Title 18, Ch. 2 ArizonaAdministrativeCode

ARTICLE 4. PERMIT REQUIREMENTS FOR NEW MAJOR SOURCES AND MAJOR MODIFICATIONS TO EXISTING

MAJOR SOURCES

R18-2-401. Definitions The following definitions applyto this Article: “Adverse impact on visibility” means visibility impair ment that interferes with the management, protection. preservation, or enjoyment ofthe visitor’s visual experi

ence ofa Class I 

### area, as determined according to RI8-2- 410. 2. “Baseline actual emissions” means the rate ofemissions, 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 peryear, atwhich 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 ofthe project. The Director shall allow the use ofa differ ent time period upon a determination that it is more representative ofnormal 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. Theaverage rate shall be adjusted downwardto 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 forthe emissions units being changed. A different con secutive 24-month period can be used for each regulated NSR pollutant, iv. The average rate shall notbe 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 ifrequired by subsection (2)(a)(ii). b. For any existing emissions unit (otherthan an elec tric utility steam generating unit), baseline actual emissions meansthe average rate, in tons peryear, at which the unit actually emitted the pollutant during any consecutive 24-month period selected by the

owneroroperatorwithin the 10-yearperiod immedi ately preceding eitherthe datethe owneroroperator begins actual construction ofthe project, orthe 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 earlierthan 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 downwardto exclude any emissions that would have exceeded an emission limitation with whichthe major source must currently comply, had such major source been required to comply with such limitations during the consecutive 24- month period. However, ifan emission limita tion is part of a maximum achievable control technology standard thattheAdministratorpro posed or promulgated under 40 CFR 63, the baselineactual emissions need only be adjusted ifthe state ofArizona 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 bebased 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. Fora PALforastationary 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 ofEnviron ental Quality

—Air Pollution Control

tions shall be included in subsequent permit re als unless modified pursuantto this Section orArticle this Chapter. K. uance ofa permit or permit revi& under this Section shall not ~eve the owner or opera ofthe responsibility to comply fully applicable p isions ofthe SIP and any other requirements un bc

, state, orfederal law. L. Delayed Effective Date. ection shall take effect on the effective date ofthe inistrato ction approving itas part ofthe state impl entation plan.

Historical Note Ne ection made byfinal rulemaking at 18 A.A.R. 1542, effectiveAugust 7, 2012 (Supp. 12-2).

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mum hourly electric output rate and maximum steam flow rate. When establishing fuel consump tion specifications in terms ofweight orvolume, the minimum fuel quality based on Btu content shall be used fordetermining the basicdesign parameters for

a coal-fired electric utility steam generating unit. b. Except as provided in subsection (3)(c), the basic design parametersforany process unitthat is not ata steam electric generating facility are maximum rate of fuel or heat input, maximum rate of material input, or maximum rate ofproduct output. Combus tion process units will typically use maximum rate offuel input. For sources having multiple end prod ucts and raw materials, the owneroroperatorshould 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 foraspecific industry ortype ofprocess unit, the owner or operator may propose to the Director an alternative basic design parameters for the source’s process unit. Ifthe Directorapproves of the use ofan 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 ofhistoric 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, thatappliesto the process unit and that is legally enforceable. 4. “Complete” means, in reference to an application for a permit orpermit revision, thatthe application contains all the information necessaryforprocessing the application. 5. “Dispersion technique” means any technique that attempts to affect the concentration ofa pollutant in the ambient air by any ofthe following:

a. Usingthat portion ofastackthatexceeds good engi neering practice stack height; b. Varying the rate ofemission ofapollutant according to atmospheric conditions orambient concentrations ofthat 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 ofexhaust gas streams that increases the exhaust gas plume rise. This shall not include any ofthe following: i. The reheating ofa 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 thefacility gen erating the gas stream. ii. The merging ofexhaust gas streams under any ofthefollowing conditions: (1) The source owner or operator demon strates that the facility was originally designed and constructed with the merged gasstreams; (2) AfierJuly 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 forthatpollutant; or (3) Before July 8, 1985, the merging was part ofa change in operation atthe facilitythat included the installation ofemissions 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 creditforthe effects ofthe 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 ifthe resulting allowable emissions ofsulfurdioxidefrom thefacility do not exceed 5,000tons peryear. 6. “Existing emissions unit” is any emissions unit that is currently in existence and that is not a new emissions unit. A replacementunit is an existing emissions unit. 7. “High terrain” means any area having an elevation of900 feetor more abovethebase ofthe stack ofasource. 8. “Innovativecontrol technology” means any system ofair pollution control that has not been adequately demon strated in practice butwould have asubstantial likelihood ofachieving greater continuous emissions reduction than any control system in current practice, or ofachieving at least comparable reductions at lower cost in terms of energy, economics, or i~onair quality environmental impacts. 9. “Lowterrain” means any area otherthan high terrain. 10. “Lowest achievable emission rate” (LAER) means, for any source, the more stringent rate ofemissions based on
one ofthe following:

a. The most stringent emissions limitation that is con tained in any implementation plan approved or pro mulgated under sections 110 or 172 ofthe Act for the class or category ofstationary source, unless the

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owner or operator ofthe proposed stationary source demonstrates thatthe 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 ofthis 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 inArticles 9 and 11 ofthis Chapter. 11 “Majorsource” means:
a. Any stationary source located in a nonattainment

areathat 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 ofthe 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 ifthe 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 sourcethat emits, or has the potential to emit, five or more tons oflead peryear; d, A major source that is major for 

