabinet shall follow the public participation procedures 

specified in subsection (4) of this section in approving a request to 

renew a PAL for a major stationary source. 

2. The cabinet shall provide a written rationale for the proposed 

PAL level for public review and comment. 

3. Any person may propose a PAL level for the 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 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 

permit shall not expire before the permit is renewed. 

3. If a 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 

permit shall contain: 

- 1. The information required in subsection (2) of this section; 

2. A proposed PAL level; 

3. The sum of the potential to emil of ail emissions units under 

the PAL with supporting documentation; and 

4. Any other information the owner or operator wishes the 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 below the 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 potential to emit. 

3. If the sum of the 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 

may set the PAL at a different level if the level is determined to be: 

a. More representative of the source's baseline actual emissions: or 

b. Appropriate considering the following factors: 

(i) A1r quality needs; 

(ii) Advances in control technology; 

(iii) Anticipated economic growth in the area of the source; 

(iv) The cabinet's goal of promoting voluntary emissions reductions; 

(v) Cost effective emissions control alternatives; and 

{vi) Other factors 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 of subsection (10) of this section. 

(e) The PAL shall be adjusted in conjunction with PAL permit 

renewal or Trtle V permit renewal, whichever comes first, 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 not already adjusted for the 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 of this 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 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) of this subsection, 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 that was established within the 

preceding len (1 0) 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 of BACT or LAER for 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 begins to emit the 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 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 subject to the 

PAL or shall continue to be subject to the PAL 

(c) Calculation of increased PAL The cabinet shall calculate 

the new PAL as the sum of the allowable emissions for each modified or new emissions unit, plus the sum of the baseline actual 

emissions of the significant and major emissions units assuming 

appf1cation of BACT equivalent controls, plus the sum of the baseline actual emissions of the small emissions units. 

{d) Public notice requirement. The public notice requirements 

of subsection (4) of this 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 by the cabinet pursuant to this subsection; and 

b. Based on sound science and meet generally acceptable 

scientific procedures for data quality and manipulation; 

3. The data generated by a monitoring system shall meet minimum legal requirements for admissibility in a judicial 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) of this subsection; 

5. The cabinet may approve an alternative monitoring approach that meets the requirements of subparagraphs 1 to 3 of this 

paragraph; and 

6. Failure to use a monitoring system that meets the requirements of this section shall render the PAL invalid. 

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VOLUME 39, NUMBER 1 -JULY 1, 2012 

{b) Minimum performance requirements for approved monitoring approaches. If conducted in accordance with the minimum 

requirements in paragraphs (c) to (i) of this 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 balance calculations to monitor PAL pollutant emissions from 

activities using coatings or solvents shall: 

1. Provide a demonstrated means of validating. the published 

content of the PAL pollutant contained in or created by all materials 

used in or at the emissions unit; 

2. If the PAL pollutant cannot be accounted for in the process, 

assume that the 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. If the vendor of the material or fuel 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 

content within the range. 

{d) GEMS. An owner or operator using GEMS to monitor PAL 

pollutant emissions shall meet the following requirements: 

1. GEMS shall comply with applicable performance specifications found in 40 G.F.R. Part 60, Appendix B; and 

2. GEMS shall sample, analyze, and record data at least every 

fifteen (15) minutes while the emissions unit is operating. 

(e) GPMS or PEMS. An owner or operator using GPMS or 

PEMS to monitor PAL pollutant emissions shall meet the 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 of the emissions unit; and 

2. While the unit is operating, each GPMS or PEMS shall sample, analyze, and record data at least every fifteen (15) minutes, or 

at another less frequent interval if approved 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, if appropriate, to account for the degree of uncertainty or limitations in the factors' 

development; 

2. The emissions unit shall operate within the designated range 

of use for the emission factor, if applicable; 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 if the cabinet determines that the 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) If an owner or operator of an 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 default values for determining compliance with the 

PAL based on the highest potential emissions reasonably estimated at operating 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 or operator to retain 

a copy of all records necessary to determine compliance with any 

requirement of this section and of the PAL, including a determination of each emissions unit's twelve (12) month rolling total emissions for five (5) years from the date of the determination. 

