Title 18, Ch. 2 Arizona Administrative Code

ARTICLE 4. PERMIT REQUIREMENTS FOR NEW MAJOR

SOURCES AND MAJOR MODIFICATIONS TO EXISTING

MAJOR SOURCES

R18-2-401. Definitions

The following definitions apply to this Article:

“Adverse impact on visibility” means visibility impair

ment that interferes with the management, protection.

preservation, or enjoyment of the visitor’s visual experi

ence of a Class I area, as determined according to RI 8-2-

410.

2. “Baseline actual emissions” means the rate of emissions,

in tons per year, of a regulated NSR pollutant, as deter

mined in accordance with subsections (2)(a) through (c).

a. For any existing electric utility steam generating

unit, baseline actual emissions means the average

rate, in tons per year, at which the unit actually emit

ted the pollutant during any consecutive 24-month

period selected by the owner or operator within the

five-year period immediately preceding when the

owner or operator begins actual construction of the

project. The Director shall allow the use of a differ

ent time period upon a determination that it is more

representative of normal source operation.

i. The average rate shall include fugitive ernis

sions to the extent quantifiable, and emissions

associated with startups, shutdowns, and mal

functions.

ii. The average rate shall be adjusted downward to

exclude any non-compliant emissions that

occurred while the source was operating above

any emission limitation that was legally

enforceable during the consecutive 24-month

period.

iii. For a regulated NSR pollutant, when a project

involves multiple emissions units, only one

consecutive 24-month period must be used to

determine the baseline actual emissions for the

emissions units being changed. A different con

secutive 24-month period can be used for each

regulated NSR pollutant,

iv. The average rate shall not be based on any con

secutive 24-month period for which there is

inadequate information for determining annual

emissions, in tons per year, and for adjusting

this amount if required by subsection (2)(a)(ii).

b. For any existing emissions unit (other than an elec

tric utility steam generating unit), baseline actual

emissions means the average rate, in tons per year, at

which the unit actually emitted the pollutant during

any consecutive 24-month period selected by the

owner or operator within the 10-year period immedi

ately preceding either the date the owner or operator

begins actual construction of the project, or the date

a complete permit application is received by the

Administrator for a permit required under 40 CFR

52.21 or by the Director for a permit required under

the state implementation plan, whichever is earlier,

except that the 10-year period shall not include any

period earlier than November 15, 1990.

i. The average rate shall include fugitive emis

sions to the extent quantifiable, and emissions

associated with startups, shutdowns, and mal

functions.

ii. The average rate shall be adjusted downward to

exclude any non-compliant emissions that

occurred while the source was operating above

any emission limitation that was legally

enforceable during the consecutive 24-month

period. This provision applies to excess emis

sions associated with a malfunction.

iii. The average rate shall be adjusted downward to

exclude any emissions that would have

exceeded an emission limitation with which the

major source must currently comply, had such

major source been required to comply with

such limitations during the consecutive 24-

month period. However, if an emission limita

tion is part of a maximum achievable control

technology standard that the Administrator pro

posed or promulgated under 40 CFR 63, the

baseline actual emissions need only be adjusted

ifthe state of Arizona has taken credit for such

emissions reductions in an attainment demon

stration or maintenance plan submitted to the

Administrator pursuant to section II 0(a)(l) of

the Act.

iv. For a regulated NSR pollutant, when a project

involves multiple emissions units, only one

consecutive 24-month period must be used to

determine the baseline actual emissions for all

existing emissions units affected by the project.

A different consecutive 24-month period may

be used for each regulated NSR pollutant.

v. The average rate shall not be based on any con

secutive 24-month period for which there is

inadequate information for determining annual

emissions, in tons per year, and for adjusting

this amount if required by subsection (2)(b)(ii)

or (iii).

c. For a new emissions unit, the baseline actual emis

sions for purposes of determining the emissions

increase that will result from the initial construction

and operation of such unit shall equal zero; and

thereafter, for all other purposes, shall equal the

unit’s potential to emit.

d. For a PAL for a stationary source, the baseline actual

emissions shall be calculated for existing electric

utility steam generating units in accordance with the

procedures in subsection (2)(a), for other existing

emissions units in accordance with the procedures

contained in subsection (2)(b), and for new emis

sions units in accordance with the procedures con

tained in subsection (2)(c).

3. “Basic design parameter” means:

a. Except as provided in subsection (3)(c), for a pro

cess unit at a steam electric generating facility, the

owner or operator may select as its basic design

parameters either maximum hourly heat input and

maximum hourly fuel consumption rate or maxi

Department of Environ ental Quality — Air Pollution Control

tions shall be included in subsequent permit re als unless

modified pursuant to this Section or Article this Chapter.

K. uance of a permit or permit revi& under this Section

shall not ~eve the owner or opera of the responsibility to

comply fully applicable p isions of the SIP and any

other requirements un bc , state, or federal law.

L. Delayed Effective Date. ection shall take effect on the

effective date ofthe inistrato ction approving it as part

of the state impl entation plan.

Historical Note

Ne ection made by final rulemaking at 18 A.A.R.

1542, effective August 7, 2012 (Supp. 12-2).

Supp. 12-2 Page 58 June 30, 2012
ArizonaAdminjsgragjpe Code Title 18, Ch. 2

Department ofEnvironmental Quality — Air Pollution Control

mum hourly electric output rate and maximum

steam flow rate. When establishing fuel consump

tion specifications in terms of weight or volume, the

minimum fuel quality based on Btu content shall be

used for determining the basic design parameters for

a coal-fired electric utility steam generating unit.

b. Except as provided in subsection (3)(c), the basic

design parameters for any process unit that is not at a

steam electric generating facility are maximum rate

of fuel or heat input, maximum rate of material

input, or maximum rate of product output. Combus

tion process units will typically use maximum rate

of fuel input. For sources having multiple end prod

ucts and raw materials, the owner or operator should

consider the primary product or primary raw mate

rial when selecting a basic design parameter.

c. If the owner or operator believes the basic design

parameters in subsections (3)(a) and (b) are not

appropriate for a specific industry or type of process

unit, the owner or operator may propose to the

Director an alternative basic design parameters for

the source’s process unit. Ifthe Director approves of

the use of an alternative basic design parameters, the

Director shall issue a permit that is legally enforce

able that records such basic design parameters and

requires the owner or operator to comply with such

parameters.

d. The owner or operator shall use credible informa

tion, such as results of historic maximum capability

tests, design information from the manufacturer, or

engineering calculations, in establishing the magni

tude ofthe basic design parameters specified in sub

sections (3)(a) and (b).

e. If design information is not available for a process

unit, then the owner or operator shall determine the

process unit’s basic design parameters using the

maximum value achieved by the process unit in the

five-year period immediately preceding the planned

activity.

f. Efficiency of a process unit is not a basic design

parameter.

g. The replacement activity shall not cause the process

unit to exceed any emission limitation, or opera

tional limitation that has the effect of constraining

emissions, that applies to the process unit and that is

legally enforceable.

4. “Complete” means, in reference to an application for a

permit or permit revision, that the application contains all

the information necessary for processing the application.

5. “Dispersion technique” means any technique that

attempts to affect the concentration of a pollutant in the

ambient air by any of the following:

a. Using that portion of a stack that exceeds good engi

neering practice stack height;

b. Varying the rate of emission of a pollutant according

to atmospheric conditions or ambient concentrations

of that pollutant; or

c. Increasing final exhaust gas plume rise by manipu

lating source process parameters, exhaust gas

parameters, stack parameters, or combining exhaust

gases from several existing stacks into one stack; or

other selective handling of exhaust gas streams that

increases the exhaust gas plume rise. This shall not

include any of the following:

i. The reheating of a gas stream, following use of

a pollution control system, for the purpose of

returning the gas to the temperature at which it

was originally discharged from the facility gen

erating the gas stream.

ii. The merging of exhaust gas streams under any

of the following conditions:

(1) The source owner or operator demon

strates that the facility was originally

designed and constructed with the merged

gas streams;

(2) Afier July 18. 1985, the merging is part of

a change in operation at the facility that

includes the installation of pollution con

trols and is accompanied by a net reduc

tion in the allowable emissions of a

pollutant, applying only to the emission

limitation for that pollutant; or

(3) Before July 8, 1985, the merging was part

of a change in operation at the facility that

included the installation of emissions con

trol equipment or was carried out for

sound economic or engineering reasons.

Where there was an increase in the emis

sion limitation or, in the event that no

emission limitation was in existence prior

to the merging, an increase in the quantity

of pollutants actually emitted prior to the

merging, the Department shall presume

that merging was significantly motivated

by an intent to gain emissions credit for

greater dispersion. Absent a demonstra

tion by the source owner or operator that

merging was not significantly motivated

by such intent, the Department shall deny

credit for the effects of the merging in cal

culating the allowable emissions for the

source.

iii. Smoke management in agricultural or silvicul

tural prescribed burning programs.

iv. Episodic restrictions on residential woodburn

ing and open burning.

v. Techniques that increase final exhaust gas

plume rise if the resulting allowable emissions

of sulfur dioxide from the facility do not exceed

5,000 tons per year.

6. “Existing emissions unit” is any emissions unit that is

currently in existence and that is not a new emissions

unit. A replacement unit is an existing emissions unit.

7. “High terrain” means any area having an elevation of 900

feet or more above the base of the stack of a source.

8. “Innovative control technology” means any system of air

pollution control that has not been adequately demon

strated in practice but would have a substantial likelihood

of achieving greater continuous emissions reduction than

any control system in current practice, or of achieving at

least comparable reductions at lower cost in terms of

energy, economics, or i~onair quality environmental

impacts.

9. “Low terrain” means any area other than high terrain.

10. “Lowest achievable emission rate” (LAER) means, for

any source, the more stringent rate of emissions based on

one of the following:

a. The most stringent emissions limitation that is con

tained in any implementation plan approved or pro

mulgated under sections 110 or 172 of the Act for

the class or category of stationary source, unless the

June 30, 2012 Page 59 Supp. 12-2
Title 18, Ch. 2 Arizona Administrative Code

Department ofEnvironmental Quality — Air Pollution Control

owner or operator of the proposed stationary source

demonstrates that the limitation is not achievable; or

b. The most stringent emissions limitation that is

achieved in practice by the class or category of sta

tionary source. This limitation, when applied to a

modification, means the lowest achievable emis

sions rate for the new or modified emissions units

within the stationary source. The application of this

term shall not permit a proposed new or modified

stationary source to emit any pollutant in excess of

the amount allowable under applicable standards of

performance in Articles 9 and 11 ofthis Chapter.