### VOC or nitrogen oxides shall be considered majorforozone; or e. The fugitive emissions of a stationary source shall not be included in determining for any of the pur poses ofthis Section whether it is a majorstationary
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 lessthan twoyearsfrom the date such emissions unitfirst 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 emitthe PAL pollutant, expressed in tons per year, for a pollutant at a major
source, that is enforceable as apractical matter and estab lished source-wide in accordance with this Section. 14. “PALallowable emissions” means “allowable emissions”

as defined in RI 8-2-101, except that the allowable emis sions for any emissions unit shall be calculated consider ing any emission limitations that are enforceable as a practical matteron the emissions unit’s potential to emit. 15. PAL effective date generally means the date ofissuance ofthe PAL permit. However, the PAL effective date for

an increased PAL is the date any emissions unit that is part ofthe PAL major modification becomes operational and beginsto emitthe PAL pollutant. 16. “PAL effective period” means the period beginning with the PAL effective date and ending 10years later. 17. “PAL major modification” means any physical change in

or change in the method ofoperation ofthe PAL source that causes it to emitthe PAL pollutant ata level equal to

orgreater thanthe PAL. 18. “PAL permit” means the permit issued by the Director that establishes a PALforamajor 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 peryear, atwhich

an existing emissions unit is projected to emit a reg ulated NSR pollutantduring any 12-month period in the 60 calendar months following the date the unit

resumes regular operation aftertheproject, 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 ofanyemissions unitforthat regulated NSR pollutantandfull utiliza tion ofthe unit would result in a significant emis sions increase or asignificant net emissions increase atthe major source. b. In determining the projected actual emissions before beginning actual construction, the owneroroperator ofthe 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 orfederal regulatory authorities, and com pliance plans underthese 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 amalfunction; and iv. Shall exclude, only for calculating any increase in emissions that results from the particular project, that portion ofthe unit’s emissions fol lowing the project that an existing unit could have accommodated duringthe consecutive24- 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 usethe emissions unit’s potential to emit, in tonsperyear. 21. “Reconstruction” of sources located in nonattainment

areas shall be presumed to have taken place ifthe fixed capital cost ofthe new components exceeds 50% ofthe fixed capital cost ofa comparable entirely new stationary Pollutant Emitted Nonattainment

Pollutant and Classification
Carbon Monoxide (CO) QuantityThreshold tons/yearor more

50 

### CO, Serious, if 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

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source, as detennined in accordance with the provisions of40 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 ofan 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 ofthe 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 permitthat 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, orotherwise separating and prepar ing solid waste for reuse. Only energy conversion facili ties that utilize solid waste that provides more than 50% ofthe heat input shall be considered a resource recovery project underthis Article. 24, “Significant emissions unit” means an emissions unitthat emits or has the potential to emit a PAL pollutant in an amount that is equal to or greater than the significant level forthat PAL pollutant, but less than the amountthat would qualif~’ the unitas a majoremissions unit. 25. “Significance levels” means the following ambient con centrationsforthe 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 forthatPAL pollut ant.

Historical Note Adopted effective May 14, 1979 (Supp. 79-1). Amended effective October2, 1979 (Supp. 79-5). Former Section R9-3-40l renumberedwithout change as Section R18-2- 401 (Supp. 87-3). Section R18-2-401 renumberedto RI8- 2-601. New Section RI8-2-401 adopted effective November 15, 1993 (Supp. 93-4). Amended byfinal rule making at5A.A.R. 4074, effective September22, 1999 (Supp. 99-3). 1~’pographical errorcorrected in R18-2- 401(9)(a) (Supp. 00-4). Amended byfinal rulemaking at 13 A.A.R. 1134, effective May 5, 2007 (Supp. 07-1). Amended byfinal rulemaking at 18A.A.R. 1542, effec

tiveAugust 7, 2012 (Supp. 12-2).

R18-2-402. General A. The preconstruction review requirements ofthis Article shall apply to the construction of any new major source or any project atan existing majorsource. B. The requirements of R18-2-403 through R18-2-4l0 apply to the construction ofa major source or a major modification of any existingstationary 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 thatthe major source or major modification shall meetthose 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 amajor modification for a regulated NSR pollutant ifit

causes both asignificantemissions 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 amajormodification only ifit also results in asignificantnet emissionsincrease. 2. The procedure for calculating before beginning actual construction whetherasignificantemissions increasewill

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 occuratthe majorsource is setforth 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 increaseand asignificant netemissions 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 ifthe sum ofthe difference between the projected actual emissions and the baseline actual emis sions, for each existing emissions unit, equals or exceeds the significantamountforthatpollutant. 4. Actual-to-potential applicabilitytestforprojectsthat only involve new emissions units. A significant emissions increase of a regulated NSR pollutant is projected to

occur ifthesum ofthe differencebetweenthe potential to emitfrom each new emissions unit following completion ofthe project and the baseline actual emissions ofthese units before the project equals or exceeds the significant amountforthatpollutant. 5. [Reserved.] 6. Hybrid applicability test for projects that involve both

new emissions units and existing emissions units. A sig nificant emissions increase ofa regulated NSR pollutant is projectedto 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 ofthe above pollutant is exceeded

more than once peryear at any one location. Ifthe 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.

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subsection (D)(4), as applicable with respect to each emissions unit, equals or exceeds the significant amount forthat pollutant. E. Any major source with a PAL for a regulated NSR pollutant shall comply with Ri8-2-412. F. This subsection applies with respectto anyregulated NSR pol lutant emitted from projects at existing emissions units at a major stationary source (otherthan projects at a source with a PAL) in circumstances where there is a reasonable possibility, within the meaning ofsubsection (F)(6) ofthis Section, that a projectthat is notapart ofamajormodification mayresult in a significant emissions increase ofsuch pollutant and the owner
or operator elects to use the method specified in R18-2- 401(20)(b)(i) through (iv) ofthe definition ofprojected actual emissions for calculating projected actual emissions. Before beginning actual construction of the project, the

owner or operator shall document and maintain a record ofthe 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 ofthe applicability test used to deter mine thatthe 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, ifapplicable. 2. Ifthe emissions unit is an existing electric utility steam generating unit, before beginning actual construction, the

owneror operatorshall provide a copy ofthe information set out subsection (F)(I) to the Director. Nothing in this subsection shall be construed to require the owner or operator ofsuch a unit to obtain any determination from the Directorbefore beginning actual construction. 3. The owner or operatorshall monitorthe emissions ofany regulated NSR pollutantthat could increase as a result of the projectand that is emitted by any emissions unit iden tified in subsection (F)(1)(b); and calculate and maintain

arecord ofthe annual emissions, in tons peryearon a cal endar year basis, for a period of five years following resumption ofregularoperations afterthe change, orfora period of 10yearsfollowing resumption ofregularopera tions after the change ifthe project increases the design capacity orpotential to emit ofthat 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 iffor a calendaryearthe annual emissions, in tons per year, from the project identified in subsection (F)(l)(a) exceed the sum ofthe 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 differfrom the preconstruction projection