(b) The PAL permit shall require an owner or operator to retain 

a copy of the following records for the duration of the PAL effective 

period plus five (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 

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 accordance with 401 KAR 

52:020, 52:030, and 52:040 that meet the following requirements: 

(a) Semiannual report. The semiannual report shall be submitted to the cabinet within thirty (30) days of the 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 

pursuant to subsection {12)(a) of this 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 to the major 

stationary 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 of permanent or temporary shutdown of any 

monitoring system including: 

a. The reason for the shutdown; 

b. The anticipated date that the 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 of the 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 pursuant to 40 G.F.R. 70.6(a)(3)(iii)(B) 

shall satisfy the 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 the following 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 by the responsible official, as defined by 

401 KAR 51:001, Section 1 (210), certifying the truth, accuracy, and 

completeness of the 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 of the test or method. 

(14) Transition requirements. 

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VOlUME 39, NUMBER 1 -JUlY 1, 2012 

(a) After the 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 PAL that complies with the 

requirements of this section. 

(b) The cabinet may supersede a PAL that was established 

before August 10, 2006, with a different PAL if the new PAL complies with the requirements of this administrative regulation. 

LEONARD K. PETERS, Secretary 

APPROVED BY AGENCY: June 13,2012 

FILED WITH 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 

July 24, 2012, at 10:00 a.m. (local time) 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 of their intent to attend. If no notification of intent to attend 

the hearing is received by that date, the hearing may be canceled. 

This hearing is open to the public. Any person who wishes to be 

heard shall be given an opportunity to comment on the proposed 

administrative regulation. If you do not wish to be heard at the 

public hearing, you may submit written ·comments on the proposed 

administrative regulation. Written comments shall be accepted until 

close of business on 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, 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 IMPACT ANALYSIS AND TIERING STATEMENT 

Contact person: Laura Lund 

(1) Provide a brief summary 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 

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 224.10-1 00(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) If this is an amendment to an existing administrative regulation, provide a brief summary of: 

(a) How the amendment will change this existing administrative 

regulation: This amendment 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 levels for 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 of the 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. 

(d) How the amendment will 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 by this administrative regulation. 

(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: 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 of the 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 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.s 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 air quality tllroughout the 

Commonwealth. 

(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation: 

(a) Initially: The Cabinet will not incur any additional costs for 

the implementation of this 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 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 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, 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 in an area 

designated attainment or unclassiflable. 

·134. 
VOLUME 39, NUMBER 1 -JULY 1, 2012 

FEDERAL MANDATE ANALYSIS 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 approvabllity. 42 U.S.C. 7410(a){1) requires Kentucky to adopt and submit a 

J)an providing for the implementation, ma'mtenance, and enforcement of a NAAQS. 

2. State compliance standards. The stale compliance standards are found in KRS 224.10-1 00(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 into the 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, or school districts)? Yes. 

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

(including cities, counties, fire departments, or school districts) will 

be impacted by this administrative regulation? 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 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), (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 

the first full year the administrative regulation is to be in effect. 

(a) How much revenue will this administrative regulation generate for the state or local government {including cities, counties, 

fire departments, or school districts) for the first year? This administrative regulation 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 cost to administer this program for the first 

year? The Cabinet's existing operating budget is the source of 

funding for the implementation of this program. 

(d) How much will it cost to administer this program for subsequent years? There will be no additional costs for administering 

this program in subsequent years. 

Note: If specific dollar estimates 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. 

other Explanation: There is no further explanation. 

ENERGY AND ENVIRONMENT CABINET 

Department for Environmental Protection 

Division for Air Quality 

(Amendment) 

401 KAR 51:052. Review of new sources in or impacting 

upon nonattainment areas. 

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 or modification of stationary sources within, or impacting upon, areas where the national ambient air quality standards 

have not been attained. The provisions of this 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 

under 42 U.S. C. 7407(d)(1)(A)(i). {1) The provisions of this administrative regulation relating to visibility protection shall also apply to 

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) 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) of this subsection. 

(a) Prior to beginning actual construction, the owner or operator shall first determine if a significant emissions Increase will occur 

for the applicable type of unit being constructed or modified according to subparagraphs 1 to 3 of this 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 or exceeds the significant amount for that 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 if the sum 

of the potential to emit from each new emissions unit following 

completion of the project equals or exceeds the significant amount 

for that 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 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 applicable test in paragraph (a) of this 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). 

(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 of Section 11 of this administrative regulation. 