11 “Major source” means:

a. Any stationary source located in a nonattainment

area that emits, or has the potential to emit, 100 tons

per year or more of any regulated NSR pollutant,

except that the following thresholds shall apply in

areas subject to subpart 2, subpart 3 or subpart 4 of

part D, Title I of the Act:

b. Any stationary source located in an attainment or

unclassifiable area that emits, or has the potential to

emit, 100 tons per year or more of any regulated

NSR pollutant if the source is classified as a Cate

gorical Source, or 250 tons per year or more of any

regulated NSR pollutant if the source is not classi

fied as a Categorical Source;

c. Any stationary source that emits, or has the potential

to emit, five or more tons of lead per year;

d, A major source that is major for VOC or nitrogen

oxides shall be considered major for ozone; or

e. The fugitive emissions of a stationary source shall

not be included in determining for any of the pur

poses of this Section whether it is a major stationary

source, unless the source belongs to a section 302(j)

category.

12. “New emissions unit” means any emissions unit which is

(or will be) newly constructed and which has existed for

less than two years from the date such emissions unit first

operated.

13. “Plantwide applicability limitation” or “PAL” means an

emission limitation that is based on the baseline actual

emissions of all emissions units at the stationary source

that emit or have the potential to emit the PAL pollutant,

expressed in tons per year, for a pollutant at a major

source, that is enforceable as a practical matter and estab

lished source-wide in accordance with this Section.

14. “PAL allowable emissions” means “allowable emissions”

as defined in RI 8-2-10 1, except that the allowable emis

sions for any emissions unit shall be calculated consider

ing any emission limitations that are enforceable as a

practical matter on the emissions unit’s potential to emit.

15. PAL effective date generally means the date of issuance

of the PAL permit. However, the PAL effective date for

an increased PAL is the date any emissions unit that is

part of the PAL major modification becomes operational

and begins to emit the PAL pollutant.

16. “PAL effective period” means the period beginning with

the PAL effective date and ending 10 years later.

17. “PAL major modification” means any physical change in

or change in the method of operation of the PAL source

that causes it to emit the PAL pollutant at a level equal to

or greater than the PAL.

18. “PAL permit” means the permit issued by the Director

that establishes a PAL for a major source.

19. “PAL pollutant” means the pollutant for which a PAL is

established at a major source.

20. “Projected actual emissions” means:

a. The maximum annual rate, in tons per year, at which

an existing emissions unit is projected to emit a reg

ulated NSR pollutant during any 12-month period in

the 60 calendar months following the date the unit

resumes regular operation after the project, or in any

12-month period in the 120 calendar months follow

ing that date if the project involves increasing the

design capacity or potential to emit of any emissions

unit for that regulated NSR pollutant and full utiliza

tion of the unit would result in a significant emis

sions increase or a significant net emissions increase

at the major source.

b. In determining the projected actual emissions before

beginning actual construction, the owner or operator

of the major source:

i. Shall consider all relevant information, includ

ing but not limited to, historical operational

data, the company’s own representations, the

company’s expected business activity and the

company’s highest projections of business

activity, the company’s filings with the county,

state or federal regulatory authorities, and com

pliance plans under these regulations; and

ii. Shall include fugitive emissions to the extent

quantifiable;

iii. Shall include emissions associated with star

tups and shutdowns, except emissions from a

shutdown associated with a malfunction; and

iv. Shall exclude, only for calculating any increase

in emissions that results from the particular

project, that portion of the unit’s emissions fol

lowing the project that an existing unit could

have accommodated during the consecutive 24-

month period used to establish the baseline

actual emissions and that are also unrelated to

the particular project, including any increased

utilization due to product demand growth; or

c. In lieu of using the method set out subsections

(20)(b)(i) through (iv), the owner or operator may

elect to use the emissions unit’s potential to emit, in

tons per year.

21. “Reconstruction” of sources located in nonattainment

areas shall be presumed to have taken place if the fixed

capital cost of the new components exceeds 50% of the

fixed capital cost of a comparable entirely new stationary

Pollutant Emitted Nonattainment

Pollutant and

Classification

Carbon Monoxide

(CO)

Quantity Threshold

tons/year or more

CO, Serious, if 50

stationary sources

contribute signifi

cantly to CO lev

els in the area as

determined under

rules issued by

the Administrator

VOC

VOC

PM10

NO~

NO~

Ozone, Serious

Ozone, Severe

PM10, Serious

Ozone, Serious

Ozone, Severe

50

25

70

50

25

Supp. 12-2 Page 60 June 30, 2012
Arizona Administrative Code Title 18, Cli. 2

Department of Environmental Quality — Air Pollution Control

source, as detennined in accordance with the provisions

of 40 CFR 60.15(f)(l) through (3).

22. “Replacement unit” means an emissions unit for which

all the criteria listed in subsections (22)(a) through (d) are

met. No creditable emission reductions shall be generated

from shutting down the existing emissions unit that is

replaced.

a. The emissions unit is a reconstructed unit within the

meaning of 40 CFR 60.15(b)(1), or the emissions

unit completely takes the place of an existing emis

sions unit,

b. The emissions unit is identical to or functionally

equivalent to the replaced emissions unit.

c. The replacement does not alter the basic design

parameters of the process unit.

d. The replaced emissions unit is pennanently removed

from the major source, otherwise permanently dis

abled, or permanently barred from operation by a

permit that is enforceable as a practical matter. Ifthe

replaced emissions unit is brought back into opera

tion, it shall constitute a new emissions unit.

23. “Resource recovery project” means any facility at which

solid waste is processed for the purpose of extracting,

converting to energy, or otherwise separating and prepar

ing solid waste for reuse. Only energy conversion facili

ties that utilize solid waste that provides more than 50%

of the heat input shall be considered a resource recovery

project under this Article.

24, “Significant emissions unit” means an emissions unit that

emits or has the potential to emit a PAL pollutant in an

amount that is equal to or greater than the significant

level for that PAL pollutant, but less than the amount that

would qualif~’ the unit as a major emissions unit.

25. “Significance levels” means the following ambient con

centrations for the enumerated pollutants:

Pollutant Annual 24-Hour 8-flour 3-flour 1-Hour

SO2 I ~tg/m3 5 ~g/m3 25 ~tg/m3

NO2 I ~tg/m3

Co 0.5 mg/rn3 2 mg/rn3

PM10 I ~ig/m3 5 ~ig/m3

PM25 0.06 ~ig/m3 0.07 ~ig/m3

Class I area

PM25 0.3 ~ig/m3 1.2 ig/m3

Class 11 area

PM25 0.3 hg/rn3 1.2 ~g/m~

Class Ill area

26. “Small emissions unit” means an emissions unit that

emits or has the potential to emit the PAL pollutant in an

amount less than the significant level for that PAL pollut

ant.

Historical Note

Adopted effective May 14, 1979 (Supp. 79-1). Amended

effective October 2, 1979 (Supp. 79-5). Former Section

R9-3-40l renumbered without change as Section R18-2-

401 (Supp. 87-3). Section R18-2-401 renumbered to RI 8-

2-601. New Section RI 8-2-401 adopted effective

November 15, 1993 (Supp. 93-4). Amended by final rule

making at 5 A.A.R. 4074, effective September 22, 1999

(Supp. 99-3). 1~’pographical error corrected in R18-2-

401(9)(a) (Supp. 00-4). Amended by final rulemaking at

13 A.A.R. 1134, effective May 5, 2007 (Supp. 07-1).

Amended by final rulemaking at 18 A.A.R. 1542, effec

tive August 7, 2012 (Supp. 12-2).

R18-2-402. General

A. The preconstruction review requirements of this Article shall

apply to the construction of any new major source or any

project at an existing major source.

B. The requirements of R18-2-403 through R18-2-4l0 apply to

the construction of a major source or a major modification of

any existing stationary source, except as this Article otherwise

provides.

C. No person shall begin actual construction of a new major

source or a major modification subject to the requirements of

R18-2-403 through R18-2-410 without first obtaining a pro

posed final permit from the Director, pursuant to Rl8-2-

307(A)(2), stating that the major source or major modification

shall meet those requirements.

D. The requirements of this Article apply to projects at major

sources in accordance with the following principles.

1. Except as otherwise provided in subsection (E), a project

is a major modification for a regulated NSR pollutant ifit

causes both a significant emissions increase and a signifi

cant net emissions increase. The project is not a major

modification if it does not cause a significant emissions

increase. If the project causes a significant emissions

increase, then the project is a major modification only ifit

also results in a significant net emissions increase.

2. The procedure for calculating before beginning actual

construction whether a significant emissions increase will

occur depends upon the types of emissions units being

modified as set forth in subsections (D)(3) through (6).

The procedure for calculating before beginning actual

construction whether a significant net emissions increase

will occur at the major source is set forth in the definition

of net emissions increase in R18-2-l01. Regardless of

any such preconstruction projections, a major modifica

tion results if the project causes a significant emissions

increase and a significant net emissions increase.

3. Actual-to-projected-actual applicability test for projects

that only involve existing emissions units. A significant

emissions increase of a regulated NSR pollutant is pro

jected to occur if the sum of the difference between the

projected actual emissions and the baseline actual emis

sions, for each existing emissions unit, equals or exceeds

the significant amount for that pollutant.

4. Actual-to-potential applicability test for projects that only

involve new emissions units. A significant emissions

increase of a regulated NSR pollutant is projected to

occur ifthe sum ofthe difference between the potential to

emit from each new emissions unit following completion

of the project and the baseline actual emissions of these

units before the project equals or exceeds the significant

amount for that pollutant.

5. [Reserved.]

6. Hybrid applicability test for projects that involve both

new emissions units and existing emissions units. A sig

nificant emissions increase of a regulated NSR pollutant

is projected to occur ifthe sum ofthe emissions increases

for each emissions unit, using the method specified in

Averaging Time

Except for the annual pollutant concentrations, the Department

shall deem that exceedance of significance levels has occurred

when the ambient concentration of the above pollutant is exceeded

more than once per year at any one location. If the concentration

occurs at a specific location and at a time when Arizona ambient

air quality standards for the pollutant are not violated, the signifi

cance level does not apply.

June 30, 2012 Page 61 Supp. 12-2
Title 18, Ch. 2 Arizona Administrative rode

Department of Environmental Quality — Air Pollution Control

subsection (D)(4), as applicable with respect to each

emissions unit, equals or exceeds the significant amount

for that pollutant.

E. Any major source with a PAL for a regulated NSR pollutant

shall comply with Ri 8-2-4 12.

F. This subsection applies with respect to any regulated NSR pol

lutant emitted from projects at existing emissions units at a

major stationary source (other than projects at a source with a

PAL) in circumstances where there is a reasonable possibility,

within the meaning of subsection (F)(6) of this Section, that a

project that is not a part of a major modification may result in a

significant emissions increase of such pollutant and the owner

or operator elects to use the method specified in R18-2-

401(20)(b)(i) through (iv) of the definition of projected actual

emissions for calculating projected actual emissions.