as documented and maintained under subsection (F)(l)(c). The owneroroperatorshall submitthe reportto the Director within 60 days after the end ofthe calendar year. The report shall contain the following: a. The name, address and telephone number of the majorsource; b. The annual emissions as calculated pursuantto 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 asto why the emissions differfrom 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 calendaryearthat preceded submis sion ofthe report. 6. A “reasonable possibility” under subsection (F) occurs whenthe owneroroperatorcalculatesthe projectto result in one ofthe 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) forthe regulated NSR pollutant. b. A projected actual emissions increase that, added to the amount ofemissions excluded under subsection Rl8-2-40l(20)(b)(iv) of the definition of projected actual emissions, sumsto 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) forthe regulated NSR pollutant. For

a project for which a reasonable possibility occurs only within the meaning ofsubsection (F)(6)(b), and not also within the meaning ofsubsection (F)(6)(a), subsections (F)(2) through (5) do not apply to the project. G An application for apermit or permit revision underthis Arti cle, other than a PAL permit pursuantto RI8-2-412, shall not be considered complete unless the application demonstrates that:

2. The requirements in subsection (H) are met; The more stringent ofthe applicable new source perfor

mance standards in Article 9 ofthis Chapterorthe exist ing source performance standards in Article 7 of this Chapterare applied to the proposed new major source or majormodification ofa majorsource; 3. The visibility requirements contained in R18-2-410 are satisfied; 4. All applicable provisions ofArticle 3 ofthis 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 combinationthereofis applicableto 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 ofGEP stackheight except as provided in Rl8-2-332; or b. Any otherdispersiontechnique, unless implemented priorto 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;

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7. The new major source or major modification will not exceed the limitations, if applicable, on emission from nonpoint sources contained in Article 6 ofthis Chapter; 8. A stationary source that will emit five or more tons of lead peryearwill notviolate the ambient airquality 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 accordingto 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 ofthe geographical area for which

an air quality impact analysis isto 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 forthe permit orpermit 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 toterrain and atmospheric stability conditionswhich

are comparable or which may be extrapolated with reasonable accuracy for use in such demonstration. Unlessthe requirement has been satisfied pursuantto Article 3 of this Chapter, the Director shall comply with following requirements: I. Within 60 days afterreceipt ofan application forapermit

or permit revision subject to this Article, or any addition to such application, the Directorshall advisethe applicant ofany deficiency. The date of receipt ofthe application shall be, forthe purpose ofthis Section, the date on which the Director received all required information. The permit application shall not be deemed complete ifthe Director failsto meetthe requirements ofthis subsection. 2. A copy ofany 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, ifone exists, forthe county wherein the proposed or existing source that is the subject ofthe permit or permit revision appli cation is located; b. The county managerforthe county wherein the pro posed or existing source that is the subject of the permit orpermit revision application is located;

c. The city ortoWn managers ofthe city ortown which contains, and any city or town the boundaries of which are within 5 miles of, the location ofthe pro posed or existing source that is the subject of the permit orpermit 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 permitor 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 ofhis approval ordenial. 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

owneror operatordoes not commence the proposed con struction ormajormodification within 18 months ofissu

ance or if, during the construction ormajor modification, the owner or operator suspends work for more than 18 months. The Director may extend the 18-month period upon asatisfactory showing thatan extension isjustified. This provision does not apply tothe time period between construction ofthe approvedphases ofaphased construc tion project; each phase must commence construction within 18 months of the projected and approved com mencementdate.

Historical Note Amended effectiveAugust6, 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 adoptedbyreference Open Burning Guidelinesfor Air Pollution Control effective September22, 1983 (Supp. 83.5). Former Section R9-3-402 renumbered without change as Section R18-2-402 (Supp. 87-3). Sec tion RI8-2-402renumberedto Rl8-2-602, new Section R18-2-402 adoptedeffective November 15, 1993 (Supp. 93-4). Amended byfinal rulemaking at 18 A.A.R. 1542, effectiveAugust 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 orpermitrevision shall be issued underthisArticle to a person proposing to construct a new major source or make a majormodification thatis majorforthe pollutantforwhich the

area is designated nonattainmentunless: 1. The person demonstrates thatthe new majorsource orthe major modification will meet an emission limitation which isthe lowest achievable emission rate (LAER) for that sourceforthat 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 stateare in compliancewith, oron asched ule ofcompliance for, all conditions contained in permits of each ofthe sources and all other applicable emission limitations and standards undertheAct and this Chapter. 3. The person demonstrates thatemission reductions forthe specific pollutant(s) from source(s) in existence in the allowable offset area ofthe new major source or major modification (whether or not under the same ownership) meetthe offset requirements ofRi8-2-404. B. No permit orpermit revision underthis Article shall be issued to aperson proposingto construct anew majorsource ormake

a major modification to a major source located in a nonattain mentareaunless: 1. The person performs an analysis of alternative sites, sizes, production processes, and environmental control techniques for such new majorsource ormajor modifica tion; and 2. The Director determines that the analysis demonstrates thatthebenefits ofthe new majorsourceormajormodifi cation significantly outweigh the environmental and social costs imposed as a result of its location, construc tion, ormodification.

June 30, 2012 Page 63 Supp. 12-2Title 18, Cli. 2 ArizonaAdministrativeCode DepartmentofEnvironmental Quality