Section 2. Initial Screening Analyses and Determination of 

Applicable Requirements. {1) Reyiew of all sources for emissions 

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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 if the 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 

construct shall be denied. 

(2) Review of specified sources of air quality impact. 

(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 

attainment area as part of an approved control strategy by the new 

source start-up date, offsets shall not be required if the new source 

will not cause a new violation. 

(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 plants with thermal dryers; 

(b) Kraft pulp mills; 

(c) Portland cement plants; 

(d) Primary zinc smelters; 

(e) Iron and steel mills; 

(f) Primary aluminum ore reduction plants; 

(g) Primary copper smelters; 

(h) Municipal incinerators capable of charging more than 250 

tons of refuse per day; 

(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 black plants, furnace process; 

(p) Primary lead smelters; 

(q) Fuel conversion plants; 

(r) Sintering plants; 

(s) Secondary metal production plants; 

(I) Chemical process plants, except ethanol production facilities 

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 more than 250 million BTUs per hour heat input; 

(v) Petroleum storage and transfer units with a total storage 

capacity exceeding 300,000 barrels; 

(w) Taconite ore processing plants; 

(x) Glass fiber processing plants; 

(y) Charcoal production plants: 

(z) Fossil fuel-fired steam electric plants of more than 250 million BTUs per hour heat input; or 

(aa) Another stationary source category that, as of August 7 

1980, is being regulated under 42 U.S.C. 7411 or 7412. ' 

Section 3. Sources Locating in Designated Attainment or 

Unclassifiable Areas that Will Cause or Contribute to a Violation 

of a 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 to 42 U.S.C. 7407{d)(1 )(A)(ii) or (iii), if the 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 1.0 J.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 ~/m3 

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) of this 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 new major 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. Part 51, Appendix 

W, 'Guideline on Air Quality 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 atmospheric simulation model assuming all the nitric 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 available to 

account for 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 pursuant to 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 

air quality standard shall be made as of the start-up date. 

(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 a design, operational, or equipment standard; or 

3. Control existing sources so that the new source will not 

cause a violation of a national ambient air quality standard. 

(b) The new emissions limitations for the new and existing 

sources affected shall be state and federally enforceable in accordance with Section 6 of this 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 pursuant to 42 U.S.C. 7407(d)(1 )(A)(i) for a 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) for the 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 compliance schedule. 

{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 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 ratio of total emissions reductions of VOCs or NOx to 

total increased emissions of the same air pollutant shall be at least 

the ratio indicated for the following ozone nonattainment area classifications: 

1. For marginal nonattainment areas, at least 1.1 to 1; 

2. For moderate nonattainment areas, at least 1.15 to 1; 

3. For serious non attainment areas, at least 1.2 to 1; 

4. For severe non attainment areas, at least 1.3 to 1; and 

5. For extreme nonattainment areas, at least 1.5 to 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) of this section and Section 5(3)(e) of this administrative regulation shall be adequate to 

meet this condition. 

(5) The proposed major stationary source or major modification 

shall include in the application for a construction permit an analysis 

of the alternative sites, sizes, production processes, and environmental control techniques for the proposed source, which demonstrates that benefits of the proposed source significantly outweigh 

the environmental and social costs imposed as a result of its location, construction, or 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 baseline for emissions offsets: 

(a) The emissions limitations in effect when the application to 

construct or modify a source is filed; or 

(b) The actual emissions of the source from 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 that 

source or source category. 

(2) Credit for emissions offsets. Credit for emissions offset 

purposes may be allowed for existing control if the existing control 

goes beyond the control required under 401 KAR Chapters 50 to 

65 and applicable federal regulations. 

(3) General provisions for calculating offset values. 

(a) Offset calculations shall be made on a pound-per-hour 

basis if all facilities involved in the emissions offset calculations are 

operating at their maximum or allowed 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 for the previous two 

(2) year period. 

(c) If the 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 

below the 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 emissions of an air pollutant by obtaining emissions reductions of the air pollutant from: 

1. The same source or other sources in the same nonattainment area; or 

2. A source in another nonattainment area if: 

a. The other area has an equal or higher nonattainment classification thim the area in which the source is located; and 

b. Emissions from the other area contribute to a violation of the 

national ambient air quality standard in the nonattainment area in 

which the source is located. 