Before beginning actual construction of the project, the

owner or operator shall document and maintain a record

of the following information:

a. A description ofthe project;

b. Identification of the emissions unit(s) with emis

sions of a regulated NSR pollutant that could be

affected by the project;

c. A description of the applicability test used to deter

mine that the project is not a major modification for

any regulated NSR pollutant, including the baseline

actual emissions, the projected actual emissions, the

amount of emissions excluded under R18-2-

401 (20)(b)(iii) of the definition of projected actual

emissions and an explanation for why such amount

was excluded; and

d. Any netting calculations, if applicable.

2. If the emissions unit is an existing electric utility steam

generating unit, before beginning actual construction, the

owner or operator shall provide a copy of the information

set out subsection (F)( I) to the Director. Nothing in this

subsection shall be construed to require the owner or

operator of such a unit to obtain any determination from

the Director before beginning actual construction.

3. The owner or operator shall monitor the emissions of any

regulated NSR pollutant that could increase as a result of

the project and that is emitted by any emissions unit iden

tified in subsection (F)(1)(b); and calculate and maintain

a record ofthe annual emissions, in tons per year on a cal

endar year basis, for a period of five years following

resumption of regular operations after the change, or for a

period of 10 years following resumption of regular opera

tions after the change if the project increases the design

capacity or potential to emit of that regulated NSR pollut

ant at such emissions unit. For purposes of this subsec

tion, fugitive emissions (to the extent quantifiable) shall

be monitored if the emissions unit is part of a section

302(j) category or if the emissions unit is located at a

major stationary source that belongs to a section 302(j)

category.

4. The owner or operator shall submit a report to the Direc

tor if for a calendar year the annual emissions, in tons per

year, from the project identified in subsection (F)(l)(a)

exceed the sum of the baseline actual emissions, as docu

mented and maintained under subsection (F)(1)(c), by a

significant amount for that regulated NSR pollutant, and

ifthe emissions differ from the preconstruction projection

as documented and maintained under subsection

(F)(l)(c). The owner or operator shall submit the report to

the Director within 60 days after the end of the calendar

year. The report shall contain the following:

a. The name, address and telephone number of the

major source;

b. The annual emissions as calculated pursuant to sub

section (F)(3); and

c. Any other information that the owner or operator

wishes to include in the report, such as an explana

tion as to why the emissions differ from the precon

struction projection.

5. Notwithstanding subsection (F)(4), if any existing emis

sions unit identified in subsection (F)(l)(b) is an electric

utility steam generating unit, the owner or operator shall

submit a report to the Director within 60 days after the

end of each calendar year during which the owner or

operator must generate records under subsection (F)(3).

The report shall document the unit’s post-project annual

emissions during the calendar year that preceded submis

sion ofthe report.

6. A “reasonable possibility” under subsection (F) occurs

when the owner or operator calculates the project to result

in one of the following:

a. A projected actual emissions increase of at least

50% of the amount that is a significant emissions

increase (without reference to the amount that is a

significant net emissions increase) for the regulated

NSR pollutant.

b. A projected actual emissions increase that, added to

the amount of emissions excluded under subsection

Rl8-2-40l(20)(b)(iv) of the definition of projected

actual emissions, sums to at least 50% ofthe amount

that is a significant emissions increase (without ref

erence to the amount that is a significant net emis

sions increase) for the regulated NSR pollutant. For

a project for which a reasonable possibility occurs

only within the meaning of subsection (F)(6)(b), and

not also within the meaning of subsection (F)(6)(a),

subsections (F)(2) through (5) do not apply to the

project.

G An application for a permit or permit revision under this Arti

cle, other than a PAL permit pursuant to RI 8-2-412, shall not

be considered complete unless the application demonstrates

that:

2.

The requirements in subsection (H) are met;

The more stringent of the applicable new source perfor

mance standards in Article 9 of this Chapter or the exist

ing source performance standards in Article 7 of this

Chapter are applied to the proposed new major source or

major modification of a major source;

3. The visibility requirements contained in R18-2-410 are

satisfied;

4. All applicable provisions of Article 3 of this Chapter are

met;

5. The new major source or major modification will be in

compliance with whatever cmission limitation, design,

equipment, work practice or operational standard, or

combination thereof is applicable to the source or modifi

cation. The degree of emission limitation required for

control of any pollutant under this Article shall not be

affected in any manner by:

a. Stack height in excess of GEP stack height except as

provided in Rl8-2-332; or

b. Any other dispersion technique, unless implemented

prior to December31, 1970;

6. The new major source or major modification will not

exceed the applicable standards for hazardous air pollut

ants contained in this Chapter;

Supp. 12-2 Page 62 June 30, 2012
Arizona Administrative Code Title 18, Ch. 2

Department of Environmental Quality — Air Pollution Control

7. The new major source or major modification will not

exceed the limitations, if applicable, on emission from

nonpoint sources contained in Article 6 of this Chapter;

8. A stationary source that will emit five or more tons of

lead per year will not violate the ambient air quality stan

dards for lead contained in R18-2-206;

9. The new major source or major modification will not

have an adverse impact on visibility, as determined

according to R18-2-410.

H. Except for assessing air quality impacts within Class I areas,

the air impact analysis required to be conducted as part of a

permit application shall initially consider only the geographi

cal area located within a 50 kilometer radius from the point of

greatest emissions for the new major source or major modifi

cation. The Director, on his own initiative or upon receipt of

written notice from any person shall have the right at any time

to request an enlargement of the geographical area for which

an air quality impact analysis is to be performed by giving the

person applying for the permit or permit revision written

notice thereof, specifying the enlarged radius to be so consid

ered. In performing an air impact analysis for any geographi

cal area with a radius of more than 50 kilometers, the person

applying for the permit or permit revision may use monitoring

or modeling data obtained from major sources having compa

rable emissions or having emissions which are capable of

being accurately used in such demonstration, and which are

subjected to terrain and atmospheric stability conditions which

are comparable or which may be extrapolated with reasonable

accuracy for use in such demonstration.

Unless the requirement has been satisfied pursuant to Article 3

of this Chapter, the Director shall comply with following

requirements:

I. Within 60 days after receipt of an application for a permit

or permit revision subject to this Article, or any addition

to such application, the Director shall advise the applicant

of any deficiency. The date of receipt of the application

shall be, for the purpose ofthis Section, the date on which

the Director received all required information. The permit

application shall not be deemed complete if the Director

fails to meet the requirements of this subsection.

2. A copy of any notice required by Rl8-2-330 shall be sent

to the permit applicant, to the Administrator, and to the

following officials and agencies having cognizance over

the location where the proposed major source or major

modification would occur:

a. The air pollution control officer, if one exists, for the

county wherein the proposed or existing source that

is the subject of the permit or permit revision appli

cation is located;

b. The county manager for the county wherein the pro

posed or existing source that is the subject of the

permit or permit revision application is located;

c. The city or toWn managers of the city or town which

contains, and any city or town the boundaries of

which are within 5 miles of, the location of the pro

posed or existing source that is the subject of the

permit or permit revision application;

d. Any regional land use planning agency with author

ity for land use planning in the area where the pro

posed or existing source that is the subject of the

permit or permit revision application is located; and

e. Any state, Federal Land Manager, or Indian govern

ing body whose lands may be affected by emissions

from the proposed source or modification.

3. The Director shall take final action on the application

within one year of the proper filing of the completed

application. The Director shall notify the applicant in

writing of his approval or denial.

4. The authority to construct and operate a new major

source or majQr modification under a permit or permit

revision issued under this Article shall terminate if the

owner or operator does not commence the proposed con

struction or major modification within 18 months of issu

ance or if, during the construction or major modification,

the owner or operator suspends work for more than 18

months. The Director may extend the 18-month period

upon a satisfactory showing that an extension is justified.

This provision does not apply to the time period between

construction ofthe approved phases of a phased construc

tion project; each phase must commence construction

within 18 months of the projected and approved com

mencement date.

Historical Note

Amended effective August 6, 1976 (Supp. 76-4). Former

Section R9-3-402 repealed, new Section R9-3 -402

adopted effective May 14, 1979 (Supp. 79-1). Amended

and adopted by reference Open Burning Guidelines for

Air Pollution Control effective September 22, 1983

(Supp. 83.5). Former Section R9-3 -402 renumbered

without change as Section R18-2-402 (Supp. 87-3). Sec

tion RI 8-2-402 renumbered to Rl 8-2-602, new Section

R18-2-402 adopted effective November 15, 1993 (Supp.

93-4). Amended by final rulemaking at 18 A.A.R. 1542,

effective August 7, 2012 (Supp. 12-2).

R18-2-403. Permits for Sources Located in Nonattainment

Areas

A. Except as provided in subsections (C) through (G) below, no

permit or permit revision shall be issued under this Article to a

person proposing to construct a new major source or make a

major modification that is major for the pollutant for which the

area is designated nonattainment unless:

1. The person demonstrates that the new major source or the

major modification will meet an emission limitation

which is the lowest achievable emission rate (LAER) for

that source for that regulated NSR pollutant.

2. The person demonstrates that all existing major sources

owned or operated by that person (or any entity control

ling, controlled by, or under common control with that

person) in the state are in compliance with, or on a sched

ule of compliance for, all conditions contained in permits

of each of the sources and all other applicable emission

limitations and standards under the Act and this Chapter.

3. The person demonstrates that emission reductions for the

specific pollutant(s) from source(s) in existence in the

allowable offset area of the new major source or major

modification (whether or not under the same ownership)

meet the offset requirements of Ri 8-2-404.

B. No permit or permit revision under this Article shall be issued

to a person proposing to construct a new major source or make

a major modification to a major source located in a nonattain

ment area unless:

1. The person performs an analysis of alternative sites,

sizes, production processes, and environmental control

techniques for such new major source or major modifica

tion; and

2. The Director determines that the analysis demonstrates

that the benefits ofthe new major source or major modifi

cation significantly outweigh the environmental and

social costs imposed as a result of its location, construc

tion, or modification.

June 30, 2012 Page 63 Supp. 12-2
Title 18, Cli. 2 Arizona Administrative Code

Department of Environmental Quality — Air Pollution Control

C. At such time that a particular source or modification becomes

a major source or major modification solely by virtue of a

relaxation in any enforceable limitation which was established

after August 7, 1980, on the capacity of the source or modifi

cation otherwise to emit a pollutant, such as restriction on

hours of operation, then the requirements of this Section shall

apply to the source or modification as though construction had

not yet commenced on the source or modification.

D. Secondary emissions shall not be considered in determining

the potential to emit ofanew source or modification and there

fore whether the new source or modification is major. How

ever, if a new source or modification is subject to this Section

on the basis of its direct emissions, a permit or permit revision

under this Article to construct the new source or modification

shall be denied unless the requirements of R18-2-403(A)(3)

and R18-2-404 are met for reasonably quantifiable secondary

emissions caused by the new source or modification.

E. A permit to construct a new major source or major modifica

tion shall be denied unless the conditions specified in subsec

tions (A)(1), (2), and (3) are met for fugitive emissions caused

by the new source or modification. However, these conditions

shall not apply to a new major source or major modification

that would be a major source or major modification only if

fugitive emissions, to the extent quantifiable, are considered in

calculating the potential emissions of the source or modifica

tion, and the source does not belong to a section 302(j) cate

gory.