—AirPollution Control

C. At such time that a particularsource or modification becomes

a major source or major modification solely by virtue of a relaxation in any enforceable limitation which was established afterAugust 7, 1980, on the capacity ofthe source or modifi cation otherwise to emit a pollutant, such as restriction on hours ofoperation, then the requirements ofthis Section shall applyto the source or modification as though construction had notyet commenced on the source ormodification. D. Secondary emissions shall not be considered in determining the potential toemitofanew sourceormodification andthere fore whether the new source or modification is major. How
ever, ifa new source or modification is subject to this Section

on the basis ofits 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 bythe 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 forfugitive 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, totheextent quantifiable, are considered in calculating the potential emissions ofthe source or modifica tion, and the source does not belong to a section 302(j) cate gory. F. The requirements ofsubsection (A)(3) shall not applyto tem porary emissions units, such as pilot plants, portable facilities thatwill be relocated outside ofthe nonattainmentareaand the construction phase ofa new source, ifthose 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 ofthat 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 orpermit revision underthis Article orthe state has not relied on it in demonstrating attainment or reasonable furtherprogress. H. Within 30 days ofthe issuance ofany permit under this Sec tion, the Director shall submit control technology information from the permitto the Administratorforthe purposes listed in Section 173(d) oftheAct The issuance ofa permit or permit revision under this Article in accordance with this Section shall not relieve the owner or operator ofthe responsibility to comply fully with applicable provisions ofthe SIP and any other requirements under local, state, orfederal 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 Rl8-2-403 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 ofeach pollutantforwhich the area has been designated as nonattainment and forwhich 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 ofat least Ito I. B. Except as provided in subsection (B)(l) or(2), forsources and modifications subject to this Section, the baseline for deter mining credit for emissions reductions is the emissions limit forthe source generating the offset credit underthe applicable implementation plan in effect at the time the application for a permit orpermitrevision is filed. I. The offset baseline shall be the actual emissions ofthe

sourcefrom which offset credit is obtained where either ofthe following conditions is satisfied:

a. The demonstration of reasonable further progress and attainment of ambient air quality standards is based upon the actual emissions ofsources 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 forthatsource orsource category. 2. Where the emissions limit under the applicable imple mentation plan allows greater emissions than the poten tial to emit ofthe source, emissions offset credit will be allowedonly for control belowthis potential. C. For an existing fuel combustion source, emissionsoffset credit shall be based on the allowable emissions underthe applicable implementation plan for the type offuel being burned at the time the application to construct is filed. Ifthe 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 conditionedto requirethe use ofa speci fied alternative control measurewhichwould achievethe same degree ofemissionsreduction shouldthe source switch backto

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 forfuel switches. D. Offset CreditforShutdowns. 1. Emissions reductions achieved byshuttingdown an exist ing emission unit or curtailing production or operating hours may be credited for offsets ifthey meet both ofthe following conditions.

a. The reductions are surplus, permanent, quantifiable, andfederally enforceable. b. The shutdown or curtailment occurred after the last day ofthe 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 afterthe last day ofthe baseyear 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 August7, 1977. 2. Emissions reductions achieved byshutting down an exist ing emissions unit or curtailing production or operating hours and that do not meetthe requirements in subsection (D)(I)(b) may be credited only if one of the following conditions issatisfied:

a. Theshutdown orcurtailment occurred on orafterthe datethe construction permit application isfiled. b. The applicant can establish that the proposed new emissions unit is a replacement forthe shutdown or curtailed emissions unit, and the emissions reduc

Supp. 12-2 Page 64 June 30, 2012ArizonaAdministrative Code Title 18, Ch 2 Department ofEnvironmental Quality—AirPollution Control

tions achieved by the shutdown or curtailment met the requirements ofsubsection (D)(1)(a). It. No emissions credit may be allowed for replacing one hydro carbon compound with another oflesser 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
oroperatorofthe majorsource subjecttothis Section and shall be in effect by the time the new or modified source subject to the permit commences operation. G The owneroroperator ofa majorsourceor 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 creditsfrom anothernonattainment area ifboth of the following conditions are satisfied: I. The other area has an equal or higher nonattainment clas sification than the areain which the source is located. 2. Emissions from such other area contribute to a violation ofthe national ambient air quality standard in the nonat tainmentarea 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 orthe state has not relied on it in a demon stration ofattainmentor reasonable furtherprogress. 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 afterthe modification and the actual emissions before the modification for each emissions unit. J. In ozone nonattainment areas classified as marginal, total emissions ofVOC and oxides of nitrogen from other sources shall offsetthose proposed or permitted from the majorsource
or major modification by a ratio ofat 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 ofat least 

### 1.15 to 1. New majorsources and major modifications in serious and severe ozone nonat tainmentareas 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 beredwithoutchangeas 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 byfinal rulemaking at 5 A.A.R. 4074, effective September22, 1999 (Supp. 99-3). Amended byfinal rulemaking at8A.A.R. 1815, effective March 18, 2002 (Supp. 02-I). Amended byfinal rule making at 18 A.A.R. 1542, effective August7, 2012

(Supp. 12-2).

R18-2-405. Special Rule for Major Sources ofVOC or Nitro gen Oxides in Ozone NonattainmentAreas Classified as Serious

or Severe A. Applicability. The provisions ofthis Section only apply to sta tionaiy sources ofVOC or nitrogen oxides in ozone nonattain ment areas classified as serious or severe. Unless otherwise provided inthis Section, all requirements ofArticles 3 and 4 of this Chapterapply. B. “Significant” means, forthe purposes ofa major modification ofany major stationary source ofVOC or nitrogen oxides, or for determining whether an otherwise minor source is major underthe definition ofmajor source in R18-2-401, any physi cal change orchange inthe method ofoperationsthatresults in net increases in emissions ofeither pollutant by more than 25 tons when aggregated with all other creditable increases and decreases in emissions from the source overthe 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 ofnitrogen, 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 oroperator ofthe source elects to offsetthe increase by

agreater reduction in emissions ofVOC or oxides ofnitrogen,

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. Forany stationary sourcethatemitsorhasthe 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 VOCfrom anydiscreteoperation, unitorotherpol 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 agreater reduction in emissions ofVOC or oxides of nitrogen, as applicable, from other operations, units or activitieswithin the source atan internal offset ratio ofat least 1.3 to 1, R18-2-403(A)(l) shall notapplytothe change. It. For any newmajor source or majormodification that is classi fied as majorbecause ofemissions orpotential to emitVOC or nitrogen oxides in an ozone nonattainment area classified as serious, the increase in emissions ofthese pollutants from the

source or modification shall be offsetata ratio of 1.2to I. The offsetshall be made in accordancewith the provisions ofRI 8- 

### 2-404. F. Forany newmajor source or major modification thatis classi fied as such because ofemissions or potential to emit VOC or nitrogen oxides in an ozone nonattaininent area classified as severe, the increase in emissions ofthese 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 ofR18-2-404.