(4) Calculating offsets if an applicable emissions limitation 

does not exist. If the 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 existing fuel 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 of the cabinet for the type of fuel being burned when the new major source or 

major modification application is filed. 

(b) If the 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 emissions offset credit. 

(c) If the existing source commits to switch to a cleaner fuel 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 if the source switches back to a dirtier fuel 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 or curta1ment. 

(b) Emissions reductions achieved by shutting down an existing emissions unit or curtailing production or operating 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 base year for the SIP planning process. 

(i) The cabinet may consider a prior shutdown or curtailment to 

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 before August 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 permit application is filed; or 

b. The applicant establishes that the proposed new emissions 

unit is a replacement for the shutdown or curtailed emissions unit, 

and the emissions reductions achieved by the shutdown or curtailment 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, or trichlorofluoroethane. 

(8) Banking of emissions offset credit. 

(a) New sources obtaining permits by applying offsets after the 

effective date of this administrative regulation may bank offsets 

that exceed the requirements of Section 5(3) of this 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 -
VOLUME 39, NUMBER 1- JULY 1, 2012 

even if the offsets are applied immediately to a new source 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) Offset credit for meeting NSPS or NESHAPS. 

(a) If a 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 by the cabinet, the more 

stringent limitation shall be used as the baseline for detennining 

credit for emissions offsets. 

{b) The difference in emissions between NSPS or NESHAPS 

and other emissions limitations shall not be used as offset credit. 

Section 6. Administrative Procedures for 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 

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 necessary emissions offsets may be proposed by the 

owner of the proposed source or by the cabinet. 

(2) Source initiated emissions offsets. 

(a) The owner or operator of a source may propose: 

1. Internal emissions offsets, which involve reductions from 

sources controlled 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 Section 4(3) of this administrative regulation. 

(b) An internal emissions offset shall be included and made 

enforceable as a condition of the source'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 enforceable by the cabinet and the U.S. EPA. 

(3) Cabinet initiated emissions offsets. 

(a) The cabinet may commit to reducing emissions from mobile 

sources and other existing sources to provide a net air quality benefit in the impact area of a proposed new source to accommodate 

the proposed new source. 

(b) This emissions reduction commitment shall be reflected in 

the emissions limitation requirements for the new and existing 

sources as required by this section. 

Section 7. Source Obligation. (1) An owner or operator of a 

source or modification subject to this administrative regulation shall 

construct and operate the source or modffication in accordance 

with the application submitted to the cabinet under this administrative regulation and 401 KAR 52:020 or under the terms of an approval to construct. 

(2)(a) Approval to construct shall become invalid if construction: 

1. Is not commenced within eighteen (18) months after receipt 

of the approval; 

2. Is discontinued for a period of eighteen (18) months or more; 

oc 

3. Is not completed within a reasonable time. 

(b) The cabinet may extend the eighteen (18) month period 

upon a satisfactory demonstration that an extension is justified. 

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) months of the projected and approved commencement date. 

{3) Approval to construct shall not relieve an owner or operator 

of the responsibility to comply fully with applicable provisions of 

401 KAR Chapters 50 to 65 and other applicable requirements 

under local, state, or federal 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 after August 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 not yet commenced on the source or modification. 

(5)(a) The provisions of this subsection shall apply to projects 

at existing emissions units at a major stationary source other than 

projects at a source with 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 

document and maintain a record of the following infonnation: 

1. A description of the project; 

2. Identification of the emissions units for which emissions of a 

regulated NSR pollutant may be affected by the project; and 

3. A description of the applicability test used to detennine that 

the project is not a major modification for any regulated NSR pollutant, including: 

a. Baseline actual 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) of this subsection, 

the owner or operator shall: 

1. Monitor the emissions of any regulated NSR pollutant that 

could increase as a result of the project and that are emitted by an 

emissions unit identified in paragraph (a)2 of this subsection; and 

2. Calculate and maintain a record of the annual emissions, in 

tons per year on a calendar year basis, for. 

e. Five (5) years following resumption of regular operations 

after the change; or 

b. Ten (10) years if the project increases the design capacity of 

or potential to emit for that regulated NSR pollutant at the emissions unit. 