F. The requirements of subsection (A)(3) shall not apply to tem

porary emissions units, such as pilot plants, portable facilities

that will be relocated outside of the nonattainment area and the

construction phase of a new source, if those units will operate

for no more than 24 months in the nonattainment area, are oth

erwise in compliance with the requirement to obtain a permit

under this Chapter and are in compliance with the conditions

of that permit.

C. A decrease in actual emissions shall be considered in deter

mining the potential of a new source or modification to emit

only to the extent that the Director has not relied on it in issu

ing any permit or permit revision under this Article or the state

has not relied on it in demonstrating attainment or reasonable

further progress.

H. Within 30 days of the issuance of any permit under this Sec

tion, the Director shall submit control technology information

from the permit to the Administrator for the purposes listed in

Section 173(d) of the Act

The issuance of a permit or permit revision under this Article

in accordance with this Section shall not relieve the owner or

operator of the responsibility to comply fully with applicable

provisions of the SIP and any other requirements under local,

state, or federal law.

Historical Note

Former Section R9-3-403 repealed, new Section R9-3-

403 adopted effective May 14, 1979 (Supp. 79-I). Former

Section R9-3-403 renumbered without change as Section

RI 8-2-403 (Supp. 87-3). Section RI 8-2-403 renumbered

to RI 8-2-603, new Section Rl 8-2-403 adopted effective

November 15, 1993 (Supp. 93-4). Amended by final rule

making at 18 A.A.R. 1542, effective August 7, 2012

(Supp. 12-2).

R18-2-404, Offset Standards

A. Increased emissions by a major source or major modification

subject to RI 8-2-403 shall be offset by real reductions in the

actual emissions of each pollutant for which the area has been

designated as nonattainment and for which the source or mod

ification is classified as major. Except as provided in R18-2-

405, emissions increases shall be off~et by decreases at a ratio

of at least Ito I.

B. Except as provided in subsection (B)(l) or (2), for sources and

modifications subject to this Section, the baseline for deter

mining credit for emissions reductions is the emissions limit

for the source generating the offset credit under the applicable

implementation plan in effect at the time the application for a

permit or permit revision is filed.

I. The offset baseline shall be the actual emissions of the

source from which offset credit is obtained where either

of the following conditions is satisfied:

a. The demonstration of reasonable further progress

and attainment of ambient air quality standards is

based upon the actual emissions of sources located

within a designated nonattainment area for which

the preconstruction review program was adopted.

b. The applicable implementation plan does not con

tain an emissions limitation for that source or source

category.

2. Where the emissions limit under the applicable imple

mentation plan allows greater emissions than the poten

tial to emit of the source, emissions offset credit will be

allowed only for control below this potential.

C. For an existing fuel combustion source, emissions offset credit

shall be based on the allowable emissions under the applicable

implementation plan for the type of fuel being burned at the

time the application to construct is filed. If the existing source

commits to switch to a cleaner fuel at some future date, emis

sions offset credit based on the allowable or actual emissions

for the fuels involved is not acceptable, unless the permit for

the existing source is conditioned to require the use of a speci

fied alternative control measure which would achieve the same

degree of emissions reduction should the source switch back to

a fuel generating higher emissions. The owner or operator of

the existing source must demonstrate that adequate long-term

supplies of the new fuel are available before granting emis

sions offset credit for fuel switches.

D. Offset Credit for Shutdowns.

1. Emissions reductions achieved by shutting down an exist

ing emission unit or curtailing production or operating

hours may be credited for offsets ifthey meet both of the

following conditions.

a. The reductions are surplus, permanent, quantifiable,

and federally enforceable.

b. The shutdown or curtailment occurred after the last

day of the base year for the SIP planning process.

For purposes of this subsection, the Director may

choose to 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

the attainment demonstration explicitly includes the

emissions from such previously shutdown or cur

tailed emission units. However, in no event may

credit be given for shutdowns that occurred before

August 7, 1977.

2. Emissions reductions achieved by shutting down an exist

ing emissions unit or curtailing production or operating

hours and that do not meet the requirements in subsection

(D)(I)(b) may be credited only if one of the following

conditions is satisfied:

a. The shutdown or curtailment occurred on or after the

date the construction permit application is filed.

b. The applicant can establish that the proposed new

emissions unit is a replacement for the shutdown or

curtailed emissions unit, and the emissions reduc

Supp. 12-2 Page 64 June 30, 2012
Arizona Administrative Code Title 18, Ch 2

Department ofEnvironmental Quality —Air Pollution Control

tions achieved by the shutdown or curtailment met

the requirements of subsection (D)(1)(a).

It. No emissions credit may be allowed for replacing one hydro

carbon compound with another of lesser reactivity, except for

those compounds listed in Table 1 of EPA’s “Recommended

Policy on Control of Volatile Organic Compounds,” 42 FR

35314 (July 8, 1977).

F. All emission reductions claimed as offset credits shall be fed

erally enforceable by the time a permit is issued to the owner

or operator ofthe major source subject to this Section and shall

be in effect by the time the new or modified source subject to

the permit commences operation.

G The owner or operator of a major source or major modification

subject to this Section must obtain offset credits from the same

source or from other sources in the same nonattainment area,

except that the Director may allow the owner or operator to

obtain offset credits from another nonattainment area if both of

the following conditions are satisfied:

I. The other area has an equal or higher nonattainment clas

sification than the area in which the source is located.

2. Emissions from such other area contribute to a violation

of the national ambient air quality standard in the nonat

tainment area in which the source is located.

H. Credit for an emissions reduction can be claimed to the extent

that the Director has not relied on it in issuing any permit

under this Article or the state has not relied on it in a demon

stration of attainment or reasonable further progress.

The total tonnage of increased emissions, in tons per year,

resulting from a major modification that must be offset under

this Section shall be determined by summing the difference

between the allowable emissions after the modification and the

actual emissions before the modification for each emissions

unit.

J. In ozone nonattainment areas classified as marginal, total

emissions of VOC and oxides of nitrogen from other sources

shall offset those proposed or permitted from the major source

or major modification by a ratio of at least 1.10 to I. In ozone

nonattainment areas classified as moderate, total emissions of

VOC and oxides of nitrogen from other sources shall offset

those proposed or permitted from the major source or major

modification by a ratio of at least 1.15 to 1. New major sources

and major modifications in serious and severe ozone nonat

tainment areas shall comply with this Section and RI 8-2-405.

Historical Note

Former Section R9-3-404 repealed, new Section R9-3-

404 adopted effective May 14, 1979 (Supp. 79-1).

Amended by adding subsection (C) effective September

22, 1983 (Supp. 83-5). Former Section R9-3-404 renum

bered without change as Section R18-2-404 (Supp. 87-3).

Amended subsection (C) effective December 1, 1988

(Supp. 88-4). Section Rl8-2-404 renumbered to RI 8-2-

604, new Section RI 8-2-404 adopted effective November

15, 1993 (Supp. 93-4). Amended effective February 28,

1995 (Supp. 95-I). Amended by final rulemaking at 5

A.A.R. 4074, effective September 22, 1999 (Supp. 99-3).

Amended by final rulemaking at 8 A.A.R. 1815, effective

March 18, 2002 (Supp. 02-I). Amended by final rule

making at 18 A.A.R. 1542, effective August 7, 2012

(Supp. 12-2).

R18-2-405. Special Rule for Major Sources ofVOC or Nitro

gen Oxides in Ozone Nonattainment Areas Classified as Serious

or Severe

A. Applicability. The provisions of this Section only apply to sta

tionaiy sources of VOC or nitrogen oxides in ozone nonattain

ment areas classified as serious or severe. Unless otherwise

provided in this Section, all requirements ofArticles 3 and 4 of

this Chapter apply.

B. “Significant” means, for the purposes of a major modification

of any major stationary source of VOC or nitrogen oxides, or

for determining whether an otherwise minor source is major

under the definition of major source in R18-2-401, any physi

cal change or change in the method of operations that results in

net increases in emissions of either pollutant by more than 25

tons when aggregated with all other creditable increases and

decreases in emissions from the source over the previous five

consecutive calendar years, including the calendar year in

which the increase is proposed.

C. For any major source that emits or has the potential to emit

less than 100 tons of VOC or oxides of nitrogen per year, a

physical or operational change that results in a significant

increase in VOC or oxides of nitrogen, respectively, from any

discrete operation, unit, or other pollutant emitting activity at

the source shall constitute a major modification, except that

the increase shall not constitute a major modification, if the

owner or operator ofthe source elects to offset the increase by

a greater reduction in emissions of VOC or oxides of nitrogen,

as applicable, from other operations, units or activities at the

source at an internal offset ratio of at least 1.3 to I. If the

owner or operator does not make such an election, the change

shall constitute a major modification but BACT shall be sub

stituted for LAER when applying R18-2-403(A)(l) to the

major modification.

D. For any stationary source that emits or has the potential to emit

100 tons or more of VOC or oxides of nitrogen per year, a

physical or operational change that results in any significant

increase in VOC from any discrete operation, unit or other pol

lutant emitting activity at the source or oxides of nitrogen,

respectively, shall constitute a major modification except that

if the owner or operator of the source elects to offset the

increase by a greater reduction in emissions of VOC or oxides

of nitrogen, as applicable, from other operations, units or

activities within the source at an internal offset ratio of at least

1.3 to 1, R18-2-403(A)(l) shall not apply to the change.

It. For any new major source or major modification that is classi

fied as major because of emissions or potential to emit VOC or

nitrogen oxides in an ozone nonattainment area classified as

serious, the increase in emissions of these pollutants from the

source or modification shall be offset at a ratio of 1.2 to I. The

offset shall be made in accordance with the provisions of RI 8-

2-404.

F. For any new major source or major modification that is classi

fied as such because of emissions or potential to emit VOC or

nitrogen oxides in an ozone nonattaininent area classified as

severe, the increase in emissions of these pollutants from the

source or modification shall be offset at a ratio of 1.3 to 1.

These offsets shall be made in accordance with the provisions

of R18-2-404.

Historical Note

Former R9-3-405, Other industries, renumbered R9-3-

406, new Section adopted effective September 17, 1975

(Supp. 75-1). Former Section R9-3-405 repealed, new

Section R9-3-405 adopted effective May 14,1979 (Supp.

79-1). Amended effective October 2, 1979 (Supp. 79-5).

Former Section R9-3-405 renumbered without change as

Section Rl8-2-405 (Supp. 87.3). Section R18-2-405

renumbered to R18-2-605, new Section RI 8-2-405

adopted effective November 15, 1993 (Supp. 93-4).

Amended by final rulemaking at 5 A.A.R. 4074, effective

September 22, 1999 (Supp. 99-3). Amended by final nilemaking at 18 A.A.R. 1542, effective August 7,2012

(Supp. 12-2).