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 October2, 1979 (Supp. 79-5). FormerSection 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 RI8-2-405 adopted effectiveNovember 15, 1993 (Supp. 93-4). Amended byfinal rulemakingat5A.A.R. 4074, effective September22, 1999 (Supp. 99-3). Amended by final nilemaking at 18 A.A.R. 1542, effectiveAugust 7,2012

(Supp. 12-2).

June 30, 2012 Page 65 Supp. 12-2Title 18, Ch. 2 ArizonaAdministrative Code DepartmentofEnvironmental Quality

—AirPollution 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 underthisArticle shall be issued to aperson pro posing to construct a new major source or make a major modification to a majorsourcethatwould be constructed in an
area designated as attainment or unclassifiable for any regu lated NSR pollutant unless the source or modification meets thefollowing conditions: A new major source shall apply best available control technology (BACT) foreach regulated NSR pollutantfor which the potential to emit is significant. 2. A major modification shall apply BACT for each regu lated NSR pollutantforwhich 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 ofoperation inthe 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 ofthe project. At such time the owner
or operator of the applicable stationary source may be required to demonstrate the adequacy of any previous determination ofBACTforthe 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 ortreatment, clean fuels, or innovative fuel combustion techniques, for control ofsuch pollutant. In

no event shall such application of BACT result in emis sions ofany 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 ofthis 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 ofsuch design, equipment, work practice, oroperation and shall provideforcompliance 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 ofnitrogen oxides and PM10:

a. Would not cause or contribute to concentrations of conventional air pollutants in violation ofany ambi entairqualitystandard in Article 2 ofthis Chapter in any air quality control region orany applicable max imum allowable increase under Rl8-2-2l8 over the baseline concentration for any attainment or unclas sified area; or b. Would not contribute to an increase in ambient con centrations for apollutant 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 ofthe 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 majorsource or majormodification ifitcan be satis factorily demonstratedtothe Directorthat emissions of volatile organic compounds or nitrogen oxides from the new major source or major modification will not contributetoviolations oftheArizonaambi entairqualitystandards forozone in adjacent nonat tainmentareasforozone. Such ademonstration shall include a showing that topographical, meteorologi cal, or other physical factors in the vicinity ofthe

new major source or major modification are such thattransport ofvolatile 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 mentsspecified in 40 CFR 51, AppendixW, “Guide lineOnAirQuality Models,” as ofJuly 1, 2011 (and

no future amendments or editions), which shall be referred to hereinafteras “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 changeshall be subjectto notice and opportunity for public comment Written approval of the EPA Administratorshall be obtainedforany modification
orsubstitution. B. The requirements of this Section shall not apply to a new majorsource ormajor modification to asource with respect to

a particular pollutant ifthe person applying for the permit or permit revision underthis Article demonstrates that, as to that pollutant, the source or modification is located in an area des ignated as nonattainmentforthe pollutant. C. The requirements of this Section shall not apply to a new majorsource or amajormodification ifsuch source ormodifi cation would be a majorsource or major modification only if fugitiveemissions, totheextentquantifiable, are considered in calculating the potential emissions ofthe 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

ownerofsuch source is a nonprofit health oreducational insti tution. E. The requirements ofthis Section shall not apply to a portable

source which would otherwise be anew majorsource or major modification to an existing source ifsuch portable source will operate for no more than 24 months, is under a permit or per mit revision underthis Article, is in compliance with the con ditions ofthatpermit or permit revision under thisArticle, the emissions from the source will not impactaClass I areanoran

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

—Air Pollution Control

area where an applicable increment is known to be violated, and reasonable notice is given tothe Director priortothe relo cation identif~’ing the proposed new location and the probable duration ofoperation at the new location. Such notice shall be given tothe Director not lessthan 10 calendardays in advance ofthe proposed relocation unless a different time duration is previously approved bythe 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 ofany 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 underthis Article shall be denied. 2. Ifthe owner or operator ofa proposed new major source
or a source for which major modification is proposed demonstrates to the Federal Land Managerthatthe emis sions attributableto such majorsource ormajormodifica 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 majorsource 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 centrationsforsuch pollutants:

Maximum Pollutant allowable increase

(micrograms percubic meter)
PM25:
Annual arithmetic mean 4
24-hr maximum 9
PM1 0:
Annual arithmetic mean 17
24-hrmaximum 30
Sulfur dioxide:
Annual arithmetic mean 20
24-hrmaximum 91
3-hr maximum 325 Nitrogen dioxide
Annual arithmeticmean 25

G. The issuance ofa permit or permit revision under this Article in accordance with this Section shall not relieve the owner or operator ofthe responsibility to comply fully with applicable provisions ofthe SIP and any other requirements under local, state, orfederal law. H. At such timethat 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 afterAugust 7, 1980, on the capacity ofthe source or modifi cation otherwise to emit a pollutant, such as a restriction on hours ofoperation, then the requirements ofthis Section shall applyto the source or modification as though construction had notyetcommenced onthe source or modification.

Historical Note FormerSection R9-3-405, renumbered effective Septem ber 17, 1975 (Supp. 75-1). FormerSection R9-3-406 repealed, new Section R9-3-406 adopted effective May 14, 1979 (Supp. 79-I). FormerSection R9-3-406 renum bered withoutchangeas Section R18-2-406 (Supp. 87-3). Section RI8-2-406 renumberedto 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 18A.A.R. 1542, effective August7, 2012 (Supp. 12-2).