(d) If the 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; 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 

after the end of each year during which records are required to be 

generated under paragraph (b) of this 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 

operator shall submit a report to the cabinet if: 

a. The annual emissions, in tons per year, from a project identified in paragraph (a) of this 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 cabinet within sixty {60) 

days after the end of the year during which records are required to 

be generated under paragraph (b) of this subsection and shall 

contain the following: 

a. The name, address, and telephone number of the major 

stationary source; 

b. The annual emissions as calculated pursuant to paragraph 

(c) of this subsection; and 

c. Any other infonnation 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 this sub-

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VOLUME 39, NUMBER 1- JULY 1, 2012 

section available for review upon request for inspection by the 

cabinet or the general public pursuant to 401 KAR 52:100. 

Section 8. Penn it Condition Rescission. (1) An owner or operalor holding a permit for a stationary source or modification that was 

issued pursuant to 401 KAR 51:050 or 51:051E may request that 

the cabinet rescind the applicable conditions. 

(2) The cabinet shall rescind a permit condition if the owner or 

operator: 

(a) Requests and demonstrates to the satisfaction of the cabinet that this administrative regulation does not apply to the source 

or modification or to a portion of the source or modification if construction will have commenced after September 22, 1982; and 

(b) Demonstrates that the rescission will not violate the requirements of Sections 4(3) and 7 of this administrative regulation. 

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) National wilderness areas and national memorial parks 

which exceed 5,000 acres in size; and 

(c) National parks that exceed 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 of this administrative 

regulation shall apply only to sources that may impact a mandatory 

Class I federal area. 

(4) The following 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 

lakeshore or seashore; and 

(b) A national park or national wilderness area established 

after August 7, 1977, which exceeds 10,000 acres in size. 

Section 10. Protection of Visibility. (1} New source 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 stationary source or modification shall meet the requirements of this 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 under 42 U.S. C. 7407(d)(1 }(A)(i) 

and potentially have an impact on visibility in a Class 1 area. 

(c) This section shall apply to a major stationary source or 

major modification for each pollutant subject to regulation under 42 

U.S.C. 7401 to 7626 that it will emit, except as provided in paragraphs (d) and (e) of this subsection. 

(d) This section shall not apply to a particular major stationary 

source 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 Governor of the Commonwealth requests that it be 

exempt from the requirements of this section; and 

2. The source iS a portable stationary source that has previously received a permit under this section and will be temporarily relocated; and 

(a) The emissions from the source will not exceed the allowable emissions; 

b. The emissions from the source will not impact a 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 less than ten (10) days in advance of the proposed 

relocation unless a different time duration is previously approved 

by the cabinet pursuant to this section. 

(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 of that pollutant from 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 of a 

source shall provide an analysis of the impairment to visibility that 

will occur in a Class I area as a result of the 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 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 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 major stationary source or major modification that may affect visibility in a Class I area. The notification shall: 

1. Include a copy of all information relevant to the permit application; 

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 least sixty {60) days prior to a public hearing on the application for a permit to construct; and 

3. Include an analysis of the proposed source's anticipated 

impacts on visibility in a Class I area. 

(c)1. The cabinet shall consider an analysis by the federal land 

manager, provided within thirty (30) days of the notification and 

analysis required by paragraph (b) of this subsection, that the 17Qposed new major stationary source or major modification may have 

an adverse impact on visibility in a Class I area. 

2. If the cabinet finds that the analysis 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 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 account the geographic extent, intensity, duration, frequency, and time of visibility impairments, and how these factors correlate with the times of visitor use of the Class I area, and the frequency and time of natural conditions that 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 follow the procedures at 40 C.F.R. 52.21 (r), 

effective July 1, 2009, to the extent that the procedures of 401 KAR 

52:100 do not apply. 

(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 manmade air pollution. 

(b) In making the decision to issue a permit, the cabinet shall 

consider: 

1. The costs of compliance; 

2. The time necessary for compliance; 

3. The energy and non-air quality environmental impacts of 

compliance; and 

4. The useful life of the source. 

(6} Monitoring. 

(a) The cabinet may require monitoring of visibility 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 by the U.S. EPA. 

(b) The monitoring method selected shall be determined on a 

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VOLUME 39, NUMBER 1- JULY 1, 2012 

case-by-case basis by the cabinet. 

(c) The cabinet shall not undertake visibility monitoring in a 

Class I area without the approval of the 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 request. 