June 30, 2012 Page 65 Supp. 12-2
Title 18, Ch. 2 Arizona Administrative Code

Department ofEnvironmental Quality — Air Pollution Control

R18-2-406. Permit Requirements for Sources Located in

Attainment and Unclassifiable Areas

A. Except as provided in subsections (B) through (G) below and

R18-2-408 (Innovative control technology), no permit or per

mit revision under this Article shall be issued to a person pro

posing to construct a new major source or make a major

modification to a major source that would be constructed in an

area designated as attainment or unclassifiable for any regu

lated NSR pollutant unless the source or modification meets

the following conditions:

A new major source shall apply best available control

technology (BACT) for each regulated NSR pollutant for

which the potential to emit is significant.

2. A major modification shall apply BACT for each regu

lated NSR pollutant for which the project would result in

a significant net emissions increase at the source. This

requirement applies to each proposed emissions unit at

which a net emissions increase in the pollutant would

occur as a result of a physical change or change in the

method of operation in the unit.

3. For phased construction projects, the determination of

BACT shall be reviewed and modified as appropriate at

the latest reasonable time which occurs no later than 18

months prior to commencement of construction of each

independent phase of the project. At such time the owner

or operator of the applicable stationary source may be

required to demonstrate the adequacy of any previous

determination of BACT for the source.

4. BACT shall be determined on a case-by-case basis and

may constitute application of production processes or

available methods, systems, and techniques, including

fuel cleaning or treatment, clean fuels, or innovative fuel

combustion techniques, for control of such pollutant. In

no event shall such application of BACT result in emis

sions of any pollutant, which would exceed the emissions

allowed by any applicable new source performance stan

dard or national emission standard for hazardous air pol

lutants under Articles 9 and 11 of this Chapter or by the

applicable implementation plan. If the Director deter

mines that technological or economic limitations on the

application of measurement methodology to a particular

emissions unit would make the imposition of an emis

sions standard infeasible, a design, equipment, work

practice, operational standard, or combination thereof

may be prescribed instead to satis1~’ the requirement for

the application of BACT. Such standard shall, to the

degree possible, set forth the emissions reduction achiev

able by implementation of such design, equipment, work

practice, or operation and shall provide for compliance by

means which achieve equivalent results.

5. The person applying for the permit or permit revision

under this Article performs an air impact analysis and

monitoring as specified in RI 8-2-407, and such analysis

demonstrates that allowable emission increases from the

proposed new major source or major modification, in

conjunction with all other applicable emission increases

or reductions, including secondary emissions, for all pol

lutants listed in RI 8-2-218(A), and including minor and

mobile source emissions of nitrogen oxides and PM10:

a. Would not cause or contribute to concentrations of

conventional air pollutants in violation of any ambi

ent air quality standard in Article 2 ofthis Chapter in

any air quality control region or any applicable max

imum allowable increase under Rl8-2-2l 8 over the

baseline concentration for any attainment or unclas

sified area; or

b. Would not contribute to an increase in ambient con

centrations for a pollutant by an amount in excess of

the significance level for such pollutant in any adja

cent area in which Arizona primary or secondary

ambient air quality standards for that pollutant are

being violated. A new major source of volatile

organic compounds or nitrogen oxides, or a major

modification to a major source of volatile organic

compounds or nitrogen oxides shall be presumed to

contribute to violations of the Arizona ambient air

quality standards for ozone if it will be located

within 50 kilometers of a nonattainment area for

ozone. The presumption may be rebutted for a new

major source or major modification if it can be satis

factorily demonstrated to the Director that emissions

of volatile organic compounds or nitrogen oxides

from the new major source or major modification

will not contribute to violations ofthe Arizona ambi

ent air quality standards for ozone in adjacent nonat

tainment areas for ozone. Such a demonstration shall

include a showing that topographical, meteorologi

cal, or other physical factors in the vicinity of the

new major source or major modification are such

that transport of volatile organic compounds emitted

from the source are not expected to contribute to

violations of the ozone standards in the adjacent

nonattainment areas.

6. Air quality models:

a. All estimates of ambient concentrations required

under this Section shall be based on the applicable

air quality models, data basis, and other require

ments specified in 40 CFR 51, Appendix W, “Guide

line On Air Quality Models,” as of July 1, 2011 (and

no future amendments or editions), which shall be

referred to hereinafter as “Guideline” and is adopted

by reference and is on file with the Department.

b. Where an air quality impact model specified in the

“Guideline” is not applicable, the model may be

modified or another model substituted. Such a

change shall be subject to notice and opportunity for

public comment Written approval of the EPA

Administrator shall be obtained for any modification

or substitution.

B. The requirements of this Section shall not apply to a new

major source or major modification to a source with respect to

a particular pollutant if the person applying for the permit or

permit revision under this Article demonstrates that, as to that

pollutant, the source or modification is located in an area des

ignated as nonattainment for the pollutant.

C. The requirements of this Section shall not apply to a new

major source or a major modification if such source or modifi

cation would be a major source or major modification only if

fugitive emissions, to the extent quantifiable, are considered in

calculating the potential emissions of the source or modifica

tion, and the source 1980 does not belong to a section 302(j)

category.

D. The requirements of this Section shall not apply to a new

major source or major modification to a source when the

owner of such source is a nonprofit health or educational insti

tution.

E. The requirements of this Section shall not apply to a portable

source which would otherwise be a new major source or major

modification to an existing source if such portable source will

operate for no more than 24 months, is under a permit or per

mit revision under this Article, is in compliance with the con

ditions of that permit or permit revision under this Article, the

emissions from the source will not impact a Class I area nor an

Supp. 12-2 Page 66 June 30, 2012
ArizonaAdministrative Code Title 18, Ch. 2

Department ofEnvironmental Quality — Air Pollution Control

area where an applicable increment is known to be violated,

and reasonable notice is given to the Director prior to the relo

cation identif~’ing the proposed new location and the probable

duration of operation at the new location. Such notice shall be

given to the Director not less than 10 calendar days in advance

of the proposed relocation unless a different time duration is

previously approved by the Director.

F. Special rules applicable to Federal Land Managers:

Notwithstanding any other provision of this Section, a

Federal Land Manager may present to the Director a

demonstration that the emissions attributed to such new

major source or major modification to a source would

have an adverse impact on visibility or other specifically

defined air quality related values of any Federal Manda

tory area designated in Rl8-2-217(B) regardless of the

fact that the change in air quality resulting from emis

sions attributable to such new major source or major

modification to a source in existence will not cause or

contribute to concentrations which exceed the maximum

allowable increases for the area in R18-2-2l8. If the

Director concurs with such demonstrations, the permit or

permit revision under this Article shall be denied.

2. If the owner or operator of a proposed new major source

or a source for which major modification is proposed

demonstrates to the Federal Land Manager that the emis

sions attributable to such major source or major modifica

tion will have no significant adverse impact on the

visibility or other specifically defined air quality-related

values of such areas and the Federal Land Manager so

certifies to the Director, the Director may issue a permit

or permit revision under this Article, notwithstanding the

fact that the change in air quality resulting from emis

sions attributable to such new major source or major

modification will cause or contribute to concentrations

which exceed the maximum allowable increases for a

Class I area. Such a permit or permit revision under this

Article shall require that such new major source or major

modification comply with such emission limitations as

may be necessary to assure that emissions will not cause

increases in ambient concentrations greater than the fol

lowing maximum allowable increases over baseline con

centrations for such pollutants:

Maximum

Pollutant allowable increase

(micrograms per cubic meter)

PM25:

Annual arithmetic mean 4

24-hr maximum 9

PM1 0:

Annual arithmetic mean 17

24-hr maximum 30

Sulfur dioxide:

Annual arithmetic mean 20

24-hr maximum 91

3-hr maximum 325

Nitrogen dioxide

Annual arithmetic mean 25

G. The issuance of a permit or permit revision under this Article

in accordance with this Section shall not relieve the owner or

operator of the responsibility to comply fully with applicable

provisions of the SIP and any other requirements under local,

state, or federal law.

H. At such time that a particular source or modification becomes

a major source or major modification solely by virtue of a

relaxation in any enforceable limitation which was established

after August 7, 1980, on the capacity of the source or modifi

cation otherwise to emit a pollutant, such as a restriction on

hours of operation, then the requirements of this Section shall

apply to the source or modification as though construction had

not yet commenced on the source or modification.

Historical Note

Former Section R9-3 -405, renumbered effective Septem

ber 17, 1975 (Supp. 75-1). Former Section R9-3-406

repealed, new Section R9-3-406 adopted effective May

14, 1979 (Supp. 79-I). Former Section R9-3-406 renum

bered without change as Section R18-2-406 (Supp. 87-3).

Section RI 8-2-406 renumbered to RI 8-2-606, new Sec

tion R18-2-406 adopted effective November 15, 1993

(Supp. 93-4). Amended effective February 28, 1995

(Supp. 95-1). The references to R18-2-lOl(97)(a) in sub

section (A)(l) and (2) amended to reference Rl8-2-

l01(104)(a) (Supp. 99-3). Amended by final rulemaking

at 12 A.A.R. 1953, effective January 1,2007 (Supp. 06-

2). Amended by final rulemaking at 18 A.A.R. 1542,

effective August 7, 2012 (Supp. 12-2).

R18-2-407. Air Quality Impact Analysis and Monitoring

Requirements

A. Any application for a permit or permit revision under this Arti

cle to construct a new major source or major modification to a

major source shall contain an analysis of ambient air quality in

the area that the new major source or major modification

would affect for each ofthe following pollutants:

1. For the new source, each pollutant that it would have the

potential to emit in a significant amount;

2. For the modification, each pollutant for which it would

result in a significant net emissions increase.

B. With respect to any such pollutant for which no Arizona ambi

ent air quality standard exists, the analysis shall contain all air

quality monitoring data as the Director determines is necessary

to assess ambient air quality for that pollutant in any area that

the emissions ofthe pollutant would affect.

C. With respect to any such pollutant (other than nonmethane

hydrocarbons) for which such a standard does exist, the analy

sis shall contain continuous air quality monitoring data gath

ered for purposes of determining whether emissions of that

pollutant would cause or contribute to a violation of the stan

dard or any maximum allowable increase.

D. In general, the continuous air quality monitoring data that is

required shall have been gathered over a period of at least one

year and shall represent at least the year preceding receipt of

the application, except that, if the Director determines that a

complete and adequate analysis can be accomplished with

monitoring data gathered over a period shorter than one year

(but not to be less than four months), the data that is required

shall have been gathered over at least that shorter period.

E. The owner or operator of a proposed stationary source or mod

ification to a source of volatile organic compounds who satis

fies all conditions of 40 CFR 51, Appendix S, Section IV, may

provide post-approval monitoring data for ozone in lieu ofpro

viding preconstruction data as required under subsections (B),

(C), and (D) above.