R18-2-407. Air Quality Impact Analysis and Monitoring Requirements A. Any application forapermit orpermit revision underthisArti cleto construct anew majorsource ormajormodification to a majorsourceshall contain an analysis ofambient airquality in the area that the new major source or major modification would affectforeach ofthefollowing pollutants: 1. Forthe newsource, each pollutant that it would have the potential to emit in asignificant amount; 2. For the modification, each pollutant for which it would result in a significant netemissions increase. B. With respectto any such pollutant forwhich noArizona ambi ent air quality standard exists, the analysis shall contain all air quality monitoring dataasthe Directordetermines is necessary to assess ambientairquality forthat pollutant in any areathat the emissions ofthe pollutant would affect. C. With respect to any such pollutant (other than nonmethane hydrocarbons) forwhich such astandard does exist, the analy sis shall contain continuous air quality monitoring data gath ered for purposes of determining whether emissions of that pollutantwould cause or contribute to a violation ofthe stan dard orany maximum allowable increase. D. In general, the continuous air quality monitoring data that is required shall have been gathered over aperiod ofat leastone year and shall represent at least the year preceding receipt of the application, except that, ifthe Director determines that a complete and adequate analysis can be accomplished with monitoring data gathered over a period shorter than one year (but notto be less than four months), the data that is required shall have been gathered overat leastthatshorterperiod. E. The owneroroperator ofaproposed stationarysource ormod ification to asource ofvolatile organic compounds who satis fies all conditions of40 CFR 51, Appendix S, Section IV, may provide post-approval monitoring dataforozone in lieu ofpro viding preconstruction data as required under subsections (B), (C), and (D) above. F. Post-construction monitoring. The owneror operator ofa new majorsourceor major modification shall, afterconstruction of the source or modification, conduct such ambient monitoring

as the Director determines is necessaryto determine the effect

June 30, 2012 Page 67 Supp. 12-2Title 18, Cli. 2 ArizonaAdministrativeCode

emissions from the new source or modification may have, or
are having, on airquality in any area. G Operations ofmonitoring stations. The owner or operator ofa
new major source or major modification shall meet the requirements of40 CFR 58, Appendix B, during the operation of monitoring stations for purposes of satisf~’ing subsections (B) through (F) above. H. The requirements ofsubsections (B) through (0) above shall not apply to a new major source or major modification to an existing source with respectto monitoring fora particularpol lutant if: 1. The emissions increase of the pollutant from the new
source orthe net emissions increase ofthe pollutant from the modification would cause, in any area, air quality impacts less than the following amounts:

a. Carbon Monoxide

- 575 jig/ms, eight-houraverage; b. Nitrogen dioxide

- 14 Jig/rn3, annual average;
c. PM25 —4jig/rn~, 24-houraverage; d. PM10

- 10jigIrn~’, 24-hour average;
e. Sulfurdioxide

- 13 jig/rn3, 24-houraverage; f. Lead

- 0.1 jig/rn3, 24-houraverage; g. Fluorides

- 0.25 jig/rn3, 24-houraverage; h. Total reduced sulfur

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

- 0.04jig/rn3, one-houraverage; 

## j. Reduced sulfur compounds

- 10 jig/rn3, one-hour average; k. Ozone

- increased emissions of less than 100 tons per year ofvolatile 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 anew majorsource or majormodification to a
source shall contain: I. An analysis ofthe impairmentto visibility, soils, and veg etation that would occur as a result ofthe 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 orrecreational value. 2. An analysis of the air quality impact, projected for the

area as a result ofgeneral 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 withoutchange as Section Rl8-2-407 (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 byfinal rule making at 18 A.A.R. 1542, effectiveAugust 7,2012

R~8-2-408. Innovative Control TechnoJ8~” A. Notwithstanding the provisions o 18-2-406(A)(1) through the owner or operator ofa 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 bleto the new so r modification. B. The Director II appro e installation ofasystem ofinno vative con I technology ifth llowing conditions are met: I. Th owner or operator ofthe p osed source or modifi tion satisfactorily demonstrates the proposed control system would not cause or contribute to a
unrea onable riskto public health, welfare, orsafety in i operat on orfunction; 2. The a eroroperatoragreesto achieve a level ofcon n
uous e issions reduction equivalentto that which w uld have be n required under R18-2-406(A)(2) by a date specified ~n the permit or permit revision underthi Arti cle forth source. Such date shall not be later t four years fro the time of start-up or seven years om the issuance of permit orpermit revision under sArticle; 3. The source r modification would meet r uirements equivalent to those in R18-2-406(A) based n the emis sions ratethat he stationarysource employi gthe system of innovative ontrol technology would e required to meetonthedat specified in the permitor ermit revision underthis Articl 4. Before the dates ecifled in the permit r permit revision underthisArticle, e source or modif ation would not:

a. Cause or contr uteto any viola on ofan applicable state ambient ai qualitystand ; or b. Impact any are where an a licable increment is known to beviol 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 otheraffected states. 7. The limits on pollutants co med in R18-2-218 forClass I areas will be met for all eriods during the life ofthe

source ormodification. C. The Directorshall withdraw y a proval to employ a system ofinnovativecontrol techno gy m de underthis Section if: 1. The proposed syste fails the specified date to achievethe 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, orsafety or 3. The Directorde des atanytimethat e proposed system is unlikely to hieve the required Ic I of control or to protectthe Pu ic health, welfare, ors 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 iswithd wn in accor dance with sub ection (C) above, the Director y allow the

owner or oper orofthe 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 ofcontrol.

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 changeas Section R18-2- 408

## ( upp. 87-3). Section Rl8-2-408 renumberedto Rl8- 2-608, new Section RI 8-2-408 adopted effective Novem

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

RI8-2-409. AirQuality Models A. Where the Director requires a person requesting a permit or permitrevision underthisArticle to perform airquality impact modeling to obtain such permit or permit revision under this Article, the modeling shall be performed in a manner consis tentwith the Guideline specified in RI 8-2-406(A)(6)(a). B. Wherethe person requesting apermit 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 DepartmentofEnvironmental Quality—Air Pollution Control

Supp. 12-2 Page 68 June 30, 2012Ariz~onaAdministrative Code Title 18, Ch. 2 Department ofEnvironmental Quality—Air Pollution Control

modification orsubstitution can occur, the Directorshall make

awritten findingthat:

- 1. No model in the Guideline is appropriate for a particular permit or permit revision underthis Article underconsid 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 bytheAdministrator. C. The substitution or modification ofan air quality model under this Section shall be included in the public notice underRI8-2- 330(C).

Historical Note Adopted effective May 14, 1979 (Supp. 79-1). Former Section R9-3-409 renumbered withoutchange 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 

# /

\~. Forany new majorsource ormajor modification subje~ to the 

# \ provisions ofthis Chapter, no permit or permit revis~6n under 

# \ this Article shall be issued to a person proposing t/construct \çr modi~’ the source unlessthe applicant has provjded: t\ An analysis of the anticipated impacts o~.4he proposed 

# \source on visibility in any Class I area3ANhich may be ‘~~ffected bythe emissionsfrom 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~rectordetermines is necessary’and appropriate. B. A determin\tion of an adverse impacfon visibility shall be made based ài~ consideration ofall of~e following factors: 1. Thetimes’çfvisitor use ofthe 2. The freque~y and timing of natural conditions in the

areathat redlfr(e visibility; 

# /

3. All ofthe follo’%’ing visibility impairment characteristics:

a. Geog b. Intensity,

c. Duration, d. Frequency,

e. Time ofday; 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 thefo1lowji~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 thisArtiçlle. 