Section 11. Plant-wide Applicability Limit Provisions. The cabinet 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 owner or operator may execute a project without triggering major NSR, if the 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 of Section 7(4) of this 

administrative regulation concerning restrictions on relaxing enforceable emissions limitations that the major stationary source 

used to avoid applicability of the major NSR 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 

effective date of the PAL. 

(c) The cabinet shall not allow a PAL for VOC or NOx for any 

major stationary source located in an extreme ozone nonattainment area. 

(2) Permit application requirements. The owner or operator of a 

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 their potential to emit; 

(b) Identification of the federal and state applicable requirements, emissions limitations, and work practice requirements that 

apply to each emissions unit; 

(c) Calculations of the baseline actual emissions for the emissions units with 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 a twelve (12) month rolling total for 

each month as required by subsection (12)(a) of this 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 of this 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 stationary source, 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 that the sum of the monthly emissions from each 

emissions unit under the PAL for the previous twelve (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 of the preceding monthly emissions from the PAL effective 

date for each emissions unit under the PAL is less than the PAL; 

(b) The PAL shall be established in a PAL permit that: 

1. Meets the public participation requirements in subsection (4) 

of this section; and 

2. Contains all the requirements of subsection (6) of this section; 

(c) A PAL shall include fugitive emissions, to the extent quantifiable, from all emissions units that emil or have the potential to 

emit the PAL pollutant at the major stationary source; 

(d) Each PAL shall regulate emissions of only 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 comply with 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 of the PAL is reduced by the amount of the emissions reductions; and 

2. The reductions would be creditable in the absence of the 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) 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 before taking final action on 

a PAL permit or permit revision. 

{5) Setting the ten (10) year PAL level. 

(a) The PAL level for a major statlonary source shall be the 

sum of the baseline actual emissions of the 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 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 emissions for all existing emissions units. 

(c) A different consecutive twenty-four (24) month period may 

be used for each 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 units for which actual construction began 

after the twenty-four (24) month period shall be added to the PAL 

level in an amount equal to the potential to emit of the 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 of prior to issuance of the PAL permit. 

(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 per year; 

(b) The PAL permit effective date and the expiration date of the 

PAL or PAL effective period; 

(c) Specification in the PAL permit that if a major stationary 

source owner or operator applies 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 

the cabinet; 

(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) of this 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) of this 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) of this section; 

(h) A requirement that the owner or operator shall retain the 

records required under subsection (12) of this section on site. Records may be retained in an electronic format; 

(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 

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VOLUME 39, NUMBER 1- JULY 1, 2012 

PAL. 

(7) PAL effective period and reopening of a PAL permit. 

{a) A PAL effective period shall be ten (10) years. 

{b) The cabinet shall reopen a PAL permit to: 

1. Correct typographical or calculation errors made in setting 

the PAL; 

2. Reflect a more accurate determination of emissions used to 

establish the PAL; 

3. Reduce the PAL if the owner or operator of the major stationary source creates creditable emissions reductions for use as 

offsets under 40 C.F.R. 51.165(a)(3)(ii); or 

4. Revise the PAL to reflect an increase in the PAL according 

to subsection (10) of this section. 

(c) The cabinet may reopen the PAL permit, during the PAL 

effective period, to: 

1. Reduce the PAL to reflect newly applicable federal requirements with compliance dates after the PAL effective date; 

2. Reduce the PAL consistent with any other 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 if the cabinet determines that a reduction is 

necessary to avoid causing or contributing to: 

a. A National Ambient Air Quality Standard {NAAQS) or PSD 

increment violation; or 

b. An adverse impact on visibility or another air quality related 

value that has been identified for a federal Class 1 area by a federal 

land manager and for which information is available to the general 

public. 

(d) All permit reopenings shall be carried out under the public 

participation requirements of subsection {4) of this section except 

for permit reopenings to correct typographical or calculation of 

errors that do 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 of emissions units, that 

existed under the PAL shall comply with an allowable emissions 

limitation under a 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 of emissions units, by distributing the PAL allowable emissions for the major stationary source 

among each of the emissions units that existed under the 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 if the PAL has been adjusted. 

2. The cabinet shall provide the date and procedure the owner 

or operator shall 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 of emissions 

units, as the cabinet determines is appropriate. 