F. Post-construction monitoring. The owner or operator of a new

major source or major modification shall, after construction of

the source or modification, conduct such ambient monitoring

as the Director determines is necessary to determine the effect

June 30, 2012 Page 67 Supp. 12-2
Title 18, Cli. 2 Arizona Administrative Code

emissions from the new source or modification may have, or

are having, on air quality in any area.

G Operations of monitoring stations. The owner or operator of a

new major source or major modification shall meet the

requirements of 40 CFR 58, Appendix B, during the operation

of monitoring stations for purposes of satisf~’ing subsections

(B) through (F) above.

H. The requirements of subsections (B) through (0) above shall

not apply to a new major source or major modification to an

existing source with respect to monitoring for a particular pol

lutant if:

1. The emissions increase of the pollutant from the new

source or the net emissions increase of the pollutant from

the modification would cause, in any area, air quality

impacts less than the following amounts:

a. Carbon Monoxide - 575 jig/ms, eight-hour average;

b. Nitrogen dioxide - 14 Jig/rn3, annual average;

c. PM25 —4 jig/rn~, 24-hour average;

d. PM10 - 10 jigIrn~’, 24-hour average;

e. Sulfur dioxide - 13 jig/rn3, 24-hour average;

f. Lead - 0.1 jig/rn3, 24-hour average;

g. Fluorides - 0.25 jig/rn3, 24-hour average;

h. Total reduced sulfur - 10 jig/rn3, one-hour average;

i. Hydrogen sulfide - 0.04 jig/rn3, one-hour average;

j. Reduced sulfur compounds - 10 jig/rn3, one-hour

average;

k. Ozone - increased emissions of less than 100 tons

per year of volatile organic compounds or oxides of

nitrogen; or

2. The concentrations of the pollutant in the area that the

new source or modification would affect are less than the

concentrations listed in subsection (H)(1) above.

Any application for permit or permit revision under this Arti

cle to construct a new major source or major modification to a

source shall contain:

I. An analysis ofthe impairment to visibility, soils, and veg

etation that would occur as a result of the new source or

modification and general commercial, residential, indus

trial, and other growth associated with the new source or

modification. The applicant need not provide an analysis

of the impact on vegetation having no significant com

mercial or recreational value.

2. An analysis of the air quality impact, projected for the

area as a result of general commercial, residential, indus

trial, and other growth associated with the new source or

modification.

Historical Note

Adopted effective May 14, 1979 (Supp. 79-1). Former

Section R9-3-407 renumbered without change as Section

Rl 8-2-407 (Supp. 87-3). Section RI 8-2-407 renumbered

to RI 8-2-607, new Section RI 8-2-407 adopted effective

November 15, 1993 (Supp. 93-4). Amended by final rule

making at 18 A.A.R. 1542, effective August 7,2012

R~8-2-408. Innovative Control TechnoJ8~”

A. Notwithstanding the provisions o 18-2-406(A)(1) through

the owner or operator of a oposed new major source or

maj odification may r est that the Director approve a

system novative c ol technology rather than the best

available con te ology requirements otherwise applica

ble to the new so r modification.

B. The Director II appro e installation of a system of inno

vative con I technology if th llowing conditions are met:

I. Th owner or operator of the p osed source or modifi

tion satisfactorily demonstrates the proposed control system would not cause or contribute to a

unrea onable risk to public health, welfare, or safety in i

operat on or function;

2. The a er or operator agrees to achieve a level of con n

uous e issions reduction equivalent to that which w uld

have be n required under R18-2-406(A)(2) by a date

specified ~n the permit or permit revision under thi Arti

cle for th source. Such date shall not be later t four

years fro the time of start-up or seven years om the

issuance of permit or permit revision under s Article;

3. The source r modification would meet r uirements

equivalent to those in R18-2-406(A) based n the emis

sions rate that he stationary source employi g the system

of innovative ontrol technology would e required to

meet on the dat specified in the permit or ermit revision

under this Articl

4. Before the dates ecifled in the permit r permit revision

under this Article, e source or modif ation would not:

a. Cause or contr ute to any viola on of an applicable

state ambient ai quality stand ; or

b. Impact any are where an a licable increment is

known to be viol ed.

5. All other applicable quirem ts including those for

public participation hay been et.

6. The Director receives t e co sent of the governors of

other affected states.

7. The limits on pollutants co med in R18-2-218 for Class

I areas will be met for all eriods during the life of the

source or modification.

C. The Director shall withdraw y a proval to employ a system

of innovative control techno gy m de under this Section if:

1. The proposed syste fails the specified date to

achieve the required ntinuous missions reduction rate;

or

2. The proposed syste fails before a specified date so as

to contribute to unreasonable isk to public health,

welfare, or safety or

3. The Director de des at any time that e proposed system

is unlikely to hieve the required Ic I of control or to

protect the Pu ic health, welfare, or s ty.

D. If the new sour or major modification f is to meet the

required level of continuous emissions reduc ~on within the

specified time p iod, or ifthe approval is withd wn in accor

dance with sub ection (C) above, the Director y allow the

owner or oper or ofthe source or modification u to an addi

tional three y ars to meet the requirement for the plication

of best avai ble control technology through use of demon

strated sys in of control.

Historical Note

Adopte effective May 14, 1979 (Supp. 79-1). Asnende

effecti e October 2, 1979 (Supp. 79-5). Former Section

R9-3- 08 renumbered without change as Section R18-2-

408 ( upp. 87-3). Section Rl8-2-408 renumbered to Rl8-

2-608, new Section RI 8-2-408 adopted effective Novem

ber 15, 1993 (Supp. 93-4).

RI 8-2-409. Air Quality Models

A. Where the Director requires a person requesting a permit or

permit revision under this Article to perform air quality impact

modeling to obtain such permit or permit revision under this

Article, the modeling shall be performed in a manner consis

tent with the Guideline specified in RI 8-2-406(A)(6)(a).

B. Where the person requesting a permit or permit revision under

this Article can demonstrate that an air quality impact model

specified in the Guideline is inappropriate, the model may be

modified or another model substituted. However, before such

Department of Environmental Quality—Air Pollution Control

Supp. 12-2 Page 68 June 30, 2012
Ariz~ona Administrative Code Title 18, Ch. 2

Department ofEnvironmental Quality—Air Pollution Control

modification or substitution can occur, the Director shall make

a written finding that: -

1. No model in the Guideline is appropriate for a particular

permit or permit revision under this Article under consid

eration, or

2. The data base required for the appropriate model in the

Guideline is not available, and

3. The model proposed as a substitute or modification is

likely to produce results equal or superior to those

obtained by models in the Guideline, and

4. The model proposed as a substitute or modification has

been approved by the Administrator.

C. The substitution or modification of an air quality model under

this Section shall be included in the public notice under RI 8-2-

330(C).

Historical Note

Adopted effective May 14, 1979 (Supp. 79-1). Former

Section R9-3-409 renumbered without change as Section

RI 8-2-409 (Supp. 87-3). Section Rl8-2-409 renumbered

to RI 8-2-609, new Section RI 8-2-409 adopted effective

November 15, 1993 (Supp. 93-4). )

\ R18-2-410. Visibility Protection /

\~. For any new major source or major modification subje~ to the

\ provisions of this Chapter, no permit or permit revis~6n under \ this Article shall be issued to a person proposing t/construct

\çr modi~’ the source unless the applicant has provjded:

t\ An analysis of the anticipated impacts o~.4he proposed

\ source on visibility in any Class I area3ANhich may be

‘~~ffected by the emissions from that sour/c; and

2. l~sults of monitoring of visibility ily’any area near the

pro’~osed source for such purposes a≠1 by such means as

the l~rector determines is necessary’and appropriate.

B. A determin\tion of an adverse impacf on visibility shall be

made based ài~ consideration of all of~e following factors:

1. The times’çf visitor use of the

2. The freque~y and timing of natural conditions in the

area that redlfr(e visibility; /

3. All of the follo’%’ing visibility impairment characteristics:

a. Geog

b. Intensity,

c. Duration,

d. Frequency,

e. Time of day;

4. The correlation bet$’een’~e characteristics listed in sub

section (B)(3) an~’ the fa\tors described in subsections

(B)(l) and (2). / \

C. The Director shall n≠ issue a pern~i~ or permit revision pursu

ant to this Article ≠r Article 3 of ~s Chapter for any new

major source or qIajor modification \ubject to this Chapter

unless the fo1lowji~g requirements have bçen met:

I. The Direct≠ shall notify the individu\ls identified in sub

section (CJ(2) within 30 days of recei~t of any advance

notificati~ of any such permit or pem~~ revision under

this Artiçlle. \

2. Within 10 days of receipt of an application fôt~a permit or

permit/revision under this Article for a so~e whose

emiss~bns may affect a Class I area, the Direc~r, shall

provi~e written notification of the application to the~Fed

eral ~Land Manager and the federal official charged with

direct responsibility for management of any lands within

any such area. The notice shall:

a. Include a copy of all information relevant to the per

mit or permit revision under this Article,

b. nclude an analysis of the anticipated impacts of the

roposed source on visibility in any area which may

b affected by emissions from the source, and

c. Pr vide for no less than a 30-day period withi

wh h written comments may be submitted.

3. The Dire or shall consider any analysis provided the

Federal L d Manager that is received within t com

ment period rovided in subsection (C)(2).

a. Where e Director finds that the analy provided

by the Fe eral Land Manager does no demonstrate

to the sati action of the Director at an adverse

impact on vi bility will result in area, the Direc

tor shall, wi in the public nof e required under

Rl8-2-330, ci er explain the ecision or specif~’

where the expla ation can be tamed.

b. When the Direct finds t the analysis provided

by the Federal L d M ger demonstrates to the

satisfaction ofthe rect r that an adverse impact on

visibility will result i e area, the Director shall not

issue a permit or pe it revision under this Article

for the proposed m or ew source or major modifi

cation.

4. When the proposed p it de ~sion is made, pursuant to

Ri 8-2-304(J), and a ailable for ublic review, the Direc

tor shall provide individuals entified in subsection

(C)(2) with a co of the propose permit decision and

shall make avai ble to them any m erials used in mak

ing that deter atlon.

Historical Note

Adopted effec a May 14, 1979 (Supp. 79-I). ormer

Section R9-3-4 0 renumbered without change as ection

R18-2-410 ( pp. 87-3). Section R18-2-410 ren ered

to RI8-2- 0, new Section R18-2-410 adopted effe tive

November 15, 1993 (Supp. 93-4).

R18-2-411. Repealed

Histori ote

Adopte ctive N er 15. 1993 (Supp. 93-4). Sec

tion repe al rulemaking at 18 A.A.R. 1542,

effective Augu 2012 (Supp. 12-2).

R18-2-412. PALs

A. Applicability.

1. The Director may approve the use of a PAL for any exist

ing major source if the PAL meets the requirements of

this Section.