# \

2. Within 10 days ofreceiptofan application fôt~a permitor 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 ofthe application to the~Fed eral ~Land Manager and the federal official charged with direct responsibility for management ofany lands within any such area. The notice shall:

a. Include a copy ofall information relevantto the per mit orpermit revision underthis Article, b. nclude an analysis ofthe anticipated impacts ofthe roposed source on visibility in any areawhich 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 mentperiod rovided in subsection (C)(2).

a. Where e Director finds that the analy provided bythe Fe eral Land Manager does no demonstrate to the sati action of the Director at an adverse impacton vi bilitywill 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~’ wherethe 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 rthatan adverse impact on visibility will result i e area, the Directorshall not issue a permit or pe it revision under this Article forthe proposed m or ew source or major modifi cation. 4. When the proposed p it de ~sion is made, pursuant to Ri8-2-304(J), and a ailable for ublic review, the Direc tor shall provide individuals entified in subsection (C)(2) with a co ofthe propose permit decision and shall make avai ble to them any m erials used in mak ing thatdeter atlon.

Historical Note Adopted effec a May 14, 1979 (Supp. 79-I). ormer Section R9-3-4 0 renumbered withoutchange 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 18A.A.R. 1542, effective Augu 2012 (Supp. 12-2).

R18-2-412. PALs A. Applicability. 1. The Directormay approvethe use ofaPAL forany exist ing major source if the PAL meets the requirements of this Section. 2. Any physical change in orchange in the method ofopera tion of a major stationary source that maintains its total source-wide emissions below the PAL level, meets the requirements ofthis Section, and complies with the PAL permit:

a. Is not a majormodification forthe PAL pollutant, b. Does not haveto 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 priortothe effective date ofthe PAL. B. Permit application requirements. As part ofa permit applica tion requesting a PAL, the owner or operatorofa majorsource shall submit the following information to the Director for approval:

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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 ofthe baseline actual emissions (with sup porting documentation). 3. The calculation procedures that the major source owner
oroperatorproposesto useto convertthe 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 requirementsforestablishing 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 majorsource 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 atthe majorsource.
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 PALthrough the PAL effective period. 2. At no time (during or afterthe PAL effective period) are emissions reductions ofa PAL pollutantthat occurduring the PAL effective period creditable as decreases for pur poses ofoffsets under Rl8-2-404 unless the level ofthe PAL is reduced by the amount ofsuch emissions reduc tions and such reductions would be creditable in the absence ofthe PAL. D. Action on PAL permit application. A PAL permit application shall be processed in accordancewith one ofthe following: As an initial Class] permit pursuantto Ri8-2-304. 2. As a renewal ofa Class I permit pursuantto R18-2-322. 3. As a significant revision to a Class I permit pursuant to RI8-2-320. E. Settingthe 10-yearactuals PAL level. Exceptas provided in subsection (E)(2), the PAL level for

amajorsource shall be established asthe sum ofthe base line actual emissions ofthe 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 unitsthatwerepermanentlyshutdown afterthis 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 ofpriorto issuanceofthe PAL permit. For instance, ifthe

sourceowner or operatorwill be required to reduce emis sions from industrial boilers in halffrom baseline emis sions of60 ppm NOxto anew nile limit of30 ppm, then the pennit shall contain a future effective PAL level that is equal to the current PAL level reduced by halfofthe original baseline emissions ofsuch 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 PALpermit. The PAL permit mustcontain, ata minimum, thefollowing information: The PAL pollutant and the applicable source-wide emis sion limitation in tons peryear. 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 ofthe PAL effective period. It shall remain in effect until a revised PAL permit is issued bythe 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 issubjecttothe requirements ofsubsection (H). 6. The calculation procedures that the major source owner
or operator shall use to convert the monitoring system datato monthly emissions and annual emissions based on
a 12-month rollingtotal as required by subsection (L)(i). 7. A requirement that the major source owner or operator monitorall emissions units in accordance with the provi sions undersubsection (K). 8. A requirement to retain the records required under sub section (L) onsite. Such records may be retained in an electronicformat. 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 ofthe PAI. permit. PAL effective period. The Director shall specii~y a PAL effectiveperiod of 10 years. 2. Reopening ofthe PALpermit.

a. During the PAL effective period, the Director must reopenthe PAL permitto: i. Correct typographical/calculation errors made in setting the PAL or reflect a more accurate

Supp. 12-2 Page 70 June 30, 2012ArizonaAdministrative Code Title 18, Ch. 2 DepartmentofEnvironmental Quality

—Air Pollution Control

determination ofemissions usedto establish the PAL, ii. Reduce the PAL ifthe owner oroperator ofthe 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 undersubsection 

### (3). b. The Directorshall have discretion to reopen the PAL permitforthe 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 ifthe 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 valuethathas 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 thatdo not increase the PAL level, all other reopenings shall be carried out in accordance with the public participation requirementsofsubsec 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 accordingto 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 ofemissions 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 underthe PAL. Ifthe PAL had not yet been adjusted for an applicable requirement that became effective during the PAL effective period, as would be required undersubsection (I)(5), such distribution shall be made as ifthe PAL had been adjusted. b. The Director shall decide how the PAL allowable emissionswill be distributed and issue a revised per mit incorporating allowable limits for each emis sions unit, or each group of emissions units, as the Directordetermines 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 atthe majorsourcewill be subjecttothe applicability criteriasetforth atsubsection (C). 5. The major source owner or operator shall continue to comply with any applicable requirements that may have applied duringthe PAL effective period. Emission limita tions that were eliminated by the PAL in accordance with subsection (A)(2)(c) shall notbe reinstated. Renewal ofaPAL. The Directorshall followthe procedures specified in sub section (F) in approving any requestto renew a PAL fora major source, and shall provide both the proposed PAL level and awritten rationale forthe proposed PAL level to the public for review and comment During such public review, any person may propose a PAL level for the

sourcefor consideration bythe Director. 2. Application deadline. A major source owner or operator shall submit a timely application to the Director to requestrenewal ofaPAL. Atimelyapplication is one that is submitted at least six months prior to, but not earlier than 18 months from, the date ofpermit expiration. This deadline for application submittal is to ensure that the permitwill notexpire beforethe permit is renewed. Ifthe

owner or operator ofa major source submits a complete applicationto renewthe PALwithin thistimeperiod, then the PAL shall continue to be effective until the revised permitwith the renewed PAL is issued. 3. Application requirements. The application to renew a PAL pennitshall containthe 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 operatorwishes the Directorto consider in determiningthe appropri ate level forrenewing 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 adjustmentfall to complywith subsec tion (I)(4)(c).