(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 

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 modification at the major stationary source shall be 

subject to major NSR requirements. 

(e) The major stationary source owner or operator shall continue to comply with any state or federal applicable requirements 

eliminated by the PAL that applied during or before the PAL effective period, except for those emissions limitations established pursuant to Section 7{4) of this administrative regulation. 

- 141 

(9) Renewal of a PAL 

(a) Public participation requirements. 

1. The cabinet shall follow the public participation procedures 

specified in subsection (4) of this section in approving a request to 

renew a PAL for a major stationary source. 

2. The cabinet shall provide a written rationale for the proposed 

PAL level for public review and comment. 

3. Any person may propose a 'PAL level for the 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 of a 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 before the permit is renewed. 

3. If a 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 

permit shall contain: 

1. The information required in subsection (2) of this section; 

2. A proposed PAL level; 

3. The sum of the potential to emit of all emissions units under 

the PAL with supporting documentation; and 

4. Any other information the owner or operator wishes the 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 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 

below the 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, if the emissions level calculated according 

to subsection (5) of this section is equal to or greater than eighty 

(80) percent of the PAL level; or 

3. The cabinet may set the PAL at a level that is determined to 

be: 

a. More representative of the source's baseline actual emissions; or 

b. Appropriate considering the following factors: 

(i) Air quality needs; 

(ii) Advances in control technology; 

(iii) Anticipated economic growth in the area of the source; 

(iv) The cabinet's goal of promoting voluntary emissions reductions; or 

(v) Other factors 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 of subsection (10) of this section. 

{e) The PAL shall be adjusted in conjunction with the PAL 

permit renewal or Title V permit renewal, whichever comes first, 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 not already adjusted for the 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 of this 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 a complete application, which 

shall include: 

1. Identification of the emissions units contributing to the increase in emissions for the PAL major modification; 

2. Demonstration that increased PAL, as calculated in paragraph (c) of this subsection exceeds the 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 by conducting a new BACT analysis when the application is 

submitted, unless the emissions unit is currently required to comply 

with a BACT or lAER requirement that was established within the 

preceding ten (1 0) 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 of BACT or LAER for 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 begins to emit the 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 significant level shall not apply in deciding for which 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 subject to the 

PAL or shall continue to be subject to the PAL. 

(c) Calculation of increased PAL. The cabinet shall calculate 

the new PAL as the sum of the allowable emissions for each 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 of the baseline actual emissions of the small emissions units. 

(d) Public notice requirement. The public notice requirements 

of subsection (4) of this 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 by the cabinet pursuant to this subsection: and 

b. Based on sound science and meet generally-acceptable 

scientific procedures for data quality and manipulation; 

3. The data generated by a monitoring system shall meet minimum legal requirements for admissibllity in a judicial 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) of this subsection; 

5. The cabinet may approve an alternative monitoring approach that meets the requirements of subparagraphs 1 to 3 of this 

paragraph; and 

6. Failure to use a monitoring system that meets the requirements of this section shall render the PAL invalid. 

(b) Minimum performance requirements for approved monitoring approaches. If conducted in accordance with the minimum 

requirements in paragraphs (c) to (i) of this 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. Emissions factors. 

(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 of validating the published 

content of the PAL pollutant contained in or created by all materials 

used in or at the emissions unit; 

2. If it cannot be accounted for in the process, assume that the 

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. If the vendor of the material or fuel 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 determines there is site-specific data 

or a site-specifiC monitoring program to support another pollutant 

content within the range. 

(d) GEMS. An owner or operator using GEMS to monitor PAL 

pollutant emissions shall meet the following requirements: 

1. GEMS shall comply with applicable Performance Specifications found in 40 C.F.R. Part 60, Appendix A; and 

2. GEMS shall sample, analyze, and record data at least every 

fifteen (15) minutes while 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 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 of the emissions unit; and 

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 approved by the cabinet. 

(f) Emissions factors. An owner or operator using emissions 

factors to 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 unit shall operate within the designated range 

of use for the emissions factor, if applicable; 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 factor within six (6) months of PAL permit issuance if the 

cabinet determines that the 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 the periods is 

specified in the PAL permit. 