2. Any physical change in or change in the method of opera

tion of a major stationary source that maintains its total

source-wide emissions below the PAL level, meets the

requirements of this Section, and complies with the PAL

permit:

a. Is not a major modification for the PAL pollutant,

b. Does not have to be approved through the PSD prograin, and

c. Is not subject to the provisions in R18-2-403(C) or

R18-2-406(H).

3. Except as provided under subsection (A)(2)(c), a major

stationaiy source shall continue to comply with all appli

cable federal or state requirements, emission limitations,

and work practice requirements that were established

prior to the effective date of the PAL.

B. Permit application requirements. As part of a permit applica

tion requesting a PAL, the owner or operator of a major source

shall submit the following information to the Director for

approval:

June 30, 2012 Page 69 Supp. 12-2
Title 18, Ch. 2 ArizonaAdndnistrative Code

Department of Environmental Quality —Air Pollution Control

A list of all emissions units at the source designated as

small, significant or major based on their potential to

emit. In addition, the owner or operator of the source

shall indicate which, if any, federal or state applicable

requirements, emission limitations, or work practices

apply to each unit,

2. Calculations of the baseline actual emissions (with sup

porting documentation).

3. The calculation procedures that the major source owner

or operator proposes to use to convert the monitoring sys

tem data to monthly emissions and annual emissions

based on a 12-month rolling total for each month as

required by subsection (L)(1).

C. General requirements for establishing PALs.

The Director is allowed to establish a PAL at a major

source, provided that at a minimum, the following

requirements are met:

a. The PAL shall impose an annual emission limitation

in tons per year, that is enforceable as a practical

matter, for the entire major source. For each month

during the PAL effective period after the first 12

months of establishing a PAL, the major source

owner or operator shall show that the sum of the

monthly emissions from each emissions unit under

the PAL for the previous 12 consecutive months is

less than the PAL (a 12-month sum, rolled monthly).

For each month during the first 11 months from the

PAL effective date, the major source owner or oper

ator shall show that the sum of the preceding

monthly emissions from the PAL effective date for

each emissions unit under the PAL is less than the

PAL.

b. The PAL shall be established in a PAL permit that

meets the requirements in subsection (D).

c. The PAL permit shall contain all the requirements of

subsection (F).

d. The PAL shall include fugitive emissions, to the

extent quantifiabJe, from all emissions units that

emit or have the potential to emit the PAL pollutant

at the major source.

e. Each PAL shall regulate emissions of only one pol

lutant.

f. Each PAL shall have a PAL effective period of 10

years.

g. The owner or operator of the major source with a

PAL shall comply with the monitoring, recordkeep

ing, and reporting requirements provided in subsec

tions (K) through (M) for each emissions unit under

the PAL through the PAL effective period.

2. At no time (during or after the PAL effective period) are

emissions reductions of a PAL pollutant that occur during

the PAL effective period creditable as decreases for pur

poses of offsets under Rl 8-2-404 unless the level of the

PAL is reduced by the amount of such emissions reduc

tions and such reductions would be creditable in the

absence of the PAL.

D. Action on PAL permit application. A PAL permit application

shall be processed in accordance with one of the following:

As an initial Class] permit pursuant to Ri 8-2-304.

2. As a renewal of a Class I permit pursuant to R18-2-322.

3. As a significant revision to a Class I permit pursuant to

RI 8-2-320.

E. Setting the 10-year actuals PAL level.

Except as provided in subsection (E)(2), the PAL level for

a major source shall be established as the sum of the base

line actual emissions of the PAL pollutant for each emis

sions unit at the source; plus an amount equal to the

applicable significant level for the PAL pollutant. When

establishing the PAL level, only one consecutive 24-

month period must be used to determine the baseline

actual emissions for all existing emissions units. How

ever, a different consecutive 24-month period may be

used for each different PAL pollutant. Emissions associ

ated with units that were permanently shut down after this

24-month period must be subtracted from the PAL level.

The Director shall specif~’ a reduced PAL level(s) (in

tons/yr) in the PAL permit to become effective on the

future compliance date(s) of any applicable federal or

state regulatory requirement(s) that the Director is aware

of prior to issuance ofthe PAL permit. For instance, ifthe

source owner or operator will be required to reduce emis

sions from industrial boilers in half from baseline emis

sions of 60 ppm NOx to a new nile limit of 30 ppm, then

the pennit shall contain a future effective PAL level that

is equal to the current PAL level reduced by half of the

original baseline emissions of such unit(s).

2. For newly constructed units (which do not include modi

fications to existing units) on which actual construction

began after the 24-month period, in lieu of adding the

baseline actual emissions as specified in subsection

(E)(1), the emissions must be added to the PAL level in

an amount equal to the potential to emit ofthe units.

F. Contents ofthe PAL permit. The PAL permit must contain, at a

minimum, the following information:

The PAL pollutant and the applicable source-wide emis

sion limitation in tons per year.

2. The PAL permit effective date and the expiration date of

the PAL (PAL effective period).

3. Specification in the PAL permit that if a major source

owner or operator applies to renew a PAL in accordance

with subsection (I) before the end of the PAL effective

period, then the PAL shall not expire at the end of the

PAL effective period. It shall remain in effect until a

revised PAL permit is issued by the Director.

4. A requirement that emission calculations for compliance

purposes must include emissions from startups, shut

downs, and malfunctions.

5. A requirement that, once the PAL expires, the major

source is subject to the requirements of subsection (H).

6. The calculation procedures that the major source owner

or operator shall use to convert the monitoring system

data to monthly emissions and annual emissions based on

a 12-month rolling total as required by subsection (L)(i).

7. A requirement that the major source owner or operator

monitor all emissions units in accordance with the provi

sions under subsection (K).

8. A requirement to retain the records required under sub

section (L) onsite. Such records may be retained in an

electronic format.

9. A requirement to submit the reports required under sub

section (M) by the required deadlines.

10. Any other requirements that the Director deems neces

saiy to implement and enforce the PAL.

Q PAL effective period and reopening of the PAI. permit.

PAL effective period. The Director shall specii~y a PAL

effective period of 10 years.

2. Reopening of the PAL permit.

a. During the PAL effective period, the Director must

reopen the PAL permit to:

i. Correct typographical/calculation errors made

in setting the PAL or reflect a more accurate

Supp. 12-2 Page 70 June 30, 2012
Arizona Administrative Code Title 18, Ch. 2

Department of Environmental Quality — Air Pollution Control

determination of emissions used to establish the

PAL,

ii. Reduce the PAL ifthe owner or operator of the

major source creates creditable emissions

reductions for use as offsets under R18-2-404,

and

iii. Revise the PAL to reflect an increase in the

PAL as provided under subsection (3).

b. The Director shall have discretion to reopen the PAL

permit for the following:

i. Reduce the PAL to reflect new federal applica

ble requirements with compliance dates after

the PAL effective date;

ii. Reduce the PAL consistent with any other

requirement, that is enforceable as a practical

matter, and that the state may impose on the

major source under the State Implementation

Plan; and

iii. Reduce the PAL if the Director determines that

a reduction is necessary to avoid causing or

contributing to a NAAQS or PSD increment

violation, or to an adverse impact on an air

quality related value that has been identified for

a Federal Class I area by a Federal Land Man

ager and for which information is available to

the general public.

c. Except for the permit reopening in subsection

(G)(2)(a)(i) for the correction of typographical/cal

culation errors that do not increase the PAL level, all

other reopenings shall be carried out in accordance

with the public participation requirements of subsec

tion (D).

H. Expiration of a PAL. Any PAL that is not renewed in accor

dance with the procedures in subsection (I) shall expire at the

end of the PAL effective period, and the following require

ments shall apply.

Each emissions unit (or each group of emissions units)

that existed under the PAL shall comply with an allow

able emission limitation under a revised permit estab

lished according to the following procedures.

a. Within the time-frame specified for PAL renewals in

subsection (I)(2), the major source shall submit a

proposed allowable emission limitation for each

emissions unit (or each group of emissions units, if

such a distribution is more appropriate) by distribut

ing the PAL allowable emissions for the major

source among each of the emissions units that

existed under the PAL. If the PAL had not yet been

adjusted for an applicable requirement that became

effective during the PAL effective period, as would

be required under subsection (I)(5), such distribution

shall be made as ifthe PAL had been adjusted.

b. The Director shall decide how the PAL allowable

emissions will be distributed and issue a revised per

mit incorporating allowable limits for each emis

sions unit, or each group of emissions units, as the

Director determines is appropriate.

2, Each emissions unit(s) shall comply with the allowable

emission limitation on a 12-month rolling basis. The

Director may approve the use of monitoring systems

(source testing, emission factors, etc.) other than CEMS,

CERMS, PEMS, or CPMS to demonstrate compliance

with the allowable emission limitation.

3. Until the Director issues the revised permit incorporating

allowable limits for each emissions unit, or each group of

emissions units, as required under subsection (H)(l)(b),

the source shall continue to comply with a source-wide,

multi-unit emissions cap equivalent to the level of the

PAL emission limitation.

4. Any physical change or change in the method of opera

tion at the major source will be subject to the applicability

criteria set forth at subsection (C).

5. The major source owner or operator shall continue to

comply with any applicable requirements that may have

applied during the PAL effective period. Emission limita

tions that were eliminated by the PAL in accordance with

subsection (A)(2)(c) shall not be reinstated.

Renewal of a PAL.

The Director shall follow the procedures specified in sub

section (F) in approving any request to renew a PAL for a

major source, and shall provide both the proposed PAL

level and a written rationale for the proposed PAL level to

the public for review and comment During such public

review, any person may propose a PAL level for the

source for consideration by the Director.

2. Application deadline. A major source owner or operator

shall submit a timely application to the Director to

request renewal of a PAL. A timely application is one that

is submitted at least six months prior to, but not earlier

than 18 months from, the date of permit expiration. This

deadline for application submittal is to ensure that the

permit will not expire before the permit is renewed. Ifthe

owner or operator of a major source submits a complete

application to renew the PAL within this time period, then

the PAL shall continue to be effective until the revised

permit with the renewed PAL is issued.

3. Application requirements. The application to renew a

PAL pennit shall contain the following information.

a. The information required in subsections (B)(1)

through (3).

b. A proposed PAL level.

c. The sum of the potential to emit of all emissions

units under the PAL (with supporting documenta

tion).

d. Any other information the owner or operator wishes

the Director to consider in determining the appropri

ate level for renewing the PAL.