a. Ifthe emissions level calculated in accordance with subsection (F) is equal to or greaterthan 80% ofthe 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 determinesto be more representative ofthe source’s baseline actual emissions, orthatthe 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. Ifthe potential to emit ofthe major source is less than the PAL, the Director shall adjust the PAL to a level no greater than the potential to emit ofthe source; and

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—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. Ifthe compliance date for an applicable requirement that appliestothe PALsource occurs during the PAL effective period, and if the Director has not already adjusted for such requirement, the PAL shall be adjusted atthetime of PAL permit renewal or renewal of the source’s Class I permit, whicheveroccurs first. J. Increasing aPAL during the PAL effective period. The Director may increase a PAL emission limitation only ifthe following requirements are met:

a. The owner oroperator ofthe majorsource 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 ofthis 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 ofthe baseline actual emissions ofthe significant and major emissions units assum ing application ofBACT or LAER equivalent con trols, plus the sum ofthe PAL allowable emissions ofthe new ormodified 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 forthat emissions unit shall be equal to the level ofBACT 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 resultingfrom 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 orcontinue to be subjecttothe PAL. d. The PAL permit shall require thatthe increased PAL level shall be effective on the day any emissions unit that is part ofthe PAL major modification becomes operational and begins to emitthe PAL pollutant. 2. The Directorshall calculate the new PAL level as the sum ofthe PAL allowable emissions foreach modified or new emissions unit, plus the sum ofthe baseline actual emis sions ofthe significant and major emissions units (assum ing application ofBACT 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 requirementsfor PALs. General requirements. a. Each PAL permit must contain enforceable require ments for the monitoring system that accurately determines plantwide emissions ofthe PAL pollut ant in terms ofmass per unit oftime. Any monitor ing system authorized for use in the PAL permit must be based on sound science and meet generally acceptable scientific procedures fordata quality and manipulation. Additionally, the information gener ated by such system must meet minimum legal requirements for admissibility in ajudicial proceed ingto enforcethe PAL permit. b. The PAL monitoring system must employ one or
more of the four general monitoring approaches meeting the minimum requirements setforth in sub sections (K)(2)(a) through (d) and must be approved bytheDirector.

c. Notwithstanding subsection (K)(l)(b), the owner or operator may also employ an alternative monitoring approach ifapproved bythe Directoras meeting the requirements ofsubsection (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 orsolvents, b. CEMS,

c. CPMS or PEMS, and d. Emission factors. 3. Mass balance calculations. An owner or operator using

mass balance calculationsto monitorPAL pollutant emis sions from activities using coating or solvents shall meet the following requirements:

a. Provide ademonstrated means ofvalidatingthe pub lished content ofthe 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 ofthe PAL pollutant that is contained in or created by any raw material orfuel used in or at the emissions unit, ifit 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 ofthe 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 contentwithin the range. 4. CEMS. An owner or operator using CEMS to monitor PAL pollutant emissions shall meetthefollowing 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 pollutantemissions shall meetthe following requirements:

Supp. 12-2 Page 72 June 30, 2012ArizonaAdministrative Code Title 18, Ch. 2 Department ofEnvironmental Quality—AirPollution 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 ofoperation 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, whilethe emissions unit is operating. 6. Emission factors. An owner or operator using emission factors to monitor PAL pollutant emissions shall meetthe following requirements:

a. All emission factors shall be adjusted, ifappropriate, 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 ofuse forthe emission factor, ifapplica ble; and

c. Iftechnically practicable, the owner or operatorofa 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 ofPAL per mit issuance, unless the Director determines that testing is notrequired. 7. A source owneror operator must record and report maxi

mum potential emissionswithoutconsidering enforceable emission limitations or operational restrictions for an emissions unit during any period oftime 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 ofan emissions unit cannot demonstrate a correlation between the moni tored parameter(s) and the PAL pollutant emissions rate at all operating points ofthe emissions unit, the Director shall, atthe time ofpermit 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 ofthe emissions unit dur ing operating conditionswhen there is no correlation between monitored parameter(s) andthe PAL pollut ant emissions is aviolation ofthe 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 ofthe PAL. L. Recordkeeping requirements. The PAL permit shall require an owner or operator to retain a copy ofall records necessary to determine com pliance with any requirement ofthis Section and with the PAL, including a determination of each emissions unit’s 12-month rolling total emissions, for five years from the date ofsuch record. 2. The PAL permit shall require an owner or operator to retain a copy ofthe following records forthe duration of the PAL effective period plusfiveyears:
a. A copy ofthe PAL permit application and any appli cations for revisionsto 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 RI8-2- 306(A)(5). The reports shall meetthe following requirements: Semi-annual report. The semi-annual report shall be submiffed to the Director within 30 days ofthe end ofeach 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 pursuantto 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 ofany deviations

or monitoring malfunctions (other than the time associated with zero and span calibration checks), and any corrective actiontaken. f. A notification ofa shutdown ofany 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 continuedto operate, andthe cal culation ofthe emissionsofthe pollutant orthe num berdetermined by method included in the permit, as provided by subsection (K)(7). g. A certification by the responsible official consistent with Ri8-2-304(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 permitnumber, b. The PAL permit requirement that experienced the deviation orthatwas 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 oroperatorshall submit to the Director the results of any re-validation test or method within three months aftercompletion ofsuch 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 Directormay ener ermits forafacility 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