(h) If an owner or operator of an 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 in paragraphs (c) 

to (g) of this 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 if a correlation cannot be demonstrated; or 

2. If there is not a correlation between monitored parameters 

and the PAL pollutant emissions, determine that operation of the 

emissions unit during operating conditions 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 means 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 or operator to retain 

a copy of all records necessary to determine compliance with any 

requirement of this section and of the PAL, including a determination of each emissions unit's twelve (12) month rolling total emissions for frve (5) years from the dale of the determination. 

(b) The PAL permit shall require an owner or operator to retain 

a copy of the following records for the duration of the PAL effective 

period plus five (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 

and the data used to certify the compliance. 

(13) Reporting and notification requirements. The owner or 

operator shall submit semi-annual monitoring reports and prompt 

deviation reports to the cabinet in accordarice with 401 KAR Chapter 52 that meet the following requirements: 

(a) Semiannual report. The semiannual report shall be submitted to the cabinet within thirty (30) days of the end of each reporting period and shall contain: 

1. The identification of owner and operator and the permit 

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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 

pursuant to subsection {12)(a) of this 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 

stationary 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 of permanent or temporary shutdown of any 

monitoring system including: 

a. The reason for the shutdown; 

b. The anticipated date that the 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 penni!; and 

7. A signed statement by the responsible official, as defined by 

401 KAR 51:001, Section 1 (21 0), certifying the truth, accuracy, and 

completeness of the infonnation 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 pursuant to 40 C.F.R. 70.6(a)(3)(1ii)(B) 

shall satisfy this 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 the following information: 

a. The identification of the owner, the operator, and the penni! 

number; 

. b. The PAL requirement that experienced the deviation or that 

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 of the 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 after completion of the test or method. 

(14) Transition requ·lrements. 

(a) After the U.S. EPA approves the Kentucky SIP revisions for 

the PAL provisions published at 67 Fed. Reg. 80186, December 

31, 2002, the cabinet shall only issue a PAL that complies with the 

requirements of this section. 

(b) The cabinet may supersede a PAL that was established 

before August 10, 2006, with a PAL that complies with the requirements of this administrative regulation. 

LEONARD K. PETERS, Secretary 

APPROVED BY AGENCY: June 13, 2012 

FILED WITH 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 

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 of their intent to attend. If no notification of intent to attend 

the hearing is received by that date, the hearing may be canceled. 

This hearing is open to the public. Any person who wishes to be 

heard shall be given an opportunity to comment on the proposed 

administrative regulation. If you do not wish to be heard at the 

public hearing, you may submit written comments on the proposed 

administrative regulation. Written comments shall be accepted until 

close of business on July 31, 2012. Send written notfficalion 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, 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 IMPACT ANALYSIS AND TIERING STATEMENT 

contact person: laura Lund 

(1) Provide a brief summary of: 

(a) What this 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 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 progress towards cleaner air and attainment of the applicable national 

ambient air quality standards (NAAQS). 

(c) How this 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 provisions for the attainment of the national primary ambient air quality 

standards and reasonable further progress of the 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) How th.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) If this is an amendment to an existing administrative regulation, provide a brief summary of; 

(a) How the amendment will change this existing administrative 

regulation: This amendment 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) 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 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 PM2.~. as 

required by 40 C.F.R. 51.165. 

(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 locales 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 nonatlainment for the 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 or will 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 affected facilities 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 

that the appropriate data and technology are now available and the 

use of the 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 or amendment: 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 of the 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 

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 air quality throughout the Commonwealth. 

(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation: 

(a) Initially: The Cabinet will not incur any additional costs for 

the implementation of this 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 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 implement this 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, nor directly or 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. 

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 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 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 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 NMOS, and 

that the source will install and use control technology that achieves 

the lowest achievable emissions rate (lAER). 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 air quality. 40 C.F.R. 51.165 

is the federal rule that provides authority for the 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 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 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, or school districts)? Yes. 

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

(including cities, counties, fire departments, or school districts) will 

be impacted by this administrative regulation? 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 

the first full year the administrative regulation is to be in effect. 

(a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, 

fire departments, or school districts) for the first year? This administrative regulation 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 cost to administer this program for the first 

year? The Cabinet's existing operating budget continues as the 

source of funding for the implementation of this 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: If specific dollar estimates cannot be dermined, 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. 

Other Explanation: There is no further explanation. 

JUSTICE AND PUBLIC SAFETY CABINET 

Department of Corrections 

(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 

·144.