4. PAL adjustment. In determining whether and how to

adjust the PAL, the Director shall consider the options

outlined in subsections (l)(4)(a) and (b). However, in no

case may any such adjustment fall to comply with subsec

tion (I)(4)(c).

a. If the emissions level calculated in accordance with

subsection (F) is equal to or greater than 80% of the

PAL level, the Director may renew the PAL at the

same level without considering the factors set forth

in subsection (I)(4)(b); or

b. The Director may set the PAL at a level that the

Director determines to be more representative of the

source’s baseline actual emissions, or that the Direc

tor determines to be more appropriate considering

air quality needs, advances in control technology,

anticipated economic growth in the area, desire to

reward or encourage the source’s voluntary emis

sions reductions, or other factors as specifically

identified by the Director in the Director’s written

rationale.

c. Notwithstanding subsections (I)(4)(a) and (b):

i. If the potential to emit of the major source is

less than the PAL, the Director shall adjust the

PAL to a level no greater than the potential to

emit of the source; and

June 30, 2012 Page 71 Supp. 12-2
Title 18, Ch. 2 ArizonaAdininisirative Code

Department of Environmental Quality — Air Pollution Control

ii. The Director shall not approve a renewed PAL

level higher than the current PAL, unless the

PAL has been increased in accordance with

subsection (J).

5. If the compliance date for an applicable requirement that

applies to the PAL source occurs during the PAL effective

period, and if the Director has not already adjusted for

such requirement, the PAL shall be adjusted at the time of

PAL permit renewal or renewal of the source’s Class I

permit, whichever occurs first.

J. Increasing a PAL during the PAL effective period.

The Director may increase a PAL emission limitation

only ifthe following requirements are met:

a. The owner or operator of the major source shall sub

mit a complete application to request an increase in

the PAL limit for a PAL major modification. Such

application shall identify the emissions unit(s) con

tributing to the increase in emissions so as to cause

the major source’s emissions to equal or exceed its

PAL.

b. As part of this application, the major source owner

or operator shall demonstrate that the sum of the

baseline actual emissions of the small emissions

units, plus the sum of the baseline actual emissions

of the significant and major emissions units assum

ing application of BACT or LAER equivalent con

trols, plus the sum of the PAL allowable emissions

ofthe new or modified emissions unit(s) exceeds the

PAL. The level of control that would result from

BACT or LAER equivalent controls on each signifi

cant or major emissions unit shall be determined by

conducting a new BACT or LAER analysis at the

time the application is submitted, as applicable for

the particular PAL pollutant, unless the emissions

unit is currently required to comply with a BACT or

LAER requirement that was established within the

preceding 10 years. In such a case, the assumed con

trol level for that emissions unit shall be equal to the

level of BACT or LAER with which that emissions

unit must currently comply.

c. The owner or operator obtains a major NSR permit

for all emissions unit(s) identified in subsection

(J)(1)(a), regardless of the magnitude of the emis

sions increase resulting from them (that is, no signif

icant levels apply). These emissions unit(s) shall

comply with any emissions requirements resulting

from the major NSR process (for example, BACT),

even though they have also become subject to the

PAL or continue to be subject to the PAL.

d. The PAL permit shall require that the increased PAL

level shall be effective on the day any emissions unit

that is part of the PAL major modification becomes

operational and begins to emit the PAL pollutant.

2. The Director shall calculate the new PAL level as the sum

of the PAL allowable emissions for each modified or new

emissions unit, plus the sum of the baseline actual emis

sions of the significant and major emissions units (assum

ing application of BACT or LAER equivalent controls as

determined in accordance with subsection (J)(l)(b), plus

the sum of the baseline actual emissions of the small

emissions units.

3. The PAL permit shall be revised to reflect the increased

PAL level pursuant to the public notice requirements of

subsection (D).

K. Monitoring requirements for PALs.

General requirements.

a. Each PAL permit must contain enforceable require

ments for the monitoring system that accurately

determines plantwide emissions of the PAL pollut

ant in terms of mass per unit of time. Any monitor

ing system authorized for use in the PAL permit

must be based on sound science and meet generally

acceptable scientific procedures for data quality and

manipulation. Additionally, the information gener

ated by such system must meet minimum legal

requirements for admissibility in a judicial proceed

ing to enforce the PAL permit.

b. The PAL monitoring system must employ one or

more of the four general monitoring approaches

meeting the minimum requirements set forth in sub

sections (K)(2)(a) through (d) and must be approved

by the Director.

c. Notwithstanding subsection (K)(l)(b), the owner or

operator may also employ an alternative monitoring

approach if approved by the Director as meeting the

requirements of subsection (K)(1)(a).

d. Failure to use a monitoring system that meets the

requirements of this Section renders the PAL

invalid.

2. Minimum performance requirements for approved moni

toring approaches. The following are acceptable general

monitoring approaches when conducted in accordance

with the minimum requirements in subsections (K)(3)

through (9):

a. Mass balance calculations for activities using coat

ings or solvents,

b. CEMS,

c. CPMS or PEMS, and

d. Emission factors.

3. Mass balance calculations. An owner or operator using

mass balance calculations to monitor PAL pollutant emis

sions from activities using coating or solvents shall meet

the following requirements:

a. Provide a demonstrated means of validating the pub

lished content of the PAL pollutant that is contained

in or created by all materials used in or at the emis

sions unit;

b. Assume that the emissions unit emits all of the PAL

pollutant that is contained in or created by any raw

material or fuel used in or at the emissions unit, if it

cannot otherwise be accounted for in the process;

and

c. Where the vendor of a material or fuel, which is

used in or at the emissions unit, publishes a range of

pollutant content from such material, the owner or

operator must use the highest value of the range to

calculate the PAL pollutant emissions unless the

Director determines there is site-specific data or a

site-specific monitoring program to support another

content within the range.

4. CEMS. An owner or operator using CEMS to monitor

PAL pollutant emissions shall meet the following require

ments:

a. CEMS must comply with applicable Performance

Specifications found in 40 CFR 60, Appendix B;

and

b. CEMS must sample, analyze and record data at least

every 15 minutes while the emissions unit is operat

ing.

5. CPMS or PEMS. An owner or operator using CPMS or

PEMS to monitor PAL pollutant emissions shall meet the

following requirements:

Supp. 12-2 Page 72 June 30, 2012
Arizona Administrative Code Title 18, Ch. 2

Department ofEnvironmental Quality —Air Pollution Control

a. The CPMS or the PEMS must be based on current

site-specific data demonstrating a correlation

between the monitored parameter(s) and the PAL

pollutant emissions across the range of operation of

the emissions unit; and

b. Each CPMS or PEMS must sample, analyze, and

record data at least every 15 minutes, or at another

less frequent interval approved by the Director,

while the emissions unit is operating.

6. Emission factors. An owner or operator using emission

factors to monitor PAL pollutant emissions shall meet the

following requirements:

a. All emission factors shall be adjusted, if appropriate,

to account for the degree of uncertainty or limita

tions in the factors’ development;

b. The emissions unit shall operate within the desig

nated range of use for the emission factor, if applica

ble; and

c. If technically practicable, the owner or operator of a

significant emissions unit that relies on an emission

factor to calculate PAL pollutant emissions shall

conduct validation testing to determine a site-spe

cific emission factor within six months of PAL per

mit issuance, unless the Director determines that

testing is not required.

7. A source owner or operator must record and report maxi

mum potential emissions without considering enforceable

emission limitations or operational restrictions for an

emissions unit during any period of time that there is no

monitoring data, unless another method for determining

emissions during such periods is specified in the PAL

permit.

8. Notwithstanding the requirements in subsections (K)(3)

through (7), where an owner or operator of an emissions

unit cannot demonstrate a correlation between the moni

tored parameter(s) and the PAL pollutant emissions rate

at all operating points of the emissions unit, the Director

shall, at the time of permit issuance:

a. Establish default value(s) for determining compli

ance with the PAL based on the highest potential

emissions reasonably estimated at such operating

point(s), or

b. Determine that operation of the emissions unit dur

ing operating conditions when there is no correlation

between monitored parameter(s) and the PAL pollut

ant emissions is a violation of the PAL.

9. Re-validation. All data used to establish the PAL pollut

ant must be re-validated through performance testing or

other scientifically valid means approved by the Director.

Such testing must occur at least once every five years

after issuance of the PAL.

L. Recordkeeping requirements.

The PAL permit shall require an owner or operator to

retain a copy of all records necessary to determine com

pliance with any requirement of this Section and with the

PAL, including a determination of each emissions unit’s

12-month rolling total emissions, for five years from the

date of such record.

2. The PAL permit shall require an owner or operator to

retain a copy of the following records for the duration of

the PAL effective period plus five years:

a. A copy ofthe PAL permit application and any appli

cations for revisions to the PAL, and

b. Each annual certification of compliance pursuant to

RI 8-2-309(2) and the data relied on in certifying

compliance.

M. Reporting and notification requirements. The owner or opera

tor shall submit semi-annual monitoring reports and prompt

deviation reports to the Director in accordance with RI 8-2-

306(A)(5). The reports shall meet the following requirements:

Semi-annual report. The semi-annual report shall be submiffed to the Director within 30 days of the end of each

reporting period. This report shall contain the following

information:

a. The identification of owner and operator and the

permit number.

b. Total annual emissions (tons/year) based on a 12-

month rolling total for each month in the reporting

period recorded pursuant to subsection (L)( 1).

c. All data relied upon, including, but not limited to,

any Quality Assurance or Quality Control data, in

calculating the monthly and annual PAL pollutant

emissions.

d. A list of any emissions units modified or added to

the major source during the preceding six-month

period.

e. The number, duration, and cause of any deviations

or monitoring malfunctions (other than the time

associated with zero and span calibration checks),

and any corrective action taken.

f. A notification of a shutdown of any monitoring sys

tem, whether the shutdown was permanent or tem

porary, the reason for the shutdown, the anticipated

data that the monitoring system will be fully opera

tional or replaced with another monitoring system,

and whether the emissions unit monitored by the

monitoring system continued to operate, and the cal

culation ofthe emissions ofthe pollutant or the num

ber determined by method included in the permit, as

provided by subsection (K)(7).

g. A certification by the responsible official consistent

with Ri 8-2-304(H).

2. Deviation report. The major source owner or operator

shall promptly submit reports of any deviations or

exceedance of the PAL permit requirements, including

periods where no monitoring is available, in accordance

with Rl8-2-306(A)(5). The reports shall contain the fol

lowing information:

a. The identification of owner and operator and the

permit number,

b. The PAL permit requirement that experienced the

deviation or that was exceeded,

c. Emissions resulting from the deviation or the

exceedance, and

d. A certification by the responsible official consistent

with R18-2-304(H).

3. Re-validation results. The owner or operator shall submit

to the Director the results of any re-validation test or

method within three months after completion of such test

or method.

Historical Note

New Section made by final rulemaking at 18 A.A.R.

1542, effective August 7, 2012 (Supp. 12-2).

RTICLE 5. GENERAL PERMI

R18-2-501, Ap cability

A. The Director may ener ermits for a facility class that

contains 10 or more fac that are similar in nature, have

substantially simil missions, would be subject to the

same or sub ally similar require ts governing opera

tions, e sions, monitoring, reporting, or recordkeeping.

June 30, 2012 Page 73 Supp. 12-2